Cannabis Legalisation and Control Bill

DRAFT FOR CONSULTATION

STATUS OF THIS DOCUMENT

This is a current work-in-progress draft of the Cannabis Legalisation and Control Bill designed to indicate the likely framework and core legislative components of the Bill.

The Bill indicates (in italics) key areas yet to be developed.

Detailed policy and drafting work is still to be done—

  • to cover the matters identified in italics throughout the Bill;

  • to improve the current content of the Bill;

  • to carry out the usual legal and editorial quality assurance checks.

Hon Andrew Little

Cannabis Legalisation and Control Bill

Government Bill

Contents

1Title
2Commencement
3Purpose
4Overview
5Interpretation
6Transitional, savings, and related provisions
7Act binds the Crown
8Relationship between Act and other enactments
9Cannabis Regulatory Authority established
10Main objective of Authority
11Functions
12Authority to prepare and publish national plans
13Regular reports on national plan
14Cannabis Advisory Committee established
15Limits on growing cannabis for personal use
16Conditions limiting place where cannabis may be grown
17Person may have plants in public in course of moving
18Possession limit
19Purchase limit
20Minimum age
21Social sharing
22Restrictions on place of consumption
23Prohibition against selling or supplying cannabis to persons under 20 years of age
24Unlicensed sale or unauthorised supply of cannabis to person 20 years or older prohibited
25Supplying cannabis products by mail order or courier prohibited
26Importing cannabis prohibited
27Prohibition against unlicensed production from cannabis
28Purpose of Part
29Market allocation
30Controlled activities
31Application for licence
32Persons ineligible to be licensees
33Purpose of Part
34Control in relation to licensed activities
35Advertising cannabis products
36Exemptions from advertising prohibition for specified publications
37Exemptions from advertising prohibition for retailers
38Display of cannabis products in or from sales outlets, etc, generally prohibited
39Use of trade marks, etc, on goods other than cannabis products, or in relation to sponsored events
40Sponsoring activity involving use of trade mark, etc, of cannabis products
41Sponsoring activity involving exclusive supply arrangement
42Free distribution and rewards prohibited
43Arrangements conflicting with Act have no effect
44Advertisements concerning harms from cannabis use not affected
45Point-of-sale health information or warnings signs
46Sale of cannabis products with other products prohibited
47Prohibition against licensed cannabis retailer selling, supplying, etc, cannabis to persons under 20 years of age
48Messages and information required for cannabis products
49Cannabis use on consumption premises
50Cannabis retail premises
51Authority may set trading hours
52Premises must have signs displaying opening hours
53Licences to be displayed in premises
54Appointment of managers
55Manager to be on duty at all times and responsible for compliance
56Temporary manager
57Acting manager
58Notice of appointment, etc, of manager, temporary manager, or acting manager
59Meaning of impaired
60Sale or supply of cannabis to impaired or intoxicated people
61Allowing persons to become impaired or intoxicated
62Manager impaired or intoxicated while on duty
63Employee impaired or intoxicated while on duty
64Allowing impaired or intoxicated person on licensed premises
65Allowing disorderly conduct on licensed premises
66Authority to serve application on other regulatory authorities, etc
67Criteria for issue of licences
68Authority may refuse licence even if application not opposed
69Other discretionary conditions
70Different conditions may apply to different parts of premises
71Variation of conditions
72Licence expires when new licence issued for same premises
73Surrender of licence
74Temporary licence during repairs, etc
75Cannabis Appeals Authority [holding name only] established
76Who may appeal
77Appeals by way of rehearing
78Determination of appeal
79Effect of appeal
80Suspension of certain decisions of Authority to grant licence or manager’s certificate
81Appeal against decision of appeals authority on question of law
82Appeal on additional question of law
83Extension of time
84Authority to be notified of company name changes
85Authority may issue duplicate licence or certificate
86Annual testing for constituents
87Head of Authority may require further testing
88Returns and reports
89Regulations for standardised packaging (including messages and information)
90Application of sections 90 to 92
91Tracing and recall
92Regulations and notices relating to tracing and recall of cannabis and cannabis products
93Immediate container
94Cannabis plant: not budding or flowering
95Cannabis plant: container limit
96Cannabis plant seeds: immediate container
97Cannabis product labels
98Dried cannabis or fresh cannabis: discrete units
99Dried cannabis or fresh cannabis: not in discrete units
100Cannabis plants
101Cannabis plant seeds
102Application
103Powers of entry and inspection
104Requirement to give identifying information
105Search warrant
106Purposes for which powers may be used
107Duties of enforcement officers
108Offences in respect of enforcement officers
109Responsibility for enforcement: limitation period for commencing proceedings
110Infringement offences
111Sections 111 and 112 deleted
113Payment of infringement fees
114Options for cost recovery
115Restrictions on levies for recovering costs
116Failure to pay
117Levy orders
118Effect of order
119Contents of order
120Compliance audits for levy
121Power of auditors to require production of documents
122Orders are confirmable instruments
123Sharing of information between Authority, regulatory agencies, and overseas agencies
124Regulations
125Notices
126Review of Act

The Parliament of New Zealand enacts as follows:

1 Title

This Act is the Cannabis Legalisation and Control Bill.

2 Commencement

This Act comes into force on the day after the date on which it receives the Royal assent.

Part 1 Preliminary provisions

3 Purpose

The purpose of this Act is to regulate and control the cultivation, manufacture, use, and sale of cannabis in New Zealand, with the intent of reducing harms from cannabis use to individuals, families, whānau, and communities by—

(a)

exercising controls over the availability of cannabis in New Zealand and deterring the illegal supply of cannabis; and

(b)

raising public awareness of the health risks associated with cannabis use; and

(c)

protecting the health and wellbeing of New Zealanders, particularly young people, through restricting their access to cannabis and prohibiting inducements to use cannabis; and

(d)

improving access to health and social services, and other whānau supports, for those who require assistance to address issues associated with cannabis use; and

(e)

providing access to a legal and quality-controlled supply of cannabis for adults who choose to use cannabis; and

(f)

limiting the public visibility of, and exposure to, cannabis use in New Zealand; and

(g)

placing controls on the potency and content of licensed cannabis; and

(h)

providing for the limited growing of cannabis for personal use, within a regulated environment; and

(i)

ensuring that responses to contraventions of the Act are proportionate, encourage compliance, and incorporate a focus on reducing overall harms.

This part will acknowledge the impacts of cannabis related harm and establish that Maori interests are to be considered throughout the legal regime. It may include specific provisions relating to partnership, participation, and protection under the Treaty of Waitangi (te Tiriti o Waitangi).

4 Overview

This section will give readers a high-level view of what the Bill is about and how it is structured to provide them with an easy reference guide.

5 Interpretation

(1)

In this Act, unless the context otherwise requires,—

adult means a person aged 20 years or older

advisory committee means the Cannabis Advisory Committee established by section 14

alcohol has the same meaning as in section 5(1) of the Sale and Supply of Alcohol Act 2012

appeals authority means the Cannabis Appeals Authority [holding name only] established by section 75

Authority means the Cannabis Regulatory Authority [holding name only] established by section 9

cannabis accessory

(a)

means a thing, including rolling papers or wraps, holders, pipes, water pipes, bongs, and vaporizers, that is represented to be (or taken under subsection (2) as represented to be) used in the consumption of cannabis; but

(b)

does not include the container of a cannabis product that is in contact with cannabis, if that container is the only container of the cannabis product

Definition of cannabis

The Bill will include a definition of cannabis that distinguishes the recreational cannabis regime from the medicinal cannabis and hemp schemes.

Cannabis means any plant of the genus Cannabis, whether growing or not, and includes:

  • any part of a plant of that kind (including the phytocannabinoids produced by, or found in, the plant) regardless of whether that part has been processed or not; and

  • any substance or mixture of substances that contains, or has in it, any part of that plant; and

  • any substance that is identical to any phytocannabinoid produced by, or found in, a plant of that kind, regardless of how the substance was obtained; and

  • any derivative of that kind; and

  • a cannabis product (which is defined as being any product manufactured from, or containing, cannabis).

The definition excludes:

  • cannabis regulated under the medicinal and hemp schemes.

cannabis concentrate means any preparation of cannabis where the THC content has been concentrated through a process of chemical or physical alteration

cannabis licence means a licence issued under this Act

cannabis product means any product manufactured from or containing cannabis

cannabis product advertisement

(a)

means any words, whether written, printed, or spoken, including on film, video recording, or other medium, broadcast or telecast, and any pictorial representation, design, or device, used to encourage the use or notify the availability or promote the sale of any cannabis product or to promote cannabis consumption behaviour; and

(b)

includes—

(i)

any trade circular, any label, and any advertisement in any trade journal; and

(ii)

any depiction, in a film, video recording, telecast, or other visual medium, of a cannabis product or a cannabis product trade mark, where in return for that depiction any money is paid, or any valuable thing is given, whether to the maker or producer of that film, video recording, telecast, or visual medium or to any other person; and

(iii)

the use in any advertisement or promotion to the public of a cannabis product manufacturer’s company name where that name or any part of that name is used as, or is included in, a cannabis product trade mark; but

(c)

does not include an advertisement in relation to medicinal cannabis; and

(d)

advertise, in relation to a cannabis product, has a corresponding meaning

consume,—

(a)

in relation to cannabis, includes smoking it, ingesting it orally, applying it topically, or using it in any other manner; and

(b)

in section 59, has the same meaning in relation to any other substance

consumption premises means a premises in respect of which a person holds a consumption premises licence authorising that person to carry on the activities authorised under section 49

controlled activity has the meaning given in section 30

distribute includes administering, giving, transferring, transporting, sending, delivering, providing, or otherwise making available in any manner, whether directly or indirectly, and offering to distribute

enforcement officer means a person authorised by the head of the Authority in accordance with this Act to act in that capacity

equivalent, in relation to a specified weight of dried cannabis, means the equivalent specified in Schedule 4 for a cannabis product in non-dried form

infringement fee, in relation to an infringement offence, means the infringement fee specified in this Act or prescribed for the offence

infringement notice means a notice issued under section 110(1)(b)

infringement offence means—

(a)

an offence identified in this Act as an infringement offence:

(b)

an offence specified in regulations as an infringement offence

licence means a licence issued under this Act and that is in force

Minister means the Minister of the Crown who, under the authority of a warrant or with the authority of the Prime Minister, is responsible for the administration of this Act

plant means an entity with a singular root system (that is, 2 stalk mutant plants)

prescribed means prescribed by regulations made under this Act

public place has the same meaning as in section 2 of the Summary Offences Act 1981

standardised cannabis symbol means the symbol that must appear on the label of all cannabis products under this Act

THC means delta-9-tetrahydrocannabinol (the main psychoactive chemical in cannabis products)

THCA means delta-9-tetrahydrocannabinolic acid (a non-psychoactive chemical present in fresh, undried, cannabis plant material and some cannabis products and which may be converted to THC by processes such as drying and heating)

to smoke

(a)

means to smoke, hold, or otherwise have control over an ignited cannabis product or plant; and

(b)

includes to smoke, hold, or otherwise have control over an ignited product or thing whose customary use is or includes the inhalation from it of the smoke produced from its combustion or the combustion of any part of it; but

(c)

does not include to hold or have control over an ignited product or thing customarily used as incense.

trade mark includes any trade mark whether or not it is registered or registrable as such under the Trade Marks Act 2002; and also includes—

(a)

any brand name:

(b)

any company name, where that name is used for advertising or promotional purposes:

(c)

any name, word, or mark that so resembles any trade mark that it is likely to be taken as, or confused with, that trade mark.

(2)

For the purposes of the definition of cannabis accessory in subsection (1), a thing that is commonly used in the consumption of cannabis is taken to be represented as being for use in the consumption of cannabis if the thing is sold at the same point of sale as cannabis.

6 Transitional, savings, and related provisions

The transitional, savings, and related provisions (if any) set out in Schedule 1 have effect according to their terms.

7 Act binds the Crown

This Act binds the Crown.

8 Relationship between Act and other enactments

This section will also provide for the relationship between the Act and the provisions of other enactments, as may be necessary. Other enactments that may be affected include—

  • Biosecurity Act 1993:

  • Food Act 2014:

  • Hazardous Substances and New Organisms Act 1996:

  • Land Transport Act 1998:

  • Misuse of Drugs Act 1975:

  • Psychoactive Substances Act 2013:

  • Resource Management Act 1991:

  • Smoke-free Environments Act 1990.

Part 2 Key regulatory roles

Cannabis Regulatory Authority [holding name only]

This Part will set out the constitution of the Authority, including roles and responsibilities, and any principles against which the Authority will operate. It may specify the qualifications and attributes that members appointed to the Authority must have among them and who will be involved in the design and ongoing governance of the regime.

9 Cannabis Regulatory Authority established

This section establishes the Cannabis Regulatory Authority [holding name only].

10 Main objective of Authority

(1)

The main objective of the Authority is to oversee regulation of the supply and use of cannabis in New Zealand in a way that—

(a)

promotes the wellbeing of New Zealanders; and

(b)

reduces the multiple harms associated with cannabis use; and

(c)

lowers the overall use of cannabis over time.

(2)

When performing its functions under this Act, the Authority must act in a way that furthers this objective.

11 Functions

The Authority will co-operate with any other law enforcement, regulatory, or statutory agency to perform the following functions, including (without limitation):

(a)

licensing and authorising controlled activities in the cannabis supply chain; and

(b)

setting the criteria and conditions for licences and authorisations for controlled activities; and

(c)

setting limits on the allowable levels of THC and other substances in cannabis; and

(d)

monitoring and enforcing compliance with licence and authorisation conditions and criteria, including requirements for cannabis products to meet production, testing, and labelling standards, quality controls, and restrictions on the operations of retailers and consumption premises; and

(e)

administering appeals from decisions of the Authority and the appeals authority; and

(f)

administering and collecting excise taxes, levies, and fees charged as part of the cannabis regulatory regime; and

(g)

monitoring and enforcing compliance with legislation and regulations permitting the private (home-growing) of cannabis and provisions relating to the possession and use of cannabis; and

(h)

developing good practice guidelines for individuals who choose to grow cannabis at home in accordance with legislative and regulatory provisions; and

(i)

conducting (directly or indirectly) public education campaigns to—

(i)

raise public awareness of the harms associated with cannabis use and promote responsible use and help-seeking behaviours; and

(ii)

raise public awareness of the law under this Act governing cannabis use in New Zealand, including what activities the law permits, restricts, and prohibits, and the effects of not complying with the Act; and

(j)

collecting and analysing data and reporting on the dynamics of the supply and demand for, and use of, cannabis in New Zealand, to ensure the regulatory regime is meeting its objectives; and

(k)

promoting and supporting research focused on understanding and reporting on cannabis use in New Zealand and informing evidence-based approaches to preventative and harm-reduction activities.

12 Authority to prepare and publish national plans

(1)

The Authority must, not later than [time period to come] after the commencement of this Act, prepare and publish a national plan setting out how it will give effect to the objectives of the Act.

(2)

A further national plan must be prepared and published—

(a)

not later than [time period to come] after the statutory review of the operation of the Act under section 126; and

(b)

every 5 years after that.

(3)

The Authority must consult the advisory committee when developing the plan.

13 Regular reports on national plan

(1)

The Authority must—

(a)

deliver an annual report to the Minister on how it has implemented the national plan and with what outcomes:

(b)

publish a copy of each report on an Internet site maintained by, or on behalf of, the Authority.

(2)

The Authority must ensure that the report is approved by the advisory committee before it is delivered to the Minister.

Cannabis Advisory Committee

14 Cannabis Advisory Committee established

(1)

This section establishes the Cannabis Advisory Committee.

(2)

The function of the advisory committee is to provide advice to the Authority on the development of the national plan.

(3)

The advisory committee must comprise individuals with a range of expertise in relevant areas, including representation of Māori interests, and chief executives from the health, justice, and social sectors, together with the government agencies representing the interests of specific population groups.

Part 2A General provisions concerning cannabis

15 Limits on growing cannabis for personal use

(1)

Subject to subsection (2) and the requirements in section 16, a person aged 20 years or older may grow not more than 2 cannabis plants on a property or that part of a property in respect of which they have a qualifying legal interest.

(2)

Despite subsection (1), if 2 or more persons aged 20 years or older are part of the same household, the maximum number of cannabis plants that those persons may grow on a property or that part of a property in respect of which 1 or more of those persons has a qualifying legal interest is 4 (in aggregate).

(3)

For the purposes of subsections (1) and (2), a person has a qualifying legal interest in respect of a property or part of a property if they have a legal interest (whether as an owner, a lessee, a person with a licence to occupy, or otherwise) that includes a right to grow plants (not excluding cannabis plants) on that property for their personal use or enjoyment.

(4)

A person who—

(a)

contravenes subsection (1) by growing more than 2 cannabis plants or, as the case may be, subsection (2) by growing more than 4 cannabis plants; but

(b)

in either case, grows less than 10 plants on the relevant property or part of the property,—

commits an infringement offence.

(5)

A person who commits the infringement offence in subsection (4) is liable to—

(a)

an infringement fee of $500; or

(b)

a fine imposed by a court not exceeding $1,000.

(6)

A person who knowingly contravenes subsection (1) or (2) by growing 10 or more cannabis plants on the relevant property or part of the property, commits an offence and is liable on conviction to—

(a)

a term of imprisonment not exceeding 3 months; or

(b)

a fine not exceeding $2,000.

16 Conditions limiting place where cannabis may be grown

(1)

A cannabis plant may be grown under section 15 only if the plant is grown—

(a)

out of public sight; or

(b)

in an area that is not accessible from any public area.

(2)

In subsection (1)(b), public area means—

(a)

an area to which the public has unrestricted access:

(b)

an area used on a communal basis (for example, the grounds of a retirement village).

(3)

The Authority may issue a compliance order requiring a person who contravenes subsection (1) to do any specified thing for the purpose of preventing further non-compliance with that provision.

(4)

The Authority must specify a time within which the order must be complied with.

(5)

A person who breaches or fails to comply with a compliance order issued under this section commits an infringement offence and is liable to—

(a)

an infringement fee of $200; or

(b)

a fine imposed by a court not exceeding $500.

17 Person may have plants in public in course of moving

Section 16 does not prevent a person from having a cannabis plant in their possession in a public place or in public sight for the purposes, and in the course only, of transferring the plant from one place where it has been growing to another place where the person may lawfully, and intends to, grow it.

18 Possession limit

(1)

A person must not have more than 14 grams of dried cannabis (or its equivalent) in their possession in a public place.

(2)

However, subsection (1) does not apply to a person who has more than 14 grams of dried cannabis (or its equivalent) in their possession in a public place if it is being held for the purposes of transporting it from the person’s place of permanent residence to another place where they will permanently reside.

(3)

A person who contravenes subsection (1) commits an infringement offence and is liable to—

(a)

an infringement fee of $200; or

(b)

a fine imposed by a court not exceeding $500.

19 Purchase limit

(1)

A person may not purchase more than 14 grams of dried cannabis (or its equivalent) per day.

(2)

A person who contravenes this section commits an infringement offence and is liable to—

(a)

an infringement fee of $200; or

(b)

a fine imposed by a court not exceeding $500.

20 Minimum age

A person must be aged 20 years or older to purchase or possess cannabis.

This subsection will detail the approach to breaches of the purchase and possession limits by people under 20 years of age.

21 Social sharing

A person may gift or provide to, or share with, another person any form of cannabis (not including a cannabis product referred to in section 27(1)) if—

(a)

that other person is aged 20 years or older; and

(b)

the amount is not more than 14 grams of dried cannabis (or its equivalent); and

(c)

the person does not take that action for the purpose of either obtaining a material benefit or avoiding a material detriment.

22 Restrictions on place of consumption

(1)

A person must not consume cannabis in a public place or in a vehicle that is in a public place.

(2)

For the purposes of this section, a public place does not include a consumption premises.

(3)

A person who contravenes this section commits an infringement offence and is liable to—

(a)

an infringement fee of $200; or

(b)

a fine imposed by a court not exceeding $500.

23 Prohibition against selling or supplying cannabis to persons under 20 years of age

(1)

A person must not knowingly sell or supply cannabis to a person who is under the age of 20 years.

(2)

A person who contravenes subsection (2) commits an offence and is liable on conviction to—

(a)

imprisonment for a term not exceeding 4 years; and

(b)

in the case of a body corporate, a fine not exceeding $150,000.

(3)

This section does not apply to a person who is a licensed cannabis retailer (see section 47).

Further work is being done to determine how this offence would apply to a person who is under the age of 20 years.

24 Unlicensed sale or unauthorised supply of cannabis to person 20 years or older prohibited

(1)

A person must not knowingly sell or supply cannabis to another person aged 20 years or older unless they hold a licence authorising them to sell cannabis at retail.

(2)

Subsection (1) is subject to section 21 (social sharing).

(3)

A person who contravenes this section commits an offence and is liable on conviction to—

(a)

imprisonment for a term not exceeding 2 years; and

(b)

in the case of a body corporate, a fine not exceeding $100,000.

25 Supplying cannabis products by mail order or courier prohibited

(1)

A person must not supply cannabis to another person by mail or by courier delivery.

(2)

A person who contravenes this section commits an infringement offence and is liable to—

(a)

an infringement fee of $500; or

(b)

a fine imposed by a court not exceeding $500.

26 Importing cannabis prohibited

(1)

A person must not import cannabis unless they hold a licence to do so.

Offence of importing more than 14 grams

(2)

A person who knowingly imports more than 14 grams of dried cannabis (or its equivalent) without a licence commits an offence and is liable on conviction to,—

(a)

in the case of an individual,—

(i)

a term of imprisonment not exceeding 2 years; or

(ii)

a fine not exceeding $10,000; and

(b)

in the case of a body corporate, a fine not exceeding $50,000.

Infringement offence of importing 14 grams or less

(3)

A person who imports 14 grams or less of dried cannabis (or its equivalent) without a licence commits an infringement offence and is liable to—

(a)

an infringement fee of 200; or

(b)

a fine imposed by a court not exceeding $500.

27 Prohibition against unlicensed production from cannabis

(1)

A person must not use a production method to extract resins from cannabis or to produce cannabis concentrates unless they have a licence authorising them to do so.

(2)

Subsection (1) does not preclude a person from making cannabis-infused products.

(3)

A person who knowingly contravenes subsection (1) commits an offence and is liable on conviction to,—

(a)

in the case of an individual,—

(i)

a term of imprisonment not exceeding 2 years; or

(ii)

a fine not exceeding $10,000:

(b)

in the case of a body corporate, a fine not exceeding $50,000.

Part 4 Regulated system

28 Purpose of Part

The purpose of this Part is to contribute to harm reduction, including the harm caused by illicit supply, by establishing a regime to control the supply of cannabis in New Zealand by—

(a)

establishing a licensing regime for the regulated, commercial supply of cannabis, cannabis products, and related accessories:

(b)

prioritising social equity outcomes through decisions on market allocation and authorisation requirements:

(c)

setting and maintaining quality and safety standards for the licensed supply of cannabis, cannabis products, and related accessories:

(d)

controlling the potency and content of licensed cannabis and cannabis products available for use:

(e)

promoting, as far as possible, equitable access to a stable supply of licensed cannabis and cannabis products available for purchase in New Zealand:

(f)

ensuring that the retail prices of licensed cannabis and cannabis products reflect a balance between the harm reduction objectives that seek to lower the overall use of cannabis and, at the same time, drawing people away from the illicit cannabis market:

(g)

supporting people to make informed decisions when purchasing cannabis and cannabis products and to understand the risks of use:

(h)

limiting the marketing, advertising, and promotion of cannabis, cannabis products, and accessories:

(i)

ensuring that the proceeds of cannabis sales contribute to the formal economy and are taxed appropriately.

Subpart 1—Market allocation

29 Market allocation

This Part will detail the approach to market allocation. The total amount of cannabis grown under licence will be limited to a level that is adequate for meeting current demand and will be able to be reduced over time. This approach seeks to balance the harm reduction imperative with the need to ensure access to a legal source of cannabis.

The mechanisms for market allocation will be in line with the purpose of the licensing regime [in section 28], including prioritising social equity outcomes.

Subpart 2—Controlled activities

30 Controlled activities

(1)

The following activities are controlled activities under this Act:

(a)

importing cannabis plant seeds:

(b)

cultivating and manufacturing cannabis and cannabis products:

(c)

the production and processing of cannabis and cannabis products:

(d)

analytical testing of cannabis and cannabis products:

(e)

wholesaling cannabis and cannabis products:

(f)

retailing cannabis and cannabis products:

(g)

operating cannabis consumption premises:

(h)

transporting cannabis and cannabis products:

(i)

destruction of cannabis, cannabis products, and fresh cannabis:

(j)

conducting research on cannabis, cannabis products, and fresh cannabis.

(2)

A person may conduct a controlled activity only if they hold the licence or other authorisation required for the activity under this Act.

(3)

A person may not hold a licence to cultivate cannabis at the same time as they hold a licence to retail cannabis.

Applications for licences

31 Application for licence

(1)

A person who is not prohibited under section 32 may apply for a licence to carry out one or more controlled activities.

(2)

Subsection (1) is subject to section 30(3).

(3)

An application must—

(a)

be made to the Authority in a form or manner approved by the Authority; and

(b)

be accompanied by—

(i)

any particulars, information, documents, or other material required by the Authority and prescribed in the regulations; and

(ii)

the prescribed fee.

32 Persons ineligible to be licensees

The persons described in Schedule 2 are ineligible to be licensees under this Act.

Subpart 2—Controls in relation to licensed activities

Cannabis harm, public health and safety

Part 5 Control of cannabis products

33 Purpose of Part

This Part will—

(a)

limit the public visibility of and exposure to cannabis, particularly in relation to young people, by—

(i)

imposing controls on the marketing, advertising, or promotion of cannabis and its association through sponsorships with other products and events; and

(ii)

requiring the standardised packaging (excluding messages and information) of cannabis and cannabis products; and

(b)

raise public awareness of the harms associated with cannabis use by requiring health messages and warnings to be displayed on, or included with, packages containing cannabis products; and

(c)

reduce the harmful effects of cannabis on the health of users, in particular from cannabis smoking, by monitoring and regulating the presence of harmful substances.

34 Control in relation to licensed activities

Sections under this heading will provide for the following:

(1)

Powers for the regulator to determine maximum limits on THC and other substances in cannabis products. The limits will be set in regulations to effectively control the potency of cannabis and cannabis products.

(2)

Alcohol and tobacco (within the meaning of the Smoke-free Environments Act 1990) must not be sold in any premises where cannabis is sold or consumed.

(3)

A cannabis retail premises must not sell food (within the meaning of the Food Act 2014) unless it also holds a consumption premises licence.

(4)

No person may sell a cannabis accessory unless they are authorised by a licence.

(5)

The purpose of consumption premises is to offer a safe space for a person to consume cannabis.

(6)

A person operating a consumption premises has the host responsibilities prescribed by regulations.

(7)

Restrictions on hours of operation – a cannabis retailer or person operating a consumption premises must not operate their premises outside the permitted hours.

(8)

Restrictions on employment – a person must be 20 years or older to be employed in retail premises.

(9)

Advertising – advertising cannabis for sale is prohibited.

(10)

Production standards – any cannabis produced for sale must meet the prescribed production standards.

(11)

Record keeping and reporting requirements – a person who has a licence or other authorisation for any controlled activity must keep the prescribed records.

35 Advertising cannabis products

(1)

No person may, unless authorised by section 36 or 37, publish in New Zealand, or arrange for any other person to publish in New Zealand, a cannabis product advertisement.

(2)

A notice or sign must be treated as a cannabis product advertisement if the notice or sign—

(a)

communicates information that is or includes cannabis product health information or warnings, cannabis product purchase age information or warnings, or both; and

(b)

is displayed inside or at the outside of the place of business of a person who offers cannabis products for sale (whether by retail or wholesale); and

(c)

is not required or permitted by this Act, regulations under this Act, or both.

(3)

A message must be treated as a cannabis product advertisement if the message—

(a)

communicates information that is or includes cannabis product health information or warnings, cannabis product purchase age information or warnings, or both; and

(b)

is not required or permitted by this Act, regulations under this Act, or both.

(4)

Subsections (2) and (3) do not limit the generality of subsection (1) or the definition of cannabis product advertisement in section 5(3).

36 Exemptions from advertising prohibition for specified publications

Nothing in section 35 applies to any of the following:

(a)

a price list given to retailers of cannabis products if the price list includes the health messages required by or under this Part:

(b)

an advertisement included in any book, magazine, or newspaper printed outside New Zealand, or in any radio or television transmission originating outside New Zealand, or in any film or video recording made outside New Zealand, unless—

(i)

the main purpose of the book, magazine, newspaper, transmission, film, or video recording is the promotion of the use of cannabis products; or

(ii)

the book, magazine, newspaper, film, or video recording is intended for sale, distribution, or exhibition primarily in New Zealand; or

(iii)

in the case of an advertisement in any radio or television transmission, the advertisement is targeted primarily at a New Zealand audience:

(c)

the publication by a cannabis products manufacturer of a cannabis product advertisement in a magazine that is intended for distribution only to employees of the manufacturer:

(d)

the exhibition, in any museum or art gallery, of any work or artefact:

(e)

the dissemination, broadcasting, or exhibition of any film, video or sound recording where—

(i)

that film, video recording, or sound recording was made before [to come]; and

(ii)

the cannabis product advertisement included in that film, video recording, or sound recording is in the form of a reference to, or a depiction of, a cannabis product trade mark that is only an incidental part of that film, video recording, or sound recording.

37 Exemptions from advertising prohibition for retailers

A retailer of cannabis products may do all or any of the following things:

(a)

provide, inside that retailer’s place of business and on a request (however expressed) made for the purpose by a person who has asked to purchase a specified, or any available, cannabis product (in any medium but only in the form of printed, written, or spoken words) information that—

(i)

does no more than identify the cannabis products that are available for purchase in that place and indicate their price; and

(ii)

complies with the regulations:

(b)

display inside that retailer’s place of business any notice for the public that—

(i)

does no more than indicate, using only printed or written words, the fact that, and the location or locations where, cannabis products in general are available for purchase in that place; and

(ii)

complies with the regulations:

(c)

display the retailer’s name or trade name at the outside of the retailer’s place of business so long as the name is not and does not include either or both of the following:

(i)

any word or expression signifying that any cannabis product is available in that place for purchase:

(ii)

the trade mark of a cannabis product or the company name of a cannabis product manufacturer.

38 Display of cannabis products in or from sales outlets, etc, generally prohibited

(1)

A person who offers cannabis products for sale (whether by retail or wholesale) must not allow any part of a cannabis product or cannabis package at the outside of or inside the person’s place of business to be for any reason visible—

(a)

from outside the place of business; or

(b)

from an area inside the place of business to which members of the public are allowed access.

(2)

Subsection (1) does not, however, apply to a cannabis product or cannabis package that is visible only to the extent that is necessary for it to be delivered—

(a)

to the person at the place of business; or

(b)

to its purchaser at or from the place of business.

(3)

A cannabis product or cannabis package must be treated as being visible only to the extent that is authorised under subsection (2)(a) if it is delivered—

(a)

to a person and at, or from, a place specified in that paragraph; and

(b)

using a form of visible delivery prescribed by any relevant acceptable forms of visible delivery prescribed in the regulations.

(4)

Subsections (1) and (2) do not apply to a cannabis product or cannabis package that is visible in a way that complies with any relevant temporary transitional exemption regulations.

39 Use of trade marks, etc, on goods other than cannabis products, or in relation to sponsored events

(1)

In this section, non-cannabis article means an article that is not—

(a)

a cannabis product; or

(b)

a package or container in which a cannabis product is sold or shipped.

(2)

No person may use, other than in a private capacity, a cannabis product trade mark—

(a)

on any non-cannabis article; or

(b)

for the purpose of advertising or identifying to the public—

(i)

any non-cannabis article; or

(ii)

any service, activity, or event; or

(iii)

any scholarship, fellowship, or other educational benefit,—

even though that person would, but for this Act, be entitled to use the trade mark on that article or for that purpose.

(3)

If a trade mark includes the company name, or part of the company name, of a manufacturer, an importer, or a distributor in New Zealand of any cannabis product, no person may, other than in a private capacity, use that company name for the purpose of advertising or identifying to the public—

(a)

any non-cannabis article; or

(b)

any service, activity, or event; or

(c)

any scholarship, fellowship, or other educational benefit,—

even though that person would, but for this Act, be entitled to use that trade mark or company name for that purpose.

(4)

No person may distribute, sell, or offer or expose for sale any non-cannabis article that bears a trade mark of a cannabis product that is sold in New Zealand.

(5)

Nothing in subsections (1) to (3) applies to a trade mark or company name that, during the year ending with [to come], was applied to cannabis products and other articles sold at retail in New Zealand if the estimated retail value of those other articles sold during that year exceeded one-quarter of the estimated retail value of those cannabis products sold during that year.

(6)

Nothing in subsections (1) to (3) applies to the use, by any person (other than a manufacturer, an importer, a distributor, or a retailer of any cannabis products, or a person acting on behalf of any such manufacturer, importer, distributor, or retailer) of a trade mark or company name for any purpose (other than for application to, or for use in connection with, cannabis products or cannabis accessories) if the trade mark or company name—

(a)

was in use in New Zealand for that purpose before [to come]; or

(b)

was in use for that purpose at any time before that trade mark or company name was first used, in New Zealand, for application to, or in connection with, any cannabis product or cannabis accessory.

40 Sponsoring activity involving use of trade mark, etc, of cannabis products

(1)

No person who is a manufacturer, an importer, a distributor, or a retailer of cannabis products may sponsor (within the meaning of subsection (2)) an organised activity that is to take place, is taking place, or has taken place, in whole or in part, in New Zealand, and that involves the use, in the name of that activity, or on or through any thing other than a cannabis product, of all or any of the following:

(a)

a cannabis product trade mark:

(b)

all or any part of a company name included in a cannabis product trade mark:

(c)

1 or more words, logos, colours, shapes, sounds, smells, or other elements of a cannabis product trade mark that, as those 1 or more elements are used in the name, or on or through the thing, are likely to cause a person exposed to the name or thing to believe that the 1 or more elements are used in, on, or through it only or mainly for the purpose of advertising the product.

(2)

A person sponsors an organised activity for the purposes of subsection (1) if, and only if, the person does all or any of the following:

(a)

organises or promotes, before the activity is to take place, or during the time that it takes place, some or all of the activity:

(b)

makes, before the activity is to take place, or during or after the time that it takes place, any financial or non-financial contribution towards some or all of the activity:

(c)

makes, before the activity is to take place, or during or after the time that it takes place, any financial or non-financial contribution to any other person in respect of the organisation or promotion by that other person of, or the participation, by that other person, in, some or all of the activity.

41 Sponsoring activity involving exclusive supply arrangement

(1)

No person who holds a cannabis licence may sponsor (within the meaning of section 40(2)) an organised activity that is to take place, is taking place, or has taken place, in whole or in part, in New Zealand, and that involves an arrangement for the person to be the only person supplying cannabis products at, or for the purposes of, some or all of the event.

(2)

The arrangement may be a contract, or a legally binding or other agreement, undertaking, or understanding.

(3)

Subsection (2) does not limit subsection (1).

(4)

This section operates in parallel with (that is, is not subject to, and does not override) the Commerce Act 1986.

42 Free distribution and rewards prohibited

(1)

No manufacturer, distributor, importer, or retailer of cannabis products may, free of charge or at a reduced charge,—

(a)

distribute any cannabis product; or

(b)

supply any cannabis product to any person for subsequent distribution; or

(c)

in the case of a retailer, supply any cannabis product to any person for the purpose of that retailer’s business.

(2)

For the purposes of subsection (1), a cannabis product is distributed or supplied at a reduced charge

(a)

if the charge for the product itself is reduced; or

(b)

if—

(i)

the product is distributed or supplied at a charge that is not or purports not to be reduced; but

(ii)

some other item is supplied, free or at a reduced charge, together with the product.

(3)

No person may—

(a)

offer any gift or cash rebate, or the right to participate in any contest, lottery, or game, to the purchaser of a cannabis product in consideration for the purchase of that product, or to any person in consideration for the provision of evidence of such a purchase; or

(b)

offer, to any retailer, any gift or cash rebate, or the right to participate in any contest, lottery, or game, as an inducement or reward in relation to—

(i)

the purchase or sale of cannabis products by that retailer; or

(ii)

the advertising of cannabis products inside that retailer’s place of business; or

(iii)

the location of cannabis products in a particular part of that retailer’s place of business.

(4)

Nothing in subsection (2) applies in respect of any payment or reward to any person who purchases or attempts to purchase any cannabis product—

(a)

with the authority of the head of the Authority or of some other person authorised for that purpose by the head of the Authority; and

(b)

for the purpose of monitoring compliance with the provisions of this Part.

(5)

A person who contravenes this section commits and offence and is liable to [to come].

43 Arrangements conflicting with Act have no effect

(1)

A term has no effect if—

(a)

it is expressed or implied in an arrangement of any kind in any form; and

(b)

compliance with it would limit or prevent compliance with this Act.

(2)

The arrangement may be a contract, or a legally binding or other agreement, undertaking, or understanding.

(3)

Subsection (2) does not limit subsection (1).

(4)

A person who is, or is claiming through or under, a party to the arrangement may (regardless of whether it is a contract) seek relief under subpart 5 of Part 2 of the Contract and Commercial Law Act 2017 (which applies with all necessary modifications) as if compliance with the term were performance, in a way that gives rise to illegality, of a provision of a contract.

44 Advertisements concerning harms from cannabis use not affected

Nothing in sections 35 to 43 applies to a person who uses a sign, symbol, trade mark or text for the purposes of advertising services to assist in managing health-related harms.

45 Point-of-sale health information or warnings signs

(1)

A person who offers a cannabis product for sale (by retail or wholesale) must, at all times when prescribed requirements for point-of-sale health information or warnings signs applying to that person are in force under this Act, display clearly at each point of sale outside of or inside the person’s place of business a sign for the public that does no more than—

(a)

communicate the message that consuming cannabis is harmful; and

(b)

complies with the prescribed requirements.

(2)

A person who contravenes this section commits an offence and is liable on conviction to a fine of not more than [to come].

46 Sale of cannabis products with other products prohibited

(1)

This subsection applies to a cannabis product if it is—

(a)

packed together with a product that is not a cannabis product; or

(b)

distributed or supplied, together with a product that is not a cannabis product, at a single price.

(2)

No manufacturer, distributor, importer, or retailer of cannabis products may—

(a)

distribute a cannabis product to which subsection (1) applies; or

(b)

supply a cannabis product to which subsection (1) applies to another person for later distribution; or

(c)

in the case of a retailer, supply a cannabis product to which subsection (1) applies to another person for the purpose of that retailer’s business.

(3)

A person who contravenes this section commits an offence and is liable to a fine of not more than $[to come].

47 Prohibition against licensed cannabis retailer selling, supplying, etc, cannabis to persons under 20 years of age

(1)

A person who holds a licence to sell cannabis at retail must not knowingly—

(a)

sell cannabis or a cannabis product to a person who is under the age of 20 years; or

(b)

having sold cannabis or a cannabis product to a person of any age, deliver it or arrange for it to be delivered to a person who is under the age of 20 years; or

(c)

supply cannabis or a cannabis product to a person who is under the age of 20 years; or

(d)

supply cannabis or a cannabis product to a person with the intention that it be supplied (directly or indirectly) to a person who is under the age of 20 years.

(2)

A person who contravenes subsection (1) commits an offence and is liable on conviction to,—

(a)

in the case of an individual, [to come]; and

(b)

in the case of a body corporate, a fine not exceeding [to come].

48 Messages and information required for cannabis products

(1)

No manufacturer, importer, distributor, or retailer may sell or offer for sale a cannabis product unless—

(a)

the package containing it displays, in accordance with regulations under this Part, as many of the following things as the regulations require:

(i)

a message relating to—

(A)

the harmful health, social, cultural, or economic effects, or other harmful effects, of using the product:

(B)

the beneficial effects of stopping the use of the product or of not using the product:

(ii)

a list of the harmful constituents, and their respective quantities, present in the product:

(iii)

a list of the constituents, and their respective quantities, present in the product:

(iv)

whether as part of or in addition to any message about effects, a photograph or picture relating to—

(A)

the harmful health, social, cultural, or economic effects, or other harmful effects, of using the product:

(B)

the beneficial effects of stopping the use of the product or of not using the product; and

(b)

if required by the regulations, the package containing the product contains a leaflet with as much of the following information as the regulations require:

(i)

information relating to—

(A)

the harmful health, social, cultural, or economic effects, or other harmful effects, of using the product:

(B)

the beneficial effects of stopping the use of the product or of not using the product; and

(ii)

a list of the harmful constituents, and their respective quantities, present in the product.

(2)

In subsection (1), harmful constituent means a substance declared by the regulations to be a harmful constituent for the purposes of that subsection.

Part 6 Provisions relating to retail and consumption premises: premises operations and licence processes

Premises operations—general provisions

49 Cannabis use on consumption premises

On any premises for which a consumption licence alone is held, the licensee may—

(a)

sell and supply non-cannabis foods and non-alcoholic beverages; and

(b)

let people consume cannabis and cannabis products there.

50 Cannabis retail premises

On any premises for which a retail licence alone is held, the licensee may sell cannabis, cannabis products, and cannabis accessories.

This part will state to what extent (if at all) a person can be licensed to operate a consumption premises and also be licensed to operate a retail premises.

51 Authority may set trading hours

The Authority may set maximum and minimum trading hours for consumption and retail premises.

52 Premises must have signs displaying opening hours

The holder of a consumption premises licence or a retail premises licence must ensure that for each principal entrance to the premises there is displayed at all times a sign attached to the inside or outside of the premises, so as to be easily read by people immediately outside the entrance, stating the ordinary hours of business during which the premises are open for the sale of cannabis products or, as the case may be, the consumption of cannabis.

53 Licences to be displayed in premises

The holder of a consumption premises licence or a retail premises licence must ensure that at all times a copy of the licence, together with a statement of all conditions subject to which it is issued, is displayed—

(a)

attached to the inside of the premises concerned; and

(b)

so as to be easily read by people entering each principal entrance.

Responsibilities of managers

54 Appointment of managers

Every holder of a consumption premises licence or a retail premises licence must appoint a manager or managers in accordance with this Part.

55 Manager to be on duty at all times and responsible for compliance

(1)

A manager must be on duty on the premises at all times when cannabis is being sold or supplied to the public.

(2)

A manager on duty is responsible for—

(a)

the compliance with and enforcement of—

(i)

the provisions of this Act; and

(ii)

the conditions of the licence for the premises; and

(b)

the conduct of the premises with the aim of contributing to the reduction of cannabis-related harm.

(3)

At all times while the manager is on duty,—

(a)

the full name of the manager must be prominently displayed inside the premises so as to be easily read by people using the premises; and

(b)

the person named as manager at any time is to be treated for the purposes of this Act as the manager at that time.

(4)

At all times when cannabis is being sold or supplied on the premises, the licensee must take all reasonable steps to enable the manager to comply with this section.

56 Temporary manager

(1)

In any case where a manager is ill or is absent for any reason, or is dismissed, or resigns, the licensee may appoint as a temporary manager a person who is not then the holder of an authorisation.

(2)

The appointee must, within 2 working days after the appointment, apply for an authorisation; and, if an application is made, the temporary manager must, from the time of the appointment until the application is determined, be deemed for the purposes of this Act to be the holder of an authorisation.

(3)

If the appointee does not apply for an authorisation within that period of 2 working days, or if the application is refused, the licensee must cease to employ the appointee as a manager.

57 Acting manager

(1)

Despite any other provision of this Act, a licensee may appoint an acting manager—

(a)

for any period not exceeding 3 weeks at any one time where a manager is unable to act because of illness or absence; and

(b)

for periods not exceeding in the aggregate 6 weeks in each period of 12 months to enable a manager to have a vacation or take annual leave.

(2)

Every person appointed as an acting manager in accordance with this section must, while the appointment continues, be deemed for the purposes of this Act to be the holder of a manager’s certificate, and it is not necessary for that person to apply for or hold a manager’s certificate.

58 Notice of appointment, etc, of manager, temporary manager, or acting manager

(1)

A licensee must notify the Authority of the appointment of any manager, temporary manager, or acting manager.

(2)

The Authority may, within 5 working days after receiving a notice of the appointment of any temporary manager or acting manager, notify the licensee that it does not approve the appointment.

(3)

On receiving notice under subsection (2), the licensee must terminate the appointment with effect from a date not later than 5 working days after the date of the notice.

Controls on consumption and retail premises’ operations

59 Meaning of impaired

A person is impaired within the meaning of sections 60 to 64 if that person’s mental abilities, physical capabilities, or both, are observably reduced due to the psychoactive constituents of cannabis or to any other substance consumed by the person.

60 Sale or supply of cannabis to impaired or intoxicated people

(1)

The licensee or a manager of any licensed premises who sells or supplies cannabis to an impaired or intoxicated person commits an offence.

(2)

A person who commits an offence against subsection (1) is liable on conviction,—

(a)

in the case of a licensee, to either or both of the following:

(i)

a fine of not more than $[to come]:

(ii)

the suspension of the licensee’s licence for a period of not more than 7 days:

(b)

in the case of a manager, a fine of not more than $[to come].

(3)

A person who is not a licensee or manager of licensed premises and who sells or supplies a cannabis product to an impaired or intoxicated person commits an offence.

(4)

A person who commits an offence against subsection (3) is liable on conviction to a fine of not more than $[to come].

(5)

Subsection (3) applies irrespective of any liability that may attach to the licensee or any manager in respect of the same offence.

61 Allowing persons to become impaired or intoxicated

(1)

The licensee or a manager of any licensed premises who allows any person to become impaired or intoxicated on the premises commits an offence.

(2)

A person who commits an offence against subsection (1) is liable on conviction,—

(a)

in the case of a licensee, to either or both of the following:

(i)

a fine of not more than $[to come]:

(ii)

the suspension of the licensee’s licence for a period of not more than 7 days:

(b)

in the case of a manager, a fine of not more than $[to come].

62 Manager impaired or intoxicated while on duty

(1)

A manager of licensed premises who is impaired or intoxicated while on duty on the premises commits an offence.

(2)

A person who commits an offence against subsection (1) is liable on conviction to a fine of not more than $[to come].

63 Employee impaired or intoxicated while on duty

(1)

An employee of the licensee of any licensed premises who is impaired or intoxicated while on duty on the premises commits an offence.

(2)

A person who commits an offence against subsection (1) is liable on conviction to a fine of not more than $[to come].

64 Allowing impaired or intoxicated person on licensed premises

(1)

The licensee or a manager of any licensed premises who allows an impaired or intoxicated person to be or remain on the licensed premises commits an offence.

(2)

A person who commits an offence against subsection (1) is liable on conviction to a fine of not more than $[to come].

(3)

It is a defence to a charge under subsection (1) if the defendant satisfies the court that, as soon as the defendant or any employee of the licensee became aware of the situation, reasonable steps were taken in respect of the impaired or intoxicated person concerned, either—

(a)

to take the person to a place of safety on the licensed premises; or

(b)

to remove the person from the licensed premises.

65 Allowing disorderly conduct on licensed premises

(1)

The licensee or a manager of any licensed premises who allows any violent, quarrelsome, insulting, or disorderly conduct to take place on the licensed premises commits an offence.

(2)

A person who commits an offence against subsection (1) is liable on conviction to a fine of not more than $[to come].

(3)

It is a defence to a charge under subsection (1) if the defendant satisfies the court that, as soon as the defendant or any employee of the licensee became aware of the situation, reasonable steps were taken in respect of each person involved in the conduct concerned, either—

(a)

to take the person to a place of safety on the licensed premises; or

(b)

to remove the person from the licensed premises.

Application processes and criteria for issuing of retailing licences and licences to operate consumption premises

The following sections will describe the nature of a licence, including the standard duration of a licence before needing to be reviewed, and that it is not a transferable property right. They will also set out the powers of the authority to review and refuse licence applications, and the circumstances in which they may do that.

66 Authority to serve application on other regulatory authorities, etc

On receiving an application for a licence, the Authority must—

(a)

serve a copy of the application on every prescribed regulatory authority or other entity; and

(b)

ensure the application is dealt with in accordance with the prescribed procedure.

67 Criteria for issue of licences

(1)

In deciding whether to issue a licence, the Authority must have regard to the following matters:

(a)

the purpose of this Act:

(b)

the suitability of the applicant:

(c)

the principles under subpart 3 of Part 4 [market allocation — to come]:

(d)

the days on which and the hours during which the applicant proposes to sell cannabis:

(e)

the design and layout of any proposed premises:

(f)

whether the amenity and good order of the locality would be likely to be reduced, to more than a minor extent, by the effects of the issue of the licence:

(g)

whether the amenity and good order of the locality are already so badly affected by the effects of the issue of existing licences that—

(i)

they would be unlikely to be reduced further (or would be likely to be reduced further to only a minor extent) by the effects of the issue of the licence; but

(ii)

it is nevertheless desirable not to issue any further licences:

(h)

whether the applicant has appropriate systems, staff, and training to comply with the law:

(i)

any matters dealt with in any report from a prescribed regulatory authority or other organisation.

Licensing decisions will be made by the Authority. However, this section will detail the interface between the Authority and the relevant local regulatory authorities and other organisations (for example, the fire service).

68 Authority may refuse licence even if application not opposed

The Authority may, having regard to any matter stated in section 67, refuse to issue a licence, even if no objection to the application was received from any prescribed regulatory authority or other organisation required to be notified of it.

69 Other discretionary conditions

(1)

The Authority may issue a licence subject to any reasonable conditions not inconsistent with this Act.

(2)

The generality of subsection (1) is not limited or affected by any other provision of this Act.

70 Different conditions may apply to different parts of premises

Any condition of a licence issued may—

(a)

apply differently to different parts of the premises:

(b)

apply differently to the same part of the premises at different times, on different days, or both.

71 Variation of conditions

(1)

The holder of a licence may at any time apply to the Authority to vary or cancel any condition of the licence.

(2)

The application must be made in the prescribed form and manner.

(3)

Sections 66 to 70 apply, with all necessary modifications to an application under this section.

72 Licence expires when new licence issued for same premises

A licence expires when another licence of the same kind is issued for the premises concerned.

73 Surrender of licence

(1)

The holder of a licence may at any time surrender it in the prescribed manner.

(2)

The licence ceases to have effect from the date on which it is surrendered.

(3)

The surrender of a licence does not affect the licensee’s liability—

(a)

to perform any obligation required to be performed by the licensee under this Act before the date on which the licence ceases to have effect; or

(b)

for any act done or default made before that date.

Temporary licences

74 Temporary licence during repairs, etc

(1)

The Authority may authorise a licensee to sell cannabis products or operate a consumption premises pursuant to the licence on or from premises other than the licensed premises concerned for any period it from time to time determines where—

(a)

the licensed premises are unfit for the sale of cannabis products or the consumption of cannabis (as the case may be) because of a fire, storm, earthquake, or other unforeseen event; or

(b)

the licensed premises are or will become unfit for the relevant purpose because of their repair, alteration, or rebuilding, or the building of additions to them; or

(c)

any other circumstances have arisen or will arise (in respect of the premises) that prevent or will prevent the sale of cannabis products or consumption of cannabis on those premises.

(2)

While an authority under subsection (1) is in force, this Act has effect as if—

(a)

the licensed premises concerned were not premises; and

(b)

the other premises were the premises to which the licence concerned relates.

Appeals

75 Cannabis Appeals Authority [holding name only] established

(1)

This section establishes the Cannabis Appeals Authority [holding name only].

(2)

The function of the appeals authority is to determine appeals against decisions of the Authority made under this Act.

(3)

The appeals authority must consist of 3 members

(4)

One member of the appeals authority must be a lawyer (as defined in section 6 of the Lawyers and Conveyancers Act 2006) of not less than 7 years’ legal experience.

(5)

In performing its functions or exercising its powers under this Act, the appeals authority must—

(a)

act independently; and

(b)

comply with the principles of natural justice.

76 Who may appeal

Any party to proceedings before the Authority who is dissatisfied with the decision or any part of the decision may appeal to the appeals authority against the decision or any part of the decision.

77 Appeals by way of rehearing

Every appeal is by way of rehearing.

78 Determination of appeal

On hearing an appeal, the appeals authority may confirm, modify, or reverse the decision under appeal.

79 Effect of appeal

(1)

This section applies to every decision other than a decision referred to in section 80.

(2)

A decision to which this section applies has effect during the period allowed for filing an appeal against the decision and, if an appeal is filed against the decision, also has effect while the appeal is pending.

(3)

However, the appeals authority may, on its own initiative or on an application made for the purpose, order that a decision to which this section applies is not to have effect while the appeal is pending.

(4)

Despite subsection (3), the appeals authority may not make an order under that subsection in relation to a decision made under section [to come] (which relates to the suspension of licences for non-compliance with public health or fire precaution requirements).

(5)

Where the appeals authority makes an order under subsection (3) in relation to a decision to refuse to renew, to suspend, or to cancel any licence or manager’s certificate, the licence or manager’s certificate must, if the appeal is not finally determined on or before the expiry of the licence or certificate, be deemed to be extended until the final determination of the appeal.

80 Suspension of certain decisions of Authority to grant licence or manager’s certificate

(1)

This section applies to every decision to grant an application for a licence or a manager’s certificate if—

(a)

an objection to the application has been filed and has not been withdrawn; or

(b)

a report has been submitted by an inspector, employee, volunteer, or contractor of Fire and Emergency New Zealand or a Medical Officer of Health recommending that the application be refused.

(2)

A decision to which this section applies has no effect during the period allowed for filing an appeal against the decision and, if an appeal is filed against the decision, also has no effect while the appeal is pending.

(3)

Where an appeal relates to a decision to which this section applies but is limited to 1 or more conditions that form part of the decision, the appeals authority may, subject to any conditions the appeals authority thinks fit to impose, order that the decision is to have effect while the appeal is pending.

(4)

An order under subsection (3) may only be made if the appeals authority is satisfied that all parties to the appeal agree to the order, including any conditions imposed by the appeals authority.

(5)

No appeal may be brought against a refusal to make an order under subsection (3).

Appeals to High Court

81 Appeal against decision of appeals authority on question of law

(1)

A party to proceedings before the appeals authority who is dissatisfied with a determination in the proceedings as being erroneous in point of law, may appeal to the High Court on the question of law concerned.

(2)

Subject to sections 79, 80, and 82, every appeal under this section must be dealt with in accordance with rules of court.

82 Appeal on additional question of law

Any party other than the appellant to an appeal under section 81 who wishes to contend at the hearing of the appeal that the determination appealed against is erroneous in point of law in relation to a question of law not set out in the notice of appeal may, within 20 working days after the date of the service on the party of a copy of the notice of appeal, lodge a notice to that effect with the Registrar of the High Court.

83 Extension of time

The High Court or a Judge of the High Court may, on the application of the appellant, or intending appellant, or any other party, extend any time prescribed or allowed under any of the provisions of sections [to come] for the lodging of any notice, application, or other document.

Miscellaneous provisions concerning licences

84 Authority to be notified of company name changes

(1)

If a company that holds a licence changes its name, it must notify the Authority of the change within 10 working days after the change.

(2)

If a company fails to comply with this section, every director of the company commits an offence and is liable on conviction to a fine not exceeding $[to come].

(3)

It is a defence to a director charged with an offence against this section if they prove that—

(a)

the company took all reasonable and proper steps to ensure that the section would be complied with; or

(b)

they took all reasonable and proper steps to ensure that the company complied with the section; or

(c)

in the circumstances, they could not reasonably have been expected to take steps to ensure that the company complied with the section.

85 Authority may issue duplicate licence or certificate

If the Authority is satisfied that any licence issued by the Authority has been lost or destroyed, the Authority may issue a duplicate licence or certificate to the holder.

Part 7 Physical security measures

This Part will detail the security requirements for different controlled activities.

Part 8 Production standards

This Part will detail the approach to standards of licensed cannabis production. It will include the key personnel required in production, requirements for building and equipment cleanliness, the complaint process and requirements, record keeping and reporting requirements, and the level of controls attached to different classes of licence.

Part 9 Testing

This Part will detail testing requirements for finished manufactured cannabis products and fresh cannabis prior to sale.

Including: pesticide and fumigant residues, heavy metals/toxic elements, microbial limits and the quantity of certain cannabinoids, including THC, THCA, CBD and CBDA.

Testing and reporting

86 Annual testing for constituents

(1)

This section applies to each product prescribed to be a cannabis product for the purposes of this section.

(2)

Every manufacturer and every importer of a product to which this section applies must, annually, conduct either or both of the following tests:

(a)

a test for the constituents of each brand of the product sold by the manufacturer or importer, and the respective quantities of those constituents:

(b)

if the product is intended to be smoked, a test for the constituents of the smoke of each brand of the product sold by the manufacturer or importer, and the respective quantities of those constituents.

(3)

In this section, product means anything that is—

(a)

a cannabis product of any kind; or

(b)

cannabis products generally.

(4)

The tests must be conducted at the time and in the manner prescribed (which, in the case of tests under subsection (2)(b) may include a requirement for each variant of the brand to be tested separately).

87 Head of Authority may require further testing

(1)

In addition to the annual test or tests required by section 86, the head of the Authority may, by notice in writing to the manufacturer or importer of a product to which that section applies, require a further test or tests to be conducted.

(2)

The further test or tests must be conducted, in accordance with the regulations referred to in section 86,—

(a)

in a laboratory nominated by the head of the Authority; but

(b)

at the expense in all respects of the manufacturer or importer.

(3)

In any year, the head of the Authority must not require tests under this section in respect of more than 10% of the brands of products to which section 86 applies and sold by a particular manufacturer or importer.

88 Returns and reports

(1)

This subsection will outline requirements for cannabis licence holders to regularly report data to the Authority, providing information on matters related to cannabis production, manufacture and sales. The purpose is to assist the Authority in their data analysis and reporting functions.

(2)

The head of the Authority—

(a)

must take all practicable steps to ensure that the returns and reports received under subsection (1) are published on an Internet site maintained by or on behalf of the Authority; and

(b)

may publish or make publicly available all or any part of those returns or reports in any other way.

89 Regulations for standardised packaging (including messages and information)

(1)

The Governor-General may, by Order in Council, make regulations for all or any of the following purposes:

(a)

prescribing for the purposes of section [to come] requirements, or options permitted, for all or any aspects of the appearance of a cannabis product:

(b)

prescribing for the purposes of section [to come] the quantity or quantities in which a cannabis product must be packaged:

(c)

prescribing for the purposes of section [to come]—

(i)

the form, size, and content of messages and information to be displayed with, on, or in the package for a cannabis product:

(ii)

the photographs and pictures to be displayed as part of or in addition to messages about effects relating to a cannabis product:

(iii)

the circumstances and manner in which the messages, information, photographs, and pictures must be displayed:

(d)

prescribing for the purposes of section [to come] requirements, or options permitted, for the display of the brand or company name on the package for a cannabis product, including the circumstances and manner in which the name is to be displayed:

(e)

prescribing for the purposes of section [to come] requirements, or options permitted, for all or any other aspects of the appearance of the package for a cannabis product:

(f)

providing for any other related matters contemplated by this Act, necessary for its administration, or necessary for giving it full effect.

(2)

Regulations under subsection (1)(a) or (e) may (without limitation) do all or any of the following:

(a)

require a cannabis product, or the package for a cannabis , to be a prescribed size and shape:

(b)

prohibit a cannabis product, or the package for a cannabis product, from displaying any words or other marks unless they are permitted by section 00 [to come] or the regulations:

(c)

specify types of words or other marks that are permitted to be displayed on a cannabis product or the package for a cannabis product (for example, bar codes or marks used to record manufacturing information or to identify legitimate products or packages):

(d)

specify requirements for the display of the permitted words or marks, including the circumstances and manner in which the words or marks are to be displayed (for example, the typeface or font, size, colour, and position of the words or marks):

(e)

prohibit any type of feature from a cannabis product or the package for a cannabis product (for example, any feature designed to promote the product by changing the appearance of the product or package after retail sale or by it making a noise or emitting a smell).

(3)

Regulations under subsection (1)(b)

(a)

may, for example, prescribe the number or weight of cannabis product that must be contained in a package; but

(b)

must not prescribe a quantity that does not comply with section [to come].

(4)

Regulations under subsection (1)(b) may (without limitation) prescribe—

(a)

requirements or options for all parts of a product or a package (for example, all surfaces of a package must be a consistent drab brown colour with a matt finish):

(b)

separate requirements or options for different parts of a product or a package (for example, any plastic or other wrapping must be consistently transparent, uncoloured, and unmarked):

(c)

separate requirements or options for—

(i)

different types of cannabis product:

(ii)

the packages for different classes of cannabis product.

(5)

In this section, appearance includes—

(a)

anything that may affect a person’s senses; and

(b)

any aspect of design, such as shape, size, colour, texture, or material.

Tracing and recall

90 Application of sections 90 to 92

This subpart applies to a person who—

(a)

holds a licence to carry out a controlled activity; and

(b)

is prescribed as a person to whom this subpart applies.

91 Tracing and recall

A person to whom this subpart applies must, in accordance with any regulations made under section 89 and any notice issued under section 125,—

(a)

have in place procedures for—

(i)

tracing cannabis and cannabis products; and

(ii)

recalling cannabis and cannabis products; and

(b)

conduct simulations or other tests of those procedures; and

(c)

implement those procedures to trace and recall cannabis and cannabis products.

92 Regulations and notices relating to tracing and recall of cannabis and cannabis products

(1)

The Governor-General may, by Order in Council made on the recommendation of the Minister, make regulations for all or any of the following purposes:

(a)

specifying a person who holds a licence to carry out a controlled activity as a person to whom this subpart applies:

(b)

setting requirements that apply to that person in relation to—

(i)

the content of procedures referred to in section 91(a); and

(ii)

the conducting of simulations and other tests of those procedures; and

(iii)

the implementation of those procedures to trace cannabis and cannabis products and recall cannabis and cannabis products:

(c)

specifying matters in relation to tracing and recall that must be included (if applicable) in a cannabis control plan or a national programme.

(2)

Before recommending the making of regulations under this section, the Minister must be satisfied that there has been appropriate consultation on the regulations in accordance with section [to come].

(3)

The head of the Authority may, by notice under section [to come], supplement regulations made under this section.

Part 10 Standards for packaging

93 Immediate container

The immediate container in which a cannabis product, other than a cannabis plant or cannabis plant seeds, is packaged must—

(a)

be opaque or translucent; and

(b)

prevent contamination of the cannabis; and

(c)

in the case of dried cannabis, or a cannabis accessory that contains dried cannabis, keep the cannabis dry; and

(d)

have a security feature that provides reasonable assurance to consumers that it has not been opened prior to receipt; and

(e)

meet the requirements of a child-resistant package under domestic legislation; and

(f)

not contain more than 14 grams of dried cannabis (or its equivalent).

94 Cannabis plant: not budding or flowering

A cannabis plant must not be budding or flowering at the time of packaging.

95 Cannabis plant: container limit

The container in which a cannabis plant is packaged must not contain more than 2 cannabis plants.

96 Cannabis plant seeds: immediate container

The immediate container in which cannabis plant seeds are packaged must—

(a)

keep the cannabis plant seeds dry; and

(b)

not contain more than 14 grams of dried cannabis (or its equivalent).

97 Cannabis product labels

The following information must be included on the label that is applied to any container in which a cannabis product is packaged:

(a)

the name of,—

(i)

in the case of a cannabis plant or cannabis plant seeds, the holder of a licence for cultivation that cultivated the cannabis plant or cannabis plant seeds; or

(ii)

in the case of any other cannabis product, the holder of a licence for processing that manufactured the product; and

(b)

the class of cannabis [ie, form] to which the cannabis that is in the immediate container belongs; and

(c)

in respect of the product,—

(i)

the brand name; and

(ii)

the recommended storage conditions; and

(iii)

the packaging date; and

(iv)

except in the case of a cannabis plant or cannabis plant seeds, either—

(A)

the expiry date; or

(B)

a statement that no expiry date has been determined; and

(d)

warnings as required by this Act, including—

(i)

the health warnings set out in Schedule 3; and

(ii)

any further warnings that may be prescribed.

98 Dried cannabis or fresh cannabis: discrete units

In the case of dried cannabis or fresh cannabis or a cannabis accessory that contains dried cannabis or fresh cannabis that is in discrete units, the label of any container in which the cannabis product is packaged must also include the following information:

(a)

the net weight, in grams, of dried cannabis or fresh cannabis:

(b)

the net weight, in grams, of dried cannabis or fresh cannabis in each unit:

(c)

the quantity of THC, in milligrams, in each unit, preceded by “THC per unit”.

99 Dried cannabis or fresh cannabis: not in discrete units

In the case of dried cannabis or fresh cannabis or a cannabis accessory that contains dried cannabis or fresh cannabis that is not in discrete units, the label of any container in which the cannabis product is packaged must also include the following information:

(a)

the net weight, in grams, of dried cannabis or fresh cannabis:

(b)

the percentage of THC weight over weight, preceded by “THC”.

100 Cannabis plants

In the case of a cannabis plant, the number of plants in the container must be included on the label that is applied to any container in which a cannabis product is packaged.

101 Cannabis plant seeds

In the case of cannabis plant seeds, the number of seeds in the container must be included on the label that is applied to any container in which a cannabis product is packaged.

Part 11 Enforcement

Powers of enforcement officers

102 Application

The powers given by this Part do not apply for the purposes of enforcing the provisions in Part 2A (which concern unlicensed activities: non-commercial growing and personal use).

103 Powers of entry and inspection

(1)

Subject to section 102, this section applies to a place if—

(a)

this Act imposes duties, restrictions, or prohibitions in respect of places of a kind to which it belongs; or

(b)

an activity in respect of which this Act imposes duties, restrictions, or prohibitions is carried out in it regularly or from time to time.

(2)

An enforcement officer may at any reasonable time enter a place if—

(a)

they believe on reasonable grounds that it is a place to which this section applies; and

(b)

it is not a dwellinghouse or other residential accommodation, or a marae.

(3)

An enforcement officer who enters a place under subsection (2) may do any or all of the following things:

(a)

bring a still or video camera, a device for taking samples of air, or both, with them:

(b)

inspect the place:

(c)

take photographs or videos with any camera they bring with them:

(d)

take samples of the air in the place with any device for that purpose they bring with them:

(e)

if the enforcement officer believes on reasonable grounds that the place is a place where cannabis products are sold from time to time,—

(i)

exercise the powers given by section 104:

(ii)

inspect any advertising or display material relating to cannabis products on display in the place, or on the outside of a building containing the place.

(4)

An enforcement officer exercising powers under this section may be accompanied by a constable.

(5)

Subsection (2) does not prevent an enforcement officer from entering a dwellinghouse or other residential accommodation—

(a)

under authority given by or under an enactment other than this section; or

(b)

with the consent of an occupier.

104 Requirement to give identifying information

(1)

An enforcement officer who at any time believes on reasonable grounds that within the previous 14 days cannabis products have been sold, or have after they are sold been delivered, to a person younger than 20 years in or from a place where cannabis products are sold, or after they were sold (at that place or another place) are delivered, from time to time—

(a)

may, while the person the officer believes on reasonable grounds to have sold or to have, after they are sold, delivered or arranged the delivery of, the products is in the place, require the person to give the officer their name and address; and

(b)

may require a person in the place who appears to be in charge of the place or any part of it to give the officer the name and address of (or, if the address is not within the person’s knowledge, the name and any other identifying information within the person’s knowledge relating to) any person the officer believes on reasonable grounds to have sold, or to have after they are sold delivered or arranged the delivery of, the products other than a person in charge of the place.

(2)

An enforcement officer who suspects that a person is younger than 20 years must not under subsection (1)(a) require the person to give the officer their name and address unless—

(a)

there is no other person in the place concerned who appears to be in charge of it; or

(b)

there is another person in the place who appears to be in charge of it but the enforcement officer suspects that that person is also younger than 20 years of age.

(3)

An enforcement officer who suspects that a person is younger than 20 years of age must not under subsection (1)(b) require the person to give the officer the name and address of (or name and other identifying information relating to) any other person if the other person is in the place concerned and appears to be 20 years or older.

105 Search warrant

(1)

An enforcement officer may apply for a search warrant in respect of any place.

(2)

The enforcement officer must apply in the manner provided in subpart 3 of Part 4 of the Search and Surveillance Act 2012.

(3)

An issuing officer may issue a search warrant in respect of the place if satisfied that there are reasonable grounds—

(a)

to suspect that an offence has been, is being, or will be committed against this Act; and

(b)

to believe that there is evidential material in the place.

(4)

The provisions of Part 4 of the Search and Surveillance Act 2012 (except sections 118 and 119) apply.

(5)

In this section, evidential material and issuing officer have the meanings given by section 3(1) of the Search and Surveillance Act 2012.

106 Purposes for which powers may be used

(1)

The powers given by section 103 must be used only for, and only to the extent necessary for, the following purposes:

(a)

finding out whether this Act is being complied with in and in respect of the place entered:

(b)

finding out the extent to which this Act is not being complied with in or in respect of the place entered:

(c)

exercising the powers given by section 104.

(2)

The powers given by section 104 must be used only for, and only to the extent necessary for, finding out the name and address of (or, if the address is not within the knowledge of the person asked, the name and any other identifying information within the person’s knowledge relating to) a person the enforcement officer concerned believes to have sold, or to have after selling them delivered or arranged the delivery of, cannabis products to a person younger than 20 years in or from a place where cannabis products are sold, or having been sold (at that place or another place) are delivered.

(3)

This section does not prevent an enforcement officer from using in proceedings for an offence against this Act evidence obtained during the lawful exercise of any of the powers given by sections 103 and 104.

107 Duties of enforcement officers

(1)

An enforcement officer exercising powers under section 103 in respect of or in a place,—

(a)

if a person in charge of the place is present on initial entry, must identify himself or herself to the person in charge as an enforcement officer; and

(b)

if asked by a person in charge to do so, must produce to the person evidence of identity, his or her instrument of appointment as an enforcement officer, or both.

(2)

An enforcement officer exercising powers under section 104 in respect of a person,—

(a)

must identify themselves to the person as an enforcement officer; and

(b)

if asked by the person to do so, must produce to the person evidence of identity, their instrument of appointment as an enforcement officer, or both.

108 Offences in respect of enforcement officers

A person commits an offence, and is liable to [to come], if the person—

(a)

intentionally obstructs, hinders, or resists an enforcement officer exercising or attempting to exercise powers under section 103 or 104; or

(b)

intentionally fails to comply with a requirement under section 104; or

(c)

when required under section 104 to give information, gives information the person knows to be false or misleading.

109 Responsibility for enforcement: limitation period for commencing proceedings

(1)

It is the duty of the head of the Authority to enforce this Part.

(2)

Every prosecution for an offence against this Part must be commenced by the head of the Authority or a person authorised by the head of the Authority.

(3)

Despite anything to the contrary in section 25 of the Criminal Procedure Act 2011, the limitation period in respect of an offence against this Part ends on the date that is 12 months after the date on which the offence was committed.

Infringement offences

110 Infringement offences

(1)

A person who is alleged to have committed an infringement offence may—

(a)

be proceeded against by filing a charging document under section 14 of the Criminal Procedure Act 2011; or

(b)

be issued with an infringement notice in accordance with sections [to come].

(2)

Proceedings commenced in the way described in subsection (1)(a) do not require leave of a District Court Judge or Registrar under section 21(1)(a) of the Summary Proceedings Act 1957.

(3)

See section 21 of the Summary Proceedings Act 1957 for the procedure that applies if an infringement notice is issued.

Further sections providing for matters that must be covered as part an infringement offences regime will be included under this heading, including who may issue infringement notices, when an infringement notice may be issued (which will deal with the legal threshold(s) for issuing infringement notices under the Act), what an infringement notice must contain, how the notice must be served and payment of infringement fee.

111 Sections 111 and 112 deleted
113 Payment of infringement fees

All infringement fees paid in respect of infringement offences must be paid into a Crown bank account.

Subpart 1

Part 12 Duties, levies, and fees

Excise tax

This section will establish an excise tax, applied to fresh cannabis at the point of production, based on weight and potency. The tax will be applied on a progressive basis, according to potency levels (higher THC content cannabis will attract a higher tax).

Cost recovery

114 Options for cost recovery

(1)

The head of the Authority must take all reasonable steps to ensure any costs of administering this Act that are not provided for by money appropriated by Parliament are recovered in accordance with the principles in this section and the regulations.

(2)

In determining appropriate mechanisms for recovering costs of a particular function or service, the Authority must ensure it recovers any amount by which—

(a)

the sum of—

(i)

the costs of the function in the current year; and

(ii)

any shortfall in the recovery of the costs in the preceding year; exceeds:

(b)

any over-recovery of costs in respect of the preceding year.

(3)

The Authority may recover costs of administering this Act and performing and exercising the functions, duties, and powers provided for in this Act by the methods that the head of the Authority considers, on reasonable grounds, to be the most suitable and equitable in the circumstances, including any 1 or more of the following methods:

(a)

fixed charges:

(b)

charges fixed on an hourly or other unit basis:

(c)

estimated charges paid before the provision of the service or performance of the function, followed by reconciliation and an appropriate payment or refund after the provision of the service or performance of the function:

(d)

actual and reasonable charges:

(e)

refundable or non-refundable deposits paid before provision of the service or performance of the function:

(f)

charges imposed on users of services or third parties:

(g)

in the case only of the head of the authority or some other head, liens on property in the possession of the Crown.

115 Restrictions on levies for recovering costs

[To come]

116 Failure to pay

(1)

If all or part of a charge under this Act or the regulations remains unpaid 20 working days after the charge was demanded in writing, the debt is taken to have been increased by the amount calculated under subsection (2).

(2)

The amount by which an unpaid charge is taken to have increased is the sum of—

(a)

10% of the debt, or that part of it that remained unpaid after the expiration of the period of 20 working days referred to in subsection (1); and

(b)

for every complete period of 6 months after the end of that period during which the debt or any part of it (including any deemed increase under this section) has remained unpaid, 10% of that debt or that part.

(3)

The Authority may waive the payment of all or any part by which the debt has increased under this section if the Authority is satisfied that the reason why the person failed or refused to pay all or any part of a debt was that there was a genuine dispute between them and the department about the person’s liability to pay the debt, the amount of the debt, or both,

(4)

In an action for recovery of the debt, the court may exercise the power of waiver contained in subsection (3) if it is satisfied in the terms set out in that subsection.

Levy orders for funding harm reduction activities

This section will include details on the use of funds consistent with the purposes of the Bill (see section 3).

117 Levy orders

(1)

A levy, payable to the Authority, may be imposed on licensees or any class of licensees for the purpose of fully or partly funding cannabis harm reduction activities.

(2)

A levy may be imposed by Order in Council made on the recommendation of the Minister.

(3)

The Minister may recommend making an Order in Council only if the Minister is satisfied, on the basis of information and evidence that the Minister regards as satisfactory, that—

(a)

persons likely to be affected by the payment or collection of the proposed levy, were it to be imposed, have been consulted; and

(b)

persons opposing the proposed levy have had a reasonable opportunity to put their views to the Minister; and

(c)

the Minister has had regard to all views put to the Minister about the proposed levy; and

(d)

imposing the levy is the most appropriate means of funding harm reduction activities, having regard to the extent to which the levy would target—

(i)

persons likely to benefit from those activities; and

(ii)

persons who, by their activities or inaction, contribute to the creation, continuance, or exacerbation of the problems proposed to be resolved by those activities; and

(e)

if the levy is imposed on quantities of a commodity imported, imposing it will not constitute a non-tariff barrier and will not be contrary to New Zealand’s international legal obligations; and

(f)

the Authority will have in place adequate systems of accounting to persons who will be responsible for paying the levy; and

(g)

all other relevant matters known to the Minister have been properly considered.

(4)

The order is a legislative instrument and a disallowable instrument for the purposes of the Legislation Act 2012 and must be presented to the House of Representatives under section 41 of that Act.

118 Effect of order

(1)

A person responsible for paying a levy set by a levy order must pay it.

(2)

The Authority may recover a levy from a person responsible for paying it as a debt due in a court of competent jurisdiction.

119 Contents of order

(1)

A levy order must specify—

(a)

how the levy may be spent; and

(b)

the persons responsible for paying the levy; and

(c)

the persons, if any, exempt from paying the levy; and

(d)

the basis on which the amount of levy must be calculated or ascertained; and

(e)

on the rate of levy,—

(i)

whether there is to be a single rate or 2 or more different rates; and

(ii)

if there are to be 2 or more different rates, the things to which the different rates apply; and

(iii)

the maximum for each rate or rates; and

(iv)

how the Authority must set the actual rate or rates of levy; and

(v)

how the rate or rates of levy and variations of the rate or rates must be notified; and

(f)

when and how the levy must be paid; and

(g)

the persons responsible for collecting the levy; and

(h)

on the matter of a fee for recovery,—

(i)

whether or not the persons responsible for collecting the levy are entitled to charge a fee for recovering it; and

(ii)

if so, the amount of the fee or a means by which its amount may be calculated or ascertained; and

(i)

for the purpose of ascertaining whether or not the order is being complied with,—

(i)

the keeping of accounts, statements, and records of a specified class or description by all or any of the persons responsible for collecting the levy, the persons responsible for paying it, and the Authority; and

(ii)

the retention of the accounts, statements, or records for a specified period; and

(j)

for the purpose of resolving disputes about whether or not a person is required to pay the levy and the amount of levy a person is required to pay,—

(i)

the appointment of arbitrators; and

(ii)

the procedures to be followed by arbitrators; and

(iii)

the remuneration of arbitrators; and

(iv)

the payment of arbitration costs; and

(v)

a right of appeal to a District Court Judge against decisions of arbitrators; and

(vi)

the procedures governing the exercise of the right of appeal; and

(vii)

any other matters relating to the resolution of disputes; and

(k)

the remuneration payable to an auditor appointed under section [to come].

(2)

A levy order may specify—

(a)

the returns to be made to the Authority or some other person or body for the purpose of enabling or assisting the determination of amounts of levy payable:

(b)

the circumstances in which, and conditions subject to which, persons may be allowed extensions of time for the payment of the levy:

(c)

a method of paying the levy that may be used by persons who object on conscientious or religious grounds to paying the levy in the manner provided in the order:

(d)

a requirement for the payment of additional or increased amounts of levy when amounts of levy originally payable have been paid late, paid in part, or not paid at all:

(e)

a requirement for the funds from which levy payments must be made to the Authority to be held on trust in a separate account.

(3)

A levy order may—

(a)

set a rate or rates initially at zero; or

(b)

provide for a rate or rates to be set at zero.

120 Compliance audits for levy

(1)

This section applies while a levy order is in force.

(2)

If the Authority requests the Minister who recommended the making of the levy order to do so, the Minister may appoint 1 or more auditors to conduct an audit of the affairs of all or any of the following:

(a)

1 or more of the persons responsible for collecting the levy:

(b)

1 or more of the persons responsible for paying the levy.

(3)

The purpose of the audit is to ascertain the following matters, to the extent to which they are relevant to the affairs being audited and to which it is practicable to ascertain them, and to report to the Minister on them:

(a)

the extent to which persons responsible for paying the levy are doing so and have done so:

(b)

the extent to which appropriate amounts of levy are being and have been paid:

(c)

the extent to which appropriate amounts of levy are being and have been collected:

(d)

the extent to which appropriate amounts of levy are being and have been paid to the Authority by the persons collecting the levy:

(e)

the extent to which accounts, statements, and records are being and have been kept:

(f)

the extent to which the accounts, statements, and records kept are properly kept.

(4)

If an arbitrator has been appointed to resolve a dispute, the Minister may appoint an auditor to conduct an audit of all or any of the persons involved in the dispute.

(5)

The purpose of the audit is to ascertain the matters of fact that are in dispute, to the extent to which it is practicable to ascertain them, and report them to the arbitrator, the persons involved, and the Minister.

(6)

No person is qualified for appointment as an auditor unless the person is a qualified auditor (within the meaning of section 35 of the Financial Reporting Act 2013).

(7)

No officer or employee of any of the following may be appointed an auditor:

(a)

the Authority:

(b)

a person responsible for collecting the levy:

(c)

a person responsible for paying the levy.

(8)

A person appointed as an auditor is entitled to receive from the Authority the remuneration provided for in the order.

121 Power of auditors to require production of documents

(1)

This section applies to an auditor appointed under section [to come].

(2)

The Minister may authorise the auditor, for the purposes of conducting an audit, to—

(a)

require the Authority, a person responsible for collecting the levy, a person responsible for paying the levy, or an employee or officer of any of the preceding 3 persons to produce for inspection in a reasonable period specified by the auditor documents that—

(i)

are accounts, statements, or records; and

(ii)

are required to be kept by this Act or a levy order; and

(iii)

are in the possession or under the control of the Authority or person; and

(b)

take copies of or extracts from the documents.

(3)

An authorisation under subsection (2) must—

(a)

be written; and

(b)

state the auditor’s full name; and

(c)

refer to this section; and

(d)

state the powers conferred on the auditor; and

(e)

state whether the powers are conferred specifically or generally.

(4)

The auditor may act under the authorisation.

(5)

The auditor must not disclose any information the auditor obtains as a result of acting under the authorisation to any other person, except that the auditor may disclose information—

(a)

under section [to come]:

(b)

to a Minister:

(c)

to a person authorised by a Minister to receive it:

(d)

for the purposes of a prosecution under this Act:

(e)

for the purposes of an action for the recovery of an amount due under this Act.

(6)

The Official Information Act 1982 applies to information held by a Minister that was obtained under this section.

122 Orders are confirmable instruments

The explanatory note of a levy order made under section [to come] must indicate that—

(a)

it is a confirmable instrument under section 47B of the Legislation Act 2012; and

(b)

it is revoked at a time stated in the note, unless earlier confirmed by an Act of Parliament; and

(c)

the stated time is the applicable deadline under section 47C(1)(a) or (b) of that Act.

Part 13 Other matters

Information sharing

123 Sharing of information between Authority, regulatory agencies, and overseas agencies

(1)

The Authority may, subject to any enactment, provide to a law enforcement or regulatory agency or an overseas agency any information, or a copy of any document, that it—

(a)

holds in relation to the performance or exercise of its functions, duties, or powers under or in relation to this Act or any other enactment; and

(b)

considers may assist, as the case may be,—

(i)

the law enforcement or regulatory agency in the performance or exercise of the law enforcement or regulatory agency’s functions, duties, or powers under or in relation to any enactment; or

(ii)

the overseas agency in the performance or exercise of the overseas agency’s functions, powers, or duties under foreign law.

(2)

The Authority may use any information, or a copy of any document, provided to it by a regulatory agency under any enactment, or by an overseas agency, in the Authority’s performance or exercise of its functions, powers, or duties under or in relation to this Act.

(3)

If subsection (1) or (2) applies, the Authority or regulatory agency (as the case may be) may impose conditions that it thinks fit relating to the provision of the information or document, including conditions relating to—

(a)

the storage and use of, or access to, anything provided:

(b)

the copying, return, or disposal of copies of any documents provided.

(4)

Nothing in this section limits the Privacy Act 1993.

(5)

This section applies despite anything to the contrary in any contract, deed, or document.

(6)

In this section,—

EPA means the Environmental Protection Authority established by section 7 of the Environmental Protection Authority Act 2011

local authority has the same meaning as in section 5(1) of the Local Government Act 2002

medical officer of health

(a)

has the same meaning as in section 2(1) of the Health Act 1956; and

(b)

includes the officers referred to in section 22 of that Act

overseas agency means an organisation in another country or territory that performs functions that correspond with, or are similar to, any of those conferred on the Authority

regulatory agency means any of the following:

(a)

the New Zealand Police:

(b)

the New Zealand Transport Agency:

(c)

the EPA:

(d)

a local authority:

(e)

Fire and Emergency New Zealand:

(f)

a designated agency under the Health and Safety at Work Act 2015:

(g)

a medical officer of health:

(h)

the Ministry of Business, Innovation, and Employment, including any statutory officer who carries out work for the Ministry:

(i)

the Ministry of Health:

(j)

the Ministry for Primary Industries:

(k)

the Ministry of Transport:

(l)

WorkSafe New Zealand.

Regulations

124 Regulations

(1)

The Governor-General may, by Order in Council, on the recommendation of the Minister in accordance with section [to come], make regulations for all or any of the following purposes:

[list, under cross headings, to come including]:

(2)

Prescribing, for the purposes of section 45, requirements with which point-of-sale health information or warnings signs under that section must comply.

Prescribed manner

(a)

prescribing, for the purposes of any provision of this Act that requires a thing to be done in a prescribed manner (or for the purposes of any other regulations empowered to prescribe the manner in which something must be done), the manner in which the thing must be done, including prescribing—

(i)

by whom, when, where, and how the thing must be done:

(ii)

the form that must be used in connection with doing the thing:

(iii)

what information or other evidence or documents must be provided in connection with the thing:

(iv)

requirements with which information, evidence, or documents that are provided in connection with the thing must comply:

(v)

that fees or charges must be paid in connection with doing the thing:

(vi)

that the Authority may determine or prescribe any of the matters under subparagraphs (i) to (v).

125 Notices

(1)

The head of the Authority may issue notices that—

(a)

set requirements or specify matters that are permitted by this Act; or

(b)

are permitted by a provision of this Act to supplement regulations made under this Act.

(2)

The head of the Authority must not issue a notice under subsection (1)(b) unless satisfied that the notice—

(a)

sets out matters of detail to elaborate on matters provided for in the regulations; or

(b)

sets out procedures, methodologies, forms, or other matters of an administrative nature relating to matters provided for in the regulations; or

(c)

sets out how requirements imposed by the regulations may or must be met; or

(d)

otherwise supplements matters of general principle set out in the regulations.

(3)

If a notice issued under this section is inconsistent with the regulations, the regulations prevail to the extent of the inconsistency.

Review of Act and related matters

126 Review of Act

This section will create a statutory requirement for the responsible Minister to review and report on the operation of the legislation following five years of operation of the licensed regime.

The review will draw on data and other evidence to assess the extent to which the regulatory regime has been effective in delivering the objectives and purpose of the regime, and to make recommendations on potential reform of the regulatory approach, as appropriate.

The review will be undertaken by an independent body of academics, scientists and researchers, including individuals with iwi and Māori expertise brought together specifically for this task.

Amendments to other enactments

[To come]

Consequential amendments

[To come]

Schedule 1 Transitional, savings, and related provisions

s 6

Part 1 Provisions relating to this Act as enacted

Declaration of illicit seed

This Schedule will detail a temporary process for licensed growers to use domestically available cannabis seeds. This would help to establish a legal supply of cannabis. Once the market was established, seeds could only be sourced from a licensed supplier.

Schedule 2 Persons ineligible to be licensees

s 32

This Schedule will identify persons considered to be ineligible to be licensees. The intention is that this will include persons with certain previous convictions and persons under 20 years of age.

Schedule 3 Health warnings

s 97

Schedule 4 Equivalences for cannabis products in non-dried form

s 5

This Schedule will specify equivalents for cannabis products in non-dried form. Equivalents will be developed for a range of cannabis products to identify what their possession and purchase limits would be and to aid safe consumption.