What are administrative penalties​?

Question

This is from Building Code Act, 1992

Administrative penalties​ 15.4.1 (1) A municipality may require a person, subject to such conditions as the municipality considers appropriate, to pay an administrative penalty if the municipality is satisfied that the person has failed to comply with,

(a) a by-law of the municipality passed under section 15.1; or

(b) an order of an officer under subsection 15.2 (2) as deemed confirmed or as confirmed or modified by the committee or a judge under section 15.3. 2017, c. 34, Sched. 2, s. 10.

Purpose of administrative penalties​ (2) The purpose of a system of administrative penalties established by a municipality under this section shall be to assist the municipality in promoting compliance with a by-law under section 15.1 or an order under subsection 15.2 (2). 2017, c. 34, Sched. 2, s. 10.

In legal concept, what is "administrative penalties"? Is it in contrast with a fine by a court order?

Answer 1

An administrative penalty is a civil rather than a criminal sanction

They are used in regulated industries (like building) and provide a non-judicial way for the executive to ensure compliance with a regulation, or rather, the punish non compliance without needing to prove criminality in court.

Because they are civil rather than criminal, which the Canadian Supreme Court affirmed in Guindon v Canada, the accused is not afforded the same protections as someone accused of a crime is. In particular, they do not get the benefit of s.11 of the Canadian Charter of Rights and Freedoms. This means that they have no presumption of innocence, evidence is assessed on the balance of probabilities standard rather than the beyond reasonable doubt standard, and they can be compelled to provide evidence against their own interests.

Further, the matters are heard in administrative tribunals rather than courts and are subject to administrative, rather than judicial review. Courts can only be involved to ensure the administrative process was correctly followed, not to substitute their discretion for that of the administrative decision maker.

When an administrative monetary penalty crosses the line and becomes a criminal sanction is an open question. In general, because they are applied only to specific industries in which the sanctioned person voluntarily engages rather than applied to the population as a whole, they seem to be constitutionally ok.