Highlights

  • The Canadian Government has increased the maximum penalty for marine safety and environmental protection violations to $250,000.
  • Amendments to the Agricultural Marketing Programs Regulations have raised the interest-free limit under the Advance Payments Program to $250,000 for agricultural producers for the 2024 program year.
  • New Broadcasting Fees Regulations have been established by the CRTC, applying to all broadcasting undertakings in Canada, with certain exceptions.
  • The Communications Security Establishment Appointments Regulations have been repealed, as the Chief of the CSE now has exclusive appointment authority.
  • The Communications Security Establishment Exclusion of Positions and Employees Approval Order has been repealed.
  • Amendments to the Energy Efficiency Regulations, 2016, have been made to align with U.S. standards for ceiling fan light kits.
  • An order has been enacted to grant privileges and immunities for the Fourth Session of the Intergovernmental Negotiating Committee on Plastic Pollution to be held in Ottawa.
  • The Patent Rules have been amended to allow the Commissioner to rectify insufficient patent fee payments due to administrative errors.
  • Updates to the Preliminary Screening Requirement Regulations and the Exemption List Regulations under the Mackenzie Valley Resource Management Act have been made for consistency with current environmental standards.

Canada Increases Maximum Penalties for Marine Safety and Environmental Violations

The Canadian Government has amended the Administrative Monetary Penalties and Notices (CSA 2001) Regulations to increase the maximum penalty for violations related to marine safety and environmental protection to $250,000. This change reflects the serious potential harm and environmental damage that non-compliant large vessels can cause. The amendments aim to ensure penalties are a strong deterrent rather than being seen as a cost of doing business. The updated regulations also bring consistency with other enforcement regimes and address concerns from Indigenous communities and stakeholders about the effectiveness of previous penalties.

Additionally, the amendments designate specific provisions of the Arctic Shipping Safety and Pollution Prevention Regulations (ASSPPR) and the Vessel Fire Safety Regulations (VFSR) as violations, allowing for administrative monetary penalties to be applied for non-compliance. This provides a broader range of enforcement measures for medium and serious violations, ensuring that enforcement actions are proportionate to the violation.

The penalty ranges are determined based on the gravity of the violation (minor, medium, serious) and the category of the violator (individual, corporation, or vessel). The updated penalty ranges are designed to be proportionate to the severity of the violation and consider factors such as the violator’s compliance history, the harm caused, and any economic benefits gained from non-compliance.

The amendments to the regulations do not introduce new requirements but enforce existing ones through a more effective penalty system. The regulations come into force on the day they are published in the Canada Gazette, Part II. Enforcement officers will continue to use a range of tools to promote compliance, with administrative monetary penalties being one of several measures available. [Source]

Canada Increases Interest-Free Loan Limit for Farmers to $250,000 in 2024

The Canadian government has amended the Agricultural Marketing Programs Regulations to temporarily increase the interest-free limit under the Advance Payments Program (APP) to $250,000 for the 2024 program year, while maintaining the overall loan limit at $1 million. This measure aims to alleviate cash flow challenges for agricultural producers who have been facing increased costs due to global economic factors, supply chain disruptions, and high interest rates. The amendment is expected to reduce borrowing costs for producers, helping to stabilize the primary agricultural sector and mitigate food inflation.

The APP is a federal loan guarantee program that provides low and no-interest cash advances to agricultural producers, enhancing their cash flow and marketing opportunities. The program allows producers to access up to 50% of the estimated market value of eligible agricultural products, with a maximum advance of $1 million. The federal government typically covers the interest on the first $100,000 advanced to each producer.

The recent global economic climate, including the Russia-Ukraine conflict and general inflation, has increased farm input costs and interest expenses, contributing to food inflation. The amendment is expected to benefit nearly 12,000 producers by decreasing borrowing costs and improving access to cash flow for the 2024 growing season. The government anticipates that this temporary measure will support food security and stabilize food prices.

The amendment will result in an estimated $63.7 million in incremental costs to the government, including interest costs and default costs. However, it is expected to provide significant interest savings to producers, with an average incremental savings of $4,916 per producer. The amendment is also expected to have a positive impact on small businesses, as the majority of Canadian farms fall under this category.

The amendment does not have modern treaty implications, and it is not expected to result in regulatory cooperation or alignment issues. A gender-based analysis indicates that while the agricultural sector is predominantly male and older, the amendment will benefit all demographic groups proportionally to their participation in the sector. The government will work with APP administrators to implement the change in time for the 2024 program year. [Source]

New Canadian Broadcasting Fees Regulations Effective April 2024

The Canadian Radio-television and Telecommunications Commission (CRTC), with Treasury Board approval, has established new Broadcasting Fees Regulations under the Broadcasting Act. These regulations apply to all broadcasting undertakings in Canada, except for campus, community, Indigenous, student broadcasting undertakings, those operated by the Corporation, and independent corporations that do not derive revenue from air time sales.

The regulations define terms such as “broadcasting ownership group,” “excluded revenue,” “fee revenue,” and “exemption level.” Fee revenue includes all gross revenue from broadcasting activities in Canada, minus excluded revenue, for all undertakings within a broadcasting ownership group. Excluded revenue pertains to income from services like audiobooks, podcasts, and video games, as well as from exempted broadcasting activities.

Broadcasting ownership groups with fee revenue exceeding the exemption level must file an annual fee return with the CRTC. The designated broadcasting undertaking within each group is responsible for ensuring compliance with the regulations.

Fees are calculated by the CRTC and are based on the group’s fee revenue minus the exemption level, in proportion to the total fee revenue of all groups minus their aggregate exemption levels. The fees are intended to cover the CRTC’s estimated total regulatory costs for the fiscal year, which include broadcasting and administrative costs related to broadcasting activities.

If fees are overdue, interest and administrative charges will apply. The CRTC will publish its estimated total regulatory costs annually in the Canada Gazette, Part I. Transitional provisions are in place for the fiscal years 2024-2025 and 2025-2026 to align with the new regulations.

The Broadcasting Licence Fee Regulations, 1997, are repealed, and the new regulations come into effect on April 1, 2024. [Source]

Repeal of Outdated CSE Appointment Regulations Following Establishment Act Changes

The Canadian government has repealed the Communications Security Establishment Appointments Regulations, which were made under the Public Service Employment Act (PSEA). These regulations had previously authorized the Deputy Minister of the Department of National Defence to appoint persons to the Communications Security Establishment (CSE). However, since the Communications Security Establishment Act (CSEA) came into force on August 1, 2019, the Chief of the CSE now has exclusive authority over appointments within the CSE, rendering the previous regulations obsolete. As a result, the Deputy Minister no longer has appointment powers for the CSE. The repeal of these regulations is part of an administrative update and does not impact small businesses or require the one-for-one rule, as it simply removes outdated regulatory titles. The changes took effect on the day they were registered. [Source]

Repeal of Exclusion Order for Communications Security Establishment Positions and Employees

The Communications Security Establishment Exclusion of Positions and Employees Approval Order has been repealed by the Public Service Commission under the authority of the Public Service Employment Act. This decision was approved by the Governor General in Council upon the recommendation of the President of the King’s Privy Council for Canada. The repeal signifies that certain positions and employees at the Communications Security Establishment are no longer excluded under the previously existing order. The Regulatory Impact Analysis Statement related to this repeal can be found following another set of regulations that were also repealed. [Source]

Canada Aligns Ceiling Fan Light Kit Efficiency Standards with U.S. Regulations

The Canadian Minister of Natural Resources has enacted amendments to the Energy Efficiency Regulations, 2016, to maintain harmonization with the United States’ energy efficiency standards for ceiling fan light kits. This action was prompted by changes made by the U.S. Department of Energy to its testing standard for these products. The amendments include updating the definition of solid-state lighting to “non-consumer-replaceable solid-state lighting,” revising the testing standard reference to align with the U.S. standard, and adjusting the information requirements accordingly.

The objective of these amendments is to avoid trade issues and ensure that energy savings are realized as planned. Stakeholders, including manufacturers, importers, and various organizations, were informed and consulted about the changes, with no opposition reported. The amendment does not impact consumers, alter energy efficiency standards, or introduce new requirements, and therefore does not necessitate a regulatory analysis such as cost-benefit or small business lens.

Manufacturers and importers of ceiling fan light kits must comply with the updated requirements, and NRCan will monitor compliance. Non-compliance with the Energy Efficiency Act or the Regulations can result in penalties as outlined in the Act. The amendments are effective upon registration. [Source]

Canada Grants Privileges for UNEP’s Plastic Pollution Talks in Ottawa

The Canadian government has enacted an order to grant privileges and immunities for the Fourth Session of the Intergovernmental Negotiating Committee on Plastic Pollution (INC-4) to be held in Ottawa. This order is based on an agreement with the United Nations Environment Programme (UNEP) and is necessary for Canada to host the event, which includes regional preparatory consultations and the INC-4 meeting itself, scheduled from April 23 to 30, 2024.

The order specifies that during the relevant period, from April 19 to May 3, 2024, the premises used for the meetings, as well as the archives and documents of the UNEP, will be inviolable. Participants, including representatives of foreign states, members of the UN, and officials of specialized agencies or related organizations, will enjoy certain privileges and immunities. These include immunity from legal processes in relation to their official duties and immunity from immigration restrictions.

The order is aligned with the Convention on the Privileges and Immunities of the United Nations and is consistent with Canada’s obligations under the agreement with the UN. It is intended to facilitate Canada’s leadership in addressing global plastic pollution and to support the country’s objective of achieving Zero Plastic Waste by 2030. The costs associated with hosting the event have been covered by Environment and Climate Change Canada.

No public consultation was required for this order as it pertains mainly to the UNEP and its personnel, and it does not impact other stakeholders or small businesses. The order does not change the administrative burden on businesses and has no direct environmental impacts or identified differential impacts from a gender-based analysis perspective. The order comes into force upon registration. [Source]

Canadian Patent Rules Amended to Allow Commissioner to Rectify Fee Payment Errors

The Canadian Intellectual Property Office (CIPO) has introduced amendments to the Patent Rules to provide the Commissioner with the authority to rectify situations where patent fee payments are insufficient due to administrative errors. This new mechanism is scalable and can address issues affecting a large number of fee payers without requiring action from them.

The amendments empower the Commissioner to extend the payment period for fees when incorrect information has been provided by CIPO, and to waive the unpaid portion of the fee if deemed justifiable. Additionally, the Commissioner can waive a portion of a fee not yet paid for up to four months to prevent further incorrect payments by other fee payers who might be affected by the same error.

These changes aim to prevent undue harm to patent applicants and patentees from administrative errors, saving them from additional costs and the risk of losing IP rights. The amendments also reduce CIPO’s administrative burden in reconciling incorrect payments.

The regulatory amendments are beneficial for patent owners and applicants as they prevent extra fees and loss of rights due to incorrect payments, and they eliminate the need to hire patent agents to correct such errors. However, CIPO will not collect revenue from the waived fees, which equals the fee savings for its clients.

The small business lens analysis indicates that the amendments will impact small businesses positively by potentially saving them costs. The one-for-one rule does not apply as there is no change in administrative burden on businesses.

The amendments do not align with international patent offices but are similar in providing waivers or refunds in certain situations. A strategic environmental assessment and a gender-based analysis plus scan determined that no further assessments are required.

The amendments will be effective upon registration, and no specific service standards are mentioned for the implementation, compliance, and enforcement of these changes. [Source]

Updates to Mackenzie Valley Environmental Screening and Exemption Regulations

The Regulations Amending the Preliminary Screening Requirement Regulations and the Exemption List Regulations under the Mackenzie Valley Resource Management Act have been updated. These amendments reflect changes in federal and territorial legislation, ensuring consistency with current environmental standards, particularly in the North. The Preliminary Screening Requirement Regulations determine which projects require environmental screening, while the Exemption List Regulations specify which developments are exempt due to their insignificant environmental impact.

Key changes include updating references to modernized federal and territorial acts and regulations, clarifying definitions such as “Northwest Territories territorial park,” and adjusting criteria for exemptions to better reflect current environmental practices. For instance, the capacity for exempt parking lots has increased, and the exemption now includes repair and maintenance of certain structures. Additionally, the amendments remove outdated references to repealed legislation and ensure that developments with potentially significant environmental impacts are not exempted due to outdated criteria.

Consultations were held with various stakeholders, including federal departments, territorial governments, First Nations organizations, and industry associations. Feedback led to adjustments in the draft amendments, such as removing proposed exemptions for certain radioactive devices due to concerns raised.

The amendments do not introduce new costs to project developers or the government, as they primarily update existing regulations. They also do not impact small businesses, as determined by the small business lens analysis. The one-for-one rule does not apply since there is no change in administrative costs to businesses. The amendments align with other updated federal and territorial regulations and do not require a strategic environmental assessment or a gender-based analysis plus (GBA+).

The updated regulations come into force on the day of their registration and do not introduce new compliance and enforcement requirements. [Source]

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