Administrative fines for rail safety breaches

Summary#

This is a proposed change (published July 2, 2022) that would let Transport Canada use administrative monetary penalties (AMPs) to enforce some parts of the Railway Safety Act and the Passenger Rail Transportation Security Regulations. In practice it would add 81 provisions to the AMP regime, create three penalty levels (up to $250,000 for companies), and is estimated to cost the government $25,015 (present value) for training over 2022–2031.

What it does#

• Adds AMPs as an enforcement option for violations of selected provisions in the Railway Safety Administrative Monetary Penalties Regulations.
• Designates a total of 81 provisions for AMP enforcement:
  • 3 provisions of the Railway Safety Act (including trespassing, interference with operations, and cooperation with enforcement officers).
  • 78 provisions of the Passenger Rail Transportation Security Regulations (covering items like security coordinators, security inspections, reporting, plans, training and exercises).
• Sets three risk-based penalty categories with maximum amounts:
  • Category A (low risk): $5,000 (individual) / $25,000 (corporation)
  • Category B (medium risk): $25,000 / $125,000
  • Category C (high risk): $50,000 / $250,000
• Clarifies some operational details from the proposal:
  • Only enforcement officers designated by the Minister would issue AMPs.
  • An AMP must be issued no later than 12 months after the subject matter arose, and payment must be made within 30 days of a notice.
• Expected administrative change for inspectors:
  • 24 existing inspectors would take an initial one-day (7.5 hours) training and a half-day (3.75 hours) refresher every three years.
  • The training cost to government is estimated at $25,015 (present value) over 2022–2031.
• This item was published as a proposal and invited comments within 30 days of the notice.

Who's affected#

• Passenger rail companies and host companies regulated under the Passenger Rail Transportation Security Regulations.
• Federally regulated railway companies and individuals whose actions interfere with rail operations (for example, trespassers).
• Transport Canada enforcement staff (about 24 inspectors) who would use the new tool and receive training.
• Local or railway police likely involved in investigations, although the proposal says only Minister-designated enforcement officers can issue AMPs.
• If you work for or run a passenger or host rail company, or live near rail infrastructure, you are more likely to notice the change.

Why it matters#

• AMPs give regulators a middle option between a simple warning and a criminal prosecution. That means faster, administrative penalties instead of going to court in many cases.
• The change is aimed at deterring trespassing, vandalism, interference with trains, and lapses in passenger-rail security practices. That can affect public safety and protect rail infrastructure and nearby communities.
• For companies, AMPs can mean significant fines (up to $250,000). That could push operators to improve security planning, training, inspections, and reporting.
• The government estimates modest training costs ($25,015 PV). It did not monetize the safety benefits and said those benefits are expected but uncertain.
• Stakeholders raised concerns about possible overuse and a shift away from collaborative approaches; Transport Canada says it will take a graduated and consistent enforcement approach and that decisions can be reviewed by the Transportation Appeal Tribunal of Canada.