Never heard of that. Care to post the section?
Pedestrian crossover, duties of driver
140. (1) Subject to subsection (2), when a pedestrian or a person in a wheelchair crossing a roadway within a pedestrian crossover,
(a) is upon the half of the roadway upon which a vehicle or street car is travelling; or
(b) is upon half of the roadway and is approaching the other half of the roadway on which a vehicle or street car is approaching so closely to the pedestrian crossover as to endanger him or her,
the driver of the vehicle or street car shall yield the right of way to the pedestrian or a person in a wheelchair by slowing down or stopping if necessary. R.S.O. 1990, c. H.8, s. 140 (1).
Where vehicle stopped at pedestrian crossover
(2) When a vehicle or street car is stopped at a pedestrian crossover, the driver of any other vehicle or street car overtaking the stopped vehicle or street car shall bring the vehicle or street car to a full stop before entering the crossover and shall yield the right of way to a pedestrian or a person in a wheelchair,
(a) who is within the crossover upon the half of the roadway upon which the vehicle or street car is stopped; or
(b) who is within the crossover and is approaching the half of the roadway from the other half of the roadway so closely to the vehicle or street car that he or she is in danger if the vehicle or street car were to proceed. R.S.O. 1990, c. H.8, s. 140 (2).
Passing moving vehicles within 30 metres of pedestrian crossover
(3) When a vehicle or street car is approaching a pedestrian crossover and is within 30 metres thereof, the driver of any other vehicle or street car approaching from the rear shall not allow the front extremity of his or her vehicle or streetcar to pass beyond the front extremity of the other vehicle or street car. R.S.O. 1990, c. H.8, s. 140 (3).
In layman's terms, don't pass the front bumper of (corrected) any other car in front within 30m of an intersection or it becomes an offence. So you may change lanes, but you may not pass any other vehicle. The caveat is that the other car is "approaching". If they are stopped, this doesn't sound like it applies (for example, a line up of cars in the right lane to turn, and you pass in the left lane to go through the light).
I find this law to be next to rarely if ever enforced and highly impractical. It would imply that if one lane were moving (all be it slowly), no one in the lane next to them could proceed!!! So if there was a crawling left turn or right turn lane, then no one in an unobstructed free flowing lane could pass the slower traffic to either side within 30m of an intersection.
This law seems restrictive and perhaps that is why I have never heard of it being thrown at anyone. The intent seems to be to prevent some impatient speeder from jutting out into the next lane, missing a visual qeue that had prevented the car in front from proceeding, speeding past and potentially hitting a pedestrian. It makes sense in those circumstances...but next time you are out on the road, I'll bet you can count at least 5 times you see this infraction. I have seen cops witness it and not even bother a double take. But it is there in the books if they want to nail ya!