Overview of proposed amendments in the second Annual Regulatory Modernization Bill

Bill S‑6, An Act respecting regulatory modernization

Bill S 6, An Act respecting regulatory modernization (second Annual Regulatory Modernization Bill) helps keep federal regulations relevant and up to date by making common sense amendments to 29 pieces of legislation.

The amendments support the Government of Canada’s efforts to:

• reduce administrative burden for businesses
• make digital interactions with government easier
• simplify regulatory processes
• make exemptions from certain regulatory requirements to test new products
• make cross-border trade easier through more consistent and coherent rules across governments

Descriptions of the amendments are included below, each categorized under one of three key themes for the bill: 1) Ease of doing business; 2) Regulatory flexibility and agility; and 3) Integrity of the regulatory system.

Theme I: Ease of doing business

These amendments aim to reduce friction and administrative burden for businesses when interacting with the regulatory system. This includes amendments that would establish electronic equivalencies to all physically based requirements (e.g., use of paper), enable new and innovative products to be brought to market faster, and harmonize regulatory requirements with other jurisdictions to facilitate trade.

1. Remove the requirement that the notice of bankruptcy be published in a local newspaper and allow the Superintendent of Bankruptcy to issue directives regarding how the notice would be published (Bankruptcy and Insolvency Act)

This amendment would provide more flexible publication options for licensed insolvency trustees, who are currently legally required to publish some bankruptcies in a local newspaper. This change would reduce administrative costs associated with publishing in print format, while increasing the effectiveness of their outreach efforts. This recognizes that creditors are rarely located in the area where the newspaper advertisements must appear.

2. Allow an application for mediation to be withdrawn and for the trustee to proceed with an automatic discharge of the bankrupt where an agreement had been reached between the trustee and the bankrupt before a scheduled mediation (Bankruptcy and Insolvency Act)

This amendment would enable a request for mediation to be withdrawn if the grounds for opposition to discharge no longer exist because an agreement has already been reached between a licensed insolvency trustee and a debtor. While it is legally required, requiring such a meeting when there has already been an agreement in advance serves no purpose. This change would result in shorter discharge wait times for debtors and faster completion of files for creditors due to the avoidance of unnecessary mediation.

4. Provide for a temporary permission mechanism (Weights and Measures Act)

This amendment would allow the Minister to permit temporary permissions for devices for use in trade set terms and conditions, and would allow the Minister to revoke the permission. This change would provide flexibility in how regulators assess new measuring technologies and would thereby promote innovation and remove barriers for businesses when introducing new technologies to market.

This is part of the Regulatory Review Roadmap on Clean Technology.

5. Repeal the regulation-making authority related to the requirement for contact information on vending machines that dispense liquids (Weights and Measures Act)

This amendment would create greater legal certainty. No regulations were ever developed as a result of this authority and issues with these types of machines have not been identified that would necessitate the development of regulations. This could result in reduced administration burden for business associated with the need to interpret outdated and unused regulatory requirements.

6. Repeal the requirement for dealers and traders to notify Measurement Canada when they import a measuring device for use in their business (Weights and Measures Act)

This amendment would create greater legal certainty. Although this notification requirement has not been enforced by Measurement Canada for many years, amending the legislation to remove this requirement could reduce administration burden associated with the need for businesses to interpret outdated and unused regulatory requirements.

7. Revise the coming-into-force dates for recent amendments to the act in the Budget Implementation Act, 2018, No. 2 (Budget Implementation Act, 2018, No. 2)

This amendment would facilitate the timely coming into force of amendments to the Trademarks Act that were introduced as part of Canada’s Intellectual Property Strategy, which aims to reduce barriers to innovation and assure an efficient and effective trademarks system. Untethering a series of amendments in this way would enable earlier implementation and more timely interaction with certain aspects of the improved trademark system for businesses who would be able to leverage improvements to the trademark system as soon as possible.

8. Change the term “annual return” to a term that would be less confusing for stakeholders (Canada Business Corporations Act; Canada Not-for-profit Corporations Act; and Canada Cooperatives Act)

This amendment would reduce levels of confusion for small businesses as there are regular mix ups between the term “annual return” (an obligation under these acts) and a “tax return” (administered by the Canada Revenue Agency). Without this change, there is a risk of accidental non-compliance, meaning active corporations could be dissolved for not filing when they otherwise believed they were complying because they mistakenly mixed up the two terms.

10. Update language pertaining to the handling of hazardous products in the workplace to ensure alignment with the Hazardous Products Act
(Canada-Newfoundland and Labrador Atlantic Accord Implementation Act and Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act)

This amendment would ensure that these two acts (the Accord Acts) align with the Globally Harmonized System of Classification and Labelling of Chemicals. This would help promote international alignment by ensuring that Canada is able to fully meet its international requirements related to the management of hazardous materials. This would be expected to reduce administrative burden on businesses, as they could avoid having to determine which of the two sets of regulatory requirements need to be followed, as well as improved worker safety associated with eliminating inconsistent terminology on hazardous products between two acts.

16. Simplifying the regulatory system for provincial agricultural marketing boards (Agricultural Products Marketing Act)

This amendment would provide general delegation authority to the Minister, empowering the Minister to add, amend or delete names of provincial marketing boards in the schedule to the act by ministerial order. In addition, provincial marketing boards would no longer be required to establish their levies ‘by order’, this would mean less administrative burden and enhanced clarity for provincial marketing boards when updating their levies, enabling them to focus their efforts on supporting agriculture and agri-food sector producers (i.e., farmers). It would enable the boards to focus on their core marketing activities including research and development of agricultural products and the market, rather than spending time navigating both the provincial and federal regulatory systems.

Multiple amendments: Provide authority for the Governor in Council to make regulations respecting the determination (recognition) of a foreign state’s system related to feed safety and seed safety as providing at least the same level of protection as Canada’s (Feeds Act (17), Seeds Act (25))

This amendment would enable the Governor in Council to make regulations that recognize systems and safety assessments conducted in other countries if they are deemed to be equivalent to Canada’s. This would help Canada meet certain commitments in trade agreements, including obligations under the Canada, U.S., Mexico Agreement. This would facilitate imports and exports with countries that have similar feed and seed safety systems, and it may reduce time to market for businesses when a feed or seed has already been assessed for safety in another competent jurisdiction.

Multiple amendments: Allow for the sending of notices by means other than registered mail, including electronically as appropriate (Feeds Act (19), Fertilizers Act (22), Seeds Act (26), Health of Animals Act (28), Plant Protection Act (33), Safe Food for Canadians Act (37))

This would allow the Canadian Food Inspection Agency (CFIA) to deliver certain notices (such as those associated with unlawful imports) to stakeholders using the most effective methods possible, rather than having to rely on registered mail. Enabling the digitalization of communications in this way would decrease costs and speed up service delivery, while reducing the administrative burden associated with paper-based transactions and communications with the government.

29. Enable the Minister to approve a program elaborated by a third party for the purposes of preventing the introduction of any vector, disease or toxic substance, or for controlling, eradicating or preventing the spread of vectors, diseases and toxic substances (Health of Animals Act)

This amendment would allow the Minister to recognize a program that is put in place at the private, industry and provincial, or municipal levels for the purposes of preventing the introduction and spread of an animal disease. This would allow for more cost-effective solutions to be developed than is currently allowed in the regulations. Businesses would be able to implement measures that are unique to the context of the situation while more effectively meeting biosecurity requirements when crossing the border.

31. Enable the Minister to make an interim order that may be used when immediate action is required to deal with a significant risk to protect animal and human health and the environment (Health of Animals Act)

This amendment would enable the Minister to take quick action to immediately address an emergency situation to prevent the spread of an animal disease. Enabling fast action in this way may help minimize negative economic impacts by preventing disease spread, keeping export markets open, and minimizing the need to slaughter diseased animals. This new provision would be applicable for one year, with the ability for the Governor in Council to extend the interim order for up to an additional two years. The extension would allow sufficient time to draft, consult on, and put in place a regulation or regulatory amendment.

35. Provide an authority that would allow CFIA to administer and enforce the acts and regulations for which it is responsible through electronic means (Canadian Food Inspection Agency Act)

This would allow the Canadian Food Inspection Agency (CFIA) to deliver services, and businesses to interact with CFIA, via electronic means rather than having to rely on paper-based transactions. This change would reduce administrative burden for businesses as it would allow for more efficient paperless interactions with government.

36. Amend the definition of food commodity to align with the definition of food in the Food and Drugs Act as amended in 2019 (Safe Food for Canadians Act)

This amendment would provide for consistency between the definition of “food” in the Food and Drugs Act (FDA) and ‘food commodity’ in the Safe Food for Canadians Act (SFCA), addressing a legal discrepancy that currently exists between the two Acts. The proposed amendment would ensure that if a product does not meet the definition of food in the FDA, it would also not meet the definition of ‘food commodity’ in the SFCA. Since some products can be considered both food and a drug, this amendment would provide consistency in how Health Canada and CFIA regulate these products. This is expected to provide clarity and reduce administrative burden for stakeholders.

45. Provide authority to make regulations as a result of Canada entering into a free trade agreement (Customs Act)

The proposed legislative change would simplify and clarify the process of making regulations resulting from a new free trade agreement by providing a single provision that could be directly and easily referenced if challenged before the courts or by the Standing Joint Committee for the Scrutiny of Regulations. Although the Customs Act already has enabling authorities to make regulations, none of them expressly cover free trade agreements or anything else that could be relied upon to address a unilateral issue related to a free trade agreement. Providing for a single legal provision in this way would provide clarity around authorities to make regulations, while contributing to enhanced compliance, promoting international alignment of regulatory requirements, reducing administrative burden for business and government, and enhancing legal clarity for traders.

46. Enable the Minister to make an interim order to align with an international standard or to implement an international obligation (Canada Transportation Act)

This amendment would promote international alignment by allowing for timely adoption of international standards, including evolving standards due to a new technology and industry innovation. If passed, businesses would experience less administrative burden caused by confusion and discrepancies between the department’s regulatory framework and established international standards.

This is part of a Regulatory Review Roadmap on International Standards.

Theme 2: Regulatory flexibility and agility

The proposals below aim to make the government more effective, efficient and nimble in terms of how it manages its regulatory system. This includes amendments that aim to streamline internal processes and establish appropriate regulatory-making authorities to help protect the health, safety and security of Canadians, and the environment.

3. Broaden the type of sampling that could be used as the basis for verification or reverification of meters, beyond only statistical sampling (Electricity and Gas Inspection Act)

This amendment would permit more types of sampling methods to be used in the verification processes for meters. This would promote international alignment and help maintain a fair and efficient marketplace by enabling Measurement Canada to leverage internationally agreed upon approaches and methodologies. This would mean more efficient use of resources and providing Measurement Canada with the ability to take more risk-based and flexible approaches for verifying meters using statistical sampling.

9. Provide flexibilities to update regulations for miscellaneous, technical or administrative changes (Canada Petroleum Resources Act and Canada Oil and Gas Operations Act)

This amendment would repeal provisions that make it mandatory that all regulatory changes be pre-published in the Canada Gazette, Part I. This would help reduce the administrative burden associated with making relatively small changes and straightforward regulatory amendments.

12. Modernize the legislative framework that regulates the Canada Land Surveyors profession (Canada Lands Surveyors Act)

These amendments would reduce the regulatory burden of the Minister of Natural Resources by transferring administrative provisions currently included in federal regulations into by-laws managed by the Association of Canada Lands Surveyors (ACLS), who have been delegated the authority by the Minister to regulate the practice of the Land Surveyor’s profession on Canada Lands. These amendments would also harmonize the French and English versions of the Act for consistency and clarity by, among other things, addressing recommendations of the Standing Joint Committee for the Scrutiny of Regulations. Further, these changes would reduce barriers for labor mobility opportunities for land surveyors and better align with the Canadian Free Trade Agreement. These amendments would enhance the protection of Canadians by streamlining and modernizing the Complaints and Discipline processes that govern Canada Lands Surveyors. This would reduce administrative burdens on the surveying profession and the federal government.

14. Synchronize the act with the appendices of protected wildlife species under the Convention on International Trade in Endangered Species (Wild Animal and Plant Protection and Regulation of International and Interprovincial Trade Act)

This amendment would ensure that any updates to the list of protected wildlife species under the Convention on International Trade in Endangered Species (CITES) that are binding on Canada automatically apply domestically. Currently, updates must be made through regulatory changes, which typically take 12-18 months, much longer than the 90-day grace period allowed under CITES. This amendment would promote international alignment, lead to less administrative burden associated with keeping the act current and enhance the clarity of Canada’s laws to protect endangered species for importers and exporters of wildlife.

15. Remove from schedules 2 and 3 those species that have been assessed or determined to be ineligible for assessment by the Committee on the Status of Endangered Wildlife in Canada (Species at Risk Act)

This amendment would clean up two transitional schedules in the act and ensure those schedules are kept up to date. There is currently no legal process to keep those two schedules of wildlife species up to date, so without this change, there would be continued confusion for any business or organization with activities that may affect wildlife species. This change would provide enhanced clarity as to what species are covered under the act.

38. Allow an interim order to remain in force for one year unless extended by the Governor in Council for up to an additional two years (Safe Food for Canadians Act)

The amendment would allow an interim order to be extended so that it can continue to exist over a longer timeframe that more accurately reflects the regulatory development process. This would allow Canada to meet its international requirements for consultation on regulations particularly in cases where trade may be impacted. This would increase the protection of human health and safety, and the environment, while providing sufficient time to draft, consult on and put in place regulatory amendments, when needed.

42, 43. Enable the Department to increase use of personal information across programs for which it is responsible. Also, allow disclosure of information related to the identity of an individual, the status of an individual in Canada, or the contents or status of any document issued by the Department, within the federal government and to provincial and territorial governments, to support the administration and enforcement of federal, provincial or territorial law, or for the purpose of exercising powers or performing duties or functions. The Department would be allowed to make regulations in relation to these proposed amendments, including regulations related to conditions for or limits on disclosure of personal information. (Department of Citizenship and Immigration Act).

Following a recommendation from the Office of the Privacy Commissioner during the Senate hearings, the requirement for concluding written information sharing arrangements/agreements with provinces/territories and federal departments and agencies, has been added to proposed amendments. The purpose of those written arrangements would be to define the elements of personal information, the purpose for sharing, and any limits on onward transmission.

The proposed legislative changes will complement and expand existing information sharing authorities in IRCC program legislation. These proposed authorities would support digital processing automation and the use of client information across the Department’s programs for better client service, identity management and improved program integrity.

They would also put in place a transparent legal framework needed to appropriately utilize the information sharing capacity of new digital tools IRCC is developing for application processing.  It would allow for identity and status information to be shared with other federal departments and provinces and territories, allowing clients to benefit from services without having to provide the same information multiple times, address risks associated with difficulties in proving or confirming identity, and make clients aware of what information is being shared for what purpose.

This is part of a Regulatory Review Roadmap on Digitalization.

44. Provide authority to make regulations respecting the disclosure of information to departments and agencies for the purposes of cooperation (Immigration and Refugee Protection Act)

This amendment would provide information-sharing authorities that would allow the disclosure of personal information (beyond identity and status information addressed in the other portion of this legislative proposal) to federal departments and agencies. Such disclosures of personal information to departments and agencies could help locate foreign-born clients when needed and prevent fraud within could help locate foreign-born clients when needed and prevent fraud within federal benefits systems.

Following a recommendation from the Office of the Privacy Commissioner during the Senate hearings, the requirement for concluding written information sharing arrangements/agreements with federal departments and agencies has been added to proposed amendments.

This is part of a Regulatory Review Roadmap on Digitalization.

Theme 3: Integrity of the regulatory system

The proposals below are technical in nature and aim to remove small scale, low impact irritants or respond to recommendations made by the Standing Joint Committee on the Scrutiny of Regulations. This includes amendments that enhance the integrity of the regulatory system as whole by ensuring the government has the clear legal authority to regulate in ways and in areas it already does.

11. Add an explicit regulation-making authority for prescribing record-keeping requirements in occupational health and safety regulations (Canada-Newfoundland and Labrador Atlantic Accord Implementation Act and Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act)

This amendment would provide a clear legal basis for the regulatory provisions related to records-keeping in the Can-NL and Can-NS OHS Regulations, currently being advanced.

13. Clarify that certain sections of the act are subject to regulations (Wild Animal and Plant Protection and Regulation of International and Interprovincial Trade Act)

With the exception of subsection 6(1) and section 7, other prohibitions in the act contain the introductory words “subject to the regulations” to clearly indicate that the application of the prohibitions in the act may be modified through regulations. Adding this language to all prohibitions would provide clarity to those referring to the act for guidance on the rules respecting international trade, interprovincial transportation, and possession of wildlife protected under the act. This technical change would resolve any potential legal uncertainty and concerns identified by the Standing Joint Committee on the Scrutiny of Regulations.

Multiple amendments: Provide clear regulatory-making authority and clear authority for the Minister to apply conditions to product approvals and registrations and provide the obligation to comply with these conditions (Feeds Act (18) Fertilizers Act (21))

The Canadian Food Inspection Agency (CFIA) currently places conditions or restrictions on product approvals and registrations based on the properties of the product and data submitted by the notifier. Although such limitations are needed to ensure the safe use and disposal of the product so that human health, animal health, and the environment are not compromised, there is no explicit authority in the Feeds Act or Fertilizers Act that would allow the Minister to apply these conditions or require compliance with them. This proposed amendment would address concerns expressed by the Standing Joint Committee for the Scrutiny of Regulations.

20. Provide clear legislative authority respecting the release of novel supplements (Fertilizers Act)

This amendment would make it explicitly clear that the Minister has the legal authority to regulate the release of veterinary biologics. Currently the prohibition to release a veterinary biologic exists only in the regulations. Moving this authority in legislation would clearly establish that the Minister has the authority to regulate the release of veterinary biologics. This change would address a potential concern of the Standing Joint Committee for the Scrutiny of Regulations.

23. Provide clear authority in the act for Part V of the Seeds Regulations respecting the release of seed (Seeds Act)

This amendment would make it explicitly clear that the Minister has the legal authority to regulate the release of seed. Currently the prohibition to release seed exists only in the regulations. Moving this authority in legislation would clearly establish that the Minister has the authority to regulate the release of seed. This change would address concerns of the Standing Joint Committee for the Scrutiny of Regulations.

24. Provide authority for the Canadian Seed Growers Association to determine the varietal purity of all seed crops and not just those with grades requiring varietal purity (Seeds Act)

To facilitate international and inter-provincial trade, seeds must be certified, and varietal purity is a pre-requisite for certification. This amendment would provide legal clarity that the Canadian Seed Growers’ Association (CSGA) has the authority to determine varietal purity of all seed crops and not just those where varietal purity is required for grading purposes. The CSGA has been making determinations of varietal purity for all seed crops without this express legislative authority. This amendment would address this legal risk by making it clear in the legislation that this is allowed.

27. Provide clear legislative authority respecting the release of veterinary biologics (Health of Animals Act)

The proposed amendment would provide the Minister with clear legal authority regarding the notification and assessment of veterinary biologics and prohibiting their release without a permit. These authorities currently only exist in the regulations and this has resulted in legal uncertainty. This change would address a potential concern of the Standing Joint Committee for the Scrutiny of Regulations related to a lack of authority for provisions found in the regulations.

30. Clarify that regardless of whether a place exists within a control zone or not, it can be declared an infected place, and can remain an infected place after a control zone is declared (Health of Animals Act)

This amendment would clarify current wording in the act that has been found to be problematic through recent simulations of an animal disease outbreak spreading across Canada. During the simulations, the Canadian Food Inspection Agency (CFIA) looked at how best to apply existing authorities to limit disease spread in infected places and primary control zones. Based on the wording of the act, it is unclear whether a place declared to be infected can continue to have restrictive movement control measures in place when a primary control zone is identified that includes the infected place within its boundaries. Updating authorities in the act to clarify this would provide CFIA officials with the appropriate tools to eradicate or manage a disease that is present in the wider environment.

Multiple amendments: Provide discretionary authority for the Minister to amend, revoke or suspend permits or other authorizations issued under the act (Health of Animals Act (32), Plant Protection Act(34))

This amendment would establish ministerial authority directly in the acts relating to the renewal, amendment, revocation and suspension of a permit or other authorizations for consistency with other the Canadian Food Inspection Agency (CFIA)-administered legislation. Currently this authority only exists in the regulations, and suspension and revocation are at the discretion of the Minister depending on the circumstances of the situation. The absence of details in the legislation to describe the grounds under which the Minister may suspend versus revoke a permit amounts to discretionary authority being exercised by the Minister. This change would address a potential legal risk and respond to concerns identified by the Standing Joint Committee for the Scrutiny of Regulations. CFIA plants to subsequently clarify how and when these authorities are used in regulations.

40. Create an express statutory requirement to comply with terms and conditions of any license, permit, or other authorization under the act (Coastal Fisheries Protection Act)

This amendment would clarify the legal obligations of foreign vessel owners, captains and crew that are operating in Canadian waters. It would clarify that, in cases of contraventions of terms and conditions, anyone guilty of an offence is liable on conviction on indictment to a fine not exceeding $500,000 or on summary conviction to a fine not exceeding $100,000. Currently, enforcement measures regarding the breach of a license condition under the act are specified in the regulations, but this has been deemed legally inappropriate by Standing Joint Committee for the Scrutiny of Regulations. This change would provide more certainty for domestic and international businesses operating in Canada and would be consistent with similar amendments recently made to the Fisheries Act. It would also support the implementation of the recently modernized Fisheries Act, helping ensure modern safeguards such as the requirement to rebuild fish stocks, and sustainable economic growth.

41. Clarify the common law authority of a fishery officer to exercise discretion to resolve a matter prior to charges being laid (Fisheries Act)

This amendment would make it clear in the legislation that fishery officers have the common law authority to use Alternative Measures Agreements (AMAs), which is a diversion process designed to address contraventions to the act without the need to engage in costly and potentially lengthy court processes. The ability to do so, however, is not currently clear in the legislation. Such enhanced legal clarity would reduce ambiguity regarding the authority of fishery officers, fishery guardians, and other peace officers to exercise their discretion in enforcing the act, and this could lead to the avoidance of potential court costs and fewer people entering the criminal justice system for low-level offences.

Related links

• Annual Regulatory Modernization Bill
• News Release
• Proposed Bill