BILL M 201 – 2007
RETAIL PETROLEUM CONSUMER PROTECTION 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 The Utilities Commission Act, section 64.1 is amended as:
64.2 In this Part, "sufficient notice" means notice in the manner and form, within the period, with the content and by the person required by the commission
2 The Act is amended by adding the following section:
Regulation of the Price of Petroleum Products
No price change except in accordance with regulations
64.1 (1) No wholesaler or retailer shall change the price of gasoline, diesel oil, furnace oil or any other prescribed petroleum product except in accordance with the regulations.
Prescribed wholesale prices
(2) Where a fixed wholesale price is prescribed for a petroleum product, no wholesaler shall charge a price for that petroleum product that is greater or less than that fixed wholesale price.
(3) Where a maximum or minimum wholesale price is prescribed for a petroleum product, no wholesaler shall charge a price for that petroleum product that is greater than that maximum wholesale price or less than that minimum wholesale price.
Maximum retail price
(4) Where a maximum retail price is prescribed for a petroleum product, no retailer shall charge a price for that petroleum product that is greater than that maximum retail price.
3 The Act is amended by adding the following section:
Inquiries by Commission
72.1 (1) Where reasonably necessary to ensure compliance with this Act or the regulations, the Commission may
(a) at all reasonable times, enter the premises of a wholesaler or retailer to determine whether the price being charged for a petroleum product is in accordance with this Act and the regulations;
(b) inquire into all matters relating to the sale of a petroleum product;
(c) require the production of books, records or other documents relating to the sale of a petroleum product and may examine those books, records or other documents or remove them for the purpose of making copies of them.
(2) Every wholesaler or retailer shall keep the books, records or other documents referred to in clause (1)(c) for a period of at least seventy-two months unless the Commission otherwise determines.
(3) A wholesaler or retailer may produce the books, records or other documents referred to in clause (1)(c) for inspection in a place of business outside of the Province at the expense of that wholesaler or retailer, including reimbursement of the Province for all reasonable expenses incurred in carrying out the inspection.
4 The Act is amended by adding the following section:
Warrants and searches
97.1 (1) Where:
(a) the Commission believes, on reasonable grounds, that a person is contravening or has contravened this Act or the regulations; or
(b) entry onto premises has been refused or denied,
the Commission may apply to a judge of the Provincial Court or a justice of the peace for a warrant under subsection (2).
(2) Where, on an application under subsection (1), a judge of the Provincial Court or a justice of the peace is, by information on oath, satisfied that there are reasonable grounds for believing that this Act or the regulations are being contravened, the judge or justice of the peace may issue a warrant authorizing the Commission to do the things referred to in Section 72.1.
(3) The owner or person in charge of the premises and every person found therein shall give the Commission all reasonable assistance to enable the Commission to carry out the Commission's duties and functions under this Section, and shall furnish the Commission with the information that the Commission may reasonably require.
(4) Notwithstanding subsection (1), the Commission may exercise the power of search without a warrant if the conditions for obtaining the warrant exist but, by reason of exigent circumstances, it is not practical to obtain a warrant.
(5) For the purpose of subsection (4), exigent circumstances include circumstances in which the delay necessary to obtain the warrant will result in the loss or destruction of evidence.
5 The Act is amended by adding the following section:
Study by independent person
98.1 (1) The commission shall appoint an independent person to undertake a study of the effects of establishing minimum and maximum profit margins for retailers and report to the Commission.
(2) The Minister of Energy, Mines and Petroleum Resources shall table the report of the independent person in the Assembly if the Assembly is then sitting or, if the Assembly is not then sitting, shall file the report with the Clerk of the Assembly.
6 The Act is amended by adding the following sections:
Offences with regards to petroleum
Offence by wholesaler or controlled retailer and penalty
106.1 (1) Every wholesaler or controlled retailer who increases the price of a petroleum product contrary to Section 64.1(1) is guilty of an offence and is liable, on summary conviction, to a fine of not more than five hundred thousand dollars.
(2) Where an offence described in subsection (1) is committed by a person on more than one day or is continued for more than one day, each day on which the offence is committed or continued constitutes a separate offence.
Offence and penalty
106.2 (1) Subject to Section 106.1, every person who contravenes a provision of this Act or the regulations is guilty of an offence and is liable, on summary conviction, to a fine of not more than five thousand dollars.
(2) Where an offence described in subsection (1) is committed by a person on more than one day or is continued for more than one day, each day on which the offence is committed or continued constitutes a separate offence.
7 The Act is amended by adding the following:
(4) Without limiting sub-section (1), the Lieutenant Governor in Council may make regulations as follows:
(a) requiring notice of changes in the price of petroleum products and prescribing or respecting the form and manner of the notice, including the requirement to include justification for an increase in the price of a petroleum product;
(b) respecting the frequency and timing of changes in the price of petroleum products;
(c) prescribing
(i) a fixed wholesale price or a maximum and minimum wholesale price,
(ii) a maximum retail price,
(iii) minimum and maximum retail mark-ups,
for petroleum products;
(d) respecting fees to be charged to wholesalers to cover the costs of administering this Act and the regulations;
(e) respecting inspections and investigations of wholesalers and retailers;
(f) prescribing information that a wholesaler or a retailer is required to provide to the Commission;
(g) establishing or designating a board to administer this Act and the regulations, or any part of this Act and the regulations, and determining the powers and duties of that board;
(h) appointing a consumer advocate and determining the powers and duties of the advocate;
(i) prescribing additional penalties for a contravention of this Act or the regulations including, notwithstanding any other enactment, the suspension or revocation of licences and permits;
(j) exempting a petroleum product from the application of this Act or the regulations, or any part of the Act or the regulations;
(k) delegating to any person or board any powers or duties under this Act or the regulations;
(l) defining any word or expression used in this Act but not defined in this Act;
(m) further defining any word or expression defined in this Act;
(n) respecting any other matter the Lieutenant Governor in Council considers necessary or advisable to carry out effectively the intent and purpose of this Act.
(5) A regulation may apply to all wholesalers or retailers or to all petroleum products or to a class of wholesalers or retailers or to a class of petroleum products and there may be different regulations for different classes of such wholesalers or retailers or of such petroleum products.
Explanatory Note
This Bill amends the Utilities Commission Act by adding in sections 64.1, 72.1, 97.1, 98.1 106.1, 106.2, and sub-sections (4) and (5) of Section 125. These amendments allow for greater consumer protection by allowing the Commission to regulate retail petroleum products.
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