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This is a Bill, not an Act. For current law, see the Acts databases.
2016-2017-2018
The Parliament of the
Commonwealth of Australia
THE SENATE
Presented and read a first time
Australian Cannabis Agency Bill 2018
No. , 2018
(Senator Di Natale)
A Bill for an Act to establish the Australian
Cannabis Agency, and for related purposes
No. , 2018
Australian Cannabis Agency Bill 2018
i
Contents
Part 1--Preliminary
1
1
Short title ........................................................................................... 1
2
Commencement ................................................................................. 1
3
Simplified outline of this Act ............................................................ 2
4
Act binds the Crown .......................................................................... 3
5
Definitions ......................................................................................... 4
Part 2--Constitutional provisions
6
6
Application only within Australian Capital Territory and
Northern Territory ............................................................................. 6
7
Exclusion of Territory laws ............................................................... 6
8
Relationship with other Commonwealth laws ................................... 6
Part 3--Australian Cannabis Agency
7
9
Establishment of the Australian Cannabis Agency ............................ 7
10
Functions of the Cannabis Agency .................................................... 7
11
Recreational cannabis price-setting function ..................................... 7
12
Powers of the Cannabis Agency ........................................................ 8
13
Cannabis Agency does not have privileges and immunities of
the Crown .......................................................................................... 8
Part 4--Cannabis Agency Board
9
Division 1--Establishment and functions
9
14
The Board .......................................................................................... 9
15
Functions of the Board ...................................................................... 9
Division 2--Board members
10
16
Membership ..................................................................................... 10
17
Appointment .................................................................................... 10
18
Acting appointments ........................................................................ 10
19
Remuneration .................................................................................. 11
20
Leave of absence ............................................................................. 12
21
Disclosure of interests to the Minister ............................................. 12
22
Resignation ...................................................................................... 12
23
Termination of appointment ............................................................ 12
24
Other terms and conditions .............................................................. 13
Division 3--Meetings of the Board
14
25
Convening meetings ........................................................................ 14
26
Presiding at meetings ....................................................................... 14
27
Quorum............................................................................................ 14
ii
Australian Cannabis Agency Bill 2018
No. , 2018
28
Voting at meetings ........................................................................... 14
29
Conduct of meetings ........................................................................ 15
30
Minutes ............................................................................................ 15
31
Decisions without meetings ............................................................. 15
32
Disclosure of interests to the Board ................................................. 16
Part 5--Cannabis Agency CEO and staff
17
33
Chief Executive Officer ................................................................... 17
34
Appointment .................................................................................... 17
35
Acting appointments ........................................................................ 17
36
Remuneration .................................................................................. 17
37
Other paid work ............................................................................... 18
38
Leave of absence ............................................................................. 18
39
Resignation ...................................................................................... 18
40
Termination of appointment ............................................................ 18
41
Staff ................................................................................................. 19
Part 6--Cannabis licences
20
Division 1--Cannabis production licence
20
42
Application for cannabis production licence ................................... 20
43
Cannabis Agency must decide whether to grant cannabis
production licence ........................................................................... 20
44
Cannabis Agency may impose licence conditions ........................... 20
45
Cannabis production licence subject to conditions .......................... 21
46
Matters to be specified in a cannabis production licence ................. 21
Division 2--Cannabis distribution licence
22
47
Application for cannabis distribution licence .................................. 22
48
Cannabis Agency must decide whether to grant cannabis
distribution licence .......................................................................... 22
49
Cannabis Agency may impose licence conditions ........................... 22
50
Cannabis distribution licence subject to conditions ......................... 23
51
Matters to be specified in a cannabis distribution licence ................ 23
Division 3--Other matters
24
52
Renewal of cannabis licence ............................................................ 24
53
Revocation of cannabis licence ....................................................... 24
54
Basis on which cannabis licences granted ....................................... 24
Part 7--Offences and civil penalties relating to cannabis
26
55
Physical elements of offences .......................................................... 26
56
Unlicensed production of recreational cannabis .............................. 26
No. , 2018
Australian Cannabis Agency Bill 2018
iii
57
Unlicensed distribution of recreational cannabis where
person possesses 7 or more plants ................................................... 27
57A
Unlicensed sale etc. of recreational cannabis where person
possesses fewer than 7 plants .......................................................... 28
58
Breach of cannabis licence condition .............................................. 28
Part 8--Enforcement of civil penalty provisions
30
59
Appointment of authorised officers ................................................. 30
60
Monitoring powers .......................................................................... 30
61
Investigation powers ........................................................................ 31
62
Civil penalty provisions ................................................................... 32
63
Infringement notices ........................................................................ 33
64
Injunctions ....................................................................................... 34
Part 9--Miscellaneous
35
65
Review of decisions by Administrative Appeals Tribunal ............... 35
66
Rules ................................................................................................ 35
67
Independent review ......................................................................... 35
No. , 2018
Australian Cannabis Agency Bill 2018
1
A Bill for an Act to establish the Australian
1
Cannabis Agency, and for related purposes
2
The Parliament of Australia enacts:
3
Part 1--Preliminary
4
5
1 Short title
6
This Act is the Australian Cannabis Agency Act 2018.
7
2 Commencement
8
(1) Each provision of this Act specified in column 1 of the table
9
commences, or is taken to have commenced, in accordance with
10
Part 1 Preliminary
Section 3
2
Australian Cannabis Agency Bill 2018
No. , 2018
column 2 of the table. Any other statement in column 2 has effect
1
according to its terms.
2
3
Commencement information
Column 1
Column 2
Column 3
Provisions
Commencement
Date/Details
1. Sections 1 and
2 and anything in
this Act not
elsewhere covered
by this table
The day after this Act receives the Royal
Assent.
2. Sections 3 to
67
The day the Consolidated Revenue Fund is
appropriated to fund the Cannabis Agency.
Note:
This table relates only to the provisions of this Act as originally
4
enacted. It will not be amended to deal with any later amendments of
5
this Act.
6
(2) Any information in column 3 of the table is not part of this Act.
7
Information may be inserted in this column, or information in it
8
may be edited, in any published version of this Act.
9
3 Simplified outline of this Act
10
This Act regulates the production and distribution of recreational
11
cannabis in the Australian Capital Territory and the Northern
12
Territory.
13
This Act includes provisions about the application of this Act and
14
its relationship with laws of the Commonwealth, the Australian
15
Capital Territory and the Northern Territory.
16
This Act establishes the Australian Cannabis Agency, a corporate
17
Commonwealth entity with functions and powers relating to the
18
regulation of recreational cannabis.
19
The Cannabis Agency is governed by a Board, managed by a CEO
20
and staffed by public servants.
21
Preliminary Part 1
Section 4
No. , 2018
Australian Cannabis Agency Bill 2018
3
The Cannabis Agency issues cannabis production licences and
1
cannabis distribution licences. A number of conditions are attached
2
to such licences and the Cannabis Agency may impose additional
3
conditions. Cannabis licences are renewable. The Cannabis
4
Agency may revoke a cannabis licence if a licence condition is
5
breached.
6
The Cannabis Agency acts as the sole recreational cannabis
7
wholesaler. Only the Cannabis Agency may buy recreational
8
cannabis from a production licensee or sell recreational cannabis to
9
a distribution licensee.
10
This Act creates offences and civil penalties relating to the
11
unlicensed production or distribution of recreational cannabis and
12
the contravention of cannabis licence conditions.
13
However, an individual may possess 6 or fewer recreational
14
cannabis plants, and an individual in possession of 6 or fewer
15
recreational cannabis plants may distribute recreational cannabis
16
from those plants to other individuals so long as the distribution is
17
free.
18
A range of compliance and enforcement powers are provided,
19
including by applying the Regulatory Powers Act.
20
Decisions made under this Act by the Cannabis Agency may be
21
reviewed by the Administrative Appeals Tribunal.
22
The Minister may make rules for the purposes of this Act.
23
An independent review of the operation of this Act, and a report of
24
that review, which may include recommendations to the
25
Commonwealth Government, must be completed.
26
4 Act binds the Crown
27
This Act binds the Crown in each of its capacities.
28
Part 1 Preliminary
Section 5
4
Australian Cannabis Agency Bill 2018
No. , 2018
5 Definitions
1
In this Act:
2
Board means the Board of the Cannabis Agency established by
3
section 14.
4
cannabis has the same meaning as in the Narcotic Drugs Act 1967.
5
Cannabis Agency means the Australian Cannabis Agency
6
established by section 9.
7
cannabis distribution licence: see section 47.
8
cannabis licence means:
9
(a) a cannabis production licence; or
10
(b) a cannabis distribution licence.
11
cannabis production licence: see section 42.
12
CEO means the Chief Executive Officer of the Cannabis Agency.
13
Chair means the Chair of the Board of the Cannabis Agency.
14
distribute means:
15
(a) sell; or
16
(b) offer for sale; or
17
(c) otherwise supply (whether or not for consideration).
18
engage in conduct means:
19
(a) do an act; or
20
(b) omit to perform an act.
21
fixed price period means the period of 2 years beginning on the
22
day that section 11 commences.
23
medicinal cannabis product has the same meaning as in the
24
Narcotic Drugs Act 1967.
25
paid work means work for financial gain or reward (whether as an
26
employee, a self-employed person or otherwise).
27
produce includes grow.
28
Preliminary Part 1
Section 5
No. , 2018
Australian Cannabis Agency Bill 2018
5
recreational cannabis means cannabis other than cannabis that is,
1
or is included in, a medicinal cannabis product.
2
recreational cannabis price-setting function: see section 11.
3
Regulatory Powers Act means the Regulatory Powers (Standard
4
Provisions) Act 2014.
5
statutory wholesale price means the price of recreational cannabis
6
determined by the Cannabis Agency under section 11.
7
Part 2 Constitutional provisions
Section 6
6
Australian Cannabis Agency Bill 2018
No. , 2018
Part 2--Constitutional provisions
1
2
6 Application only within Australian Capital Territory and
3
Northern Territory
4
This Act applies only within the Australian Capital Territory and
5
the Northern Territory.
6
7 Exclusion of Territory laws
7
(1) It is the intention of the Parliament that this Act is to apply to the
8
exclusion of a law of the Australian Capital Territory or the
9
Northern Territory.
10
(2) In particular, it is the intention of the Parliament that this Act is to
11
apply to the exclusion of a law of the Australian Capital Territory
12
or the Northern Territory relating to:
13
(a) the production of recreational cannabis; or
14
(b) the distribution of recreational cannabis; or
15
(c) the possession of recreational cannabis.
16
8 Relationship with other Commonwealth laws
17
(1) This Act is not intended to exclude or limit the operation of a
18
Commonwealth law relating to medicinal cannabis that is capable
19
of operating concurrently with this Act.
20
(2) However, it is the intention of the Parliament that this Act is to
21
apply to the exclusion of a law of the Commonwealth relating to:
22
(a) the production of recreational cannabis; or
23
(b) the distribution of recreational cannabis; or
24
(c) the possession of recreational cannabis.
25
Australian Cannabis Agency Part 3
Section 9
No. , 2018
Australian Cannabis Agency Bill 2018
7
Part 3--Australian Cannabis Agency
1
2
9 Establishment of the Australian Cannabis Agency
3
(1) The Australian Cannabis Agency is established by this section.
4
(2) The Cannabis Agency:
5
(a) is a body corporate; and
6
(b) must have a seal; and
7
(c) may acquire, hold and dispose of real and personal property;
8
and
9
(d) may sue and be sued.
10
(3) The Cannabis Agency's seal is to be kept in such custody as the
11
Board directs and must not be used except as authorised by the
12
Board.
13
10 Functions of the Cannabis Agency
14
The Cannabis Agency has the following functions:
15
(a) to regulate the production of recreational cannabis;
16
(b) the recreational cannabis price-setting function;
17
(c) to regulate the sale of recreational cannabis.
18
11 Recreational cannabis price-setting function
19
(1) The recreational cannabis price-setting function is to determine
20
in writing the price at which the Cannabis Agency may, during the
21
fixed price period:
22
(a) buy recreational cannabis from the holder of a cannabis
23
production licence; and
24
(b) sell recreational cannabis to the holder of a cannabis
25
distribution licence.
26
(2) In performing the recreational cannabis price-setting function, the
27
Cannabis Agency may have regard to:
28
Part 3 Australian Cannabis Agency
Section 12
8
Australian Cannabis Agency Bill 2018
No. , 2018
(a) the street value of recreational cannabis immediately before
1
the start of the fixed price period; and
2
(b) any other matter the Cannabis Agency considers relevant.
3
(3) A determination made under subsection (1) is not a legislative
4
instrument.
5
12 Powers of the Cannabis Agency
6
(1) The Cannabis Agency has power to do all things necessary or
7
convenient to be done for or in connection with the performance of
8
its functions.
9
(2) The Cannabis Agency's powers include, but are not limited to, the
10
following powers:
11
(a) the power to enter contracts;
12
(b) during the fixed price period--the power to buy recreational
13
cannabis from the holder of a cannabis production licence at
14
the statutory wholesale price;
15
(c) during the fixed price period--the power to sell recreational
16
cannabis to the holder of a cannabis distribution licence at the
17
statutory wholesale price;
18
(d) after the fixed price period--the power to buy recreational
19
cannabis from the holder of a cannabis production licence at
20
a price agreed between the Cannabis Agency and the
21
licensee;
22
(e) after the fixed price period--the power to sell recreational
23
cannabis to the holder of a cannabis distribution licence at a
24
price agreed between the Cannabis Agency and the licensee;
25
(f) the power to do anything incidental to the Cannabis Agency's
26
functions.
27
13 Cannabis Agency does not have privileges and immunities of the
28
Crown
29
The Cannabis Agency does not have the privileges and immunities
30
of the Crown in right of the Commonwealth.
31
Cannabis Agency Board Part 4
Establishment and functions Division 1
Section 14
No. , 2018
Australian Cannabis Agency Bill 2018
9
Part 4--Cannabis Agency Board
1
Division 1--Establishment and functions
2
14 The Board
3
There is to be a Board of the Cannabis Agency.
4
15 Functions of the Board
5
(1) The functions of the Board are:
6
(a) to decide strategies and policies to be followed by the
7
Cannabis Agency; and
8
(b) to ensure the proper, efficient and effective performance of
9
the Cannabis Agency's functions; and
10
(c) any other functions conferred on the Board by this Act.
11
(2) The Board has the power to do all things necessary or convenient
12
to be done for or in connection with the performance of its
13
functions.
14
(3) Anything done in the name of, or on behalf of, the Cannabis
15
Agency by the Board, or with the authority of the Board, is taken
16
to have been done by the Cannabis Agency.
17
Part 4 Cannabis Agency Board
Division 2 Board members
Section 16
10
Australian Cannabis Agency Bill 2018
No. , 2018
Division 2--Board members
1
16 Membership
2
The Board consists of the following members:
3
(a) a Chair;
4
(b) at least 8, and no more than 10, other members.
5
17 Appointment
6
(1) Each Board member is to be appointed by the Minister by written
7
instrument on a part-time basis.
8
Note:
A Board member may be reappointed: see section 33AA of the Acts
9
Interpretation Act 1901.
10
(2) A Board member holds office for the period specified in the
11
instrument of appointment. The period must not exceed 5 years.
12
(3) A person is not eligible for appointment as a Board member unless
13
the Minister is satisfied that the appointment of the person would
14
ensure that:
15
(a) the members of the Board collectively possess an appropriate
16
balance of experience and knowledge in the following fields:
17
(i) drug-use harm reduction;
18
(ii) medicine;
19
(iii) mental health;
20
(iv) consumer advocacy;
21
(v) law enforcement; and
22
(b) the Board includes a member from each State and Territory.
23
18 Acting appointments
24
Chair
25
(1) The Minister may, by written instrument, appoint a person to act as
26
the Chair:
27
Cannabis Agency Board Part 4
Board members Division 2
Section 19
No. , 2018
Australian Cannabis Agency Bill 2018
11
(a) during a vacancy in the office of the Chair (whether or not an
1
appointment has previously been made to the office); or
2
(b) during any period, or during all periods, when the Chair:
3
(i) is absent from duty or from Australia; or
4
(ii) is, for any reason, unable to perform the duties of the
5
office.
6
Note:
For rules that apply to acting appointments, see sections 33AB and
7
33A of the Acts Interpretation Act 1901.
8
Other Board members
9
(2) The Minister may, by written instrument, appoint a person to act as
10
a Board member other than the Chair:
11
(a) during a vacancy in the office of a Board member other than
12
the Chair (whether or not an appointment has previously been
13
made to the office); or
14
(b) during any period, or during all periods, when a Board
15
member other than the Chair:
16
(i) is absent from duty or from Australia; or
17
(ii) is, for any reason, unable to perform the duties of the
18
office.
19
Note:
For rules that apply to acting appointments, see sections 33AB and
20
33A of the Acts Interpretation Act 1901.
21
Eligibility
22
(3) A person is not eligible for appointment under subsection (1) or (2)
23
unless the person is eligible for appointment as a Board member.
24
Note:
For eligibility to be appointed as a Board member, see
25
subsection 17(3).
26
19 Remuneration
27
(1) A Board member is to be paid the remuneration that is determined
28
by the Remuneration Tribunal. If no determination of that
29
remuneration by the Tribunal is in operation, a Board member is to
30
be paid the remuneration that is specified in the rules.
31
Part 4 Cannabis Agency Board
Division 2 Board members
Section 20
12
Australian Cannabis Agency Bill 2018
No. , 2018
(2) A Board member is to be paid the allowances that are specified in
1
the rules.
2
(3) This section has effect subject to the Remuneration Tribunal Act
3
1973.
4
20 Leave of absence
5
Chair
6
(1) The Minister may grant leave of absence to the Chair on the terms
7
and conditions that the Minister determines.
8
Other Board members
9
(2) The Chair may grant leave of absence to any other Board member
10
on the terms and conditions that the Chair determines.
11
21 Disclosure of interests to the Minister
12
A Board member must give written notice to the Minister of all
13
interests, pecuniary or otherwise, that the Board member has or
14
acquires and that conflict or could conflict with the proper
15
performance of the Board member's functions.
16
22 Resignation
17
(1) A Board member may resign his or her appointment by giving the
18
Minister a written resignation.
19
(2) The resignation takes effect on the day it is received by the
20
Minister or, if a later day is specified in the resignation, on that
21
later day.
22
23 Termination of appointment
23
(1) The Minister may terminate the appointment of a Board member:
24
(a) for misbehaviour; or
25
(b) if the Board member is unable to perform the duties of his or
26
her office because of physical or mental incapacity.
27
Cannabis Agency Board Part 4
Board members Division 2
Section 24
No. , 2018
Australian Cannabis Agency Bill 2018
13
(2) The Minister may terminate the appointment of a Board member if:
1
(a) the Board member:
2
(i) becomes bankrupt; or
3
(ii) applies to take the benefit of any law for the relief of
4
bankrupt or insolvent debtors; or
5
(iii) compounds with his or her creditors; or
6
(iv) makes an assignment of his or her remuneration for the
7
benefit of his or her creditors; or
8
(b) the Board member is absent, except on leave of absence,
9
from 3 consecutive meetings of the Board.
10
24 Other terms and conditions
11
A Board member holds office on the terms and conditions (if any)
12
in relation to matters not covered by this Act that are determined
13
by the Minister.
14
Part 4 Cannabis Agency Board
Division 3 Meetings of the Board
Section 25
14
Australian Cannabis Agency Bill 2018
No. , 2018
Division 3--Meetings of the Board
1
25 Convening meetings
2
(1) The Board must hold the meetings that are necessary for the
3
efficient performance of its functions.
4
(2) Meetings are to be held at the times and places that the Board
5
determines.
6
Note:
See also section 33B of the Acts Interpretation Act 1901, which
7
contains extra rules about meetings by telephone etc.
8
(3) The Chair:
9
(a) may convene a meeting; and
10
(b) must convene at least 4 meetings each calendar year; and
11
(c) must convene a meeting within 30 days of receiving a written
12
request to do so from a majority of the other Board members.
13
26 Presiding at meetings
14
(1) The Chair must preside at all meetings at which he or she is
15
present.
16
(2) If the Chair is not present at a meeting, the other Board members
17
present must appoint one of themselves to preside.
18
27 Quorum
19
At a meeting of the Board, a quorum is constituted by:
20
(a) 7 Board members; or
21
(b) at any time when there are only 9 Board members--5 Board
22
members.
23
28 Voting at meetings
24
(1) A question arising at a meeting is to be determined by a majority of
25
the votes of the Board members present and voting.
26
Cannabis Agency Board Part 4
Meetings of the Board Division 3
Section 29
No. , 2018
Australian Cannabis Agency Bill 2018
15
(2) The person presiding at a meeting has a deliberative vote and, in
1
the event of an equality of votes, a casting vote.
2
29 Conduct of meetings
3
The Board may regulate proceedings at its meetings as it considers
4
appropriate.
5
30 Minutes
6
The Board must keep minutes of its meetings.
7
31 Decisions without meetings
8
(1) The Board is taken to have made a decision at a meeting if:
9
(a) without meeting, a majority of the Board members entitled to
10
vote on the proposed decision indicate agreement with the
11
decision; and
12
(b) that agreement is indicated in accordance with the method
13
determined by the Board under subsection (2); and
14
(c) all the Board members were informed of the proposed
15
decision, or reasonable efforts were made to inform all the
16
members of the proposed decision.
17
(2) Subsection (1) applies only if the Board:
18
(a) has determined that it may make decisions of that kind
19
without meeting; and
20
(b) has determined the method by which Board members are to
21
indicate agreement with proposed decisions.
22
(3) For the purposes of paragraph (1)(a), a Board member is not
23
entitled to vote on a proposed decision if the member would not
24
have been entitled to vote on that proposal if the matter had been
25
considered at a meeting of the Board.
26
(4) The Board must keep a record of decisions made in accordance
27
with this section.
28
Part 4 Cannabis Agency Board
Division 3 Meetings of the Board
Section 32
16
Australian Cannabis Agency Bill 2018
No. , 2018
32 Disclosure of interests to the Board
1
(1) A Board Member who has an interest, pecuniary or otherwise, that
2
the Board member has or acquires and that conflicts or could
3
conflict with the proper performance of the Board member's
4
functions in a matter being considered or about to be considered by
5
the Board must disclose the nature of the interest to a meeting of
6
the Board.
7
(2) The disclosure must be made as soon as possible after the relevant
8
facts have come to the Board member's knowledge.
9
(3) The disclosure must be recorded in the minutes of the meeting.
10
(4) The Board member:
11
(a) must not be present during any deliberation by the Board on
12
the matter; and
13
(b) must not take part in any decision of the Board with respect
14
to the matter.
15
Cannabis Agency CEO and staff Part 5
Section 33
No. , 2018
Australian Cannabis Agency Bill 2018
17
Part 5--Cannabis Agency CEO and staff
1
2
33 Chief Executive Officer
3
There is to be a Chief Executive Officer of the Cannabis Agency.
4
34 Appointment
5
(1) The CEO is to be appointed by the Board by written instrument, on
6
a full-time basis.
7
Note:
The CEO may be reappointed: see section 33AA of the Acts
8
Interpretation Act 1901.
9
(2) The CEO holds office for the period specified in the instrument of
10
appointment. The period must not exceed 5 years.
11
(3) The CEO must not be a member of the Board.
12
35 Acting appointments
13
The Board may, by written instrument, appoint a person to act as
14
the CEO:
15
(a) during a vacancy in the office of CEO (whether or not an
16
appointment has previously been made to the office); or
17
(b) during any period, or during all periods, when the CEO:
18
(i) is absent from duty or from Australia; or
19
(ii) is, for any reason, unable to perform the duties of the
20
office.
21
Note:
For rules that apply to acting appointments, see sections 33AB and
22
33A of the Acts Interpretation Act 1901.
23
36 Remuneration
24
(1) The CEO is to be paid the remuneration that is determined by the
25
Remuneration Tribunal. If no determination of that remuneration
26
by the Tribunal is in operation, the CEO is to be paid the
27
remuneration that is specified in the rules.
28
Part 5 Cannabis Agency CEO and staff
Section 37
18
Australian Cannabis Agency Bill 2018
No. , 2018
(2) The CEO is to be paid the allowances that are specified in the
1
rules.
2
(3) This section has effect subject to the Remuneration Tribunal Act
3
1973.
4
37 Other paid work
5
The CEO must not engage in paid work outside the duties of his or
6
her office without the Chair's approval.
7
38 Leave of absence
8
(1) The CEO has the recreation leave entitlements that are determined
9
by the Remuneration Tribunal.
10
(2) The Chair may grant the CEO leave of absence, other than
11
recreation leave, on the terms and conditions as to remuneration or
12
otherwise that the Chair determines.
13
39 Resignation
14
(1) The CEO may resign his or her appointment by giving the Chair a
15
written resignation.
16
(2) The resignation takes effect on the day it is received by the Chair
17
or, if a later day is specified in the resignation, on that later day.
18
40 Termination of appointment
19
(1) The Board may terminate the appointment of the CEO:
20
(a) for misbehaviour; or
21
(b) if the CEO is unable to perform the duties of his or her office
22
because of physical or mental incapacity.
23
(2) The Board may terminate the appointment of the CEO if:
24
(a) the CEO:
25
(i) becomes bankrupt; or
26
(ii) applies to take the benefit of any law for the relief of
27
bankrupt or insolvent debtors; or
28
Cannabis Agency CEO and staff Part 5
Section 41
No. , 2018
Australian Cannabis Agency Bill 2018
19
(iii) compounds with his or her creditors; or
1
(iv) makes an assignment of his or her remuneration for the
2
benefit of his or her creditors; or
3
(b) the CEO is absent, except on leave of absence, for 14
4
consecutive days or for 28 days in any 12 months; or
5
(c) the CEO engages, except with the Chair's approval, in paid
6
work outside the duties of his or her office (see section 37);
7
or
8
(d) the CEO fails, without reasonable excuse, to comply with
9
section 29 of the Public Governance, Performance and
10
Accountability Act 2013 (which deals with the duty to
11
disclose interests) or rules made for the purposes of that
12
section.
13
41 Staff
14
(1) The staff of the Cannabis Agency must be persons engaged under
15
the Public Service Act 1999.
16
(2) For the purposes of the Public Service Act 1999:
17
(a) the CEO and the APS employees assisting the CEO together
18
constitute a Statutory Agency; and
19
(b) the CEO is the Head of that Statutory Agency.
20
Part 6 Cannabis licences
Division 1 Cannabis production licence
Section 42
20
Australian Cannabis Agency Bill 2018
No. , 2018
Part 6--Cannabis licences
1
Division 1--Cannabis production licence
2
42 Application for cannabis production licence
3
(1) A person may apply to the Cannabis Agency for a licence (a
4
cannabis production licence) that authorises the production of
5
recreational cannabis.
6
(2) The application must be made in the form approved in writing by
7
the Cannabis Agency.
8
43 Cannabis Agency must decide whether to grant cannabis
9
production licence
10
(1) On receiving an application under section 42 for a cannabis
11
production licence, the Cannabis Agency must decide:
12
(a) to grant the applicant a cannabis production licence; or
13
(b) to refuse to grant the applicant a cannabis production licence.
14
(2) The Cannabis Agency must not grant the applicant a cannabis
15
production licence unless the Cannabis Agency is satisfied that the
16
applicant is a fit and proper person to hold a cannabis production
17
licence.
18
(3) For the purposes of deciding whether to grant, or refuse to grant
19
the applicant a cannabis production licence, the Cannabis Agency
20
may have regard to any matter that the Cannabis Agency considers
21
relevant.
22
44 Cannabis Agency may impose licence conditions
23
If the Cannabis Agency decides to grant a cannabis production
24
licence, the Cannabis Agency may impose conditions to which the
25
licence is subject.
26
Cannabis licences Part 6
Cannabis production licence Division 1
Section 45
No. , 2018
Australian Cannabis Agency Bill 2018
21
45 Cannabis production licence subject to conditions
1
Without limiting section 44, a cannabis production licence is
2
subject to the following:
3
(a) a condition that the licence holder not distribute recreational
4
cannabis produced under the licence otherwise than by way
5
of sale to the Cannabis Agency;
6
(b) a condition that, upon a request made to the licence holder by
7
the Cannabis Agency, the licence holder permit the Cannabis
8
Agency to inspect the premises at which recreational
9
cannabis is produced under the licence.
10
46 Matters to be specified in a cannabis production licence
11
A cannabis production licence must specify the following:
12
(a) the name of the licence holder;
13
(b) the period for which the licence is in force;
14
(c) the conditions (if any) imposed by the Cannabis Agency
15
under section 44;
16
(d) any other matter specified in the rules.
17
Part 6 Cannabis licences
Division 2 Cannabis distribution licence
Section 47
22
Australian Cannabis Agency Bill 2018
No. , 2018
Division 2--Cannabis distribution licence
1
47 Application for cannabis distribution licence
2
(1) A person may apply to the Cannabis Agency for a licence (a
3
cannabis distribution licence) that authorises the distribution of
4
recreational cannabis.
5
(2) The application must be made in the form approved in writing by
6
the Cannabis Agency.
7
48 Cannabis Agency must decide whether to grant cannabis
8
distribution licence
9
(1) On receiving an application under section 47 for a cannabis
10
distribution licence, the Cannabis Agency must decide:
11
(a) to grant the applicant a cannabis distribution licence; or
12
(b) to refuse to grant the applicant a cannabis distribution
13
licence.
14
(2) The Cannabis Agency must not grant the applicant a cannabis
15
distribution licence unless the Cannabis Agency is satisfied that the
16
applicant is a fit and proper person to hold a cannabis distribution
17
licence.
18
(3) For the purposes of deciding whether to grant, or refuse to grant
19
the applicant a cannabis distribution licence, the Cannabis Agency
20
may have regard to any matter that the Cannabis Agency considers
21
relevant.
22
49 Cannabis Agency may impose licence conditions
23
If the Cannabis Agency decides to grant a cannabis distribution
24
licence, the Cannabis Agency may impose conditions to which the
25
licence is subject.
26
Cannabis licences Part 6
Cannabis distribution licence Division 2
Section 50
No. , 2018
Australian Cannabis Agency Bill 2018
23
50 Cannabis distribution licence subject to conditions
1
Without limiting section 49, a cannabis distribution licence is
2
subject to the following:
3
(a) a condition that the licensee not distribute recreational
4
cannabis to any person under 18 years of age;
5
(b) a condition that the licensee only distribute recreational
6
cannabis that was sold to the licensee by the Cannabis
7
Agency;
8
(c) a condition that any recreational cannabis distributed under
9
the licence is contained in plain packaging;
10
(d) a condition that any recreational cannabis distributed by the
11
licensee is accompanied by information or warnings as
12
required by the Cannabis Agency from time to time;
13
(e) a condition that any individual who distributes recreational
14
cannabis under the licence has received:
15
(i) mental health first aid training; and
16
(ii) training in the responsible distribution of recreational
17
cannabis;
18
(f) a condition that, upon a request made to the licensee by the
19
Cannabis Agency, the licensee permit the Cannabis Agency
20
to inspect the premises at which recreational cannabis is
21
distributed under the licence.
22
51 Matters to be specified in a cannabis distribution licence
23
A cannabis distribution licence must specify the following:
24
(a) the name of the licence holder;
25
(b) the period for which the licence is in force;
26
(c) the conditions (if any) imposed by the Cannabis Agency
27
under section 49;
28
(d) any other matter specified in the rules.
29
Part 6 Cannabis licences
Division 3 Other matters
Section 52
24
Australian Cannabis Agency Bill 2018
No. , 2018
Division 3--Other matters
1
52 Renewal of cannabis licence
2
(1) The holder of a cannabis licence may apply to the Cannabis
3
Agency to renew the licence.
4
(2) An application to renew a cannabis licence must be made before
5
the licence expires.
6
(3) If an application to renew a cannabis licence is made before the
7
licence expires, the application is taken to be an application for a
8
new cannabis licence, and:
9
(a) if the cannabis licence is a cannabis production licence--
10
Division 1 applies in relation to the application; or
11
(b) if the cannabis licence is a cannabis distribution licence--
12
Division 2 applies in relation to the application.
13
53 Revocation of cannabis licence
14
(1) The Cannabis Agency may revoke a cannabis licence if the
15
Cannabis Agency reasonably believes that a condition of the
16
licence has been, or is being, contravened.
17
(2) If the Cannabis Agency revokes a cannabis licence, the Cannabis
18
Agency must give the licensee a written notice stating:
19
(a) that the licence is to be revoked; and
20
(b) the reasons for the revocation; and
21
(c) the date the revocation is to take effect.
22
54 Basis on which cannabis licences granted
23
A cannabis licence granted under this Part is granted on the basis
24
that:
25
(a) the licence may be revoked under section 53; and
26
(b) the licence may be cancelled, revoked, terminated or varied
27
by or under later legislation; and
28
Cannabis licences Part 6
Other matters Division 3
Section 54
No. , 2018
Australian Cannabis Agency Bill 2018
25
(c) no compensation is payable if the licence is cancelled,
1
revoked, terminated or varied as mentioned in either of the
2
above paragraphs.
3
Part 7 Offences and civil penalties relating to cannabis
Section 55
26
Australian Cannabis Agency Bill 2018
No. , 2018
Part 7--Offences and civil penalties relating to
1
cannabis
2
3
55 Physical elements of offences
4
For the purposes of applying Chapter 2 of the Criminal Code to an
5
offence in a section in this Part, the physical elements of the
6
offence are set out in subsection (1) of the section.
7
Note:
Chapter 2 of the Criminal Code sets out general principles of criminal
8
responsibility.
9
56 Unlicensed production of recreational cannabis
10
(1) A person contravenes this subsection if:
11
(a) the person possesses 7 or more recreational cannabis plants;
12
and
13
(b) the person produces recreational cannabis; and
14
(c) the person does not hold a cannabis production licence.
15
Fault-based offence
16
(2) A person commits an offence if the person contravenes
17
subsection (1).
18
Note:
See section 55 in relation to the physical elements of the offence.
19
Penalty: 500 penalty units.
20
Strict liability offence
21
(3) A person commits an offence of strict liability if the person
22
contravenes subsection (1).
23
Note:
For strict liability, see section 6.1 of the Criminal Code.
24
Penalty: 50 penalty units.
25
Offences and civil penalties relating to cannabis Part 7
Section 57
No. , 2018
Australian Cannabis Agency Bill 2018
27
Civil penalty provision
1
(4) A person is liable to a civil penalty if the person contravenes
2
subsection (1).
3
Civil penalty:
500 penalty units.
4
57 Unlicensed distribution of recreational cannabis where person
5
possesses 7 or more plants
6
(1) A person contravenes this subsection if:
7
(a) the person possesses 7 or more recreational cannabis plants;
8
and
9
(b) the person distributes recreational cannabis; and
10
(c) the person does not hold a cannabis distribution licence.
11
Fault-based offence
12
(2) A person commits an offence if the person contravenes
13
subsection (1).
14
Note:
See section 55 in relation to the physical elements of the offence.
15
Penalty: 500 penalty units.
16
Strict liability offence
17
(3) A person commits an offence of strict liability if the person
18
contravenes subsection (1).
19
Note:
For strict liability, see section 6.1 of the Criminal Code.
20
Penalty: 50 penalty units.
21
Civil penalty provision
22
(4) A person is liable to a civil penalty if the person contravenes
23
subsection (1).
24
Civil penalty:
500 penalty units.
25
Part 7 Offences and civil penalties relating to cannabis
Section 57A
28
Australian Cannabis Agency Bill 2018
No. , 2018
57A Unlicensed sale etc. of recreational cannabis where person
1
possesses fewer than 7 plants
2
(1) A person contravenes this subsection if:
3
(a) the person possesses 6 or fewer recreational cannabis plants;
4
and
5
(b) the person:
6
(i) sells; or
7
(ii) offers for sale; or
8
(iii) otherwise supplies for consideration;
9
recreational cannabis; and
10
(c) the person does not hold a cannabis distribution licence.
11
Fault-based offence
12
(2) A person commits an offence if the person contravenes
13
subsection (1).
14
Note:
See section 55 in relation to the physical elements of the offence.
15
Penalty: 500 penalty units.
16
Strict liability offence
17
(3) A person commits an offence of strict liability if the person
18
contravenes subsection (1).
19
Note:
For strict liability, see section 6.1 of the Criminal Code.
20
Penalty: 50 penalty units.
21
Civil penalty provision
22
(4) A person is liable to a civil penalty if the person contravenes
23
subsection (1).
24
Civil penalty:
500 penalty units.
25
58 Breach of cannabis licence condition
26
(1) A person contravenes this subsection if:
27
(a) the person holds a cannabis licence; and
28
Offences and civil penalties relating to cannabis Part 7
Section 58
No. , 2018
Australian Cannabis Agency Bill 2018
29
(b) the licence is subject to a condition; and
1
(c) the person engages in conduct; and
2
(d) the conduct breaches the condition.
3
Fault-based offence
4
(2) A person commits an offence if the person contravenes
5
subsection (1).
6
Note:
See section 55 in relation to the physical elements of the offence.
7
Penalty: 500 penalty units.
8
Strict liability offence
9
(3) A person commits an offence of strict liability if the person
10
contravenes subsection (1).
11
Note:
For strict liability, see section 6.1 of the Criminal Code.
12
Penalty: 50 penalty units.
13
Civil penalty provision
14
(4) A person is liable to a civil penalty if the person contravenes
15
subsection (1).
16
Civil penalty:
500 penalty units.
17
Part 8 Enforcement of civil penalty provisions
Section 59
30
Australian Cannabis Agency Bill 2018
No. , 2018
Part 8--Enforcement of civil penalty provisions
1
2
59 Appointment of authorised officers
3
(1) The CEO may, in writing, appoint a member of the staff of the
4
Cannabis Agency as an authorised officer for the purposes of this
5
Part.
6
(2) The CEO must not appoint a person as an authorised officer unless
7
the CEO is satisfied that the person has the knowledge or
8
experience necessary to properly exercise the powers of an
9
authorised officer.
10
(3) An authorised officer must, in exercising powers as such, comply
11
with any directions of the CEO.
12
(4) If a direction is given under subsection (3) in writing, the direction
13
is not a legislative instrument.
14
60 Monitoring powers
15
Provisions subject to monitoring
16
(1) This Act is subject to monitoring under Part 2 of the Regulatory
17
Powers Act.
18
Note:
Part 2 of the Regulatory Powers Act creates a framework for
19
monitoring whether this Act has been complied with. It includes
20
powers of entry and inspection.
21
Information subject to monitoring
22
(2) Information given in compliance or purported compliance with a
23
provision of this Act is subject to monitoring under Part 2 of the
24
Regulatory Powers Act.
25
Note:
Part 2 of the Regulatory Powers Act creates a framework for
26
monitoring whether the information is correct. It includes powers of
27
entry and inspection.
28
Enforcement of civil penalty provisions Part 8
Section 61
No. , 2018
Australian Cannabis Agency Bill 2018
31
Related provisions, authorised applicant, authorised person,
1
issuing officer, relevant chief executive and relevant court
2
(3) For the purposes of Part 2 of the Regulatory Powers Act, as it
3
applies in relation to the provisions of this Act:
4
(b) an authorised officer is an authorised applicant; and
5
(c) an authorised officer is an authorised person; and
6
(d) a magistrate is an issuing officer; and
7
(e) the CEO is the relevant chief executive; and
8
(f) the Federal Circuit Court of Australia and the Federal Court
9
of Australia are the relevant courts.
10
(4) The relevant chief executive may, in writing, delegate the powers
11
and functions mentioned in subsection (5) to an authorised person.
12
(5) The powers and functions that may be delegated are:
13
(a) powers under Part 2 of the Regulatory Powers Act in relation
14
to the provisions of this Act; and
15
(b) powers and functions under the Regulatory Powers Act that
16
are incidental to a power mentioned in paragraph (a).
17
(6) A person exercising powers or performing functions under a
18
delegation under subsection (4) must comply with any directions of
19
the relevant chief executive.
20
61 Investigation powers
21
Provisions subject to investigation
22
(1) A provision is subject to investigation under Part 3 of the
23
Regulatory Powers Act if it is:
24
(a) a civil penalty provision of this Act; or
25
(b) an offence against the Crimes Act 1914 or the Criminal Code
26
that relates to this Act.
27
Note:
Part 3 of the Regulatory Powers Act creates a framework for
28
investigating whether a provision has been contravened. It includes
29
powers of entry, search and seizure.
30
Part 8 Enforcement of civil penalty provisions
Section 62
32
Australian Cannabis Agency Bill 2018
No. , 2018
Related provisions, authorised applicant, authorised person,
1
issuing officer, relevant chief executive and relevant court
2
(2) For the purposes of Part 3 of the Regulatory Powers Act, as it
3
applies in relation to evidential material that relates to a provision
4
mentioned in subsection (1):
5
(a) the provisions of Part 2 of this Act are related to that
6
evidential material; and
7
(b) an authorised officer is an authorised applicant; and
8
(c) an authorised officer is an authorised person; and
9
(d) a magistrate is an issuing officer; and
10
(e) the CEO is the relevant chief executive; and
11
(f) the Federal Circuit Court of Australia and the Federal Court
12
of Australia are the relevant courts.
13
(3) The relevant chief executive may, in writing, delegate the powers
14
and functions mentioned in subsection (4) to an authorised person.
15
(4) The powers and functions that may be delegated are:
16
(a) powers under Part 3 of the Regulatory Powers Act in relation
17
to evidential material that relates to a provision mentioned in
18
subsection (1); and
19
(b) powers and functions under the Regulatory Powers Act that
20
are incidental to a power mentioned in paragraph (a).
21
(5) A person exercising powers or performing functions under a
22
delegation under subsection (3) must comply with any directions of
23
the relevant chief executive.
24
62 Civil penalty provisions
25
Enforceable civil penalty provisions
26
(1) Each civil penalty provision of this Act is enforceable under Part 7
27
of the Regulatory Powers Act.
28
Note:
Part 4 of the Regulatory Powers Act allows a civil penalty provision to
29
be enforced by obtaining an order for a person to pay a pecuniary
30
penalty for the contravention of the provision.
31
Enforcement of civil penalty provisions Part 8
Section 63
No. , 2018
Australian Cannabis Agency Bill 2018
33
Authorised applicant
1
(2) For the purposes of Part 4 of the Regulatory Powers Act, the CEO
2
is an authorised applicant in relation to the civil penalty provisions
3
of this Act.
4
Relevant court
5
(3) For the purposes of Part 4 of the Regulatory Powers Act, each of
6
the following courts is a relevant court in relation to the civil
7
penalty provisions of this Act:
8
(a) the Federal Circuit Court of Australia;
9
(b) the Federal Court of Australia.
10
63 Infringement notices
11
Provisions subject to an infringement notice
12
(1) A civil penalty provision of this Act is subject to an infringement
13
notice under Part 5 of the Regulatory Powers Act.
14
Note:
Part 5 of the Regulatory Powers Act creates a framework for using
15
infringement notices in relation to provisions.
16
Infringement officer
17
(2) For the purposes of Part 5 of the Regulatory Powers Act, an
18
authorised officer is an infringement officer in relation to the
19
provisions mentioned in subsection (1).
20
Relevant chief executive
21
(3) For the purposes of Part 5 of the Regulatory Powers Act, the CEO
22
is the relevant chief executive in relation to the provisions
23
mentioned in subsection (1).
24
(4) The relevant chief executive, in writing, delegate the powers and
25
functions mentioned in section 102 of the Regulatory Powers Act
26
to an infringement officer.
27
Part 8 Enforcement of civil penalty provisions
Section 64
34
Australian Cannabis Agency Bill 2018
No. , 2018
(5) A person exercising powers or performing functions under a
1
delegation under subsection (4) must comply with any directions of
2
the relevant chief executive.
3
64 Injunctions
4
Enforceable provisions
5
(1) The civil penalty provisions of this Act are enforceable under
6
Part 7 of the Regulatory Powers Act.
7
Note:
Part 7 of the Regulatory Powers Act creates a framework for using
8
injunctions to enforce provisions.
9
Authorised person
10
(2) For the purposes of Part 7 of the Regulatory Powers Act, the CEO
11
is an authorised person in relation to the provisions mentioned in
12
subsection (1).
13
Relevant court
14
(3) For the purposes of Part 7 of the Regulatory Powers Act, each of
15
the following courts is a relevant court in relation to the provisions
16
mentioned in subsection (1):
17
(a) the Federal Circuit Court of Australia;
18
(b) the Federal Court of Australia.
19
Consent injunctions
20
(4) A relevant court may grant an injunction under Part 7 of the
21
Regulatory Powers Act in relation to a provision mentioned in
22
subsection (1) by consent of all the parties to proceedings brought
23
under that Part, whether or not the court is satisfied that
24
section 121 of that Act applies.
25
Miscellaneous Part 9
Section 65
No. , 2018
Australian Cannabis Agency Bill 2018
35
Part 9--Miscellaneous
1
2
65 Review of decisions by Administrative Appeals Tribunal
3
(1) Applications may be made to the Administrative Appeals Tribunal
4
for review of decisions made by the Cannabis Agency under this
5
Act.
6
(2) In this section:
7
decision has the same meaning as in the Administrative Appeals
8
Tribunal Act 1975.
9
66 Rules
10
(1) The Minister may, by legislative instrument, make rules
11
prescribing matters:
12
(a) required or permitted by this Act to be prescribed by the
13
rules; or
14
(b) necessary or convenient to be prescribed for carrying out or
15
giving effect to this Act.
16
(2) To avoid doubt, the rules may not do the following:
17
(a) create an offence or civil penalty;
18
(b) provide powers of:
19
(i) arrest or detention; or
20
(ii) entry, search or seizure;
21
(c) impose a tax;
22
(d) set an amount to be appropriated from the Consolidated
23
Revenue Fund under an appropriation in this Act;
24
(e) directly amend the text of this Act.
25
67 Independent review
26
(1) The Board must cause an independent review into the operation of
27
this Act and the rules to be completed within 2 years after the
28
commencement of this section.
29
Part 9 Miscellaneous
Section 67
36
Australian Cannabis Agency Bill 2018
No. , 2018
Public consultation
1
(2) The review must make provision for public consultation.
2
Report
3
(3) The Board must:
4
(a) give the Minister a report of the review; and
5
(b) as soon as practicable after giving the report to the Minister,
6
publish the report on the Cannabis Agency's website.
7
(4) The Minister must cause copies of the report to be tabled in each
8
House of the Parliament within 15 sitting days of that House after
9
the review is completed.
10
Recommendations
11
(5) The report may set out recommendations to the Commonwealth
12
Government.
13
(6) If the report sets out one or more recommendations to the
14
Commonwealth Government, the report must set out the reasons
15
for those recommendations.
16
Government response to recommendations
17
(7) If the report sets out one or more recommendations to the
18
Commonwealth Government:
19
(a) as soon as practicable after receiving the report, the Minister
20
must cause to be prepared a statement setting out the
21
Commonwealth Government's response to each of the
22
recommendations; and
23
(b) within 6 months after receiving the report, the Minister must
24
cause copies of the statement to be tabled in each House of
25
the Parliament.
26