Vol. 134, No. 22 — May 27, 2000

Regulations Amending the Income Tax Regulations

Statutory Authority

Income Tax Act

Sponsoring Department

Department of Finance

REGULATORY IMPACT ANALYSIS STATEMENT

Description

These amendments to the Income Tax Regulations (the Regulations) prescribe the automobile deduction limits and benefit rates for 2000. Proposed changes to these limits and rates are announced each year by press release. Department of Finance release 99-108 dated December 13, 1999, contained the announcement of the rates and limits for 2000.

Section 7305.1 of the Regulations applies for the purpose of subparagraph (v) of the description of A in paragraph 6(1)(k) of the Income Tax Act (the Act). These provisions determine the per-kilometre value of the personal benefit that an employee must recognize in computing income if the employee's automobile operating expenses are paid for by the employer. For taxation years ending after 1999, the prescribed rate for employees other than automobile sales and leasing employees is changed from 14 to 15 cents per kilometre. For taxpayers employed principally in selling or leasing automobiles, the prescribed rate is changed from 11 cents to 12 cents per kilometre for taxation years ending after 1999.

Section 7306 of the Regulations applies for the purposes of paragraph 18(1)(r) of the Act to determine the maximum amount deductible by an employer in respect of non-taxable automobile allowances paid by the employer to an employee. The maximum amount is determined by reference to the number of kilometres driven in the year for the purpose of earning income. This amendment to section 7306 increases the per-kilometre limit for kilometres driven after 1999 by 2 cents. For kilometres driven after 1999, the new limits are 37 cents per kilometre for the first 5 000 kilometres and 31 cents for each additional kilometre. An additional 4 cents continues to be allowed for each kilometre driven in the Yukon Territory, the Northwest Territories or Nunavut.

Subsection 7307(1) of the Regulations establishes the capital cost ceiling of passenger vehicles. These amendments increase this maximum amount by $1,000, to $27,000, plus federal and provincial sales taxes, for vehicles acquired after 1999.

Subsection 7307(3) of the Regulations provides a limit on deductible monthly leasing costs. This amount is increased for leases entered into after 1999 from $650 per month to $700 per month plus the amount of federal and provincial sales tax payable on lease payments of $700 per month.

Alternatives

The rate changes described above were selected because they accurately reflect the increased cost per kilometre of operating an automobile and the increased cost of acquiring a vehicle since the rates were last revised. The alternative of leaving the rates the same would fail to reflect these changes. These Regulations are necessary for the administration of the statutory requirements of the income tax system; there is therefore no alternative to proceeding by way of regulation.

Benefits and Costs

The amendment to section 7305.1 of the Regulations increases the per-kilometre rate for determining the personal benefit component for an employee whose automobile operating expenses are paid for by the employer. The amendment to section 7306 increases the amount that may be deducted by a taxpayer in respect of a non-taxable automobile allowance. The amendment to subsection 7307(1) increases the ceiling for the cost of passenger vehicles for capital cost allowance purposes. The amendment to subsection 7307(3) increases the maximum deductible leasing costs in respect of a passenger vehicle.

The amendment to section 7306 is expected to cause a small decrease in federal tax revenue, which is expected to be partially offset by the small increase in federal tax revenue caused by the amendment to section 7305.1. The amendment to subsection 7307(1) is expected to cause a slight decrease in tax revenue. The increase in the limit under subsection 7307(3) is expected to cause a slight decrease in tax revenue.

Taken as a whole, this package is relieving in nature. The net impact of all the changes is expected to reduce revenues to the Government by approximately $40 million annually.

Consultation

The Government receives and considers submissions from the National Association of Fleet Administrators and the Canadian Finance & Leasing Association on the tax treatment of automobile expenses and benefits each year. In addition, these amendments were proposed in Department of Finance news release 99-108 dated December 13, 1999. No negative comments were received following the issuance of that release.

Compliance and Enforcement

The Act provides the necessary compliance mechanisms. It allows the Minister of National Revenue to assess and reassess tax payable, conduct audits and seize relevant records and documents.

Contact

Alexandra MacLean, Tax Legislation Division, Department of Finance, L'Esplanade Laurier Building, 140 O'Connor Street, Ottawa, Ontario K1A 0G5, (613) 995-2980.

PROPOSED REGULATORY TEXT

Notice is hereby given that the Governor in Council, pursuant to section 221(see footnote a) of the Income Tax Act(see footnote b), proposes to make the annexed Regulations Amending the Income Tax Regulations.

Interested persons may make representations with respect to the proposed Regulations within thirty (30) days after the date of publication of this notice. All such representations must cite the Canada Gazette, Part I, and the date of publication of this notice, and be addressed to Alexandra MacLean, Tax Policy Officer, Tax Legislation Division, Tax Policy Branch, Department of Finance, L'Esplanade Laurier, 17^th Floor, East Tower, 140 O'Connor Street, Ottawa, Ontario, K1A 0G5.

Ottawa, May 15, 2000

MARC O'SULLIVAN
Assistant Clerk of the Privy Council

REGULATIONS AMENDING THE INCOME TAX REGULATIONS

AMENDMENTS

1. Paragraphs 7305.1(a) and (b) of the Income Tax Regulations(see footnote 1) are replaced by the following:

(a) if a taxpayer is employed in a taxation year by a particular person principally in selling or leasing automobiles and an automobile is made available in the year to the taxpayer or a person related to the taxpayer by the particular person or a person related to the particular person, 12 cents; and

(b) in any other case, 15 cents.

2. Paragraph 7306(a) of the Regulations is replaced by the following:

(a) the product of 31 cents multiplied by the number of those kilometres;

3. (1) The description of A in paragraph 7307(1)(b) of the Regulations is amended by striking out the word "or" at the end of subparagraph (ii) and by replacing subparagraph (iii) with the following:

(2) Subparagraphs (i) and (ii) of the description of A in paragraph 7307(3)(b) of the Regulations are replaced by the following:

APPLICATION

4. (1) Section 1 applies to taxation years ending after 1999.

(2) Section 2 applies to kilometres driven after 1999.

(3) Section 3 applies after 1999.

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Regulations Amending the Food and Drug Regulations (1202 — Fenhexamid)

Statutory Authority

Food and Drugs Act

Sponsoring Department

Department of Health

REGULATORY IMPACT ANALYSIS STATEMENT

Description

Under authority of the Pest Control Products Act, the Pest Management Regulatory Agency (PMRA), of Health Canada, has approved an application for the registration of the pest control product (pesticide) fenhexamid as a fungicide for the control of Botrytis cinera on grapes and strawberries as a foliar treatment. This proposed regulatory amendment would establish Maximum Residue Limits (MRLs) under the Food and Drugs Act for residues of fenhexamid resulting from this use in grapes, raisins and strawberries, in order to permit the sale of food containing these residues.

Before making a registration decision regarding a new pest control product, the PMRA conducts the appropriate assessment of the risks and value of the product specific to its proposed use. Pest control products will be registered if: the data requirements for assessing value and safety have been adequately addressed; the evaluation indicates that the product has merit and value; and the human health and environmental risks associated with its proposed use are acceptable.

The human health risk assessment includes an assessment of dietary risks posed by expected residues of the pest control product, as determined through extensive toxicological studies. An acceptable daily intake (ADI) and/or acute reference dose (ARD) is calculated by applying a safety factor to a no observable adverse effect level or, in appropriate cases, by applying a risk factor which is calculated based on a linear low-dose extrapolation. The potential daily intake (PDI) is calculated from the amount of residue that remains on each food when the pest control product is used according to the proposed label and the intake of that food from both domestic and imported sources in the diet. PDIs are established for various Canadian subpopulations and age groups, including infants, toddlers, children, adolescents and adults. Provided the PDI does not exceed the ADI or ARD for any subpopulation or age group, and the lifetime risk is acceptable, the expected residue levels are established as MRLs under the Food and Drugs Act to prevent the sale of food with higher residue levels. Since, in most cases, the PDI is well below the ADI and lifetime risks are very low when MRLs are originally established, additional MRLs for the pest control product may be added in the future.

After the review of all available data, the PMRA has determined that MRLs for fenhexamid of 6 parts per million (ppm) in raisins, 4 ppm in grapes and 3 ppm in strawberries would not pose an unacceptable health risk to the public.

Alternatives

Under the Food and Drugs Act, it is prohibited to sell food containing residues of pest control products at a level greater than 0.1 ppm unless a higher MRL has been established in Table II, Division 15, of the Food and Drug Regulations. In the case of fenhexamid, establishment of MRLs for grapes, raisins and strawberries is necessary to support the use of a pest control product which has been shown to be both safe and effective, while at the same time preventing the sale of foods with unacceptable residues.

Benefits and Costs

The use of fenhexamid on grapes and strawberries will provide joint benefits to consumers and the agricultural industry as a result of improved management of pests. In addition, this proposed regulatory amendment will contribute to a safe, abundant and affordable food supply by allowing the importation and sale of food commodities containing acceptable levels of pesticide residues.

The review of the application for registration of fenhexamid was conducted jointly by the PMRA and the United States Environmental Protection Agency. The registration decision was announced jointly on May 14, 1999, and MRLs in grapes, raisins and strawberries have since been established in the United States.

Some costs may be incurred related to the implementation of analytical methods for analysis of fenhexamid in the foods mentioned above. Resources required are not expected to result in significant costs to the government.

Consultation

Registration decisions, including dietary risk assessments, made by the PMRA are based on internationally recognized risk management principles, which are largely harmonized among member countries of the Organization for Economic Cooperation and Development. Individual safety evaluations conducted by the PMRA include a review of the assessments conducted at the international level as part of the Joint Food and Agriculture Organization of the United Nations/World Health Organization Food Standards Programme in support of the Codex Alimentarius Commission, as well as MRLs adopted by other national health/regulatory agencies.

Compliance and Enforcement

Compliance will be monitored through ongoing domestic and/or import inspection programs conducted by the Canadian Food Inspection Agency when the proposed MRLs for fenhexamid are adopted.

Contact

Geraldine Graham, Project Manager, Alternative Strategies and Regulatory Affairs Division, Pest Management Regulatory Agency, Department of Health, Address Locator 6607D1, 2250 Riverside Drive, Ottawa, Ontario K1A 0K9 (613) 7363692 (Telephone), (613) 736-3659 (Facsimile), geraldine_graham @hc-sc.gc.ca (Electronic mail).

PROPOSED REGULATORY TEXT

Notice is hereby given that the Governor in Council, pursuant to subsection 30(1) of the Food and Drugs Act, proposes to make the annexed Regulations Amending the Food and Drug Regulations (1202 — Fenhexamid).

Interested persons may make representations with respect to the proposed Regulations within 60 days after the date of publication of this notice.All such representations must cite the Canada Gazette, Part I, and the date of publication of this notice, and be addressed to Geraldine Graham, Project Manager, Alternative Strategies and Regulatory Affairs Division, Pest Management Regulatory Agency, Department of Health, Address Locator 6607D1, 2250 Riverside Drive, Ottawa, Ontario K1A 0K9. (Tel.: (613) 736-3692; Fax: (613) 736-3659; E-mail: geraldine_ graham@hc-sc.gc.ca)

The representations should stipulate those parts of the representations that should not be disclosed pursuant to the Access to Information Act and, in particular, pursuant to sections 19 and 20 of that Act, the reason why those parts should not be disclosed and the period during which they should remain undisclosed. The representations should also stipulate those parts of the representations for which there is consent to disclosure pursuant to the Access to Information Act.

Ottawa, May 18, 2000

MARC O'SULLIVAN
Assistant Clerk of the Privy Council

REGULATIONS AMENDING THE FOOD AND DRUG REGULATIONS (1202 — FENHEXAMID)

AMENDMENT

1. Table II to Division 15 of Part B of the Food and Drug Regulations(see footnote 2) is amended by adding the following after item F.1:

Item No.	I	II	III	IV
	Common Chemical Name	Chemical Name of Substance	Maximum Residue Limit p.p.m.	Foods
F.1.001	fenhexamid	N- (2,3-dichloro-4-hydroxyphenyl)-1-methylcyclohexane- carboxamide	6	Raisins
			4	Grapes
			3	Strawberries

COMING INTO FORCE

2. These Regulations come into force on the day on which they are registered.

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Criminal Records Regulations

Statutory Authority

Criminal Records Act

Sponsoring Department

Department of the Solicitor General

REGULATORY IMPACT ANALYSIS STATEMENT

Description

Bill C-7 amends the provisions of the Criminal Records Act with respect to pardons and makes minor and technical amendments to that Act.

Bill C-7 will also create a provision in the Criminal Records Act to provide a notation in respect of records of pardoned sex offences in order to allow for disclosure when screening for positions of trust with children and other vulnerable groups. The Regulations elaborate on such details as: specifying the factors to be applied by the Solicitor General in exercising his or her discretion to disclose a record, restricting the further use of the disclosed information, and prescribing the consent form which must be signed by the applicant before screening may proceed.

Alternatives

None. The legislative framework in Bill C-7 requires Regulations to address issues regarding the disclosure of pardoned sex offence records as set out in the above paragraph.

Benefits and Costs

The amendments in Bill C-7 and related Federal Provincial Territorial (FPT) action, as described below under "Consultation," represent a comprehensive and effective approach to promoting public safety. The regulations will set out precisely the safeguards of the "flag" scheme that will ensure the integrity of the pardon process and the considerations relating to disclosure of information. It is expected that there will be limited impact on Department resources.

Consultation

Consultations leading to this Bill began in 1996 when a review of the Criminal Records Act was launched and a discussion paper released. Broad public and intergovernmental consultation have taken place since then. In October 1998, FPT Ministers unanimously approved ten recommendations of a work group of senior officials in a report titled "Information Systems on Sexual Offenders Against Children and Other Vulnerable Groups." Recommendation 7 is being implemented in Bill C-7.

The regulations have been the subject of full and extensive consultation with FPT Justice and Corrections officials and continue to be reviewed and discussed with this group. The House of Commons Standing Committee on Justice and Human Rights and the Senate Standing Committee on Legal and Constitutional Affairs reviewed the regulations as well as the legislation (Bill C-7) that led to their development. Consultations have also been conducted with the Privacy Commissioner and with officials of the Department of Justice and of the agencies of this Department. No major concerns have been identified.

There is support for Bill C-7 and Regulations and in particular, the "flag" scheme as a balanced approach that will improve the safety of children while still protecting the rights of law-abiding ex-offenders. Voluntary sector agencies, in particular, have acknowledged the importance of developing effective screening practices, particularly those with positions of trust and have recognized that Bill C-7 offers further improvements and progress to existing screening systems.

Compliance and Enforcement

This amendment entails no enforcement.

Contact

Cliff Yumansky, Corrections Directorate, Department of the Solicitor General, 340 Laurier Avenue W, Room 11F, Ottawa, Ontario K1A 0P8, (613) 991-5824.

PROPOSED REGULATORY TEXT

Notice is hereby given that the Governor in Council, pursuant to section 9.1(see footnote c) of the Criminal Records Act, proposes to make the annexed Criminal Records Regulations.

Interested persons may make representations with respect to the proposed Regulations within 30 days after the date of publication of this notice. All such representations must cite the Canada Gazette, Part I, and the date of publication of this notice, and be addressed to the Director, Corrections Policy, 340 Laurier Avenue West, Ottawa, Ontario K1A 0P8. (Tel.: (613) 991-2810; fax: (613) 990-8295)

The representations should stipulate those parts of the representations that should not be disclosed pursuant to the Access to Information Act and, in particular, pursuant to sections 19 and 20 of that Act, the reason why those parts should not be disclosed and the period during which they should remain undisclosed. The representations should also stipulate those parts of the representations for which there is consent to disclosure pursuant to the Access to Information Act.

Ottawa, May 18, 2000

MARC O'SULLIVAN
Assistant Clerk of the Privy Council

CRIMINAL RECORDS REGULATIONS

INTERPRETATION

1. The definitions in this section apply in these Regulations.

"Act" means the Criminal Records Act. (Loi)

"children" has the same meaning as in subsection 6.3(1) of the Act. (enfant)

"vulnerable persons" has the same meaning as in subsection 6.3(1) of the Act. (personne vulnérable)

CONSENT FOR VERIFICATION

2. (1) For the purpose of subsection 6.3(3) of the Act, a consent in writing, by an applicant referred to in that subsection, for a member of a police force or other authorized body to verify whether the applicant is the subject of a notation made in accordance with subsection 6.3(2) of the Act must contain

(a) information sufficient to identify the applicant for the purpose of the verification, including the applicant's full name, sex, date of birth, place of birth and address as well as the person's previous addresses, if any, within the last five years;

(b) the name of the person or organization that is responsible for the well-being of one or more children or vulnerable persons and to whom or to which the applicant is making an application for a paid or volunteer position;

(c) a description of that position sufficient to enable a member of a police force or other authorized body to be satisfied that the position is a position of authority or trust relative to those children or vulnerable persons; and

(d) a statement that the applicant understands that, as a result of giving the consent

(2) The consent may be in Form 1 of the schedule.

CONSENT FOR DISCLOSURE

3. (1) For the purpose of subsection 6.3(7) of the Act, a consent in writing by an applicant referred to in that subsection must contain the information referred to in paragraphs 2(1)(a) to (c) and a statement that the applicant understands that, as a result of giving the consent, information contained in a record of any conviction of the applicant for a sexual offence listed in the schedule to the Act shall be disclosed by a police force or other authorized body to the person or organization referred to in that subsection, even though a pardon has been granted or issued for the offence.

(2) The consent may be in Form 2 of the schedule.

CONSIDERATIONS RELATING TO DISCLOSURE OF INFORMATION

4. The Minister must have regard to the following factors in considering whether to authorize a disclosure under the Act of a record of an applicant's conviction for an offence:

(a) the offences for which the applicant has been convicted, including those for which pardons have been granted or issued, and the relevancy of the offences to the purpose for which disclosure is being considered;

(b) the nature of the offences referred to in paragraph (a), including whether the offences involve

(c) the length of time since the applicant committed offences for which pardons have been granted or issued;

(d) the age of the applicant at the time the applicant committed offences for which pardons have been granted or issued; and

(e) the sentences imposed for offences committed by the applicant, including those offences for which pardons have been granted or issued.

COMING INTO FORCE

5. These Regulations come into force on the day on which section 8 of An Act to amend the Criminal Records Act and to amend another Act in consequence, being chapter 1 of the Statutes of Canada, 2000, comes into force.

SCHEDULE
(Subsections 2(2) and 3(2))

FORM 1

CONSENT FOR A CRIMINAL RECORD SEARCH FOR A SEXUAL OFFENCE FOR WHICH A PARDON HAS BEEN GRANTED OR ISSUED

This form is to be used by a person applying for a position with a person or organization responsible for the well-being of one or more children or vulnerable persons, if the position is a position of authority or trust relative to those children or vulnerable persons and the applicant wishes to consent to a search being made in criminal conviction records to determine if the applicant has been convicted of a sexual offence listed in the schedule to the Criminal Records Act and has been pardoned.

Identification of the Applicant

Full name:

Sex:

Date of birth:

Place of birth:

Address:

Previous addresses (if any) within the last five years:

Reason for the Consent

I am an applicant for a paid or volunteer position with a person or organization responsible for the well-being of one or more children or vulnerable persons.

Description of the paid or volunteer position:

Name of the person or organization:

Provide details regarding the children or vulnerable persons:

Consent

I consent to a search being made in the automated criminal records retrieval system maintained by the Royal Canadian Mounted Police to find out if I have been convicted of, and have been granted or issued a pardon for, any of the sexual offences that are listed in the schedule to the Criminal Records Act.

I understand that if, as a result of giving this consent, a search discloses that there is a record of my conviction for one of the sexual offences listed in the schedule to the Criminal Records Act in respect of which a pardon was granted or issued, that record shall be provided by the Commissioner of the Royal Canadian Mounted Police to the Solicitor General of Canada, who may then disclose all or part of the information contained in that record to a police force or other authorized body. That police force or authorized body will then disclose that information to me. If I further consent in writing to disclosure of that information to the person or organization referred to above that requested the verification, that information will be disclosed to that person or organization.

_________________________
(Signature)

FORM 2

CONSENT TO DISCLOSURE OF RECORD

This form is to be used by a person who has consented to a search being made in criminal conviction records by completing the form entitled "Consent for a Criminal Record Search for a Sexual Offence for Which a Pardon Has Been Granted or Issued" and who wishes to consent to the disclosure of information obtained in that search to the person or organization who requested the search.

Identification of Person Consenting

Full name:

Sex:

Date of birth:

Place of birth:

Address:

Previous addresses (if any) within the last five years:

Reason for the Consent

I am an applicant for a paid or volunteer position with a person or organization responsible for the well-being of one or more children or vulnerable persons.

Description of the paid or volunteer position:

Name of the person or organization:

Provide details regarding the children or vulnerable persons:

Consent

I consent to information contained in a criminal record, found as a result of a criminal record search for a sexual offence for which a pardon has been granted or issued, being disclosed by a police force or other authorized body to the person or organization referred to above to whom or to which I am applying or have applied for a paid or volunteer position.

I understand that as a result of giving this consent, that information will be disclosed by the police force or other authorized body to the person or organization, even though a pardon has been granted or issued for the offence.

________________________
(Signature)

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Footnote a

S.C. 1998, c. 19, s. 222

Footnote b

R.S., c. 1 (5th Supp.)

Footnote 1

C.R.C., c. 945

Footnote 2

C.R.C., c. 870

Footnote c

S.C. 2000, c. 1, s. 8

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