Part 1, Volume 157 #25
Highlights
- The Ottawa Islamic Centre and Assalam Mosque’s charity status has been reinstated by the Canada Revenue Agency.
- Andy’s Airsoft is appealing a decision by the Canada Border Services Agency regarding the classification of an airsoft gun barrel extension.
- The CRTC has issued decisions affecting various broadcasting undertakings across Canada.
- Draft Federal Environmental Quality Guidelines for BTEX have been released, with a public comment period open.
- The Vancouver Fraser Port Authority is acquiring new real properties.
- The Government of Canada is seeking applicants for Governor in Council positions.
- The Supreme Court of Canada has announced its session commencement dates for late 2023 and 2024.
- Four insurance companies are planning to amalgamate into Definity Insurance Company.
- Pacific Life Re Limited and United American Insurance Company are seeking to release their Canadian assets.
- RBC plans to amalgamate with HSBC Bank Canada and its affiliates.
- Proposed amendments to the Mackenzie Valley Resource Management Act aim to update environmental regulations.
- Changes to student loan regulations could increase loan forgiveness for healthcare professionals in rural areas.
- Amendments to the Wild Animal and Plant Trade Regulations are proposed to strengthen controls on the trade of elephant tusks and rhinoceros horns.
- Proposed changes to the Pension Benefits Standards Regulations, 1985, focus on NC pension plans and unclaimed pension balances.
- The Canadian Aviation Regulations are being amended to support the RPAS sector, including rules for VLOS and BVLOS operations.
- The number of electors for the Calgary Heritage by-election has been announced.
Recent Decisions and Appeals in Canadian Agencies: CRA, CITT, and CRTC
The Canada Revenue Agency has rescinded the revocation of registration for the charity “THE OTTAWA ISLAMIC CENTRE AND ASSALAM MOSQUE” after reconsidering the notice of intention to revoke published in 2018. The charity is no longer revoked and remains compliant with the Income Tax Act.
The Canadian International Trade Tribunal will review an appeal by Andy’s Airsoft against the Canada Border Services Agency’s classification of an airsoft gun barrel extension as a “prohibited device” under tariff item No. 9898.00.00. The hearing is set for July 25, 2023, and will be conducted through written submissions. Interested parties are invited to contact the Tribunal.
The Canadian Radio-television and Telecommunications Commission (CRTC) has released decisions regarding broadcasting undertakings. MusiquePlus Inc. has decisions related to ELLE Fictions and MAX, which are available across Canada. Communications CHIC (C.H.I.C.) has a decision regarding CHIC-FM in Rouyn-Noranda, Quebec. Dufferin Communications Inc. has a decision for CKPC in Brantford, Ontario. The full versions of these decisions are available on the CRTC’s website. [Source]
Canadian Environmental and Governance Updates
The Department of the Environment has released draft Federal Environmental Quality Guidelines for benzene, toluene, ethylbenzene, and xylene (BTEX). The public has 60 days to comment on the scientific basis of these guidelines. Additionally, the Department requires information on certain substances under the Chemicals Management Plan by January 17, 2024, to assess toxicity and control measures. Confidentiality claims will be considered, and extensions for compliance may be requested.
The Vancouver Fraser Port Authority is set to acquire new real properties, which will be listed in their supplementary letters patent upon registration of the title.
The Government of Canada is seeking applications from Canadians for various Governor in Council positions across different organizations to ensure diversity and a harassment-free workplace.
The Supreme Court of Canada has announced the commencement dates for its Fall 2023, Winter 2024, and Spring 2024 sessions. [Source]
Upcoming Insurance and Banking Sector Amalgamations and Asset Releases in Canada
Definity Insurance Company, Perth Insurance Company, The Missisquoi Insurance Company, and Waterloo Insurance Company are planning to amalgamate into one entity under the name “Definity Insurance Company.” The proposed amalgamation is set to take effect on January 1, 2024, with the head office located in Waterloo, Ontario, pending approval from the Minister of Finance following the standard review process.
Pacific Life Re Limited is seeking authorization to release its assets maintained in Canada as per the Insurance Companies Act. Policyholders or creditors opposed to this release must file their opposition by August 3, 2023.
Royal Bank of Canada (RBC) intends to amalgamate with HSBC Bank Canada, HSBC Trust Company (Canada), HSBC Mortgage Corporation (Canada), and HSBC Finance Mortgages Inc. into one bank under the name “Royal Bank of Canada,” with the head office in Montréal, Quebec. This amalgamation is contingent on RBC acquiring all shares of HSBC Bank Canada and is subject to regulatory approvals. The amalgamation will occur after the acquisition is completed, with the effective date to be determined by the letters patent of amalgamation.
United American Insurance Company plans to apply for the release of its assets in Canada in accordance with the Insurance Companies Act. Opposing policyholders or creditors must submit their opposition by July 22, 2023. [Source]
Proposed Amendments to Environmental Screening Regulations in the Mackenzie Valley
The Canadian government is proposing amendments to the Preliminary Screening Requirement Regulations and the Exemption List Regulations under the Mackenzie Valley Resource Management Act. These changes aim to update the regulations to reflect the current federal and territorial legislation, ensure consistency with other environmental regimes in Canada, particularly in the North, and remove outdated references to acts and regulations. The amendments will clarify which developments require environmental screening and which are exempt, ensuring that projects with potentially significant environmental impacts or public concern are not exempt due to outdated legislation.
Consultations have been held with various stakeholders, including federal departments, territorial governments, First Nations organizations, and industry associations. Feedback from these consultations has been incorporated into the proposed amendments. The changes are not expected to introduce additional costs for project developers or the government.
The amendments include updating definitions, such as that of a Northwest Territories territorial park, and revising the list of developments that are exempt from preliminary screenings. The proposed changes also aim to simplify language and remove redundancies, such as replacing specific references to federal acts with more general language.
The proposed regulatory text outlines specific amendments to the Preliminary Screening Requirement Regulations and the Exemption List Regulations, including updates to the schedules that list provisions of federal and territorial acts and regulations.
The proposed amendments are open for public comment for 30 days following their publication, and interested parties are encouraged to provide feedback. The regulations will come into force on the day they are registered. [Source]
Canada Proposes Increased Loan Forgiveness for Healthcare Workers in Rural Areas
The Canadian government is proposing amendments to the Canada Student Financial Assistance Regulations and the Canada Student Loans Regulations to increase loan forgiveness for family physicians, nurses, and nurse practitioners working in rural and remote communities. The changes would allow family physicians to receive up to $60,000 and nurses or nurse practitioners up to $30,000 in loan forgiveness over five years. The amount forgiven annually would increase each year based on the number of years the health professional works in an underserved area.
The goal is to incentivize more health professionals to work and stay in these communities, improving access to healthcare and potentially leading to better health outcomes. The cost of this proposal to the government is estimated at $22.6 million over ten years, which is also the amount doctors and nurses would receive for a minimum of 400 hours of service annually to the rural community.
The amendments are in response to the challenges of attracting healthcare providers to rural areas, which have been exacerbated by the COVID-19 pandemic. The current loan forgiveness benefit, established in 2013, has not kept pace with inflation and the rising cost of living, reducing its effectiveness as an incentive.
Consultations with stakeholders, including student groups, healthcare professionals, and provincial/territorial health ministries, generally support the increase in loan forgiveness. However, there are concerns about retaining health professionals in rural areas after the loan forgiveness period and the complexity of the application process for the benefit.
The proposed regulatory changes are expected to benefit approximately 3,000 student loan borrowers in the first year and up to 8,000 per year by 2032-33. The changes are not expected to impact small businesses or require changes to administrative burdens. They align with provincial and territorial strategies to increase healthcare capacity in rural and remote areas and are supported by existing loan forgiveness programs in some provinces.
The proposed regulations are anticipated to be in place by late fall 2023, with the National Student Loan Service Centre implementing the changes. The enhancements will be communicated to stakeholders through existing forums and media channels. Compliance and enforcement will continue under existing program monitoring, with penalties for providing false information. The changes are not expected to have differential impacts on Indigenous peoples or negative implications for modern treaties. [Source]
Canada Proposes Stricter Trade Controls on Elephant Tusks and Rhino Horns
The Canadian government is proposing amendments to the Wild Animal and Plant Trade Regulations to strengthen trade controls on elephant tusks and rhinoceros horns, aiming to contribute to the global efforts to prevent the decline of these species. Despite existing global trade restrictions, illegal trade continues to threaten these animals, with significant population decreases reported over recent years.
The proposed amendments will prohibit the import and export of raw elephant tusks and rhinoceros horns, except for specific non-commercial purposes such as scientific research, museum or zoo exhibits, and law enforcement activities. Worked (carved or shaped) tusks and horns that are personal or household effects will now require import and export permits, removing previous exemptions.
Public consultations on the matter received over 86,000 submissions, with the majority supporting stricter controls due to conservation concerns. However, some stakeholders, including Inuit organizations and antique dealers, expressed concerns about potential implications for trade in non-elephant ivory and the historic value of ivory artifacts.
The regulatory impact analysis estimates the total cost of the amendments at approximately $5.7 million over ten years, primarily due to increased enforcement activities. Benefits include contributing to the preservation of elephant and rhinoceros populations and improving data collection on the trade of these items.
The amendments align Canada with stricter regulations in the United States and the United Kingdom and support international commitments to biodiversity conservation. A gender-based analysis suggests that Caucasian men, who are the majority of big game hunters, may be more affected by the restrictions on importing and exporting raw tusks and horns.
The proposed regulations will come into force upon registration, with a compliance strategy in place to educate and inform Canadians about the new requirements. Enforcement will be prioritized based on conservation risk and non-compliance levels, with various measures including inspections and investigations to ensure adherence to the new rules. [Source]
Proposed Amendments to Enhance Funding and Address Unclaimed Balances in Canadian Pension Plans
The Canadian government is proposing regulatory amendments to the Pension Benefits Standards Regulations, 1985, specifically concerning Negotiated Contribution (NC) pension plans and unclaimed pension balances. NC pension plans are multi-employer defined benefit plans where employer contributions are fixed by agreement and not tied to the plan’s solvency. Currently, funding shortfalls in these plans are typically addressed by reducing benefits rather than increasing contributions, which can impact the retirement security of members and retirees.
The proposed changes would exempt NC plans from solvency funding requirements and introduce enhanced going concern funding standards, including a funding buffer for normal costs and going concern liabilities. This aims to allow NC plans to offer more sustainable benefit levels and enhance retirement security. The regulations would also require NC plans to have governance and funding policies detailing plan objectives, risk management, and procedures for benefit reductions if necessary.
Additionally, the amendments address the issue of unclaimed pension balances, which occur when beneficiaries cannot be located, preventing the full wind-up of terminated plans. The regulations would establish the information that plan administrators must provide to a designated entity responsible for holding unclaimed pension balances, such as the beneficiary’s name, address, date of birth, and social insurance number. The designated entity would be authorized to publish certain information to assist individuals in locating their unclaimed pensions.
The proposed regulations are expected to benefit NC plans by reducing instances where benefits must be cut due to solvency deficits and by improving plan transparency. For unclaimed pension balances, the regulations aim to protect these funds and help rightful owners claim them. The changes are not anticipated to impose significant costs on plan sponsors, administrators, or the government, and they align with certain provincial regulations exempting NC-type plans from solvency funding requirements. Public consultations have shown broad support for the framework, and the regulations will be enforced by the Office of the Superintendent of Financial Institutions. [Source]
Canada Proposes Regulations for Unclaimed Pension Assets Management
The Canadian government is proposing amendments to the Pension Benefits Standards Regulations, 1985, specifically addressing the issue of pension assets belonging to individuals who cannot be located. The amendments define who is considered a “person who cannot be located” and outline the information that must be provided to a designated entity responsible for managing these assets. This includes personal details of the missing individual, their pension plan membership dates, the amount transferred, and employer contributions.
The proposed regulations also specify what information the designated entity is allowed to publish in an effort to locate the missing individuals. Additionally, the regulations set a prescribed period of time for holding the assets: 30 years for amounts under $1,000 and 100 years for larger amounts.
Interested parties are invited to make representations about the proposed regulations within 30 days of the notice’s publication. Comments can be submitted online or sent directly to the Department of Finance, and they must adhere to certain guidelines, such as not containing personal information or hate speech.
The regulations will come into force on the day section 142 of the Budget Implementation Act, 2021, No. 1, is enacted, or on the day they are registered if that occurs later. [Source]
Canada Amends Aviation Regulations to Support RPAS Sector Growth and Safety
The Canadian government is amending the Canadian Aviation Regulations to accommodate the growing remotely piloted aircraft systems (RPAS) sector. These amendments aim to facilitate economic growth and innovation while ensuring safety in the aviation sector. The changes will allow for the operation of RPAS up to 150 kg within visual line-of-sight (VLOS) and introduce rules for beyond visual line-of-sight (BVLOS) operations over sparsely populated areas and at low altitudes in uncontrolled airspace.
The amendments will remove the need for a Special Flight Operations Certificate (SFOC) for these operations, which currently require case-by-case approval. New requirements include a pilot certification process for BVLOS operations, technical standards for RPAS, operational procedures such as increased distances from airports and people, and organizational requirements for BVLOS operators.
The proposal also updates existing service fees and introduces new fees for RPAS services. The anticipated benefits of the amendments include enabling high-value RPAS operations, eliminating the need for SFOCs for certain operations, increased profits for domestic RPAS manufacturers, and increased recreational pilot activities. The net benefit over a ten-year period is estimated to be $14.21 million, with a reduction in administrative burden on stakeholders.
The amendments align with international approaches to RPAS regulation and are part of a broader effort to integrate RPAS into the transportation system while promoting safety and innovation. The changes will come into effect in stages, with some provisions effective upon publication and others by April 1, 2025. [Source]
Preliminary Elector Count for Calgary Heritage By-Election Announced
The Chief Electoral Officer of Canada has announced the number of electors listed on the preliminary list for the upcoming by-election in the Calgary Heritage electoral district in Alberta, which totals 81,076. [Source]