Vol. 150, No. 8 — April 20, 2016

Registration

SOR/2016-65 March 29, 2016

RAILWAY SAFETY ACT

Regulations Amending the Railway Safety Administrative Monetary Penalties Regulations (Grade Crossings Regulations)

P.C. 2016-164 March 24, 2016

His Excellency the Governor General in Council, on the recommendation of the Minister of Transport, pursuant to section 40.1 (see footnote a) of the Railway Safety Act (see footnote b), makes the annexed Regulations Amending the Railway Safety Administrative Monetary Penalties Regulations (Grade Crossings Regulations).

Regulations Amending the Railway Safety Administrative Monetary Penalties Regulations (Grade Crossings Regulations)

Amendments

1 Section 3 of the Railway Safety Administrative Monetary Penalties Regulations (see footnote 1) is replaced by the following:

Designations — orders, rules and emergency directives

3 (1) The following instruments are designated as provisions the contravention of which may be proceeded with as a violation in accordance with sections 40.13 to 40.22 of the Act:

Maximum amounts

(2) The maximum amount payable for a violation referred to in paragraph 1(a) or (b) is $25,000 in the case of an individual and $125,000 in the case of a corporation.

Maximum amounts

(3) The maximum amount payable for a violation referred to in paragraph 1(c) or (d) is $50,000 in the case of an individual and $250,000 in the case of a corporation.

2 Item 17 of Part 1 of Schedule 1 to the Regulations is repealed.

3 The portion of item 19 of Part 1 of Schedule 1 to the Regulations in column 3 is repealed.

4 Item 20 of Part 1 of Schedule 1 to the Regulations is repealed.

5 Schedule 1 to the Regulations is amended by adding the following after Part 4:

PART 5

Designated Provisions of the Grade Crossings Regulations

Item

Column 1



Designated Provision

Column 2

Maximum Amount Payable ($)
Individual

Column 3

Maximum Amount Payable ($)
Corporation

1

Sections 4 and 11

5,000

25,000

2

Sections 5 and 11

25,000

125,000

3

Sections 6 and 11

50,000

250,000

4

Sections 8 and 11

5,000

25,000

5

Sections 9 and 11

50,000

250,000

6

Section 10

5,000

25,000

7

Sections 12 and 18

5,000

25,000

8

Sections 13 and 18

25,000

125,000

9

Sections 14 and 18

50,000

250,000

10

Sections 15 and 18

25,000

125,000

11

Section 17

5,000

25,000

12

Subsection 20(1)

50,000

250,000

13

Subsection 20(2)

50,000

250,000

14

Subsection 20(3)

50,000

250,000

15

Subsections 21(1) and (4)

50,000

250,000

16

Subsections 21(2) and (4)

25,000

125,000

17

Subsections 21(3) and (4)

50,000

250,000

18

Section 23

50,000

250,000

19

Section 24

50,000

250,000

20

Section 25

50,000

250,000

21

Section 26

50,000

250,000

22

Section 27

50,000

250,000

23

Section 28

50,000

250,000

24

Section 29

50,000

250,000

25

Section 31

25,000

125,000

26

Section 32

50,000

250,000

27

Section 33

50,000

250,000

28

Section 34

25,000

125,000

29

Section 35

50,000

250,000

30

Section 36

50,000

250,000

31

Section 38

25,000

125,000

32

Section 39

25,000

125,000

33

Subsection 40(1)

50,000

250,000

34

Subsection 40(2)

50,000

250,000

35

Section 41

50,000

250,000

36

Subsection 42(1)

50,000

250,000

37

Subsection 42(2)

25,000

125,000

38

Subsection 43(1)

50,000

250,000

39

Subsection 43(2)

25,000

125,000

40

Subsection 44(1)

50,000

250,000

41

Subsection 45(1)

50,000

250,000

42

Subsection 45(2)

50,000

250,000

43

Section 46

50,000

250,000

44

Section 48

25,000

125,000

45

Section 49

50,000

250,000

46

Subsection 50(1)

50,000

250,000

47

Subsection 50(2)

25,000

125,000

48

Subsection 51(1)

50,000

250,000

49

Subsection 51(2)

25,000

125,000

50

Subsection 53(1)

50,000

250,000

51

Subsection 53(2)

50,000

250,000

52

Subsection 53(3)

50,000

250,000

53

Section 54

50,000

250,000

54

Subsection 55(1)

50,000

250,000

55

Subsection 55(2)

50,000

250,000

56

Section 56

50,000

250,000

57

Section 57

50,000

250,000

58

Section 58

50,000

250,000

59

Sections 59 and 60

25,000

125,000

60

Sections 59 and 61

50,000

250,000

61

Sections 59 and 62

25,000

125,000

62

Sections 59 and 63

25,000

125,000

63

Section 59 and subsection 64(1)

50,000

250,000

64

Section 59 and subsection 64(2)

50,000

250,000

65

Sections 59 and 65

50,000

250,000

66

Section 59 and subsection 66(1)

50,000

250,000

67

Section 59 and subsection 66(2)

25,000

125,000

68

Section 59 and subsection 67(1)

50,000

250,000

69

Section 59 and subsection 67(2)

25,000

125,000

70

Section 59 and subsection 68(1)

50,000

250,000

71

Section 59 and subsection 68(2)

50,000

250,000

72

Sections 59 and 69

50,000

250,000

73

Sections 59 and 70

50,000

250,000

74

Sections 59 and 71

50,000

250,000

75

Section 72

50,000

250,000

76

Section 73

50,000

250,000

77

Sections 74 and 76

25,000

125,000

78

Sections 74 and 77

50,000

250,000

79

Sections 74 and 78

50,000

250,000

80

Sections 74 and 79

50,000

250,000

81

Section 74 and subsection 80(1)

50,000

250,000

82

Section 74 and subsection 80(2)

25,000

125,000

83

Section 74 and subsection 81(1)

50,000

250,000

84

Section 74 and subsection 81(2)

50,000

250,000

85

Section 75 and subsection 82(1)

50,000

250,000

86

Section 75 and subsection 82(2)

50,000

250,000

87

Sections 75 and 83

50,000

250,000

88

Sections 75 and 84

50,000

250,000

89

Sections 75 and 85

50,000

250,000

90

Section 86

50,000

250,000

91

Subsection 87(1)

50,000

250,000

92

Subsection 87(2)

50,000

250,000

93

Subsection 87(3)

50,000

250,000

94

Subsection 88(1)

50,000

250,000

95

Subsection 88(2)

50,000

250,000

96

Section 89

50,000

250,000

97

Section 90

50,000

250,000

98

Section 91

50,000

250,000

99

Section 92

25,000

125,000

100

Subsection 93(1)

5,000

25,000

101

Subsection 93(2)

50,000

250,000

102

Subsection 93(3)

25,000

125,000

103

Subsection 94(1)

50,000

250,000

104

Subsection 94(2)

50,000

250,000

105

Subsection 94(3)

25,000

125,000

106

Section 95

50,000

250,000

107

Subsection 96(1)

50,000

250,000

108

Subsection 96(2)

50,000

250,000

109

Subsection 96(3)

25,000

125,000

110

Subsection 97(1)

25,000

125,000

111

Subsection 97(2)

50,000

250,000

112

Subsection 98(1)

5,000

25,000

113

Subsection 98(2)

5,000

25,000

114

Subsection 98(3)

5,000

25,000

115

Subsection 98(4)

5,000

25,000

116

Section 99

50,000

250,000

117

Subsection 100(1)

50,000

250,000

118

Subsection 100(2)

50,000

250,000

119

Section 101

50,000

250,000

120

Subsection 102(1)

50,000

250,000

121

Subsection 102(2)

50,000

250,000

122

Paragraph 103(a)

50,000

250,000

123

Paragraph 103(b)

50,000

250,000

124

Paragraph 103(c)

50,000

250,000

125

Paragraph 103(d)

25,000

125,000

126

Section 105

50,000

250,000

127

Section 106

50,000

250,000

128

Section 107

50,000

250,000

129

Section 108

5,000

25,000

130

Subsection 109(1)

5,000

25,000

131

Subsection 109(2)

5,000

25,000

132

Subsection 109(3)

5,000

25,000

133

Subsection 110(1)

25,000

125,000

134

Subsection 110(2)

5,000

25,000

Coming into Force

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

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Issues

The Rail Safety Administrative Monetary Penalties Regulations (the AMPs Regulations), which came into force on April 1, 2015, did not contain designated provisions for the Grade Crossings Regulations (GCRs). Amendments complement the existing railway safety oversight regime by providing a full set of compliance and enforcement tools to the Minister of Transport to effectively deal with safety enforcement. Amendments were also required to address technical concerns raised by the Standing Joint Committee for the Scrutiny of Regulations (SJCSR).

Background

The initial AMPs Regulations were published in the Canada Gazette, Part II, on October 22, 2014, and included designated provisions for the Railway Safety Act (the Act), the 2001 Railway Safety Management System Regulations, the Mining Near Lines of Railways Regulations and the Railway Prevention of Electric Sparks Regulations.

Subsequent amendments to the AMPs Regulations were made in June 2015 following the coming into force of new Railway Safety Act provisions associated with the railway operating certificate in January 2015, and the coming into force of the Railway Safety Management Systems Regulations, 2015, in April.

In May and June 2015, a counsel of the SJCSR raised various points of clarity within the AMPs Regulations and suggested subsequent amendments to the Regulations.

Objectives

The objectives of the amendments are as follows:

Description

The amendments modify Schedule 1 of the AMPs Regulations by adding a new Part 5 that includes the designated provisions for the GCRs.

The schedules prescribe the maximum payable amount for an individual and a company for each violation of a designated provision. There are three distinct maximum payable amounts reflecting the level of significance of each designated provision measured by the seriousness of the consequences or potential consequences of the contravention. The three maximum payable amounts reflect low-risk violations of administrative-type provisions, medium-risk safety violations and major safety violations that pose the highest risk to safety.

The maximum payable amounts for a violation are as follows:

Column 1

Column 2

Column 3

 

Maximum Payable Amount ($)

Maximum Payable Amount ($)

Level of Risk

Individual

Corporation

Category A If violation is low-level risk

5,000

25,000

Category B If violation is medium-level risk

25,000

125,000

Category C If violation is high-level risk

50,000

250,000

Examples of designated provisions of the Grade Crossings Regulations and the maximum payable amounts prescribed include:

Under the Act, any person served with a notice of violation may request from the Transportation Appeal Tribunal of Canada (TATC) a review of an alleged violation and the amount of the penalty. The minister or the person served with a notice of violation may appeal the results of the determination to the TATC for final determination. As a quasi-judicial body, the TATC review process is less formal than court proceedings. Thus, an AMP regime is relatively inexpensive to administer within an existing compliance and enforcement program, and it normally results in more timely and effective enforcement than prosecution.

Following recommendations made by the SJCSR, technical amendments are made to relocate the designation of two instruments, the violation of which is subject to the AMP regime of the Railway Safety Act, from Schedule 1, Part 1 to section 3 of the Regulations. In addition, the maximum penalty for a corporation has been removed from item 19 in Schedule 1, Part 1, as the obligation under subsection 35(3) of the Act can only relate to an individual.

The amendments are technical in nature, and do not affect any of the instruments designated nor the maximum amounts payable for the violation of those instruments.

Consultation

Stakeholders were informed of the Department’s intention to continually amend the AMPs Regulations to reflect new regulatory requirements at the May 28, 2014, meeting of the Advisory Council on Railway Safety. During February and March 2015, Transport Canada consulted with the following stakeholders on the proposed amendments to the Railway Safety Administrative Monetary Penalties Regulations:

As a result of the consultations, Transport Canada received one letter from a municipality that was outside the scope of this regulatory amendment. The municipality acknowledged the overall objective of providing an enforcement tool to improve rail safety. The stakeholder requested that Transport Canada establish a reasonable cost-sharing mechanism to mitigate the additional financial burden of complying with the Grade Crossings Regulations.

The proposed amendments to the Regulations Amending the Railway Safety Administrative Monetary Penalties Regulations (Grade Crossings Regulations) were published in Part I of the Canada Gazette on, June 27, 2015, followed by a 30-day comment period. No comments were received.

The amendments related to the recommendations from the SJCSR are technical and do not impact on stakeholder interests. Therefore, such amendments were not consulted with stakeholders.

“One-for-One” Rule

The “One-for-One” Rule does not apply to this proposal, as there is no change in administrative burden.

Small business lens

The small business lens does not apply to this proposal, as no incremental costs will be imposed on small businesses that comply with the Act and its related instruments.

Rationale

The amendments to the AMPs Regulations address gaps in the AMPs regime by capturing the Grade Crossings Regulations. These amendments complement the existing railway safety oversight regime by providing a full set of compliance and enforcement tools to the Minister of Transport to effectively deal with safety enforcement.

The amendments to the AMPs Regulations benefit the Canadian public by allowing Transport Canada to enforce requirements with respect to the GCRs using an administrative process rather than resorting to prosecution in the courts. Criminal proceedings often result in considerable costs to the federal government and to the individual and/or corporation involved.

All government departments, and more specifically Transport Canada, have adopted what is termed a progressive or graduated approach to the compliance or enforcement activities under their authority. Where AMPs are proposed, they are invariably suggested as a complement or supplement to other compliance and enforcement tools. These amendments expand the application of the Minister of Transport’s compliance and enforcement tools, thereby increasing rail safety and public confidence.

The objectives of the Act include the promotion and provision of safety and security to the public and personnel, the protection of property and the environment in railway operations, the recognition of the responsibility of companies to demonstrate that they continuously manage risks related to safety matters, and the facilitation of a modern, flexible and efficient regulatory scheme that will ensure the continuing enhancement of railway safety and security. The regulatory amendments to amend certain issues identified by the SJCSR serve to clarify the department’s current regulatory authorities. These amendments have no cost to or impact on government policy, industry, or Canadians.

Implementation, enforcement and service standards

The AMP Regulations modify existing Schedule 1 by adding a new Part 5 for the designated provisions for the GCRs, which came into force on November 28, 2014. The amendments to section 3 and Part I, Schedule I are technical in nature and do not change the nature of the AMP Regulations that were implemented in April 2015.

To ensure that AMPs in respect to the new Regulations are applied in a fair, impartial, predictable and nationally consistent manner, guidance materials will be developed to align with rail safety’s existing compliance and enforcement regime. Training will be provided to rail safety officials within existing programs. Adding this guidance to the existing training program will ensure that departmental officials take a standard approach in similar circumstances to achieve consistent results.

Contact

Any questions related to the amendments to the Railway Safety Administrative Monetary Penalties Regulations should be directed to

Susan Archer
Director
Regulatory Affairs
Transport Canada
Telephone: 613-990-8690
Email: susan.archer@tc.gc.ca