Bill S-7, An Act to modernize certain regulatory and administrative processes, would amend many existing federal laws; it would not create one new program. Its proposed alternative short title is the Cutting Red Tape for All Canadians Act. Its stated goal is to modernize and simplify regulatory and administrative processes; that goal is not a guaranteed result. These are proposed changes, not provisions in force.
Agricultural marketing boards and certain provincial administrative bodies would gain specified powers over interprovincial and export trade when named in a schedule. The Agriculture Minister would maintain that schedule; limits apply, including limits tied to province and production, with a special rule for milk quotas.
Federal agencies and ministers would gain authority to administer and enforce more laws electronically. Regulations could require some people to use electronic systems or make payments electronically; automated systems could make decisions under some laws.
The bill would create an administrative monetary penalty system under the Explosives Act, with maximum penalties of $25,000 for an individual and $250,000 for others. It would also expand monetary penalties under environmental and marine laws.
The Transport Minister could make temporary airport-area zoning orders restricting some land uses or development. The bill says affected people are not entitled to compensation for loss, damage, removal or alteration resulting from zoning rules or orders.
The bill would create a new, streamlined insolvency proposal process for eligible small businesses that are corporations, and a summary bankruptcy process for some small-business bankruptcies. Eligibility depends in part on amounts and conditions to be set by regulation.
Other changes include removing age limits for members of two federal agricultural bodies, authorizing new marine-security orders and directions, and allowing time-limited exemptions from some border-program rules.
Farmers, marketing boards and provincial administrative bodies: A listed board could impose levies or charges on people producing or marketing covered products, and use the money for board purposes, including expenses and equalizing producers’ returns. Charges could be recovered as debts. Boards and administrative bodies must make their requirements and other measures accessible; those measures are not enforceable during any period they are not accessible. The bill limits which people and products the powers cover, with a distinct rule for milk produced under a quota.
Businesses and people dealing with federal agencies: Electronic administration would be permitted for several laws. Regulations could require electronic submissions or payments in specified circumstances. The bill does not itself set all those requirements or create an intake or appeal process for every electronic decision.
Explosives businesses and individuals: A violation could lead to a monetary penalty, with review rights and possible compliance agreements. Due diligence (taking reasonable steps to prevent a violation) is not a defence under this scheme. The Governor in Council would set which violations qualify and the penalty amounts, within the stated maximums.
Marine operators, vessels and ports: The Transport Minister could issue emergency directions lasting up to 72 hours, and interim orders that may last longer if extended. People and vessels subject to them must comply. The bill also sets serious offence penalties; for some offences, individuals could face fines up to $1 million and up to five years in prison, and corporations up to $2 million. Some violations could instead carry administrative penalties.
People who own or develop land near airports: A zoning order could restrict certain uses or development for up to three years, unless it ends earlier. Existing uses and structures that do not conform are generally exempt under the bill’s terms. The bill provides no compensation for losses caused by a zoning rule or order.
Small incorporated businesses in financial trouble: An eligible business could seek a small business proposal, subject to creditor and court processes set out in the bill. The process includes a trustee’s investigation and monitoring, creditor participation, and rules for employee and Crown claims. Some details, including eligibility limits, would depend on future regulations.
The bill does not provide a total cost, staffing plan or estimate of the costs to businesses and other affected people.
Several changes depend on future regulations, including eligibility and asset limits for small-business insolvency procedures, and which conduct attracts some penalties.
For electronic administration, later rules could require electronic submissions or payments. The bill does not specify who would be required to use those systems or all available alternatives.
The bill does not explain how its new exemptions for border-program rules would work in practice beyond setting conditions and a maximum five-year term. The Minister need not consider exemption requests.
Several provisions start only on a day set by the Governor in Council. The material does not state when those provisions would start.
The bill appears intended to make government processes easier to administer, including by allowing electronic communications and simplifying some reporting or publication requirements.
A possible argument for the small-business insolvency procedures is that they offer eligible corporations a separate process, with creditor protections and trustee oversight, rather than requiring every case to use the same process.
Requiring agricultural boards to make their rules accessible could help affected producers and businesses know what measures apply to them.
Temporary marine-security orders and directions could give the Minister tools to respond quickly to a threat or risk, while the bill includes time limits and publication or notice requirements.
The bill gives ministers and officials significant discretion, including powers over emergency marine directions, exemptions from border rules and restrictions on land near airports. Some decisions could have major effects before ordinary regulations or processes apply.
The bill does not provide cost estimates or explain how agencies will manage added responsibilities. Future regulations will determine important details in several areas.
The airport zoning provisions allow restrictions without compensation for resulting loss or damage. That could leave affected landowners bearing costs.
The small-business insolvency process is detailed, but its practical reach depends on eligibility limits and other rules that are not included here. Some protections also come with strict payment, reporting and compliance conditions.