On July 3, 2024, Transport Canada introduced administrative monetary penalties for non-compliance with the Passenger Rail Transportation Security Regulations, as well as certain prohibitions under the Railway Safety Act.
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Background
Interference with railway property, systems, and infrastructure can have major impacts on public safety, the environment, and the economy.
To enhance the security of the passenger rail transportation network in Canada, Transport Canada introduced the Passenger Rail Transportation Security Regulations in 2020. The Passenger Rail Transportation Security Regulations require railway companies — passenger companies, small passenger companies, and host companies — to effectively manage security risks by implementing risk-based security practices.
Transport Canada further strengthened its passenger rail safety and security framework by adding administrative monetary penalties (fines) to its enforcement regime. Provisions in the Railway Safety Act that relate to trespassing (section 26.1), interfering with railway operations (section 26.2), and cooperating with enforcement officers (subsection 40.11(5)) are now designated under the Railway Safety Administrative Monetary Penalties Regulations, along with 79 security provisions included under the Passenger Rail Transportation Security Regulations.
An administrative monetary penalty is a monetary penalty (fine) issued to a corporation or individual for a non-compliance of a designated provision of legislation administered and enforced by Transport Canada enforcement officers.
Transport Canada’s administrative monetary penalty regime is designed to encourage corporations and individuals to comply with the law and deter non-compliance by introducing fines.
Scope
Transport Canada can issue an administrative monetary penalty to a corporation or individual for non-compliance with the Railway Safety Act as well as associated regulations and rules that are designated under Schedule 1 of the Railway Safety Administrative Monetary Penalties Regulations.
With the amendments, the provisions listed below are now designated. This means that Transport Canada can issue administrative monetary penalties to corporations and individuals that are not compliant with:
- three provisions of the Railway Safety Act — sections 26.1 and 26.2 and subsection 40.11(5) — that relate to trespassing, interfering with railway operations, and cooperating with enforcement officers; and
- 79 security provisions of the Passenger Rail Transportation Security Regulations listed in Appendix A, which set out specific security requirements that must be met by passenger companies and host companies.
There are three distinct maximum payable amounts under the categories below. The maximum amount is $50,000 for an individual and $250,000 for a corporation.
| Maximum amount payable ($) | Maximum amount payable ($) | ||
|---|---|---|---|
| Category | Risk Level | Individual | Corporation |
| A | Low | 5,000 | 25,000 |
| B | Medium | 25,000 | 125,000 |
| C | High | 50,000 | 250,000 |
A range exists for each category of risk and an administrative monetary penalty can be imposed for any amount as long as it doesn’t exceed the maximum amount for its category.
An example of Category A includes non-compliance with subsection 3(2) of the Passenger Rail Transportation Security Regulations, which states,
“The passenger company and host company must provide the Minister with:
- the name and job title of the rail security coordinator or acting rail security coordinator; and
- the 24-hour contact information for the rail security coordinator or acting rail security coordinator.”
An example of Category B includes non-compliance with subsection 5(2) of the Passenger Rail Transportation Security Regulations, which states,
“A passenger company must establish and document a process with respect to security inspections, including:
- a procedure for conducting security inspections;
- a method for determining whether security has been compromised;
- a method for determining whether additional security inspections are necessary if, having regard to the circumstances, security could be compromised;
- a method for addressing the situation, if security has been compromised, before the train enters into service; and
- a method for preventing unauthorized interference with the train after the inspection and until passengers board the train.”
An example of Category C includes non-compliance with subsection 5(3) of the Passenger Rail Transportation Security Regulations, which states,
“In order to ensure that there are no security concerns related to passenger rail transportation, a passenger company must ensure that security inspections consist of both a ground-level visual inspection of the exterior of the train and an inspection of the interior of each car and are carried out in accordance with the process set out in subsection (2).”
For a complete list of the provisions that have been added to the Railway Safety Administrative Monetary Penalties Regulations, along with their maximum payable amounts, see Appendix A.
Implementation
Transport Canada takes a graduated and proportionate enforcement approach to educate, encourage compliance, and, when necessary, penalize those who contravene the Railway Safety Act and its associated regulations.
For non-compliance with a designated provision of legislation, Transport Canada enforcement officers will consider several factors before taking enforcement action, such as:
- degree of harm caused,
- degree of negligence or deliberate conduct,
- compliance history, and
- willingness to cooperate with officials.
Enforcement actions range from verbal warnings, written warnings, administrative monetary penalties, and prosecution. In general, non-compliance that’s administrative in nature would be considered low risk, while non-compliance related to developing and implementing security procedures would be considered higher risk.
Any corporation or individual issued an administrative monetary penalty can request the Transportation Appeal Tribunal of Canada to review the violation or the fine.
Contact information
Email: TC.Railsecurity-sureteferroviaire.TC@tc.gc.ca
Additional resources
- List of Railway Administrative Monetary Penalties Issued
- Canada Gazette, Part I, Volume 156, Number 27: Regulations Amending the Railway Safety Administrative Monetary Penalties Regulations
- Canada Gazette, Part II, Volume 158, Number 14: Regulations Amending the Railway Safety Administrative Monetary Penalties Regulations
- Examples of Proposed Administrative Monetary Penalties (Transport Canada)
- Rail Safety – FAQs