BILL 21
An Act to Amend the Tobacco Tax Act
Her Majesty, by and with the advice and consent of the Legislative Assembly of New Brunswick, enacts as follows:
1 Section 2 of the Tobacco Tax Act, chapter T-7 of the Revised Statutes, 1973, is amended
(a) in subsection (4.1) by striking out “terms and conditions established in accordance with the regulations” and substituting “terms and conditions established in accordance with the regulations, in addition to those that may be imposed under section 2.11”;
(b) in subsection (4.2) by striking out “terms and conditions established in accordance with the regulations” and substituting “terms and conditions established in accordance with the regulations, in addition to those that may be imposed under section 2.11”;
(c) by adding after subsection (4.4) the following:
2( 4.5) The Minister may revoke a retail vendor’s licence or a wholesale vendor’s licence that, in the opinion of the Minister, was issued in error or on the basis of incomplete, false, misleading or inaccurate information.
(d) in subsection (7) by striking out “and may” and substituting “and, in addition to the terms and conditions that may be imposed under section 2.11, may”.
2 The Act is amended by adding before section 2.2 the following:
Certain terms and conditions
2.11( 1) The Minister may at any time, if he or she considers it appropriate, impose on a wholesale vendor’s licence or a retail vendor’s licence terms and conditions respecting
(a) the installation of security devices and structures to protect tobacco inventories,
(b) the implementation of security measures to protect tobacco inventories,
(c) inventory control procedures for tobacco, and
(d) additional reporting requirements.
2.11( 2) If the Minister imposes terms and conditions on a licence under subsection (1), the licensee may submit a written request for review to the Commissioner within 14 days after being notified of the terms and conditions.
2.11( 3) Within 14 days after receipt of the request for review under subsection (2), the Commissioner shall review the decision of the Minister and shall confirm, vary or revoke that decision and the decision of the Commissioner is final and binding.
3 Section 2.2 of the Act is amended
(a) by adding before subsection (1) the following:
2.2( 0.1) The following definition applies in this section.
“authorized person” means (personne autorisée)
(a) an inspector,
(b) an inspector as defined in the Revenue Administration Act,
(c) a lawful delegate or subdelegate of an inspector referred to in paragraph (b);
(d) an auditor as defined in the Revenue Administration Act, and
(e) a person designated by the Minister under subsection 2.2(15).
(b) by adding after subsection (1.6) the following:
2.2( 1.7) Despite anything else in this Act, a person who holds both a retail vendor’s licence and a wholesale vendor’s licence and who purchases tobacco under the authority of the retail vendor’s licence shall not sell that tobacco in the Province other than to a consumer.
(c) by adding after subsection (4.1) the following:
2.2( 4.2) An authorized person may, in the course of conducting an audit, examination or inspection authorized by law, seize any tobacco if he or she believes on reasonable and probable grounds that the tobacco is in the possession of any person in violation of subsection (1), (1.2), (1.3) or (1.4).
(d) in subsection (5) by striking out “seized under the Provincial Offences Procedure Act” and substituting “seized under the Provincial Offences Procedure Act or subsection (4.2)”;
(e) by adding after subsection (7) the following:
2.2( 7.1) If a person is convicted of an offence in relation to tobacco seized under subsection (4.2), the tobacco, in addition to any other penalty prescribed by this Act, is forfeited to Her Majesty in right of the Province and the Minister may dispose of the tobacco as he or she sees fit.
(f) in subsection (8) in the portion preceding paragraph (a) by striking out “seized under the Provincial Offences Procedure Act” and substituting “seized under the Provincial Offences Procedure Act or subsection (4.2)”;
(g) in paragraph (9)(a) by striking out “seized under the Provincial Offences Procedure Act” and substituting “seized under the Provincial Offences Procedure Act or subsection (4.2)”;
(h) by adding after subsection (14) the following:
2.2( 14.1) For the purposes of subsection (15), “department” means a portion of the Public Service specified in Part I of the First Schedule of the Public Service Labour Relations Act.
(i) by repealing subsection (15) and substituting the following:
2.2( 15) The Minister may designate in writing an employee of any department for the purposes of this section.
4 The Act is amended by adding after section 7.1 the following:
Notice of bankruptcy or insolvency of retail vendor
7.2 A wholesale vendor shall without delay notify the Minister in writing if the wholesale vendor becomes aware that a retail vendor has become bankrupt or insolvent, has taken the benefit of an Act of the Legislature or an Act of the Parliament of Canada in force for bankrupt or insolvent debtors or has made any proposal, assignment for the benefit of creditors or arrangement with its creditors.
5 Section 11 of the Act is amended by adding after subsection (2) the following:
11( 3) A person who holds both a wholesale vendor’s licence and a retail vendor’s licence shall keep distinct and clearly separated records that allow for the identification of the licence under which each purchase and sale of tobacco is undertaken.
6 Section 21.9 of the Act is repealed and the following is substituted:
Amount of the administrative penalty
21.9( 1) Subject to subsection (2), the amount of an administrative penalty for a violation of or failure to comply with a provision listed in Column I of Schedule B is as follows:
(a) for a first violation of or failure to comply with the provision, a sum equal to the minimum administrative penalty listed beside it in Column II of Schedule B;
(b) for a second violation of or failure to comply with the same provision, a sum equal to twice the minimum administrative penalty listed beside it in Column II of Schedule B; and
(c) for a third or subsequent violation of or failure to comply with the same provision, a sum equal to the maximum administrative penalty listed beside it in Column II of Schedule B.
21.9( 2) A violation of or failure to comply with the same provision that occurs after a period of two years or more without a violation of or failure to comply with the provision, may, in the discretion of the Commissioner, be treated by the Commissioner as a first violation or failure to comply under paragraph (1)(a).
7 Subsection 22(1) of the Act is amended by adding after paragraph (j.1) the following:
(j.2) authorizing the Minister to determine whether evidence furnished in support of an application referred to in paragraph (j.1) is satisfactory;
8 Schedule A of the Act is amended
(a) by adding after
2.2(1.6) ............... | F |
the following:
2.2(1.7) ............... | F |
(b) by adding after
the following:
(c) by adding after
the following:
9 Schedule B of the Act is amended
(a) by adding after
2.2(1.5) ............... | $240-$10,200 |
the following:
2.2(1.7) ............... | $240-$10,200 |
7.2............... | $140-$1,100 |
(b) by adding after
11(2) ............... | $140-$1,100 |
the following:
11(3) ............... | $140-$1,100 |