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Payments to Each Province for Research and Development (Medicine) Regulations (P.C. 1988-393) 3 March 1988, Canada

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16/3/88 Canada Gazelle Part II, Vol. I22, No. 6 Gazelle du Canada Partie II, Vol. I 22, N" 6 SOR/DORS/88-167

Registration SOR/88-167 3 March, 1988

AN ACT TO AMEND THE PATENT ACT AND TO PROVIDE FOR CERTAIN MATTERS IN RELATION THERETO

Payments to each Province for Research and Development (Medicine) Regulations

P.C. 1988-393 3 March, 1988

Her Excellency the Governor General in Council, on the recommendation of the Minister of Consumer and Corporate Affairs and the Treasury Board, pursuant to subsection 31 (2) of An Act to amend the Patent Act and to provide for certain matters in relation thereto•, is pleased hereby to make the annexed Regulations respecting payments to each province for the purpose of research and development relating to medicine.

REGULATIONS RESPECTING PAYMENTS TO EACH PROVINCE FOR THE PURPOSE OF RESEARCH AND

DEVELOPMENT RELATING TO MEDICINE

Short Title

I. These Regulations may be cited as the Payments to each Province for Research and Development (Medicine) Regula- tions.

Interpretation

2. In these Regulations, "Act" means An Act to amend the Patent Act and to provide for certain matters in relation thereto. (Loi)

Payment

3. Payment of any amount under subsection 3I(I) of the Act shall be made not later than the end of each fiscal year in respect of which the amount is payable.

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part ofthe Regulations.)

Description These Regulations prescribe the times for making payments

totalling $25 million annually for four years to the provinces (provinces include territories as stated in Section 28 of the Interpretation Act). These payments, which are for research and development relating to medicine, are required by subsec- tion 31 of An Act to amend the Patent Act. The Regulations specify that the payments to the provinces will be made not

• S.C. 1987, C. 41

1588

Enregistrement DORS/88-167 3 mars 1988

LOI MODIFIANT LA LOI SUR LES BREVETS ET PREVOYANT CERTAINES DISPOSITIONS CONNEXES

Reglement sur les versements aux provinces pour la recherche et le developpement (medicaments)

C.P. 1988-393 3 mars 1988

Sur avis conforme du ministre de la Consommation et des Corporations et du Conseil du Tresor et en vertu du paragra- phe 31 (2) de la Loi modifiant la Loi sur Jes brevets et pre- voyant certaines dispositions connexes•, ii plait a Son Excel- lence le Gouverneur general en conseil de prendre le Reglement concernant le versement aux provinces pour la recherche et le developpement en matiere de medicaments, ci- apres.

REGLEMENT CONCERNANT LE VERSEMENT AUX PROVINCES POUR LA RECHERCHE ET LE DEVE-

LOPPEMENT EN MATIERE DE MEDICAMENTS

Titre abrege

I. Reglement sur /es versements aux provinces pour la recherche et le developpement (medicaments).

Definition

2. La definition qui suit s'applique au present reglement. «Loi» La Loi modifiant la Loi sur /es brevets et prevoyant cer-

taines dispositions connexes (Act).

Versement

3. Tout versement vise au paragraphe 31 (I) de la Loi est fail au plus tard ala fin de l'exercice al'egard duquel le versement doit etre effectuee.

RESUME DE L'ETUDE D'IMPACT DE LA REGLEMENTATION

(Ce resume nefait pas partie du reglement.)

Description Le present reglement prescrit Jes dates de versement des 25

millions de dollars qui seront verses chaque annee pendant quatre ans aux provinces (le terme «provinces» inclut Jes terri- toires conformement a )'article 28 de la Loi d'interpretation). Ces paiements, verses au titre de la recherche et du developpe- ment pharmaceutiques, sont prescrits en vertu de !'article 31 de la Loi modifiant la Loi sur /es brevets. Le reglement

• S.C. I987, ch. 41

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16/3/88 Canada Gazette Part II, Vol. I22. No. 6 Gazette du Canada Partie II, Vol. I22, N" 6 SOR/DORS/88-167

later than the end of the fiscal year to which the payment applies. As the payments will be made in the normal manner for making grants to provinces, it is deemed unnecessary to regulate the manner for undertaking such conventional finan- cial transactions. The Minister of Consumer and Corporate Affairs will transfer the appropriate payments to each of the provinces (and territories) by cheque before the end of March of each of the four years ( 1987-88, 1988-89, 1989-90 and 1990-9 I) to which the payments apply. Thus, the first cheques will be disbursed in March, 1988 and the last in March, 1991.

Alternatives Considered Two alternatives were considered. The first involved making

payments not later than the end of April of each of the four years in question. This was rejected as it would delay payments to the provinces and would unnecessarily complicate the Department's financial records.

The other alternative considered was to require the Minister to make payments on March 31 of each of the four fiscal peri- ods. This, of course, greatly reduces the Minister's flexibility.

Prescribing that payments be made not later than the end of the fiscal period to which payment applies, enables the Minis- ter, if he so chooses, to make payments earlier than the end of the fiscal period.

Consistency with Regulatory Policy and Citizens' Code

The Regulations are consistent with the Regulatory Policy and the Citizens' Code of Regulatory Fairness with the excep- tion that an opportunity for consultation was not given to the provinces on this initiative which directly affects their inter- ests, and early notice was not given in the Federal Regulatory Plan.

Anticipated Impact A total of 100 million dollars will be given to the Provincial

Governments over a period of 4 years. Provinces will receive a portion of the total based on their population as determined by the Chief Statistician. It is anticipated that, as a result of the grants, the provinces will spend more on research and develop- ment related to medicine. Since the transfer will have no con- dition attached, the specific nature of any research conducted by the provinces will not be monitored. The provision of these funds will serve as a supplement to other R&D created by the passage of compulsory licensing, a provision of An Act to amend the Patent Act.

Consultation

These Regulations have no direct bearing on the Canadian public and encourage research and development by the prov- inces. While no consultation was made with the provinces regarding the timing of the payments, these Regulations estab- lish the best possible procedure by assuring that payments will be made in a timely fashion and in a manner which utilizes well-established procedures for making payments to provinces.

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d'application precise que les versements devront etre verses aux provinces_ au plus tard a la fin de l'exercice auquel ils s'appliquent. Etant donne que !es versements suivront la filiere normale des subventions, ii n'a pas ete juge necessaire de regle- menter les modalites de transactions financieres aussi conven- tionnelles. Le ministre de la Consommation et des Corpora- tions transferera Jes versements appropries a chaque province (et territoire) en Jui faisant un cheque avant la fin mars de chacun des quatre exercices (1987-1988, 1988-1989, 1989- 1990 et 1990-199 l) auquel les paiements s'appliquent. Ainsi, les premiers cheques seront distribues en mars 1988, et les der- niers, en mars 1991.

Autres mesures envisagees Deux scenarios ont etc envisages. Le premier consistant a

verser les paiements au plus tard a la fin du mois d'avril de chacune des quatre annees visees. Cette formule a etc rejetee, car elle aurait retarde le versement des paiements aux provin- ces et aurait etc source de complications inutiles au niveau des dossiers financiers du ministere.

Suivant l'autre scenario envisage, le ministre aurait etc tenu de verser les paiements aux provinces le 31 mars de chacune des quatre periodes fiscales. Or, une telle mesure reduirait con- siderablement la marge de mana:uvre du ministre.

Le fait de prescrire que Ies paiements soient verses au plus tard ala fin de la periode fiscale alaquelle ils s'appliquent per- met au ministre, s'il en decide ainsi, de remettre les versemets plus tot.

Conformite a la Politique de reglementation et au Code d'equite

Le reglement est conforme a la Politique de reglementation et au Code du citoyen en matiere d'equite de la reglementation sauf que les provinces ne se sont pas vues accorder !'occasion de deliberer sur cette question qui les touche directement. Le reilement n'a pas fait l'objet d'une publication prealable dans l'Etat des projets de reglementation.

Repercussions previsibles Au total, 100 millions de dollars seront distribues aux gou-

vernements provinciaux sur une periode de quatre ans. La part de chaque province sera calculee en fonction de sa population totale, determinee par le statisticien en chef. Grace aces sub- ventions, !es provinces devraient consacrer davantage a la recherche et au developpement pharmaceutiques. Etant donne que !es versements ne sont assortis d'aucunc condition, la nature precise des recherches realisees par les provinces ne sera pas verifiee. Ces fonds viendront completer les autres fonds consacres a la recherche et au developpement crees grace a !'adoption des dispositions sur les licences obligatoires, disposi- tions de la Loi modifiant la Loi sur Jes brevets.

Consultation Le reglement ne touche en aucune fa~on le public canadien

et encourage la recherche et le devcloppement dans !es provin- ces. Aucune consultation n'a ete tenue avec les provinces au sujet des dates de versemcnt, mais le reglement etablit la meil- leure fa~on de proceder en garantissant que les paiements seront verses en temps opportun et suivant des modalites deja bien etablies.

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16/3/88 Canada Gazelle Pan II, Vol. I22. No. 6 Gazette du Canada Partie II, Vol. I22, N" 6 SOR/DORS/88-167

Compliance

As these payments, mandated by Parliament, do not provide criteria for eligibility, compliance is not required. The transfer of these funds to the provinces is unconditional as these pay- ments are a statutory obligation.

For further information, contact:

Mr. F. H. Adams Director Operational Planning & Research Intellectual Property Directorate Consumer and Corporate Affairs Canada Hull, Quebec KIA OC9 (819) 994-4779

QUEEN'S PRINTER FOR CANADA, OTTAWA, 1988

1590

Mecanismes de surveillance a prevoir Comme ces paiements, autorises par le Parlement, ne repo-

sent sur aucun critere d'admissibilite, aucune surveillance n'est requise. Le transfert de ces fonds aux provinces n'est assorti d'aucune condition, car ces paiements obeissent a une obliga- tion prevue par la loi.

Pour de plus amp/es informations contacter: M. F. H. Adams Directeur de la Planification operationnelle et de la recher- che Bureau de la Propriete intellectuelle Consommation et Corporations Canada Hull (Quebec) KIA OC9 (819) 994-4779

IMPRIMEUR DE LA REINE POUR LE CANADA.OTTAWA, 1988

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