Why does BCSA issue monetary penalties?
A monetary penalty is a sanction under the Safety Standards Act. The purpose of issuing a monetary penalty is to increase the level of duty holder participation in the safety system.
When can BCSA issue a monetary penalty?
A safety manager may impose a monetary penalty on a person who fails to comply with any of the following:
- a provision of the Act or a regulation, the contravention of which is stated in the regulations to make the person liable to a monetary penalty;
- a compliance order;
- a discipline order;
- a safety order;
- a term or condition of a licence, permit, certificate or variance;
- a requirement, term or condition of an alternative safety approach.
How much are monetary penalties?
Division 5, Section 40 (4) of the Safety Standards Act outlines maximum monetary penalty amounts as $100,000. BCSA may issue a monetary penalty in any denomination up to this amount, however the lowest monetary penalty issued is $1,000.
In most cases, BCSA issues monetary penalties for a single amount, however legislation allows BCSA to determine a penalty amount for each day that the contravention continues.
What does BCSA do with monetary penalty payments?
By regulation, BCSA is only able to utilize monetary penalty funds for the purpose of duty holder education, such as conducting technical training sessions. Monetary penalties do not fund the operation of BCSA’s Compliance and Enforcement Program.
What is a monetary penalty calculator?
To ensure that BCSA’s decisions to issue monetary penalties are consistent and fair on a case-by-case basis, an objective process is required. The monetary penalty calculator (MPC) prompts safety managers to consider the same factors and encourages consistent evaluation of those factors when determining the severity of the non-compliant behaviour and the resulting penalty amount.
The MPC also allows for the consistent documentation of the thought process/analysis that went into determining the monetary penalty amount. This process provides additional support/evidence for fair decision making should the monetary penalty be appealed via the Appeal Board.
BCSA’s MPC is an Excel-based tool used to assist safety managers in consistently calculating penalty amounts using the factors outlined in legislation .
The factors considered include:
- Enforcement history
- Deliberateness of the action
- Degree to which the action was repeated or continuous
- Degree of economic benefit to the duty holder
- Degree of potential for harm
When does BCSA use the monetary penalty calculator?
BCSA uses the MPC in every instance of issuing a monetary penalty. The penalty amount recommended by the MPC and any decision to vary the amount of the monetary penalty recommended by the MPC are documented in the enforcement file.
Who can access the monetary penalty calculator?
To increase the transparency of the monetary penalty calculation process, the MPC will be available for viewing on BCSA’s website as of July 1, 2017. Note that BCSA’s Compliance and Enforcement Program owns and manages the policy and content of the MPC.