Manitoba Regulation 38/2008 amended

1   The Turkey Quota Order, Manitoba Regulation 38/2008, is amended by this Order.

2   Section 1 is amended

(a) by adding the following definitions:

"Retirement and Basic Allotment (Breeder/Mature) Reallocation System" means the retirement and basic allotment (breeder/mature) reallocation system approved by the Board on October 9, 2015;

"Retirement and Basic Allotment Reallocation System" means the system for cancelling and reallocating quotas and allotments established in accordance with section 68;

"Temporary Suspension and Reallotment System" means the system for establishing temporary suspension and reallotment programs for high ratio authorized market reallotments set out in Schedule B of this Order;

(b) by repealing the definition "retirement and basic allotment (breeder/mature) reallocation system".

3   Clause 9(a) is amended by striking out "together with an equal share of the Shortfall" and substituting "together with a pro rata share of the Shortfall based on their allotment of the Aggregate Provincial Basic Allotment".

4   Subclause 30(d)⁠(ii) is amended by adding "or the Temporary Suspension and Reallotment System" after "Retirement and Basic Allotment Reallocation System".

5   Section 33 is replaced with the following:

6   Section 60 is replaced with the following:

7   Sections 68 and 69 are amended by striking out "the Schedule" and substituting "Schedule A".

8   The Schedule is amended

(a) by renumbering it as Schedule A;

(b) in section 3,

(i) in the definition "Designated Staff", by striking out "individuals" and substituting "persons",

(ii) in the definition "Retirement and Basic Allotment Reallocation Program", by striking out "and" at the end,

(iii) by repealing the definition "Retirement Fund", and

(iv) by adding the following definition:

"Retirement and Reallotment Fund" means a trust account established by the Board to which all administration fees paid by successful bidders are to be credited and from which all reallotment payments made to successful offerors are to be debited.

(c) in subsection 10(1),

(i) by replacing the section heading with "Retirement and Reallotment Fund", and

(ii) by striking out "Retirement Fund" and substituting "Retirement and Reallotment Fund"; and

(d) in subsection 10(2), by striking out "Retirement Fund" and substituting "Retirement and Reallotment Fund".

9   Schedule B to this regulation is added after Schedule  A.

SCHEDULE B

(Section 60.2)

TEMPORARY SUSPENSION AND REALLOTMENT SYSTEM FOR HIGH RATIO AUTHORIZED MARKET REALLOTMENTS

Interpretation

1(1)   The following definitions apply in this Schedule.

"Bid" means a request to be allotted a portion of an offeror's market allotment in accordance with this Schedule.

"bidder" means a registered producer who has submitted a Bid.

"Designated Staff" means those employees or other persons designated by the Board from time to time under subsection 2(2).

"high ratio authorized market reallotment" has the same meaning as in section 60 of this Order.

"Offer" means an application to have a portion of an offeror's quota units of a category temporarily suspended and realloted under the Temporary Suspension and Reallotment System.

"offeror" means a registered producer who has submitted an Offer to temporarily suspend and reallot a portion of their authorized market allotment in accordance with this Schedule.

"Program" means a program to temporarily suspend and reallot a portion of an offeror's market allocation operated from time to time in accordance with the processes and procedures set out in this Schedule.

"quota unit" means a market allotment equal to one kilogram of hen, broiler or tom turkey.

"Reallotment Day" means the day on which a Program is operated.

"Retirement and Reallotment Fund" means a trust account established by the Board to which all administration fees paid by successful bidders are to be credited and from which all reallotment payments made to successful offerors are to be debited.

1(2)   For greater certainty, nothing in this Schedule derogates from

(a) the Board's ownership of quota under section 31 of this Order;

(b) the Board's powers to suspend, reduce or cancel quota under this Order; or

(c) the requirement to receive the Board's prior written consent before making an assignment described under section 33 of this Order.

Temporary Suspension and Reallotment System administration

2(1)   The Designated Staff are responsible for operating the Temporary Suspension and Reallotment System, which includes

(a) receiving and processing Offers;

(b) setting the date of each Reallotment Day and providing notice of it;

(c) receiving and processing Bids; and

(d) operating each Program and reporting the results to the Board.

2(2)   The Board may designate employees and other persons as Designated Staff from time to time to operate and audit Programs held under the Temporary Suspension and Reallotment System.

2(3)   The Designated Staff must not disclose any information received as a result of operating a Program, including to members of the Board and Board staff who are not Designated Staff, except in accordance with subsections 6(3) and 12(1) of this Schedule.

2(4)   A registered producer must submit a Bid or Offer in a form approved by the Board and in the manner required by the Designated Staff.

2(5)   Despite subsection (4), the Designated Staff may accept a Bid or Offer that is not submitted in an approved form if they are satisfied that the Bid or Offer substantially complies with the requirements of the form approved by the Board.

Administration fees and reallotment payments

3(1)   In this Schedule and in all forms and materials used in relation to the Temporary Suspension and Reallotment System, all references to administration fees and temporary reallotment payments are deemed to be on the basis of a quota unit.

3(2)   With the approval of the Manitoba Council, the Board must, by resolution, establish the administration fee for Bids.

3(3)   A successful bidder must pay an administration fee on each quota unit reallocated to them.

3(4)   The Board must make a temporary reallotment payment to a successful offeror for each quota unit of the offeror that is temporarily suspended and realloted.

Dates for a Program

4   The Designated Staff may operate a Program on the regular business days specified by the Board in a written notice to the registered producers. Designated Staff may cancel a Program or postpone it for not more than seven days if they consider it advisable by providing written notice to the registered producers.

Requirements for a Program

5   The Designated Staff must not operate a Program if the proposed Offer does not meet the requirements for a high ratio authorized market reallotment.

Requirements of an Offer

6(1)   When submitting an Offer, the offeror must provide the following:

(a) the name, address and signature of the offeror;

(b) the producer registration number of the offeror;

(c) the number of quota units offered for temporary suspension and reallotment by the offeror;

(d) the category of the quota units offered;

(e) a written undertaking that the Offer will not be withdrawn by the offeror once a notice has been given to a registered producer of the Offer pursuant to subsection (3);

(f) any other particulars with respect to the marketings or anticipated marketings of the offeror that may be required in order to complete the form of Offer;

(g) an acknowledgement of the applicable administration fee;

(h) an acknowledgement that in the event that Bids received for a Program are less than the number of quota units offered for suspension and temporary reallotment, the offeror may be asked if the Offer should proceed at the lower number.

6(2)   The Designated Staff may

(a) require the offeror to provide proof of the consent of any secured creditor of the offeror to the submission of the Offer; and

(b) reject the Offer if they determine that the offeror will market turkey contrary to the provisions of this Order.

6(3)   On receiving the Offer in an approved or acceptable form, the Designated Staff must provide notice to each registered producer that an Offer has been received. In addition to any information relating to the Offer they consider relevant, the Designated Staff must include the following in the notice:

(a) the number of quota units offered for temporary suspension and reallotment;

(b) the administration fee;

(c) the Reallotment Day.

Requirements of a Bid

7(1)   A registered producer must submit a Bid for a Program in an approved or acceptable form and in the manner required by the Designated Staff not later than 4:00 p.m. on the date selected by the Designated Staff. The Bid must include

(a) the name, address and signature of the bidder;

(b) the producer registration number of the bidder;

(c) the number of quota units requested for reallotment;

(d) the category of the quota units requested;

(e) the applicable administration fee;

(f) an acknowledgement that the bidder is bound by the results of the Program, including where the Program results in the bidder receiving less than the number of quota units comprising their Bid;

(g) an acknowledgement that the Bid is not valid if the number of quota units requested when taken together with the number of quota units comprising the bidder's basic allotment exceeds the maximum allotment; and

(h) an acknowledgement that the Board is entitled to reduce the Bid in accordance with subsection (4) and that the bidder is bound by the reduction.

7(2)   The Bid is not valid unless the bidder submits a separate bank draft or credit union primary order (or other method of payment acceptable to the Designated Staff) payable to the Board representing the full amount of the applicable administration fee and the Bid is received by the Board not later than 4:00 p.m. on the date selected by the Designated Staff.

7(3)   The Bid is not valid if the bidder has outstanding levies or penalties relating to marketing or overmarketing of turkeys and the bidder has not made arrangements satisfactory to the Board to pay the levies or penalties.

7(4)   The Board must reduce the administration fee and the number of quota units requested for reallotment in the Bid if the requested number of quota units would cause the bidder to exceed the maximum allotment.

Rejecting and withdrawing Bids and Offers

8(1)   The Designated Staff must reject a Bid or Offer that is

(a) received after the relevant deadline for submissions; or

(b) incomplete, invalid or otherwise unacceptable to the Designated Staff.

8(2)   If the Designated Staff rejects the Bid or Offer under subsection (1), they must notify the bidder or offeror of the rejection as soon as practicable.

8(3)   The rejected Bid or Offer does not prohibit the bidder or offeror from submitting a subsequent Bid or Offer for the same Program.

8(4)   The bidder may amend or withdraw their Bid by submitting a request to the Board not later than 4:00 p.m. on the date selected by the Designated Staff. The request must

(a) be clear, unconditional and irrevocable;

(b) be submitted in a form and manner acceptable to the Board and include the bidder's name and producer registration number; and

(c) specify the Bid to be withdrawn or amended.

Initial entitlement

9   On a Reallotment Day the Designated Staff must determine each bidder's initial entitlement for an Offer. A bidder is initially entitled to

(a) an equal share of 50% of the Offer, divided equally among the bidders in the Program; and

(b) a proportional share of 50% of the Offer, based on their proportionate share of the Aggregate Provincial Basic Allotment.

Adjustment if Offer is greater than Bids

10(1)   If an Offer is greater than the sum of all the initial entitlements determined under section 9, the Designated Staff must apportion the difference by increasing the entitlement of each bidder who submitted a Bid that exceeded their initial entitlement. The Designated Staff must increase the entitlement on an equal basis between the bidders until the entire Offer is allocated or all Bids have been fully satisfied.

10(2)   If all Bids have been satisfied under subsection (1) but the Offer is not fully allocated, the offeror must

(a) accept the results of the Program by decreasing their Offer to match the sum of the Bids; or

(b) reject the results of the Program.

10(3)   For greater certainty, the Designated Staff must cancel a Program in which the sum of the Bids is less than 10,000 kilograms of turkey.

Combining Programs

11   With the approval of the offerors, the Designated Staff may combine Programs that have identical administrative fees. The offeror in the other Program must provide their approval in the time and manner required by the Designated Staff.

Approval of Program by Board

12(1)   After the operation of a Program, the Designated Staff must report to the Board particulars of the Offer, the temporary reallotment payment requested by the offeror, the number of Bids received and particulars of the successful Bids.

12(2)   If the Board is satisfied with the results of the Program, the Board must, by resolution,

(a) approve the results of the Program;

(b) temporarily reallot quota units to the successful bidders and increase their market allotments in accordance with the results of the Program; and

(c) temporarily suspend the quota units of the offerors and reduce their market allotment in accordance with the results of the Program.

12(3)   The temporary reallotment under subsection (2) must not exceed one marketing year and, for greater certainty, must not result in a bidder holding more than 600,000 quota units for that marketing year.

12(4)   If a successful bidder is due to receive more than 600,000 quota units for a marketing year through a Program, the Board must reallot the excess quota units equally among the other successful bidders in the Program.

12(5)   After a Board resolution under subsection (2) is passed approving the results of the Program, the Designated Staff must notify each participant in the Program of the following:

(a) if their Offer or Bid was successful and, if so, the effective date of the temporary suspension and reallotment;

(b) for any successful bidder, the category of the quota units temporarily reallotted to the bidder.

12(6)   The Designated Staff must return any surplus funds submitted by successful bidders as proposed administration fees.

Retirement and Reallotment Fund

13(1)   Administration fees paid to the Board by successful bidders must be allocated to the Retirement and Reallotment Fund.

13(2)   Reallotment payments made by the Board to successful offerors are to be paid from the Retirement and Reallotment Fund.

13(3)   A producer whose market allocation has been temporarily suspended is to be reimbursed when the market allocation has been realloted and the fee collected.

Information

14   The Board must forward the results of a Program under subsection 10(1) to each registered producer within 15 days after the Board's approval of the Program in a form approved by the Manitoba Council.