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Western Australia
Motor Vehicle Dealers Amendment Bill 2001
CONTENTS
Part 1 -- Preliminary
1. Short title 2
2. Commencement 2
3. The Act amended 2
Part 2 -- Amendments relating to
licensing
4. Section 5 amended 3
5. Section 5A inserted 6
6. Section 15 amended 6
7. Section 16 amended 9
8. Section 17 amended 10
9. Section 17A inserted 11
10. Section 17A amended 11
11. Section 17B replaced by sections 17C and 17D 14
12. Section 18 amended 15
13. Section 18A inserted 17
14. Section 19 amended 18
15. Section 19A amended 18
16. Sections 20 and 21 replaced by sections 20, 20A, 20B,
20C, 20D, 20E, 20F, 20G and 20H 19
17. Section 21A amended 26
18. Section 21B replaced by sections 21A, 21B and 21C 27
19. Section 21C amended 29
20. Section 22 amended 29
21. Section 22A amended 31
22. Section 23 amended 32
23. Section 24 amended 33
24. Section 25 amended 34
page i
72--2
Motor Vehicle Dealers Amendment Bill 2001
Contents
25. Section 26 amended 35
26. Sections 30, 31 and 31A replaced by sections 30, 31,
31A, 31B, 31C and 31D 36
27. Section 32 amended 39
28. Section 40A amended 40
29. Section 41A amended 40
30. Section 53 amended 41
31. Various provisions amended because of change to
expression "salesperson" 41
32. Various sections amended to change "registered" to
"authorised" 42
Part 3 -- Amendments relating to
offences and penalties
33. Section 14 amended 44
34. Section 21A amended 45
35. Section 21C amended 45
36. Section 22A amended 45
37. Section 23 amended 45
38. Section 24 amended 45
39. Section 25 amended 46
40. Section 26 amended 46
41. Section 27 amended 47
42. Section 29 amended 47
43. Section 33 amended 47
44. Section 37 amended 48
45. Section 40B amended 48
46. Section 41 amended 48
47. Section 43 amended 48
48. Section 44 amended 49
49. Section 45 amended 49
50. Section 50 amended 49
51. Section 52 amended 50
52. Section 55A inserted 50
53. Section 56 amended 52
Part 4 -- Amendments relating to
dealings in vehicles
54. Section 5 amended 54
page ii
Motor Vehicle Dealers Amendment Bill 2001
Contents
55. Heading inserted 54
56. Section 32 amended 54
57. Sections 32A to 32P and Division headings inserted 54
58. Heading inserted 68
59. Section 34 replaced by sections 34, 34A, 34B, 34C,
34D, 34E, 34F and 34G 68
60. Section 35 amended 73
61. Heading inserted 74
62. Section 40 repealed 74
63. Section 42A inserted 74
64. Section 56 amended 75
Part 5 -- Miscellaneous amendments
65. Section 6 amended 76
66. Section 8 amended 76
67. Section 27 amended 76
68. Section 28 replaced by sections 28 and 28A 76
69. Section 29 amended 80
Part 6 -- Consequential amendments
70. Chattel Securities Act 1987 amended 81
71. Pawnbrokers and Second-hand Dealers Act 1994
amended 81
72. Road Traffic Act 1974 amended 82
Part 7 --Transitional provisions
73. Definition 83
74. Licence applications in progress 83
75. Existing dealer's licence 83
76. Existing car market operator's licence 84
77. Premises covered by existing certificate of registration 84
78. Existing grounds for disciplinary action 85
79. Time limit for prosecution of existing offences 85
80. Application of Part III, Division 2 85
81. Dealer's obligation to repair 85
82. Application of section 42A 86
83. Further transitional provision may be made 86
page iii
Western Australia
LEGISLATIVE COUNCIL
(Transmitted from the Legislative Assembly)
Motor Vehicle Dealers Amendment
Bill 2001
(As amended in Committee)
A Bill for
An Act to amend the Motor Vehicle Dealers Act 1973, and to make
consequential amendments to certain other Acts.
The Parliament of Western Australia enacts as follows:
page 1
Motor Vehicle Dealers Amendment Bill 2001
Part 1 Preliminary
s. 1
Part 1 -- Preliminary
1. Short title
This Act may be cited as the Motor Vehicle Dealers Amendment
Act 2001.
5 2. Commencement
(1) The provisions of this Act come into operation on a day fixed
by proclamation.
(2) Different days may be fixed under subsection (1) for different
provisions.
10 3. The Act amended
The amendments in this Act are to the Motor Vehicle Dealers
Act 1973*.
[* Reprinted as at 14 November 1996.
For subsequent amendments see 2000 Index to Legislation of
15 Western Australia, Table 1, p. 298-9.]
page 2
Motor Vehicle Dealers Amendment Bill 2001
Amendments relating to licensing Part 2
s. 4
Part 2 -- Amendments relating to licensing
4. Section 5 amended
(1) Section 5(1) is amended by inserting the following definitions in
their appropriate alphabetical positions --
5 "
"authorisation" means --
(a) a dealer's licence;
(b) a yard manager's licence;
(c) a salesperson's licence; or
10 (d) registration as a car market operator;
"authorised premises" --
(a) in relation to a dealer, means premises --
(i) particulars of which are included in the
dealer's licence in accordance with
15 section 20E(5); or
(ii) for which a temporary permit is in force
under section 20H;
and
(b) in relation to a car market operator, means
20 premises particulars of which are included in
the registration of the operator in accordance
with section 21A(5);
"buying or selling", in relation to vehicles, includes
acting as agent for persons in connection with the
25 buying or selling of vehicles;
"car hire operator" means a person who carries on
the business of hiring vehicles, where the right to
purchase the vehicle is not included in that hiring;
page 3
Motor Vehicle Dealers Amendment Bill 2001
Part 2 Amendments relating to licensing
s. 4
"certificate of registration" means a certificate of
registration under section 17B(4);
"grant", in relation to an authorisation, means --
(a) the grant of a licence to a person or to
5 persons constituting a firm; or
(b) the registration of a person, or persons
constituting a firm, under section 17B;
"hold", in relation to an authorisation, means --
(a) to hold a licence; or
10 (b) to be registered under section 17B;
".
(2) Section 5(1) is amended by deleting the definition of "car
market operator's licence".
(3) Section 5(1) is amended by deleting the definition of "dealer"
15 and inserting the following definition instead --
"
"dealer" means --
(a) a person who carries on any class or
description of business of --
20 (i) buying or selling vehicles; or
(ii) acting as agent for other persons in
relation to the buying or selling of
vehicles,
(including a business of selling vehicles by
25 auction) that is prescribed by regulations
referred to in section 5A;
(b) a financier; or
(c) a car hire operator;
".
page 4
Motor Vehicle Dealers Amendment Bill 2001
Amendments relating to licensing Part 2
s. 4
(4) Section 5(5) is amended as follows:
(a) by deleting "issue of a licence" and inserting instead --
"
issue of any of the authorisations provided for by this
5 Act
";
(b) by deleting "renewal of a licence" and inserting
instead --
" renewal of that authorisation ".
10 (5) Section 5(7) is amended as follows:
(a) by deleting "a car market operator's licence" and
inserting instead --
"
a registration of a person as a car market operator
15 ";
(b) by deleting "the licence" and inserting instead --
" the registration ".
(6) After section 5(7) the following subsection is inserted --
"
20 (8) Where --
(a) a licence is granted to 2 or more persons under
section 15(2); or
(b) 2 or more persons are registered under
section 17B(2),
25 references in this Act to the holder of a licence or
authorisation, to a registered person or to a person who
is registered, as the case may be, are references to those
persons jointly, unless a contrary intention appears.
".
page 5
Motor Vehicle Dealers Amendment Bill 2001
Part 2 Amendments relating to licensing
s. 5
5. Section 5A inserted
After section 5 the following section is inserted --
"
5A. Classes of business and categories of licence
5 Regulations may be made under section 56
prescribing --
(a) different classes or descriptions of business for
the purposes of the definition of "dealer" in
section 5(1) including a business that consists
10 of or includes --
(i) the buying of vehicles for wrecking; or
(ii) the selling of vehicles by auction;
(b) a different category of dealer's licence --
(i) for each prescribed class or description
15 of business; or
(ii) for any combination of them;
and
(c) different circumstances under which a
particular category of licence may be granted.
20 ".
6. Section 15 amended
(1) Section 15(1) is amended as follows:
(a) by inserting after "dealer's licence" --
" of a particular category ";
25 (b) by inserting "and" after paragraph (b);
page 6
Motor Vehicle Dealers Amendment Bill 2001
Amendments relating to licensing Part 2
s. 6
(c) by deleting paragraphs (c) and (d) and inserting
instead --
"
(c) that he has --
5 (i) sufficient resources; and
(ii) sufficient knowledge of this Act.
".
(2) Section 15(2) is amended as follows:
(a) by inserting after "dealer's licence" --
10 " of a particular category ";
(b) by deleting paragraphs (b) and (c) and inserting
instead --
"
(b) that the persons constituting the firm have
15 sufficient resources; and
(c) that at least one of the natural persons referred
to in paragraph (a) has sufficient knowledge of
this Act.
".
20 (3) After section 15(2) the following subsections are inserted --
"
(2a) If there is a corporate member of a firm to which a
licence is granted under subsection (2), the licence
ceases to have effect if --
25 (a) a change occurs in the person or persons
concerned in the management or conduct of the
corporate member;
(b) the Board refuses to approve of the change
under section 23(3); and
page 7
Motor Vehicle Dealers Amendment Bill 2001
Part 2 Amendments relating to licensing
s. 6
(c) the Board does not approve of a further change
under subsection (2b).
(2b) The licence ceases to have effect 14 days after the
dealer is notified of the refusal under section 23(5),
5 unless, within that period or such further time as the
Board may by notice in writing allow, the change of
which the Board has refused to approve has been
altered or revoked, and the Board has approved of the
change as so altered or revoked.
10 ".
(4) Section 15(3) is amended as follows:
(a) by inserting after "dealer's licence" --
" of a particular category ";
(b) by deleting paragraphs (b) and (c) and inserting
15 instead --
"
(b) that it has sufficient resources; and
(c) that at least one of the natural persons referred
to in paragraph (a) has sufficient knowledge of
20 this Act.
".
(5) After section 15(3) the following subsections are inserted --
"
(4) A licence granted under subsection (3) ceases to have
25 effect if --
(a) a change occurs in the persons concerned in the
management or conduct of the body corporate
that holds the licence;
page 8
Motor Vehicle Dealers Amendment Bill 2001
Amendments relating to licensing Part 2
s. 7
(b) the Board has refused to approve of the change
under section 23(3); and
(c) the Board does not approve of a further change
under subsection (5).
5 (5) The licence ceases to have effect 14 days after the
dealer is notified of the refusal under section 23(5),
unless, within that period or such further time as the
Board may by notice in writing allow, the change of
which the Board has refused to approve has been
10 altered or revoked, and the Board has approved of the
change as so altered or revoked.
(6) In this section --
"sufficient knowledge of this Act" means a full
understanding of the duties and obligations
15 imposed by this Act on dealers, yard managers and
salespersons, but only so far as the Board
considers that those duties and obligations are
relevant to the category of licence applied for;
"sufficient resources" means sufficient material and
20 financial resources available to the person or
persons to enable the requirements of this Act to
be complied with, but only so far as the Board
considers that those requirements are relevant to
the category of licence applied for.
25 ".
7. Section 16 amended
(1) Section 16 is amended as follows:
(a) by inserting before "Subject" the subsection designation
"(1)";
page 9
Motor Vehicle Dealers Amendment Bill 2001
Part 2 Amendments relating to licensing
s. 8
(b) by inserting immediately before paragraph (a) --
" (a) of his identity; ";
(c) in paragraph (a) by deleting the paragraph designation
"(a)" and inserting instead --
5 " (aa) ".
(2) At the end of section 16 the following subsection is inserted --
"
(2) The secretary may, unless the Chairman otherwise
directs, by instrument in writing authorise an applicant
10 under subsection (1) to act as a yard manager as if the
applicant were the holder of a yard manager's licence
until --
(a) the application is dealt with by the Board; or
(b) the expiry of a period specified in the
15 instrument,
whichever occurs first.
".
8. Section 17 amended
(1) Section 17 is amended as follows:
20 (a) by inserting before "Subject" the subsection designation
"(1)";
(b) by inserting immediately before paragraph (a) --
" (a) of his identity; ";
(c) in paragraph (a) by deleting the paragraph designation
25 "(a)" and inserting instead --
" (aa) ".
page 10
Motor Vehicle Dealers Amendment Bill 2001
Amendments relating to licensing Part 2
s. 9
(2) At the end of section 17 the following subsection is inserted --
"
(2) The secretary may, unless the Chairman otherwise
directs, by instrument in writing authorise an applicant
5 under subsection (1) to act as a salesperson as if the
applicant were the holder of a salesperson's licence
until --
(a) the application is dealt with by the Board; or
(b) the expiry of a period specified in the
10 instrument,
whichever occurs first.
".
9. Section 17A inserted
After section 17 the following section is inserted --
15 "
17A. Training courses for dealers, yard managers and
salespersons
In addition to its functions under sections 15, 16 and 17
the Board may approve --
20 (a) courses for the training of dealers, yard
managers and salespersons; and
(b) the persons who provide those courses.
".
10. Section 17A amended
25 (1) Section 17A is amended by deleting "17A." and inserting
instead --
" 17B. ".
page 11
Motor Vehicle Dealers Amendment Bill 2001
Part 2 Amendments relating to licensing
s. 10
(2) Section 17A(1) is amended as follows:
(a) by deleting "for a car market operator's licence" and
inserting instead --
" to be registered as a car market operator ";
5 (b) by deleting "be granted such a licence upon satisfying
the Board --" and inserting instead --
"
be so registered upon satisfying the Board --
(a) of his identity; and
10 (b) that he is of or over the age of 18 years.
";
(c) by deleting paragraphs (a), (b), (c) and (d).
(3) Section 17A(2) is amended as follows:
(a) by deleting "for a car market operator's licence" and
15 inserting instead --
" to be registered as a car market operator ";
(b) by deleting "be granted such a licence upon satisfying
the Board --" and inserting instead --
"
20 be so registered upon satisfying the Board --
(a) of their identity; and
(b) that each of them is of or over the age of
18 years.
";
25 (c) by deleting paragraphs (a), (b) and (c).
page 12
Motor Vehicle Dealers Amendment Bill 2001
Amendments relating to licensing Part 2
s. 10
(4) Section 17A(3) is amended as follows:
(a) by deleting "for a car market operator's licence" and
inserting instead --
" to be registered as a car market operator ";
5 (b) by deleting "be granted such a licence upon satisfying
the Board --" and inserting instead --
"
be so registered upon satisfying the Board --
(a) of the identity of each of the persons concerned
10 in the management or conduct of the body
corporate; and
(b) that each of those persons is of or over the age
of 18 years.
";
15 (c) by deleting paragraphs (a), (b) and (c).
(5) After section 17A(3) the following subsection is inserted --
"
(4) The Board shall give a certificate of registration to --
(a) a person;
20 (b) persons constituting a firm; or
(c) a body corporate,
that becomes registered under this section.
".
page 13
Motor Vehicle Dealers Amendment Bill 2001
Part 2 Amendments relating to licensing
s. 11
11. Section 17B replaced by sections 17C and 17D
Section 17B is repealed and the following sections are inserted
instead --
"
5 17C. Power to refuse registration under section 17B or
renewal of registration
(1) Despite anything in section 17B, the Board may refuse
to register an applicant under that section if it is
satisfied that a relevant person has done or omitted to
10 do any thing or engaged in any conduct that renders the
applicant unfit to be registered.
(2) Despite anything in section 19(3), the Board may
refuse to renew the registration of a car market operator
if it is satisfied as mentioned in subsection (1).
15 (3) Subsections (1) and (2) are permissive only and do not
impose a duty on the Board to make enquiries
concerning a relevant person.
(4) In this section --
"relevant person" --
20 (a) means the applicant, where a person, not
being a body corporate, has applied under
section 17B(1) or 19(3), as the case may be;
(b) means any person --
(i) by which the firm is constituted; or
25 (ii) who is concerned in the management or
conduct of a body corporate by which
the firm is constituted,
where persons constituting a firm have
applied under section 17B(2) or 19(3), as the
30 case may be; and
page 14
Motor Vehicle Dealers Amendment Bill 2001
Amendments relating to licensing Part 2
s. 12
(c) means any person concerned in the
management or conduct of the body
corporate where a body corporate has
applied under section 17B(3) or 19(3), as the
5 case may be.
17D. Person cannot be car market operator and hold any
other authorisation
(1) Registration of a person as a car market operator
automatically --
10 (a) cancels a licence held by the person; or
(b) ceases to have effect if the person becomes the
holder of a licence.
(2) Subsection (1) applies whether the registration or
licence is granted to, or held by, a person solely or
15 jointly as a member of a firm.
".
12. Section 18 amended
(1) Section 18(1) is repealed and the following subsections are
inserted instead --
20 "
(1) The Board may refuse an application by a person, or
persons constituting a firm, for the grant or renewal of
an authorisation, if there is any ground on which an
order could be made under section 20(1) --
25 (a) in respect of the person or persons; or
(b) in respect of a person concerned in the
management or conduct of a body corporate
that is the applicant or one of the applicants.
page 15
Motor Vehicle Dealers Amendment Bill 2001
Part 2 Amendments relating to licensing
s. 12
(1a) The Board shall not refuse an application mentioned in
subsection (1) on a ground referred to in that
subsection unless it has --
(a) conducted an inquiry; and
5 (b) given the applicant an opportunity to show
cause why the application should not be
refused.
(1b) If --
(a) an application for renewal of an authorisation
10 has been made; and
(b) the Board considers that --
(i) there is a matter that could constitute a
ground for refusing the renewal under
subsection (1); but
15 (ii) there is insufficient time before the
authorisation expires for the Board to
hold an inquiry as required by
subsection (1a),
the Board may grant the renewal in terms that the
20 renewal does not affect the exercise after the renewal
of the Board's power under section 20 in respect of that
matter.
(1c) Subsection (1) is in addition to the other powers that
the Board has to refuse an application.
25 ".
(2) Section 18(2) is amended by deleting "17A" and inserting
instead --
" 17B ".
page 16
Motor Vehicle Dealers Amendment Bill 2001
Amendments relating to licensing Part 2
s. 13
13. Section 18A inserted
After section 18 the following section is inserted --
"
18A. Licence conditions
5 (1) The Board may, when granting a licence, attach any
condition or restriction to the licence.
(2) The Board may at any time decide that --
(a) a new condition or restriction shall be attached
to an existing licence; or
10 (b) a condition or restriction attached to an existing
licence shall be amended or removed.
(3) A decision under subsection (2) does not take effect
until a day determined by the Board.
(4) The day so determined cannot be before the Board
15 has --
(a) notified the licensee of the decision; and
(b) given the licensee a reasonable opportunity to
make submissions on it either orally or in
writing.
20 (5) The Board may determine that subsection (4) does not
apply in the case of a decision to remove a condition or
restriction.
(6) The powers conferred by this section are in addition to
the powers described in section 20A(5).
25 ".
page 17
Motor Vehicle Dealers Amendment Bill 2001
Part 2 Amendments relating to licensing
s. 14
14. Section 19 amended
(1) Section 19 is amended by deleting "a licence" in each place
where it occurs and inserting instead --
" an authorisation ".
5 (2) Section 19(2), (3)(a) and (b) and (3a) are amended by deleting
"the licence" in each place where it occurs and inserting
instead --
" the authorisation ".
(3) Section 19(3) is amended as follows:
10 (a) by deleting "that licence" and inserting instead --
" that authorisation ";
(b) by deleting "expired licence" and inserting instead --
" expired authorisation ".
(4) Section 19(3a) is amended by deleting "previous licence" and
15 inserting instead --
" previous authorisation ".
(5) Section 19(3b) is amended by deleting "17A" and inserting
instead --
" 17B ".
20 (6) Section 19(4)(b) is amended by inserting after "the holder" --
" or any joint holder ".
15. Section 19A amended
(1) Section 19A(1) and (2) are amended by deleting "a licence" in
both places where it occurs and inserting instead --
25 " an authorisation ".
page 18
Motor Vehicle Dealers Amendment Bill 2001
Amendments relating to licensing Part 2
s. 16
(2) Section 19A(1) is amended by deleting "licence, surrender that
licence" and inserting instead --
" authorisation, surrender that authorisation ".
(3) Section 19A(2) is amended by deleting "the licence" in each
5 place where it occurs and inserting instead --
" the authorisation ".
16. Sections 20 and 21 replaced by sections 20, 20A, 20B, 20C,
20D, 20E, 20F, 20G and 20H
Sections 20 and 21 are repealed and the following sections are
10 inserted instead --
"
20. Disciplinary powers of Board
(1) The Board may make one or more of the orders
authorised by section 20A in respect of a person if the
15 person has been found by the Board --
(a) to have contravened or failed to comply with --
(i) a provision of this Act; or
(ii) an authorisation or a condition or
restriction attached to an authorisation;
20 or
(b) to have done or omitted to do any thing, or
engaged in any conduct, where in the opinion
of the Board the act, omission or conduct
renders the person unfit --
25 (i) to be the holder, or a joint holder, of an
authorisation; or
page 19
Motor Vehicle Dealers Amendment Bill 2001
Part 2 Amendments relating to licensing
s. 16
(ii) to be concerned in the management or
conduct of a body corporate that is the
holder or a joint holder of an
authorisation.
5 (2) The Board may make an order disqualifying a person,
or the persons constituting a firm, from --
(a) holding a dealer's licence of a specified
category; or
(b) being registered as a car market operator,
10 if the person or persons has or have been found by the
Board --
(c) not to have sufficient material and financial
resources to enable the person or the firm, as
the case may be, to comply with the
15 requirements of this Act so far as those
requirements are relevant to --
(i) the category of licence held by the
person or persons; or
(ii) registration as a car market operator;
20 or
(d) to have ceased to carry on the business of a
dealer or a car market operator.
(3) The Board may make an order revoking an
authorisation of premises under section 20E or 21A if
25 the Board is no longer satisfied that the premises
comply with all relevant requirements of written laws
relating to planning that apply in respect of the
premises.
(4) The Board may make an order under this section of its
30 own motion or on the application of the Commissioner.
page 20
Motor Vehicle Dealers Amendment Bill 2001
Amendments relating to licensing Part 2
s. 16
(5) The Board shall not make an order under this section in
respect of a person unless it has --
(a) conducted an inquiry; and
(b) given the person an opportunity to show cause
5 why the order should not be made.
20A. Orders that may be made under section 20(1)
(1) The orders that the Board may make under
section 20(1) are those provided for by this section.
(2) An order may be made disqualifying a person from
10 holding or obtaining, whether solely or jointly, any
authorisation or any specified kind of authorisation,
whether or not at the time when the order is made that
person is the holder of an authorisation.
(3) An order may be made disqualifying a person from
15 being concerned in the management or conduct of a
body corporate that is the holder, or a joint holder, of
an authorisation, whether or not at the time when the
order is made the person is so concerned.
(4) Subject to section 20B, an order may be made that a
20 person pay to the Board a penalty not exceeding --
(a) $1 500 in the case of a person who is or was the
holder of a yard manager's licence or a
salesperson's licence; or
(b) $5 000 in the case of a person who is or was the
25 holder of a dealer's licence or registered as a
car market operator.
(5) An order may be made --
(a) attaching conditions or restrictions to an
authorisation; or
page 21
Motor Vehicle Dealers Amendment Bill 2001
Part 2 Amendments relating to licensing
s. 16
(b) amending a condition or restriction attached to
an authorisation.
(6) An order may be made reprimanding or cautioning a
person.
5 (7) An order under subsection (2) or (3) may be made to
have effect --
(a) for a period named in the order; or
(b) until a further order is made by the Board.
20B. Limitations on section 20A(4)
10 (1) The powers described in section 20A(4) and the
powers of a court to impose a penalty for an offence
against this Act shall not both be exercised in respect
of an act, omission or conduct of a person that is
substantially the same.
15 (2) A penalty that exceeds the relevant maximum fine
cannot be imposed under the powers described in
section 20A(4).
(3) In subsection (2) --
"relevant maximum fine" means, if the penalty is to
20 be imposed in respect of an act, omission or
conduct that constitutes an offence against this
Act, the maximum fine that could be imposed by a
court for that offence.
20C. Recovery of penalties
25 (1) An amount payable by a person under an order referred
to in section 20A(4) may be recovered by the
Commissioner as a debt in a court of competent
jurisdiction to the extent that it remains unpaid after
any time specified by the Board for payment.
page 22
Motor Vehicle Dealers Amendment Bill 2001
Amendments relating to licensing Part 2
s. 16
(2) If an amount referred to in subsection (1) has not been
paid by a person after any time specified by the Board
for payment, the Board may --
(a) treat the non-payment as an omission to which
5 section 20(1)(b) applies; and
(b) make an order described in section 20A(2) or
(3) against the person in respect of that
omission.
20D. Certain offences relating to disqualification
10 (1) A person to whom an order described in section 20A(3)
applies shall not contravene or fail to comply with the
order.
Penalty: $5 000 and a daily penalty of $100.
(2) A dealer or a car market operator shall not, during the
15 period when a person is disqualified under an order
described in section 20A(2) or (3) --
(a) employ the person in any capacity on
authorised premises; or
(b) allow the person to frequent such premises,
20 without the prior consent of the Board.
Penalty: $5 000.
20E. Premises at which dealers may carry on business
(1) A person shall not be granted a dealer's licence unless
the application for the licence --
25 (a) specifies each of the premises at which the
person proposes to carry on business under the
authority of the licence; and
page 23
Motor Vehicle Dealers Amendment Bill 2001
Part 2 Amendments relating to licensing
s. 16
(b) is accompanied by a planning certificate to the
satisfaction of the Board in respect of the
premises.
(2) A planning certificate is a certificate from the authority
5 responsible for town planning matters in the district in
which the premises are situated showing that the
proposed use of the premises --
(a) will comply; or
(b) would comply if any specified consent were
10 given,
with all relevant requirements of written laws relating
to planning that apply in respect of the premises.
(3) If an application complies with subsection (1) in
relation to any premises, the Board, if it grants the
15 application, shall authorise the holder of the licence to
carry on business at the premises under the authority of
the licence.
(4) If an application is accompanied by a certificate that is
given in terms of subsection (2)(b), the Board, in
20 granting the application, may attach a condition to the
licence that --
(a) the operation of the licence is suspended until
the Board is satisfied that all necessary consents
have been given; and
25 (b) the grant lapses if the Board is not so satisfied
before the expiry of a period specified by it.
(5) A dealer's licence shall include particulars of all
premises authorised under this section.
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Motor Vehicle Dealers Amendment Bill 2001
Amendments relating to licensing Part 2
s. 16
20F. Changes in authorised premises
(1) The Board may on --
(a) the application of the holder of a licence;
(b) the production of any planning certificate in
5 terms of section 20E(2) that the Board
considers necessary; and
(c) payment of the prescribed fee,
at any time approve an alteration or addition to the
particulars referred to in section 20E(5).
10 (2) If necessary, the Board may attach a condition of the
kind described in section 20E(4) to an approval under
subsection (1), and for that purpose section 20E(4) may
be read with all necessary changes.
20G. Certificate relating to premises to be displayed
15 (1) The Board shall issue a certificate to the holder of a
dealer's licence for each premises that are included in
the licence in accordance with section 20E(5).
(2) The certificate shall state that the holder is authorised
under section 20E to carry on business at the premises
20 under the authority of the licence.
(3) The holder of a licence shall cause a certificate issued
under subsection (1) to be displayed in a conspicuous
position on the premises to which the certificate
applies.
25 Penalty: $1 500.
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Motor Vehicle Dealers Amendment Bill 2001
Part 2 Amendments relating to licensing
s. 17
20H. Permits for special occasions
(1) This section applies where --
(a) a special occasion is being, or is to be, held at a
place for a limited period; and
5 (b) a licensed dealer wishes to carry on business in
premises at the place in connection with the
occasion.
(2) The dealer may apply to the Board in writing for a
temporary permit to carry on business as mentioned in
10 subsection (1)(b).
(3) If such an application is made, and the prescribed fee is
paid, the Board may grant to the dealer a temporary
permit to carry on business --
(a) at the premises;
15 (b) during the period; and
(c) subject to any conditions and restrictions,
specified in the permit.
(4) The Board may, by notice in writing to the holder of a
temporary permit, revoke the permit if the Board
20 considers that there is justification for doing so.
(5) The secretary shall retain a copy of each temporary
permit issued and the copy is taken to form part of the
register.
".
25 17. Section 21A amended
Section 21A is amended by deleting "21A." and inserting
instead --
" 21. ".
page 26
Motor Vehicle Dealers Amendment Bill 2001
Amendments relating to licensing Part 2
s. 18
18. Section 21B replaced by sections 21A, 21B and 21C
Section 21B is repealed and the following sections are inserted
instead --
"
5 21A. Premises at which car markets may be provided
(1) A person shall not be registered under section 17B as a
car market operator unless the application for
registration --
(a) specifies the premises that are proposed to be
10 provided for a car market under the authority of
the registration; and
(b) is accompanied by a planning certificate to the
satisfaction of the Board in respect of the
premises.
15 (2) A planning certificate is a certificate from the authority
responsible for town planning matters in the district in
which the premises are situated showing that the
proposed provision of the premises as a car market --
(a) will comply; or
20 (b) would comply if any specified consent were
given,
with all relevant requirements of written laws relating to
planning that apply in respect of the premises.
(3) If an application complies with subsection (1) in
25 relation to any premises, the Board, if it grants the
application, shall authorise the car market operator to
provide the premises for a car market under the
authority of the registration.
(4) If an application is accompanied by a certificate that is
30 given in terms of subsection (2)(b), the Board, in
page 27
Motor Vehicle Dealers Amendment Bill 2001
Part 2 Amendments relating to licensing
s. 18
granting the application, may attach a condition to the
registration that --
(a) the operation of the registration is suspended
until the Board is satisfied that all necessary
5 consents have been given; and
(b) the grant lapses if the Board is not so satisfied
before the expiry of a period specified by it.
(5) The registration of a person as a car market operator
shall include particulars of all premises for which an
10 authorisation is in force under this section.
21B. Changes in authorised premises
(1) The Board may on --
(a) the application of the registered person;
(b) the production of any planning certificate in
15 terms of section 21A(2) that the Board
considers necessary; and
(c) payment of the prescribed fee,
at any time approve an alteration or addition to the
particulars referred to in section 21A(5).
20 (2) If necessary, the Board may attach a condition of the
kind described in section 21A(4) to an approval under
subsection (1), and for that purpose section 21A(4)
may be read with all necessary changes.
21C. Certificate relating to premises to be displayed
25 (1) The Board shall issue to the registered person a
certificate for each premises that are included in the
registration of a car market operator in accordance with
section 21A(5).
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Motor Vehicle Dealers Amendment Bill 2001
Amendments relating to licensing Part 2
s. 19
(2) The certificate shall state that the person is authorised
under section 21A to provide the premises for a car
market under the authority of the registration.
(3) The registered person shall cause a certificate issued
5 under subsection (1) to be displayed in a conspicuous
position on the premises to which the certificate
applies.
Penalty: $1 500.
".
10 19. Section 21C amended
Section 21C is amended as follows:
(a) by deleting "21C." and inserting instead --
" 21D. ".
(b) by deleting "The holder of a car market operator's
15 licence" and inserting instead --
"
A person who is registered as a car market operator
";
(c) by deleting "a licence" and inserting instead --
20 " registration ";
(d) by deleting "the licence" in both places where it appears
and inserting instead --
" the registration ".
20. Section 22 amended
25 (1) Section 22(1) is amended by deleting "an order -- " and
inserting instead --
" order to which this subsection applies ".
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Motor Vehicle Dealers Amendment Bill 2001
Part 2 Amendments relating to licensing
s. 20
(2) Section 22(1)(a), (b), (c) and (d) are deleted.
(3) After section 22(1) the following subsection is inserted--
"
(1a) Subsection (1) applies to a decision or order of the
5 Board --
(a) refusing an application for --
(i) an authorisation; or
(ii) the renewal of an authorisation;
(b) refusing --
10 (i) to authorise premises under section 20E
or 21A;
(ii) to grant an approval under section 20F
or 21B; or
(iii) to grant a temporary permit under
15 section 20H;
(c) in exercise of its disciplinary powers under
section 20(1), (2) or (3);
(d) in exercise of its powers in relation to
conditions and restrictions under section 18A or
20 20H;
(e) revoking a temporary permit under
section 20H(4); or
(f) refusing to approve of a change submitted to it
under section 23.
25 ".
(4) Section 22(1a) is amended as follows:
(a) by deleting the subsection designation "(1a)" and
inserting instead --
" (1b) ";
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Motor Vehicle Dealers Amendment Bill 2001
Amendments relating to licensing Part 2
s. 21
(b) in paragraph (a) by deleting "a licence" and inserting
instead --
"
an authorisation or the renewal of an
5 authorisation
";
(c) by deleting paragraph (b) and inserting instead --
"
(b) authorising premises under section 20E or 21A;
10 ".
(5) Section 22(2) and (6) are amended by deleting "(1a)" in each
place where it occurs and inserting instead --
" (1b) ".
21. Section 22A amended
15 (1) Section 22A(1) is amended as follows:
(a) by deleting "and who pursuant to an order under
section 20" and inserting instead --
" or certificate of registration and who ";
(b) in paragraph (b) by deleting "a licence" and inserting
20 instead --
" that licence or registration ";
(c) by inserting after "the licence" --
" or certificate of registration ";
(d) by deleting "21 or 21B" and inserting instead --
25 " 20G or 21C ".
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Motor Vehicle Dealers Amendment Bill 2001
Part 2 Amendments relating to licensing
s. 22
(2) Section 22A(3) is repealed and the following subsection is
inserted instead --
"
(3) Where an authorisation --
5 (a) is cancelled; or
(b) ceases to have effect under section 17D,
the person who was the holder of the authorisation
shall return to the secretary any relevant licence or
certificate of registration.
10 ".
22. Section 23 amended
(1) Section 23(1) is amended by deleting "is granted under
subsection (2) of section 15 or subsection (2) of section 17A"
and inserting instead --
15 "
under section 15(2) or a registration under
section 17B(2) is in force
".
(2) Section 23(1) is amended by inserting after "to the secretary" --
20 "
by the holder of the licence or the registered person, as
the case may require
".
(3) Section 23(2) is amended by deleting "is granted under
25 subsection (3) of section 15 or subsection (3) of section 17A"
and inserting instead --
"
under section 15(3) or a registration under
section 17B(3) is in force
30 ".
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Motor Vehicle Dealers Amendment Bill 2001
Amendments relating to licensing Part 2
s. 23
(4) Section 23(2) is amended by inserting after "to the secretary" --
"
by the holder of the licence or the registered person, as
the case may require
5 ".
(5) Section 23(5) is amended by deleting "car market operator" and
inserting instead --
" registered person ".
23. Section 24 amended
10 (1) Section 24(1) is repealed and the following subsection is
inserted instead --
"
(1) The secretary shall cause a register to be kept showing
the prescribed particulars and matters relating to --
15 (a) authorisations;
(b) the holders of authorisations; and
(c) premises authorised under sections 20E and
21A.
".
20 (2) Section 24(2) is amended as follows:
(a) by deleting "a licence" and inserting instead --
" an authorisation ";
(b) by deleting "valid licence" and inserting instead --
" valid authorisation ".
page 33
Motor Vehicle Dealers Amendment Bill 2001
Part 2 Amendments relating to licensing
s. 24
(3) After section 24(4) the following subsections are inserted --
"
(5) The register shall be open for inspection by any person,
on payment of the prescribed fee, during normal office
5 hours of the Board.
(6) A person may, on payment of the prescribed fee, obtain
from the secretary a certificate under his hand --
(a) showing whether or not a person was the holder
of any authorisation on a specified date or
10 during a specified period; or
(b) as to any other matter appearing in the register.
(7) A certificate referred to in subsection (6) is admissible
in proceedings as evidence of the matters stated in the
certificate.
15 ".
24. Section 25 amended
(1) Section 25(1) is amended by inserting after "financier" --
" or car hire operator ".
(2) Section 25(1a) is amended by inserting after "financier" in both
20 places where it occurs --
" or car hire operator ".
(3) Section 25(2) is amended by deleting "or financier" and
inserting instead --
" , financier or car hire operator ".
page 34
Motor Vehicle Dealers Amendment Bill 2001
Amendments relating to licensing Part 2
s. 25
(4) Section 25(2a) is amended as follows:
(a) by deleting "The holder of a car market operator's
licence" and inserting instead --
"
5 A person who is registered as a car market operator
";
(b) by deleting "in respect of which the licence is granted"
and inserting instead --
"
10 authorised under section 21A in relation to that
registration
";
(c) in paragraph (a) by deleting "licence" and inserting
instead --
15 " registration ".
(5) Section 25(2e) is amended by deleting "at premises pursuant to
a car market operator's licence" and inserting instead --
"
by a person who is registered as a car market operator
20 at premises authorised under section 21A in relation to
that registration
".
25. Section 26 amended
Section 26(1) is amended by inserting after "financier" --
25 " or car hire operator ".
page 35
Motor Vehicle Dealers Amendment Bill 2001
Part 2 Amendments relating to licensing
s. 26
26. Sections 30, 31 and 31A replaced by sections 30, 31, 31A,
31B, 31C and 31D
Sections 30, 31 and 31A are repealed and the following sections
are inserted instead --
5 "
30. Dealers to be licensed and premises to be authorised
(1) A person shall not engage in unlicensed dealing.
Penalty: $50 000 and a daily penalty of $1 000.
(2) A dealer shall not carry on business as a dealer at any
10 premises except under and in accordance with --
(a) an authorisation under section 20E; or
(b) a permit granted under section 20H.
Penalty: $5 000.
(3) For the purposes of subsection (1) a person engages in
15 unlicensed dealing if he carries on any class or
description of business as a dealer otherwise than --
(a) under and in accordance with a dealer's licence
for that class or description of business; and
(b) in accordance with any condition or restriction
20 attached to the licence.
(4) Despite subsection (3) a person does not engage in
unlicensed dealing if he --
(a) acts in a business only in the capacity of a yard
manager or salesperson; or
25 (b) carries on or acts in a business only in the
capacity of a financier, car hire operator or
auctioneer and --
(i) has an exemption under section 31; and
page 36
Motor Vehicle Dealers Amendment Bill 2001
Amendments relating to licensing Part 2
s. 26
(ii) complies with any condition or
restriction to which the exemption is
subject.
31. Exemptions from compliance with this Act
5 (1) The Board may in writing grant an exemption from
compliance with this Act to a financier, car hire
operator or an auctioneer who --
(a) applies for an exemption in the approved form
and pays the prescribed fee; and
10 (b) satisfies the Board --
(i) in the case of a financier, that he
ordinarily disposes of vehicles which he
has repossessed directly to dealers;
(ii) in the case of a car hire operator, that
15 the buying or selling of vehicles does
not comprise a significant part of his
business as a car hire operator and that
he ordinarily disposes of vehicles
bought in the course of his business
20 directly to dealers; or
(iii) in the case of an auctioneer, that the
selling of vehicles by auction does not
comprise a significant part of his
business as an auctioneer.
25 (2) An exemption under subsection (1) --
(a) may be granted subject to conditions;
(b) extends to a person acting as an employee or
agent of the financier, car hire operator or
auctioneer; and
30 (c) may be revoked by the Board at any time.
page 37
Motor Vehicle Dealers Amendment Bill 2001
Part 2 Amendments relating to licensing
s. 26
31A. Yard managers to be licensed
A person shall not act in the capacity of a yard
manager, other than for or on behalf of a financier or
car hire operator, unless --
5 (a) he is --
(i) the holder of a yard manager's licence
under section 16(1); or
(ii) taken to be the holder of such licence
under section 16(2);
10 and
(b) he complies with any condition or restriction
attached to the licence.
Penalty: $5 000 and a daily penalty of $100.
31B. Salespersons to be licensed
15 A person shall not act in the capacity of a salesperson,
other than for or on behalf of a financier or car hire
operator, unless --
(a) he is --
(i) the holder of a salesperson's licence
20 under section 17(1); or
(ii) taken to be the holder of such a licence
under section 17(2);
and
(b) he complies with any condition or restriction
25 attached to the licence.
Penalty: $5 000 and a daily penalty of $100.
page 38
Motor Vehicle Dealers Amendment Bill 2001
Amendments relating to licensing Part 2
s. 27
31C. Unlicensed person not to be employed
A dealer shall not have a person employed or engaged
in his business if the performance of the person's duties
involve the person contravening section 31A or 31B, as
5 the case may be.
Penalty: $5 000 and a daily penalty of $100.
31D. Car market operators to be registered and premises
to be authorised
(1) A person shall not --
10 (a) carry on or act in the business of a car market
operator; or
(b) advertise that he --
(i) carries on or acts in; or
(ii) is willing to carry on or act in,
15 the business of a car market operator,
unless he is registered as a car market operator under
section 17B.
Penalty: $50 000 and a daily penalty of $1 000.
(2) A car market operator shall not provide premises for a
20 car market unless the premises are authorised to be so
provided under section 21A.
Penalty: $5 000.
".
27. Section 32 amended
25 Section 32(2) is amended by inserting after "financier" in the
3 places where it occurs --
" or car hire operator ".
page 39
Motor Vehicle Dealers Amendment Bill 2001
Part 2 Amendments relating to licensing
s. 28
28. Section 40A amended
Section 40A(3)(a) and (b) are amended by deleting "the holder
of a car market operator's licence" in both places where it
occurs and inserting instead --
5 " registered under section 17B as a car market operator ".
29. Section 41A amended
(1) Section 41A(1) is amended as follows:
(a) in paragraph (a) by inserting after "financier" the
following --
10 " or car hire operator ";
(b) in paragraph (b) by inserting after "financier" in both
places where it occurs the following --
" or car hire operator ".
(2) Section 41A(5) is amended as follows:
15 (a) by deleting paragraph (b)(i) and inserting instead --
"
(i) where the vehicle was sold by a
financier or car hire operator, that
financier or care hire operator;
20 ";
(b) in paragraph (b) by deleting "or person" and inserting
instead --
" , person or car hire operator ";
(c) in paragraph (c) by deleting "or the financier" and
25 inserting instead --
" , the financier or the car hire operator ".
page 40
Motor Vehicle Dealers Amendment Bill 2001
Amendments relating to licensing Part 2
s. 30
30. Section 53 amended
Section 53 is amended by deleting "subsection (5) of
section 30" and inserting instead --
" 31B ".
5 31. Various provisions amended because of change to
expression "salesperson"
(1) The Act is amended by deleting "salesman" where it occurs in
the provisions referred to in the Table to this subsection and in
each case inserting --
10 " salesperson ".
Table
s. 17(d) s. 32(2)
s. 27(1) (twice) s. 33(7)(a)
s. 27(1a)(a) s. 42
s. 27(3) s. 54(1) (twice)
s. 29(1) s. 54(2)
(2) Section 5(1) is amended in the definition of "salesman" by
deleting " "salesman" " and inserting instead --
" "salesperson" ".
15 (3) Section 5(1) is amended by deleting the definition of
"salesman's licence" and inserting the following definition
instead --
"
"salesperson's licence" means a salesperson's licence
20 granted under section 17;
".
page 41
Motor Vehicle Dealers Amendment Bill 2001
Part 2 Amendments relating to licensing
s. 32
(4) Section 16(c) is amended by deleting "salesmen" and inserting
instead --
" salespersons ".
(5) Section 17 is amended as follows:
5 (a) by deleting "salesman's" and inserting instead --
" salesperson's ";
(b) in paragraph (c) by deleting "salesmen" and inserting
instead --
" salespersons ".
10 (6) Section 24(3) is amended by deleting "salesman's" and
inserting instead --
" salesperson's ".
(7) Section 56(2)(g) is amended by deleting "salesmen" and
inserting instead --
15 " salespersons ".
32. Various sections amended to change "registered" to
"authorised"
(1) The Act is amended by deleting "registered" where it occurs in
the provisions referred to in the Table to this section and in each
20 case inserting --
" authorised ".
Table
s. 25(1) s. 27(4)(b)
s. 27(1) s. 53(1) (twice)
s. 27(3) (twice)
page 42
Motor Vehicle Dealers Amendment Bill 2001
Amendments relating to licensing Part 2
s. 32
(2) Section 27(1a)(b) is amended by deleting " "registered" and
inserting instead --
" "authorised ".
page 43
Motor Vehicle Dealers Amendment Bill 2001
Part 3 Amendments relating to offences and penalties
s. 33
Part 3 -- Amendments relating to offences
and penalties
33. Section 14 amended
Section 14(3) is amended as follows:
5 (a) by deleting "If any person" and inserting instead --
" A person shall not ";
(b) in paragraph (a) --
(i) by deleting "who has" and inserting instead --
" having ";
10 (ii) by deleting "fails" and inserting instead --
" fail ";
(c) in paragraph (b) by deleting "interrupts" and inserting
instead --
" interrupt ";
15 (d) in paragraph (c) --
(i) by deleting "refuses" and inserting instead --
" refuse ";
(ii) by deleting "fails" and inserting instead --
" fail ";
20 (iii) by deleting "makes a false statement to the
Board," and inserting instead --
" make a false statement to the Board. ";
(e) by deleting "he shall be guilty of an offence and liable to
a penalty not exceeding $400.";
25 (f) by inserting at the foot of the subsection --
" Penalty: $5 000. ".
page 44
Motor Vehicle Dealers Amendment Bill 2001
Amendments relating to offences and penalties Part 3
s. 34
34. Section 21A amended
Section 21A is amended by inserting at the foot of the
section --
" Penalty: $1 500. ".
5 35. Section 21C amended
Section 21C is amended by inserting at the foot of the
section --
" Penalty: $1 500. ".
36. Section 22A amended
10 Section 22A is amended by inserting at the foot of the
section --
" Penalty: $1 500. ".
37. Section 23 amended
(1) Section 23(1) is amended by inserting at the foot of the
15 subsection --
" Penalty: $2 000. ".
(2) Section 23(2) is amended by inserting at the foot of the
subsection --
" Penalty: $2 000. ".
20 38. Section 24 amended
Section 24(3) is amended by inserting at the foot of the
subsection --
" Penalty: $1 500. ".
page 45
Motor Vehicle Dealers Amendment Bill 2001
Part 3 Amendments relating to offences and penalties
s. 39
39. Section 25 amended
(1) Section 25(2e) is amended in the penalty provision by deleting
"$200" and inserting instead --
" $1 000 ".
5 (2) Section 25(3) is repealed and the following subsection is
inserted instead --
"
(3) A person shall not knowingly --
(a) make a false entry; or
10 (b) cause a false entry to be made,
in any register kept for the purposes of this section.
".
(3) Section 25 is amended by inserting at the foot of the section --
"
15 Penalty applicable to subsections (1), (1a), (2), (2a),
(2b) and (3): $5 000.
".
40. Section 26 amended
(1) Section 26(1) is amended by inserting at the foot of the
20 subsection --
" Penalty: $2 000. ".
(2) Section 26(2) is amended by inserting at the foot of the
subsection --
" Penalty: $2 000. ".
page 46
Motor Vehicle Dealers Amendment Bill 2001
Amendments relating to offences and penalties Part 3
s. 41
41. Section 27 amended
(1) Section 27(1) is amended by inserting at the foot of the
subsection --
" Penalty: $5 000. ".
5 (2) Section 27(3) is amended by inserting at the foot of the
subsection --
" Penalty: $5 000. ".
42. Section 29 amended
Section 29 is amended by inserting at the foot of the section --
10 "
Penalty applicable to subsections (1), (2), (3)
and (5): $5 000.
".
43. Section 33 amended
15 (1) Section 33(1) is repealed and the following subsection is
inserted instead --
"
(1) A dealer, yard manager or salesperson shall not --
(a) offer or display a second-hand vehicle for sale;
20 or
(b) cause, suffer or permit a second-hand vehicle to
be offered or displayed for sale,
unless there is attached to the vehicle in the manner
specified in subsection (6) a notice in the prescribed
25 form containing the prescribed particulars.
Penalty: $2 000.
".
page 47
Motor Vehicle Dealers Amendment Bill 2001
Part 3 Amendments relating to offences and penalties
s. 44
(2) Section 33(4) is amended in the penalty provision by deleting
"$500" and inserting instead --
" $5 000 ".
(3) Section 33(7) is amended by inserting at the foot of the
5 subsection --
" Penalty: $1 000. ".
44. Section 37 amended
Section 37(5) is amended in the penalty provision by deleting
"$500" and inserting instead --
10 " $5 000 ".
45. Section 40B amended
Section 40B(1) is amended in the penalty provision by deleting
"$500" and inserting instead --
" $2 000 ".
15 46. Section 41 amended
Section 41(1) is amended in the penalty provision by deleting
"$500" and inserting instead --
" $2 000 ".
47. Section 43 amended
20 Section 43(1) is amended in the penalty provision by deleting
"$500" and inserting instead --
" $1 000 ".
page 48
Motor Vehicle Dealers Amendment Bill 2001
Amendments relating to offences and penalties Part 3
s. 48
48. Section 44 amended
Section 44(1) is amended in the penalty provision by deleting
"$500" and inserting instead --
" $5 000 ".
5 49. Section 45 amended
Section 45(1) is amended as follows:
(a) by inserting after paragraph (a) the following
paragraph --
"
10 (aa) state or represent as the reading of an odometer
on the vehicle a reading other than the reading
that is the same as the reading at the time the
vehicle was acquired from the last owner of the
vehicle, increased by the distance travelled by
15 the vehicle since it was so acquired;
";
(b) by deleting the penalty provision and inserting
instead --
"
20 Penalty applicable to paragraph (a): $50 000.
Penalty applicable to other paragraphs: $5 000.
".
50. Section 50 amended
Section 50 is amended in the penalty provision by deleting
25 "$500" and inserting instead --
" $5 000 ".
page 49
Motor Vehicle Dealers Amendment Bill 2001
Part 3 Amendments relating to offences and penalties
s. 51
51. Section 52 amended
(1) Section 52(1) and (2) are repealed.
(2) Section 52(4) is amended by deleting "12 months" and inserting
instead --
5 " 2 years ".
52. Section 55A inserted
After section 55 the following section is inserted --
"
55A. Infringement notices
10 (1) In subsection (3), (6) or (7) --
"designated official" means a person designated under
subsection (13) by the Commissioner for the
purposes of the subsection in which the term is
used.
15 (2) An authorised officer or a member of the Police Force
who has reason to believe that a person has committed
a prescribed offence against this Act may, within
6 months after the alleged offence is believed to have
been committed, give an infringement notice to the
20 alleged offender.
(3) An infringement notice is to be in the prescribed form
and is to --
(a) contain a description of the alleged offence;
(b) advise that if the alleged offender does not wish
25 to have a complaint of the alleged offence
heard and determined by a court, the amount of
money specified in the notice as being the
modified penalty for the offence may be paid to
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a designated official within a period of 28 days
after the giving of the notice; and
(c) inform the alleged offender as to who are
designated officials for the purposes of
5 receiving payment of modified penalties.
(4) In an infringement notice the amount specified as being
the modified penalty for the offence referred to in the
notice is to be the amount that was the prescribed
modified penalty at the time the alleged offence is
10 believed to have been committed.
(5) The modified penalty that may be prescribed for an
offence is not to exceed 20% of the maximum penalty
that could be imposed for that offence by a court.
(6) A designated official may, in a particular case, extend
15 the period of 28 days within which the modified
penalty may be paid and the extension may be allowed
whether or not the period of 28 days has elapsed.
(7) A designated official may, whether or not the modified
penalty has been paid, withdraw an infringement notice
20 by sending to the alleged offender a notice in the
prescribed form stating that the infringement notice has
been withdrawn.
(8) Where an infringement notice is withdrawn after the
modified penalty has been paid, the amount is to be
25 refunded.
(9) Subsection (10) applies where the modified penalty
specified in an infringement notice has been paid
within 28 days or such further time as is allowed and
the notice has not been withdrawn.
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(10) Where this subsection applies it prevents the bringing
of proceedings and the imposition of penalties to the
same extent that they would be prevented if the alleged
offender had been convicted by a court of, and
5 punished for, the alleged offence.
(11) Payment of a modified penalty is not to be regarded as
an admission for the purposes of any proceedings,
whether civil or criminal.
(12) Unless subsection (8) requires it to be refunded, an
10 amount paid as a modified penalty is to be dealt with as
if it were a penalty imposed by a court as a penalty for
an offence.
(13) The Commissioner may, in writing, designate
persons or classes of persons for the purposes of
15 subsection (3), (6) or (7) or for the purposes of 2 or
more of those subsections, but an authorised officer or
a member of the Police Force is not eligible to be so
designated.
(14) The Commissioner is to issue to each authorised officer
20 a certificate of his authorisation under subsection (2),
and the authorised officer is to produce the certificate
whenever required to do so by a person to whom an
infringement notice has been or is about to be given.
".
25 53. Section 56 amended
Section 56(2) is amended as follows:
(a) by deleting "and" after paragraph (g);
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(b) by inserting after paragraph (g) --
"
(ga) prescribe --
(i) offences for which an infringement
5 notice may be given under section 55A;
and
(ii) for each prescribed offence --
(I) a modified penalty; or
(II) a different modified penalty
10 according to the circumstances
of the offence,
but not in any case exceeding the
amount allowed by section 55A(5); and
";
15 (c) in paragraph (h) by deleting "$200" and inserting
instead --
" $2 000 ".
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Part 4 -- Amendments relating to dealings in vehicles
54. Section 5 amended
Section 5(1) is amended in the definition of "demonstration
vehicle", in paragraph (b), by deleting "subsection (1) of ".
5 55. Heading inserted
After the heading to Part III, the following heading is
inserted --
" Division 1 -- Preliminary ".
56. Section 32 amended
10 Section 32(1) is amended by deleting "The" and inserting
instead --
" Without limiting Division 2, the ".
57. Sections 32A to 32P and Division headings inserted
After section 32 the following sections and Division headings
15 are inserted --
"
Division 2 -- Sales on consignment
32A. Definitions
In this Division --
20 "consignment agreement" means an agreement under
which a dealer agrees --
(a) to sell a vehicle (including by auction) for a
person who is not --
(i) a dealer or a trade owner; or
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(ii) a person acting as an agent of a dealer
or a trade owner;
and
(b) to pay the proceeds of sale after the
5 deduction of any agreed commission and
charges to, or partly to, each of the
following --
(i) any person authorised by the consignor;
(ii) any person holding a security interest in
10 the vehicle;
"consignor" means a person for whom a dealer agrees
to sell a vehicle under a consignment agreement;
"security interest" has the same meaning as it has in
the Chattel Securities Act 1987;
15 "trust account" means a trust account required to be
maintained by a dealer under section 32C.
32B. Requirements for consignment agreements
(1) A dealer shall not accept a vehicle under a consignment
agreement unless the agreement --
20 (a) is in writing signed by the consignee, or his
agent, and the consignor; and
(b) contains the prescribed particulars, terms and
conditions.
Penalty: $5 000.
25 (2) Subsection (1)(b) does not prevent a consignment
agreement containing, or incorporating by reference,
other terms and conditions so long as they are not
inconsistent with, and do not limit or diminish, those
that are prescribed.
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(3) A dealer shall ensure that a copy of a consignment
agreement is given to the consignor immediately after
the agreement is signed by the parties to it.
Penalty: $5 000.
5 32C. Dealer selling on consignment to have trust account
A dealer shall not accept a vehicle for sale under a
consignment agreement unless the dealer has open with
a prescribed financial institution at least one account
designated as a trust account.
10 Penalty: $5 000.
32D. Payments to trust account
(1) Where money is received by a dealer from the sale of a
vehicle under a consignment agreement, the dealer
shall pay all of the money into a trust account not later
15 than the next day after the day of receipt on which the
relevant financial institution is open for business.
Penalty: $5 000.
(2) Where the consideration or any part of the
consideration received by a dealer from the sale of a
20 vehicle under a consignment agreement is represented
by another vehicle or other thing ("the trade-in"), the
dealer shall pay an amount of money equivalent to the
value of that trade-in into a trust account not later than
the next day after the day of receipt on which the
25 relevant financial institution is open for business.
Penalty: $5 000.
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(3) For the purposes of subsection (2) the value of
a trade-in is --
(a) where the trade-in represents part of the
consideration for the sale of a vehicle under
5 consignment, the value ascribed to the trade-in
for the purposes of the sale by the parties to the
sale or, if no agreed value is so ascribed, the
market value of the trade-in at the time of the
sale; or
10 (b) where the trade-in represents all of the
consideration for the sale of a vehicle under
consignment, the value ascribed to the trade-in
for the purposes of the sale by the parties to the
sale or, if no agreed value is so ascribed, the
15 market value of the trade-in at the time of the
sale, less any amount paid, or to be paid, by the
dealer to the purchaser of the consigned vehicle
in connection with the sale.
(4) A dealer shall not pay money into a trust account other
20 than money received from the sale of vehicles under
consignment agreements or money referred to in
subsection (2).
Penalty: $5 000.
32E. Withdrawals from trust account
25 (1) A dealer shall not, without the prior written approval of
the Board, withdraw money paid into a trust account
from the sale of a vehicle under a consignment
agreement, except for the purpose of --
(a) paying an amount properly payable to --
30 (i) the consignor of the vehicle concerned
or a person authorised by him; or
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(ii) the holder of a security interest in the
vehicle;
(b) satisfying a debt due to the dealer by the
consignor for commission or other charges; or
5 (c) paying an amount that is authorised by the
regulations to be paid.
Penalty: $5 000.
(2) Except as otherwise provided by the regulations,
money held in a trust account is not available for
10 payment of the debts of a dealer or liable to be taken in
execution under the order or process of a court.
(3) Nothing in this Division takes away or affects a lawful
claim or lien that a person has against or on any money
received from the sale of a vehicle under a
15 consignment agreement.
32F. Provisions relating to financial institutions
(1) A financial institution does not incur any liability or
obligation to any person by reason only that it has
failed to secure compliance by a dealer with any
20 provision of this Division, or of the regulations,
relating to --
(a) the keeping of; or
(b) the withdrawal of money from,
a trust account.
25 (2) A financial institution at which a dealer maintains a
trust account shall not have any recourse or right,
whether by way of set off, counterclaim, charge or
otherwise, to money standing to the credit of that
account in respect of any liability of the dealer to the
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financial institution, other than a liability in connection
with that account.
32G. Payment to consignor
Where a dealer sells a vehicle under a consignment
5 agreement he shall pay the proceeds of sale as required
by --
(a) the provisions of the agreement; and
(b) the terms and conditions prescribed for the
purposes of section 32B(1)(b).
10 Penalty: $5 000.
32H. Dealers to maintain accounts
A dealer shall --
(a) keep full and accurate accounts and records
of --
15 (i) all proceeds received from sales of
vehicles under consignment agreements;
and
(ii) all payments made by the dealer of or
from those proceeds;
20 (b) before the end of the next business day after the
day on which proceeds of a sale are received or
a payment is made, record particulars of --
(i) the amount so received or paid; and
(ii) the person from whom it was received
25 or to whom it was paid;
(c) keep the accounts and records in such a manner
that they can be conveniently and properly
audited; and
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(d) correctly balance the accounts at the end of
each month.
Penalty: $5 000.
32I. Audit of trust account
5 (1) A dealer shall ensure that each trust account of the
dealer is audited by a person who is a registered
company auditor at least once in each period of
12 months commencing on the day on which the
account is opened.
10 Penalty: $5 000.
(2) In subsection (1) and in section 32J --
"registered company auditor" has the same meaning
as it has in the Corporations Act 2001 of the
Commonwealth.
15 32J. Special audit of trust account
(1) The Board may exercise the power in subsection (2) if
it is of the opinion that it is desirable to do so because
of the circumstances, or the alleged circumstances, of a
dealer's business.
20 (2) The Board may --
(a) at any time order that a special audit of a trust
account of a dealer shall be carried out by a
registered company auditor at the expense of
the dealer; and
25 (b) for that purpose --
(i) appoint the auditor; and
(ii) specify the information that is to be
furnished, and the time within which the
auditor is to report, to the Board.
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(3) Where an order is made under subsection (2) in respect
of a trust account of a dealer, the dealer shall do all
things that are necessary to be done on his part to
enable the audit to be completed.
5 Penalty: $5 000.
32K. Trust accounts may be frozen by District Court
(1) Where the Board, on an application made by it to the
District Court, shows by evidence on affidavit to the
satisfaction of the District Court that --
10 (a) there are reasonable grounds for believing that
there is a deficiency in a trust account of a
dealer; or
(b) there has been undue or unreasonable refusal,
neglect, or delay on the part of a dealer in
15 paying money which was required to be paid
into a trust account by the dealer under this
Division to a person who is entitled to that
money or is authorised to receive the money,
the District Court may, if it thinks fit, make an order
20 that the person for the time being in charge of the
financial institution in which the trust account is kept
be restrained, until the order is made absolute or
discharged, from paying out, transferring or otherwise
dealing with any moneys standing to the credit of the
25 trust account or any other account kept at the financial
institution in the name of the dealer.
(2) An order under subsection (1) may --
(a) contain such terms and conditions as the
District Court thinks fit; and
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(b) relate to all or any one or more of the trust or
other accounts, as the District Court
determines.
(3) The order shall be made in the first instance ex parte,
5 without any notice to the dealer, and is an order to
show cause only.
(4) Unless the agent referred to in the order shows to the
District Court within the time specified in the order
sufficient cause to the contrary, the order, after proof of
10 service as required by section 32O, shall be made
absolute.
32L. District Court may restrain use of trust accounts of
deceased dealer
(1) Where the District Court is satisfied, on the application
15 of the Board, that a licensed dealer has died, the
District Court may restrain the personal representative,
and the former employees, agents and bankers, of the
deceased dealer, and the employees and agents of those
bankers, from dealing in all or any of the trust accounts
20 of the deceased dealer, subject to such terms and
conditions as the District Court thinks fit.
(2) The District Court may order that the Board --
(a) take possession of the money constituting a
trust account of the deceased dealer or, where
25 the case requires, the balance of such moneys;
(b) credit the money or balance to a separate
account at the Treasury, forming part of the
Trust Fund constituted under section 9 of the
Financial Administration and Audit Act 1985,
30 in the name of the Board; and
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(c) deal with those moneys according to law.
(3) The District Court may, on the application of the
Board, or any person interested, give such directions as
the District Court thinks fit for the payment by the
5 Board of any part of the moneys credited to the
separate account under the order.
32M. Discharge or variation of orders under section 32K
or 32L
(1) A dealer or the personal representative of a deceased
10 dealer whose account is the subject of an order made
under section 32K or 32L may apply to the District
Court to discharge or vary the order and to award such
costs upon the application as it thinks fit.
(2) The District Court is by this section empowered to
15 discharge or vary the order and to make such further
orders as it thinks fit.
32N. Schemes for distribution of trust funds
(1) The District Court may, on the application of the
Board, the Treasurer, the dealer, or the personal
20 representative of a deceased dealer referred to in an
order made under section 32K, 32L or 32M make
further orders --
(a) discharging or varying any orders so made; and
(b) directing that any moneys in an account
25 affected by the order shall be paid to the
Treasurer by the financial institution on such
terms and conditions as the District Court
thinks fit.
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(2) The Treasurer, on receiving moneys paid pursuant to
an order made under subsection (1)(b) --
(a) shall cause the moneys to be credited to a
separate account to be kept at the Treasury as
5 part of the Trust Fund constituted under
section 9 of the Financial Administration and
Audit Act 1985;
(b) may prepare a scheme for distributing the
moneys as compensation to each person who --
10 (i) claims compensation at any time within
6 months after the Treasurer receives
the money; and
(ii) proves to the satisfaction of the
Treasurer that the person has, in respect
15 of any consignment of a vehicle,
sustained loss through any act or
omission of the dealer in respect of
whose accounts the order was made.
(3) When the Treasurer prepares a scheme for distribution
20 the Treasurer shall apply to the District Court for
approval of the scheme and for directions in respect of
the scheme.
(4) The District Court may give such directions as it thinks
fit in respect of --
25 (a) the separate account at the Treasury;
(b) the moneys standing to the credit of the
account;
(c) the persons to whom and in what amounts the
whole or any portion of the moneys standing to
30 the credit of the account shall be paid by the
Treasurer; and
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(d) the payment of the balance of the moneys then
standing to the credit of the account, if any.
32O. Order under section 32K, 32L or 32M to be served
and complied with
5 (1) Where an order is made under section 32K, 32L or 32N
on the application of the Board, the Board shall serve
or cause to be served a copy of the order --
(a) on the person for the time being in charge of
the office of the financial institution in which
10 any account referred to in the order is kept;
(b) on the dealer, or the personal representative of
the deceased dealer, in whose name the account
is kept; and
(c) where it is an order under section 32N(1)(b), on
15 the Treasurer.
(2) Where an order is made under section 32M or 32N on
the application of a dealer, or the personal
representative of a deceased dealer, the dealer or
personal representative shall serve or cause to be
20 served a copy of the order --
(a) on the person for the time being in charge of
the financial institution in which any account
referred to in the order is kept;
(b) on the Board; and
25 (c) where it is an order under section 32N(1)(b), on
the Treasurer.
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(3) Where an order is made under section 32N on the
application of the Treasurer, the Treasurer shall serve
or cause to be served a copy of the order --
(a) on the person for the time being in charge of
5 the office of the financial institution in which
any account referred to in the order is kept;
(b) on the dealer, or the personal representative of
the deceased dealer, in whose name the account
is kept; and
10 (c) on the Board.
(4) Every person on whom an order is served shall --
(a) comply with the order; and
(b) permit others affected by the order to comply
with the order.
15 Penalty: $5 000.
(5) Nothing in subsection (4) affects any other penalty or
liability a person may incur in failing to comply with
the order or in failing to permit others affected by the
order to comply with the order.
20 (6) This section is sufficient authority and indemnity for
complying with an order so made and served.
32P. Regulations relating to trust accounts
The regulations may make provision for or with
respect to --
25 (a) keeping and management of trust accounts
including --
(i) information to be given to the Board in
relation to trust accounts;
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(ii) reporting of overdrawn trust accounts;
(iii) the manner in which records are to be
kept and the information that is to be
included in the records;
5 (iv) the manner of accounting for moneys
received; and
(v) the making of statutory declarations in
relation to moneys held in trust;
(b) duties of financial institutions in relation to
10 trust accounts, including --
(i) the interest to be paid on the balance of
trust accounts; and
(ii) reporting of overdrawn trust accounts;
and
15 (c) auditing of trust accounts, including --
(i) the appointment of auditors;
(ii) the production of records and
information to auditors by dealers and
financial institutions;
20 (iii) the manner in which auditing is to be
conducted;
(iv) the information and matters to be
contained in the auditor's report;
(v) the obligations of auditors to the Board;
25 (vi) the costs of auditing;
(vii) when, and to whom, the auditor shall
report; and
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(viii) the confidentiality and examination of
audit information.
Division 3 -- Obligation to display particulars of vehicle
".
5 58. Heading inserted
After section 33 the following heading is inserted --
"
Division 4 -- Obligation to repair certain defects
".
10 59. Section 34 replaced by sections 34, 34A, 34B, 34C, 34D, 34E,
34F and 34G
Section 34 is repealed and the following sections are inserted
instead --
"
15 34. Obligation to repair
A dealer who sells a vehicle to which this Division
applies shall at his own expense repair or make good,
or cause to be repaired or made good, a defect for
which he is responsible under sections 34B, 34C and
20 34D so as to --
(a) make the vehicle roadworthy; and
(b) place the vehicle in a reasonable condition
having regard to its age.
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34A. Vehicles covered by obligation to repair
(1) This Division applies to a second-hand vehicle that --
(a) is sold by a dealer to a person who does not by
reason of the sale become a trade owner of the
5 vehicle;
(b) is sold (as mentioned in paragraph (a)) at a cash
price of or over --
(i) in the case of a motor cycle, $3 500 or
such other amount as is prescribed; or
10 (ii) in the case of any other vehicle, $4 000
or such other amount as is prescribed;
(c) on the day of the sale is within the limits
specified in subsection (2); and
(d) is not excluded from the operation of this
15 Division by an order under section 34G.
(2) The limits referred to in subsection (1)(c) are that --
(a) in the case of a motor cycle, it --
(i) is not more than 8 years old; and
(ii) has not been driven for more than
20 80 000 km;
and
(b) in the case of any other vehicle, it --
(i) is not more than 12 years old; and
(ii) has not been driven for more than
25 180 000 km.
(3) This Division does not apply to a vehicle that is sold by
a dealer to a person if the person was in possession of
the vehicle for a period of 3 months or more
immediately preceding the day of sale.
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34B. Defects for which dealer responsible
(1) The dealer is responsible under section 34 for any
defect that renders, or is likely to render, the vehicle
unroadworthy or unserviceable, but is not responsible
5 for a defect --
(a) that comes within section 35(2);
(b) arising from or incidental to any accidental
damage to the vehicle that occurred after the
sale;
10 (c) arising from misuse or negligence on the part of
a driver of the vehicle that occurred after the
sale; or
(d) occurring in the tyres, battery or any prescribed
accessory to the vehicle.
15 (2) Subsection (1) applies to a defect whether or not it
existed at the time of the sale.
34C. Period during which dealer responsible: vehicles
other than motor cycles
(1) In this section --
20 "category 1 vehicle" means a vehicle that on the day
of the sale --
(a) is not more than 10 years old; and
(b) has been driven for not more than
150 000 km;
25 "category 2 vehicle" means a vehicle that on the day
of the sale --
(a) is more than 10 years but not more than
12 years old; or
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(b) has been driven for more than 150 000 km
but not more than 180 000 km;
"vehicle" means a vehicle to which this Division
applies other than a motor cycle.
5 (2) In the case of a category 1 vehicle, the dealer is
responsible under section 34 for a defect that appears in
the vehicle before --
(a) the vehicle has been driven for 5 000 km after
the sale; or
10 (b) the expiry of the period of 3 months following
the day of the sale,
whichever happens first.
(3) In the case of a category 2 vehicle, the dealer is
responsible under section 34 for a defect that appears in
15 the vehicle before --
(a) the vehicle has been driven for 1 500 km after
the sale; or
(b) the expiry of the period of one month following
the day of the sale,
20 whichever happens first.
34D. Period during which dealer responsible: motor
cycles
The dealer is responsible under section 34 for a defect
that appears in a motor cycle to which this Division
25 applies before --
(a) the motor cycle has been driven for 5 000 km
after the sale; or
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(b) the expiry of the period of 3 months following
the day of the sale,
whichever happens first.
34E. Certain periods excluded from calculation
5 In determining the periods mentioned in
section 34C(2)(b) and (3)(b) and section 34D(b), no
account shall be taken of any period during which the
dealer is in possession of the vehicle for the purpose or
purported purpose of ascertaining or carrying out his
10 obligations under section 34.
34F. Age of vehicle
(1) For the purposes of sections 34A(2) and 34C(1) the age
of a vehicle shall be reckoned from the date of
manufacture of the vehicle as determined under this
15 section.
(2) The date of manufacture of a vehicle is to be taken to
be --
(a) the date of manufacture shown on the vehicle's
compliance plate;
20 (b) the "built date" shown on the vehicle; or
(c) if paragraph (a) or (b) does not apply --
(i) the date agreed in writing between the
dealer and the purchaser of the vehicle;
or
25 (ii) failing such agreement, the date fixed
by the Commissioner exercising the
jurisdiction conferred by section 36(d).
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(3) If for a vehicle only a month in a particular year is
shown in a way mentioned in subsection (2)(a) or (b)
the date of manufacture of the vehicle is to be taken to
be the first day of the next month.
5 (4) In subsection (2) --
" "built date" shown on the vehicle" means the date,
or the month in a particular year, that follows the
expression "built" or "built date" (or a similar
expression) on --
10 (a) a metal plate attached to the vehicle; or
(b) a metal component of the vehicle;
"compliance plate", in relation to a vehicle, means a
plate attached to the vehicle that indicates that the
vehicle complies with the standards required by
15 law for vehicles of that make, model and year of
manufacture.
34G. Exclusion of vehicles from this Division
The Minister may by order published in the Gazette
exclude a vehicle or any class or description of vehicles
20 from the operation of this Division, and may in the
same way revoke or amend an order so made.
".
60. Section 35 amended
Section 35(2) is amended by deleting "subsection (1) of
25 section 34 shall not apply to and in relation to that defect" and
inserting instead --
"
that defect is not one for which the dealer is
responsible under section 34
30 ".
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61. Heading inserted
After section 35, the following heading is inserted --
" Division 5 -- Disputes ".
62. Section 40 repealed
5 Section 40 is repealed.
63. Section 42A inserted
After section 42 the following section is inserted --
"
42A. Agreements for sale of vehicles by dealer
10 (1) This section applies only where a dealer sells a vehicle,
other than by auction, to a person who is not a dealer.
(2) A contract or agreement for the sale of a vehicle --
(a) shall be in writing signed by the dealer, or his
agent, and the purchaser; and
15 (b) shall contain the prescribed particulars, terms
and conditions.
(3) Subsection (2)(b) does not prevent a contract or
agreement containing, or incorporating by reference,
other terms and conditions so long as they are not
20 inconsistent with, and do not limit or diminish, those
that are prescribed.
(4) Without limiting section 43(7) of the Interpretation
Act 1984, particulars, terms and conditions that are
prescribed for contracts or agreements for the sale of
25 new vehicles may be different from those that are
prescribed for contracts or agreements for the sale of
second-hand vehicles.
page 74
Motor Vehicle Dealers Amendment Bill 2001
Amendments relating to dealings in vehicles Part 4
s. 64
(5) A dealer or his agent shall not enter into a contract or
agreement for the sale of a vehicle unless the contract
or agreement complies with subsection (2).
Penalty: $5 000.
5 ".
64. Section 56 amended
Section 56(2)(e) is amended by deleting "exempted from the
provisions of subsection (1) of section 34" and inserting
instead --
10 "
excluded from the operation of Division 3 of
Part III
".
page 75
Motor Vehicle Dealers Amendment Bill 2001
Part 5 Miscellaneous amendments
s. 65
Part 5 -- Miscellaneous amendments
65. Section 6 amended
Section 6(1) is amended by deleting "to 25, both inclusive" and
inserting instead --
5 " to 23A, 24 and 25 ".
66. Section 8 amended
Section 8(1)(b) is amended by deleting "Western Australian
Automobile Chamber of Commerce (Inc.)" and inserting
instead --
10 "
Motor Trade Association of Western Australia
Incorporated
".
67. Section 27 amended
15 Section 27(1a) is amended by deleting "and selling" and
inserting instead --
" or selling ".
68. Section 28 replaced by sections 28 and 28A
Section 28 is repealed and the following sections are inserted
20 instead --
"
28. Order to remedy defects in second-hand vehicle
(1) This section applies where --
(a) an inspecting officer is examining or testing a
25 second-hand vehicle under section 27; and
page 76
Motor Vehicle Dealers Amendment Bill 2001
Miscellaneous amendments Part 5
s. 68
(b) the officer is of the opinion that the vehicle or
its equipment is defective.
(2) The inspecting officer may make an order in the
approved form --
5 (a) specifying any defect in the vehicle or its
equipment; and
(b) requiring the owner of the vehicle, not later
than the day specified in the order, at the
owner's option, to either --
10 (i) remedy each defect so specified; or
(ii) return the number plates relating to the
vehicle to the nearest licensing or
registering authority in accordance with
section 28A.
15 (3) Where an order is made under subsection (2) in respect
of a vehicle, the inspecting officer shall attach to the
vehicle a notice in the approved form --
(a) stating that the order has been made; and
(b) informing the owner that the sale of the vehicle
20 is prohibited as provided by section 29(1).
(4) If the dealer is the owner of the vehicle, the order shall
be given to the dealer.
(5) If the dealer is in possession of the vehicle under a
consignment agreement --
25 (a) the dealer shall inform the inspecting officer of
the name and address of the consignor; and
(b) the inspecting officer shall give the order or
cause it to be given to the consignor.
page 77
Motor Vehicle Dealers Amendment Bill 2001
Part 5 Miscellaneous amendments
s. 68
(6) An order under subsection (2) and the corresponding
notice under subsection (3) may be amended so far as
is necessary to correct any error.
(7) The powers in subsections (5) and (6) may be exercised
5 by persons or classes of persons designated by the
Commissioner.
(8) An order under subsection (2) remains in force until the
conditions provided for by either of the following
paragraphs are met --
10 (a) the number plates are returned to the nearest
licensing or registering authority --
(i) as required by the order and the
provisions of section 28A; or
(ii) under section 29(3);
15 (b) the vehicle has been examined by an inspecting
officer and the officer --
(i) is satisfied that each defect specified in
the order has been remedied; and
(ii) cancels the order and removes the notice
20 attached to the vehicle under
subsection (3).
(9) An inspecting officer examining a vehicle as
mentioned in subsection (8)(b) may make a further
order under subsection (2) in respect of the vehicle if
25 he is of the opinion that the vehicle or its equipment is
defective.
(10) The owner of a vehicle in respect of which an order is
made under subsection (2) shall comply with the order.
Penalty: $2 000.
page 78
Motor Vehicle Dealers Amendment Bill 2001
Miscellaneous amendments Part 5
s. 68
(11) A person shall not wilfully remove, damage or
obliterate a notice attached to a vehicle under
subsection (3).
Penalty: $2 000.
5 (12) In this section --
"consignment agreement" has the same meaning as it
has in section 32A;
"defective", in relation to a vehicle, means that it
requires work to be done to it, or other attention, to
10 make it comply with any requirement of a written
law that applies to the vehicle or its equipment;
and "defect" has a corresponding meaning;
"inspecting officer" means a member of the Police
Force or an authorised officer;
15 "owner" means --
(a) the dealer at whose authorised premises the
vehicle is being examined or tested, if he is
the trade owner of the vehicle; or
(b) if the dealer is in possession of the vehicle
20 under a consignment agreement, the
consignor under that agreement.
28A. Return of number plates
(1) The owner of a vehicle who elects to return the number
plates relating to the vehicle as mentioned in
25 section 28(2)(b)(ii) shall send or deliver to the nearest
licensing or registering authority --
(a) the number plates; and
(b) a duly completed notice in the approved form.
page 79
Motor Vehicle Dealers Amendment Bill 2001
Part 5 Miscellaneous amendments
s. 69
(2) The owner of a vehicle, by taking the action specified
in subsection (1), surrenders any licence for the vehicle
issued under the Road Traffic Act 1974.
".
5 69. Section 29 amended
(1) Section 29(1) is amended by deleting the passage from and
including "of which the sale" to the end of the subsection and
inserting instead --
" in respect of which an order is in force under section 28. ".
10 (2) Section 29(2) is repealed and the following subsection is
inserted instead --
"
(2) A person shall not, by a representation that a
second-hand vehicle is being acquired for the purpose
15 of being broken up, induce another to sell the vehicle if
the sale would, but for that representation, be
prohibited by subsection (1).
".
page 80
Motor Vehicle Dealers Amendment Bill 2001
Consequential amendments Part 6
s. 70
Part 6 -- Consequential amendments
70. Chattel Securities Act 1987 amended
The Chattel Securities Act 1987* is amended in section 7(2) by
deleting the passage from "the security interest from" to the end
5 of the subsection and inserting instead --
"
the security interest from --
(a) a motor vehicle dealer licensed; or
(b) a car market operator registered,
10 under the Motor Vehicle Dealers Act 1973, the security
interest of the secured party is extinguished.
".
[*Act No. 101 of 1987.
For subsequent amendments see 2000 Index to Legislation of
15 Western Australia, Table 1, p. 56.]
71. Pawnbrokers and Second-hand Dealers Act 1994 amended
The Pawnbrokers and Second-hand Dealers Act 1994* is
amended by deleting section 4(1)(c) and inserting instead --
"
20 (c) a holder of an authorisation under the Motor
Vehicle Dealers Act 1973 who is acting in
accordance with the authorisation.
".
[*Act No. 88 of 1994.
25 For subsequent amendments see 2000 Index to Legislation of
Western Australia, Table 1, p. 326, and Act No 10 of 2001.]
page 81
Motor Vehicle Dealers Amendment Bill 2001
Part 6 Consequential amendments
s. 72
72. Road Traffic Act 1974 amended
The Road Traffic Act 1974* is amended in section 23A as
follows:
(a) by deleting "or" after paragraph (b);
5 (b) in paragraph (c) by deleting "Act." and inserting
instead --
" Act; or ";
(c) by inserting the following paragraph --
"
10 (d) the licence for the vehicle is surrendered in
accordance with section 28A of the Motor
Vehicle Dealers Act 1973.
".
[* Reprinted as at 19 October 2001.]
page 82
Motor Vehicle Dealers Amendment Bill 2001
Transitional provisions Part 7
s. 73
Part 7 --Transitional provisions
73. Definition
In this Part --
"the principal Act" means the Motor Vehicle Dealers
5 Act 1973.
74. Licence applications in progress
(1) If, before the commencement of section 6, 7 or 8 of this Act, an
application for the grant or renewal of a dealer's licence, yard
manager's licence or salesman's licence --
10 (a) has been made; but
(b) has not been determined,
the application is to be determined as if Part 2 of this Act had
not been enacted.
(2) If, before the commencement of section 10 of this Act, an
15 application --
(a) has been made by a person, by persons constituting a
firm or by a body corporate for the grant or renewal of a
car market operator's licence; but
(b) has not been determined,
20 the application is to be taken to be an application by the person,
persons or body corporate to be registered as a car market
operator under section 17B of the principal Act as in force after
the commencement of section 10.
75. Existing dealer's licence
25 (1) This section applies where a person, persons constituting a firm,
or a body corporate held a dealer's licence under the principal
page 83
Motor Vehicle Dealers Amendment Bill 2001
Part 7 Transitional provisions
s. 76
Act ("the existing licence") immediately before the
commencement of section 6 of this Act.
(2) The person, the persons constituting the firm, or the body
corporate is or are to be taken on that commencement to hold a
5 dealer's licence for each class or description of business
prescribed by regulations referred to in section 5A of the
principal Act.
(3) Subject to the principal Act, the licence referred to in
subsection (2) continues in force --
10 (a) until the expiry of the period stated in the existing
licence; and
(b) on the same terms and conditions as applied to that
licence.
76. Existing car market operator's licence
15 (1) This section applies where a person, persons constituting a firm,
or a body corporate held a car market operator's licence under
the principal Act immediately before the commencement of
section 10 of this Act.
(2) The person, the persons constituting the firm, or the body
20 corporate is or are to be taken on that commencement --
(a) to be registered as a car market operator under
section 17B of the principal Act; and
(b) subject to the principal Act, to be so registered until the
expiry of the period stated in the licence.
25 77. Premises covered by existing certificate of registration
(1) Where immediately before the commencement of section 16 of
this Act a certificate of registration is in force under section 21
of the principal Act in respect of premises at which a dealer
carries on business, the premises are to be taken after that
page 84
Motor Vehicle Dealers Amendment Bill 2001
Transitional provisions Part 7
s. 78
commencement to be authorised premises under the principal
Act in relation to that dealer.
(2) Where immediately before the commencement of section 17 of
this Act a certificate of registration is in force under section 21B
5 of the principal Act in respect of premises that are provided for
a car market by a car market operator, the premises are to be
taken after that commencement to be authorised premises under
the principal Act in relation to that car market operator.
78. Existing grounds for disciplinary action
10 The powers of the Board under section 20(1) of the principal
Act inserted by section 16 of this Act may be exercised in
relation to acts, omissions and conduct that occurred before or
after the commencement of section 16.
79. Time limit for prosecution of existing offences
15 Section 52(4) of the principal Act applies to an offence
committed before the commencement of subsection (2) of
section 51 of this Act as if that subsection had not been passed.
80. Application of Part III, Division 2
Division 2 inserted in Part III of the principal Act by section 57
20 of this Act does not apply to a consignment agreement (as
defined in section 32A of the principal Act) that was entered
into before the commencement of section 57.
81. Dealer's obligation to repair
(1) Sections 34 to 34G inserted in the principal Act by section 59 of
25 this Act do not apply to a second-hand vehicle that was sold
before the commencement of section 59.
(2) Section 34 of the principal Act repealed by section 59 of this
Act continues to apply, despite the repeal, to second-hand
page 85
Motor Vehicle Dealers Amendment Bill 2001
Part 7 Transitional provisions
s. 82
vehicles sold by a dealer before the commencement of
section 59.
82. Application of section 42A
Section 42A of the principal Act inserted by section 63 of this
5 Act does not apply to a contract or agreement for the sale of a
vehicle that was entered into before the commencement of
section 63.
83. Further transitional provision may be made
(1) The Governor may make regulations --
10 (a) amending or supplementing the transitional provisions
made by this Part; or
(b) making further transitional provisions,
for the purpose of providing an effective and efficient transition
from the principal Act as in force before the commencement of
15 any provision of this Act to the principal Act as amended by this
Act.
(2) Regulations under subsection (1) may have effect before the day
on which they are published in the Gazette.
(3) To the extent that a regulation under subsection (1) has effect
20 before the day of its publication in the Gazette, it does not --
(a) affect in a manner prejudicial to any person the rights of
that person existing before the day of its publication; or
(b) impose liabilities on any person in respect of anything
done or omitted to be done before the day of its
25 publication.
page 86
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