Backgrounder on Self-management

The Safety and Consumer Statutes Administration Act (Bill 54) was proclaimed on July 22, 1996. This Act, as provided for in Bill 54, creates "administrative authorities" – non-profit corporations independent of both industry associations and government – which will deliver services and programs for four different industries regulated by MCCR's Business Division (motor vehicle dealers and salespeople, real estate agents and brokers, travel agencies and tour operators and cemetery operators). Motor vehicle dealers and salespeople, governed by the Motor Vehicle Dealers Act, are the first of the four industries to have an administrative authority in place, along with a signed administrative agreement, thus becoming the first among them to move to self-management. As a part of Phase I, the administrative agreement and the transition agreement were signed on January 6,1997, opening the way to a seamless transfer process to be completed by next fall: OMVIC's first annual report is due to be published with the third phase, scheduled for the summer of 1998.

Responsibilities

Under self-management, the Ontario Motor Vehicle Industry Council has the authority and the responsibility for the administration and delivery of functions such as:

  • registration of industry members;
  • refusal, revocation or suspension of registrants;
  • inspection, investigation and prosecution of violations of legislation and regulations; and
  • handling of consumer and business complaints.
Relationship with Government

The Ontario Government, through MCCR, will continue to be responsible for any changes to the Motor Vehicle Dealers Act, setting marketplace standards and for overseeing consumer protection policy. The delivery of delegated services and programs will be the responsibility of OMVIC. The government will be able to focus more on achieving results, rather than providing services and programs that can be more effectively delivered by the private sector.

MCCR will monitor the performance of OMVIC to ensure that marketplace standards are maintained through accountability mechanisms such as business plans, annual reports and third-party audits.

Structure

OMVIC is a not-for-profit, self-funded corporation, independent of government and industry associations. OMVIC has its own Board of Directors and Chief Executive Officer and will conduct and manage its own financial and operational affairs.

The board is composed of representatives from industry, government and consumers – so that business and public interests will be represented.

The Council will be fully financed by the fees collected from industry members: any surplus revenues will be required to be reinvested in continuous business improvement and program development such as increased inspections, stepped-up enforcement, education and training programs and new technologies.