Many TTC bus drivers seem to have the wrong interpretation of the law. I am not sure if they were trained to think the law was different than it actually is, or if they are just hammered for being late. Either way, it is a management problem.
Most Toronto bus drivers only use part one of the law
"142.1 (1) Every driver of a vehicle in the lane of traffic adjacent to a bus bay shall yield the right of way to the driver of a bus who has indicated his or her intention, as prescribed, to re-enter that lane from the bus bay. 1994, c. 27, s. 138 (12)."
and completely ignore section 3
"No driver of a bus shall re-enter the lane of traffic adjacent to a bus bay and move into the path of a vehicle or street car if the vehicle or street car is so close that it is impractical for the driver to yield the right of way. 1994, c. 27, s. 138 (12)."