Administrative Penalties on Broadband Development

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Ontario Regulation 324/23, established under the Building Broadband Faster Act of 2021. This regulation focuses on administrative penalties associated with violations of specific provisions of the Act, aiming to improve the penalty process for non-compliance and support the government’s broader goal of improving broadband infrastructure across Ontario. It specifically addresses the administrative penalties outlined in Section 24 of the Building Broadband Faster Act, establishing a framework for their application to ensure accountability among those involved in broadband development projects. The regulation prescribes key provisions—Sections 5, 9, and 20.1 of the Act—that clarify areas of non-compliance that may incur penalties.

A significant aspect of the regulation is that administrative penalties can only be imposed within one year of a violation occurring, which prevents individuals and companies from being held liable indefinitely and provides a clear enforcement timeline. When determining the amount of an administrative penalty, the Minister considers several factors: the severity of the violation, its impact on public interests and project integrity, the violator’s compliance history, any remedial actions taken, potential economic benefits derived from the violation, and any other relevant criteria deemed necessary by the Minister. These considerations ensure that penalties are fair and proportional to the nature and impact of the contravention.

Moreover, when a penalty is imposed, the order must include specific information to maintain transparency and accountability. This includes the name of the individual or entity receiving the penalty, a detailed description of the violation and the relevant law broken, the dates of the violation, the total penalty amount, payment instructions—including a 30-day timeframe for payments to the Minister of Finance—and information about the right to request a review of the penalty order. This structured approach helps ensure that those penalized understand the nature of the violation and their payment obligations.

The regulation also clarifies how an order imposing an administrative penalty is deemed served. If delivered in person, it is considered served on the same day; if sent by email, it is served on the day of transmission; and if sent via registered mail, it is deemed served three days after mailing. This clarity helps prevent disputes regarding the timely receipt of penalty orders.

Individuals or entities receiving an administrative penalty have the right to seek a review of the order within 15 days of receipt. This review will be conducted by a member of the Ontario Land Tribunal, ensuring an impartial assessment of the case. Ontario Regulation 324/23 comes into force immediately upon filing, reflecting the urgency of enhancing broadband access and ensuring compliance with associated laws.

Ontario (324/23) October 18, 2023