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This is a Bill, not an Act. For current law, see the Acts databases.


MOTOR VEHICLE DEALERS AMENDMENT BILL 2001

                      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


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                          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.

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       (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


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                      (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.

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       (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



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                      (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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     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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             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.    ".

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                                                                              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

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     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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                                                                                   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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     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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                                                                                   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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     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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                                                                                      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 ".




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     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   ".




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                                                                                   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       ".




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     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


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                                                                         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.

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     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.




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                                                                            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   ".

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     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
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                                    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)




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                          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. ".



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                     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.   ".




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                           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
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                 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


     page 50
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           Amendments relating to offences and penalties     Part 3

                                                                    s. 52



                    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.



                                                                page 51
     Motor Vehicle Dealers Amendment Bill 2001
     Part 3         Amendments relating to offences and penalties

     s. 53



               (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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                                                                     s. 53



     (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 ".




                                                                    page 53
     Motor Vehicle Dealers Amendment Bill 2001
     Part 4         Amendments relating to dealings in vehicles

     s. 54



      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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                                                                       s. 57



                      (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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     s. 57



               (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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                                                                    s. 57



       (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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     s. 57



                              (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.

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           (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
                                                                            ".




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                         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


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            (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.



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                (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.



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      (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.



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                     (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).
                                                                                         ".




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                                                                         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.]




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     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.]




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                                            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


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                 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

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                                                                               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.




 


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