Vol. 134, No. 37 — September 9, 2000

Regulations Amending the Income Tax Regulations (Talking Textbooks)

Statutory Authority

Income Tax Act

Sponsoring Department

Department of Finance

REGULATORY IMPACT ANALYSIS STATEMENT

Description

Section 5700 of the Income Tax Regulations provides a list of devices and equipment that are eligible for the medical expense tax credit under the Income Tax Act. These Regulations are amended to add "talking textbooks" prescribed by a medical practitioner for use by an individual with a perceptual disability who is enrolled at an educational institution in Canada.

Alternatives

The use of an expenditure program to deliver this measure was considered inappropriate and more costly. The provisions to implement this measure are best served by an amendment to section 5700 of the Income Tax Regulations, thereby making 17 percent of the cost of talking textbooks acquired for use by an individual with a perceptual disability deductible as a credit against income tax payable.

Benefits and Costs

The amendment will provide tax relief in respect of the purchase of talking textbooks acquired for use by eligible individuals. Revenue impact on the Government will be minimal.

Consultation

This measure was proposed in the February 16, 1999 budget further to the pre-budget consultations and in particular as a result of recommendations from the Learning Disabilities Association of Canada. No negative comments have been received on this particular measure.

Compliance and Enforcement

The Income Tax Act provides sufficient compliance measures for these regulations. These provisions allow the Minister of National Revenue to assess and reassess tax payable, to conduct audits and seize relevant records and documents.

Contact

Lucie Vermette, Tax Legislation Division, Department of Finance, L'Esplanade Laurier, 140 O'Connor Street, Ottawa, Ontario K1A 0G5, (613) 992-5636.

PROPOSED REGULATORY TEXT

Notice is hereby given that the Governor in Council, pursuant to section 221(see footnote a) of the Income Tax Act, proposes to make the annexed Regulations Amending the Income Tax Regulations (Talking Textbooks).

Interested persons may make representations with respect to the proposed Regulations within 30 days after the date of publication of this notice. All such representations must cite the Canada Gazette, Part I, and the date of publication of this notice, and be addressed to Lucie Vermette, Tax Policy Officer, Tax Legislation Division, Tax Policy Branch, Department of Finance, L'Esplanade Laurier Building, 17^th Floor, East Tower, 140 O'Connor Street, Ottawa, Canada, K1A 0G5.

Ottawa, August 23, 2000

MARC O'SULLIVAN
Assistant Clerk of the Privy Council

REGULATIONS AMENDING THE INCOME TAX REGULATIONS (TALKING TEXTBOOKS)

AMENDMENT

1. Section 5700 of the Income Tax Regulations(see footnote 1) is amended by striking out the word "and" at the end of paragraph (u), by adding the word "and" at the end of paragraph (v) and by adding the following after paragraph (v):

(w) talking textbook prescribed by a medical practitioner for use by an individual with a perceptual disability, in connection with the individual's enrolment at an educational institution in Canada.

APPLICATION

2. Section 1 applies to the 1999 and subsequent taxation years.

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Regulations Amending the Navigating Appliances and Equipment Regulations

Statutory Authority

Canada Shipping Act and Arctic Waters Pollution Prevention Act

Sponsoring Department

Department of Transport

REGULATORY IMPACT ANALYSIS STATEMENT

Description

Canadian ships, and foreign vessels operating in Canadian waters, are required to fit navigating equipment and appliances in accordance with the Navigating Appliances and Equipment Regulations (the Regulations). Technical standards for these navigating appliances are found in a complimenting publication: Standards for Navigating Appliances and Equipment (TP 3668). Marine Safety is repealing the publication TP 3668, and amending the Regulations to adopt international equipment standards set by the International Maritime Organization (IMO).

The Regulations require ships of 1 600 tons or more making a foreign voyage, a home-trade voyage, Class I, a home-trade voyage, Class II, or an inland voyage, Class I, to be fitted with electronic position-fixing equipment. Previously the approved equipment was listed in the old Schedule II of the Regulations. This schedule is repealed. Vessel owners will now determine the electronic position-fixing equipment required on board based on the area of operation, then select the electronic position-fixing equipment most suited to their vessels from equipment approved by IMO in the new Schedule II.

Amendments have been made to the Regulations in other areas. Compliance with the international requirement for Safety Convention vessels to have radar installations operating in the 9 GHz frequency band. The requirement to fit radio direction finding (RDF) equipment for navigational purposes has been repealed. Provisions respecting manoeuvring system indicators and appliances that are covered under the Marine Machinery Regulations have been repealed. Finally, amendments have been made requiring every new ship of 1 600 tons or more, every Safety Convention ship, and, every new ship that is a chemical carrier or gas carrier to carry manoeuvring information in accordance with IMO Resolution A601 (15).

Alternatives

There are no alternatives to making these amendments to the Regulations.

Some of the amendments are made to address concerns raised by the Standing Joint Committee for the Scrutiny of Regulations.

The requirement to fit electronic position-fixing equipment has not changed; however, the old Schedule II of the Regulations contained reference to a number of electronic position-fixing systems that were either obsolete or not used in North America. Mariners are now able to choose the equipment they install from those in the IMO Recommendations listed in the new Schedule II of the Regulations.

Revoking the requirement to carry RDF equipment, and requiring the fitting of 9 GHz radar on Safety Convention ships will give support to Canada's commitment to the SOLAS Convention.

The remaining amendments are intended to simplify the Regulations. Definitions are clarified. Indicators and alarms requirements are not needed as they are contained in the Marine Machinery Regulations.

Benefits and Costs

The use of performance standards adopted by IMO will allow the marine industry to refer to these, rather than the two separate standards, TP3668 and the IMO resolutions. There should be no cost to the public.

The changes to equipment carriage requirements give recognition in Canada to international standards currently in place. Canadian registered Safety Convention ships already meet these requirements.

The fitting of a 9 GHz radar will permit ships to locate search and rescue transponders (SARTs) required by the Global Maritime Distress and Safety System (GMDSS).

The Regulations will include electronic position-fixing systems approved by IMO. There will be no additional cost to the marine industry, as the changes to the Regulations are to keep pace with current technology.

Consultation

The amendments were originally discussed at the Canadian Marine Advisory Council (CMAC) in May 1987, and more recently at the May 2000 CMAC. There has been no dissent expressed.

Amendments regarding position-fixing systems are in pace with current technology, and do not require extensive discussion as the marine community is aware of, and has been using the position-fixing systems listed for a number of years.

Compliance and Enforcement

These Regulations come into force on the date they are registered.

The majority of amendments to these Regulations will not impact the established compliance mechanism. The amendments that specifically relate to equipment carriage will not require additional monitoring to ensure compliance. Marine Safety inspectors routinely enforce these Regulations during periodic inspections.

Ships with defective navigating equipment may be detained pursuant to section 392 of the Canada Shipping Act. Penalties for non-compliance are contained in sections 419 and 667 of the Canada Shipping Act, and in section 19 of the Arctic Waters Pollution Prevention Act.

Contact

John Murray, AMSRA, Senior Marine Safety Inspector, Navigation, Radio and Lifesaving Equipment, Marine Safety, Department of Transport, Place de Ville, Tower C, 11th Floor, 330 Sparks Street, Ottawa, Ontario K1A 0N8, (613) 998-0604 (Telephone), (613) 954-4916 (Facsimile).

PROPOSED REGULATORY TEXT

Notice is hereby given that the Governor in Council, pursuant to sections 2.1(see footnote b) and 314(see footnote c), paragraph 338(1)(d)(see footnote d), subsections 339(1) and 387(2) and paragraph 657(1)(b) of the Canada Shipping Act and subparagraph 12(1)(a)(ii) of the Arctic Waters Pollution Prevention Act, proposes to make the annexed Regulations Amending the Navigating Appliances and Equipment Regulations.

Interested persons may make representations with respect to the proposed Regulations to the Minister of Transport within 30 days after the date of publication of this notice. All such representations must cite the Canada Gazette, Part I, and the date of publication of this notice, and be addressed to Manager, Navigation, Radio and LSE, Marine Safety Directorate, Department of Transport, Place de Ville, Tower C, 11th Floor, 330 Sparks Street, Ottawa, Ontario KIA 0N8. (Tel.: (613) 991-3134; fax: (613) 954-4916)

Each representation should stipulate those parts of it that should not be disclosed pursuant to the Access to Information Act and, in particular, pursuant to sections 19 and 20 of that Act, the reason why those parts should not be disclosed and the period during which they should remain undisclosed. The representation should also stipulate those parts of it for which there is no objection to disclosure pursuant to the Access to Information Act.

Ottawa, August 23, 2000

MARC O'SULLIVAN
Assistant Clerk of the Privy Council

REGULATIONS AMENDING THE NAVIGATING APPLIANCES AND EQUIPMENT REGULATIONS

AMENDMENTS

1. (1) The heading before section 2 of the French version of the Navigating Appliances and Equipment Regulations(see footnote 2) is replaced by the following:

Définitions et interprétation

(2) The definition "towing ship" in subsection 2(1) of the Regulations is repealed.

(3) The definitions "gas carrier", "inspector", "new ship", "properly sited" and "tanker" in subsection 2(1) of the Regulations are replaced by the following:

"gas carrier" means a ship that carries, in a tank or pressure vessel that is a permanent part of the ship, liquefied gas or any other substance that is loaded or discharged by means of a permanent pumping system and that

(a) has a vapour pressure exceeding 275 kPa absolute at a temperature of 37.8°C, or

(b) is specified in Chapter XIX of the Code for the Construction and Equipment of Ships Carrying Liquefied Gases in Bulk, 1975 or Chapter XIX of the Code for Existing Ships Carrying Liquefied Gases in Bulk, 1975, published by the IMO; (transporteur de gaz)

"inspector" means a steamship inspector appointed under section 301 of the Act; (inspecteur)

"new ship" means a ship that

(a) was constructed on or after September 1, 1984, or

(b) is registered or listed as a Canadian ship on or after September 1, 1984; (navire neuf)

"properly sited" means located in accordance with these Regulations; (bien situé)

"tanker" means a ship in which the greater part of the cargo space is constructed or adapted for the carriage of liquid cargoes and which is carrying as cargo a pollutant as defined in Part XV of the Act or waste as defined in section 2 of the Arctic Waters Pollution Prevention Act; (navire-citerne)

(4) Subsection 2(1) of the Regulations is amended by adding the following in alphabetical order:

"IMO" means the International Maritime Organization; (OMI)

"tow-boat" means a ship engaged in towing another ship or a floating object astern or alongside or in pushing another ship or a floating object ahead. (bâtiment remorqueur)

(5) Section 2 of the Regulations is amended by adding the following after subsection (2):

(3) Unless otherwise indicated in these Regulations, any reference to a standard or document incorporated by reference is a reference to that standard or document as amended from time to time.

(4) For the purpose of interpreting a document incorporated by reference into these Regulations, "should" shall be read to mean "shall" and recommendations shall be mandatory.

(5) A reference in these Regulations to an incorporated document shall be interpreted as excluding the following phrases that appear in that document:

(a) "acceptable to the Administration";

(b) "to the satisfaction of the Administration";

(c) "in the opinion of the Administration";

(d) "acceptable to the approval authority"; and

(e) "approved by the approval authority".

2. Section 3(see footnote 3) of the Regulations is replaced by the following:

3. These Regulations apply in respect of a ship that is

(a) a Canadian ship navigating in any waters; or

(b) a non-Canadian ship

Tow-boats

3.1 A tow-boat that is not a Safety Convention ship and that is engaged in a towing operation outside the waters in which it normally operates is not required to meet any additional navigating appliances and equipment requirements for the area outside the waters in which it normally operates if

(a) one of the ships engaged in the towing operation with the tow-boat meets the navigating and equipment requirements for the voyage; or

(b) the towing operation is being undertaken in an emergency.

Prohibition

3.2 No ship of any class shall navigate in any waters referred to in section 3 unless the ship complies with these Regulations.

3. Section 5 of the Regulations is replaced by the following:

5. (1) Subject to subsection (3), each navigating appliance and each item of equipment that is installed on or carried in a ship in accordance with these Regulations, other than an automatic pilot that is installed on a ship of 1 000 tons or less, shall meet the applicable standards set out in Schedule II.

(2) Subject to subsection (3), each navigating appliance and each item of equipment that is installed on or carried in a Canadian ship in accordance with these Regulations, other than an automatic pilot that is installed on a ship of 1 000 tons or less, shall meet the applicable electrical installation standards in TP 127 of the Department of Transport, entitled Ship Electrical Standards.

(3) Subsections (1) and (2) do not apply to a navigating appliance or item of equipment that was installed on a ship in accordance with the Navigating Appliances Regulations before September 1, 1984 and that continues to meet the standards prescribed by those Regulations on the date the appliance or item was installed on the ship.

(4) If a navigating appliance or item of equipment that was installed on a ship before September 1, 1984 is replaced, the replacement shall meet the applicable standards referred to in subsections (1) and (2).

Proof of Compliance

5.1 (1) Proof of compliance with the standards prescribed by section 5 shall be in one of the following forms issued or authorized by a country to which the Safety Convention applies or by a classification society, independent testing centre or manufacturer that is recognized by a country to which the Safety Convention applies:

(a) a label, securely affixed to the appliance or item of equipment in a readily visible location; or

(b) a document, kept in a readily accessible location on the ship.

(2) A proof of compliance written in a language other than English or French shall be accompanied by an English or French translation.

4. (1) The portion of subsection 6(1)(see footnote 4) of the Regulations before paragraph (a) is replaced by the following:

6. (1) Subject to subsections (2) and (3), one of the following magnetic compasses shall be installed on every ship making a foreign voyage, a home-trade voyage, Class I, a home-trade voyage, Class II, or an inland voyage, Class I:

(2) Subsection 6(2) of the Regulations is replaced by the following:

(2) Subsection (1) does not apply to the following ships if a steering magnetic compass is installed on the ship together with a device for taking azimuths and terrestrial bearings as nearly as practicable over an arc of the horizon of 360°:

(a) a fishing vessel built before January 1, 1975 that is less than 45 m in length and less than 500 tons; and

(b) a ship of 150 tons or less.

(3) Paragraph 6(3)(b)(see footnote 5) of the English version of the Regulations is replaced by the following:

(b) a device for taking azimuths and terrestrial bearings as nearly as practicable over an arc of the horizon of 360°.

5. Sections 7 and 8 of the Regulations are replaced by the following:

7. Every ship on which a standard magnetic compass is installed in accordance with paragraph 6(1)(a) shall carry a spare magnetic compass that is fully interchangeable with the standard magnetic compass.

6. Sections 10 to 12 of the Regulations are replaced by the following:

10. A means of communication between the standard magnetic compass position and the position from which the ship is normally navigated shall be installed on every ship on which a standard magnetic compass is installed under subsection 6(1).

11. Every standard magnetic compass required to be installed on a ship under subsection 6(1) shall be provided with a device for taking azimuths and terrestrial bearings as nearly as practicable over an arc of the horizon of 360°.

12. (1) Subject to subsection (2), a steering magnetic compass shall be installed on every ship making a voyage other than a voyage described in subsection 6(1).

(2) Subsection (1) does not apply to a ship that is

(a) less than five tons; and

(b) navigated within sight of navigation marks.

7. The heading before section 15 of the Regulations is replaced by the following:

Gyro-compasses and Gyro Repeaters

8. Section 15 of the Regulations is amended by adding the following after subsection (3):

(4) Every gyro-compass and every gyro repeater located at the main steering position of a ship shall provide the person at the helm with clear, readable heading information.

(5) A gyro repeater referred to in subsection (4) may be a digital-type repeater if it is graduated in accordance with the standards for gyro-compasses set out in the standards listed in Schedule II.

9. Section 17 of the Regulations is amended by adding the following after subsection (2):

(3) A navigational radar that is capable of operating in the 9 GHz frequency band shall be installed on every Safety Convention ship and every ship referred to in subsection (1) on which a navigational radar is installed after the date of the coming into force of this subsection.

10. Section 18 of the Regulations is replaced by the following:

18. (1) When two navigational radars are installed on a ship, each radar shall be capable of being operated independently of the other.

(2) When two navigational radars are installed on a Safety Convention ship or are installed, after the date of the coming into force of this section, on a ship referred to in subsection 17(2), at least one of the radars shall be capable of operating in the 9 GHz frequency band.

11. Subsection 19(3) of the Regulations is repealed.

12. Sections 20 to 22(see footnote 6) of the Regulations are replaced by the following:

20. (1) Subject to subsection (3), an automatic radar plotting aid shall be installed on every ship that is making a foreign voyage, a home-trade voyage, Class I, or a home-trade voyage, Class II, if the ship is

(a) a ship of 10 000 tons or more that was constructed on or after September 1, 1984;

(b) a tanker of 10 000 tons or more that was constructed before September 1, 1984; or

(c) a ship, other than a tanker, of 15 000 tons or more that was constructed before September 1, 1984.

(2) An automatic radar plotting aid shall be installed on every ship of 10 000 tons or more that is carrying oil or liquid hazardous materials in bulk and is making a voyage in inland waters.

(3) Subsection (1) does not apply to a bulk carrier making a home-trade voyage, Class II, in Canada, if the bulk carrier

(a) is limited, by its inspection certificate, to making inland voyages and home-trade voyages, Class II, in Canada; and

(b) during the period for which the inspection certificate is in force, spends more time on inland voyages than on home-trade voyages, Class II, in Canada.

Electronic Position-fixing Equipment

21. Electronic position-fixing equipment that is suitable for use at all times throughout an intended voyage to establish and update the position of a ship by automatic means shall be installed on every ship of 1 600 tons or more and every tow-boat that is making a foreign voyage, a home-trade voyage, Class I, a home-trade voyage, Class II, or an inland voyage, Class I.

13. The heading before section 28 and sections 28 and 29 of the Regulations are replaced by the following:

Rate-of-turn Indicator

28. Every new ship of 100 000 tons or more that was constructed on or after September 1, 1984 and makes a foreign voyage, a home-trade voyage, Class I, or a home-trade voyage, Class II, shall be fitted with a rate-of-turn indicator.

Instructions and Diagrams

29. A ship on which a remote steering control mechanism or a steering gear power unit is installed shall have permanently displayed on the navigating bridge and in the steering gear compartment of the ship, simple, brief operating instructions and a block diagram showing the change-over procedures for the mechanism or unit.

14. Subsection 31(4) of the Regulations is replaced by the following:

(4) The receiving and transmitting stations required at the positions described in paragraphs (1)(a), (b) and (e) shall be capable of being operated independently of the ship's main electrical energy supply for at least 12 hours.

15. Sections 35 and 36 of the Regulations are replaced by the following:

35. Every ship that is required by the Charts and Nautical Publications Regulations, 1995 to carry charts and nautical publications shall carry

(a) the navigating accessories necessary to permit the proper use of the charts to accurately determine the position of the ship;

(b) the navigating accessories necessary to determine the accuracy of compass readings; and

(c) at least one pair of binoculars.

Manoeuvring Information

36. (1) Subject to subsection (2), all existing ships of 1 600 tons or more shall carry manoeuvring information in accordance with IMO Resolution A.209(7), Recommendation on Information to Be Included in the Manoeuvring Booklet.

(2) The following ships shall carry manoeuvring information in accordance with IMO Resolution A.601(15), Provision and Display of Manoeuvring Information on Board Ships:

(a) every new ship of 1 600 tons or more;

(b) every Safety Convention ship; and

(c) every new ship that is a chemical carrier or gas carrier.

(3) If it is not practicable to complete the manoeuvring information referred to in subsection (2) for a ship before the ship enters into service, the information shall be

(a) completed in a preliminary form before the ship enters into service;

(b) completed in a final form as soon as practical after the ship has entered into service; and

(c) verified in its final form within 18 months after the ship has entered into service.

16. Schedule II to the Regulations is replaced by the following:

SCHEDULE II
(Subsections 5(1) and 15(5))

STANDARDS FOR NAVIGATING APPLIANCES AND EQUIPMENT

General Requirements for All Navigating Appliances and Equipment

1. IMO Resolution A.281(VIII), Recommendation on General Requirements for Electronic Navigational Aids

2. IMO Resolution A.694(17), General Requirements for Shipborne Radio Equipment Forming Part of the Global Maritime Distress and Safety System (GMDSS) and for Electronic Navigational Aids

3. IMO Resolution A.813(19), General Requirements for Electromagnetic Compatibility (EMC) for All Electrical and Electronic Ship's Equipment

Magnetic Compasses

4. IMO Resolution A.382(X), Magnetic Compasses: Carriage and Performance Standards

Gyro-compasses

5. IMO Resolution A.424(XI), Performance Standards for Gyro-compasses

Automatic Pilots

6. IMO Circular MSC 67/22/Add.1, Annex 3 of Annex 17, Amendment to Resolution A.342(IX) on Performance Standards for Automatic Pilots

7. IMO Resolution A.822(19), Performance Standards for Automatic Steering Aids (Automatic Pilots) for High-Speed Craft

Navigational Radars

8. IMO Resolution A.278(VIII), Supplement to the Recommendation on Performance Standards for Navigational Radar Equipment (Resolution A.222 (VII))

9. IMO Resolution A.477(XII), Performance Standards for Radar Equipment

10. IMO Resolution A.820(19), Performance Standards for Navigational Equipment for High-Speed Craft

11. IMO Circular MSC 67/22/Add.1, Annex 4 of Annex 17, Recommendation on Performance Standards for Radar Equipment

Automatic Radar Plotting Aids

12. IMO Resolution A.823(19), Performance Standards for Automatic Radar Plotting Aids (ARPAs)

Radionavigation Receivers

13. IMO Resolution A.818(19), Performance Standards for Shipborne Loran-C and Chayka Receivers

14. IMO Resolution A.819(19), Performance Standards for Shipborne Global Positioning System (GPS) Receiver Equipment

Echo-sounders

15. IMO Resolution A.224(VII), Performance Standards for Echo-sounding Equipment

Devices to Indicate Speed and Distance

16. IMO Resolution A.824(19), Performance Standards for Devices to Indicate Speed and Distance

Rate-of-turn Indicators

17. IMO Resolution A.526(13), Performance Standards for Rate-of-turn Indicators

Manoeuvring Booklets

18. IMO Resolution A.601(15), Provision and Display of Manoeuvring Information on Board Ships

17. The Regulations are amended by replacing the expression "towing ship" with the word "tow-boat" wherever it occurs in the following provisions:

(a) paragraph 15(1)(c);

(b) paragraph 17(1)(d);

(c) paragraph 17(2)(d); and

(d) paragraph 23(1)(g).

COMING INTO FORCE

18. These Regulations come into force on the day on which they are registered.

[37-1-o]

Footnote a

S.C. 1998, c. 19, s. 222

Footnote 1

C.R.C., c. 945

Footnote b

R.S., c. 6 (3rd Supp.), s. 2

Footnote c

R.S., c. 6 (3rd Supp.), s. 35

Footnote d

R.S., c. 6 (3rd Supp.), s. 47(3)

Footnote 2

SOR/84-689

Footnote 3

SOR/87-175

Footnote 4

SOR/87-353

Footnote 5

SOR/87-353

Footnote 6

SOR/87-353

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