Why does BCSA issue monetary penalties?
When can BCSA issue a monetary penalty?
How much are monetary penalties?
What does BCSA do with monetary penalty payments?
What is a monetary penalty calculator?
When does BCSA use the monetary penalty calculator?
Who can access the monetary penalty calculator?
How does the monetary penalty calculator work?
A monetary penalty is a sanction under the Safety Standards Act. The purpose of issuing a monetary penalty is to influence duty holder behaviour change and increase the level of duty holder participation in the safety system.
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.
It is important to note that BCSA’s compliance and enforcement process is progressive. In some cases, a warning notice or a compliance order may be issued to address non-compliances and a safety order may be issued to address safety hazards.
Division 5, Section 40 (4) of the Safety Standards Act limits the maximum allowable monetary penalty for a contravention to $100,000. BCSA may issue a monetary penalty in any denomination up to this amount.
In most cases, BCSA issues monetary penalties for a single amount. However, where appropriate, BCSA may issue a penalty for each day that the contravention continues.
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.
Safety managers are required by regulation to consider the following criteria before imposing a monetary penalty:
(a) previous enforcement actions under the Safety Standards Act for contraventions of a similar nature by the person;
(b) the extent of the harm, or of the degree of risk of harm, to others as a result of the contravention;
(c) whether the contravention was deliberate;
(d) whether the contravention was repeated or continuous;
(e) the length of time during which the contravention continued;
(f) any economic benefit derived by the person from the contravention.
The monetary penalty calculator (MPC) encourages safety managers to consistently evaluate these factors when determining the severity of the non-compliant behaviour and the resulting penalty amount. The MPC is a tool to assist safety managers in calculating penalty amounts and encourages transparency of decision-making.
BCSA uses the MPC in almost 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.
In order to increase the transparency of the monetary penalty calculation process, the MPC is available for viewing on BCSA’s website. Note that BCSA’s Compliance and Enforcement Program owns and manages the policy and content of the MPC.
The MPC identifies ranges of severity of non-compliant actions based on the criteria for issuing monetary penalties as outlined in the Monetary Penalties Regulation.
Each non-compliant activity (or a group of non-compliant activities) is assessed against each of the criteria on a scale of 0 to 5. The penalty amounts for each level in the calculator are as follows:
- 0 – $0
- 1 – $1,000
- 2 – $2,000
- 3 – $4,000
- 4 – $8,000
- 5 – $16,000
Harsher penalty amounts reflect the criteria in the regulation.
Once a value between 1 and 5 has been established, the MPC will identify a recommended value for the monetary penalty.
In order to provide flexibility in determining a suitable monetary penalty amount, five ranges of penalties have been established.
|Range||Low Value||High Value|
In order to adjust up or down within a range, the safety manager may consider the following factors:
- The degree of efforts made by the duty holder to resolve non-compliances;
- The degree of cooperation of the duty holder in the compliance investigation;
- The general behaviour and interaction of the duty holder with BCSA;
- The scope of the duty holder’s operations;
- The degree of harm created as a result of the activity;
- An assessment of economic benefit beyond BCSA;
- Other factors that are relevant to this instance of non-compliant activity.