Regulation - LGIC

Proposed Regulatory Amendments to the Modernizing Ontario for People and Businesses Act, 2020

Regulation Number(s):
O. Reg. 555/20
Instrument Type:
Regulation - LGIC
Bill or Act:
Modernizing Ontario for People and Businesses Act, 2020
Summary of Decision:
The proposed regulatory amendments to the Modernizing Ontario for People and Businesses Act, 2020 (MOPBA) to make more of the Regulatory Impact Analysis (RIA) publicly available, enhance offsetting requirements by requiring direct compliance costs to be offset by direct compliance cost savings, and establish two new offsetting exemption categories were approved.
Analysis of Regulatory Impact:
The proposed regulatory amendments are applicable only to ministries within the Ontario government and will impose no compliance costs on for-profit businesses, not-for-profit organizations, or the broader public sector.
The proposed regulatory amendments are also not expected to result in any additional costs to government. Individual ministries would be responsible for implementing the new requirements (e.g., identifying and calculating new direct compliance costs). While the proposed amendments may require some additional staff time in affected ministries, each ministry will be expected to handle any additional costs within existing allocations.
The Ministry of Economic Development Job Creation and Trade (MEDJCT)/Small Business and Red Tape Reduction (SBRTR) would be responsible for training and tracking ministries' compliance with the new requirements. This work will be managed within existing budget allocations.

No new administrative cost for regulated entities.

The proposed regulatory amendments are expected to further burden reduction efforts. The proposed offsetting expansion will require ministries to better control the net costs associated with regulations by offsetting direct compliance costs with direct compliance costs rather than administrative cost to direct compliance cost.
Controlling for costs and cutting red tape contributes to:
• More effective, transparent, and accountable regulatory processes;
• Stimulating growth for business and other regulated entities, including not-for-profit organizations; and
• Creating new and better jobs for Ontarians.
Further Information:
Proposal Number:
Posting Date:
April 30, 2021
Summary of Proposal:
MEDJCT/SBRTR is working with government ministries to lower business costs and help stimulate productivity and growth by removing unnecessary regulatory requirements.

The regulatory amendments are designed to support the burden reduction and regulatory modernization work ministries are undertaking to boost Ontario's competitiveness and keep good jobs in the province, while also maintaining or enhancing policies that protect our environment and keep us safe and healthy. This work is even more important as businesses work to survive and recover during the COVID-19 pandemic. Approved regulatory amendments to O. Reg. 555/20 under MOPBA are listed below.

Making the RIA more publicly available: Ministries will now be required to publish both benefits and all associated costs (administrative costs in addition to other types of direct compliance costs).

Addition of two new offsetting exemption categories:
• If a proposal is related to urgent matters affecting health, safety, or the environment; and
• If offsetting would cause a ministry undue hardship.

Aligning the regulatory requirements with the new legislative requirements: Legislative amendments were approved in June 2021 with an effective date of July 1, 2021. These requirements set out the framework for enhanced offsetting requirements including offsetting all direct compliance costs created by new government requirements with direct compliance costs.

Please see the attachment below for additional details on the approved regulatory amendments.
Contact Address:
Ministry of Economic Development, Job Creation and Trade
Policy Planning and Development Unit
2 Queen Street East
Toronto, Ontario
M5C 3G7
Effective Date:
July 1, 2021