2018 Burden Reduction Report: Building a better business climate for Ontario

A personal message from the Premier

Government does not create the good jobs that help families get ahead and make Ontario the economic engine of Canada. Businesses create those jobs, and it is government’s job to create the right conditions for businesses to thrive. Everyone in my government wants Ontario businesses to succeed — and we know they can’t if hampered by unclear, outdated, costly and complicated government regulations.

Regulations are a fact of life in the modern economy and can serve important purposes. But we cannot allow outdated or redundant regulations to hold businesses back. We take this responsibility seriously. That’s why we have been implementing our plan to alleviate the regulatory burden and give businesses the freedom and support they need to grow. This 2018 edition of the Burden Reduction Report takes stock of the progress we’ve made in modernizing the province’s regulatory environment and in helping businesses increase profitability.

The good news is that Ontario’s focus on regulatory modernization is continuing to pay dividends to business. This year our red tape reduction efforts saved businesses 1.4 million hours and $43 million in costs. In addition, we’ve launched 16 new red tape reduction initiatives to boost business productivity and success. Other initiatives — including the passing of the Cutting Unnecessary Red Tape Act, 2017 and ongoing consultations with the public through the Red Tape Challenge — are also playing a vital role in providing new competitive advantages to our province’s businesses.

I want to thank everyone who has helped us make this progress.

Our plan for care and opportunity during these turbulent times depends on businesses being able to do what they do best — grow, create jobs and drive the economy. And with the partnerships we’ve built to cut red tape, that’s exactly what our businesses are doing.

Kathleen Wynne
Premier

A personal message from the Minister

Ontario remains committed to modernizing our regulatory system — challenging the way new regulations are developed, reducing regulatory burdens and streamlining existing processes while continuing to protect the public interest. These improvements are protecting workers, consumers and the environment while helping businesses grow and succeed.

The Burden Reduction Report highlights strategic initiatives from across government that achieve many of our modernization goals. These initiatives make it easier for businesses to understand regulations and compliance, harmonize the rules to help businesses compete with other jurisdictions, and make Ontario a more attractive and innovative place to do business.

When the government passed the Burden Reduction Reporting Act in 2014, we increased government transparency by reporting annually on the province’s burden reduction initiatives. At that time, we set a goal of saving businesses and external stakeholders $100 million by the end of 2017. This year, we are reporting a total of over $43 million and 1.4 million hours saved, as well as 16 new burden reduction initiatives launched in this report. Overall, we have saved Ontario businesses and other stakeholders about $195 million and 7.9 million hours in total since 2011 — almost doubling our initial $100 million target.

Last year, our government also passed Bill 154, the Cutting Unnecessary Red Tape Act, to save businesses more time and money. This included the new Reducing Regulatory Costs for Business Act, which includes among others a requirement for all government ministries to reduce regulatory costs for business by providing $1.25 in cost savings for every dollar in administrative costs added. In addition, more than 40 different statutes were amended.

As well, the Red Tape Challenge, launched under the province’s Business Growth Initiative, has seen ministries taking concrete actions to address regulatory issues flagged by the public. So far, the challenge has focused on the financial services, mining and chemical manufacturing sectors.

While this report marks the end of our $100 million savings target, we will continue to press forward with dedication towards regulatory reform. We are excited to lead the next round of reporting and work with our partners to implement the next set of targets to reduce burdens on business and other stakeholders. We will continue to work together to create a robust and modernized regulatory environment, reduce trade barriers, attract investment and help create a more innovative and prosperous Ontario.

Sincerely,

Steven Del Duca
Minister

We exceeded expectations — and we are still forging ahead

The Ontario government has long been committed to reducing unnecessary regulatory burdens for businesses — and the numbers speak for themselves.

Eclipsing our targets

Our long-term goal was to save $100 million by the end of 2017. It would be an understatement to say we surpassed that target. By 2017, the burden reduction initiatives had yielded total savings of $151.6 million and 6.5 million hours.

Savings initiatives summary

Total cumulative savings since 2011*

* Numbers may not add up due to rounding.

For this year’s report, we are pleased to announce a total of $43.3 million saved, 1.4 million hours saved from 17 quantified initiatives.

Adding this year’s figures to our cumulative totals, since 2011, we have saved Ontario businesses and other stakeholders a grand total of approximately $195 million and 7.9 million hours — almost doubling our initial $100 million target.

We have reason to be proud, but not to rest. We are moving forward with continued energy and dedication to continue identifying regulations in need of revamping.

A short history of regulatory innovation

In 2014, the Ontario government passed the Burden Reduction Reporting Act, 2014 to increase government transparency by reporting annually on the province’s burden reduction initiatives. The same year, the Ministry of Economic Development and Growth (MEDG) set the goal of achieving $100 million in savings by the end of 2017.

Businesses of all sizes as well as citizens and other stakeholders welcomed the news of Ontario’s plans to reduce the regulatory burden, but it was particularly good news for small-and medium-sized enterprises (SMEs). More than 99 per cent of all businesses in Ontario are SMEs, and given their size, they sometimes struggle to find the resources to cope with burdensome regulations. Reducing the burden is critical to their ability to grow and succeed.

But it’s a delicate balancing act. When designed and put into operation properly, regulations play an important role in ensuring public health and safety. They protect workers, consumers and the environment. But they don’t need to be overly burdensome to achieve their goals. Regulations that are unclear, outdated, costly or overly complicated need to be reviewed with an eye for streamlining while continuing to protect the public interest. Ontario remains committed to modernizing its regulatory system — challenging the way new regulations are created and reducing existing regulatory burdens.

The initiatives presented in this year’s report achieve many of the above modernization goals. Themes that come up repeatedly among burden reduction initiatives include going digital, simplifying or streamlining processes, and modernizing or harmonizing rules and regulations.

These initiatives make it clear that our efforts are helping to make Ontarians’ lives easier while saving businesses time and money.

The road ahead

This report marks the end of our $100 million savings target, and celebrates our achievements to date. We are excited about developing the next set of targets and participating in the next round of reporting. We will continue the important work of streamlining regulations to reduce the regulatory burden and make a clear, positive difference for businesses.

Business Growth Initiative update

The Business Growth Initiative (BGI) is an economic strategy to support Ontario’s transition to a knowledge-based, innovation-driven economy that thrives on the initiative, creativity, education and skills of its people. In 2016, the province announced that through the BGI, it would spend $400 million over five years to:

• make the economy more innovative
• help scale up small businesses into medium-sized and large enterprises so they can compete internationally
• modernize the regulatory environment to reduce the administrative burden and the cost of doing business

Modernizing the regulatory environment includes lowering compliance costs and regulatory costs. To that end, the BGI also includes the Red Tape Challenge and the Regulatory Centre of Excellence — two tools that are making it easier to do business in Ontario.

The Business Growth Initiative in 2017

In its 2017 Budget, the province bolstered the BGI with an additional $250 million, and announced plans to expand its investment to support research and development in next-generation technologies, including:

• 5G (fifth-generation wireless technology) to increase telecommunications network capacity and speed
• Quantum technologies to facilitate application-based research and commercialization
• Advanced computing to support related operating costs, new research projects and better coordination
• Autonomous vehicles to capitalize on their economic potential and help Ontario’s infrastructure adapt
• Artificial intelligence to produce, attract and retain top talent and generate investment in this field

The budget also included support for a new $4 million cyber security pilot project intended to reduce risks, strengthen financial institutions and create new technology jobs.

The Red Tape Challenge

Now approaching its third year, Ontario’s Red Tape Challenge is an innovative online platform that has its sights trained squarely on the province’s most unclear, outdated, redundant and costly regulations. The platform aims to identify and streamline them so they won’t slow down Ontario’s businesses or economy.

Taking up the challenge

The Red Tape Challenge consists of consultation rounds targeted at specific industries. Each round concludes by reporting on steps the Ontario government will take to cut red tape and modernize regulations. Reports so far have focused on the:

• auto parts manufacturing sector
• food processing sector
• financial services sector
• mining sector

Between them, these reports identified more than 230 steps the province could take to help businesses run more smoothly.

Upcoming reports

The next report, anticipated in fall 2018, will be based on consultations with the tourism sector, which were open from February 1 to March 31, 2018.

Many of the regulations that are up for consultation in these sectors affect all aspects of our economy, so we continue to encourage businesses and individuals to participate in the reviews, regardless of what sector they mainly work in. The Ontario government will review all submissions, and publish Ontario’s plan to address any identified issues within six months of the end of each consultation round.

The Red Tape Challenge is evidence of the government’s commitment to transparency and timely action — and it is moving forward with impressive momentum.

The Regulatory Centre of Excellence

The Regulatory Centre of Excellence is intended to champion best practices related to regulatory quality, simplicity, alternatives to regulation and cost-benefit analysis.

It is helping Ontario ministries shift from a traditional regulatory approach to a more balanced one with a view to lightening burdens for businesses without compromising public policy goals.

Supporting Ontario ministries

For the Ontario government, designing smart, modern, efficient regulation means focusing on user needs. It means a switch from asking, “What do we need businesses to do?” to “How can we make it easier for businesses to comply?”

The Regulatory Centre of Excellence began working to achieve these goals in 2016 and has already made significant progress. For example, in 2017, the Centre:

• Organized the Smart Moves conference in partnership with the Institute of Public Administration of Canada
• Advised ministries on best practices and modern regulatory principles and offered technical support on regulatory impact analyses
• Fostered a network of regulatory experts across the Ontario public service
• Built strong interjurisdictional partnerships, such as with the Community of Federal Regulators

Legislative steps to reduce regulatory burden

Cutting Unnecessary Red Tape Act, 2017

As noted in last year’s report, the Ontario government established a commitment to introduce annual burden reduction legislation, and on March 22, 2017, the first annual bill toward that end received Royal Assent: the Burden Reduction Act, 2017 made 150 changes to 50 different statutes across 11 ministries to reduce regulatory burdens and practices that cost businesses time and money while protecting environmental and health standards and enhancing worker safety.

The government built on this commitment by introducing Bill 154, the Cutting Unnecessary Red Tape Act, 2017 (CURT), which received Royal Assent on November 14, 2017 and amended more than 40 different statutes. Highlights of CURT include:

1. Implementing a number of recommendations from the Business Law Advisory Council to update and reform Ontario’s corporate and commercial law statutes
2. Amending the Land Registration Reform Act to allow electronic registration of survey plans to reduce the burden on land surveyors
3. Proposing changes to the Charities Accounting Act that would allow charities to make social investments that support their goals while helping them earn financial returns, and would exempt these types of investments from restrictive prudent investor rules
4. Amending the Pesticides Act to transition the pesticide licensing program from paper-based to online service delivery

Reducing Regulatory Costs for Businesses Act, 2017

The Cutting Unnecessary Red Tape Act, 2017 included a new statute called the Reducing Regulatory Costs for Business Act, 2017. This statute came into effect on January 1, 2018. It reduces regulatory burdens and improves practices for businesses by requiring all government ministries to:

• Reduce regulatory costs for businesses by providing $1.25 in cost savings for every dollar in administrative costs added
• Streamline compliance for small businesses by ensuring new or amended regulations do not unduly burden small businesses, where appropriate
• Harmonize standards with other jurisdictions and adopt international or national standards, where appropriate, when developing or amending regulations
• Identify businesses that have a proven compliance record, such as through recognition programs, reduced requirements or lowered costs
• Eliminate costly paper submissions by allowing businesses to submit required regulatory documentation electronically to the Government of Ontario

These initiatives are yet another way the province is saving businesses time and money and fostering a strong business climate while ensuring regulations continue to protect the public, workers and the environment.

Canadian Free Trade Regulatory Reconciliation and Cooperation Table

In the past, varying provincial and territorial regulations and standards often restricted the mobility of certain products, tradespeople and certified professionals between Canadian jurisdictions. This created internal trade barriers that resulted in chronic economic inefficiencies and lost opportunities for businesses.

Promoting the free flow of goods

On July 1, 2017, the Canadian Free Trade Agreement (CFTA) came into effect, replacing the former Agreement on Internal Trade. This historic agreement between the federal, provincial and territorial governments will produce tangible benefits for both businesses and consumers — and support a modern, open and competitive economy — by allowing Canadian governments to identify potential barriers to trade based on information provided by stakeholders or other sources.

The CFTA established the Regulatory Reconciliation and Cooperation Table to oversee the new regulatory reconciliation process that will help address the trade barriers Ontario’s companies may have faced in the past when doing business across provincial and territorial borders.

Once a trade barrier has been identified, the provinces and territories can work together to establish a Reconciliation Agreement that details how the trade barrier will be addressed and, once adopted, binds CFTA governments to the commitments it contains.

Adopting new technology

Making Ontario a better place to do business is key to growing a strong and vibrant economy. This means not only reducing current regulatory burdens, but anticipating and responding to future regulatory challenges so we can build a more innovative business climate.

Ontario’s Open for Business strategy is helping the government take advantage of opportunities in the new economy by adopting technologies that can reduce the regulatory burden on businesses. We are looking at how investments in transformative technologies — such as advanced robotics, artificial intelligence, clean technology, connected and autonomous vehicles, blockchain technology and the Internet of Things — can create a more dynamic business climate in Ontario.

By partnering with other government organizations, consulting with businesses and academia, hosting events like hackathons, and supporting proof-of-concept projects, we are looking for innovative ways in which technologies can provide new approaches to reducing the regulatory burden and encouraging growth in key economic sectors.

2018 burden reduction initiatives

Ontario remains committed to creating more efficient, modern regulations that improve services within and beyond government. This year, we identified $43.3 million in cost savings, bringing the total saved by businesses and stakeholders since 2011 to about $195 million — almost double our original goal. Many ministries found ways to streamline their operations by going digital, simplifying processes, updating rules and regulations, harmonizing regulations with other jurisdictions, or a combination of these strategies. We plan to build on these successes and continue to make Ontario an innovative, agile place to do business.

Savings initiatives summary (table)

Going digital

Increasingly, people get impatient when they discover that to accomplish something, they must fill a form out by hand and follow that up with all the other time-consuming steps — like finding an envelope and a stamp, looking up an address, mailing a document and waiting weeks for a response. Moving paper-based processes online is one of the easiest and most obvious ways to modernize operations. More and more Ontario ministries are making the switch — saving businesses time and money.

Streamlining research activity using Source Protection Information Atlas (SPIA)

Burden

Ontario established the Drinking Water Source Protection program under the Clean Water Act in 2006. This program protects sources of municipal drinking water — such as lakes, rivers and aquifers — from contamination or overuse.

The province then established source protection areas and created 19 local multi-stakeholder source protection committees. These committees identify significant existing and future risks to their municipal drinking water sources and develop plans to address these risks.

Developers, investors, commercial and industrial property owners and farmers must comply with the rules and restrictions set out in source protection plans for these vulnerable areas.

Before 2017, it was a long, burdensome process to identify whether a location was in a vulnerable area and what activities were prohibited under the source protection plan. Interested parties had to find information from more than 250 municipalities and 38 source protection authorities, many of which lacked accessible, easy-to-use maps.

Solution

Ontario’s Source Protection Information Atlas (SPIA) is a web-based interactive mapping tool combining more than 30 mapping layers, satellite imagery, search tools and related reference material.

SPIA provides developers, investors, property owners and consultants with one central tool to find out if a particular location is in or near a vulnerable area and whether there is a related policy. Users can now quickly access this information online instead of using different paper maps at conservation authority or municipal offices or calling several people to get help with a search.

Results

The SPIA map tool:

• Provides easy access to information about how source protection policies may impact existing or proposed activities on a given property
• Reduces the amount of time individuals or consultants (hired by businesses) spend researching and compiling information to comply with source protection policy requirements by up to 11,893 hours
• Generates corresponding savings of $2.4 million
• Improves Ontarians’ access to a host of mapping services unrelated to source protection, such as administrative boundaries

Savings over 1 year

• $2.4 million
• 11,893 hours

Making it faster and easier to register construction-related water-taking activities

Burden

In Ontario, construction and road-building companies that take or divert more than 50,000 litres of water per day must get a permit or register the activity with the Ministry of the Environment and Climate Change.

Until recently, all companies seeking approval needed a Permit to Take Water (PTTW). Companies had to conduct lengthy technical assessments, and manually complete and mail in an application form with fees. Once the ministry received the application, the review and approval period could then take more than three months.

Solution

Since March 2016, eligible businesses have been able to register their water-taking activities using the web-based Environmental Activity and Sector Registry (EASR).

This streamlined, risk-based process identifies activities that do not need permits, exempts certain activities, and enables self-registration. It also reduces administrative, paper and interest costs, and allows companies to begin operations sooner.

Results

• Reduces the time businesses spend filling out forms for environmental approvals by about three hours for each company over a period of 21 months
• Eliminates thousands of pages of paperwork and saves over $1,600 in paper and postage costs
• Reduces the time spent hiring external consultants or having internal staff prepare and submit applications, including technical reports, by 1,716 hours
• Saves businesses about $411,840, as they can now quickly register on the online registry immediately after payment
• Reduces the wait time for approvals by 90 days, saving businesses about $9.56 million in indirect costs from potential lost revenue as well as in reduced interest costs, since they can begin operations much sooner
• Provides businesses with more clarity about the standards applied to water-taking activities

Savings over 1 year and 9 months

• $9.97 million
• 221,316 work hours

Expanding a new grant application and reporting process to more ministries

Burden

In the past, the process for applying for Ontario government grants was onerous, paper-intensive and time-consuming. There was no standardized approach, nor were the grants consistently administered across ministries.

Applicants often had to call various ministries in search of grant programs, and then wait for materials to arrive by mail before filling out forms manually. They also needed to mail or hand-deliver submissions, call ministries to confirm receipt, contact staff to track their application’s progress, and wait for funding announcements.

My assistance requests were addressed with great efficiency, friendliness and in a timely manner. This has really contributed to having a positive experience when working with the Grants Ontario portal, opposed to other funding platforms that are extremely difficult to work with and to get in contact with. Thanks again.

— Camille Mohamed, Moeen Centre (Feb 1, 2017)

Solution

In April 2016, the government modernized the transfer payment process by having more ministries use the Grants Ontario System (GOS). The GOS is an integrated web-based system that manages transfer payment programs from start to finish. It enables applicants and recipients to submit applications and file reports online. It also replaces dozens of application forms and antiquated, unsupported IT systems, making it easier for organizations to apply for funding.

To further reduce the administrative burden, the government also launched the Transfer Payment Common Registration (TPCR) System and merged it with GOS. The TPCR System provides businesses and organizations that receive transfer payments a one-window registration system and enables them to enter, update and manage their information online.

Results

• Streamlines and automates the grant application process
• Reduces the time spent tracking grant statuses
• Shortens the time applicants spend researching available grants, applying for transfer payments, completing grant applications, and engaging in recordkeeping and reporting
• Generates savings of about 90,400 hours — equivalent to approximately $3.78 million in the value of time from April 2016 to December 2017
• Generates additional savings of $14,416 in courier and postage costs

Savings over 1 year and 9 months

• $3.79 million
• 90,400 hours

Taking the work out of managing Ontario’s highway corridors

Burden

Commercial developers and companies such as telecommunications, hydro, gas, and sign companies planning construction projects on or near provincial highways must apply for an encroachment, entrance or sign permit, or a building or land use permit.

Until recently, the application process was entirely manual and paper-based. Clients had to fill out an application, prepare and print supporting documents, attach a cheque, find the appropriate Ministry of Transportation (MTO) office, and mail in the application. All of this could take as long as 1.5 hours. It also usually took three to four business days to receive the permit in the mail, potentially delaying construction projects.

We have seen a positive change with this new process. From faster response times to instant permit issuance, it has sped the process up overall. We want to thank you and your team for progressing to this stage.

– Pride Signs

Solution

In June 2017, MTO launched the Highway Corridor Management System. This new online service lets construction companies, developers, municipalities, utility companies, conservation authorities and the general public fill out and submit permit applications online for activities on or near provincial highways.

The new service guides users seamlessly through the process. It allows clients to provide data, upload supporting documents, declare their authorization and submit the completed application. They can also pay permit fees online, track the status of their application, get target completion dates, and receive electronic billing statements. Most importantly, they obtain their permits immediately upon payment.

Results

• Provides a simpler, easier and more convenient permit application process that is open, accountable and transparent to business.
• Reduces the time it takes to complete the application process to only 15 minutes (down from 1.5 hours) per application, for a total savings of 2,201 hours.
• Saves businesses approximately $58,157 in administrative costs, since they no longer spend a significant amount of time preparing applications.
• Generates further savings of about $5,813 in print and postage costs.
• Reduces the wait time for approvals by 3.5 days, minimizing lost profits and interest expenses. These savings are valued at $1.18 million, since businesses are able to begin construction sooner.

Savings over 6 months

• $1.25 million
• 49,049 hours

This has been a huge time saver for us, and we are really enjoying it. It also helps us reduce the additional cost of printing and courier fees. We are really looking forward to the next step in the program’s development.

– Permit World

Making it easier for businesses to protect employees’ mental health

Burden

The benefits of psychologically healthy workplaces have been in the forefront of public discussion lately as employers become more aware of the impacts of poor mental health. Studies have shown that in any given year, one in five Canadians will experience a mental health problem or illness.There are 13.8 million people ^{footnote 1[1]} in Ontario. In economic terms, the burden of mental illness in Canada is estimated at $51 billion per year including health care costs, lost productivity and reductions in health-related quality of life. ^{footnote 2[2]}

Prior to May 2017, Ontario business owners looking for information about tools and services to develop and implement mental health programs had to search a variety of websites. In some cases, this meant hiring an expert. The process was cumbersome, time-consuming and frustrating for business owners trying to introduce and carry out a program that would ensure the psychological well-being of their workers.

Solution

To respond to this issue, Workplace Safety and Prevention Services developed the thinkmentalhealth.ca portal. Launched in May 2017, this website provides free or low-cost access to reputable and tested mental health resources for Ontario business owners. These tools provide sound practical advice for reducing stigma and managing mental health hazards in the workplace. The site also enables users to implement a mental health program that protects workers’ psychological well-being.

Results

• Provides a one-stop-shop of practical and proven tools, models and frameworks to support workplace mental health programs
• May reduce the need to hire an expert to implement mental health programs in workplaces
• Supports psychologically healthier workplaces for Ontarians

Using a web-based portal to speed up the funding process for minor capital projects

Burden

Ontario community and developmental service agencies, such as organizations that support women and children fleeing domestic violence or adults with developmental disabilities, can receive minor capital funding through Ontario’s Partner Facility Renewal Program. The program helps agencies repair, renovate or upgrade their facilities so they can deliver accessible, safe, high-quality programs and services to people across the province.

Until recently, the process agencies followed to apply for funding through the Partner Facility Renewal Program — which is administered by the Ministry of Community and Social Services (MCSS) and the Ministry of Children and Youth Services (MCYS) &mdash ;was manual and labour-intensive.

The ministries lacked a central database to manage project information, creating significant administrative burdens. Agencies had to complete, submit and validate spreadsheet-based surveys within eight weeks, then wait up to 15 weeks for the ministries to review the proposals and approve funding. Agencies also had to later complete and submit manual, spreadsheet-based progress reports. Overall, the process was onerous and time-consuming.

Solution

To modernize the process, MCSS and MCYS started using a database under the Grants Ontario System, which the ministries customized for the Partner Facility Renewal Program. This integrated online solution is providing a one-stop, web-based portal that agencies can use to access information, submit applications, undertake report-backs and monitor approval and payment status.

Since April 2017, 55 transfer payment agencies that receive funding under the federal Social Infrastructure Fund initiative have been fully set up in the pilot system. As well, nine agencies under the Northern Region Partner Facility Renewal Pilot have been migrated.

Once fully implemented in 2018, this new process will speed up the filing of funding applications for transfer payment agencies, shorten wait times for funding and improve client experience.

Results for pilot initiatives

• Speeds up funding approvals and payments for 190 capital projects in the Social Infrastructure Fund and Northern Region Pilot, saving about 1.9 hours per project or a total of about 360 hours
• Allows grant recipients to manage their project cash flows more effectively and reduces interest costs from loans secured due to funding delays, saving them about $31,623.

Results when the Partner Facility Renewal Program is fully set up in the Grants Ontario System

• Will streamline the filing of applications, payments and report-backs for agencies
• Will shorten wait times for funding and improve client experience

Cost savings over 9 months

• $31,623
• 360 hours (45 days)

Simplifying processes

Whether for processing permits, issuing certifications or ensuring compliance, there are almost always steps that can be eliminated, shortened or simplified to save time and money without compromising public safety, especially in cases where regulations and processes have not been reviewed in some time. This year we are highlighting a variety of instances where Ontario ministries examined their processes and discovered ways to streamline them.

Drinking water/wastewater operator certification program

The Ontario Drinking Water and Wastewater Operator Certification Program establishes occupational standards for operators and water quality analysts. It assures the safety of drinking water in Ontario by ensuring that operators have the education, experience and knowledge to perform their responsibilities effectively.

Saving time with dynamic operator certification forms

Burden

Applying to the Ministry of the Environment and Climate Change to be certified as a drinking water or wastewater operator was a cumbersome process until 2016.

Applicants had to submit various static application forms that did not indicate whether they had filled out the forms completely or accurately. As a result, applicants often had to respond to follow-up questions from the ministry to clarify or supply missing information, resulting in processing delays.

Solution

In July 2016, the ministry created seven new dynamic forms according to service type to replace the 17 previous static forms. These new user-friendly forms use technology to minimize processing delays by reducing the need for follow-ups and allow individuals to apply through interactive, intuitive PDFs.

Results

• Reduces the number of follow-ups needed for incomplete or incorrect submissions. Since 2016 there have been 85% fewer follow-ups for examination applications alone
• Reduces the time spent by individuals on their applications for exam registrations by 131 hours annually
• Reduces the time it takes to complete applications through more user friendly formatting and features

Simplifying drinking water operator-in-training certification

Burden

An individual wanting to become a drinking water operator in Ontario first needs to get an operator-in-training (OIT) certificate. This OIT certificate allows the operator to gain the one year of experience needed to become a Class 1 operator. To get an OIT certificate, a provincial examination must be passed.

Until July 2017, the Ministry of the Environment and Climate Change issued both regular and temporary OIT certificates. Each type of certificate had its own specific set of certification processes and rules, including separate applications, extensions, renewals and course requirements. Individuals had to submit additional applications and requests if they wished to apply for an extension, creating an extra administrative burden for applicants.

Drinking water OITs also couldn’t work in “limited systems,” which have less complex operational requirements than other drinking water systems. Instead, they had to take another course, pass an additional exam, and pay the fees for both to get a limited system certificate.

Solution

In July 2017, Ontario changed the drinking water operator certification regulation under the Safe Drinking Water Act to simplify drinking water OIT certification. Now, only one type of OIT certificate is issued with a single set of processes and rules.

Drinking water OITs can now work in limited systems under the supervision of an Operator-in-Charge or Overall Responsible Operator, without the need for additional training or an examination.

Results

• Reduces administrative burden on applicants by simplifying certification requirements for drinking water OITs
• Eliminates the unnecessary burden of writing an additional exam and completing more training
• Makes it easier for owners of limited systems, including members of First Nations communities, to find people to operate their systems

Savings to applicants/operators over 6 months

• $8,544

Making it easier to become an approved Joint Health and Safety Committee trainer

Burden

Under the Occupational Health and Safety Act, employers with 20 or more staff must have a Joint Health and Safety Committee (JHSC) with at least two certified members. To become certified, a person must successfully complete an approved JHSC training program. This training can only be provided by those approved by the Chief Prevention Officer (CPO).

In the past, to be approved, trainers had to go through a lengthy five-step process that included an application triage, desk assessment, field assessment, actual field delivery of training program, and decision on approval. Applicants needed to complete a 45-page application form and submit 12 documents. They also had to wait 35 days for application decisions, resulting in potential lost revenue.

Solution

In October 2015, the Training and Awareness Branch of the Ministry of Labour’s Prevention Office streamlined the application and assessment process for training providers. The application form can now be populated with previously completed information and can reference a training provider’s existing identification number. This enables providers who have been approved through another CPO-approved training program to be recognized, potentially exempting them from a field assessment.

The number of form pages and key documents needed to apply has also been reduced, eliminating some of the administrative burden on prospective training providers.

Results

• Streamlines and enhances the application and approval process for over 157 prospective JHSC training providers, making it more efficient
• Reduces the number of key documents submitted for review by more than half and the average length of application forms from 45 to 25 pages
• Reduces administrative and paper cost savings, including the lease of a training facility valued at more than $109,742
• Reduces the time it takes prospective training providers to fill out and submit applications and comply with other steps to complete their assessments, saving them $1.5 million in terms of the value of time and reduced administrative costs
• Cuts wait times for assessment and approvals by an average of 35 business days, reducing lost earnings by $975,551
• Helps prospective providers comply with training standards by making guidance materials available for each stage of assessment

Total savings over 2 years and 3 months

• $2.59 million
• 233,019 hours

Streamlining the permitting process for oversize/overweight vehicles

Burden

Carriers of oversize trucking loads need special permits. Before July 2016, they were issued single-trip permits that were valid for just four to five days. Weekend travel for oversize loads was not permitted. Carriers reported that this permitting process was burdensome and hurt their ability to compete. In some cases, the process resulted in delays that caused significant expenses.

As well, prior to August 2017, carriers had to fax hard copies of permits to truck drivers on the road and the drivers had to arrange to receive these faxes (which had to be presented to police on demand if requested).

We have been very happy with the improvements made to the oversize-overweight permitting process in Ontario over the past few years. A number of these changes have had a real impact on industry, and we look forward to continuing this work to make the permitting process as responsive and efficient as possible.

– Ontario Trucking Association

Solution

In 2015, Ontario committed to streamlining its permitting process for oversize/overweight vehicles to make the process more efficient without sacrificing road safety. The Ministry of Transportation (MTO) started improving the single-trip permit application and administrative processes.

In July 2016, MTO extended the duration of a single-trip permit to seven days (from four or five), and began permitting weekend travel for most oversize loads that would normally be allowed under a ministry-issued annual permit. In August 2017, it introduced further improvements, giving carriers the option to carry and present electronic permits.

Results

Expanding single-trip permits to seven days and permitting weekend travel:

• Allows 5,200 carriers more flexibility and saves them $5.76 million in indirect costs owing to delays, including costs related to delayed profits, standby labour (truck drivers waiting for their journey to resume), and equipment holding
• Saves carriers more than $477,700 in reduced interest costs, as they now receive payments for their shipments an average of 3 days earlier
• Reduces the financial burden on truck drivers, such as for accommodation and meals while waiting for amended permits to be issued
• Reduces the number of physical copies of permits and amendments required

Allowing electronic single trip permits:

• Saves carriers $1.66 million over five months in administrative and paper costs, including the cost of faxing physical permits or amendments to drivers on the road
• Saves 27,000 hours and $1.14 million over five months by simplifying the process for completing and submitting paperwork and obtaining and printing hard copies of permits and amendments

Savings over 5 months (electronic single-trip permits) to 1.5 years (expanding single-trip permits and permitting weekend travel)

• $9.03 million
• 156,427 hours

Easing data reporting requirements for transfer payment recipients

Burden

Agencies that receive transfer payments from various Ontario ministries must prepare and submit financial and service data reports to their respective ministries every quarter. This involves compiling data, inputting the data into ministry templates and going through an internal review and approval process, all of which takes considerable time and resources.

Typically, completing these tasks also requires support from staff in a range of areas, including accounting and finance, business and human resources, front-line or program delivery and senior management. It is estimated that transfer payment recipients (TPRs) spend an average of 30 hours preparing and submitting first-quarter reports alone.

Solution

In April 2017, two ministries — the Ministry of Community and Social Services and the Ministry of Children and Youth Services — eliminated the requirement for eligible TPRs to report their first-quarter service data. This change affects some 600 organizations in Ontario, saving them significant time and resources.

Results

• Eliminates the burden of completing first-quarter reports for TPR organizations, saving each of them approximately 18 hours of work
• Saves each TPR organization approximately $492 in administrative and management costs related to preparing and overseeing the completion of first-quarter reports
• Provides greater financial flexibility and administrative efficiency for TPR organizations

Total savings over 9 months

• $295,600
• 10,836 hours

Taking the frustration out of submitting accessibility compliance reports

Burden

All businesses and non-profit (BNP) organizations in Ontario with 20 or more employees, including all designated public sector organizations, are required to submit online accessibility compliance reports (ACR) to the Accessibility Directorate of Ontario (the directorate).

Until recently, it took 27 steps for an organization to set up and authenticate a user account. Submitting an ACR also entailed answering a series of questions in a format that could not be saved, downloaded or shared within an organization. This resulted in thousands of organizations having to call ServiceOntario and the directorate’s compliance help desks for assistance with completing and submitting their ACRs. The process was time-consuming and frustrating for these organizations.

Solution

To make the reporting process easier, the directorate launched a new reporting system in March 2017 based on feedback from stakeholders.

The improved process was built into the directorate’s Tracking and Reporting Accessibility Compliance (TRAC) database. The database uses a commercial customer relationship management product to manage compliance and outreach activities, resulting in more effective and flexible tracking and organizing of customer interactions.

Organizations can now submit their ACRs in just three steps using a downloadable and accessible form that contains embedded guidance documents and direct links to relevant accessibility legislation.

Results

• Improves compliance among organizations by streamlining the reporting process for more than 22,000 BNP organizations
• Reduces the number of steps required to file an online report from 27 to 3
• Reduces the need to call the ministry for help with completing and submitting compliance reports (by up to 69 per cent), saving BNP organizations roughly $46,000 in terms of the value of time
• Improves customer service and the effectiveness of the directorate’s outreach campaigns through better tracking of customer interactions

Savings over 9 months

• $46,192
• 1,334 hours

Modernizing rules and regulations

To create an innovative business climate in Ontario, it is essential that we ensure our rules and regulations keep up with the times and the needs of businesses. This means re-examining the processes, legislation and regulations we have in place to ensure they protect the interests of Ontarians without creating unnecessary financial or administrative burdens for business. With this in mind, several ministries have updated their processes over the past year to make it easier to do business in the province and better serve Ontarians.

Getting cost-effective drug products to Ontarians more quickly

Burden

The Ontario Drug Benefit (ODB) formulary covers the cost of certain drug products for Ontarians. When a resident needs a drug not listed on the formulary, the province’s Exceptional Access Program (EAP) assesses whether to cover the cost through public funding. Drugs assessed for coverage typically require specialized knowledge to prescribe, have a higher risk of inappropriate use, and are more expensive.

Before October 2016, it was difficult for older drug products with generic equivalents to be added to the ODB formulary. To be listed on the formulary where access is granted without additional paperwork, drug products must meet certain requirements.

Physicians and nurse practitioners prescribing EAP-listed drugs for their eligible patients found the process time-consuming and burdensome, as they had to complete request forms and provide supporting documentation. Their patients sometimes also needed to request refunds or repayment of out-of-pocket costs when EAP coverage was approved as a result of having to start treatment while waiting for the review to be completed.

Solution

In October 2016, the Ministry of Health and Long-Term Care streamlined the requirements for getting older drug products listed on the ODB formulary. Under these new rules, products that were in the EAP — but no longer require case-by-case review — can be moved to the formulary. Since these amendments were put in place, about 52 drug products have been moved out of the EAP and onto the formulary, resulting in better access for prescribers and patients.

Results

• Enables physicians and nurse practitioners to prescribe select EAP-listed drugs without ministry approval
• Saves prescribers approximately 12,431 hours from not having to prepare and submit EAP forms on behalf of their patients, equivalent to about $1.21 million in reduced administrative costs over 15 months
• Generates further savings of about $670,777 for patients and their caregivers by reducing travel time to pharmacies by 24,860 hours as well as the time spent to prepare reimbursement letters for out-of-pocket expenses
• Allows patients to obtain cost-effective medications more quickly

Savings over 1 year and 3 months

• $1.88 million
• 37, 293 hours

Making it easier for Ontarians with developmental disabilities to apply for the Ontario Disability Support Program

Burden

In the past, adults with developmental disabilities who were already eligible for adult developmental services funded by the Ministry of Community and Social Services (MCSS) were required to go through a second disability adjudication process to be eligible for the Ontario Disability Support Program (ODSP). This second adjudication took time and required applicants and their health care professionals to fill out several forms.

Solution

As part of its 2016 budget, the Ontario government committed to streamlining the ODSP application process for this group of individuals.

A regulatory change created a new prescribed class for applicants already eligible for MCSS-funded adult developmental services. This came into effect on September 1, 2016.

ODSP applicants who are members of this prescribed class do not need to go through the disability adjudication process. They must still apply for ODSP, and as long as they meet all other eligibility requirements, including those for financial eligibility, they’ll be granted ODSP income support.

Results

• Simplifies the ODSP application process for applicants already eligible for MCSS-funded adult developmental services by eliminating the need to go through the ODSP disability adjudication process
• Reduces the applicant’s administrative burden and improves their service experience when applying for ODSP
• Reduces the administrative burden for health care professionals, as they are not required to complete another disability application on behalf of an applicant

Harmonizing rules and regulations with other jurisdictions

Having different rules, regulations or qualifications between provinces and territories creates barriers for businesses. It also results in administrative burdens that increase costs for both businesses and their customers. Finding ways to harmonize rules, when it makes sense to do so, can save businesses time and money. Over the past year, we’ve taken some significant steps in eliminating unnecessary duplication in regulations between jurisdictions to make it easier to do business in Ontario.

Eliminating licensing fees for adoption licensees

Burden

To obtain a licence to arrange international adoptions or place children for adoption in Ontario, all adoption agencies and licensees used to have to pay a set fee and renew their licences annually.

Ontario’s licensing fee to arrange international adoptions was the highest in Canada. Agencies had to pay $1,800 each year compared with just $100 to $200 every two years in Manitoba and British Columbia, and no licensing fee at all in Quebec. Private domestic adoption licensees in Ontario had to pay a fee of $200 to apply or renew their licences. These fees created a financial burden for adoption agencies in the province.

Solution

In July 2017, Ontario amended regulations pertaining to licensing fees under the Child and Family Services Act (CFSA), 1990 and the Intercountry Adoption Act, 1998 (IAA) to eliminate all licensing fees. Ontario’s fees on international adoption are now harmonized with other Canadian jurisdictions. This change has benefited 10 Ontario adoption agencies licensed under the IAA and 19 adoption licensees under the CFSA.

Results

• Reduces the administrative burden for adoption agencies and licensees obtaining and maintaining a license
• Saves all adoption agencies and licensees about $22,000 each year
• Harmonizes Ontario’s international adoption fees with those of other Canadian jurisdictions

Savings over 6 months (July to December 2017)

• $10,900

Harmonizing the rules for administering pooled registered pension plans

Burden

Pooled registered pension plans (PRPPs) are a new type of voluntary tax-assisted individual retirement savings vehicle. They are administered by licensed third-party administrators, such as regulated financial institutions, and are intended to be low-cost, which is achieved through a simple design and economies of scale. In order to reach the scale necessary to keep costs low, it was intended for PRPPs to operate across the country. However, this would require administrators to register PRPPs and comply with the regulatory requirements in each jurisdiction.

In the absence of a multi-jurisdictional pension agreement governing the oversight of PRPPs, administrators looking to offer a multi-jurisdictional PRPP in Ontario would have to comply with the regulatory requirements in Ontario and federally. Complying with the regulatory requirements of multiple jurisdictions would increase costs for administrators, which would lead to higher costs for members.

Solution

In January 2017, Ontario signed a multilateral agreement to streamline the regulation and supervision of PRPPs. The agreement — which came into effect in Ontario on March 31, 2017 — harmonizes regulations so administrators generally only need to comply with one set of rules, which are now overseen by the federal regulator.

Results

• Streamlines and standardizes the PRPP administrative process for third-party administrators offering multi-jurisdictional PRPPs
• Removes the need to maintain, prepare and file multiple annual information returns to multiple regulators
• Saves money by reducing the number of annual fees administrators must pay and minimizes the need for legal and other consulting services to help meet regulations

Thank you to our partners

It takes a multi-talented team to make Ontario’s business environment the best it can be. Businesses here are growing and thriving thanks in part to our efforts to keep red tape and costs to a minimum. The Ministry of Economic Development and Growth (MEDG) works collaboratively with partners across the provincial government and business community to achieve this climate of excellence.

Our business partners are:

• Chemical Industry Association of Canada
• Ontario Mining Association
• Canadian Federation of Independent Business
• Ontario Chamber of Commerce
• Canadian Manufactures and Exporters
• Ontario Trucking Association
• Pride Signs
• Permit World

Our government partners are:

• Ministry of Northern Development and Mines
• Ministry of Environment and Climate Change
• Ministry of Labour
• Ministry of Government and Consumer Services
• Cabinet Office
• Ministry of Transportation
• Accessibility Directorate Office
• Ministry of Health and Long-Term Care
• Ministry of Community and Social Services
• Ministry of Children and Youth Services
• Ministry of Finance

Methodology: How we measure cost-savings

The Ontario government uses a measured approach to assess the impacts of burden reduction initiatives on businesses and other key stakeholders.

Specifically, it developed the Regulatory Cost Calculator (RCC) to measure the direct cost of compliance or the impact of business improvements and regulatory changes. The tool is based on the Standard Cost Model — the most widely applied methodology for defining and quantifying compliance costs. The estimates that feed into the RCC are based on input from internal experts, existing records and stakeholders.

Ontario also developed the Open for Business’ Cost Savings Model. It measures cost reductions for Ontario businesses and other stakeholders when complying with regulations or accessing government services. It makes use of cost-benefit principles to quantify indirect costs, such as borrowing costs, holding costs, costs of delays and other substantive economic and financial costs. This approach includes assumptions from business surveys and association studies, as well as published economic and financial reports by think-tanks and statistical and economic organizations.

To ensure the integrity of the Ontario cost savings model, the Ministry of Economic Development and Growth commissioned a third-party provider to undertake an independent review of the results featured in the 2015 Burden Reduction Report. The assessment concluded that the methodology was sound and the cost-savings estimates reasonable.

In particular, the following types of costs associated with complying with a regulation or administrative requirement are given a dollar value.

Direct financial and administrative compliance costs

• Fees and payments to the government for services, permits or licences
• Time and cost to learn requirements, prepare and submit applications, maintain records, cooperate with inspections, as well as other administrative work
• Administrative costs, such as for paper, printing, postage and courier
• The cost of hiring external consultants, accountants or other service providers to support compliance with requirements

Direct substantive compliance costs

• Equipment purchased to comply with regulatory requirements
• Recurring costs to lease office space or maintain equipment
• One-off operating or capital costs, such as the costs of improving physical facilities to comply with regulations

Indirect or efficiency costs

• Delayed/missed profits or missed investment opportunities
• Indirect holding costs to keep machinery, land or other capital on standby until government approval comes through
• Interest on loans or increased cost of borrowing

The baseline costs — costs that businesses and stakeholders face prior to the regulatory changes or process improvements — are compared with the actual costs after the changes are introduced. The difference is the cost savings to the affected stakeholders.

BASELINE COSTS – COSTS AFTER IMPLEMENTATION = COST SAVINGS

Other regulatory modernization tools

Regulatory registry posting

The Regulatory Registry is our way of encouraging Ontario businesses to participate in developing better regulations and providing them with a better understanding of how to comply with them. It also helps us understand how new regulations may affect the competitiveness of Ontario businesses.

All proposed regulatory amendments or new regulations likely to affect Ontario businesses must be posted on the Registry for 45 days so businesses have an opportunity to provide their feedback. As of January 1, 2018, any new administrative costs imposed on businesses must also be published on the registry.

Twice-annual effective dates

New regulations affecting businesses generally come into effect just twice a year, in January and July. This helps Ontario businesses plan ahead.

Mandatory review of high-impact regulations

We regularly remove redundant regulations to ensure Ontario’s regulatory system remains lean and relevant. All new or amended high-impact regulations filed since January 1, 2014 will be reviewed every 10 years (or when appropriate).

Send us your feedback

We want to hear from you! Tell us how we can better support Ontario’s businesses by improving and streamlining regulation. There are two ways to have your say:

1. Visit Ontario.ca/RedTapeChallenge to submit your feedback on existing regulations. See the schedule online
2. Visit Ontario’s Regulatory Registry to submit your comments on new proposed regulations. Select the regulation you wish to submit feedback on and fill out the Regulatory Feedback form

Appendices

Summary of 2018 quantitative burden reduction initiatives

Summary of multi-year impact projects

These multi-year impact projects feature current-year savings that are in addition to those reported in the previous Burden Reduction Reports.