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REGULATING FOR GROWTH

MEASURINGNAVIGATINGALIGNINGREDUCING

The Office of Regulatory Affairs and Service Effectiveness 2018/19 ANNUAL REPORT

TABLE OF CONTENTSMessage from the Premier of Nova Scotia ...............................................................................................................................................................1

Message from Nova Scotia’s Chief Regulatory Officer ........................................................................................................................... 2

Our Results ........................................................................................................................................................................................................................................................... 3

Measuring ............................................................................................................................................................................................................................................. 3

Navigating .............................................................................................................................................................................................................................................. 5

Aligning ..................................................................................................................................................................................................................................................... 7

Reducing ................................................................................................................................................................................................................................................. 8

What’s Next .......................................................................................................................................................................................................................................................11

Measuring ............................................................................................................................................................................................................................................11

Navigating ............................................................................................................................................................................................................................................ 12

Aligning ................................................................................................................................................................................................................................................... 13

Appendix .............................................................................................................................................................................................................................................................. 14

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“

Reforming how, when and why government regulates can be a catalyst for business and economic growth. That’s why we created the Office of Regulatory Affairs and Service Effectiveness in 2015. It now plays a central role in our strategy to create the conditions for business and economic growth and prosperity.

The results speak for themselves.

By reducing administrative and compliance burden across departments, businesses are saving more than $34 million every year – surpassing our $25 million target.

Close to 4,000 small businesses and start-ups have used the Office’s Business Navigators, saving time and money so they can open their doors faster.

We’ve aligned regulations with other provinces to make it easier for businesses to access more markets and give customers more choice. But there is more to be done.

In its next phase, the Office will:• reduce unnecessary burden by another $10 million

a year by the end of 2020;

• set a target to reduce the hours citizens and non-profits spend on government forms and processes;

• do a regulatory sweep, removing outdated rules;

• continue to lead the work in the region and nationally to eliminate internal trade barriers;

• deepen our work with Halifax Regional Municipality and partner with municipalities in Cape Breton to further align regulation between orders of government.

A high-performing economy needs a high-functioning and efficient regulatory system. That’s what we’re building - and why we’re building it.

Hon. Stephen McNeilPremier of Nova Scotia

MESSAGE FROM THE PREMIER OF NOVA SCOTIA

A high-performing economy needs a high-functioning and efficient regulatory system.”

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“In 2015, the office of Regulatory Affairs and Service Effectiveness was established with an ambitious mandate for a small Office:

• quantify and reduce the avoidable burden of regulation on Nova Scotia businesses; and

• engage with other governments for improved regulatory alignment.

The purpose of our work is rooted in the role of regulatory reform as a primary lever for economic development and competitiveness. Aligned with this, our objectives are to help improve the environment for business and bring greater coherence to the patchwork of regulatory programs within our province, across our region and country to allow small businesses and start-ups the opportunity to build scale.

Since being established, we have worked hard to deliver results under these objectives.

While we are pleased with the progress that has been made, in many ways we have barely scratched the surface of the economic opportunity before us. Outlined in these pages is a summary of what we have achieved, along with our ambitions for the upcoming year to continue our work to untap this tremendous opportunity.

Many thanks to our small but mighty team, our colleagues across government, and our countless stakeholders. We could not have made this progress without your commitment, leadership and support.

Fred Crooks Chief Regulatory Officer

MESSAGE FROM NOVA SCOTIA’S CHIEF REGULATORY OFFICER

The purpose of our work is rooted in the role of regulatory reform as a primary lever for economic development and competitiveness.”

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MEASURING

OURRESULTS

Reduced burden of regulation in Nova Scotia • We designed and implemented a best practice business

impact assessment model applied to every legislative and regulatory proposal affecting business.

• In January 2019, the Office reported on more than 60 regulatory initiatives estimated to save businesses $34 million (net) annually, exceeding its $25 million target, set in 2017.

Over 85% of recommendations implemented from the Nova Scotia Tax and Regulatory Review • More than 85% of the recommendations in the 2014

review that fall within the mandate of the Office have been implemented; the balance are in progress.

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FOR A TOTAL SAVINGS OF:

$34,389,600(as of December 31, 2018)

TARGET:

$25,000,000 (net) burden reduction to business by December 2018

% OF TARGET ACHIEVED:

138% (as of December 31, 2018)

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NAVIGATINGBusiness Navigators, a national first

• Business Navigation is a high-touch, personal and one-stop service for small businesses and start-ups to help them through the regulatory maze of government.

• To date, navigators have helped close to 4,000 Nova Scotia businesses, collectively saving those businesses an estimated $3 million and, on average, each business 10 hours.

From left to right:Evangeline (Vange) Chrisovergis, Andre MacLean, Ann Baxter

9.5/10 CLIENT SATISFACTION

I can’t say enough good things about Andre and this program! I have told everyone I know who is starting a business about this great service!Lori Schroeder, Graphic Design and Branding

Ann heard me and listened. Professional and friendly is a rare combination and she has both qualities.Brenda M. MacDonald, Sodan Soaps

Evangeline was fantastic! She was beyond helpful, professional and supportive. You can tell that she loves what she does...it shines through in her work!

Temi Bank-Oni, Temi Bakes

“

”

Business Navigators have assisted Nova Scotia businesses

34% Existing Business

66% Start-ups

WHERE BUSINESSES THAT HAVE USED THE NAVIGATION SERVICE ARE BASED

OUTSIDE NS: 8%

OTHER: 7%

HRM: 50%

CAPE BRETON: 10%

MAINLAND NS: 25%

times since their launch in 2017. 4,000

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ALIGNINGNova Scotia leadership on internal trade

• The Office guided the Atlantic provinces to a regulatory partnership, with mirror legislation and regulatory charters, to harmonize regulations and bring down trade barriers.

• Together, we have aligned regulations in several areas, including in transportation, occupational health and safety, technical safety and employment standards.

• Nova Scotia has played a prominent role on the Regulatory Reconciliation and Cooperation Table (RCT), created by the Canadian Free Trade Agreement to reconcile regulations across the country. In late 2018, Nova Scotia announced it would take the following actions:

Alcohol: remove exemption limits for the transport of alcohol into our province from another province for personal use.

Business Registration: waive business registration and renewal fees for businesses already registered in another province or territory, joining only Ontario.

Occupational Health and Safety: adopt common standards in specific areas of OH&S to make it easier for businesses and workers to operate in different jurisdictions.

Transportation: align allowable weights between specified tires to make it more practical for companies to use wide-base tires and reduce greenhouse gas emissions due to improved fuel economy.

Technical Safety: mutually recognize the review of pressure equipment design to end multiple reviews across the country.

First Provincial/Municipal partnership on streamlined regulation

• Established a ground-breaking partnership on regulatory reform with Halifax Regional Municipality (HRM).

• The partnership has received recognition from external stakeholders, such as the Canadian Federation of Independent Business, which awarded the partnership with a “Golden Scissors” award for its intergovernmental approach.

• The partnership achieved the following:

Adoption by HRM of principles based on the Charter of Principles adopted by Nova Scotia and the Atlantic provinces;

Adoption by HRM of a customer service strategy for business that includes linking with Nova Scotia’s Business Navigation service;

Implementation of improvements to municipal regulation, which include:

• streamlining sidewalk café application;

• making it easier for business to understand and navigate sign regulation and the permitting process;

• monitoring service delivery for processing temporary sign licenses, permanent sign permits and sidewalk café licenses;

• streamlining license applications for temporary installations; and

• amendments to the noise by-law for recurring special events.

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REDUCING Barriers for Business: Improving Our Grade

A-A

B-C+D-

2019Year Grade

Source: Canadian Federation of Independent Business (CFIB) Red Tape Report Card 2015 - 2019

Office of Regulatory Affairs and Service

Effectiveness created

2018201720162015

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Since opening its doors four years ago, the Office has become a leading force in Canada, modernizing how government interacts with business. Remarkably, this small team is literally improving how government works by driving the principles of efficiency, better customer service, measurement and accountability. While there’s still lots of work to do, Nova Scotia is now a pacesetter in reducing red tape, opening up trade between provinces and improving how small- and medium-size businesses engage with both our provincial and municipal governments.

Jordi MorganAtlantic Vice-President, Canadian Federation of Independent Business

“

”

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WHAT’S NEXT

MEASURINGWe will expand the scope of how and what we measure and reduce.

By the end of 2020, government will:

• Reduce undue burden to business by $10 million (net). Burden reduction efforts will continue to be presented as ‘net’; costs will be offset by equivalent savings. Once achieved and added to the $34 million savings attained in 2017 and 2018, government will have reduced the annual regulatory burden to business by nearly $45 million.

• Expand our work to pilot a target to save citizens time on administrative burden. An hours-saved target is a Canadian first. Working with the Department of Service Nova Scotia and Internal Services, we estimated the impact of recent improvements such as expanding the availability of digital services (vehicle permits, birth and marriage certificates, etc.) and a substantial reduction of wait times at Access Centres. Using BIA methodology, we estimate such improvements save citizens 250,000 hours annually. To build on this, we have set a target to reduce adminis-trative burden on citizens by an additional 50,000 hours. When achieved, service and process improvements driven by the Department of Service Nova Scotia and Internal Services will save Nova Scotians 300,000 hours annually. Based on the pilot’s outcome, we’ll look to expand this to other areas.

• Lead and coordinate a cross-government clean-up of redundant or outdated regulations.

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NAVIGATING Building on the success of our Business Navigation Service, we hope to expand our outreach to Nova Scotia small businesses and entrepreneurs by proactively calling them during their critical start-up period.

We will pilot an Inspection Navigation Service, beginning with one inspection navigator. Our aim is to help business, particularly start-ups, understand and prepare them for required and scheduled inspections. We may also coordinate inspections across departments and/or different levels of government. It will be a Canadian first.

The pilot will begin with businesses based in HRM.

The inspection navigator will also help develop customer service training, specifically for inspectors. The service training pilot will begin in late 2019.

• Continue to monitor and update the regulatory requirement count completed in 2018 .

• Test what costs or savings regulatory changes have within government, in partnership with HRM.

We will examine options for lightening the regulatory and administrative burden on health care professionals, beginning first with a regional license for physicians.

We will also test, with a departmental partner, ‘open regulation’, allowing for greater stakeholder input, at different stages, of regulatory development.

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ALIGNINGWorking with Other GovernmentsWe will work to expand the scope and pace of regional alignment of regulatory programs in Atlantic Canada. Areas currently under exploration include mobile registration for workers’ compensation, physician regional licensing, mutual recognition for specific areas of equipment and training in OH&S and the introduction of Atlantic Technical Safety legislation.

We will provide ongoing support for Nova Scotia's national leadership on reducing barriers to internal trade, as Chair of the RCT. In partnership with our federal-provincial-territorial counterparts, we have published a 29-item workplan for 2019-20 which includes greater regulatory alignment in several areas, including workplace first aid training, fall protection, food and meat inspection, electronic logging devices for transportation, and workers’ compensation registration.

The plan also includes areas for regulatory cooperation to avoid adding to the patchwork of regulatory differences across jurisdictions. Areas for cooperation include prompt payment legislation and regulation, safety testing for autonomous vehicles and entry-level truck driver certification.

Up to five new reconciliation agreements will be delivered by end of 2019:

• Aligning building, fire, plumbing, and energy efficiency codes;

• Aligning regulations for energy efficiency standards for household appliances;

• Removing duplication/differences between federal and provincial regulation for aquaculture marking;

• Aligning provincial and national regulations for upholstery and stuffed articles; and

• Launching the rollout of an integrated system for extra-provincial corporate registration.

We will deepen our partnership with HRM to:

• Make it easier for businesses to work in the right-of-way (e.g., sidewalks or the space above sidewalks) to conduct routine maintenance;

• Reduce planning application times for things like construction permits and variance applications;

• Roll out online solutions for permits, licencing and compliance; and

• Establish joint provincial-municipal tables to improve coordination of regulatory programs.

The Office will expand our municipal partnership to support and work with Cape Breton municipalities to align some specific business regulations to make operation and expansion easier for Island businesses.

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APPENDIXAn in-depth look at regulatory change

and reduction over the past year.

DEPARTMENT APPROVED AND / OR IMPLEMENTED REGULATORY MEASURE ESTIMATED SAVINGS (COST) TO BUSINESS*

Service Nova Scotia Amendments to Residential Tenancies Act $ 826,000

Changes to Special Move Permit Application form for Carriers for milk and waste haulers during Spring Weight Restrictions

$ 60,000

Remove requirement for the filing of duplicate subdivision and condo plans $ 370,000

Modernization of Registry of Joint Stocks Companies $ 7,170,000

Amendments to the Consumer Protection Act $ (77,000)

Liquor Licensing Criminal Record Checks $ 28,000

Electronic Vehicle Registration for Dealers $ 839,000

Telephone Hearing alternative for Residential Tenancies $ 130,000

Strike off companies suspended due to lack of payment $ 1,800,000

Compliance Officer Authority to Take Affidavits to Assist Liquor Licensees $ 5,000

Petroleum Price Regulations $ 47,000

Eliminate Requirements for a Permanent Place of Business for Lenders $ 957,000

Residential Tenancies Act Amendments $ 1,250,000

Reduction of Incorporation Fee under Companies Act $ 402,900

Amendments to Corporation Registration Act $ 355,000

Affirmation to be Accepted for Residential Tenancies Hearings $ 80,000

Bring Form 45 Online $ 114,000

Mortgage Act Regulations $ (1,677,000)

Transportation and Infrastructure Renewal

Innovation HUB for Forest Transportation in NS – Phase 1 $ 2,300,000

Innovation HUB for Transportation in NS – Phase 2 $ 7,000,000

Environment Clarifying the Definition of Public Drinking Water Supplier $ 10,000

Removing duplicative requirements for Lead-Acid Battery Waste and Asbestos Waste Storage $ 16,000

Mercury Diversion Program Extension $ 1,300,000

System Improvements for Notification and Approval Processing $ 1,000,000

On-site Services Advisor Board Regulations Repeal $ 1,000

Finance and Treasury Board Retail Sales Mark Up $ 805,000

Fuel Tax Credit $ 1,600,000

Department of Labour and Advanced Education

Removing tuition and fees for technical training for apprentices $ 386,000

Presumptive Coverage for Post-Traumatic Stress Disorder (PTSD) for Emergency Workers $ (300,000)

Updating Labour Standards Code Awareness Materials Relating to Issuing Final Pay Cheques $ 636,000

Amendment Stipulating Canada Day will be Recognized on July 1 for Business Closure $ 16,000

Co-op and GTO: Improvements to Approval and Claims Processes $ 5,000

Department of Labour and Advanced Education

Apprenticeship Management System $ 1,080,000

Changes to Frequency and Cost of Oil Burner Technician Licensing Fee $ (8,800)

Domestic Violence Leave $ (1,164,000)

Labour Standards Code General Regulations Reducing Pregnancy and Parental Leave Eligibility Period $ (285,000)

Private Career Colleges – LaMPSS Administration Platform $ 23,000

Labour Board Forms Modernization $ 31,000

Communications Technician Trade Regulations $ 14,000

WIPSI: Program Improvements to Approval and Claims Process $ 9,000

Employer Registration Certification Application $ 8,000

EXEMPTIONS

Environment Safe Body Art Act and Regulations $ (400,000)

Cap and Trade and Supporting Regulations $ (525,000)

Finance and Treasury Board Basic Personal Amount Supplement $ (400,000)

Labour and Advanced Education Adoption of CSA Fuel Safety Codes $ (63,000)

Amendments to Labour Standards Code to Align with Federal EI $ (533,000)

Workers’ Compensation Board

Secure Messaging with Employers $ 1,620,000

Elimination of special protection accounts for family members $ 80,000

New process for annual sub-contractor reporting $ 252,000

Electronic Filing of Injury Reports $ 940,000

Agriculture Initiatives Under the Natural Products Marketing Council $ 53,000

Poultry Insurance Plan Amendments $ (1,000)

Farm Loan Board Regulations Amendments $ 132,000

Fisheries and Aquaculture

Mandatory Quality Training for Fish Buyers $ (18,000)

Promotional Awareness and Coordination of delivery throughout Nova Scotia by the Nova Scotia Fisheries Sector Council (to offset costs of mandatory quality training for fish buyers) $ 18,000

Amendments to Fisheries and Coastal Resources Act with Respect to Aquaculture $ 1,500

Fisheries and Aquaculture Loan Regulations Amendments $ 118,000

Justice Builders Lien Act $ 440,000

Fees for Firearms Training $ (1,000)

Regulatory Affairs and Service Effectiveness Business Navigator Service $ 3,400,000

Energy Marine Renewable Energy Act $ (215,000)

Mineral Resource Regulations $ 175,000

Internal Services Ariba e-bidding $ 233,000

Total Burden Reduction Savings: $ 34,389,600 (net)

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Office of Regulatory Affairs and Service EffectivenessSuite 302, Collins Bank Building, 1883 Upper Water Street

Halifax, NS B3J 1S9, Canada, 902-424-1513