The key ruling on such matters is the 1975 Jones decision handed down around the time of the passage of Canada's Official Languages Act which specifically applied to federal institutions and the Government of Canada. Mindful of the residual power under the Constitution to enact laws for the peace, order and good government of Canada, Justice Laskin held the following:
No authority need be cited for the exclusive power of the Parliament of Canada to legislate in relation to the operation and administration of the institutions and agencies of the Parliament and Government of Canada. Those institutions and agencies are clearly beyond provincial reach.
This particular clause of the bill ultimately applies to federal departments and agencies. It creates the position of commissioner and other agencies responsible for ensuring the enforcement of the act's provisions, but these agencies come under federal jurisdiction. Admittedly, if there was an attempt made to have the regulations apply more broadly, problems and questions could arise. In my opinion, even the regulatory authority does not provide access to a broad range of measures likely to have a direct impact on the actions of provinces, municipalities or municipal agencies. We are not dealing with regulations arising from criminal law, for example. This act is not based on criminal law.