Definitions

1   In this regulation:

"Act" means the Motor Dealer Act;

"associate" means,

(a) in relation to a corporation, a director or officer of the corporation or a beneficial owner of shares of the corporation, and

(b) in relation to a partnership,

(i) an individual who is a partner of the partnership, and

(ii) if a corporation is a partner in the partnership, a director or officer of the corporation or a beneficial owner of shares of the corporation;

"business records" has the meaning given to it by section 10;

"code of conduct" means the code of conduct established under section 33 of the Motor Dealer Act Regulation;

"representative" means an individual employed or engaged by a wholesaler who

(a) solicits, negotiates or arranges for the disposition of a used motor vehicle to a motor dealer or wholesaler, or

(b) in any way participates in the soliciting, negotiating or arranging for the disposition of a used motor vehicle to a motor dealer or wholesaler;

"wholesaler licence" means a licence issued or renewed under section 5.

[am. B.C. Reg. 16/2019, Sch. 4, s. 1.]

Prohibition on acting without wholesaler licence

2   A person must not act as a wholesaler unless the person holds a valid wholesaler licence.

Wholesaler licence valid for specific business premises

3   (1) A wholesaler licence is only valid in respect of the business premises specified in the licence.

(2) For the purposes of subsection (1), separate storage facilities or motor vehicle repair facilities do not constitute separate business premises.

Application for wholesaler licence

4   (1) A person may apply for a wholesaler licence or to renew a wholesaler licence by submitting to the authority

(a) an application in a form and manner approved by the authority, and

(b) the applicable fee set by the authority.

(2) An initial application under subsection (1) must include the following information, records, declarations and authorizations:

(a) the usual name of the applicant and, if applicable, the applicant's associates and representatives, and any other name used by the applicant, associate or representative;

(b) contact information for the applicant and, if applicable, the applicant's associates and representatives, including a mailing address, residential address and telephone number and, if any, electronic mail address;

(c) the name in which the applicant will carry on business as a wholesaler and the address at which the applicant will maintain business premises;

(d) if the applicant is an individual, proof of the applicant's age, citizenship and, if relevant, authority to work in Canada;

(e) if the applicant is a corporation or partnership, proof of the applicant's authority to carry on business in British Columbia;

(f) a copy of the applicant's business plan;

(g) the wholesaler licence number, if any, of any representative of the applicant;

(h) a copy of any business licence issued to the applicant by the local government or other body, in or outside British Columbia, with jurisdiction over the area in which the applicant's business premises are located;

(i) if the applicant is a corporation, the total number of issued shares of the corporation and the number of shares held by each beneficial owner of shares;

(j) declarations of the applicant and, if applicable, the applicant's associates and representatives, respecting the applicant's, associate's or representative's

(i) past conduct in the motor vehicle industry in this or any other jurisdiction, including previous dealings, if any, with the authority,

(ii) past conduct in another regulated industry in this or any other jurisdiction,

(iii) convictions, if any, for an offence under an enactment of this or any other jurisdiction in relation to consumer protection, tax, the motor vehicle industry or another regulated industry, and

(iv) convictions, if any, for a crime outside Canada;

(k) declarations of the applicant and, if applicable, the applicant's associates, respecting the applicant's or associate's involvement in bankruptcy proceedings;

(l) authorizations necessary for the authority to

(i) obtain a criminal record check for the applicant and, if applicable, the applicant's associates and representatives,

(ii) obtain a credit report for the applicant and, if applicable, the applicant's associates,

(iii) inspect the business premises in British Columbia, if any, at which the applicant will carry on business as a wholesaler, and

(iv) verify any other information provided in the application.

(3) An application to renew a wholesaler licence under subsection (1) must include

(a) a statement confirming that the information, the records and the facts described in a declaration or authorization, provided under subsection (2) at the time of the initial application for a licence, or under this subsection at the time of the last licence renewal, continue to be accurate, or

(b) if there has been any change in the information, the records or the facts referred to in paragraph (a), a statement setting out the change and, as applicable, an updated record, declaration or authorization described in subsection (2).

(4) An application to renew a wholesaler licence must be made at least 14 days before the wholesaler licence expires.

(5) An application under subsection (1) must include a declaration, in the form provided by the registrar, that the applicant has read and understood the code of conduct.

[am. B.C. Reg. 16/2019, Sch. 4, s. 2.]

Issue or renewal of wholesaler licence for a term

5   On application in accordance with section 4, the authority may issue or renew a wholesaler licence for a term not exceeding one year.

Refusal to issue or renew wholesaler licence

6   (1) The authority may refuse to issue or renew a wholesaler licence if the authority considers that it would not be in the public interest for the applicant to be licensed, having regard to

(a) the financial responsibility of the applicant and, if applicable, the applicant's associates, or

(b) the conduct of the applicant and, if applicable, the applicant's associates and representatives.

(2) The authority may not refuse to issue or renew a wholesaler licence under subsection (1) unless the authority gives the applicant

(a) notice in accordance with section 12 and an opportunity to be heard, and

(b) written reasons for its decision.

[am. B.C. Reg. 16/2019, Sch. 4, s. 3.]

Conditions on wholesaler licence

7   (1) On issuing or renewing a wholesaler licence, the authority may impose on the licence one or more of the following conditions relating to obligations of the licensee:

(a) the licensee must, within 14 days after the change, notify the authority, in writing, of any change in the information provided in the licensee's application for a wholesaler licence;

(b) the licensee must, within 14 days after the circumstance occurs, notify the authority, in writing, if

(i) the licensee is issued a garage vehicle certificate of insurance under the Insurance (Vehicle) Act, or

(ii) a garage vehicle certificate of insurance issued to the licensee expires or is cancelled;

(c) the licensee must, if the licensee ceases to act as a wholesaler, immediately notify the authority in writing and surrender the licensee's wholesaler licence to the authority;

(d) the licensee and, if applicable, the licensee's associates and representatives must, on request, provide the authority with the authorization necessary for the authority to obtain a criminal record check for the licensee, associate or representative, as the case may be;

(e) the licensee must establish, maintain and occupy business premises

(i) that are located at the address identified in the licensee's wholesaler licence,

(ii) that are, in the opinion of the authority, sufficient for carrying on business as a wholesaler, and

(iii) that are separate and distinct from premises or part of premises occupied as a residence;

(f) the licensee must display, at or near the front entrance to the licensee's business premises, any decal issued to the licensee by the authority indicating that the licensee is licensed to act as a wholesaler;

(g) the licensee must provide security within the time, in the form and in the amount required by the authority;

(h) the licensee and, if applicable, the licensee's representatives and designated associates must complete, to the authority's satisfaction, educational courses specified by the authority;

(i) the licensee must keep and maintain, at its business premises, business records for a period of at least 2 years after the last dealing or transaction to which the business record relates;

(j) the licensee must, if the authority receives a complaint respecting the licensee, provide the authority with the information and records the authority requires to investigate the complaint if the authority

(i) requests the information and records in writing, and

(ii) indicates in the request the nature of the complaint;

(k) the licensee must, at a reasonable time during normal business hours, on request of the authority, permit an individual authorized in writing by the authority to

(i) enter and inspect the licensee's business premises in British Columbia,

(ii) inspect all motor vehicles kept or stored in or on the licensee's business premises if any of the motor vehicles in or on the premises are owned, possessed or controlled by the licensee for the licensee's wholesaler business, and

(iii) inspect the licensee's business records;

(l) the licensee must, in a written representation respecting the disposition or proposed disposition of a used motor vehicle that is not suitable for transportation, include a statement to that effect;

(m) the licensee must, in a written representation respecting the disposition or proposed disposition of a used motor vehicle in respect of which the licensee exchanges or repairs the odometer or a part of the motor vehicle that is directly related to the odometer, record the reading on the motor vehicle's odometer taken before and after the exchange or repair;

(m.1) the licensee must, on request, provide the authority with a declaration, in the form provided by the registrar, that the licensee has read and understood the code of conduct;

(n) any other condition necessary for the authority to ensure that it is not contrary to the public interest for the licensee to be licensed as a wholesaler.

(2) Without limiting subsection (1), on issuing or renewing a wholesaler licence, the authority may impose on the licence one or more of the following conditions relating to prohibitions on the licensee:

(a) the licensee must not dispose of a used motor vehicle by consignment;

(b) the licensee must not dispose of a used motor vehicle to a person unless the person is

(i) a registered motor dealer or a wholesaler licensed under this regulation, or

(ii) located in a jurisdiction other than British Columbia and not precluded by the laws of the other jurisdiction from acting as a motor dealer or wholesaler in that jurisdiction;

(c) the licensee must not dispose of a used motor vehicle to a person unless the licensee and the person have signed a written agreement of purchase and sale that conforms to section 9 and the licensee has given a copy of the signed agreement to the person;

(d) the licensee must not permit a representative specified in the licensee's wholesaler licence to

(i) receive or otherwise handle a purchaser's money,

(ii) hold a management position in a wholesaler business, or

(iii) act in a wholesaler business without supervision;

(e) the licensee must not employ or engage a representative unless the representative has completed, to the authority's satisfaction, educational courses specified by the authority;

(f) any other condition necessary for the authority to ensure that it is not contrary to the public interest for the licensee to be licensed as a wholesaler.

(3) The authority may, on written notice to a licensed wholesaler, do either of the following:

(a) remove a condition imposed on the licensee's wholesaler licence under subsection (1) or (2);

(b) impose on the licensee's wholesaler licence a condition described in subsection (1) or (2).

[am. B.C. Reg. 16/2019, Sch. 4, s. 4.]

Display of wholesaler licence

8   A licensee must display, in a conspicuous place at the licensee's business premises, the original copy of the licensee's wholesaler licence.

Wholesaler agreement of purchase and sale

9   For the purposes of section 7 (2) (c), an agreement of purchase and sale between a licensed wholesaler and the person acquiring the used motor vehicle conforms to this section if the agreement includes all of the following:

(a) the name, contact information and wholesaler licence number of the licensee who disposed of the motor vehicle;

(b) if the person acquiring the motor vehicle is located in a jurisdiction other than British Columbia, the registration number, licence number or other evidence, if any, of the person's authority to act as a motor dealer or wholesaler in the other jurisdiction;

(c) the information described in section 21 (1) (a) to (l) and (2) (a) to (d) of the Motor Dealer Act Regulation and, for that purpose, a reference to a motor dealer must be read as a reference to a wholesaler;

(d) if the motor vehicle is not suitable for transportation, a statement that the motor vehicle is sold for parts only or purposes other than transportation;

(e) the disclosures described in section 23 of the Motor Dealer Act Regulation, stated to the best of the licensee's knowledge and belief;

(f) the reading on the motor vehicle's odometer taken before and after the licensee's exchange or repair, if any, of that motor vehicle's odometer or a part of that motor vehicle that is directly related to the odometer.

Wholesaler business records

10   For the purposes of section 7 (1) (i) and (k), the following are business records of a licensed wholesaler:

(a) a record of each person who has acquired a used motor vehicle from the licensee;

(b) for each person referred to in paragraph (a), a copy of the written agreement of purchase and sale referred to in section 7 (2) (c);

(c) a record of the number of used motor vehicles acquired or disposed of by the licensee;

(d) for each used motor vehicle acquired or disposed of by the licensee, the following records, as applicable:

(i) a record of material reconditioning or other substantial work performed on the motor vehicle by the licensee, including the date, particulars and cost of substantial work done and the supporting repair orders;

(ii) the details of any inspection conducted;

(iii) a record relating to the import or export of the motor vehicle;

(iv) a record of the reading on the motor vehicle's odometer taken before and after the exchange or repair of that motor vehicle's odometer or a part of that motor vehicle that is directly related to the odometer;

(e) a record of all dealings or transactions involving the acquisition or disposition of a used motor vehicle by the licensee, including the correspondence, notes and other records of the licensee;

(f) financial records related to the wholesaler business.

Revocation or suspension of wholesaler licence

11   (1) The authority may revoke a wholesaler licence if the licensee notifies the authority that the licensee has ceased to act as a wholesaler.

(2) The authority may revoke or suspend a wholesaler licence if the authority considers that it would not be in the public interest for the licensee to continue to be licensed, having regard to

(a) the financial responsibility of the licensee and, if applicable, the licensee's associates, or

(b) the conduct of the licensee and, if applicable, the licensee's associates and representatives.

(3) The authority may not revoke or suspend a wholesaler licence under subsection (2) unless the authority gives the licensee

(a) notice in accordance with section 12 and an opportunity to be heard, and

(b) written reasons for its decision.

(4) In the case of a suspension, the written reasons must specify the period of suspension, which may end on a fixed date or the date the licensee meets all of the conditions specified in the written reasons.

(5) For the purposes of subsection (4), the written reasons may specify one or more of the following conditions:

(a) the licensee must comply with a specified condition on the licence;

(b) the licensee must pay a specified administrative penalty imposed under section 26.04 of the Act.

[am. B.C. Reg. 16/2019, Sch. 4, s. 5.]

Notice of hearing

12   A notice referred to in section 6 (2) (a) or 11 (3) (a) must advise the applicant or licensee, as the case may be, that the applicant or licensee has the right to be heard in writing, electronically or orally or by any combination of written, electronic or oral hearings, as determined by the authority.