BILL 74 – 2003
MOTOR DEALER AMENDMENT ACT, 2003

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 Motor Dealer Act, R.S.B.C. 1996, c. 316, is amended

(a) by adding the following definitions:

"administrative agreement" means an administrative agreement entered into under Part 2.1;

"authority" means the Motor Dealer Council of British Columbia;

"salesperson" means a person, other than a motor dealer, who, on behalf of a motor dealer and for or in the expectation of a fee, gain or reward,

(a) solicits, negotiates or arranges for the sale of a motor vehicle to an individual, or

(b) in any way participates in the soliciting, negotiating or arranging for the sale of a motor vehicle to an individual; ,

(b) in the definition of "motor dealer" by striking out "does not include a person" and substituting "does not include a salesperson or a person", and

(c) by repealing the definition of "registered" and substituting the following:

"registered" means registered as a motor dealer under this Act; .

2 The following section is added:

Administration of this Act

1.1 The minister is responsible for the administration of this Act and the regulations except to the extent that the administration of any provision of this Act or the regulations is delegated under section 24.2 to the authority.

3 Section 2 (2) is amended by striking out "The registrar" and substituting "Subject to section 1.1, the registrar".

4 Section 4 (1) is repealed and the following substituted:

(1) An application for registration must be made to the registrar in the form approved by the registrar and must be accompanied by the prescribed fee.

5 Section 24 (1) is repealed and the following substituted:

(1) If a claim is paid out of the fund, the registrar may cancel the registration of the motor dealer who caused the claim.

6 The following Part is added:

Part 2.1

Administrative agreement with the authority

24.1 (1) The minister may enter into an administrative agreement with the authority to administer provisions of this Act and the regulations.

(2) An administrative agreement must include provisions that specify all of the following:

(a) the expected consumer protection and other public interest outcomes to be achieved by the authority in its administration of this Act and the regulations;

(b) the performance objectives of the authority;

(c) the acceptance by the authority of the responsibility to administer powers delegated to the authority under section 24.2;

(d) the financial arrangements between the authority and the government, including the collection and payment of fees due to the authority or the government and any transitional financial matters;

(e) the right of access of the authority to records created by the government and the right of access of the government to records created by the authority;

(f) the requirements for records management by the authority;

(g) the requirements that the authority report to the government any matters in respect of the operation of powers administered by the authority under this Act;

(h) a requirement that the authority carry adequate insurance;

(i) provisions for indemnification with respect to liability;

(j) the obligations of the parties if the agreement is terminated;

(k) the time period of the agreement or the procedure for the review of the agreement by the authority and the government;

(l) provisions for the settlement of disputes;

(m) a specification of the liability of the authority arising out of the authority carrying out its administration of this Act and the regulations.

(3) In addition, an administrative agreement must include provisions respecting a code of conduct for motor dealers.

Power to delegate administration of Act and regulations to the authority

24.2 (1) If the minister enters into an administrative agreement with the authority, the Lieutenant Governor in Council may, by regulation, delegate to the authority the administration of any of the provisions of this Act and the regulations except the power to make regulations.

(2) The minister must advise the authority if the minister considers that an amendment to the delegation regulation could substantively affect the administrative agreement.

(3) If the Lieutenant Governor in Council repeals a regulation made under subsection (1), the administrative agreement is terminated.

Delegation does not make the authority an agent of the government

24.3 The authority is not an agent of the government for the purpose of the administration of any provision of this Act and the regulations that is delegated under section 24.2.

Power of the authority to set fees for matters under its administration

24.4 (1) Despite any power of the Lieutenant Governor in Council or the minister to prescribe fees for matters under the administration of the government, the authority may set fees in accordance with a process established by the authority for any matter required under the authority's administration.

(2) The process established under subsection (1) must be in accordance with criteria that are established by regulation and the administrative agreement.

(3) Despite section 24.3, for the purposes of collecting fees on behalf of the government, the authority is an agent of the government.

Power to order an audit

24.5 The Lieutenant Governor in Council may direct a person to conduct an audit of the authority with respect to the administration of provisions delegated under section 24.2.

Power to appoint an administrator

24.6 (l) Despite the Society Act or any other Act, the Lieutenant Governor in Council, by order, may appoint an administrator to temporarily discharge the powers, duties and functions of the authority if the Lieutenant Governor in Council identifies an immediate and direct threat to the ability of the authority to function that could significantly compromise the protection of consumers or persons registered under this Act.

(2) The Lieutenant Governor in Council may specify one or more of the following in the order made under subsection (1):

(a) the powers, duties and functions of the administrator;

(b) that the members of the authority and any body or committee created by or under the authority cease to hold office;

(c) that during the term of the administrator, the powers of any members of the authority who continue to hold office are suspended unless otherwise provided in the order.

7 Section 35 is repealed and the following substituted:

Offences

35 (1) Section 5 of the Offence Act does not apply to this Act or the regulations.

(2) A person who contravenes section 3, 11, 12, 13, 20 (1), 25, 26, 29 (1), 32 or 34 of this Act or a provision of the regulations commits an offence.

(3) A person commits an offence if the person does any of the following:

(a) supplies false or misleading information to a person acting under this Act;

(b) refuses or fails to provide information as required under this Act.

(4) A person does not commit an offence under subsection (3) (a) if, at the time the information was supplied, the person did not know that it was false or misleading and, with the exercise of reasonable diligence, could not have known that it was false or misleading.

(5) If a corporation commits an offence under this Act or the regulations, an employee, officer, director or agent of the corporation who authorizes, permits or acquiesces in the commission of the offence also commits an offence, whether or not the corporation is prosecuted for the offence.

Penalties

35.1 (1) An individual who commits an offence under this Act or the regulations is liable

(a) to a fine of not more than $100 000,

(b) to imprisonment for not more than 6 months, or

(c) to both the fine referred to in paragraph (a) and the imprisonment referred to in paragraph (b).

(2) A corporation that commits an offence under this Act is liable to a fine of not more than $200 000.

8 The following section is added:

Power to make regulations for the licensing of salespersons

39 Without limiting section 38, the Lieutenant Governor in Council may make regulations authorizing the authority to license salespersons, including, without limitation,

(a) respecting the issuance, suspension and revocation of licences,

(b) prescribing the fee for licensing and for renewal of licensing and the security required to be provided, including

(i) different fees and amounts of security for different classes of salespersons,

(ii) additional fees and amounts of security for each place where the salesperson works, and

(iii) respecting fees and charges payable for licences, licence applications and amendments to a licence,

(c) respecting the conditions that may be imposed on a licence,

(d) respecting the term and expiration of licences,

(e) respecting the display and production of licences, and

(f) respecting the replacement of a licence.

Commencement

9 This Act comes into force by regulation of the Lieutenant Governor in Council.