Regulation - LGIC
Proposed Approach for Regulations under the Building Ontario Businesses Initiative Act, 2022
Regulation Number(s):
422/23
Instrument Type:
Regulation - LGIC
Bill or Act:
Building Ontario Businesses Initiative Act, 2022
Summary of Decision:
A regulation was made under the Building Ontario Businesses Initiative Act, 2022 (BOBIA) to prescribe the circumstances in which public sector entities are required to give preference to Ontario businesses when conducting procurement processes for goods and services under specified threshold amounts.
The regulation:
• governs when a business is considered an "Ontario business" for the purpose of the Act
• specifies which goods and services are covered by the Act and under what threshold amounts
• specifies which goods and services are exempted from the requirements of the Act
• governs the thresholds amounts under which preference is to be given to Ontario businesses
• specifies two methods to use in giving Ontario businesses a preference when conducting a procurement for goods and services under the governing thresholds.
Feedback received from the public on the regulatory approach was suitably incorporated to level the playing field for Ontario businesses in procurement opportunities with value below the specified threshold amounts.
The regulation comes into effect on April 1, 2024.
The regulation:
• governs when a business is considered an "Ontario business" for the purpose of the Act
• specifies which goods and services are covered by the Act and under what threshold amounts
• specifies which goods and services are exempted from the requirements of the Act
• governs the thresholds amounts under which preference is to be given to Ontario businesses
• specifies two methods to use in giving Ontario businesses a preference when conducting a procurement for goods and services under the governing thresholds.
Feedback received from the public on the regulatory approach was suitably incorporated to level the playing field for Ontario businesses in procurement opportunities with value below the specified threshold amounts.
The regulation comes into effect on April 1, 2024.
Analysis of Regulatory Impact:
The regulation provides for the circumstances for which public sector entities are required to give preference to Ontario business when conducting procurement processes.
Anticipated Costs
Regulated broader public sector entities may incur one-time administrative costs associated primarily with costs for staff to learn about the regulation and to update internal policy or guidance materials to incorporate the requirements stipulated in the regulation.
Anticipated Benefits
The regulation would enable Ontario businesses to have greater access to procurement opportunities and contribute to their growth. In the longer term, a strong domestic market fosters a successful and resilient supply chain for Ontario.
The goal of this Act will see the government targeting to spend at least $3 billion in contracts awarded to Ontario businesses through to 2026, further creating economic opportunity for Ontarians.
Anticipated Costs
Regulated broader public sector entities may incur one-time administrative costs associated primarily with costs for staff to learn about the regulation and to update internal policy or guidance materials to incorporate the requirements stipulated in the regulation.
Anticipated Benefits
The regulation would enable Ontario businesses to have greater access to procurement opportunities and contribute to their growth. In the longer term, a strong domestic market fosters a successful and resilient supply chain for Ontario.
The goal of this Act will see the government targeting to spend at least $3 billion in contracts awarded to Ontario businesses through to 2026, further creating economic opportunity for Ontarians.
Further Information:
Building Ontario Businesses Initiative Act, 2022, S.O. 2022, c. 2, Sched. 2
Ontario Regulation 422/23
Proposal Number:
23-TBS002
Posting Date:
December 22, 2023
Summary of Proposal:
The government is committed to supporting Ontario businesses and intends to create a level playing field that reduces barriers and provides them with greater access to procurement opportunities with public sector entities, contributing to their growth to build their competitiveness for the global market.
Under the Building Ontario Businesses Initiative Act, 2022, public sector entities are required to give preference to Ontario businesses, in accordance with the regulations, when conducting procurement processes for prescribed goods and services at the value of which are under the prescribed threshold amounts.
The government of Ontario is considering making regulations to prescribe the circumstances in which public sector entities are required to give preference to Ontario businesses:
• governing when a business is considered to be an "Ontario business" for the purpose of the Act.
• prescribing the types of goods and services
• prescribing the threshold amounts
• specifying the manner in which preference is to be given to Ontario businesses
See attached for the proposed approach and inputs sought.
Under the Building Ontario Businesses Initiative Act, 2022, public sector entities are required to give preference to Ontario businesses, in accordance with the regulations, when conducting procurement processes for prescribed goods and services at the value of which are under the prescribed threshold amounts.
The government of Ontario is considering making regulations to prescribe the circumstances in which public sector entities are required to give preference to Ontario businesses:
• governing when a business is considered to be an "Ontario business" for the purpose of the Act.
• prescribing the types of goods and services
• prescribing the threshold amounts
• specifying the manner in which preference is to be given to Ontario businesses
See attached for the proposed approach and inputs sought.
Contact Address:
222 Jarvis Street, 8th floor,
Toronto ON M7A 0B6
Toronto ON M7A 0B6
Effective Date:
April 1, 2024
Decision:
Approved