BILL NO. 217
(as introduced)
1st Session, 59th General Assembly
Nova Scotia
54 Elizabeth II, 2005
Fair Fuel-pricing Act
Darrell Dexter
Cole Harbour
First Reading: May 18, 2005
Second Reading:
Third Reading:
An Act to Ensure Fair and Equitable
Fuel Prices in Nova Scotia
Be it enacted by the Governor and Assembly as follows:
1 This Act may be cited as the Fair Fuel-pricing Act.
(a) "Board" means the Nova Scotia Utility and Review Board;
(b) "controlled retailer" means a retailer that owns or operates an establishment for the retail sale of a petroleum product where the establishment is owned, operated or controlled, directly or indirectly, by a wholesaler;
(c) "heating fuel" means furnace oil, stove oil, propane or any liquid product, whether or not distilled from petroleum, of a type used primarily for generating heat;
(d) "mark-up" means the difference in price between the wholesale price to the retailer and the retail price to consumers that a retailer charges for a petroleum product;
(e) "Minister" means the Minister of Service Nova Scotia and Municipal Relations and, in Sections 19 and 20, includes a person designated by the Minister;
(f) "motor fuel" means gasoline, diesel oil, propane or any liquid product, whether or not distilled from petroleum, of a type used primarily in internal combustion engines or in glow-plug ignition system engines;
(g) "petroleum product" includes any heating fuel or motor fuel;
(h) "prescribed" means prescribed by the regulations;
(i) "price" means the consideration, whether wholly or partly in money or otherwise, payable for a petroleum product and includes any component of the consideration;
(j) "retail price" includes all taxes;
(k) "retailer" means a person who sells or keeps a petroleum product for sale directly to consumers;
(l) "wholesale price" includes all taxes other than the tax imposed pursuant to Part IX of the Excise Tax Act (Canada);
(m) "wholesaler" means a person, other than a retailer, who sells or keeps a petroleum product for sale.
3 (1) The Minister has the general supervision and management of this Act and the regulations.
(2) The Minister may delegate the Minister's powers and duties under Sections 19 and 20 to a person designated by the Minister.
4 No wholesaler or retailer shall change the price of gasoline, diesel oil, furnace oil or any other prescribed petroleum product except in accordance with this Act.
5 (1) Where a fixed wholesale price is prescribed for a petroleum product, no wholesaler shall charge a price for that petroleum product that is greater or less than that fixed wholesale price.
(2) Where a maximum or minimum wholesale price is prescribed for a petroleum product, no wholesaler shall charge a price for that petroleum product that is greater than that maximum wholesale price or less than that minimum wholesale price.
6 Where a maximum retail price is prescribed for a petroleum product, no retailer shall charge a price for that petroleum product that is greater than that maximum retail price.
7 Where a minimum or maximum mark-up is prescribed for a petroleum product, no retailer shall charge a mark-up for that petroleum product that is less than the minimum mark-up or greater than the maximum mark-up, as the case may be.
8 Any term or condition in a contract that
(a) permits a wholesaler or retailer to terminate the contract; or
(b) causes or permits a wholesaler or retailer to reduce, limit or cease to supply a petroleum product or service,
as a result of an enactment that affects the price of a petroleum product, is of no force and effect.
9 The Board shall regulate petroleum products in accordance with this Act.
10 (1) The Board shall, on the first day of each month, prescribe a maximum price that may be charged by a retailer for
(a) each type and grade of heating fuel; and
(b) each type and grade of motor fuel.
(2) The Board shall establish a price-adjustment mechanism that provides for changes in maximum prices established under subsection (1) in circumstances
(a) arising between the times at which the Board is to prescribe maximum prices under that subsection; and
(b) that the Board considers significant enough to merit a change in the maximum prices prescribed under that subsection.
11 The decision of the Board is final as to whether or not any product or mixture comes within the definitions of petroleum product, heating fuel or motor fuel or as to whether the definitions of petroleum product, heating fuel or motor fuel are applicable in a particular case.
12 The Board has general supervision of all wholesalers, controlled retailers and retailers with respect to the pricing of heating fuel and motor fuel, including the authority to regulate the timing and frequency of price changes and, without restricting the generality of the foregoing, the Board has the power to determine the price and any change in the price of heating fuel and motor fuel.
13 (1) The price charged by a wholesaler or controlled retailer for each grade of heating fuel and motor fuel must be a common and universal price to all retailers throughout the Province.
(2) The posted consumer price of each wholesaler or controlled retailer for each grade of heating fuel and motor fuel must be common and universal throughout the Province.
14 No retailer, wholesaler or controlled retailer shall sell heating fuel or motor fuel at a price
(a) different from the price last approved by the Board or the price last filed by the wholesaler or controlled retailer under Section 16, whichever is later, unless otherwise ordered by the Board; or
(b) reflecting a mark-up that is not within the minimum and maximum mark-up determined by the Board.
15 In determining the price or a change in the price of heating fuel or motor fuel, the Board shall apply such criteria as it may from time to time consider advisable and shall have regard to principles of fairness to consumers, affordability of the fuels and the prices charged for the fuels in other provinces of Canada.
16 A wholesaler or controlled retailer who proposes to decrease the prices of all heating fuel and motor fuel products listed in its pricing schedules by the same amount shall
(a) file with the Board a notice setting out
(ii) the amount of the decrease,
(iii) the date on which the decrease is to be effective, and
(iv) such other information as is requested by the Board, either generally or specifically; and
17 (1) The Board may, at any time, give notice to a wholesaler or controlled retailer directing the wholesaler or controlled retailer to appear before it at a hearing for the purpose of making a submission to assist the Board in determining whether or not the prices being charged by that wholesaler or controlled retailer for heating fuel or motor fuel are just and reasonable.
(2) Where a wholesaler or controlled retailer fails to appear at a hearing as directed under subsection (1), the Board may proceed in the absence of the wholesaler or controlled retailer.
18 (1) The Board on its own motion may, and on the request of the Governor in Council shall, conduct a public hearing in respect of prices charged or proposed to be charged by a wholesaler, retailer or controlled retailer for heating fuel or motor fuel.
(2) Notice of a hearing referred to in subsection (1) must be published in a newspaper in the Province having a general circulation in the area affected and the notice must be circulated at least ten days before the date fixed for the public hearing and contain the date, time and place of the hearing and such additional information that the Board considers necessary.
(3) Where the Board has held a public hearing pursuant to subsection (1), it may by order determine what, in its opinion, is the just and reasonable price or prices of heating fuel or motor fuel specified in the notice of hearing and order any or all wholesalers, retailers or controlled retailers to sell or offer for sale the heating fuel or motor fuel to any or all retailers or consumers at the price determined.
(4) The Board may order that any price determined under subsection (3) be retroactive to any specified date, but in no case earlier than the date on which notice of the public hearing is given under subsection (2), in which case the order must contain provisions for the reimbursement or compensation of retailers or consumers, in such manner as the Board considers appropriate.
19 (1) Where reasonably necessary to ensure compliance with this Act or the regulations, the Minister may
(a) at all reasonable times, enter the premises of a wholesaler or retailer to determine whether the price being charged for a petroleum product is in accordance with this Act and the regulations;
(b) inquire into all matters relating to the sale of a petroleum product;
(c) require the production of books, records or other documents relating to the sale of a petroleum product and examine those books, records or other documents or remove them for the purpose of making copies of them.
(2) Every wholesaler or retailer shall keep the books, records or other documents referred to in clause (1)(c) for a period of at least seventy-two months unless the Minister otherwise determines.
(3) A wholesaler or retailer may produce the books, records or other documents referred to in clause (1)(c) for inspection in a place of business outside of the Province at the expense of that wholesaler or retailer, including reimbursement of the Province for all reasonable expenses incurred in carrying out the inspection.
(a) the Minister believes, on reasonable grounds, that a person is contravening or has contravened this Act or the regulations; or
(b) entry onto premises has been refused or denied,
the Minister may apply to a judge of the Provincial Court or a justice of the peace for a warrant under subsection (2).
(2) Where, on an application under subsection (1), a judge of the Provincial Court or a justice of the peace is, by information on oath, satisfied that there are reasonable grounds for believing that this Act or the regulations are being contravened, the judge or justice of the peace may issue a warrant authorizing the Minister to do the things referred to in Section 19.
(3) The owner or person in charge of the premises and every person found in the premises shall give the Minister all reasonable assistance to enable the Minister to carry out the Minister's duties and functions under this Section, and shall furnish the Minister with the information that the Minister may reasonably require.
(4) Notwithstanding subsection (1), the Minister may exercise the power of entry set out in subsection 19(1) without a warrant if the conditions for obtaining the warrant exist but, by reason of exigent circumstances, it is not practical to obtain a warrant.
(5) For the purpose of subsection (4), exigent circumstances include circumstances in which the delay necessary to obtain the warrant could result in the loss or destruction of evidence.
21 (1) Every wholesaler or controlled retailer who increases the price of a petroleum product contrary to Section 4 is guilty of an offence and is liable, on summary conviction, to a fine of not more than five hundred thousand dollars.
(2) Where an offence described in subsection (1) is committed by a person on more than one day or is continued for more than one day, each day on which the offence is committed or continued constitutes a separate offence.
22 (1) Subject to Section 21, every person who contravenes a provision of this Act or the regulations is guilty of an offence and is liable, on summary conviction, to a fine of not more than five thousand dollars.
(2) Where an offence described in subsection (1) is committed by a person on more than one day or is continued for more than one day, each day on which the offence is committed or continued constitutes a separate offence.
23 The act, failure, neglect, omission or refusal of an officer, agent or other person acting for or employed by a wholesaler or a retailer, acting within the scope of that person's employment, is deemed to be the act, failure, neglect, omission or refusal of the wholesaler or retailer.
24 (1) The Governor in Council may make regulations
(a) respecting fees to be charged to wholesalers to cover the costs of administering this Act and the regulations;
(b) respecting inspections and investigations of wholesalers and retailers;
(c) prescribing information that a wholesaler or a retailer is required to provide to the Minister;
(d) establishing or designating a board other than the Board to administer this Act and the regulations, or any part of this Act and the regulations, and determining the powers and duties of that board;
(e) appointing a consumer advocate and determining the powers and duties of the advocate;
(f) prescribing additional penalties for a contravention of this Act or the regulations including, notwithstanding any other enactment, the suspension or revocation of licences and permits;
(g) prescribing petroleum products for the purpose of this Act;
(h) exempting a petroleum product from the application of this Act or the regulations, or any part of the Act or the regulations;
(i) delegating to any person or board any powers or duties under this Act or the regulations;
(j) defining any word or expression used in this Act but not defined in this Act;
(k) further defining any word or expression defined in this Act;
(l) respecting any other matter the Governor in Council considers necessary or advisable to carry out effectively the intent and purpose of this Act.
(2) A regulation may apply to all wholesalers or retailers or to all petroleum products or to a class of wholesalers or retailers or to a class of petroleum products and there may be different regulations for different classes of such wholesalers or retailers or of such petroleum products.
(3) The exercise by the Governor in Council of the authority contained in subsection (1) is regulations within the meaning of the Regulations Act.
25 (1) The Board shall undertake a study of the effects of establishing minimum and maximum profit margins for retailers and report to the Minister on the study no later than September 30, 2005.
(2) The Minister shall table the report of the Board in the Assembly if the Assembly is then sitting or, if the Assembly is not then sitting, shall file the report with the Clerk of the Assembly.
This page and its contents published by the Office of the Legislative Counsel, Nova Scotia House of Assembly, and © 2005 Crown in right of Nova Scotia. Created May 18, 2005. Send comments to legc.office@novascotia.ca.
