First

Session, 49th General Assembly

Elizabeth II, 2020

BILL 21

AN ACT TO AMEND THE

HIGHWAY TRAFFIC ACT

Received

and Read the First Time ................................................................

Second

Reading ............................................................................................

Committee .....................................................................................................

Third

Reading ...............................................................................................

Royal

Assent .................................................................................................

HONOURABLE SHERRY

GAMBIN-WALSH

Minister of Service

Newfoundland and Labrador

Ordered to be printed by

the Honourable House of Assembly

EXPLANATORY NOTES

This Bill would amend the Highway Traffic Act to

prescribe documentation

required to be submitted with an application for a licence to carry on business

as a dealer;

prescribe the duties of a

dealer;

add inspection powers in

relation to dealers; and

expand regulation making

authority in relation to dealers.

A BILL

AN ACT TO AMEND THE HIGHWAY TRAFFIC ACT

Analysis

Ss. 16.2 to 27 R&S

17. Application

for licence

18. Licence

19. Duties

of dealer

20. Issuance

of temporary registration, identification plates and markers

21. Dealer

plates

22. Audit

23. Prohibition

24. Suspension

or cancellation of licence

25. Inspectors

26. Inspections

27. Warrants

27.1 Telewarrants

S. 186 Amdt.

Regulations

Sch. Amdt.

Commencement

Be it enacted by the Lieutenant-Governor and

House of Assembly in Legislative Session convened, as follows:

RSNL1990 cH-3

as amended

1. Sections 16.2 to 27 of the Highway Traffic Act are repealed and the following substituted:

Application for

licence

(1) An application for a licence to carry on business as a dealer shall be made to

the registrar in writing and in the form and manner set by the registrar.

(2) The registrar may issue a licence to carry on

business as a dealer to a person who

(

a) submits an application in the form and manner

set by the registrar;

(

b) pays the fee set by the minister;

(

c) provides a certificate of conduct from the

Royal Newfoundland Constabulary or a certified criminal records check from the

Royal Canadian Mounted Police;

(

d) submits security in the

form and amount prescribed in the regulations; and

(

e) provides the documents and

other information prescribed in the regulations.

(3) Notwithstanding subsection (2), where the

person applying for a licence to carry on business as a dealer is a

corporation, the registrar may issue a licence to the corporation where the

corporation

(

a) submits an application in the form and manner

set by the registrar;

(

b) pays the fee set by the minister;

(

c) provides a certificate of conduct from the

Royal Newfoundland Constabulary or a certified criminal records check from the

Royal Canadian Mounted Police for each director and officer of the corporation;

(

d) provides a current Certificate of Good

Standing from the Registry of Companies;

(

e) submits security in the

form and amount prescribed in the regulations; and

(

f) provides the documents and

other information prescribed in the regulations.

Licence

(1) A licence issued under

section 17

by the registrar, this Act and the regulations;

(

b) is not transferrable; and

(

c) remains in effect, subject to the submitting

of the documents and information prescribed in subsection (2) and the payment

of an annual fee set by the minister, until suspended or cancelled by the

registrar.

(2) Each year before the anniversary date of the

issuance of a licence to a dealer, the dealer shall

(

a) pay the fee set by the minister; and

(

b) provide the following to the registrar:

(

i) proof that the security referred to in

paragraph 17(2)(

d) or 17(3)(

e) is still valid,

(ii) a current Certificate of Good Standing from

the Registry of Companies, where the dealer is a corporation, and

(iii) the documents or other information prescribed

in the regulations.

(3) In addition to the documents referred to in

paragraph (2)(b), a dealer shall, where requested by the registrar, provide

(

a) a certificate of conduct from the Royal

Newfoundland Constabulary or a certified criminal records check from the Royal

Canadian Mounted Police; or

(

b) where the dealer is a corporation, a

certificate of conduct from the Royal Newfoundland Constabulary or a certified

criminal records check from the Royal Canadian Mounted Police for each director

and officer of the corporation.

Duties of dealer

19. A

dealer licensed under

section 17 shall

(

a) prepare, maintain and keep records in

accordance with the regulations;

(

b) disclose to a purchaser the information

prescribed in the regulations before selling a vehicle to a purchaser;

(

c) ensure that a second hand vehicle is inspected

by an official inspection station and that a vehicle inspection certificate is obtained from the official inspection station

before selling a second hand vehicle to a person other than another dealer;

(

d) store and use identification plates and dealer

plates in accordance with this Act and the regulations;

(

e) pay all outstanding fines, including a fine

under the Criminal Code payable to the Crown or a late payment penalty, within

the time allowed for payment; and

(

f) comply with this Act, the regulations and any

terms, conditions and requirements that may be prescribed by the registrar.

Issuance of temporary

registration, identification plates and markers

20. The

registrar may, in accordance with the regulations, authorize a dealer to issue to

an owner of a motor vehicle one or more of the following:

(

a) a temporary registration;

(

b) an identification plate; or

(

c) a marker.

Dealer plates

(1) The

registrar may, in accordance with the regulations, issue dealer plates to a

dealer to be attached to vehicles owned or operated by the dealer.

(2) A dealer plate may, during the period for

which it is issued, be transferred from a vehicle to another vehicle owned or

operated by the dealer to whom the dealer plate was issued.

(3) A vehicle shall not be operated with a dealer

plate attached except

(

a) by the dealer or an employee of the dealer; or

(

b) for a period not exceeding 3 consecutive days

by a person to whom the vehicle has been loaned by the dealer for demonstration

purposes with a view to the sale of the vehicle to that person.

(4) A dealer shall not attach, or permit to be

attached, a dealer plate to a vehicle that is used

(

a) for the carriage of persons or goods for

compensation;

(

b) for private use or hire; or

(

c) as a service vehicle.

(5) Where a licence is suspended or cancelled under

section 24, the dealer shall return to the registrar all dealer plates issued

to the dealer and all identification plates and markers provided to the dealer.

Audit

22. The

registrar may conduct an audit of a dealer in relation to

(

a) the dealer's inventory of dealer plates, identification

plates and markers;

(

b) the temporary registrations issued by the

dealer and the monies collected for those registrations; and

(

c) records required to be kept by a dealer.

Prohibition

(1) A person shall not carry on business as a dealer unless he or she is licensed

under this Act.

(2) A dealer shall not carry on business in a name

other than the name in which the licence is issued.

(3) A dealer shall not operate, or permit to be

operated, a vehicle owned by the dealer on a highway unless the vehicle

(

a) is registered to the dealer; or

(

b) has a dealer plate issued to the dealer

attached to the vehicle.

Suspension or

cancellation of licence

(1) The registrar may suspend or cancel a licence where the registrar is satisfied

that the person to whom the licence was issued

(

a) violated a term or condition of the licence;

(

b) made a material misrepresentation in the

application for a licence or in the documents or information submitted to the

registrar under

section 17 or 18;

(

c) contravened a provision of sections 17 to 23; or

(

d) contravened the regulations made under

paragraphs 186(1)(f.1) to (f.8).

(2) Where the registrar suspends or cancels a

licence, the registrar shall give written notice of the suspension or

cancellation in writing to the person to whom the licence was issued.

Inspectors

25. The

minister may appoint a person or category of persons to act as inspectors for

the purposes of this Act and the regulations.

Inspections

(1) An

inspector may, at all reasonable times and without a warrant, for a purpose

related to the administration or enforcement of sections 17 to 23 of this Act

or the regulations enacted under paragraphs 186(1)(f.1) to (f.8), inspect or examine the premises, property, books

and records of a dealer or person that the inspector considers relevant for the

purpose of determining compliance with sections 17 to 23 of this Act or the

regulations enacted under paragraphs 186(1)(f.1) to (f.8) and the inspector may

do one or more of the following:

(

a) enter a premises where

(

i) any property, books or records relating to a

dealer are or may be kept, or

(ii) anything is done or is suspected by the

inspector of being done in connection with a requirement of sections 17 to 23 of

this Act or the regulations enacted under paragraphs 186(1)(f.1) to (f.8);

(

b) make copies, extracts, photographs or videos

the inspector considers necessary;

(

c) require the dealer or the owner or person in

charge of a premises or their employees to

(

i) give the inspector all reasonable assistance,

including the production of property, books and records as requested by the

inspector, and to answer all questions relating to the administration,

compliance or enforcement of sections 17 to 23 of this Act and the regulations

enacted under paragraphs 186(1)(f.1) to (f.8) and, for that purpose, require a

person to attend at the premises with the inspector; and

(ii) make available the means to generate and

manipulate books and records that are in machine readable or electronic form

and any other means or information necessary for the inspector to assess the

books and records.

(2) Notwithstanding subsection (1), an inspector appointed

under this Act shall not enter a dwelling-house without the consent of the

occupant except under the authority of a warrant.

(3) A person shall not knowingly make a false or

misleading statement, either orally or in writing, to the inspector while the

inspector is exercising powers or carrying out duties or functions under this

Act or the regulations.

Warrants

(1) Where

an inspector under this Act

(

a) is denied entry to a premises or

dwelling-house to carry out an inspection; or

(

b) believes on reasonable and probable grounds

that there has been a contravention of sections 17 to 23 of this Act or the

regulations enacted under paragraphs 186(1)(f.1) to (f.8),

the inspector may file an application with

the Provincial Court for a warrant.

(2) Where a Provincial Court judge is satisfied on

the basis of an inspector's sworn information that there are reasonable grounds

to believe that the inspector has been denied entry to a premises or

dwelling-house to carry out an inspection or there has been a contravention of sections

17 to 23 of this Act or the regulations enacted under paragraphs 186(1)(f.1) to

(f.8), the judge may issue a warrant authorizing the inspector to do one or

both of the following:

(

a) enter the premises or dwelling-house and carry

out an inspection under this Act; or

(

b) seize or remove any of the property, books or

records that may be required as evidence of contravention and may retain those

documents until the time they are required in a court proceeding.

(3) A Provincial Court judge may receive and

consider an application for a warrant or extension of a warrant without notice

to the dealer or the owner or person in charge of the premises or

dwelling-house.

(4) A dealer or an owner or a person in charge of

a premises and their employees, or an occupant of a dwelling-house shall not

obstruct an inspector while the inspector is exercising the powers and

performing the duties and functions as authorized by the warrant.

(5) At the request of an inspector, a peace

officer shall assist in enforcing a warrant.

Telewarrants

27.1

(1) Where

in the opinion of an inspector it would not be practical to appear before a

Provincial Court judge to apply for a warrant, the inspector may make the

application by telephone or other means of telecommunication.

(2) Where the information

in support of an application for a warrant is submitted by telephone or other

means of telecommunication, the information shall be given under oath or

affirmation, and the oath or affirmation may be administered by telephone or

other means of telecommunication.

(3) The information

submitted by telephone or other means of telecommunication shall include

(

a) a statement of the circumstances that make it

impracticable for the inspector to appear personally before a Provincial Court

judge; and

(

b) a statement of the inspector's grounds for

believing that a person has contravened this Act or the regulations or that

entry onto public or private premises where a contravention of this Act or the

regulations is believed to occur has been denied.

(4) The sworn or affirmed

information submitted by telephone or other means of telecommunication by an

inspector shall specify the name of the person giving evidence, the facts

ascertained and the manner and location in which evidence was received, and a

record of that information shall be filed by the Provincial Court judge with

the clerk of the court over which the judge presides.

(5) Where an inspector

acts under the authority of a warrant obtained under this section, he or she

shall provide a facsimile of the warrant to the dealer or the owner or employee

of the premises or the owner or occupant of the dwelling house at the time the

warrant is carried out.

(6) In subsection (5),

"facsimile" includes a record produced by electronic means or a

written record of a telephone conversation made by both parties to the

conversation while it is in progress and which the parties have confirmed as to

its accuracy by reading their record of the conversation to one another at the

end of the conversation.

2. (1) Paragraph 186(1)(f.1) of the Act is repealed

and the following substituted:

(f.1) prescribing the information and documentation

to be provided with an application for a licence to carry on business as a

dealer;

(f.2) respecting security, including the forfeiture

of the security and the disposition of proceeds;

issued to a dealer;

(f.4) respecting records to be kept by a dealer;

(f.5) respecting information that a dealer is

required to provide to a person purchasing a vehicle;

(f.6) respecting the issuance, storage and use of identification

plates, markers and dealer plates;

(f.7) respecting the collection and remission of

fees for dealer plates, identification plates, markers and temporary

registrations;

(f.8) respecting audits of dealers;

(2) Section 186 of the Act is amended by adding

immediately after subsection (3) the following:

(4) The Lieutenant-Governor in Council may, in a

regulation made under subsection (1), prescribe penalties, in addition to the

penalties prescribed by this Act, for failure to comply with or other

contravention of

(

a) the regulations; or

(

b) a term or condition prescribed in or in

respect of or attached to a permit or licence issued under the regulations,

and the additional penalties prescribed

may be imposed by a court.

3. The

Schedule to the Act is amended by repealing

the rows relating to subsection 17(2) and sections 21, 22 and 27 and

substituting the following:

21(3)

Person using a vehicle with a dealer plate attached

who is not the dealer or an employee of the dealer or a person to whom the

vehicle had been loaned by the dealer for demonstration purposes for a period

not exceeding 3 consecutive days

14 days

2 days

21(4)(

a) Attaching, or permitting to be attached, a dealer

plate to a vehicle used for the carriage of persons or goods for compensation

14 days

2 days

21(4)(

b) Attaching, or permitting to be attached, a dealer

plate to a vehicle used for private use or hire

14 days

2 days

21(4)(

c) Attaching, or permitting to be attached, a dealer

plate to a vehicle used as a service vehicle

14 days

2 days

23(1)

Carrying on business as a dealer without a licence

14 days

2 days

23(2)

Carrying on business as a dealer in a name other than

the name in which licence was issued

14 days

2 days

23(3)

Using vehicle without vehicle being registered to the

dealer or without dealer plate attached

14 days

2 days

Commencement

4. This Act comes into force on January 1, 2021.

Queen's Printer