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1
Consumer Law (Miscellaneous Provisions)
CONSUMER LAW (MISCELLANEOUS
PROVISIONS) BILL 1994
EXPLANATORY NOTES
GENERAL OUTLINE
Objectives of the Legislation
The objectives of the legislation are to facilitate the joining of the
Queensland Motor Vehicles Securities Register with the New South Wales
(REVS) Register, to introduce into Queensland law the offence of odometer
tampering, to effect the repeal of certain Acts, to introduce some consumer
protection measures, and to effect some technical amendments to
legislation.
The proposed amendments covered in the Consumer Law
(Miscellaneous Provisions) Bill include:--
· A requirement that a motor dealer supply a purchaser of a used
motor vehicle with a certificate from the Motor Vehicles
Securities Register on the day that the sale is made;
· A requirement that a motor dealer ensures that title to a used
motor vehicle is passed to the purchaser;
· The creation of the offence of odometer tampering;
· The removal of the present requirement under the Auctioneers
and Agents Act 1971 for the Registrar to publish the list of
licensees under the Act;
· The repeal of the Mortgage Brokers Act 1987 and the Trade
Measurement (Bread) Act 1990.
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Consumer Law (Miscellaneous Provisions)
Reasons for the Bill
At present there is no national linkage between Australian motor vehicle
securities registries, which has resulted in losses of up to $10 million
annually because of cross border trading in encumbered vehicles. In 1991
the Special Premiers Conference acknowledged the problem and
recommended that a national motor vehicle securities register be established
as a matter of priority. Queensland has now indicated its intention to
participate in the national implementation. The amendments put forward in
this Bill, together with the amendments enacted in the Justice Legislation
(Miscellaneous Provisions) Act 1992, will facilitate Queensland's
participation in the national scheme.
The creation of the offence of odometer tampering and the introduction
of the requirement that a motor dealer selling a used vehicle supply the
purchaser with a security interest certificate from the Motor Vehicles
Securities Register, are positive steps in consumer protection in the State.
Estimated cost for government implementation
Additional costs will be incurred in the establishment of the link-up with
the New South Wales system. However, these costs will be offset by
significant increases in revenue.
Consultation
In relation to the proposal to link Queensland with the national database,
the following government departments/bodies were consulted:--
· Treasury
· Information Policy Board
· Office of the Cabinet
· Business Industry and Regional Development
· Participants in the Finance and Motor Dealing Industry
The amendments are supported by those parties consulted.
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Consumer Law (Miscellaneous Provisions)
NOTES ON PROVISIONS
Details of specific clauses are as follows.
PART 1--PRELIMINARY
Clause 1 states the short title of the Act.
Clause 2 provides for the commencement day of the Bill.
Clause 3 states that schedule 1 amends the Acts mentioned in it.
Clause 4 states that schedule 2 repeals the Acts mentioned in it.
PART 2--AMENDMENT OF THE AUCTIONEERS
AND AGENTS ACT 1971
Clause 5 states that the Auctioneers and Agents Act 1971 is amended in
this Part.
Clause 6 inserts the definition of "security interest certificate" into the
Auctioneers and Agents Act.
Clause 7 omits section 57 and replaces it with a new section 57. The
section provides that a motor dealer must ensure that the purchaser gains
clear title to the motor vehicle at the time of sale. It is a defence for the
motor dealer to prove that the dealer took all reasonable steps to ensure that
section 57(2) is complied with. The clause further provides that the motor
dealer is required to provide to the purchaser on the day of, and before the
sale, a security interest certificate issued on the day of the sale.
The dealer is required to give to the purchaser an approved form stating
particulars about the vehicle and stating that the dealer has ensured that the
purchaser will gain clear title to the vehicle at the time of sale. The dealer
must ask the purchaser to sign a form acknowledging the receipt of the
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Consumer Law (Miscellaneous Provisions)
security interest certificate and the approved form.
Clause 8 creates the offence of odometer tampering. The clause provides
that a person must not tamper with a motor vehicle's odometer with intent
to falsely represent that, at a particular time, the vehicle had not travelled
more than a specified distance.
The clause provides that the court, on finding a person guilty of an
offence under section 59A(1), may, on its own initiative, or on the
application of the person who has suffered loss, order the person who
committed the offence to provide compensation for loss arising from the
commission of the offence.
The clause further provides that evidence that a motor vehicle's odometer
was tampered with when the vehicle was in dealer's possession is evidence
that the dealer contravened section 59A(1). The clause further provides that
evidence that a motor vehicle's odometer reading shortly after a dealer had
possession of the vehicle was less than its reading when the dealer took
possession of the vehicle is evidence that the dealer contravened section
59A(1).
Clause 9 provides that where a person recovers from the Auctioneers
and Agents Fidelity Guarantee Fund an amount that is more than the person
is entitled to recover under section 99(2), including an amount the person
must notify the Auctioneers and Agents Committee of under section
99(2A), the amount to which the person is not entitled will be a debt
recoverable by civil action.
PART 3--AMENDMENT OF MOTOR VEHICLES
SECURITIES ACT 1986
Clause 10 provides that the Motor Vehicles Securities Act 1986 is
amended in this Part.
Clause 11.
Section 6(1) is amended by replacing the word "registrar" with "chief
executive".
Section 6(2)(c) will state that the register must state the date and time the
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Consumer Law (Miscellaneous Provisions)
interest is registered.
Section 6(3) provides that the time stated in the register must be
expressed as the relevant time in New South Wales.
Clause 12 omits sections 22-24.
Section 22 will allow the chief executive to issue security interest
certificates in the way the chief executive considers appropriate. The time of
issue of the certificate must be expressed as the relevant time in New South
Wales.
Section 23 redrafts section 23 of the present Act and provides for the
inspection of the register.
Section 24 is a redraft of section 24 of the present Act.
Clause 13 omits section 25.
Clause 14 amends section 38(2).
Schedule 1
CONSEQUENTIAL AND MINOR AMENDMENTS
AUCTIONEERS AND AGENTS ACT 1971
Clauses 1-5 redraft section 14A(3).
Clause 6 removes the requirement to Gazette licences under section 25.
Clause 7 renumbers section 25(5).
Clause 8 deletes the words "licence or" from section 28(6)(c).
Clause 9 omits section 41.
Clause 10 inserts "57" into section 98(1)(a).
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Consumer Law (Miscellaneous Provisions)
MOTOR VEHICLES SECURITIES ACT 1986
These amendments replace the word "registrar" with the words "chief
executive" in various sections. The amendments also allow the prescribing
of matters under the regulations and for other minor matters.
TRADE MEASUREMENT ACT 1990 AND TRADE
MEASUREMENT (ADMINISTRATION) ACT 1990
These amendments are consequential amendments resulting from the
repeal of the Trade Measurement (Bread) Act 1990.
Certain provisions in the Trade Measurement (Administration) Act 1990
are also updated.
Schedule 2
Repeals the Mortgage Brokers Act 1987 and the Trade Measurement
(Bread) Act 1990.
© The State of Queensland 1994