C-2124162-63-64Elizabeth II2013-2014-2015An Act to control the administrative burden that regulations impose on businessesRed Tape Reduction ActRed Tape Reduction20264
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R-4.512201590720PreambleWhereas Canadians and small businesses have expressed concerns about how the increased administrative burden imposed by regulations has affected the cost of doing business;Whereas on April 1, 2012 the Government of Canada established a rule that each increase in the administrative burden on businesses must be offset with a corresponding decrease, one-for-one, and considers that it is desirable to establish that rule in legislation;Whereas the one-for-one rule must not compromise public health, public safety or the Canadian economy;Whereas the Government of Canada recognizes the importance of being transparent with regard to the implementation of the one-for-one rule;And whereas the Government of Canada recognizes the importance of facilitating, in a transparent manner, the design, modification or administration of regulatory regimes to encourage innovation, competitiveness or economic growth while protecting public health and safety and the environment;2015, c. 12, Preamble2026, c. 3, s. 203Now, therefore, Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:Short Title
Short titleThis Act may be cited as the Red Tape Reduction Act.
Control of Administrative BurdenInterpretation, Application and Purpose
DefinitionsThe following definitions apply in this Part.administrative burden means anything that is necessary to demonstrate compliance with a regulation, including the collecting, processing, reporting and retaining of information and the completing of forms. (fardeau administratif)business means a person or entity that engages in commercial activities in Canada, other than for a public purpose.  (entreprise)regulation means an instrument that is registered as a regulation under section 6 of the Statutory Instruments Act. (règlement)2015, c. 12, s. 22026, c. 3, s. 205
ApplicationThis Part applies to regulations made by or with the approval of the Governor in Council, the Treasury Board or a minister of the Crown.2015, c. 12, s. 32026, c. 3, s. 206
PurposeThe purpose of this Part is to control the administrative burden that regulations impose on businesses.2015, c. 12, s. 42026, c. 3, s. 206
Rule
Control of administrative burdenIf a regulation is made that imposes a new administrative burden on a business, one or more regulations must be amended or repealed to offset the cost of that new burden against the cost of an existing administrative burden on a business.Repeal of regulationIf a regulation is made  —  other than one that only amends a regulation  —  that imposes a new administrative burden on a business, a regulation must be repealed, unless one has already been repealed in accordance with subsection (1).
Policies and directivesThe President of the Treasury Board may establish policies or issue directives respecting the manner in which section 5 is to be applied.
RegulationsThe Governor in Council may, for the purpose of section 5, make regulations respectingthe manner of calculating the cost of an administrative burden;the period within which measures must be taken to comply with that section;the taking into account of regulations that are amended or repealed before a new administrative burden is imposed;the application of that section to any regulation made, amended or repealed on or after April 1, 2012; andthe regulations that the Treasury Board may exempt from the application of that section and the categories for which, and the circumstances in which, such an exemption may be granted.
General
ImmunityNo action or other proceeding may be brought against His Majesty in right of Canada for anything done or omitted to be done, or for anything purported to be done or omitted to be done, under this Part.Validity of regulationsNo regulation is invalid by reason only of a failure to comply with this Part.2015, c. 12, s. 82026, c. 3, s. 207
Annual Report
Report  — application of section 5The President of the Treasury Board must prepare and make public each year a report on the application of section 5 during the 12-month period ending on March 31 of the year in which the report is to be made public.
RegulationsThe Governor in Council may make regulations respecting the information to be included in the report and respecting the report’s form.
Exemptions to Encourage Innovation, Competitiveness or Economic GrowthDefinitions
DefinitionsThe following definitions apply in this Part.entity includes an individual, a corporation, a partnership, an unincorporated association or organization and His Majesty in right of Canada or of a province. (entité)excluded Act means the Access to Information Act, the Auditor General Act, the Canada Elections Act, the Conflict of Interest Act, the Criminal Code, the Export and Import Permits Act, the Financial Administration Act, the Foreign Influence Transparency and Accountability Act, the Investment Canada Act, the Lobbying Act, the Nuclear Safety and Control Act, the Privacy Act, the Proceeds of Crime (Money Laundering) and Terrorist Financing Act or the Public Servants Disclosure Protection Act. (loi exclue)2015, c. 12, s. 112026, c. 3, s. 208
Exemptions
OrderSubject to subsections (3) and (7), a minister may, by order, for a specified validity period of not more than three years and on any terms that the minister considers appropriate, exempt an entity from the application ofa provision of an Act of Parliament, except an excluded Act, if the minister is responsible for the Act;a provision of an instrument made under an Act of Parliament, except an instrument made under an excluded Act, ifthe minister is responsible for the Act, orthe body that made the instrument is accountable, through the minister, to Parliament for the conduct of its affairs; ora provision of an Act of Parliament, except an excluded Act, or a provision of an instrument made under an excluded Act, if the minister administers or enforces the provision.Requests not required to be consideredSubject to section 12.1, a minister is not required to consider a request for an exemption.ConditionsA minister may make an order under subsection (1) only ifthe minister is of the opinion thatthe exemption is in the public interest,the exemption would enable the testing of, among other things, a product, service, process, procedure or regulatory measure with the aim of facilitating the design, modification or administration of a regulatory regime to encourage innovation, competitiveness or economic growth in the clean technology or financial technology sector,the benefits associated with the exemption outweigh the risks,sufficient resources exist, and appropriate measures will be taken, to maintain oversight of the testing, manage any risks associated with the exemption and protect public health and safety and the environment, anda feasible implementation plan has been developed;the minister has engaged in a public consultation process for at least 30 days with stakeholders, including experts and entities in the relevant sector; andthe President of the Treasury Board has approved the exemption.Exemption continues in forceFor greater certainty, an exemption granted under subsection (1) continues in force until the end of the validity period specified in the order even if the testing referred to in subparagraph (3)(a)(ii) is completed before the end of that period.Amendment or extensionSubject to subsection (8), a minister who has made an order under subsection (1) may, by order and on any terms the minister considers appropriate, amend it or extend the validity period of the exemption for a total period not exceeding six years only if the minister is of the opinion thatthe conditions set out in subparagraphs (3)(a)(i) and (iii) are met;the amended exemption or extension would enable the testing referred to in subparagraph (3)(a)(ii) to continue or, if such testing is already complete, would facilitate the design, modification or administration of a regulatory regime as a result of that testing;sufficient resources exist, and appropriate measures will be taken, to maintain oversight of any continuing testing, manage any risks associated with the amended exemption or extension, and protect public health and safety and the environment; anda feasible implementation plan has been developed that takes into account the amendment or extension.Revocation or suspensionA minister who has made an order under subsection (1) may, by order, revoke it or suspend its application in whole or in part.Two or more ministersIf, under subsection (1), two or more ministers may, by order, exempt the same entity from the application of the same provision, the entity may be exempted only if the ministers jointly make an order under that subsection with respect to the entity and provision.Two or more ministers — amendment, extension, revocation and suspensionThe following provisions apply if, in accordance with subsection (7), two or more ministers have jointly made an order:the order may be amended only if the ministers jointly make an amending order under subsection (5);the validity period of the exemption may be extended only if the ministers jointly make an extension order under subsection (5); andthe order made under subsection (1) is revoked or its application is suspended, in whole or in part, if one of the ministers makes a revocation or suspension order, as the case may be, under subsection (6).Statutory Instruments ActAn order made under this section is not a statutory instrument within the meaning of the Statutory Instruments Act.2026, c. 3, s. 208
Order — entities operating in same sectorThe following provisions apply if an order is made under subsection 12(1) that grants an exemption to an entity that is a business or a commercial entity:the exemption granted in the original order must also be granted — by order under that subsection and for the same validity period — to any other entity that is a business or commercial entity that operates in the same sector if the minister or ministers who made the original order are of the opinion that the conditions in paragraph 12(3)(a) are met; andif an order is made under subsection 12(1) with respect to the other entity referred to in paragraph (a), and the original order is subsequently amended or the validity period of the exemption granted by that order is extended by a minister or ministers, the minister or ministers must grant the same amendment or extension, by order under subsection 12(5), to that other entity if the minister or ministers are of the opinion that the conditions in that subsection are met.2026, c. 3, s. 208
Exemptions under other ActsFor greater certainty, the power to make an order under section 12 does not preclude or limit the exercise of a power to exempt under another Act of Parliament and vice versa.2026, c. 3, s. 208
Transparency and Parliamentary Oversight
AccessibilitySubject to subsections (2) and (3), a minister must, as soon as feasible but no later than 30 days after making an order under section 12, make the order and the following information publicly accessible:a description of the decision-making process and a summary of the reasons for the order; anda description of the process for providing comments or information to, or requesting information from, the minister in relation to the order.ExceptionThe minister may exclude information that, in the minister’s opinion, would be inappropriate to make publicly accessible for reasons that include safety or security considerations or the protection of confidential or personal information.Two or more ministers — accessibilityIf two or more ministers have jointly made an order in accordance with subsection 12(7) or (8), each of them must make publicly accessible the order and the same information under paragraphs (1)(a) and (b), with the same exclusions, if any, under subsection (2).2026, c. 3, s. 208
Canada GazetteSubject to subsections (2) and (3), a minister must, within 30 days after the day on which they made an order under section 12, publish in the Canada Gazette the order and the information referred to in paragraphs 14(1)(a) and (b).ExceptionThe minister may exclude information that, in the minister’s opinion, would be inappropriate to publish for reasons that include safety or security considerations or the protection of confidential or personal information.Two or more ministers — publicationIf two or more ministers have jointly made an order in accordance with subsection 12(7) or (8), only one of them is required to publish the order and the information referred to in paragraphs 14(1)(a) and (b).2026, c. 3, s. 208
Report — ministerSubject to subsections (3) and (4), a minister must, within 90 days after the day on which they made an order under section 12, cause to be tabled a report in each House of Parliament and must, on request, appear before the appropriate committee of Parliament to explain the decision-making process and the reasons for the order.Contents of reportThe report must contain the order, the information referred to in paragraph 14(1)(a) and an assessment of any provision of an Act of Parliament, or of an instrument made under an Act of Parliament, that could be amended or repealed to encourage innovation, competitiveness or economic growth in the clean technology or financial technology sector.ExceptionThe minister may exclude information that, in the minister’s opinion, would be inappropriate to include in the report for reasons that include safety or security considerations or the protection of confidential or personal information.Two or more ministers — reportIf two or more ministers have jointly made an order in accordance with subsection 12(7) or (8), only one of them is required to table the report and appear before the appropriate committee of Parliament.2026, c. 3, s. 208
ReportSubject to subsection (2), the President of the Treasury Board must prepare and make public each year a report on the application of section 12 during the 12-month period ending on March 31 of the year in which the report is to be made public. The report must include a list of the orders made under section 12 that were in effect during that period and the names of the ministers who made them.ExceptionThe President of the Treasury Board is not required to prepare a report if no orders made under section 12 were in effect during the period referred to in subsection (1).TablingThe President of the Treasury Board must cause the report referred to in subsection (1) to be laid before each House of Parliament on any of the first 15 days on which that House is sitting after the day on which the report is made public.Referral to CommitteeThe report must be referred to the Standing Committee on Government Operations and Estimates of the House of Commons or, if there is not a Standing Committee on Government Operations and Estimates, the appropriate committee of the House of Commons.2026, c. 3, s. 208
AMENDMENTS NOT IN FORCE — 2018, c. 12, s. 257
The first paragraph of the French version of the preamble to the Red Tape Reduction Act is replaced by the following:que les Canadiens et les petites entreprises ont exprimé des préoccupations devant l’incidence de l’augmentation du fardeau administratif imposé par règlement sur le coût des affaires;The second paragraph of the preamble to the Act is replaced by the following:Whereas on April 1, 2012 the Government of Canada established a rule that each increase in the administrative burden that is imposed by regulations on businesses must be offset with a corresponding decrease, one-for-one, and considers that it is desirable to establish that rule in legislation;Whereas the one-for-one rule should take into account regulatory cooperation between the Government of Canada and other jurisdictions;
 — 2018, c. 12, s. 258
The definition administrative burden in section 2 of the Act is replaced by the following:administrative burden means anything that is necessary to demonstrate compliance with a regulation or a regulatory instrument, including the collecting, processing, reporting and retaining of information and the completing of forms. (fardeau administratif)Section 2 of the Act is amended by adding the following in alphabetical order:other jurisdiction meansa province;a municipality in Canada or a municipal or other public body performing a function of government in Canada;a foreign state or a subdivision of a foreign state; andan international organization, or association, of states. (autre autorité)regulatory instrument means an instrument that is issued, made or established in the exercise of a legislative power conferred under the legislation of any other jurisdiction. (texte réglementaire)
 — 2018, c. 12, s. 260
Subsection 5(1) of the English version of the Act is replaced by the following:
Control of administrative burdenIf a regulation is made that imposes a new administrative burden on a business, one or more regulations must be amended or repealed to offset the cost of that new burden against the cost of an existing administrative burden imposed by a regulation on a business.
 — 2018, c. 12, s. 261
The Act is amended by adding the following after section 5:
Offset — regulatory cooperationDespite subsection 5(1), the cost of all or a portion, as the case may be, of a new administrative burden imposed by a regulation on a business may, with the approval of the Treasury Board, be offset against the cost of all or a portion, as the case may be, of an existing administrative burden imposed by a regulatory instrument on a business ifthe administrative burden imposed by the regulatory instrument is reduced or eliminated as a result of the making, amendment or repeal of the regulatory instrument; andthat making, amendment or repeal takes place after the coming into force of this section and is the result of an agreement — between the Government of Canada or any of its institutions and the other jurisdiction that made, amended or repealed the regulatory instrument — relating to the promotion of cooperation in the design, monitoring, enforcement or review of regulations and that other jurisdiction’s regulatory instruments.
 — 2018, c. 12, s. 262
Sections 6 and 7 of the Act are replaced by the following:
Policies and directivesThe President of the Treasury Board may establish policies or issue directives respecting the manner in which sections 5 and 5.1 are to be applied.
RegulationsThe Governor in Council may make regulations respectingthe manner of calculating, for the purpose of section 5 or 5.1, the cost of an administrative burden;the periods within which measures must be taken to comply with section 5;the periods within which the cost of all or a portion of a new administrative burden imposed by a regulation may be offset under section 5.1;the taking into account of regulations that are amended or repealed — or regulatory instruments that are made, amended or repealed — before a new administrative burden is imposed by a regulation;the application of section 5 to any regulation made, amended or repealed on or after April 1, 2012;the application of section 5.1 to any regulation made or amended before the day on which that section comes into force; andthe regulations that the Treasury Board may exempt from the application of section 5 and the categories for which, and the circumstances in which, such an exemption may be granted.
 — 2018, c. 12, s. 263
Section 9 of the Act is replaced by the following:
Report — application of sections 5 and 5.1The President of the Treasury Board must prepare and make public each year a report on the application of sections 5 and 5.1 during the 12-month period ending on March 31 of the year in which the report is to be made public.
2026, c. 32026-03-26