Red Tape Reduction Act

Whereas Canadians and small businesses have expressed concerns about how the increased administrative burden imposed by regulations has affected the cost of doing business;Whereas on April 1, 2012 the Government of Canada established a rule that each increase in the administrative burden on businesses must be offset with a corresponding decrease, one-for-one, and considers that it is desirable to establish that rule in legislation;Whereas the one-for-one rule must not compromise public health, public safety or the Canadian economy;Whereas the Government of Canada recognizes the importance of being transparent with regard to the implementation of the one-for-one rule;And whereas the Government of Canada recognizes the importance of facilitating, in a transparent manner, the design, modification or administration of regulatory regimes to encourage innovation, competitiveness or economic growth while protecting public health and safety and the environment;Now, therefore, Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:

Short Title

Part 1 · Control of Administrative Burden

Rule

General

Annual Report

Part 2 · Exemptions to Encourage Innovation, Competitiveness or Economic Growth

Amendments not in force

— 2018, c. 12, s. 257The first paragraph of the French version of the preamble to the Red Tape Reduction Act is replaced by the following:que les Canadiens et les petites entreprises ont exprimé des préoccupations devant l’incidence de l’augmentation du fardeau administratif imposé par règlement sur le coût des affaires;The second paragraph of the preamble to the Act is replaced by the following:Whereas on April 1, 2012 the Government of Canada established a rule that each increase in the administrative burden that is imposed by regulations on businesses must be offset with a corresponding decrease, one-for-one, and considers that it is desirable to establish that rule in legislation;Whereas the one-for-one rule should take into account regulatory cooperation between the Government of Canada and other jurisdictions; — 2018, c. 12, s. 258The definition administrative burden in section 2 of the Act is replaced by the following:administrative burden means anything that is necessary to demonstrate compliance with a regulation or a regulatory instrument, including the collecting, processing, reporting and retaining of information and the completing of forms. (fardeau administratif)Section 2 of the Act is amended by adding the following in alphabetical order:other jurisdiction meansa province;a municipality in Canada or a municipal or other public body performing a function of government in Canada;a foreign state or a subdivision of a foreign state; andan international organization, or association, of states. (autre autorité)regulatory instrument means an instrument that is issued, made or established in the exercise of a legislative power conferred under the legislation of any other jurisdiction. (texte réglementaire) — 2018, c. 12, s. 260Subsection 5(1) of the English version of the Act is replaced by the following:If a regulation is made that imposes a new administrative burden on a business, one or more regulations must be amended or repealed to offset the cost of that new burden against the cost of an existing administrative burden imposed by a regulation on a business. — 2018, c. 12, s. 261The Act is amended by adding the following after section 5:Despite subsection 5(1), the cost of all or a portion, as the case may be, of a new administrative burden imposed by a regulation on a business may, with the approval of the Treasury Board, be offset against the cost of all or a portion, as the case may be, of an existing administrative burden imposed by a regulatory instrument on a business ifthe administrative burden imposed by the regulatory instrument is reduced or eliminated as a result of the making, amendment or repeal of the regulatory instrument; andthat making, amendment or repeal takes place after the coming into force of this section and is the result of an agreement — between the Government of Canada or any of its institutions and the other jurisdiction that made, amended or repealed the regulatory instrument — relating to the promotion of cooperation in the design, monitoring, enforcement or review of regulations and that other jurisdiction’s regulatory instruments. — 2018, c. 12, s. 262Sections 6 and 7 of the Act are replaced by the following:The President of the Treasury Board may establish policies or issue directives respecting the manner in which sections 5 and 5.1 are to be applied.The Governor in Council may make regulations respectingthe manner of calculating, for the purpose of section 5 or 5.1, the cost of an administrative burden;the periods within which measures must be taken to comply with section 5;the periods within which the cost of all or a portion of a new administrative burden imposed by a regulation may be offset under section 5.1;the taking into account of regulations that are amended or repealed — or regulatory instruments that are made, amended or repealed — before a new administrative burden is imposed by a regulation;the application of section 5 to any regulation made, amended or repealed on or after April 1, 2012;the application of section 5.1 to any regulation made or amended before the day on which that section comes into force; andthe regulations that the Treasury Board may exempt from the application of section 5 and the categories for which, and the circumstances in which, such an exemption may be granted. — 2018, c. 12, s. 263Section 9 of the Act is replaced by the following:The President of the Treasury Board must prepare and make public each year a report on the application of sections 5 and 5.1 during the 12-month period ending on March 31 of the year in which the report is to be made public.