Regulations that have taken a really long time to hit parliament may have to start from scratch.
What happened: Prime Minister Justin Trudeau prorogued parliament alongside his resignation announcement, putting the future of several pieces of legislation relevant to the tech industry up in the air.
- Similar to when parliament is dissolved ahead of an election, any legislation that has not yet received royal assent dies when parliament is prorogued, and all committee activity ceases.
- However, a special rule lets members restart legislation with a simple motion, letting it pick up where it left off instead of having to start from square one.
Yes, but: Opposition leaders have said they will support a non-confidence vote as soon as parliament is back in session at the end of March. That won’t leave time for motions to get legislation moving again, let alone for them to be signed into law, before an election is called.
Zoom out: Legislative measures that have paused touch a lot of corners of the tech sector and digital life:
- A two-year-old bill that would both update Canada’s privacy laws and lay out how AI would be regulated, which has been stalled in committee hearings.
- The Online Harms Act, which the Liberals said they would split the bill in two to separate child protection elements from parts critics claimed were censorship and held up business in parliament for months.
- While the government introduced its long-awaited framework for open banking in the fall economic statement, several details still need to be introduced to parliament.
- A bill that would demand interoperability for medical tech and data, a potential boon for healtech startups.
Why it matters: Experts and the tech industry have been clamouring for this legislation for years, both to spark more innovation and to protect Canadians online. Prorogation means they may have to wait even longer.
Big picture: Canada’s current privacy laws were introduced in 2000, and multiple privacy commissioners have essentially begged parliament to bring the regulations in line with today’s digital reality, which includes threats by irresponsible use of AI.
- Jurisdictions like the U.K., EU, and Australia have had open banking rules in effect for years.
And also: The Canada Revenue Agency said it would continue to apply the higher capital gains tax inclusion rate that has caught the ire of some in the tech sector, even though it has not yet been made law. That’s because the CRA begins applying legislation when it’s proposed, though it will stop if the government decides not to proceed with the measures.