Copyright and Disclaimer Print  


NEW HOME BUYER PROTECTION AMENDMENT ACT, 2017

Bill 12

NEW HOME BUYER PROTECTION
AMENDMENT ACT, 2017

Chapter 10

(Assented to June 7, 2017)

HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Alberta, enacts as follows:

Amends SA 2012 cN‑3.2

1   The New Home Buyer Protection Act is amended by this Act.

 

2   Section 1 is amended

                            (a)    in subsection (1)


                                  (i)    by repealing clause (d) and substituting the following:

                                       (d)    “administrative penalty”, except where used in section 4.5(1)(g) in reference to a prescribed Act, means an administrative penalty imposed under section 15;

                                 (ii)    by adding the following after clause (o):

                                   (o.1)    “licence” means a licence issued under Part 1.1;

                                (iii)    by repealing clause (u) and substituting the following:

                                       (u)    “owner builder” means an individual who builds or intends to build a new home for personal use or a person prescribed as an owner builder to which this Act applies;

                           (b)    in subsection (3) by striking out “before the coming into force of this subsection” and substituting “before August 1, 2014”.

 

3   Section 1.1(6) is amended by striking out “after the coming into force of this section” and substituting “on or after August 1, 2014”.

 

4   Section 2 is amended by striking out “after this section comes into force” and substituting “on or after February 1, 2014”.

 

5   The following is added after section 2:

Requirement for licence or authorization

2.1(1)  No residential builder shall build a new home except in accordance with a valid licence issued under Part 1.1.

(2)  No owner builder shall build a new home except in accordance with a valid authorization issued under Part 2.

 

6   Section 3(1) is repealed and the following is substituted:

Home warranty requirements

3(1)  No person shall build a new home unless

                                 (a)    the new home

                                        (i)    is registered with the Registrar, and

                                      (ii)    is covered by a home warranty insurance contract that complies with subsection (6),

                                      and

                                 (b)    the person has been offered the option to purchase the additional coverage referred to in subsection (7)(a) and (b).

(1.1)  Despite subsection (1)(a)(ii) but subject to any regulations under section 28(1)(h.2), the Registrar may issue, on any terms and conditions the Registrar considers appropriate, an authorization that authorizes the owner builder to build the new home without having a home warranty insurance contract.

 

7   Section 3.1 is amended

                            (a)    in subsection (2) by striking out “section 3(1)(a) and (2)” and substituting “section 3(1)(a)(ii) and (b) and (2)”;

                           (b)    in subsection (10) by striking out “after the coming into force of this section” and substituting “on or after August 1, 2014”.

 

8   The following is added after section 4:

Part 1.1
Licensing

Licensing

4.1(1)  The Registrar may, on application, issue a licence to a residential builder if

                                 (a)    the Registrar is satisfied that the residential builder meets the prescribed qualifications and conditions for licensing,

                                 (b)    where the residential builder is a corporation, the Registrar is satisfied that no individual about whom disclosure is required under subsection (3) would be refused a licence if the individual were an applicant, and

                                 (c)    the residential builder pays the required licence fee.

(2)  The Registrar may

                                 (a)    require an applicant to take, or where the applicant is a corporation, to require any of its directors, officers or employees to take, courses and examinations for the purposes of ensuring that the applicant or the applicant’s directors, officers and employees meet the qualifications and conditions referred to in subsection (1)(a), and

                                 (b)    set and administer courses and examinations for the purposes of clause (a).

(3)  Where a residential builder applying for a licence or the renewal of a licence is a corporation, the residential builder must file a statement with the Registrar disclosing to the satisfaction of the Registrar the identity of all directors and officers of the corporation.

(4)  If, after a statement is filed under subsection (3), there is any change in the information required to be disclosed, an updated statement must be filed with the Registrar forthwith.

(5)  A licence is not transferable.

Renewal of licence

4.2(1)  A residential builder who holds a licence under this Part may, within the time prescribed, apply to the Registrar to have the licence renewed.

(2)  The Registrar may renew the licence, with or without conditions and restrictions, if

                                 (a)    the Registrar is satisfied that the residential builder continues to meet the applicable requirements of section 4.1, and

                                 (b)    the residential builder pays the required renewal fee.

Conditions

4.3   Subject to the regulations, the Registrar may at any time impose conditions and restrictions on a licence issued or renewed under this Part.

Expiry of licence

4.4   Subject to section 4.5, a licence expires one year after the day it was issued or last renewed or, if an earlier expiry date is specified on the licence by the Registrar, on the specified date.

Suspension or cancellation of licence

4.5(1)  The Registrar may refuse to issue or renew or may at any time suspend or cancel, as the Registrar considers appropriate, the licence of a residential builder

                                 (a)    for any reason that would render the residential builder ineligible for a licence under section 4.1 if the residential builder were applying for a licence under that section,

                                 (b)    if the residential builder has made a false statement about a material matter in the application for the licence or renewal or refuses to provide information about a material matter when requested to do so by the Registrar,

                                 (c)    if the residential builder is convicted of an offence under this Act or a prescribed offence under another Act,

                                 (d)    if the residential builder has breached a condition of the licence or a restriction on the licence,

                                 (e)    if the Registrar considers that the application for the licence or renewal is not or was not made in good faith,

                                 (f)    if the residential builder has failed to comply with a compliance order or a prescribed order or direction under another Act,

                                 (g)    if the residential builder has failed to pay an administrative penalty under this Act or a prescribed Act,

                                 (h)    if the licence was issued in error, or

                                  (i)    in any other circumstances in which the Registrar considers the refusal, suspension or cancellation appropriate to avoid or reduce a risk to the public or any person.

(2)  Subject to the regulations, the Registrar may reinstate a licence that has been suspended or cancelled if the Registrar is satisfied that it is appropriate to do so and that the issues that resulted in the suspension or cancellation have been addressed.

Notice of decision and surrender of licence

4.6(1)  If the Registrar refuses to issue or renew a licence or suspends, cancels or imposes conditions or restrictions on a licence, the Registrar shall serve the residential builder with notice of the decision.

(2)  The notice must

                                 (a)    include written reasons for the Registrar’s decision, and

                                 (b)    advise the residential builder of the right under section 17 to appeal the Registrar’s decision to the Board.

(3)  Where the Registrar suspends, cancels or refuses to renew the licence of a residential builder, the residential builder must forthwith surrender the licence to the Registrar.

Holding out

4.7   A person who does not hold a valid licence under this Part shall not represent or hold out, expressly or by implication, that the person is licensed under this Part.

 

9   Section 5 is amended

                            (a)    in subsection (1)

                                  (i)    by striking out “shall issue” and substituting “may, on application, issue”;

                                 (ii)    by striking out “an individual who intends to build a new home for personal use if the individual” and substituting “an owner builder if the owner builder”;

                           (b)    by repealing subsection (3).

 

10   Section 6 is repealed and the following is substituted:

Refusal, suspension or cancellation of authorization

6   The Registrar may refuse to issue an authorization to an owner builder or may at any time suspend or cancel, as the Registrar considers appropriate, an owner builder’s authorization

                                 (a)    if the owner builder does not meet the prescribed criteria referred to in section 5(1)(b) or does not pay the required fees, if any, under section 5(1)(c),

                                 (b)    if the owner builder has made a false statement about a material matter in the application for an authorization or refuses to provide information about a material matter when requested to do so by the Registrar,

                                 (c)    if the owner builder is convicted of an offence under this Act,

                                 (d)    if the owner builder has breached a condition of the authorization or a restriction on the authorization,

                                 (e)    if the Registrar considers that the application for the authorization is not or was not made in good faith,

                                 (f)    if the owner builder has failed to comply with a compliance order,

                                 (g)    if the owner builder has failed to pay an administrative penalty, or

                                 (h)    if the authorization was issued in error.

 

11   Section 7(2) is repealed and the following is substituted:

(2)  If the Registrar suspends or cancels an authorization held by an owner builder to whom a building permit has been issued under the Safety Codes Act, the Registrar shall notify the permit issuer.

 

12   Section 9(1)(a) is repealed and the following is substituted:

                                 (a)    licences applied for, issued, renewed, suspended, cancelled or reinstated under this Act,

                              (a.1)    authorizations applied for, issued, suspended or cancelled under this Act,

                              (a.2)    exemptions applied for or issued under this Act,

 

13   Section 11(1)(a) and (b) are repealed and the following is substituted:

                                 (a)    require an owner builder to produce any or all of the following:

                                        (i)    proof of the owner builder’s authorization;

                                      (ii)    any records relating to the application for the authorization;

                                     (iii)    any records relating to an exemption from a requirement under this Act,

                                 (b)    require a residential builder to produce any or all of the following:

                                        (i)    proof of the residential builder’s licence;

                                      (ii)    any records relating to the application for the licence;

                                     (iii)    proof that a new home built or under construction by the residential builder has the required home warranty coverage;

                                     (iv)    any records relating to an exemption from a requirement under this Act,

                             (b.1)    require any person who the compliance officer reasonably believes is building a new home to produce proof that the person holds a licence or authorization or is exempt from a requirement under this Act and any records relating to the licence, authorization or exemption,

 

14   Section 12(3)(a) is amended by striking out “an authorization” and substituting “a licence or an authorization”.

15   Section 15 is amended

                            (a)    in subsection (2) by striking out “in respect of a new home, including a dwelling unit within a multiple family dwelling that is a new home,”;

                           (b)    by adding the following after subsection (2):

(2.1)  Where a contravention or failure to comply referred to in subsection (1) is in respect of a multiple family dwelling, a separate administrative penalty may be imposed for each dwelling unit that is a new home within the multiple family dwelling.

                            (c)    in subsection (4) by striking out “under this section”;

                           (d)    by repealing subsection (6) and substituting the following:

(6)  An administrative penalty may be imposed on one or more directors, officers or other persons who authorized, permitted or acquiesced in a contravention or failure to comply by a corporation for which an administrative penalty may be imposed, whether or not an administrative penalty has been imposed on the corporation for the same contravention or failure to comply.

                            (e)    by adding the following after subsection (6):

(6.1)  An administrative penalty may be imposed jointly and severally on a corporation and one or more directors, officers or other persons referred to in subsection (6).

                            (f)    in subsection (7) by striking out “imposed under this section”.

 

16   Section 17(1) is amended by renumbering clause (a) as clause (a.3) and adding the following before clause (a.3):

                                 (a)    who has been refused a licence or renewal of a licence,

                              (a.1)    whose licence is made subject to conditions or restrictions,

                              (a.2)    whose licence has been cancelled or suspended,

 

17   Section 24(1) is repealed and the following is substituted:

Permits

24(1)  A permit issuer shall not issue a building permit for a proposed new home unless the applicant for the permit provides evidence, in a form acceptable to the Registrar, that the proposed new home complies with the requirements of this Act.

 

18   Section 25 is amended by adding the following after clause (b):

                             (b.1)    for licences;

 

19   Section 26(1)(d)(iii) is amended by striking out “an authorization or exemption” and substituting “a licence, authorization or exemption”.

 

20   Section 28 is amended

                            (a)    in subsection (1)

                                  (i)    in clause (c) by striking out “a builder” and substituting “a person”;

                                 (ii)    by adding the following after clause (h):

                                   (h.1)    respecting licences, including, without limitation, regulations

                                             (i)    respecting qualifications and conditions for the purposes of section 4.1(1)(a);

                                            (ii)    respecting applications for licences and licence renewals;

                                           (iii)    prescribing or otherwise providing for the time within which a residential builder may apply for renewal of a licence;

                                           (iv)    respecting the issuance, refusal, renewal, suspension, cancellation and reinstatement of licences by the Registrar;

                                            (v)    respecting conditions and restrictions referred to in section 4.3;

                                           (vi)    respecting requirements for residential builders to produce and display proof of having a licence or an exemption;

                                          (vii)    respecting publication of the issuance, refusal, renewal, suspension, cancellation and reinstatement of licences and of any conditions or restrictions on licences;

                                         (viii)    establishing categories of residential builders for the purposes of regulations made under any or all of subclauses (i) to (vii), including, without limitation, regulations providing differently for different categories of residential builders;

                                           (ix)    respecting exemptions from fees and fee refunds for licences issued for any of the categories of residential builders established under subclause (viii);

                                            (x)    establishing classes of licences for the purposes of regulations made under any or all of subclauses (i) to (vii), including, without limitation, regulations prescribing or otherwise describing requirements that apply or that do not apply to different classes of licences and activities that licences of different classes authorize or do not authorize;

                                           (xi)    prescribing offences under other Acts for the purposes of section 4.5(1)(c);

                                          (xii)    prescribing orders and directions under other Acts for the purposes of section 4.5(1)(f);

                                         (xiii)    prescribing Acts for the purposes of section 4.5(1)(g);

                                   (h.2)    respecting authorizations, including, without limitation, regulations

                                             (i)    respecting applications for authorizations;

                                            (ii)    prescribing criteria for the purposes of section 5(1)(b);

                                           (iii)    respecting the issuance, refusal, suspension and cancellation of authorizations by the Registrar;

                                           (iv)    for the purposes of section 3(1.1), respecting circumstances in which the Registrar must not issue an authorization to build a new home unless the new home is covered by a home warranty insurance contract;

                                            (v)    establishing categories of owner builders for the purposes of regulations made under any or all of subclauses (i) to (iv), including, without limitation, regulations providing differently for different categories of owner builders;

                                           (vi)    establishing classes of authorizations for the purposes of regulations made under any or all of subclauses (i) to (iv), including, without limitation, regulations prescribing or otherwise describing requirements that apply or that do not apply to different classes of authorizations, and activities that authorizations of different classes authorize or do not authorize;

                                   (h.3)    respecting requirements for accredited municipalities, accredited regional service commissions, accredited agencies or the Alberta Safety Codes Authority established under the Safety Codes Act to disclose information, including personal information, to the Registrar on request;

                           (b)    by repealing subsection (2)(b).

Transitional — regulations

21   The Lieutenant Governor in Council may make regulations providing for the transitional application of the amendments to the New Home Buyer Protection Act made by this Act.

Coming into force

22   This Act comes into force on Proclamation.