Changes

=== Theme 1: Engage early at the design and instrument choice stage for greater transparency. ===

=== Theme 1: Engage early at the design and instrument choice stage for greater transparency. ===

Some stakeholders pointed out that it should be a mandatory requirement for departments and agencies to report the results of engagement in the design and instrument selection as part of the Regulatory Impact Assessment Statement (RIAS), with one stakeholder advocating a check-list to be signed off by the sponsoring minister of the regulation. An additional suggested requirement was to publish a Notice of Intent (NOI) to regulate in the Canada Gazette for a 60-day comment period, before a draft regulation is developed. The NOI could be an early version of a RIAS with drafting instructions upon which stakeholders would be able to provide relevant input as to costs, operational and implementation issues. These factors would assist regulators in the design phase.

Some stakeholders pointed out that it should be a mandatory requirement for departments and agencies to report the results of engagement in the design and instrument selection as part of the Regulatory Impact Assessment Statement (RIAS), with one stakeholder advocating a check-list to be signed off by the sponsoring minister of the regulation. An additional suggested requirement was to publish a Notice of Intent (NOI) to regulate in the Canada Gazette for a 60-day comment period, before a draft regulation is developed. The NOI could be an early version of a RIAS with drafting instructions upon which stakeholders would be able to provide relevant input as to costs, operational and implementation issues. These factors would assist regulators in the design phase.

=== Theme 2: Consider regulatory cooperation and regulatory alignment at all times. ===

=== Theme 2: Consider regulatory cooperation and regulatory alignment at all times. ===

Several stakeholders approved of the federal government’s leadership in advancing regulatory cooperation and alignment and noted the progress being made through initiatives such as the Canada – U.S. RCC. They look forward to similar progress being made under additional trade agreements such as the CFTA and the CETA. Some stakeholders even suggested direct harmonization or alignment of regulatory activities with the U.S. should be a priority.<blockquote style="background-color: lightgrey; border: solid thin grey;">“The Directive should make regulatory cooperation and alignment a pre-requisite when considering approaches and instruments and entrench this approach within the departmental and agency work”.Several stakeholders repeatedly expressed encouragement that regulatory cooperation and alignment are given a higher profile in the draft CDR. They encouraged departments and agencies to better balance regulatory cooperation and alignment as an incentive for economic growth with existing protections for public health, safety and the environment.

Several stakeholders approved of the federal government’s leadership in advancing regulatory cooperation and alignment and noted the progress being made through initiatives such as the Canada – U.S. RCC. They look forward to similar progress being made under additional trade agreements such as the CFTA and the CETA. Some stakeholders even suggested direct harmonization or alignment of regulatory activities with the U.S. should be a priority.

 

“The Directive should make regulatory cooperation and alignment a pre-requisite when considering approaches and instruments and entrench this approach within the departmental and agency work”.Several stakeholders repeatedly expressed encouragement that regulatory cooperation and alignment are given a higher profile in the draft CDR. They encouraged departments and agencies to better balance regulatory cooperation and alignment as an incentive for economic growth with existing protections for public health, safety and the environment.

A few stakeholders went further, suggesting that regulatory cooperation and alignment should be made a pre-requisite when designing approaches and instruments. In new areas of regulation, they have suggested that departments and agencies should align regulatory efforts by default. When departments and agencies choose not to align by default, they should provide a detailed explanation as to why they have chosen to create a misalignment. At the same time, stakeholders cautioned that a focus on regulatory cooperation and alignment leading to economic growth should be properly balanced with strong protections for citizen and environmental health and well-being, where precaution, privacy and confidentiality, need to be underscored throughout the regulatory life-cycle.

A few stakeholders went further, suggesting that regulatory cooperation and alignment should be made a pre-requisite when designing approaches and instruments. In new areas of regulation, they have suggested that departments and agencies should align regulatory efforts by default. When departments and agencies choose not to align by default, they should provide a detailed explanation as to why they have chosen to create a misalignment. At the same time, stakeholders cautioned that a focus on regulatory cooperation and alignment leading to economic growth should be properly balanced with strong protections for citizen and environmental health and well-being, where precaution, privacy and confidentiality, need to be underscored throughout the regulatory life-cycle.

=== Theme 3: Incorporation by reference. ===

=== Theme 3: Incorporation by reference. ===

<blockquote style="background-color: lightgrey; border: solid thin grey;">“The absence of any reference to “Incorporation by Reference” (IBR) in the draft Cabinet Directive is surprising to us given that the Incorporation by Reference in Regulations Act came into force in 2015.”Building on the importance of coordination, cooperation and alignment, some stakeholders believe that incorporation by reference (IBR) should be more strongly reflected in the draft CDR. A few stakeholders noted that departments and agencies need to assess the cost to incorporate standards developed by accredited domestic and international bodies. They advocate that regulators should be directed to place a stronger emphasis on the use of IBR as a drafting technique, as this is an essential way for governments to regulate in this climate of rapid change. They also believe that regulations using this technique would better assist intergovernmental cooperation and harmonization.

“The absence of any reference to “Incorporation by Reference” (IBR) in the draft Cabinet Directive is surprising to us given that the Incorporation by Reference in Regulations Act came into force in 2015.”Building on the importance of coordination, cooperation and alignment, some stakeholders believe that incorporation by reference (IBR) should be more strongly reflected in the draft CDR. A few stakeholders noted that departments and agencies need to assess the cost to incorporate standards developed by accredited domestic and international bodies. They advocate that regulators should be directed to place a stronger emphasis on the use of IBR as a drafting technique, as this is an essential way for governments to regulate in this climate of rapid change. They also believe that regulations using this technique would better assist intergovernmental cooperation and harmonization.

=== Theme 4: Analyze regulatory costs, benefits and impacts systematically. ===

=== Theme 4: Analyze regulatory costs, benefits and impacts systematically. ===

A majority of stakeholders noted that in their view, departments and agencies are not consistent in how they approach cost-benefit; nor do these stakeholders feel that departments and agencies always undertake thorough analysis of costs and benefits.<blockquote style="background-color: lightgrey; border: solid thin grey;">“Our experience is that not all agencies or departments do cost benefit analysis of all regulations and when they do they are often cursory and fail to properly assess the impact and cost”.Several stakeholders commented that regulatory proposals often underestimated costs on industry by using out-of-date information and data.

A majority of stakeholders noted that in their view, departments and agencies are not consistent in how they approach cost-benefit; nor do these stakeholders feel that departments and agencies always undertake thorough analysis of costs and benefits.

 

“Our experience is that not all agencies or departments do cost benefit analysis of all regulations and when they do they are often cursory and fail to properly assess the impact and cost”.Several stakeholders commented that regulatory proposals often underestimated costs on industry by using out-of-date information and data.

A few stakeholders suggested that regulatory impact analysis could consider different lenses such as a rural lens and / or a municipality lens in addition to the current Small Business Lens. Additionally, some stakeholders remarked that the draft CDR should make it a requirement to assess cumulative regulatory burden on industry. A few suggested that assessment of cumulative cost should also include guidance documents, and not just the regulation.

A few stakeholders suggested that regulatory impact analysis could consider different lenses such as a rural lens and / or a municipality lens in addition to the current Small Business Lens. Additionally, some stakeholders remarked that the draft CDR should make it a requirement to assess cumulative regulatory burden on industry. A few suggested that assessment of cumulative cost should also include guidance documents, and not just the regulation.

A majority of stakeholders endorsed the proposed mandatory requirement for regular reviews of regulations as proposed in the draft CDR. The same proportion of stakeholders want to be consulted or asked which regulations should be reviewed.

A majority of stakeholders endorsed the proposed mandatory requirement for regular reviews of regulations as proposed in the draft CDR. The same proportion of stakeholders want to be consulted or asked which regulations should be reviewed.

The draft CDR gives departments and agencies the flexibility to establish their own timelines by which they intend to conduct a stock review. Some stakeholders felt that TBS should prescribe a timeframe in order to allow for greater predictability.<blockquote style="background-color: lightgrey; border: solid thin grey;">“We are supportive of the need for departments and agencies to undertake periodic reviews. These periodic reviews should be a matter of public consultation with affected stakeholders”.

The draft CDR gives departments and agencies the flexibility to establish their own timelines by which they intend to conduct a stock review. Some stakeholders felt that TBS should prescribe a timeframe in order to allow for greater predictability.

 

“We are supportive of the need for departments and agencies to undertake periodic reviews. These periodic reviews should be a matter of public consultation with affected stakeholders”.

“‘Periodic review’ should include a specific time frame (e.g. every 5 years or more frequently)”.

“Technical guidance documents for regulations under review are often lacking”.In addition to prescribing a timeframe for a review of the existing regulatory stock, some stakeholders strongly suggested that technical and guidance documents issued by departments and agencies to accompany a regulation should also be part of the stock review. In this way, should a department or agency decide to remove obsolete or spent regulations from its stock, it should also take into consideration all related technical and guidance documents that would be impacted by the removal of the regulations and make the necessary adjustments.

“‘Periodic review’ should include a specific time frame (e.g. every 5 years or more frequently)”.

A few stakeholders suggested the following additional criteria to consider when regulators review their existing stock of regulation and regulatory programs:

A few stakeholders suggested the following additional criteria to consider when regulators review their existing stock of regulation and regulatory programs:

=== Theme 6: Single portal for regulatory activities and easier access for regulated parties. ===

=== Theme 6: Single portal for regulatory activities and easier access for regulated parties. ===

<blockquote style="background-color: lightgrey; border: solid thin grey;">“The federal government needs a comprehensive and systematic approach to online consultation”.

“The federal government needs a comprehensive and systematic approach to online consultation”.

 

“We feel that the federal government should look at better methods of direct engagement”.Business entities who reviewed the draft CDR expressed the need for a comprehensive list of regulatory activities and changes that can impact product compliance in one single portal or one comprehensive data source to which stakeholders have access.

A few stakeholders felt that, over the years, the federal government has made some improvements with its regulatory consultations. Yet more efforts should to be made to reach out to communities and consumer groups directly. In their view, this could be facilitated by the development and use of a consultation portal for regulations, similar to what is used in the U.S. ([http://www.regulations.gov/ www.regulations.gov]). Such an online portal for all regulatory consultations should include functionality for all stakeholders to directly provide comments. These comments could also be published via the same portal, so that all Canadians could see suggested improvements and/or concerns generated by regulatory proposals.

A few stakeholders felt that, over the years, the federal government has made some improvements with its regulatory consultations. Yet more efforts should to be made to reach out to communities and consumer groups directly. In their view, this could be facilitated by the development and use of a consultation portal for regulations, similar to what is used in the U.S. ([http://www.regulations.gov/ www.regulations.gov]). Such an online portal for all regulatory consultations should include functionality for all stakeholders to directly provide comments. These comments could also be published via the same portal, so that all Canadians could see suggested improvements and/or concerns generated by regulatory proposals.

=== Theme 7: Enhance accountability, predictability, co-development, coordination and cooperation with other levels of government. ===

=== Theme 7: Enhance accountability, predictability, co-development, coordination and cooperation with other levels of government. ===

Some stakeholders noted that the draft CDR should require departments and agencies to have a “customer service” strategy to assist industry with the interpretation of guidance or technical documents in order to assist regulated parties to comply with regulations in a timely and coordinated fashion.<blockquote style="background-color: lightgrey; border: solid thin grey;">“Our industry has benefited and actively participated in the consultations that have flowed from the Forward Regulatory Plan”.

Some stakeholders noted that the draft CDR should require departments and agencies to have a “customer service” strategy to assist industry with the interpretation of guidance or technical documents in order to assist regulated parties to comply with regulations in a timely and coordinated fashion.

 

“Our industry has benefited and actively participated in the consultations that have flowed from the Forward Regulatory Plan”.

“We suggest that the federal government should move from a consultative model to a co-development model. To facilitate co-development, the Directive should include additional requirements on transparency, timelines and consultation opportunities”.

“For shared responsibilities in implementing regulations, departments and agencies should work together to respond to stakeholders’ requests rather than working in silos”.A few stakeholders recommended that compliance, enforcement, inspection strategies and activities should be done with greater coordination across all departments and agencies. Furthermore, the draft CDR should require greater cooperation with other levels of government for efficiency and coverage in rural and remote areas where consumer regulations are less likely to be enforced.

“We suggest that the federal government should move from a consultative model to a co-development model. To facilitate co-development, the Directive should include additional requirements on transparency, timelines and consultation opportunities”.

For greater predictability, departments and agencies should make the progress of their regulatory proposals available to the public with clear timelines.

For greater predictability, departments and agencies should make the progress of their regulatory proposals available to the public with clear timelines.

=== 1.0 Purpose ===

=== 1.0 Purpose ===

The (draft) Cabinet Directive on Regulation sets out the Government of Canada’s expectations and requirements in the development, management, and review of federal regulations.<blockquote style="background-color: lightgrey; border: solid thin grey;">Under the Statutory Instruments Act, regulations are statutory instruments that are established pursuant to legislative powers conferred under an Act of Parliament, and/or that entail the imposition of legal sanctions if they are contravened.

The (draft) Cabinet Directive on Regulation sets out the Government of Canada’s expectations and requirements in the development, management, and review of federal regulations.

Under the Statutory Instruments Act, regulations are statutory instruments that are established pursuant to legislative powers conferred under an Act of Parliament, and/or that entail the imposition of legal sanctions if they are contravened.

 

They are used by government as an instrument for mandating or enabling particular behaviours or outcomes in order to achieve public policy objectives.

=== 2.0 Scope of Application ===

=== 2.0 Scope of Application ===

This Directive applies to all regulations, as defined by the Statutory Instruments Act, made by or with the approval of the Governor in Council, the Treasury Board of Canada, or a minister of the Crown. Certain regulations are not made through the Cabinet or Governor-in-Council process; in these cases, the regulation-making authorities should follow the regulatory life-cycle approach set out in this Directive.

This Directive applies to all regulations, as defined by the Statutory Instruments Act, made by or with the approval of the Governor in Council, the Treasury Board of Canada, or a minister of the Crown. Certain regulations are not made through the Cabinet or Governor-in-Council process; in these cases, the regulation-making authorities should follow the regulatory life-cycle approach set out in this Directive.

===== It is the duty of the Government of Canada to respect Parliament and the authorities granted by Parliament, as expressed in legislation; and to ensure that regulations result in the greatest overall net benefits to current and future generations of Canadians. In fulfilling this duty, departments and agencies will be guided by four principles: =====

===== It is the duty of the Government of Canada to respect Parliament and the authorities granted by Parliament, as expressed in legislation; and to ensure that regulations result in the greatest overall net benefits to current and future generations of Canadians. In fulfilling this duty, departments and agencies will be guided by four principles: =====

# '''Regulations protect and advance the public interest and support good government:''' Regulations are justified by a clear rationale in terms of protecting the health, safety, security, social and economic well-being of Canadians, and the environment.

#'''Regulations protect and advance the public interest and support good government:''' Regulations are justified by a clear rationale in terms of protecting the health, safety, security, social and economic well-being of Canadians, and the environment.

# '''The regulatory process is open and transparent:''' Regulations, and their related activities, are accessible and understandable, and created in an open, transparent, and inclusive way that meaningfully engages the public and Aboriginal peoples early on.

#'''The regulatory process is open and transparent:''' Regulations, and their related activities, are accessible and understandable, and created in an open, transparent, and inclusive way that meaningfully engages the public and Aboriginal peoples early on.

# '''Regulatory decision-making is evidence-based:''' Proposals are made, and decisions are based, on evidence, robust analysis of costs and benefits, and the assessment of risk, while being open to public scrutiny.

#'''Regulatory decision-making is evidence-based:''' Proposals are made, and decisions are based, on evidence, robust analysis of costs and benefits, and the assessment of risk, while being open to public scrutiny.

# '''Regulations support a fair and competitive economy:''' Regulations should aim to support and promote inclusive economic growth, entrepreneurship, and innovation for the benefit of Canadians and businesses. Opportunities for regulatory cooperation and the development of aligned regulations should be considered wherever possible.

#'''Regulations support a fair and competitive economy:''' Regulations should aim to support and promote inclusive economic growth, entrepreneurship, and innovation for the benefit of Canadians and businesses. Opportunities for regulatory cooperation and the development of aligned regulations should be considered wherever possible.

=== 4.0 The Regulatory Lifecycle Approach ===

=== 4.0 The Regulatory Lifecycle Approach ===

During all stages of the lifecycle, regulators must seek opportunities to engage Indigenous people and stakeholders; pursue regulatory cooperation and regulatory alignment, where appropriate; and, coordinate across all levels of government to minimize cumulative and unintended impacts of regulations on Canadians, business, and the economy.

During all stages of the lifecycle, regulators must seek opportunities to engage Indigenous people and stakeholders; pursue regulatory cooperation and regulatory alignment, where appropriate; and, coordinate across all levels of government to minimize cumulative and unintended impacts of regulations on Canadians, business, and the economy.

==== 4.1 Consultations and Engagement<ref>Stakeholder engagement provides opportunities to ensure that issues and concerns of the stakeholders and the regulators are consistently understood and considered.</ref> ====

==== 4.1 Consultations and Engagement<ref>Stakeholder engagement provides opportunities to ensure that issues and concerns of the stakeholders and the regulators are consistently understood and considered.</ref>====

===== 4.1.1 Stakeholder Engagement =====

===== 4.1.1 Stakeholder Engagement =====

Departments and agencies should seek opportunities to use modern, digital, accessible and secure platforms and tools for consultation and / or engagement. Communication tools should support meaningful and inclusive consultation and/or engagement, with consideration given to any limitations on accessibility for stakeholders and Indigenous peoples. Departments and agencies must follow the requirements for digital government and communication as set out in Treasury Board policies and directives: Policy on Communication, Policy on Federal Identity and the Policy on Official Languages.

Departments and agencies should seek opportunities to use modern, digital, accessible and secure platforms and tools for consultation and / or engagement. Communication tools should support meaningful and inclusive consultation and/or engagement, with consideration given to any limitations on accessibility for stakeholders and Indigenous peoples. Departments and agencies must follow the requirements for digital government and communication as set out in Treasury Board policies and directives: Policy on Communication, Policy on Federal Identity and the Policy on Official Languages.

===== 4.1.2 Consultations with Aboriginal Peoples<ref>The terms “consultation with Aboriginal peoples” refer to the legal obligation of the Crown to consult with Aboriginal peoples that is distinct from stakeholder engagement. To align with section 35 of the Constitution Act, 1982, the term Aboriginal peoples will be used throughout the Directive.</ref> =====

===== 4.1.2 Consultations with Aboriginal Peoples<ref>The terms “consultation with Aboriginal peoples” refer to the legal obligation of the Crown to consult with Aboriginal peoples that is distinct from stakeholder engagement. To align with section 35 of the Constitution Act, 1982, the term Aboriginal peoples will be used throughout the Directive.</ref>=====

If Aboriginal peoples may be impacted by any proposed regulation, departments and agencies must provide reasonable assurance that all obligations in relation to rights protected by section 35 of the Constitution Act, 1982, and international human rights obligations are met.

If Aboriginal peoples may be impacted by any proposed regulation, departments and agencies must provide reasonable assurance that all obligations in relation to rights protected by section 35 of the Constitution Act, 1982, and international human rights obligations are met.

==== 4.2 Regulatory Cooperation and Regulatory Alignment ====

==== 4.2 Regulatory Cooperation and Regulatory Alignment ====

Departments and agencies will assess opportunities for cooperating with other jurisdictions, domestically and internationally, on regulations and associated regulatory activities. This includes assessing the feasibility of aligning regulatory approaches and/or outcomes with key trading partners, in order to reduce the regulatory burden on Canadian business, while maintaining or improving the health, safety, security, social and economic well-being of Canadians, and the environment.<blockquote style="background-color: lightgrey; border: solid thin grey;">Regulatory cooperation is a process to find efficiencies across jurisdictions and reduce unnecessary regulatory differences, achieving domestic policy goals while aiming to facilitate trade and investment, promote economic growth and job creation, and increase consumer choice. A central pillar of regulatory cooperation is the maintenance or enhancement of standards of public health and safety and environmental protection.

Departments and agencies will assess opportunities for cooperating with other jurisdictions, domestically and internationally, on regulations and associated regulatory activities. This includes assessing the feasibility of aligning regulatory approaches and/or outcomes with key trading partners, in order to reduce the regulatory burden on Canadian business, while maintaining or improving the health, safety, security, social and economic well-being of Canadians, and the environment.

Regulatory cooperation is a process to find efficiencies across jurisdictions and reduce unnecessary regulatory differences, achieving domestic policy goals while aiming to facilitate trade and investment, promote economic growth and job creation, and increase consumer choice. A central pillar of regulatory cooperation is the maintenance or enhancement of standards of public health and safety and environmental protection.

 

Regulatory alignment occurs when there is any agreement or arrangement, formal or informal, which reduces or eliminates differences between independent regulatory systems and/or regulatory activities, including inspections, certification, standards, and product and testing approvals.

==== 4.3 Coordination ====

==== 4.3 Coordination ====

Departments and agencies are responsible for working with each other to coordinate regulatory efforts within the Government of Canada including engagement / consultation with stakeholders and Indigenous peoples.

Departments and agencies are responsible for working with each other to coordinate regulatory efforts within the Government of Canada including engagement / consultation with stakeholders and Indigenous peoples.

When appropriate, the results of an instrument choice exercise should be included as part of the Regulatory Impact Analysis Statement to demonstrate through evidence and analysis that a regulation is the best tool to achieve the desired public policy objectives. It should also begin to examine the costs and benefits of regulatory options to inform this decision.

When appropriate, the results of an instrument choice exercise should be included as part of the Regulatory Impact Analysis Statement to demonstrate through evidence and analysis that a regulation is the best tool to achieve the desired public policy objectives. It should also begin to examine the costs and benefits of regulatory options to inform this decision.

Departments and agencies should seek to design outcome-based or performance-based regulations, when appropriate, with a view to minimizing the amount of regulatory burden imposed on businesses and Canadians.<blockquote style="background-color: lightgrey; border: solid thin grey;">Outcome and performance-based regulations specify the desired result that a regulation intends to achieve, rather than a prescriptive description of compliance. This type of regulation increases flexibility for regulated parties as well as departments and agencies, and requires the regulated communities to focus on achieving specific and measurable outcomes.

Departments and agencies should seek to design outcome-based or performance-based regulations, when appropriate, with a view to minimizing the amount of regulatory burden imposed on businesses and Canadians.

Outcome and performance-based regulations specify the desired result that a regulation intends to achieve, rather than a prescriptive description of compliance. This type of regulation increases flexibility for regulated parties as well as departments and agencies, and requires the regulated communities to focus on achieving specific and measurable outcomes.

 

===== 5.1.3 Forward Regulatory Plans =====

===== 5.1.3 Forward Regulatory Plans =====

Departments and agencies should provide advance notice to Canadians and stakeholders on upcoming regulatory changes over a period of 24-month so stakeholders can engage in regulatory development and plan for future regulatory changes at the earliest opportunity.

Departments and agencies should provide advance notice to Canadians and stakeholders on upcoming regulatory changes over a period of 24-month so stakeholders can engage in regulatory development and plan for future regulatory changes at the earliest opportunity.

===== 5.1.4 Consultations Prior to Pre-Publication =====

===== 5.1.4 Consultations Prior to Pre-Publication =====

Departments and agencies will consult when appropriate and engage potentially impacted stakeholders, Indigenous people, including all partners with whom the Government of Canada has a formal regulatory cooperation arrangement, during the development of a regulatory proposal. Departments and agencies are responsible for determining the size and scope of the consultations or engagement. Publication in the Canada Gazette, Part I, (i.e., pre-publication) is not a substitute for early consultation.<blockquote style="background-color: lightgrey; border: solid thin grey;">Departments and agencies should not postpone pre-publishing a proposal in the Canada Gazette, Part I, in the absence of unanimity of views from stakeholders. Rather, consultations and engagement with stakeholders and Indigenous people on a regulatory proposal should be viewed as an ongoing dialogue, with consultations or engagement before pre-publication identified as an important, but not the only, tool to seek stakeholder input.

Departments and agencies will consult when appropriate and engage potentially impacted stakeholders, Indigenous people, including all partners with whom the Government of Canada has a formal regulatory cooperation arrangement, during the development of a regulatory proposal. Departments and agencies are responsible for determining the size and scope of the consultations or engagement. Publication in the Canada Gazette, Part I, (i.e., pre-publication) is not a substitute for early consultation.

Departments and agencies should not postpone pre-publishing a proposal in the Canada Gazette, Part I, in the absence of unanimity of views from stakeholders. Rather, consultations and engagement with stakeholders and Indigenous people on a regulatory proposal should be viewed as an ongoing dialogue, with consultations or engagement before pre-publication identified as an important, but not the only, tool to seek stakeholder input.

 

==== 5.2 Regulatory Impact Analysis (RIA) ====

==== 5.2 Regulatory Impact Analysis (RIA) ====

Departments and agencies must conduct a Regulatory Impact Analysis (RIA) on all regulatory proposals, to support stakeholder engagement and evidence-based decision-making. In conducting RIA, departments and agencies will comply with relevant Acts, regulations, Treasury Board policies, and adhere to guidance, tools, and directives, and will engage with the Regulatory Affairs Sector at Treasury Board of Canada Secretariat (TBS).<blockquote style="background-color: lightgrey; border: solid thin grey;">Regulatory Impact Analysis (RIA) is the systematic approach to the identification and critical assessment of the potential positive and negative effects and implications of a regulatory proposal for consideration by the public, stakeholders and Cabinet. It is an important element of evidence-based decision-making.RIA must examine potential positive and negative effects of a regulatory proposal on the health, safety, security, social and economic well-being of Canadians businesses, and the environment. RIA should include qualitative and quantitative analysis that is proportional to the expected impacts of a regulatory proposal. Departments and agencies must conduct an early assessment, known as a Triage, of a regulatory proposal to determine its expected impact level and the appropriate mix of analytical requirements of the following elements:

Departments and agencies must conduct a Regulatory Impact Analysis (RIA) on all regulatory proposals, to support stakeholder engagement and evidence-based decision-making. In conducting RIA, departments and agencies will comply with relevant Acts, regulations, Treasury Board policies, and adhere to guidance, tools, and directives, and will engage with the Regulatory Affairs Sector at Treasury Board of Canada Secretariat (TBS).

Regulatory Impact Analysis (RIA) is the systematic approach to the identification and critical assessment of the potential positive and negative effects and implications of a regulatory proposal for consideration by the public, stakeholders and Cabinet. It is an important element of evidence-based decision-making.RIA must examine potential positive and negative effects of a regulatory proposal on the health, safety, security, social and economic well-being of Canadians businesses, and the environment. RIA should include qualitative and quantitative analysis that is proportional to the expected impacts of a regulatory proposal. Departments and agencies must conduct an early assessment, known as a Triage, of a regulatory proposal to determine its expected impact level and the appropriate mix of analytical requirements of the following elements:

===== 5.2.1 Analysis of Benefits and Costs =====

===== 5.2.1 Analysis of Benefits and Costs =====

===== 5.2.2 Impacts on the Environment =====

===== 5.2.2 Impacts on the Environment =====

Departments and agencies will undertake an assessment of potential effects on the environment for each regulatory proposal, in accordance with the Cabinet Directive on the Environmental Assessment of Policy, Plan and Program Proposals.<blockquote style="background-color: lightgrey; border: solid thin grey;">An assessment of environmental impacts involves examining the scope and nature of the likely environmental effects (positive or negative); the need for mitigation to reduce or eliminate adverse effects or opportunities for enhancement, and the likely importance of any adverse environmental effects, taking mitigation into account. This helps inform the public that environmental factors have been appropriately considered when decisions are made.

Departments and agencies will undertake an assessment of potential effects on the environment for each regulatory proposal, in accordance with the Cabinet Directive on the Environmental Assessment of Policy, Plan and Program Proposals.

An assessment of environmental impacts involves examining the scope and nature of the likely environmental effects (positive or negative); the need for mitigation to reduce or eliminate adverse effects or opportunities for enhancement, and the likely importance of any adverse environmental effects, taking mitigation into account. This helps inform the public that environmental factors have been appropriately considered when decisions are made.

 

===== 5.2.3 Gender Based Analysis Plus (GBA+) =====

===== 5.2.3 Gender Based Analysis Plus (GBA+) =====

Departments and agencies will undertake an assessment of social and economic impacts of each regulatory proposal on diverse groups of Canadians, in accordance with the Government of Canada’s commitment on implementing Gender-based Analysis.<blockquote style="background-color: lightgrey; border: solid thin grey;">Gender-based Analysis Plus (GBA+) is an analytical tool used to help identify the impacts of government initiatives on diverse groups of women, men, and gender-diverse people. The “plus” acknowledges that GBA goes beyond sex and gender differences to consider multiple identity factors that intersect to make people who they are (such as race, ethnicity, religion, age, and mental or physical disability).

Departments and agencies will undertake an assessment of social and economic impacts of each regulatory proposal on diverse groups of Canadians, in accordance with the Government of Canada’s commitment on implementing Gender-based Analysis.

Gender-based Analysis Plus (GBA+) is an analytical tool used to help identify the impacts of government initiatives on diverse groups of women, men, and gender-diverse people. The “plus” acknowledges that GBA goes beyond sex and gender differences to consider multiple identity factors that intersect to make people who they are (such as race, ethnicity, religion, age, and mental or physical disability).

 

===== 5.2.4 Minimizing Burden on Business =====

===== 5.2.4 Minimizing Burden on Business =====

Departments and agencies will identify and estimate the cost of administrative burden impacts of regulatory proposals on Canadian businesses, as set out in the Red Tape Reduction Act and the Red Tape Reduction Regulations, with a view to minimizing this burden to the greatest extent possible without compromising the health, safety and security of Canadians, the environment or the economy.

Departments and agencies will identify and estimate the cost of administrative burden impacts of regulatory proposals on Canadian businesses, as set out in the Red Tape Reduction Act and the Red Tape Reduction Regulations, with a view to minimizing this burden to the greatest extent possible without compromising the health, safety and security of Canadians, the environment or the economy.

==== 5.3 Regulatory Impact Analysis Statement Requirements ====

==== 5.3 Regulatory Impact Analysis Statement Requirements ====

Departments and agencies will develop a Regulatory Impact Analysis Statement (RIAS) in accordance with the guidelines set out in the Policy on Regulatory Development.

Departments and agencies will develop a Regulatory Impact Analysis Statement (RIAS) in accordance with the guidelines set out in the Policy on Regulatory Development.

 

A Regulatory Impact Analysis Statement (RIAS) is a clear, non-technical synthesis of expected impacts of a proposed regulation. It is published in the Canada Gazette with the regulatory text.

A Regulatory Impact Analysis Statement (RIAS) is a clear, non-technical synthesis of expected impacts of a proposed regulation. It is published in the Canada Gazette with the regulatory text.

==== 5.4 Publication and Consultation ====

==== 5.4 Publication and Consultation ====

===== 5.4.2 Exemption from Pre-publication =====

===== 5.4.2 Exemption from Pre-publication =====

<blockquote style="background-color: lightgrey; border: solid thin grey;">Exemptions to pre-publication requirements may be granted by Treasury Board (Governor-in-Council) or the regulation-making authority, when there is no statutory requirement to pre-publish. In cases where a regulatory proposal is not pre-published, a brief rationale for the exemption must be included in the final RIAS, as a best practice. Departments and agencies must consult with the Regulatory Affairs Sector at TBS if they are considering seeking an exemption.

Exemptions to pre-publication requirements may be granted by Treasury Board (Governor-in-Council) or the regulation-making authority, when there is no statutory requirement to pre-publish. In cases where a regulatory proposal is not pre-published, a brief rationale for the exemption must be included in the final RIAS, as a best practice. Departments and agencies must consult with the Regulatory Affairs Sector at TBS if they are considering seeking an exemption.

 

===== 5.4.3 Final Publication =====

===== 5.4.3 Final Publication =====

In accordance with the Statutory Instruments Act, all approved regulations must be published in Canada Gazette, Part II, after they are made and registered except where exempted under section 15 of the Statutory Instruments Regulations (C.R.C., c. 1509). A Regulatory Impact Analysis Statement must be included along with all published regulations.

In accordance with the Statutory Instruments Act, all approved regulations must be published in Canada Gazette, Part II, after they are made and registered except where exempted under section 15 of the Statutory Instruments Regulations (C.R.C., c. 1509). A Regulatory Impact Analysis Statement must be included along with all published regulations.

Departments and agencies are responsible for the ongoing management of regulations and their associated programs and activities to improve the effectiveness of regulatory programs in setting and meeting their objectives.

Departments and agencies are responsible for the ongoing management of regulations and their associated programs and activities to improve the effectiveness of regulatory programs in setting and meeting their objectives.

Regulatory program activities could include: compliance and enforcement, inspections and licensing, compliance promotion activities and outreach, data gathering, measuring performance, and providing clear and transparent information and service to Canadians on regulations, and regulatory and legal responsibilities.<blockquote style="background-color: lightgrey; border: solid thin grey;">To encourage compliance with regulations, it is important for departments and agencies to provide the public and regulatees with all relevant information on what is expected of them in a format that is easy to understand.

Regulatory program activities could include: compliance and enforcement, inspections and licensing, compliance promotion activities and outreach, data gathering, measuring performance, and providing clear and transparent information and service to Canadians on regulations, and regulatory and legal responsibilities.

 

To encourage compliance with regulations, it is important for departments and agencies to provide the public and regulatees with all relevant information on what is expected of them in a format that is easy to understand.

 

==== 6.1  Enhancing Predictability ====

==== 6.1  Enhancing Predictability ====

Departments and agencies are responsible for developing, publishing, and reviewing service standards for High Volume Regulatory Transactions that promote the timeliness of decision-making and provide Canadians with clear information on expectations for interactions and service.

Departments and agencies are responsible for developing, publishing, and reviewing service standards for High Volume Regulatory Transactions that promote the timeliness of decision-making and provide Canadians with clear information on expectations for interactions and service.

==== 7.3 Standing Joint Committee for the Scrutiny of Regulations ====

==== 7.3 Standing Joint Committee for the Scrutiny of Regulations ====

Departments and agencies must respond to issues raised by the Standing Joint Committee for the Scrutiny of Regulations (SJCSR) in a timely manner.<blockquote style="background-color: lightgrey; border: solid thin grey;">The Standing Joint Committee for the Scrutiny of Regulations reviews and examines regulations amongst other things to ensure they respect the powers conferred to a regulation-making authority by an Act of Parliament and for matters of related to legal drafting. Every regulation issued is permanently referred to the Standing Joint Committee for review.

Departments and agencies must respond to issues raised by the Standing Joint Committee for the Scrutiny of Regulations (SJCSR) in a timely manner.

The Standing Joint Committee for the Scrutiny of Regulations reviews and examines regulations amongst other things to ensure they respect the powers conferred to a regulation-making authority by an Act of Parliament and for matters of related to legal drafting. Every regulation issued is permanently referred to the Standing Joint Committee for review.

 

=== 8.0 Supporting Policies ===

=== 8.0 Supporting Policies ===

The President of the Treasury Board has the authority to establish policy requirements in support of this Directive. The Secretary of the Treasury Board of Canada has the authority to update references to relevant acts, regulations, policies, guides, and tools, which are incorporated into this Directive’s text and may be amended from time to time.

The President of the Treasury Board has the authority to establish policy requirements in support of this Directive. The Secretary of the Treasury Board of Canada has the authority to update references to relevant acts, regulations, policies, guides, and tools, which are incorporated into this Directive’s text and may be amended from time to time.

The role of the Privy Council Office (PCO) is to assess memoranda to Cabinet and legislative proposals with regard to instrument selection, regulatory implications, and consistency with this Directive and with the Cabinet Directive on Law-making. Under the Statutory Instruments Act, the PCO- OIC also has a number of responsibilities in the regulatory process:

The role of the Privy Council Office (PCO) is to assess memoranda to Cabinet and legislative proposals with regard to instrument selection, regulatory implications, and consistency with this Directive and with the Cabinet Directive on Law-making. Under the Statutory Instruments Act, the PCO- OIC also has a number of responsibilities in the regulatory process:

* '''Examination''': Together with the Department of Justice, examines regulations for any issues and advises the regulation-making authority.

*'''Examination''': Together with the Department of Justice, examines regulations for any issues and advises the regulation-making authority.

* '''Registration''': Within seven (7) days after making a regulation, the regulation-making authority transmits copies of the regulation in both official languages to PCO, which then registers them. PCO can refuse registration if it deems that certain sections of the Statutory Instruments Act were not followed.

*'''Registration''': Within seven (7) days after making a regulation, the regulation-making authority transmits copies of the regulation in both official languages to PCO, which then registers them. PCO can refuse registration if it deems that certain sections of the Statutory Instruments Act were not followed.

* '''Coming into force:''' As normally regulations come into force the day they are registered or later as specified in the regulation, a justification must be provided to PCO for those that are expressed to come into force earlier than the day of registration.

*'''Coming into force:''' As normally regulations come into force the day they are registered or later as specified in the regulation, a justification must be provided to PCO for those that are expressed to come into force earlier than the day of registration.

* '''Quarterly consolidated index of regulations:''' prepares a quarterly consolidated index of all regulations and amendments to regulations in force at any time after the end of the preceding calendar year.

*'''Quarterly consolidated index of regulations:''' prepares a quarterly consolidated index of all regulations and amendments to regulations in force at any time after the end of the preceding calendar year.

* '''Revisions and consolidation:''' after consultation with the Deputy Minister of Justice, can ask regulation-making authorities to revise or consolidate regulations.

*'''Revisions and consolidation:''' after consultation with the Deputy Minister of Justice, can ask regulation-making authorities to revise or consolidate regulations.

=== Department of Justice ===

=== Department of Justice ===