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It is effectively 36(1)b. The rejection letter was just a template that was not updated.

PRs do not lose status for things happened before they became PRs, only if they misrepresented their application. For citizenship it will only delay their eligibility. If they commit DUI on or after Dec 18 they get deported.

The only foreign nationals who benefit from being assessed under the old law are the ones who were deemed rehabilitated at any point in the past. Meaning that their DUI was the only thing in their record, it was more than 10 years ago and they attempted to enter Canada or apply for any visa at least once on any date prior Dec 18. Those class of individuals are grandfathered in a special memo by the immigration minister.
 
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If you look at this: http://www.immigrationlawconference...nal_inadmissibility__-_issues_of_interest.pdf

For PRs, the Tran holding applies, which is previous jurisprudence that the law is not applied retroactively to convictions committed from before the bill takes effect.

It also specifies that the Tran holding does not apply for the foreign nationals, who are assessed at the time of the application. I've read this in multiple sources.
Thanks for the correction. :)