Canada Gazette, Part I, Volume 158, Number 26: Regulations Amending the Immigration and Refugee Protection Regulations (Designated Learning Institutions)

June 29, 2024

Statutory authority
Immigration and Refugee Protection Act

Sponsoring department
Department of Citizenship and Immigration

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Issues

Under the existing Immigration and Refugee Protection Regulations (IRPR), Immigration, Refugees and Citizenship Canada (IRCC) and the provinces and territories share responsibility for international students. Under Memoranda of Understanding (MOUs), provinces and territories (PTs) establish the minimum common standards with IRCC for designating educational institutions, called designated learning institutions (DLIs) that are allowed to receive international students, and to remove designation status where applicable. IRCC is responsible for processing study permit applications for international students who have been accepted to attend a DLI.

Three issues have been identified that impact program integrity

The IRPR also limits the number of hours eligible international students may work off campus without a work permit to 20 hours per week during regular academic sessions. International students and some stakeholders have indicated that 20 hours of work per week is not sufficient to keep up with the cost of living in Canada.

Background

The administration of the International Student Program (ISP) is a shared responsibility between IRCC and Provinces and Territories (PTs). For its part, IRCC is responsible for setting policy regarding the entry of international students, establishing the conditions study permit holders must meet while in Canada, and deciding whether a study permit should be issued to an applicant.

For DLIs to receive international students to study in Canada, they must be designated by the province or territory based on a set of standards embedded in the MOUs with each PT. PTs also set their own standards that DLIs must meet in order to be designated by their jurisdiction. PTs inform IRCC when institutions need to be added or removed from the public DLI list, which enumerates the institutions who are allowed to receive students within a given province or territory. Quebec currently designates its own DLIs as per its own regulations, therefore the province is exempted from the requirement to enter into an MOU with IRCC.

In 2023, Canada welcomed an all-time high number of international students, with approximately 1 040 000 primary, secondary, and post-secondary study permit holders, up 151% from 352 305 study permit holders in 2015. In 2023, the Department received 914 405 applications for new study permits, compared to 713 775 in 2022, which represents a 28% increase. This spike in demand can be attributed to a number of factors, including greater interest to come study, and then potentially work, in Canada, as well as increased promotion and marketing activities to identify Canada as a choice destination for pursuing post-secondary studies.

Under existing regulations, international students may change their DLI at any given time, but IRCC recommends that they inform the Department through a secure portal. This is an administrative practice and currently it cannot be enforced. International students that switch DLIs without notification, could be reported for non-attendance at their original DLI and could be found non-compliant with their permit conditions, which could negatively impact their ability to obtain a subsequent study permit. It is in the collective interest of clients, DLIs and levels of government, to have mandatory and accurate information on the student’s current DLI.

Since 2014, students who meet certain criteria as specified by the regulations have been authorized to work 20 hours off campus without a work permit. Starting in November 2022, the Minister of Citizenship and Immigration issued a series of public policies, which included waiving the 20 hour per week limit for eligible post-secondary students. The public policies were intended as a temporary measure to fill post-pandemic labour market needs, as international students are primarily admitted to Canada to study, not to work. These public policies expired on April 30, 2024. However, there is a need to reassess the appropriate balance between the need some students have to work for supplementary income while respecting the purpose of a study permit, ensuring academic outcomes of the student and remaining consistent with other like-minded countries that have limits on work hours for international students. For example, the UK, New Zealand, and Ireland allow certain students to work up to 20 hours per week, while Australia changed its work hours limit in 2023 to 48 hours every two weeks. A review of these factors has led to the proposal to moderately increase work hours to a maximum of 24 hours.

Objective

The main objective of the proposed amendments is to provide IRCC with the appropriate tools to ensure that study permits are issued to those who will be attending genuine DLIs that comply with both federal and provincial requirements and to verify that students are complying with their study permit conditions. Additionally, IRCC requires the proper means to take action against DLIs who fail to comply with the proposed regulations.

Finally, the proposed amendments also seek to allow international students to work four additional hours off campus, raising the maximum to 24 hours per week, to help offset the cost of living in Canada.

Description

The proposed regulatory amendments apply exclusively to post-secondary DLIs and post-secondary international students. Any reference to DLIs in this document refers to institutions at the post-secondary level only.

Conditions on DLIs

The proposed regulations would require that post-secondary DLIs comply with the following conditions, using the electronic means specified by the Minister:

The proposed regulations allow the Minister, based on their own initiative or at the request of the DLI, to extend the time provided so that the institution can confirm, provide information, or provide a report, if the Minister determines that

Verification of DLI compliance with conditions

The proposed regulations would allow an IRCC officer to verify a DLI’s compliance with the conditions if

For the purposes of verifying compliance, the proposed regulations would allow the officer to require that the DLI provide any relevant documents and make a representative available to answer questions, at a time and place specified by the officer.

Under the proposed regulations, a failure to comply with a condition would be justified if the DLI made all reasonable efforts to comply or if the non-compliance is a result of the DLI acting in good faith.

The proposed regulations would require an officer, who determines that a DLI is non-compliant with a condition, to issue a notice of preliminary finding. The notice must set out

The proposed regulations would allow the officer to correct or cancel the notice at any time before the notice of final determination is issued.

The proposed regulations would allow the DLI to make written submissions within 30 days of receiving a notice of preliminary finding and include any relevant documents. The Minister may grant, at the request of the DLI, an extension of no more than 30 days to make written submissions if the Minister determines that the institution’s ability to make the submissions was prevented or impeded by exceptional circumstances.

If, after the 30-day written submission period, the Minister determines that the DLI has failed to meet the conditions, the proposed regulations would require the Minister to issue a notice of final determination that includes

Suspension list and period

In determining whether a DLI is to be placed on the suspension list and the penalty period, the proposed regulations would require the Minister to consider the frequency and seriousness of the DLI’s non-compliance with conditions, the efforts the DLI made to comply with the conditions, the DLI’s level of cooperation during verification, and the DLI’s written submissions to the notice of preliminary finding.

The proposed regulations would require that the Minister publish and maintain a public suspension list that sets out the following for each DLI that received a notice of final determination requiring that it be placed on the list:

The proposed regulations would allow a non-compliant DLI to remain on the suspension list for a maximum period of 12 consecutive months.

The proposed regulations would require that, during the period that a DLI is on the suspension list, any application for a study permit that names the DLI be returned to the applicant without being processed, along with all supporting documents and the processing fee.

The proposed amendments would require that a study permit holder in Canada who received a letter of acceptance to attend a DLI other than one indicated on their study permit and who wishes to switch DLIs submit an application for a new study permit before the start date for the new program of study. The proposed regulations would allow the student to attend the new DLI without a valid study permit until a decision is made on the application, as long as the student remains in Canada and complies with all other conditions of their study permit.

Amendments to the letter of acceptance provisions

The proposed regulations would amend the existing provisions regarding the issuance of a study permit such that DLIs would be required to confirm the letter of acceptance (LOA) provided by an applicant. The proposed regulations would also amend the existing provision for accompanying family members so that they are exempt from the LOA verification as long as their study or work permit is approved before their entry into Canada. However, once in Canada, if that family member moves to a post-secondary DLI, the proposed regulations would require the accompanying family member to have an LOA that is required to be verified.

The proposed regulations would also add a new provision instructing not to process a study permit application and return it to the student, along with supporting documents and processing fees, if a DLI does not provide confirmation of a student’s acceptance to a post-secondary institution as required under the conditions on DLIs.

Consequences for not complying with the conditions

The proposed regulations would amend existing conditions to specify that t study permit holders must enroll at the DLI listed on their study permit and remain enrolled until they complete their studies. The study permit invalidity provisions would also be amended to add that the day when the permit holder is no longer enrolled at the DLI named on the permit, is the date when the permit may become invalid.

Off-campus work hours

The proposed regulations would increase the limit on off-campus work during regular academic sessions from 20 hours per week to 24 hours per week.

Regulatory development

Consultation

Since fall 2022, IRCC consulted extensively with provincial and territorial ministries responsible for both immigration and education, national education associations representing the majority of designated learning institutions across Canada and individual DLIs and student representative organizations. These consultations focused on challenges and proposed initiatives that would raise the bar for all institutions to better recruit and support international students; manage unsustainably high volumes in the ISP; develop regulatory authorities and stronger policy tools that would better address student vulnerability, fraud, and non-genuine actors.

Through the consultations, provinces and territories provided feedback along the following themes:

While there was general agreement on the first and third set of measures, regarding the second one, reactions were mixed. Some PTs showed support for stronger authorities to suspend study permits to DLIs engaged in fraudulent activities or high rates of non-compliance as long as IRCC was mindful of PT role in designating DLIs, while others were concerned that greater federal authorities may encroach on their education mandate.

On LOA verification, PTs actively commented on the success of the measure currently in place through Ministerial Instructions, which also reflected the feedback received from their respective DLIs. Finally, PTs provided general support to strengthen the DLI framework, including the compliance regime.

IRCC also held consultations regarding the modernization of the student program with the following national associations for post-secondary education: Universities Canada, Colleges and Institutes Canada, Canadian Bureau for International Education, Languages Canada, and Association des Collèges et Universités de la Francophonie Canadienne. Associations, on behalf of their members, provided the following feedback:

IRCC is committed to working closely with all PTs, whether in multilateral or bilateral discussions, to advance ISP reform.

IRCC consulted on the issue of off-campus work, including the public policies waiving the 20-hour work limit, through a survey and stakeholder interviews held in the summer of 2023. Consultations on off-campus work hours demonstrated a wide range of views on the number of hours international students should be authorized to work off campus. In consultations with provincial and territorial education ministries, most expressed concerns with unlimited or significantly increased work hours, citing risks to program integrity, students prioritizing work over study, recruitment practices, impacts to student academic success, and concerns regarding exploitation of students by employers. One province sought feedback on the public policies from its public post-secondary institutions, in which the majority of respondents expressed strong concerns regarding students’ well-being and academic performance within the context of unlimited work.

However, the public policy lifting the 20 hour per week limit was popular amongst eligible international students. In summer 2023, IRCC conducted a survey of international students who were eligible for the public policy to better understand the impact of the public policy that waived the 20-hour limit on off-campus work. 89% of the students who responded to the survey were in favour or permanently lifting the cap. The survey also found that 81.4% of respondents worked during the winter/spring 2023 semester. Moreover, 75.1% of eligible students reported that they worked off campus, with 73.1% of those who worked off campus indicating that they worked more than 20 hours per week.

IRCC also heard from a number of employers experiencing labour shortages, who support lifting the 20-hour limit completely.

Academic associations and service provider organizations were also interviewed by IRCC officials regarding the public policy lifting the off-campus work hours limit was largely positive. Several organizations and associations emphasized the principle of equity between international and domestic students, and the importance of respecting international students’ autonomy and agency to make their own decisions regarding their work/school balance. However, the Department also heard that some designated learning institutions have experienced an increase in the number of international students struggling in their studies since the introduction of this temporary policy change, indicating that some are prioritizing work over their studies.

Modern treaty obligations and Indigenous engagement and consultation

The proposal has been assessed for modern treaty implications and the Department did not identify any potential modern treaty or self-government impacts.

Instrument choice

The proposed program enhancements can only be achieved through amending the IRPR.

As the limit on off-campus work is prescribed in regulation, the only option available to change the limit is by amending the regulations.

Regulatory analysis

Benefits and costs

An important first step in developing a cost-benefit methodology is establishing a baseline scenario against which options may be measured. For this analysis, the baseline scenario is one where regulatory requirements for DLIs and study permit holders would be unchanged. The baseline scenario is then compared with the regulatory scenario, in which DLIs would be required to verify LOAs for study permit applications and submit DLI compliance reports to IRCC. The IRCC would be able to take a course of action when DLIs fail to comply with the regulatory conditions, by adding non-compliant DLIs to a public suspension list and preventing the approval of study permit applications that list suspended DLIs. In the regulatory scenario, study permit holders would be required to attend the DLI listed on their study permit unless they reapply for a new study permit to change DLIs. And lastly, full-time international students pursuing academic, professional or vocational training programs would also be permitted to work 24 hours per week off campus, instead of the existing limit of 20 hours per week.

The costs and benefits of the regulatory amendments are monetized for 10 periods of 12 months (2024 to 2033) and are expressed in 2023 dollars. The regulations would come into force on the day they are registered. For further details regarding the methodology, a detailed cost-benefit analysis report is available upon request at the following email address: IRCC.TEIBISPPPolicy-DIETPPEIPolitique.IRCC@cic.gc.ca.

Consultation on cost and benefit impacts were conducted through a summer 2023 IRCC survey of eligible international students, which sought to better understand the impact and participation rate of eligible international students in the public policy that waived the 20-hour limit on off-campus work.

This cost-benefit analysis makes assumptions around variables that may be subject to uncertainty. It is important to acknowledge this uncertainty, in particular the presence of uncertainty in variables on which impacted external stakeholders were not consulted. For this reason, a sensitivity analysis was conducted to examine how changes in uncertain variables would impact the cost-benefit analysis results. For sensitivity analysis results, please consult the cost-benefit analysis report.

The regulatory amendments are estimated to cost $86,957,971 in present value (PV) over the 10 periods. These costs consist of Government of Canada implementation activities, costs to DLIs related to participating in the LOA verification system and submitting compliance reports to IRCC, and costs to study permit holders who wish to change DLIs. The regulatory changes to increase the off-campus work hours limit for full-time international students are not expected to result in any incremental costs. Costs for the Department’s implementation of the amendments would be managed through existing IRCC resources. The benefits of the regulatory amendments would be incurred by international students who are eligible for the four-hour increase in their weekly off-campus work hour limit. These benefits are estimated at $10.2 billion PV in 10 periods.

Costs to DLIs
Mandatory LOA verification

In the baseline scenario, although existing Ministerial instructions with respect to the processing of study permit applications already require LOA verification from post-secondary DLIs, these instructions are a temporary measure. The regulatory amendments would permanently establish an LOA verification requirement. This would be achieved through an existing portal where DLIs would be provided with the applicant’s biographical information, student number from the accepting institution, and the DLI’s confirmation of the student’s acceptance. This requirement is expected to affect between 1 700 to 2 000 DLIs Canada-wide, including those in Quebec.

For the purpose of estimating the cost impacts of the LOA verification requirement on DLIs, the number of study permit applications that would require verification in period 1 is estimated at 884 884. This volume is expected to decrease by 11.8% in period 2, reflecting the effect of the intake cap on most study permit applications. Then, growth is assumed to resume, at a rate of 22.39% in period 3, then at 22.73% in period 4, and lastly stay constant at 11.6% for the rest of the analysis period.

It is assumed that a DLI would spend three minutes verifying one LOA in the first period. As DLIs become familiar with the portal, this time is expected to be reduced to 30 seconds per LOA verification, starting in period 3.

The total cost to DLIs for LOA verification is estimated at $4,806,119 PV over 10 periods.

Compliance reports

In the baseline scenario, all post-secondary DLIs, with the exception of institutions located in Quebec, must complete and submit scheduled reports on the academic enrolment status of their study permit holders at the post-secondary level to IRCC. Although compliance reporting is already a requirement for approximately 700 DLIs, about 6% to 8% of those required to submit reports fail to do so. Besides closing the compliance gap that exists for this requirement, the regulatory amendments would also add Quebec post-secondary DLIs to the compliance reporting regime through an information-sharing arrangement between IRCC and Quebec.

Onboarding of Quebec DLIs for this requirement is expected to take approximately one year. For this reason, Quebec DLIs would start complying with the reporting requirement in period 2. In period 1, for the purpose of this analysis, it is estimated that 39 DLIs would be impacted by the reporting requirement. This reflects the number of non-Quebec DLIs that are non-compliant under the existing regime. In period 2, 363 Quebec DLIs would start complying with the reporting requirement, for a total of 402 Canada-wide DLIs required to submit compliance reports in this period. To reflect the impact of the intake cap on most study permit applications, no growth in the number of DLIs is expected for the first two periods. In period 3, a resumption of growth is assumed, at 3.5% per period. The development and submission of a compliance report is expected to take 37.5 hours per DLI.

Besides requiring the submission of biannual reports, the proposed regulatory amendments would also provide the authority for follow-ups with DLIs where IRCC has questions or concerns with the information submitted in the reports. Only 50% of impacted DLIs are expected to require follow-ups, and these are expected to take 10 minutes for DLIs to complete for multiple student records.

The cost related to compliance reporting requirements to DLIs is estimated at $7,221,881 PV over 10 periods.

Lastly, the regulatory amendments would allow IRCC to take action when a DLI has failed to comply with the reporting conditions in the proposed regulatory amendments. Non-compliant DLIs may be added to a publicly available suspension list and may be suspended from receiving international students for a period of up to 12 months. The cost impacts to suspended DLIs would be losses of revenue from international students not enrolling in their institution during the suspension period. These impacts do not have standing for the purpose of this cost-benefit analysis, as they would be considered a consequence of non-compliance with the proposed regulations.

Cost to study permit holders

In the baseline scenario, although IRCC requires that students notify them when they change DLIs, students are not required to submit a new study permit application if they wish to switch DLIs. The regulatory amendments would require that students obtain a new study permit when they wish to transfer to a new DLI. Movement between DLIs is common and challenging to track. Although IRCC does not have the data to determine how many international students transfer DLIs yearly, based on DLI compliance reporting, it is estimated that approximately 5% do so.

For the purpose of this analysis, in period 1, 30 536 re-applications are expected, this volume would grow at the assumed growth rate of study permit holders. This means it would stay constant for period 2, and then resume growth at 11.6% per period for the rest of the analysis.

The costs to study permit holders include the time spent preparing their new application (30 to 45 minutes per application), and application fees, set at $150 per application. The total cost to study permit holders for submitting new study permit applications is estimated at $55,546,031 PV over 10 periods. This includes $50,440,983 PV in application fees, and $5,105,048 PV in time spent to prepare and submit their applications. The hourly wage rate assumed for study permit holders is $24.29.

An increase in the volume of study permit applications submitted may increase processing times for this line of business. However, the impact of longer processing times would be mitigated as students who have applied to change the DLI would be allowed to attend the new DLI as long as the study permit application has been submitted. The requirement for students to reapply may raise uncertainty costs for this cohort of students. IRCC plans to also reallocate resources to respond to increased volumes and processing pressures, so that students can receive their application decision within reasonable service standards.

Lastly, study permit applications from clients who were planning to attend, or needed to extend their existing study permit to attend a DLI that has been suspended due to non-compliance would be returned during the suspension period. Impacted clients would need to submit an application for a different DLI if they wish to continue with their process.

Costs to the Government of Canada
Transition costs

IRCC would incur transition costs in the first period following the implementation of the proposed regulatory amendments, which are estimated at $2,608,095 PV. These costs include developing program delivery instructions, adjusting web pages and preparing communications products, supporting the technical and administrative onboarding of Quebec DLIs into the compliance reporting regime, and updating the IT system to ensure the Global Case Management System, the DLI Portal, and MyAccount Portal are up to date for the implementation of the regulatory changes.

Ministerial instructions requiring LOA verification from certain DLIs have been in effect since December 1, 2023, for overseas applications and January 30, 2024, for in Canada applications; therefore, the costs of developing an LOA verification system have already been incurred and are thus not included as incremental costs of the regulatory amendments.

Ongoing costs

The majority of costs to IRCC would be ongoing costs, which are estimated at $16,775,847 PV over 10 periods. These include management of the LOA verification system, including processing DLI submissions and managing communication with DLIs, conducting program integrity activities, as well as activities related to the inclusion of Quebec in the compliance reporting regime, administrative and technical activities related to the inclusion of Quebec DLIs, and ongoing updates to program delivery instructions. Ongoing costs also include those associated with follow-up requests to DLIs, and enforcement activities that would arise from non-compliance.

The requirement to submit a new study permit application to change DLI would result in an increase in the number of study permit applications received by IRCC. Although this increase would require additional resources to process higher volumes, the costs to IRCC would be fully recovered through fees received from study permit applications. Therefore, the cost impact to IRCC is neutral.

Benefits
Program integrity benefits

The regulatory amendments would allow IRCC to effectively respond to integrity challenges and address common occurrences of unethical behaviours that undermine the integrity of the program.

The enhanced LOA verification system would allow IRCC to verify each LOA submitted with study permit applications before they are processed, allowing for early identification of fraudulent LOAs and preventing the approval of non-genuine applications or applications from students who have been defrauded.

Codifying the requirement to submit biannual compliance reports would allow IRCC to close the compliance gap that exists in this regime and add Quebec DLIs to this requirement. The codification would help IRCC obtain accurate and up-to-date information about the enrollment status of all international students Canada-wide and identify students who are not meeting the conditions of their study permit.

Requiring international students to obtain a new study permit when transferring to a new DLI would ensure that IRCC can more accurately assess and track student compliance with conditions set out in their permit and identify when they change DLIs.

Both the LOA verification requirement and the codification of compliance reporting imposes requirements on DLIs to provide accurate information about enrollment of international students. The proposed amendments also allow IRCC to request further documentation from DLIs if they do not comply with the conditions as set out in the regulatory amendments, or if there are reasons to suspect non-compliance. When IRCC determines that a DLI has failed to comply, and the frequency, seriousness and corrective efforts from the DLI warrant it, they may be added to a public DLI suspension list for a maximum period of 12 consecutive months, during which any applications that are submitted to IRCC with a DLI included in the suspension list would be returned. These changes would allow IRCC to impose consequences for DLIs that have not submitted compliance reports as required in proposed regulations.

Benefits to international students

The regulatory amendments would increase the hours that eligible international students can work off campus from 20 to 24 hours. This change would help international students offset increasing costs of living, should they wish to work an additional four hours a week.

Based on IRCC’s survey of international students who were eligible for the public policy that waived the 20 hour per week work limit, this analysis assumes that 75.1% of eligible students would work off campus, with 73.1% of those who work off campus estimated to work more than 20 hours per week.footnote 1 For the purpose of this analysis, study permit holders who also hold a work permit, including a co-op work permit, are excluded from the benefits estimation. This cohort of students would already be authorized to work longer hours as per their work permit.

For the purpose of this analysis, in period 1 it is anticipated that 296 906 eligible international students would benefit from the increase to work hours, having the opportunity to work an additional 128 hours per year. The volume of students in period 1 is estimated by using the number of eligible students, and applying percentages obtained from IRCC’s survey of international students for the public policy (i.e. 75.1% are assumed to work off campus, and of those, 73.1% are assumed to work the additional 4 hours per week). This volume is expected to grow at the same rate as study permit holders. This means it would stay constant for period 2, and then resume growth at 11.6% per period for the rest of the analysis.

Students eligible for this change would continue to have the opportunity to work full-time during academic breaks. This includes the summer break for students who are enrolled in programs that run from September to April. The benefit to international students is estimated as their increase in earnings for the additional hours that they would be able to work off campus. At an hourly wage rate of $24.29, the benefits of the increase to off-campus work hours limit are estimated at $10.2 billion PV over 10 periods.

The increase in off-campus work hours would increase the supply of labour hours from international students. This would be particularly evident in low-wage industries where a greater portion of international students’ work. Although this may result in increased competition for Canadian workers in these industries, it is important to note that some of the industries where there is a high labour participation rate for this cohort of international students have experienced high job vacancy rates in recent years. For example, according to the Canadian Employer Employee Dynamics Database (CEEDD) 2021 data, approximately 23.9% of international students without a work permit and who had T4 earnings, had earnings in the accommodations and food services industries. Based on the Job Vacancy and Wage Survey from March 2023, accommodation and food services sector had the highest job vacancy rate across all sectors (7.6%).footnote 2 The regulatory amendments are expected to benefit industries that are experiencing high vacancy rates, while also alleviating financial difficulty experienced by students in recent times.

Cost-benefit statement
Monetized benefits
Impacted stakeholder Description of benefit Period 1 Period 5 Period 10 Total (present value) Annualized value
International Students Increase in earnings $923,116,206 $1,283,065,871 $2,221,109,223 $10,165,809,572 $1,447,382,583
All stakeholders Total benefits $923,116,206 $1,283,065,871 $2,221,109,223 $10,165,809,572 $1,447,382,583
Monetized costs
Impacted stakeholder Description of cost Period 1 Period 5 Period 10 Total (present value) Annualized value
Government of Canada IRCC transition costs $2,608,095 $0 $0 $2,608,095 $371,334
IRCC ongoing costs $0 $3,161,284 $3,161,284 $16,775,847 $2,388,503
DLIs LOA verification $1,410,062 $345,222 $597,612 $4,806,119 $684,283
Biannual reporting $93,750 $1,069,179 $1,270,997 $7,221,881 $1,028,233
International Students Value of time to reapply to change institutions $463,569 $644,328 $1,115,393 $5,105,048 $726,844
Reapplication fees to change institution $4,580,342 $6,366,350 $11,020,759 $50,440,983 $7,181,661
All Stakeholders Total costs $9,155,818 $11,586,363 $17,166,045 $86,957,971 $12,380,859
Summary of monetized benefits and costs
Impact Period 1 Period 5 Period 10 Total (present value) Annualized value
Total costs $9,155,818 $11,586,363 $17,166,045 $86,957,971 $12,380,859
Total benefit $923,116,206 $1,283,065,871 $2,221,109,223 $10,165,809,572 $1,447,382,583
Net impact $913,960,388 $1,271,479,507 $2,203,943,178 $10,078,851,600 $1,435,001,724
Quantified (nonmonetized) and qualitative impacts

Positive impacts

Negative impacts

Small business lens

Analysis under the small business lens has concluded that the amendments would impact small businesses.

For this proposal, costs to businesses would be limited to those incurred by private DLIs. Therefore, for the purpose of the small business lens, only impacts sustained by private DLIs are considered.

The regulatory amendments will require DLIs to participate in LOA verification and compliance reporting. These requirements will impact DLIs that are small businesses, and the impact would be relative to the number of international students expected to attend or already attending these DLIs. The total costs to small business are estimated at $5,394,110 PV over 10 periods.

Small business lens summary
Costs
Administrative or compliance Description of cost Present value Annualized value
Administrative Biannual reports $4,230,759 $602,365
Compliance LOA verification $1,163,350 $165,635
Total Total costs $5,394,110 $768,000
Net impacts
Amount Present value Annualized value
Net cost on all impacted small businesses $5,394,110 $768,000
Average net cost per impacted small business $6,944 $989

One-for-one rule

The one-for-one rule applies since there is an incremental increase in the administrative burden on businesses, and the proposed amendments would be considered a burden under the rule. The regulations result in an additional annualized cost of $216,183 (in 2012 Can$) for administrative burden as estimated using the Red Tape Reduction Regulations’ prescribed method. No regulatory titles are repealed or introduced.

For this proposal, costs to businesses would be limited to those incurred by private DLIs. Therefore, for the purpose of the one-for-one rule, only impacts sustained by private DLIs are considered.

The codification of the DLIs’ biannual compliance reporting on student status and responding to follow-ups from IRCC increases the administrative burden on DLIs. Although the majority of DLIs required to submit reports already do so, those that do not would now be required to do so under the amended regulations (6%–8%). The addition of Quebec to this compliance regime would also impose an administrative burden particularly on Quebec DLIs.

The LOA verification requirement would not impose an administrative burden on businesses, as this would be a distinct compliance requirement in itself, and not a requirement to demonstrate compliance.

Strategic environmental assessment

In accordance with the Cabinet Directive on the Environmental Assessment of Policy, Plan and Program Proposals, a preliminary scan has concluded that a strategic environmental assessment is not required.

Gender-based analysis plus

The proposed regulations are not expected to have a negative impact on any particular group of international students, compared to the scenario where no regulations and federal conditions continue to apply to DLIs.

Some students may be negatively affected by the proposed requirement related to switching DLIs. This may cause distributional impacts on students with a lower economic status.

The ability to work an additional 4 hours per week would benefit students who are experiencing financial difficulty. Within the international student population, financial need necessitating increased work hours may vary depending on students’ country of origin, socioeconomic background, and other factors. Among the respondents to IRCC’s 2023 survey on off-campus work who reported working off campus, men (77%) were slightly more likely to report working more than 20 hours per week compared to women (71%), and to respondents who identified as non-binary (53%). Those who identified as South Asian (79%), Southeast Asian (75%), and Latin American (73%) were more likely to report working more than 20 hours per week compared to those who identified as being West Asian (65%), White (52%), or East Asian (49%).

Implementation, compliance and enforcement, and service standards

Implementation

The regulatory amendments would come into force upon registration. Changes would be made to the electronic immigration processing system (Global Case Management System [GCMS]) to ensure that study permit applications are not processed and instead are returned to the application in situations where that particular DLI is on the suspension list. Changes would be made to MyAccount, a secure portal that allows foreign nationals to apply for, and make changes to, their application or status and view IRCC’s decision on their application. IRCC would also ensure that a secure means to allow DLIs to submit additional documents and evidence is provided as part of the conditions that must be met and the verification scheme.

The proposed regulations that will hold DLIs accountable in providing reports and information related to the compliance reporting and LOA verification, are strictly within federal purview. Under the proposed regulations, PT responsibility to investigate and take action to de-designate institutions that are non-compliant with federal and provincial/territorial standards, will remain unchanged.

DLIs already follow a process for verifying a LOA and completing compliance reports through two separate secure portals and this implementation process would not change with the proposed regulations. When a client submits an application, IRCC notifies the DLI through the secure verification portal to validate the letter of acceptance, and DLIs must respond with a verification status of “match”, “no match” or “cancelled” within 10 days. If a DLI does not respond within the 10 days, the verification is noted as incomplete and the application is closed and sent back to the client. This process can happen as soon as a “no” response is received. A similar procedure is in place for the compliance regime. Once IRCC initiates a request to the DLI, it must complete the report about the enrollment status of study permit holders through a DLI-secured portal within 60 days, as well as ad hoc requests within 10 days for any corrections or additional information. When the report is submitted to IRCC, it is closed for any further changes. This process would be maintained under the proposed regulations.

Given that DLIs in Quebec are not currently part of the compliance reporting, Quebec DLIs will not be subject to the reporting requirements on coming into force. IRCC intends to hold separate discussions with Quebec on the development of an approach to allow DLIs to provide compliance reports. It is expected that the onboarding of Quebec DLIs will take approximately one year, after which DLIs will be required to report biannually, upon request by the Minister. DLIs in Quebec will be subject to all other requirements of the proposed regulations on coming into force.

Guidance and public website communication will also be directed toward students to provide them with information about the consequences of not reapplying for a study permit if a DLI change occurs, including a time period required for the student to take a course of action. Procedural fairness principles would be put in place to inform the student before their study permit becomes invalid.

IRCC will develop guidance to its officers, update field manuals where needed and train officers on their roles in implementing the regulations. IRCC’s and the Canada Border Services Agency’s websites will be updated and further outreach activities, such as public announcements, will be planned to further inform stakeholder groups of upcoming changes.

Compliance and enforcement

IRCC will adopt a verification process as part of its assessment whether a DLI is compliant with the conditions. DLIs will be asked to produce additional documents and information evidence if the conditions are not met, including the inaccuracies reflected in the information provided. IRCC will be able to take enforcement action against DLIs that do not comply with the conditions by placing them on a public suspension list for up to a year that is managed by IRCC. As a result, the DLI would not be allowed to receive new international students for that period of time. Applications with a letter of acceptance from a DLI on the suspension list would not be processed and would be returned to the applicant.

Enforcement actions will be taken in cases when a student changes DLIs without authorization. IRCC will verify the information on the existing permit that is provided as part of the new application, while the student is attending the new DLI. When a violation does occur, students will be provided with a notification letter and be informed that they must reapply for a study permit, leave the country, or change their status. The consequence for attending a DLI without authorization may result in IRCC declining to issue a study permit to a student who fails to comply with the conditions of their permit to attend the specific DLI listed on the permit and/or a removal order from Canada.

Service standards

The service standard for a study permit is 120 days. In 2024, processing times are approximately 68 days. Initial processing volumes and processing times may increase slightly due to the new requirements regarding DLI switching. IRCC intends to shift resources as needed to make meet the 120-day service standard.

Contact

Julie Spattz
Senior Director
Social and Temporary Migration Branch
365 Laurier Avenue West
Ottawa, Ontario
K1A 1L1
Email: IRCC.TEIBISPPPolicy-DIETPPEIPolitique.IRCC@cic.gc.ca

PROPOSED REGULATORY TEXT

Notice is given that the Governor in Council proposes to make the annexed Regulations Amending the Immigration and Refugee Protection Regulations (Designated Learning Institutions) under subsection 5(1) and paragraphs 32(d), (d.1)footnote a, (d.2)footnote b and (d.3)footnote a of the Immigration and Refugee Protection Act footnote c.

Interested persons may make representations concerning the proposed Regulations within 30 days after the date of publication of this notice. They are strongly encouraged to use the online commenting feature that is available on the Canada Gazette website but if they use email, mail or any other means, the representations should cite the Canada Gazette, Part I, and the date of publication of this notice, and be sent to Julie Spattz, Senior Director, International Students Policy and Programs, Citizenship and Immigration Canada, 365 Laurier Avenue West, Ottawa, Ontario K1A 1L1 (email: IRCC.TEIBISPPPolicy-DIETPPEIPolitique.IRCC@cic.gc.ca).

Ottawa, June 21, 2024

Wendy Nixon
Assistant Clerk of the Privy Council

Regulations Amending the Immigration and Refugee Protection Regulations (Designated Learning Institutions)

Amendments

1 Subparagraph 186(v)(iii) of the Immigration and Refugee Protection Regulations footnote 3 is replaced by the following:

2 The Regulations are amended by adding the following after section 189:

Invalid study permit

189.1 The holder of a study permit in Canada who has submitted a new application for a study permit under section 216.1 is authorized to study without a valid study permit until a decision is made on the application if they have remained in Canada since their permit became invalid and they continue to comply with the conditions set out in the invalid study permit, other than the condition that they remain enrolled at the designated learning institution named in the permit.

3 The Regulations are amended by adding the following after section 215:

Requirement — post-secondary institution

215.1 An application for a study permit that names a designated learning institution that is a post-secondary institution must be returned to the applicant without being processed, along with all documents submitted in support of the application and the fee for processing it, if that institution does not provide to the Minister the confirmation referred to in paragraph 222.1(1)(a), in accordance with that paragraph, subject to any extension granted under subsection 222.1(2).

4 Paragraph 216(1)(e) of the Regulations is replaced by the following:

5 The Regulations are amended by adding the following after section 216:

New application

216.1 If the holder of a study permit in Canada whose permit names a designated learning institution is accepted to undertake a course or program of study at a different designated learning institution and intends to attend that institution, they must submit a new application for a study permit before the day on which their letter of acceptance to that institution indicates that they will begin the course or program of study.

6 Section 219 of the Regulations is replaced by the following:

Confirmation by post-secondary institution

219 (1) A study permit must not be issued to a foreign national unless they have provided written documentation from the designated learning institution where they intend to study that states that they have been accepted to study there or, in the case of an application for a study permit that names a designated learning institution that is a post-secondary institution, unless that institution has provided to the Minister, in accordance with paragraph 222.1(1)(a), subject to any extension granted under subsection 222.1(2) confirmation that the institution has accepted the foreign national to the course or program of study that is indicated in the application for the study permit.

Exception

(2) Subsection (1) does not apply to a foreign national who applies for a study permit before entering Canada if they are an accompanying family member of a foreign national whose application for a work permit or a study permit is approved in writing before their entry into Canada.

7 Paragraph 220.1(1)(a) of the Regulations is replaced by the following:

8 Subsection 222(1) of the Regulations is amended by adding the following after paragraph (a):

9 The Regulations are amended by adding the following after section 222:

DIVISION 6

Conditions Imposed on Post-Secondary Designated Learning Institutions

Conditions

222.1 (1) A designated learning institution that is a post-secondary institution must comply with the following conditions:

Extension of time

(2) The Minister may, on request from a designated learning institution or on their own initiative, extend the time within which a confirmation, a report or information must be provided under this section if

Verification of compliance with conditions

222.2 (1) An officer may verify a designated learning institution’s compliance with the conditions set out in subsection 222.1(1) in the following circumstances:

Documents and questions

(2) The officer may, for the purpose of verifying the designated learning institution’s compliance with the conditions, require the institution to

Justification

(3) A failure to comply with a condition is justified if the designated learning institution made all reasonable efforts to comply with it or if the failure results from anything done or omitted to be done by the institution in good faith.

Notice of preliminary finding

222.3 (1) An officer who determines that a designated learning institution has failed to comply with a condition set out in subsection 222.1(1) must, unless they are satisfied that the failure is justified, issue to the institution a notice of preliminary finding that sets out

Receipt of notice

(2) Despite subsection 9.3(2), the notice of preliminary finding is deemed to have been received 10 days after the day on which it is sent.

Correction or cancellation of notice

(3) The officer may, at any time before the notice of final determination is issued, cancel a notice of preliminary finding or issue a corrected notice of preliminary finding.

Written submissions

222.4 (1) A designated learning institution to which is issued a notice of preliminary finding under subsection 222.3(1) or a corrected notice of preliminary finding under subsection 222.3(3) may, within 30 days after the day on which it receives the notice, make written submissions with respect to the information referred to in paragraphs 222.3(1)(b) to (e) or any justification under subsection 222.2(3) and include with those submissions any relevant document.

Extension of time

(2) The Minister may, on request from a designated learning institution, grant a single extension of not more than 30 days for the institution to make written submissions if the Minister determines that the institution’s making of the submissions has been prevented or impeded by exceptional circumstances.

Notice of final determination

222.5 (1) If, after the time for making written submissions has elapsed, the Minister determines that a designated learning institution has failed to comply with a condition set out in subsection 222.1(1) and that the failure is not justified, they must issue to the institution a notice of final determination that sets out

Considerations — suspension

(2) In determining whether the designated learning institution is to be placed on the suspension list referred to in subsection 222.6(1) and, if applicable, the period for which it is to be placed on that list, the Minister must consider

Maximum period of suspension

(3) The maximum period for which a designated learning institution may remain on the suspension list is 12 consecutive months.

Suspension list

222.6 (1) The Minister must publish and maintain a suspension list that is accessible to the public and that sets out, for each designated learning institution that received a notice of final determination indicating that it was to be placed on the list,

Application not to be processed

(2) An application for a study permit that names a designated learning institution and that is received during a period in which that institution is on the suspension list must be returned to the applicant without being processed, along with all documents submitted in support of the application and the fee for processing it.

Coming into Force

10 These Regulations come into force on the day on which they are registered.

Terms of use and Privacy notice

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