BILL 36 An Act to Amend the Tobacco Tax Act

BILL 36

 

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 1 of the Tobacco Tax Act, chapter T-7 of the Revised Statutes, 1973, is amended by adding the following definition in alphabetical order:

 

"collector" means a person authorized by the Minister under section 7 to collect the tax;

 

2 Subsection 2(3.1) of the Act is repealed.

3 Section 2.1 of the Act is repealed.

4 Section 2.2 of the Act is amended

(a) by repealing subsection (1) and substituting the following:

2.2(1) Subject to subsections (1.01) and (1.02), no person shall have in his or her possession tobacco, unless

(a) it is marked in accordance with the regulations or the circumstances exist in accordance with the regulations, and

(b) the tax has been paid in accordance with section 3 or 4.

(b) by adding after subsection (1) the following:

2.2(1.01) Subsection (1) does not apply to a collector.

2.2(1.02) Subsection (1) does not apply in respect of tobacco imported into Canada on which no duties as defined in subsection 2(1) of the Customs Act (Canada) are payable under the Customs Act (Canada).

 

(c) by adding after subsection (1.3) the following:

2.2(1.4) No person shall consign tobacco for resale or for sale at a retail sale, unless the tax has been paid in accordance with section 3 or 4.

 

2.2(1.5) No person shall sell more than one thousand cigarettes or more than one thousand grams of tobacco to the same purchaser within a twenty-four hour period.

2.2(1.6) Except as provided in the regulations, no person shall have in his or her possession more than one thousand cigarettes or more than one thousand grams of tobacco at any one time, unless the person is a wholesale vendor duly licensed under this Act or a retail vendor duly licensed under this Act.

 

(d) in subsection (4.1) by striking out "subsection (1), (1.2) or (1.3)" and substituting "subsection (1), (1.2), (1.3) or (1.4)";

 

(e) in subsection (6) by striking out "subsection (1), (1.2) or (1.3)" and substituting "subsection (1), (1.2), (1.3) or (1.4)".

5 Section 7 of the Act is repealed and the following is substituted:

7 The Minister may, in his or her discretion, authorize persons in accordance with the regulations to collect the tax.

6 Section 18 of the Act is amended

(a) in subsection (1) by striking out "subsection 2.2(1), (1.2) or (1.3)" and substituting "subsection 2.2(1), (1.2), (1.3), (1.4), (1.5) or (1.6)";

(b) in subsection (1.1) by striking out "subsection 2.2(1)" and substituting "subsection 2.2(1), (1.4), (1.5) or (1.6)";

(c) in subsection (2) by striking out "subsection 2.2(1), (1.2) or (1.3)" and substituting "subsection 2.2(1), (1.2), (1.3) or (1.4)".

 

7 Subsection 22(1) of the Act is amended

(a) by repealing paragraph (f) and substituting the following:

(f) respecting the forms to be used for the purposes of this Act and the regulations;

(b) by adding after paragraph (f) the following:

(f.01) for the purposes of paragraph 2.2(1)(a), respecting the circumstances in which a person may have in his or her possession tobacco that is not marked in accordance with the regulations;

(f.02) for the purposes of subsection 2.2(1.6), respecting the circumstances in which a person who is not a wholesale vendor duly licensed under this Act or a retail vendor duly licensed under this Act may have in his or her possession more than one thousand cigarettes or more than one thousand grams of tobacco at any one time;

 

 

(c) in paragraph (f.1) by striking out "subsection 2.2(1), (1.2) or (1.3)" and substituting "subsection 2.2(1.2) or (1.3)";

(d) by adding after paragraph (h.1) the following:

(h.2) respecting the application for an authorization to collect the tax under section 7, including the qualifications of applicants and the requirements to be met by applicants;

 

(h.3) respecting the grounds on which the Minister may refuse to make an authorization under section 7;

(h.4) respecting the suspension, cancellation and reinstatement of an authorization under section 7, including authorizing the Minister to suspend, cancel or reinstate an authorization, the grounds on which an authorization may be suspended, cancelled or reinstated, the grounds on which the Minister may refuse to reinstate an authorization, and the period of time during which an authorization may be suspended;

 

(h.5) authorizing the Minister to impose terms and conditions on an authorization made under section 7 or on the suspension or reinstatement of an authorization;

(h.6) respecting the expiry date of an authorization under section 7;

(h.7) requiring collectors to enter into agreements with the Minister and respecting the terms and conditions of such agreements;

8 Schedule A of the Act is amended

(a) by striking out

2(3.1) C

(b) by striking out

2.1 B

(c) by adding after

2.2(1.3) F

the following:

2.2(1.4) F

2.2(1.5) F

2.2(1.6) F

9 This Act or any provision of it comes into force on a day or days to be fixed by proclamation.

EXPLANATORY NOTES

Section 1

A definition is added. The amendment is consequential on the amendment made in section 5 of this amending Act.

 

Section 2

The existing provision is as follows:

2(3.1) No wholesale vendor shall ship tobacco outside the Province for sale, or deliver tobacco to any person for shipment outside the Province for sale, unless he has given notice in writing of his intention to do so to the Minister not later than ten days before the day the shipment is to leave the Province.

 

Section 3

The existing provision is as follows:

2.1 Every retail vendor shall display on each cigarette vending machine operated by or for him his name, address and telephone number and the number of his retail vendor’s licence.

 

Section 4

(a) The existing provision is as follows:

2.2(1) Except as provided in the regulations, no person shall have in his possession tobacco unless

(a) it is marked in accordance with the regulations, or

 

(b) the tax has been paid in accordance with section 3 or 4 or no duties as defined in subsection 2(1) of the Customs Act (Canada) respecting tobacco imported into Canada are payable under the Customs Act (Canada).

 

(b) Application provision.

(c) Provisions are added respecting the sale of tobacco on consignment, and the sale and possession of more than one thousand cigarettes or more than one thousand grams of tobacco.

(d) The existing provision is as follows:

2.2(4.1) A peace officer may, in the course of conducting a lawful search in respect of an offence under this Act or the regulations, seize and remove any vehicle in which he finds tobacco if he believes on reasonable and probable grounds that the tobacco in the vehicle is in the possession of any person in violation of subsection (1), (1.2) or (1.3).

 

(e) The existing provision is as follows:

2.2(6) Subject to subsection (8), where a vehicle has been seized under subsection (4.1) the person seizing the vehicle shall retain the vehicle until a person has been charged with an offence under subsection (1), (1.2) or (1.3) and the proceedings have been concluded.

Section 5

The existing provision is as follows:

7 Subject to section 4.1, the tax shall be collected by such persons as are prescribed by regulation.

Section 6

The existing provision is as follows:

18(1) A person who violates subsection 2.2(1), (1.2) or (1.3) commits an offence.

18(1.1) Notwithstanding subsection 56(6) of the Provincial Offences Procedure Act, the minimum fine that may be imposed by a judge under that Act in respect of a violation of subsection 2.2(1) shall be five hundred dollars and the Provincial Offences Procedure Act shall apply to such a violation with the necessary modifications in all other respects.

 

18(2) A judge who imposes a fine under Part II of the Provincial Offences Procedure Act and, if applicable, under subsection (1.1), on a person who is convicted of a violation of subsection 2.2(1), (1.2) or (1.3) shall impose an additional fine on the person equal in amount to three times the tax that would be payable on the tobacco in respect of which the offence was committed.

Section 7

(a) The existing provision is as follows:

22(1) For the purpose of carrying into effect the provisions of this Act according to their true intent or of supplying any deficiency therein the Lieutenant-Governor in Council may make such regulations, not inconsistent with the spirit of this Act, as are considered necessary or advisable, and without limiting the generality of the foregoing the Lieutenant-Governor in Council may make regulations:…..

(f) prescribing the forms to be used for the purposes of this Act and of the regulations;

(b) Regulation-making authority is added. The amendment is consequential on the amendments made in paragraphs 4(a) and (c) of this amending Act.

(c) The amendment is consequential on the amendment made in paragraph 4(a) of this amending Act. The existing provision is as follows:

22(1) For the purpose of carrying into effect the provisions of this Act according to their true intent or of supplying any deficiency therein the Lieutenant-Governor in Council may make such regulations, not inconsistent with the spirit of this Act, as are considered necessary or advisable, and without limiting the generality of the foregoing the Lieutenant-Governor in Council may make regulations:…..

(f.1) respecting the circumstances in which a person, consumer or retail vendor may have tobacco in their possession for the purposes of subsection 2.2(1), (1.2) or (1.3);

 

(d) Regulation-making authority is added. The amendment is consequential on the amendment made in section 5 of this amending Act.

Section 8

(a) The amendment is consequential on the amendment made in section 2 of this amending Act.

(b) The amendment is consequential on the amendment made in section 3 of this amending Act.

(c) Offences are created for the provisions added by paragraph 4(c) of this amending Act.

Section 9

Commencement provision.

 

Chapter Outline Update

Section 1

Add the following in alphabetical order to section 1:

collector — percepteur

Section 2

No change required.

Section 3

Strike out the entry for s.2.1 and substitute the following:

 

Repealed 2.1

Section 4

(a) No change required.

(b) Add after the entry for s.2.2(1.1) the following:

Application of subsection 2.2(1) 2.2(1.01), (1.02)

(c) 1.Strike out the entry for s.2.2(1), (1.2), (1.3) and substitute the following:

Prohibition respecting possession 2.2(1), (1.2),(1.3), (1.6)

2.Add after the entry for s.2.2(1.1) the following:

 

Prohibition respecting consignment 2.2(1.4)

Prohibition respecting sale 2.2(1.5)

(d) Strike out the entry for s.2.2(5) - (9), (11) - (17) and substitute the following:

Search and seizure 2.2(4.1)-(9), (11)-(17)

(e) No change required.

Sections 5 to 9

No change required.

 

Endorse: Hon. Edmond P. Blanchard, Q.C.