In a bid to boost accountability and transparency in the tarnished force, the bill, dubbed the Enhancing Royal Canadian Mounted Police Accountability Act, hands more powers to head of the RCMP to discipline, hire and fire members of the force.
It also streamlines the investigation process for handling sexual harassment complaints within the force.
A civilian review commission will be created to handle complaints against the RCMP and will be given more powers than the current public complaints commission, including the power to summon witnesses.
It will also mostly place the responsibility of investigating RCMP officers involved in serious incidents into the hands of other law enforcement
"We've heard the call for change," Toews said. "Now it's time to take action."
RCMP Commissioner Bob Paulson said the new legislation will give him the necessary "checks and balances" to strengthen accountability within the RCMP and deal with problem members "quickly and appropriately."
"Public trust is the cornerstone of policing," he said.
But he cautioned all the changes will be moot if the rank-and-file and management fail to step up and improve the force.
NDP public safety critic Randall Garrison said Wednesday he's disappointed the bill both fails to address the need to change the culture within the RCMP and to make the new civilian commission independent from the force.
The Mounties have been tarred in recent months by allegations of systemic sexual harassment within the force.
In May, Paulson released an open letter to Canadians in which he gripped that under the current RCMP Act, his hands are tied in trying to rid the force of "rotten apples."
He also said the current process often gets bogged down by a "burdensome and bureaucratic decision-making process."
Along with concerns over a culture of sexual harassment, the national police force has been hit in recent years by high-profile scandals, such as Robert Dziekanski's 2007 death after cops repeatedly used a Taser on him, and accusations it dropped the ball on investigating B.C. serial killer Robert Pickton.