Regulation - LGIC

Proposed Amendments to O. Reg 137/15

Regulation Number(s):
Ontario Regulation 137/15
Instrument Type:
Regulation - LGIC
Bill or Act:
Child Care and Early Years Act, 2014
Summary of Decision:
O. Reg. 137/15 was amended to support implementation of the Canada-wide Early Learning and Child Care (CWELCC) agreement with the federal government and enable the next child care fee reduction. Effective January 1, 2025, a maximum daily fee of $22 will apply to spaces for eligible children aged 0-5 in child care where the licensee is enrolled in the CWELCC system.

In addition, regulatory amendments were made to support greater transparency for families by requiring child care licensees to add fee payment information and circumstances in which refunds or credits will or will not be provided to their parent handbook. Minor technical amendments were also made to address outdated references in the regulation.

When proposing new regulations under the CCEYA, the Ministry of Education is required to post a description of the proposed regulation on Ontario's Regulatory Registry and allow for public comment on the proposal for at least 45 days. These amendments were posted for public comment on the Regulatory Registry in August 2024.

The amended regulations will come into force on January 1, 2025.

Analysis of Regulatory Impact:
The amended regulation would require some licensed child care programs to reduce their fees. However, funding will be provided to directly support the operational costs of child care businesses thereby offsetting the impact of any decreased fees. Licensees who choose not to participate in the CWELCC system will not be impacted by these requirements.

There are minimal direct compliance costs associated with the new regulations as licensees will need to make some administrative changes (e.g. update parent handbook). This will be offset by the removal of regulatory requirements that are no longer needed as well as funding to support the operational costs of businesses that are required to reduce their fees.
Further Information:
Proposal Number:
24-EDU014
Posting Date:
August 15, 2024
Summary of Proposal:
Canada-wide Early Learning and Child Care (CWELCC) System

In March 2022, Ontario signed an agreement with the federal government that will lower licensed child care fees for eligible children in participating programs to an average of $10 per day by the end of fiscal year 2025-2026.

As part of the agreement, the Province has been lowering daily fees through a phased approach:

• In spring 2022, child care fees for eligible children in participating programs were reduced by up to 25%, retroactive to April 1, 2022.
• Effective December 31, 2022, child care fees for eligible children in participating programs were further reduced to an average of 50% (relative to 2020 levels), bringing the provincial average fee to $23 per day.

An additional fee reduction is planned for January 1, 2025. Unlike the previous two fee reductions, the current proposal would not require participating licensees to reduce fees by a specified percentage amount. Instead, a maximum daily fee would be set out under the regulation:

• Any CWELCC-enrolled licensee charging higher than this maximum amount would be required to reduce their fees.
• Any CWELCC-enrolled licensee already charging lower than the maximum daily fee would be required to maintain their current fees.
• Any new licensee enrolling in the CWELCC system for the first time would be required to set fees at or below the maximum prescribed amount, after discussing what the amount would be with their service system manager.

Given this shift in approach, consequential amendments would be made to any provisions in the regulations that reference the previous approach to fee reduction (i.e., reducing fees by percentages).

To support greater transparency for parents, the ministry is also proposing to require licensees to add to their parent handbook information about:

• Their fee payment approach (for example, that licensees accept the following as payment: e-transfers, cheques, etc.)
• Their fee payment schedule (for example, parents are to pay on a weekly, monthly, per "semester" or "term" basis, etc.)
• Circumstances in which refunds or credits will or will not be provided

Miscellaneous and Technical

The ministry is also proposing a number of minor or technical amendments, including:

• Revoking section 73 of the regulation which states that no licensee shall require as a condition of providing care for a child at a child care centre or with a home child care agency it operates a prior consent from a parent of the child to the release of information with respect to the child. This provision is a relic from the predecessor legislation to the CCEYA - the Day Nurseries Act - and is no longer necessary.
• Updating references to the Building Code which has a new regulation number as of April 2024.
• Substituting the reference to the Boys and Girls Clubs of Canada in the regulation with the new name of the organization (BGC Canada).

Burden Reduction

As outlined in the Province's 2023 Burden Reduction Report: Delivering better services and a stronger economy, the Ontario government is eliminating burdens and supporting the people and businesses of Ontario.

As the CCEYA is entering its tenth year of being in force, the ministry is seeking feedback on the following questions:

• Which requirements under the CCEYA, if any, are duplicative? In other words, do identical/similar requirements/rules exist somewhere else?

• What, if any, are the opportunities to simplify existing requirements under the CCEYA?

• What requirements under the CCEYA, if any, are outdated and no longer necessary? For example, parents can determine if a program is licensed by looking up the program on the Ministry of Education's "Find Licensed Child Care" website AND by seeing whether a copy of a child care licence and a decal (i.e., sticker) is posted at the premises. Are both approaches necessary?

• What requirements under the CCEYA, if any, are unclear or overly prescriptive?

Conclusion

All interested parties are encouraged to provide feedback on the proposed regulatory amendments and discussion questions.

The CCEYA requires that these comments and submissions be considered before the proposed regulations are made. However, please note that you will not receive a formal response from the ministry to any feedback received.
Contact Address:
Ministry of Education
c/o Early Years and Child Care Division
315 Front Street West, 11th Floor
Toronto ON M7A 0B8
Effective Date:
January 1, 2025
Decision:
Approved