Explanatory Notes

SECTION 1: [Homeowner Protection Act, section 1] adds definitions consequential to amendments to the Act in this Bill, amends the definitions of "chief executive officer", "new home" and "residential builder" and replaces the definition of "owner builder".

SECTION 2: [Homeowner Protection Act, section 3] repeals the provision of the Act authorizing the Lieutenant Governor in Council to appoint a person as the chief executive officer of the office.

SECTION 3: [Homeowner Protection Act, section 4] requires the board to appoint a person as the chief executive officer of the office.

SECTION 4: [Homeowner Protection Act, section 5] requires the chief executive officer to appoint compliance officers.

SECTION 5: [Homeowner Protection Act, section 7] expands the description of the registrar to be consistent with additional duties imposed on the registrar by the amendments to the Act in this Bill.

SECTION 6: [Homeowner Protection Act, section 8] expands the scope of the registrar's duties.

SECTION 7: [Homeowner Protection Act, section 9] expands the enforcement powers in the Act by authorizing the inspection of records, allows those powers to be exercised by compliance officers and requires the registrar or compliance officers to produce identification cards when requested to do so by a person on the premises the registrar or compliance officer enters.

SECTION 8: [Homeowner Protection Act, section 10] replaces the reference to fees to collection of fees so that it refers to any fees required to be paid under the Act.

SECTION 9: [Homeowner Protection Act, section 14] amends the provision of the Act regarding the licensing of residential builders

• to allow the registrar to issue a licence to a person who has the experience, training or competence equivalent to the prescribed qualifications,
• to authorize the registrar to amend licences, on application and payment of a fee, and
• to remove the requirement that a corporation may be licensed only if one of its directors is licensed, and to require a corporation applying for a licence to file with the registrar a statement disclosing the identity of the individuals who control the corporation.

SECTION 10: [Homeowner Protection Act, section 14.1] authorizes the registrar to renew licences, on application and payment of a fee.

SECTION 11: [Homeowner Protection Act, section 15] limits section 15 of the Act to suspensions and cancellations of licences, eliminating reference to renewals of or the imposition of restrictions on licences.

SECTION 12: [Homeowner Protection Act, section 16] requires the registrar to provide notice regarding decisions made with respect to licences.

SECTION 13: [Homeowner Protection Act, section 17] is consequential to section 29.5 of the Act added by this Bill.

SECTION 14: [Homeowner Protection Act, sections 20 and 20.1 to 20.3]

• requires an owner builder to obtain from the registrar an authorization to be relieved of the obligations under the Act to be licensed as a residential builder and to obtain home warranty insurance for a new home built by the owner builder;
• prohibits the sale of an owner-built new home during its construction or within a prescribed period of time after the home has been built, unless the registrar, on application, permits the sale;
• authorizes the registrar to suspend or cancel an authorization issued to an owner builder;
• requires the registrar to provide notice regarding decisions made with respect to authorizations.

SECTION 15: [Homeowner Protection Act, section 21] requires an owner builder of a new home, and any subsequent purchaser of that home, to disclose to a prospective purchaser whether or not the home is covered by home warranty insurance and, if required by the regulations to do so, to provide another form of security instead of home warranty insurance.

SECTION 16: [Homeowner Protection Act, section 22] clarifies the requirement to obtain home warranty insurance before building or selling new homes, and authorizes the registrar to permit the sale of a new home without home warranty insurance in cases of undue hardship.

SECTION 17: [Homeowner Protection Act, section 23] replaces the existing statutory protection for purchasers of new homes with a statutory protection regarding defects in materials and labour, defects in the building envelope and structural defects.

SECTION 18: [Homeowner Protection Act, Part 9.1] adds a new Part to the Act authorizing the issue of compliance orders and the imposition of monetary penalties.

SECTION 19: [Homeowner Protection Act, Part 10.1] adds a new Part to the Act granting certain persons the right to request that the registrar review decisions made under the Act and the right to appeal the registrar's decision to an appeal board.

SECTION 20: [Homeowner Protection Act, section 29.5] expands the current provision of the Act regarding the public registry by including information about licences, authorizations, monetary penalties, compliance orders, offences under the Act and new homes.

SECTION 21: [Homeowner Protection Act, section 31] authorizes the court to grant an interim injunction whether or not it has been established that irreparable harm will be done to a purchaser of a new home if the interim injunction is not granted.

SECTION 22: [Homeowner Protection Act, section 31.1] sets out how documents may be served under the Act, and when documents are deemed to have been served.

SECTION 23: [Homeowner Protection Act, section 32] authorizes the making of regulations, consequential to amendments to the Act in this Bill.

SECTION 24: [Homeowner Protection Act, section 33] authorizes the making of regulations, consequential to amendments to the Act in this Bill.

SECTION 25: [Homeowner Protection Act, section 34] sets out a limitation period for laying an information to commence a prosecution for an offence under the Act.

SECTION 26: [Transitional -- substitution of section 20 of the Homeowner Protection Act] provides that section 20 of the Homeowner Protection Act, as enacted by section 14 of this Bill, does not apply to certain new homes.

BILL 34 – 2007
HOMEOWNER PROTECTION AMENDMENT ACT, 2007

HER MAJESTY, by and with the advice and consent of the Legislative Assembly of the Province of British Columbia, enacts as follows:

1 Section 1 of the Homeowner Protection Act, S.B.C. 1998, c. 31, is amended

(a) by adding the following definitions:

"appeal board" means the appeal board established under section 43 of the Safety Standards Act;

"authorization" means an authorization issued by the registrar under section 20;

"compliance officer" means a person appointed under section 5 (1) as a compliance officer;

"compliance order" means a compliance order issued under section 28.1;

"monetary penalty" means a monetary penalty imposed under section 28.3;

"public registry" means the registry established under section 29.5 (1); ,

(b) in the definition of "chief executive officer" by striking out "section 3 (3)" and substituting "section 4 (2.1)",

(c) in the definition of "new home" by striking out "newly constructed and intended" and substituting "newly constructed or being constructed and is intended", by striking out "and" at the end of paragraph (c), by adding "and" at the end of paragraph (d) and by adding the following paragraph:

(e) a home that is or is being substantially reconstructed, ,

(d) by repealing the definition of "owner builder" and substituting the following:

"owner builder" means an individual with a valid authorization issued by the registrar under section 20; , and

(e) in the definition of "residential builder" by adding "or agrees to do any of those things" after "construction of a new home".

2 Section 3 (3) is repealed.

3 Section 4 is amended by adding the following subsection:

(2.1) The board must appoint a person as chief executive officer for the office and may determine the remuneration and the terms and conditions of the appointment.

4 Section 5 (1) (b) is amended by adding ", including compliance officers," after "appoint officers".

5 Section 7 (1) is amended by striking out "of residential builders and other persons required to be licensed under this Act." and substituting "for the purposes of this Act."

6 Section 8 (1) is amended

(a) by adding the following paragraphs:

(a.1) to receive and review applications for authorizations from persons who apply to be authorized as owner builders under this Act;

(b.1) to issue authorizations to persons referred to in paragraph (a.1) who meet the requirements of this Act and the regulations; ,

(b) by repealing paragraphs (c) and (d) and substituting the following:

(c) subject to sections 15 and 20.2, to suspend or cancel licences and authorizations;

(d) to maintain a register of

(i) owner builders, licensed residential builders and other persons licensed under this Act, and

(ii) new homes; ,

(c) in paragraph (g) by adding "or authorized" after "persons licensed", and

(d) by repealing paragraph (h) and substituting the following:

(h) to perform any other duties imposed on the registrar by this Act or the regulations.

7 Section 9 is amended

(a) in subsection (1) by striking out "the registrar or a person authorized by the registrar, may, during regular business hours," and substituting "a compliance officer may at any reasonable time",

(b) in subsection (1) (b) (iii) by adding "or authorization" after "licensing",

(c) by repealing subsection (1) (c) and substituting the following:

(c) inspect the records of a person who is authorized or licensed or is required to be licensed under this Act; ,

(d) in subsection (1) by adding the following paragraph:

(e.1) issue a compliance order; ,

(e) by adding the following subsection:

(1.1) The registrar may exercise the powers of a compliance officer set out in subsection (1). ,

(f) in subsection (2) by striking out "person authorized by the registrar" and substituting "a compliance officer",

(g) in subsection (3) by striking out "other authorized person when exercising his or her powers" and substituting "a compliance officer in the exercise of powers",

(h) by adding the following subsections:

(3.1) The registrar or a compliance officer, on the request of a person on the premises the registrar or compliance officer enters, must produce his or her identification card.

(3.2) The chief executive officer must provide the registrar and compliance officers with identification c