Enterprise Saskatchewan

The Regulatory Code of Conduct is a system that outlines procedures for developing or changing regulations and legislation that have an impact on the economy.

The impact of legislation and regulations on the public is a growing concern for all governments. Most governments rigidly scrutinize new legislation and regulations to ensure fairness and equity. Some governments have already adopted a form of regulatory conduct, the most notable being the Government of Canada's Citizen's Code of Regulatory Fairness.

In 1988, the Business Regulatory Reform Council undertook several initiatives including a business regulatory code of conduct. This code was subsequently approved by Cabinet in 1989 as the Guidelines for Regulatory Fairness. This work provides a basis for the current discussion on a regulatory code of conduct.

The province's Economic Strategy, Partnership for Renewal, committed the government "...to develop and implement a new regulatory system that will include a Regulatory Code of Conduct with procedures and criteria for developing and changing policies, regulations or legislation that have an impact on the economy."

In mid-December 1992, provincial departments and agencies involved in business regulation were invited to comment on the current applicability of the guidelines. A similar invitation was also sent to 20 business association and lobby groups. The responses were then analyzed by officials from Justice, Executive Council, Finance and Economic Development with a view of incorporating the comments received.

On January 22, 1993, the Provincial Action Committee on the Economy (PACE) discussed the proposed regulatory code and implementation options.

As a result of the input from the various stakeholders, a final version of the Code was prepared and submitted to Cabinet. On February 16, 1993, Cabinet approved the formal adoption of a Code of Regulatory Conduct as a guideline for government departments, agencies and Crown corporations when drafting legislation and regulations. Cabinet further directed that individual departments, agencies and Crown corporations would be responsible for applying the Code's principles. The Legislative Review Committee and the Regulations Review Committee would monitor compliance.

To a large extent, the Regulatory Code of Conduct is a statement of current government practices and procedures. There are no requirements which will overburden departments, agencies and Crown corporations in their pursuit of fair and equitable legislation and regulations. The Code represents the government's commitment to the public on the manner in which legislation and regulations will be developed. Therefore, the public of Saskatchewan will be the final monitor of the government's compliance with the Code's principles.

The Regulatory Code of Conduct has five sub-headings. These include:

1. Objectives of the Code

The stated objectives are relatively straight forward and include "...guidance to government departments, agencies and Crown corporations..." and "...to ensure business and citizens have better access, understanding and input into the regulatory process." As mentioned previously, the Code is a government commitment to the public of Saskatchewan to become more accountable for the legislation and regulations which are developed and implemented.

2. Responsibility of the Originator

Under this section, the originating department, agency, or Crown corporation will be required to consider non-regulatory alternatives and to identify the potential costs and benefits of its legislative and regulatory proposal.

Where non-regulatory alternatives exist, the Code requires these alternatives be given consideration and a justification provided when they are not chosen.

The cost and benefit identification is one of several critical elements within the Code. This requirement is of utmost importance for Saskatchewan's business community. Businesses cite the regulators' lack of understanding of the indirect costs associated with implementing legislative and regulatory requirements as a problem. The Code does not require a detailed cost benefit analysis, it does require some identification and appreciation of all costs, both direct and indirect, resulting from the legislation and regulations.

3. Characteristics of the Regulatory Process

This section stipulates the regulatory process will include:
• advance notice;
• public consultation on legislation and regulations impacting them;
• a regular review of statutes and regulations;
• an intra-jurisdictional comparison;
• a uniform drafting approach to regulations; and
• a detailed review by elected law makers.

Saskatchewan's business community continues to express concerns that the only time they are aware of upcoming legislation is when bills are introduced in the Legislature. With respect to regulations, it is usually in the form of a press release. Under the Code, departments, agencies and Crown corporations will be required to advise, in advance, those parties impacted by the policy issues encompassed within the proposed legislative or regulatory changes. This should be done in the initial stage of development and will serve as the basis for consultation. The caveat to this Code requirement is where legislative or regulatory changes are tied to the "budgetary process", thereby implying the essence of the proposed change is included in the government's annual budget.

The government's commitment to the consultative process is reflected in the requirement of "...opportunity for affected sectors to provide input into statues and regulations...". This is another critical element within the Code. The public does appreciate and occasionally demands, input on those regulatory matters affecting them. While consensus is desirable, it is not the object in each and every circumstance. An opportunity should be provided for input. However, the final outcome will continue to rest with the decision makers within the legislative and regulatory process.

A requirement for a regular review of the statues and regulations is contained within the Code. There is no pre-determined time period. This matter is left to the discretion of the originating department, agency or Crown corporation with the ultimate objective being "...continued relevancy".

Addressing inter-jurisdictional competitiveness is embedded within the Code given the statement of "...efforts to minimize regulatory conflicts and differences...". Conflicting regulations and legislation does exist both within the provincial government and with other levels of governments. In part, these conflicts can be explained by the difference in regulatory and legislative objectives. However, there is need to address these inconsistencies with a view of minimizing their differences.

The requirement for drafting by professional draft persons is again already met given the centralized legal and drafting services provided by the Department of Justice.

The regulatory process shall include a "...detailed review of proposed legislation and regulations by elected law-makers and consideration by them of the principles of this Code." The Legislative and Regulations Review Committees will be monitoring compliance to the Code. The implementation process has the originating department, agency, or Crown corporation, essentially administering the Code. The end result is a need for each department, agency, or Crown corporation to discuss its compliance with the Regulatory Code of Conduct within its submission to the respective "elected law maker" committee.

4. Characteristics of Decision Process

Clearly articulated policy objectives and criteria will be the basis for the legislative and regulatory decision making process. This requirement is intended to dispel the old cliché of ‘legislation for legislation's sake'.

5. Communication Requirement

The Code stipulates that regulatory and legal requirements be communicated in an understandable manner.

There are two aspects to this requirement. The first deals with the actual legislative or regulatory piece. In this instance, the requirement should not be burdensome to the legislative and regulatory process given the government's current ‘plain language' initiatives. The second aspect deals with the communication apart from the actual legislation and regulation. In these situations, the Code would require the regulating communicator be cognizant of the informational needs and comprehension level of the regulated.