FEDERAL REG

SOR/2016-226: Agriculture and Agri-Food Administrative Monetary Penalties Regulations — Regulations Amending Agriculture and Agri-Food Administrative Monetary Penalties Act

REGISTRATION OF FEDERAL REGULATION - VIA PART II OF THE GAZETTE

Registered
August 2, 2016


REGULATORY IMPACT ANALYSIS STATEMENT (This statement is not part of the Regulations.) Issues New requirements for the identification and movement of pigs have been set out in the Health of Animals Regulations (HAR) and amendments to the Agriculture and Agri-Food Administrative Monetary Penalties Regulations (the Regulations) are required to provide persons designated by the Canadian Food Inspecti... (Click for more)


House

1st Reading 2nd Reading 3rd Reading

Senate

1st Reading 2nd Reading 3rd Reading

Published on August 2, 2016

Bill Summary

SOR/2016-226: Agriculture and Agri-Food Administrative Monetary Penalties Regulations — Regulations Amending Agriculture and Agri-Food Administrative Monetary Penalties Act

REGULATORY IMPACT ANALYSIS STATEMENT (This statement is not part of the Regulations.) Issues New requirements for the identification and movement of pigs have been set out in the Health of Animals Regulations (HAR) and amendments to the Agriculture and Agri-Food Administrative Monetary Penalties Regulations (the Regulations) are required to provide persons designated by the Canadian Food Inspection Agency (CFIA) and the Canada Border Services Agency (CBSA) with authority to issue notices of violation in the event of non-compliance with those new requirements. Also, there are instances where there is a lack of clarity and consistency between the English and French versions of the Regulations, inconsistency between the Agriculture and Agri-Food Administrative Monetary Penalties Act (the Act) and the Regulations, drafting and typographical errors, duplication of authorities in the Regulations already provided in the Act and more than one violation designated in relation to a single provision. Background The purpose of the Act is to establish, as an alternative to the penal system and as a supplement to other enforcement measures, a fair and efficient administrative monetary penalty system for the enforcement of the agri-food acts and their respective regulations. The Act provides persons designated by CFIA and CBSA with the authority to respond to violations listed in the regulations and establishes an alternative compliance mechanism to the penal system. The Act and the Regulations provide for the issuance of two types of notices of violation to regulated parties: a notice of violation with warning and a notice of violation with penalty. The Act sets out the maximum monetary penalty amount for each classification level (i.e. minor, serious, very serious), and the Regulations define the actual monetary penalty amount within each classification level for each specific violation. Administrative monetary penalties are a sanctions regime that authorizes the issuance of notices of violation in the form of warnings or monetary penalties by persons designated by an enforcement body in response to a violation of a statutory or regulatory requirement. It is designed to promote compliance with legislation and can address a range of compliance issues ranging from violations that are relatively minor to more severe. In July 2014, the HAR were amended to include pig identification and movement reporting requirements, and for farmed wild boars the following year. Amendments to the Regulations are now required to allow the persons designated by the CFIA to issue notices of violation to enforce the new provisions respecting those pig traceability requirements. The amendments also address recommendations made by the Standing Joint Committee for the Scrutiny of Regulations (SJCSR). Objectives The objectives of these regulatory amendments are to expand the application of the Regulations to include violations related to pig identification and movement reporting requirements under the HAR to provide options for addressing non-compliance; improve clarity and consistency of the Regulations; and position persons designated by CFIA and CBSA to continue to issue notices of violation to encourage compliance with the relevant statutory or regulatory provisions. Description Amendments are being made to enable the use of administrative monetary penalties for recently added provisions to the HAR regarding pig identification and movement reporting requirements. Also, to prevent operators at the destination site being subject to an enforcement action under the Act in this situation, the violation of receiving animals not bearing an approved tag will no longer be subject to a notice of violation through the amendments. The other regulatory amendments are modifications that respond to recommendations made by the SJCSR to address a number of discrepancies between the English and French regulatory text, to correct inconsistent terminology and typographical errors, address duplicate authorities between the Act and the Regulations, and improve the clarity and consistency of the Regulations. These amendments will also change the regulatory text to specify a single violation for each provision listed in Schedule 1 to the Regulations. This is accomplished by condensing provisions with multiple short-form descriptions into one and assigning a single classification of violation. For example, in Schedule 1, Part 1, Division 2 to the Regulations, it currently indicates under the description of item 111 that (a) it is a serious violation to “import used beehives;” and that (b) it is a minor violation to “import used beehive equipment.” The amendments will stipulate that it is a serious violation to “import used beehive or beehive equipment.” “One-for-One” Rule The “One-for-One” Rule does not apply to these amendments, as there are no associated administrative costs or savings. Small business lens The small business lens does not apply to these amendments, as there are no costs to small business. Consultation The amendments to the HAR relating to violations of the pig identification and movement reporting requirements were made in consultation with pig producers as represented by the Canadian Pork Council (CPC). The CPC was also informed of the enforcement activities including activities resulting from the amendments to the Regulations. The CPC was further advised that enforcement would commence at least one year after the coming into force of the pig traceability provisions under the HAR in July 2014. This information was relayed by the CPC to the pig producers and affected stakeholders in the provinces. Since the majority of the other amendments are minor in nature, do not impact the intent of the Regulations and do not have any impact on stakeholders, CFIA did not conduct public consultation. Rationale Administrative monetary penalties provide persons designated by an enforcement body with an alternative enforcement measure to promote compliance that is less burdensome than the penal system. These amendments are necessary to support persons designated by CFIA and CBSA with the capability to issue notices of violation in the event of non-compliance. The failure to comply with an act or regulations compromises the public policy objectives of the legislation. Non-compliance must, therefore, be addressed to promote important societal, economic and environmental objectives. While a number of enforcement options exist for CFIA and CBSA intervention, such as a corrective action request, suspension or revocation of a license and prosecution in the courts, administrative monetary penalties provide additional flexibility in managing non-compliance and provide further incentive for businesses or individuals to comply with statutory and regulatory requirements. Moreover, an administrative monetary penalty acts as a financial disincentive to rule-breaking. Penalties create a level playing field by exposing all regulated parties to the same level of enforcement response for similar types of non-compliance. The Regulations are an enforcement tool and, as such, regulated parties only incur additional costs if they violate regulatory provisions. Amendments to the Regulations are required to allow the persons designated by CFIA to issue notices of violation to enforce the provisions in the HAR added in 2014 for pig traceability requirements. The other regulatory amendments in this package are minor modifications and editorial changes to address recommendations made by the SJCSR. There are other minor amendments included to improve consistency between the English and French versions of the Regulations and with other regulations administered and enforced by CFIA. The amendments to the Regulations will provide persons designated by CFIA and CBSA with the regulatory authority needed to respond to instances of non-compliance. Implementation, enforcement and service standards These amendments to the Regulations come into force upon registration. The amendments to the Regulations stemming from the HAR amendments will allow persons designated by CFIA to issue notices of violation of reporting requirements with respect to the identification and movement of pigs. These amendments will not create any compliance requirements in addition to the ones created by the July 2014 HAR amendments relating to pig traceability. The amendments to the Regulations will continue to allow persons designated by CFIA and CBSA to issue notices of violation for non-compliance with the acts and regulations for which violations are designated in the Regulations. Administrative monetary penalties are intended to address non-compliance in areas in which letters of non-compliance or corrective action requests are not enough, but where prosecution, seizure, or license suspension or revocation are not considered appropriate. In addition, the Regulations permit CFIA to enter into compliance agreements with persons who commit violations, and allow for a reduction, in whole or in part, of an administrative monetary penalty if the persons agree to take appropriate steps to support future compliance with the relevant statutory or regulatory requirements and correct the violation. Appeal mechanisms are also available pursuant to the Act and the Regulations to persons that have been issued a notice of violation. Contacts Mark Burgham Director Program Policy Integration Division Program, Regulatory and Trade Policy Directorate Canadian Food Inspection Agency 1400 Merivale Road, Tower 1 Ottawa, Ontario K1A 0Y9 Telephone: 613-773-6533 Fax: 613-773-5617 Email: [email protected] Tracey Boyd-Brown Director Regulatory, Legislative, Economic Affairs Division Program, Regulatory and Trade Policy Directorate Canadian Food Inspection Agency 1400 Merivale Road, Tower 1 Ottawa, Ontario K1A 0Y9 Telephone: 613-773-5521 Fax: 613-773-5692 Email: [email protected] Footnote a S.C. 2012, c. 24, s. 99 Footnote b S.C. 1995, c. 40 Footnote 1 SOR/2000-187; SOR/2003-257, s. 1

This Bill does not amend any statutes.

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