Administrative Fines for Rail Safety Breaches

Summary#

The final rule titled Regulations Amending the Railway Safety Administrative Monetary Penalties Regulations (SOR/2024-152) adds new kinds of fines that Transport Canada can use to punish breaches of rail safety and passenger-rail security rules. The rules took effect when published in the Canada Gazette, Part II on July 3, 2024.

What it does#

• Designates 82 provisions so violations can be punished with administrative monetary penalties (AMPs). This includes 3 RSA provisions (under the Railway Safety Act) and 79 PRTSR provisions (under the Passenger Rail Transportation Security Regulations).
• Sets three maximum penalty levels that inspectors can use depending on how serious the breach is:
  • Category A (low risk): up to $5,000 for an individual, $25,000 for a company.
  • Category B (medium risk): up to $25,000 for an individual, $125,000 for a company.
  • Category C (high risk): up to $50,000 for an individual, $250,000 for a company.
• Adds specific RSA provisions about trespassing, giving way at crossings, and cooperating with enforcement officers to the AMP regime.
• Adds many PRTSR requirements (security plans, training, inspections, reporting, exercises) to the AMP regime so passenger and host rail companies can be fined for failures in those areas.
• Requires Transport Canada staff to be trained on using AMPs; 22 inspectors will take refresher training every three years (3.75 hours each). The government estimates a present-value cost of $11,561 to cover refresher training over 2024–2033 (initial training of 7.5 hours was treated as a sunk cost of $11,409).

Who's affected#

• Transport Canada enforcement staff who will use the new AMP tool and complete training.
• Passenger rail companies and host rail companies regulated under the Passenger Rail Transportation Security Regulations.
• Individuals who trespass on railway property or otherwise interfere with rail operations, since certain RSA provisions are now subject to AMPs.
• Railway police and other police remain involved in investigations, but only officers designated by the Minister can issue AMPs.
• The Canada-wide rail industry and communities near rail lines — the rule changes apply across federally regulated rail operations.

If it is unclear who will be affected in a particular case, the regulations say Transport Canada will apply AMPs based on the specific provision violated and the circumstances.

Why it matters#

• AMPs give regulators a middle option between a warning and criminal prosecution. That makes it easier and faster to punish and deter unsafe or unlawful behaviour on or near railways without going to court.
• The change is aimed at reducing trespassing, tampering, vandalism, and other security incidents that can threaten public safety, the environment, rail workers, and passengers.
• Penalties can be substantial — up to $250,000 for companies for the most serious breaches — so rail operators and individuals may face meaningful financial consequences.
• Industry raised worries about consistency and overuse of AMPs during consultations. Transport Canada says it will use a graduated approach and provide guidance, but the final rules were adopted without change.