Order Fixing July 1, 2023 as the Day on which Section 15 of the Strengthening Motor Vehicle Safety for Canadians Act Comes into Force: SI/2023-21
Canada Gazette, Part II, Volume 157, Number 14
Registration
SI/2023-21 July 5, 2023
STRENGTHENING MOTOR VEHICLE SAFETY FOR CANADIANS ACT
Order Fixing July 1, 2023 as the Day on which Section 15 of the Strengthening Motor Vehicle Safety for Canadians Act Comes into Force
P.C. 2023-658 June 23, 2023
Her Excellency the Governor General in Council, on the recommendation of the Minister of Transport, under section 19 of the Strengthening Motor Vehicle Safety for Canadians Act, chapter 2 of the Statutes of Canada, 2018, fixes July 1, 2023 as the day on which section 15 of that Act comes into force.
EXPLANATORY NOTE
(This note is not part of the Order.)
Proposal
This Order in Council, pursuant to section 19 of Bill S-2, An Act to amend the Motor Vehicle Safety Act and to make a consequential amendment to another Act, chapter 2 of the Statutes of Canada, 2018, fixes July 1, 2023, as the day on which section 15 of that Act comes into force.
Objective
The objective of this Order is to fulfill the Government’s commitment to promote and help ensure compliance with vehicle product safety requirements and standards set out in the Motor Vehicle Safety Act (MVSA) and its associated regulations by enabling the implementation of an Administrative Monetary Penalty (AMPs) regime.
Background
The MVSA is the federal statute that regulates the manufacture and importation of motor vehicles and motor vehicle equipment to reduce the risk of death, injury and damage to property and the environment.
In 2018, the Government of Canada amended the MVSA under Bill S-2, An Act to amend the Motor Vehicle Safety Act and to make a consequential amendment to another Act, to strengthen the enforcement and compliance regime to further protect the safety of Canadians and to provide additional flexibility to support advanced safety technologies and other vehicle innovations.
When Bill S-2 was introduced, the MVSA had limited enforcement tools to encourage compliance from companies. The only enforcement option available to Transport Canada at that time was criminal prosecution, which can be a time-consuming and lengthy process.
The Government of Canada introduced amendments to the MVSA to enable an AMPs regime that will help encourage compliance from companies as an efficient, effective, and less costly alternative to criminal prosecution.
AMPs allow federal enforcement officers to tailor enforcement to the seriousness of the violation, through the issuance of monetary penalties, as an alternative to recommending prosecution, against anyone found to have violated requirements. AMPs allow a person found to have violated requirements to pay the penalty without having to appear in court and without the potential legal ramifications of a criminal record or imprisonment. AMPs help to bring regulated entities into compliance while minimizing the regulatory burden on Canadians and industry.
The amendments to the MVSA in section 15 of An Act to amend the Motor Vehicle Safety Act and to make a consequential amendment to another Act provide the Governor in Council with the authority to make regulations to establish AMPs for the contravention of designated provisions of the MVSA and/or regulations and orders made pursuant to the MVSA. These amendments to the MVSA set the maximum amount payable for any AMP as not more than $4,000, in the case of an individual, and not more than $200,000, in the case of a corporation or company.
Section 15 of An Act to amend the Motor Vehicle Safety Act and to make a consequential amendment to another Act, was not brought into force when Bill S-2 received royal assent as the related Administrative Monetary Penalties (Motor Vehicle Safety) Regulations were needed to implement the AMPs regime under the MVSA. To that end, the Administrative Monetary Penalties (Motor Vehicle Safety) Regulations, were prepublished in the Canada Gazette, Part I, on May 7, 2022.
Implications
The Order fixes July 1, 2023, as the day on which section 15 of An Act to amend the Motor Vehicle Safety Act and to make a consequential amendment to another Act comes into force. Together with the Administrative Monetary Penalties (Motor Vehicle Safety) Regulations, this Order will strengthen the enforcement and compliance regime under the MVSA to further protect the safety of Canadians. The MVSA AMPs regime, which will be enabled by the Order, is expected to promote compliance with motor vehicle and equipment requirements and standards, thereby helping to ensure the overall safety of motor vehicles and related equipment on Canadian roads.
The Administrative Monetary Penalties (Motor Vehicle Safety) Regulations will come into force on the 90th day after the day on which they are published in the Canada Gazette, Part II. This will provide stakeholders with sufficient time to familiarize themselves with the new AMPs regime, which will be available for use to enforcement officers as soon as the Regulations are in force.
This Order and the Administrative Monetary Penalties (Motor Vehicle Safety) Regulations will bring the MVSA enforcement and compliance regime for motor vehicles and related equipment into alignment with other Transport Canada programs. For example, AMPs are used to enforce Transport Canada programs in the air, marine, and rail modes of transportation under the Aeronautics Act, the Marine Transportation Security Act, and the Railway Safety Act.
Consultation
The automotive industry, public safety organizations, provinces and the territories, and the general public have been consulted about the Government’s intention to establish an AMPs regime under the MVSA.
Public consultations were held before and during the legislative process for Bill S-2. Several witnesses appeared before the Standing Senate Committee on Transport and Communications or the Standing Committee on Transport, Infrastructure and Communities in 2017 to provide input on Bill S-2. No substantive concerns about the amendments to the MVSA required to establish an AMPs regime under the MVSA were raised by stakeholders during the bill stage.
Furthermore, Transport Canada conducted extensive consultations with implicated stakeholders on the Administrative Monetary Penalties (Motor Vehicle Safety) Regulations, which will bring the AMPs regime into effect. As noted above, these Regulations were pre-published in the Canada Gazette, Part I, on May 7, 2022, and open for public comment for 75 days.
Contact
Kyle Hendershot
Senior Regulatory Development Engineer
Standards and Regulations
Multi-Modal and Road Safety Programs
Transport Canada
330 Sparks Street
Ottawa, Ontario
K1A 0N5
Email: RegulationsClerk-ASFB-Commisauxreglements@tc.gc.ca