NARCOTIC DRUGS AMENDMENT BILL 2016

2013-2014-2015-2016

The Parliament of the

Commonwealth of Australia

HOUSE OF REPRESENTATIVES

Presented and read a first time

Narcotic Drugs Amendment Bill 2016

No. , 2016

(Health)

A Bill for an Act to amend the Narcotic Drugs Act

1967, and for related purposes

No. , 2016

Narcotic Drugs Amendment Bill 2016

Contents

Short title ........................................................................................... 1

Commencement ................................................................................. 1

Schedules ........................................................................................... 2

Schedule 1--Amendments relating to medicinal cannabis

Narcotic Drugs Act 1967

Schedule 2--Amendments relating to authorisation of State

and Territory agencies

Narcotic Drugs Act 1967

Schedule 3--Transitional provisions

Schedule 4--Amendments relating to Schedules

101

Narcotic Drugs Act 1967

101

Schedule 5--Consequential amendments

153

Therapeutic Goods Act 1989

153

No. , 2016

Narcotic Drugs Amendment Bill 2016

A Bill for an Act to amend the Narcotic Drugs Act

1967, and for related purposes

The Parliament of Australia enacts:

1 Short title

This Act may be cited as the Narcotic Drugs Amendment Act 2016.

2 Commencement

(1) Each provision of this Act specified in column 1 of the table

commences, or is taken to have commenced, in accordance with

column 2 of the table. Any other statement in column 2 has effect

according to its terms.

Narcotic Drugs Amendment Bill 2016

No. , 2016

Commencement information

Column 1

Column 2

Column 3

Provisions

Commencement

Date/Details

1. Sections 1 to 3

and anything in

this Act not

elsewhere covered

by this table

The day this Act receives the Royal Assent.

2. Schedule 1

A single day to be fixed by Proclamation.

However, if the provisions do not commence

within the period of 8 months beginning on

the day this Act receives the Royal Assent,

they commence on the day after the end of

that period.

3. Schedule 2

The earlier of:

(a) the start of a single day to be fixed by

Proclamation; and

(b) immediately before the provisions

covered by table item 2.

4. Schedules 3 to

At the same time as the provisions covered

by table item 2.

Note:

This table relates only to the provisions of this Act as originally

enacted. It will not be amended to deal with any later amendments of

this Act.

(2) Any information in column 3 of the table is not part of this Act.

Information may be inserted in this column, or information in it

may be edited, in any published version of this Act.

3 Schedules

Legislation that is specified in a Schedule to this Act is amended or

repealed as set out in the applicable items in the Schedule

concerned, and any other item in a Schedule to this Act has effect

according to its terms.

Amendments relating to medicinal cannabis Schedule 1

No. , 2016

Narcotic Drugs Amendment Bill 2016

Schedule 1--Amendments relating to

medicinal cannabis

Narcotic Drugs Act 1967

1 Title

Repeal the title, substitute:

An Act to make provision in relation to narcotic

drugs in accordance with the Single Convention on

Narcotic Drugs, 1961, as in force from time to time,

and for other purposes

2 Part I (heading)

Repeal the heading, substitute:

Chapter 1--Preliminary

Part 1--General provisions

3 After section 2

Insert:

2A Object of this Act

The object of this Act is to give effect to certain of Australia's

obligations under the Single Convention on Narcotic Drugs, 1961,

as in force from time to time.

4 Section 3

Repeal the section, substitute:

3 Simplified outline of this Act

This Act gives effect to certain of Australia's obligations under the

Single Convention on Narcotic Drugs, 1961, as in force from time

Schedule 1 Amendments relating to medicinal cannabis

Narcotic Drugs Amendment Bill 2016

No. , 2016

to time. The Convention, as amended by the 1972 Protocol, is set

out in Schedule 1 to this Act.

A licensing and permit scheme regulates the cultivation of

cannabis plants and the production of cannabis and cannabis resin.

Cultivation and production, and related activities, under the scheme

are for medicinal purposes or for research relating to medicinal

cannabis.

A separate licensing and permit scheme regulates the manufacture

of drugs covered by the Convention.

Authorised inspectors have monitoring, inspection and

enforcement powers under the Regulatory Powers Act to ensure

this Act is being complied with. The Secretary has comprehensive

powers to give directions to licence holders and former licence

holders.

5 Subsection 4(1)

Repeal the subsection, substitute:

(1) In this Act:

1972 Protocol means the Protocol Amending the Single

Convention on Narcotic Drugs, 1961, done at Geneva on

25 March, 1972.

agency of the Commonwealth, a State or a Territory includes the

following:

(a) the Crown in right of the Commonwealth, a State or a

Territory;

(b) a Minister of the Commonwealth, a State or a Territory;

(d) an instrumentality of the Commonwealth, a State or a

Territory, including a body corporate established for a public

purpose by or under a law of the Commonwealth, a State or a

Territory;

(e) a company in which a controlling interest is held by any one

of the following persons, or by 2 or more of the following

persons together:

Amendments relating to medicinal cannabis Schedule 1

No. , 2016

Narcotic Drugs Amendment Bill 2016

(i) the Crown in right of the Commonwealth, a State or a

Territory;

(ii) a person or body covered by paragraph (b) or (d);

(f) a court, tribunal or parole board of the Commonwealth, a

State or a Territory.

authorised inspector means a person appointed as an authorised

inspector under section 13H.

business associate: 2 or more persons are business associates, in

relation to a business, if each person:

(a) both:

(i) holds a relevant financial interest, or is entitled to

exercise a relevant power (whether in his or her own

right or on someone else's behalf), in the business; and

(ii) because of that interest or power, is able to exercise a

significant influence over, or with respect to, the

management or operation of the business; or

(b) holds any relevant position (whether in his or her own right

or on someone else's behalf) in the business.

cannabis has the same meaning as in the Convention.

cannabis licence means a cannabis research licence or a medicinal

cannabis licence.

cannabis permit means a cannabis research permit or a medicinal

cannabis permit.

cannabis plant means the following:

(a) any plant of the genus cannabis;

(b) any part of a plant of the genus cannabis including, but not

limited to, the seeds, stems or leaves of the plant.

cannabis research licence: see subsection 9D(1).

cannabis research permit: see subsection 9N(1).

cannabis resin has the same meaning as in the Convention.

civil penalty provision has the same meaning as in the Regulatory

Powers Act.

Schedule 1 Amendments relating to medicinal cannabis

Narcotic Drugs Amendment Bill 2016

No. , 2016

coca leaves has the same meaning as in the Convention.

Collector has the same meaning as in the Customs Act 1901.

Comptroller-General of Customs means the person who is the

Comptroller-General of Customs in accordance with

subsection 11(3) or 14(2) of the Australian Border Force Act 2015.

Convention means the Single Convention on Narcotic Drugs,

1961, done at New York on 30 March 1961, as amended by the

Protocol and as in force from time to time.

Note:

A copy of the English text of the Convention, as amended and in force

at the commencement of section 1 of the Narcotic Drugs Amendment

Act 2016, is set out in Schedule 1.

cultivate a cannabis plant includes the following:

(a) sow a seed of a cannabis plant;

(b) plant, grow, tend, nurture or harvest a cannabis plant;

but does not include the separation of cannabis or cannabis resin

from a cannabis plant.

decision on review: see subsection 15H(5).

drug means any substance that is a drug for the purposes of the

Convention, and includes any substance prescribed by regulations

under section 8 of this Act.

fit and proper person: see sections 8A and 8B.

handling includes stacking, stowing, storing, transporting, loading,

unloading and any operation incidental to, or arising out of, any of

those operations.

head of an agency means:

(a) if the agency is a court--the registrar (however described) of

the court; or

(b) otherwise--the principal officer (however described) of the

agency.

internal reviewer: see subsection 15H(1).

issuing officer means:

(a) a Judge of a court created by the Parliament; or

Amendments relating to medicinal cannabis Schedule 1

No. , 2016

Narcotic Drugs Amendment Bill 2016

(b) a Deputy President of the Administrative Appeals Tribunal;

Tribunal who:

(i) is enrolled as a legal practitioner of the High Court, or

the Supreme Court of a State or Territory; and

(ii) has been so enrolled for at least 5 years.

licence means the following:

(a) a cannabis research licence;

(b) a manufacture licence:

licensed premises means premises at which activities authorised

under a licence take place.

manufacture licence: see subsection 11G(1).

manufacture permit: see subsection 12(1).

medicinal cannabis licence: see subsection 8E(1).

medicinal cannabis permit: see subsection 8P(1).

medicinal cannabis product means a product, including but not

limited to a substance, composition, preparation or mixture, that:

(a) includes, or is from, any part of the cannabis plant; and

(b) is for use for the purposes of curing, or alleviating the

symptoms of, a disease, ailment or injury.

narcotic preparation means any mixture, whether solid or liquid,

that contains a drug.

offence against this Act includes an offence against the Crimes Act

1914 or the Criminal Code that relates to this Act.

opium has the same meaning as in the Convention.

permit means the following:

(a) a cannabis research permit;

(b) a manufacture permit;

Schedule 1 Amendments relating to medicinal cannabis

Narcotic Drugs Amendment Bill 2016

No. , 2016

premises includes the following:

(a) a structure or building;

(b) a vehicle, vessel or aircraft;

place situated underground or under water;

(d) a part of a thing referred to in paragraph (a), (b) or (c).

production has the same meaning as in the Convention.

Regulatory Powers Act means the Regulatory Powers (Standard

Provisions) Act 2014.

relative of a person includes a spouse, parent, step-parent, child,

step-child, adopted child, sibling or step-sibling of the person.

relevant court means:

(a) the Federal Court of Australia; or

(b) the Federal Circuit Court of Australia; or

to matters arising under this Act.

relevant financial interest, in relation to a business, means:

(a) a share in the capital of the business; or

(b) an entitlement to receive any income derived from the

business.

relevant position, in relation to a business, means a position

(however described) of director, partner, trustee, manager or other

executive position, or secretary.

relevant power, in relation to a business, means any power,

whether exercisable by voting or otherwise and whether

exercisable alone or in association with others:

(a) to participate in any directorial, managerial or executive

decision of the business; or

(b) to elect or appoint any person to any relevant position in

relation to the business.

reviewable decision: see section 15E.

Secretary means the Secretary of the Department administered by

the Minister administering the National Health Act 1953.

Amendments relating to medicinal cannabis Schedule 1

No. , 2016

Narcotic Drugs Amendment Bill 2016

serious offence means the following:

(a) an offence against a law of the Commonwealth, a State, a

Territory or another country that:

(i) involves dishonesty, fraud or cultivation of, or

trafficking in, drugs; and

(ii) is punishable by a maximum penalty of imprisonment

for not less than 3 months;

(b) an offence against a law of the Commonwealth, a State, a

Territory or another country that is punishable by a maximum

penalty of imprisonment for not less than 5 years.

spouse of a person includes:

(a) another person (whether of the same sex or a different sex)

with whom the person is in a relationship that is registered

under a law of a State or Territory prescribed for the purposes

of section 2E of the Acts Interpretation Act 1901 as a kind of

relationship prescribed for the purposes of that section; and

(b) another person who, although not legally married to the

person, lives with the person on a genuine domestic basis in a

relationship as a couple.

supply includes the following, whether free of charge or otherwise:

(a) supply by way of sale, exchange, gift, lease, loan, hire or

hire-purchase;

(b) supply by way of sample;

(d) supply by way of administration to, or application in the

treatment of, a person.

this Act includes:

(a) instruments made under this Act;

(b) the Regulatory Powers Act as it applies because of this Act.

(1A) To avoid doubt, a reference to a drug in this Act includes a

reference to a medicinal cannabis product that is a drug.

6 Sections 5 and 6

Repeal the sections, substitute:

Schedule 1 Amendments relating to medicinal cannabis

Narcotic Drugs Amendment Bill 2016

No. , 2016

5 Crown to be bound

(1) This Act binds the Crown in each of its capacities.

(2) This Act does not make the Crown liable to be prosecuted for an

offence.

6 Extension to external Territories

This Act extends to every external Territory.

7 Section 7

Omit "section 12 or 13", substitute "this Act".

8 After section 7

Insert:

7A Interaction with State and Territory laws

(1) Despite section 7, Chapter 2 and section 25A of this Act, and other

provisions of this Act so far as they relate to those provisions,

apply to the exclusion of a law, or a provision of a law, of a State

or a Territory to the extent that the law or provision purports to do

one or more of the following:

(a) provide for the grant of a licence (however described)

authorising the cultivation of cannabis plants for the purposes

of producing cannabis or cannabis resin for medicinal or

related scientific purposes, or otherwise authorise such

cultivation;

(b) provide for the grant of a licence (however described)

authorising the production of cannabis or cannabis resin for

medicinal or related scientific purposes, or otherwise

authorise such production;

activity, that is authorised under Chapter 2 or section 25A of

this Act, or another provision of this Act so far as it relates to

Chapter 2 or section 25A.

(2) Subsection (1) does not apply to a law, or a provision of a law,

prescribed by the regulations for the purposes of this subsection.

Amendments relating to medicinal cannabis Schedule 1

No. , 2016

Narcotic Drugs Amendment Bill 2016

(3) Regulations made for the purposes of subsection (2) may prescribe

a law, or a provision of a law, in relation to its operation in

prescribed circumstances.

9 Section 8A

Repeal the section, substitute:

Part 2--Fit and proper person requirements

8A Matters to be taken into account in deciding whether a natural

person is a fit and proper person

Without limiting the matters to which the Secretary may have

regard in deciding whether a natural person is a fit and proper

person to hold a licence, or to be associated with the holder of a

licence, the Secretary may have regard to the following:

(a) any conviction of the person for an offence against a law of

the Commonwealth, a State or a Territory;

(b) any civil penalty (however described) imposed upon the

person under a law of the Commonwealth, a State or a

Territory;

described) held by the person under a law of the

Commonwealth, a State, a Territory or another country, being

a law relating to the prohibition or regulation of drugs;

(d) the connections and associations that the person has with

other persons (including but not limited to the person's

relatives);

(e) the person's previous business experience;

(f) the capacity of the person to comply with conditions of the

licence;

(g) whether the person has a sound and stable financial

background or is in financial circumstances that may

significantly limit the person's capacity to comply with his or

her obligations under a licence;

(h) whether the person is of good repute, having regard to

matters going to their character, honesty and professional and

personal integrity;

(i) the person's history of compliance with this Act.

Schedule 1 Amendments relating to medicinal cannabis

Narcotic Drugs Amendment Bill 2016

No. , 2016

Note:

The Secretary must refuse to grant a licence to a person if the

Secretary is not satisfied on reasonable grounds that the person and his

or her business associates are fit and proper, and must revoke the

licence if satisfied on reasonable grounds that they are not fit and

proper.

8B Matters to be taken into account in deciding whether a body

corporate is a fit and proper person

Without limiting the matters to which the Secretary may have

regard in deciding whether a body corporate is a fit and proper

person to hold a licence, or to be associated with the holder of a

licence, the Secretary must have regard to the following:

(a) any conviction of the body corporate for an offence against a

law of the Commonwealth, a State or a Territory;

(b) any civil penalty (however described) imposed upon the body

corporate under a law of the Commonwealth, a State or a

Territory;

upon the body corporate:

(i) whether the offence concerned was committed, or the

conduct to which the civil penalty relates occurred, at a

time when any person who is presently a director or

officer of the body corporate was a director or officer;

and

(ii) whether the offence concerned was committed, or the

conduct to which the civil penalty relates occurred, at a

time when any shareholder of the body corporate who is

presently in a position to influence the management of

the body corporate was such a shareholder;

(d) any revocation or suspension of a licence or permit (however

described) held by the body corporate under a law of the

Commonwealth, a State, a Territory or another country, being

a law relating to the prohibition or regulation of drugs;

(e) the connections and associations that the body corporate, and

its directors and officers, have with other persons (including

but not limited to relatives of such directors and officers);

(f) the previous business experience of the directors and officers

of the body corporate, and of the shareholders of the body

corporate who are presently in a position to influence the

management of the body corporate;

Amendments relating to medicinal cannabis Schedule 1

No. , 2016

Narcotic Drugs Amendment Bill 2016

(g) whether the body corporate has a sound and stable financial

background or is in financial circumstances that may

significantly limit the capacity of the body corporate to

comply with its obligations under a licence;

(h) the capacity of the body corporate to meet the conditions of

the licence;

(i) whether the directors and officers of the body corporate are

of good repute, having regard to matters going to their

character, honesty and professional and personal integrity;

(j) the body corporate's history of compliance with this Act.

Note:

The Secretary must refuse to grant a licence to a person if the

Secretary is not satisfied on reasonable grounds that the person and his

or her business associates are fit and proper, and must revoke the

licence if satisfied on reasonable grounds that they are not fit and

proper.

8C Part does not affect spent convictions provisions

Nothing in this Part affects the operation of Part VIIC of the

Crimes Act 1914 (which includes provisions that, in certain

circumstances, relieve persons from the requirement to disclose

spent convictions and require persons aware of such convictions to

disregard them).

10 Part II

Repeal the Part, substitute:

Chapter 2--Licensing the cultivation of

cannabis plants and the production of

cannabis etc.

Part 1--Introduction

8D Simplified outline of this Chapter

There are 2 types of cannabis licence.

A medicinal cannabis licence may authorise:

Schedule 1 Amendments relating to medicinal cannabis

Narcotic Drugs Amendment Bill 2016

No. , 2016

(a)

the cultivation of cannabis plants for producing cannabis

or cannabis resin for medicinal purposes and the

obtaining of cannabis plants for that purpose; or

(b)

the production of cannabis or cannabis resin for

medicinal purposes; or

(c)

all of the above;

and activities related to such cultivation, obtaining or production.

A cannabis research licence may authorise:

(a)

the cultivation of cannabis plants for producing cannabis

or cannabis resin for research relating to medicinal

cannabis and the obtaining of cannabis plants for that

purpose; or

(b)

the production of cannabis or cannabis resin for research

relating to medicinal cannabis; or

(c)

all of the above;

and activities related to such cultivation, obtaining or production.

Before a licence holder can cultivate cannabis plants, or produce

cannabis or cannabis resin, the licence holder must obtain a

cannabis permit. Permits deal with matters such as the types of

cannabis plants that can be cultivated and the quantities of cannabis

and cannabis resin that can be produced.

Certain conditions are imposed on all cannabis licences, and the

Secretary may impose additional conditions.

Cannabis licences and cannabis permits can be varied or revoked in

certain circumstances.

There are offences and civil penalties relating to the cultivation and

obtaining of cannabis plants and the production of cannabis and

cannabis resin.

Amendments relating to medicinal cannabis Schedule 1

No. , 2016

Narcotic Drugs Amendment Bill 2016

Part 2--Licences and permits

Division 1--Medicinal cannabis licences and permits

8E Person may apply for a medicinal cannabis licence

(1) A person may apply to the Secretary for a licence (a medicinal

cannabis licence) that authorises one or more of the following

activities:

(a) the cultivation of cannabis plants, in accordance with one or

more medicinal cannabis permits, for the purpose of

producing cannabis or cannabis resin for medicinal purposes

and, if appropriate, the obtaining of cannabis plants for the

purpose of such cultivation;

(b) the production of cannabis or cannabis resin for medicinal

purposes, in accordance with one or more medicinal cannabis

permits;

including but not limited to the following (as applicable):

(i) the supply of cannabis plants, cannabis or cannabis

resin;

(ii) the packaging, transport, storage, possession and control

of cannabis plants, cannabis or cannabis resin;

(iii) the disposal or destruction of cannabis plants, cannabis

or cannabis resin.

Note:

A cannabis plant includes the seeds of a cannabis plant (see

subsection 4(1)).

(2) The application must be made in the form or manner approved in

writing by the Secretary, and must:

(a) contain the information (if any) prescribed by the regulations;

and

(b) contain the information (if any) specified in writing by the

Secretary; and

regulations; and

(d) be accompanied by the documents (if any) specified in

writing by the Secretary.

Schedule 1 Amendments relating to medicinal cannabis

Narcotic Drugs Amendment Bill 2016

No. , 2016

Note:

The Secretary may also require additional information and documents

from the applicant at any time: see subsection 14J(1).

(3) The application must be accompanied by the application fee (if

any) prescribed by the regulations.

(4) The application may be withdrawn at any time before a decision is

made on the application, but the application fee is not refundable.

8F Secretary must make a decision on an application for a medicinal

cannabis licence

(1) If a person has made an application for a medicinal cannabis

licence, the Secretary must decide whether to grant, or refuse to

grant, the licence.

(2) The Secretary may, subject to sections 8G and 8J, grant a

medicinal cannabis licence if the Secretary considers it appropriate

in all the circumstances to do so.

(3) For the purposes of deciding whether to grant, or refuse to grant, a

medicinal cannabis licence, the Secretary:

(a) must have regard to the following:

(i) the information and documents provided by the

applicant;

(ii) any advice, information or documents received in

response to a request or requirement under section 14J,

14K or 14L including, in particular, any advice provided

by an agency of a State or Territory in which any

activities proposed to be authorised by the licence will

take place;

(iii) any other matter prescribed by the regulations; and

(b) may have regard to any other matter relating to the conduct

of activities authorised by the licence or the distribution, use

and possession of cannabis plants cultivated or obtained, or

cannabis or cannabis resin produced, under the licence; and

relevant; and

(d) may require the applicant to provide access to land or

premises at which activities proposed to be authorised by the

licence will take place, for the purposes of inspecting the land

or premises.

Amendments relating to medicinal cannabis Schedule 1

No. , 2016

Narcotic Drugs Amendment Bill 2016

8G General circumstances in which Secretary must refuse to grant a

medicinal cannabis licence

(1) The Secretary must refuse to grant a medicinal cannabis licence if:

(a) the Secretary is not satisfied on reasonable grounds that:

(i) the applicant is a fit and proper person to hold the

licence; and

(ii) each of the applicant's relevant business associates for

the application (see subsection (2)), whether in relation

to a business relating to the medicinal cannabis licence,

or in relation to any other business, is a fit and proper

person to be associated with the holder of a medicinal

cannabis licence; or

(b) subject to section 8H--the Secretary is satisfied on

reasonable grounds that:

(i) the applicant; or

(ii) if the applicant is a body corporate, any of the directors

of the body corporate;

has engaged in conduct that constitutes a serious offence

during the 10 years immediately before the date of the

application; or

of the licence would not be consistent with Australia's

obligations under the Convention; or

(d) the Secretary is not satisfied on reasonable grounds that the

applicant will take all reasonable measures to ensure the

physical security of cannabis plants, cannabis or cannabis

resin:

(i) in the applicant's possession or control; and

(ii) obtained, cultivated or produced under, or purportedly

under, the licence; or

(e) the Secretary is not satisfied on reasonable grounds of the

suitability of the location, facilities or proposed security

arrangements at the land or premises where activities

authorised by the licence will take place; or

(f) the Secretary is satisfied on reasonable grounds that one or

more circumstances exist that are prescribed by the

regulations as circumstances in which a licence must not be

granted; or

Schedule 1 Amendments relating to medicinal cannabis

Narcotic Drugs Amendment Bill 2016

No. , 2016

(g) the application fee (if any) has not been paid; or

(h) the applicant has not complied with a requirement under

subsection 14J(1) (additional information) in relation to the

application.

Relevant business associate

(2) A business associate of an applicant is a relevant business associate

for the application if the Secretary considers it is reasonable, in the

circumstances of the application, to take that business associate

into account.

8H Exception in special circumstances

Paragraph 8G(1)(b) does not prevent the Secretary from granting a

medicinal cannabis licence if the Secretary is satisfied:

(a) that the conduct referred to in that paragraph:

(i) constitutes a serious offence solely because it involves

the cultivation or obtaining of the cannabis plant, or the

production or supply of cannabis or cannabis resin or of

products containing cannabis or cannabis resin; and

(ii) was fully disclosed in the application; and

(b) that if the licence were granted, the applicant could comply

with all the requirements of the licence and this Act.

However, this section does not require the Secretary to grant the

licence even if the Secretary is so satisfied.

8J Particular circumstances in which Secretary must refuse to grant

a medicinal cannabis licence

Licence authorising cultivation but not production

(1) The Secretary must refuse to grant a medicinal cannabis licence

that:

(a) authorises the cultivation of cannabis plants (whether or not it

also authorises the obtaining of cannabis plants); and

(b) does not also authorise the production of cannabis or

cannabis resin;

if the Secretary is not satisfied on reasonable grounds that the

cultivation of the cannabis plants is:

Amendments relating to medicinal cannabis Schedule 1

No. , 2016

Narcotic Drugs Amendment Bill 2016

cannabis licence that authorises such production; or

(d) for a purpose prescribed by the regulations.

Licence authorising production

(2) The Secretary must refuse to grant a medicinal cannabis licence

that authorises the production of cannabis or cannabis resin

(whether or not it also authorises the cultivation of cannabis plants)

if the Secretary is not satisfied on reasonable grounds that:

(a) the production of the cannabis or cannabis resin for medicinal

purposes is for the purposes of supply to the holder of a

licence under this Act that authorises:

(i) the manufacture of one or more drugs that are medicinal

cannabis products; or

(ii) the manufacture of a drug for the purposes of research

relating to medicinal cannabis products; or

(b) the applicant holds a licence that authorises such

manufacture; or

purposes is for a purpose prescribed by the regulations.

8K Secretary may impose conditions

If the Secretary decides to grant a medicinal cannabis licence, the

Secretary may impose conditions to which the licence is subject

including, but not limited to, conditions relating to matters set out

in section 10D.

Note 1:

For requirements for a notice of a decision to impose conditions on a

medicinal cannabis licence, see section 15F.

Note 2:

Conditions are also specified in this Act (see sections 10E to 10K),

and may also be prescribed by the regulations (see paragraph 10C(b)).

8L Notification of decision

If the Secretary decides to grant a medicinal cannabis licence, the

Secretary must, as soon as practicable:

(a) notify the applicant for the licence, in writing, of the

Secretary's decision; and

(b) provide a copy of the licence, specifying the matters as

mentioned in section 8M, to the applicant.

Schedule 1 Amendments relating to medicinal cannabis

Narcotic Drugs Amendment Bill 2016

No. , 2016

Note:

For requirements for a notice of a decision to refuse to grant a

medicinal cannabis licence, see section 15F.

8M Matters to be specified in a medicinal cannabis licence

A medicinal cannabis licence must specify the following:

(a) the name of the licence holder;

(b) the activities authorised by the licence, and the extent to

which those activities are authorised only in accordance with

one or more medicinal cannabis permits held by the licence

holder;

the obtaining and cultivation of cannabis plants, and the

production of cannabis or cannabis resin, as the case requires,

is authorised by the licence in accordance with one or more

medicinal cannabis permits;

(d) the premises at which other activities relating to such

obtaining, cultivation or production is authorised by the

licence;

(e) the persons authorised by the licence to engage in activities

authorised by the licence;

(f) the conditions (if any) imposed by the Secretary under

section 8K;

(g) the period for which the licence is in force;

(h) that the Secretary may, in accordance with section 15, require

the destruction of cannabis plants, cannabis or cannabis resin

in the possession of, or under the control of, the licence

holder.

8N Period in force of a medicinal cannabis licence

A medicinal cannabis licence ceases to be in force:

(a) at the end of the period for which it is expressed to be in

force; or

(b) if it is revoked earlier--when it is revoked.

Amendments relating to medicinal cannabis Schedule 1

No. , 2016

Narcotic Drugs Amendment Bill 2016

8P Holder of a medicinal cannabis licence may apply for a medicinal

cannabis permit

(1) The holder of a medicinal cannabis licence may apply for a permit

(a medicinal cannabis permit) in relation to activities that are

authorised by the licence only in accordance with such a permit.

(2) The application must be made in the form or manner approved in

writing by the Secretary, and must:

(a) contain the information (if any) prescribed by the regulations;

and

(b) contain the information (if any) specified in writing by the

Secretary; and

regulations; and

(d) be accompanied by the documents (if any) specified in

writing by the Secretary.

Note:

The Secretary may also require additional information and documents

from the applicant at any time: see subsection 14J(1).

(3) The application must be accompanied by the application fee (if

any) prescribed by the regulations.

(4) The application may be withdrawn at any time before a decision is

made on the application, but the application fee is not refundable.

9 Secretary must make a decision on an application for a medicinal

cannabis permit

(1) If a person has made an application for a medicinal cannabis

permit, the Secretary must decide whether to grant, or refuse to

grant, the permit.

(2) The Secretary may, subject to subsections (3) and (4), grant a

medicinal cannabis permit if the Secretary considers it appropriate

in all the circumstances to do so.

(3) The Secretary may refuse to grant a medicinal cannabis permit if

the Secretary is satisfied on reasonable grounds that the holder of

the medicinal cannabis licence to which the permit relates has

breached a condition of the licence.

(4) The Secretary must refuse to grant a medicinal cannabis permit if:

Schedule 1 Amendments relating to medicinal cannabis

Narcotic Drugs Amendment Bill 2016

No. , 2016

(a) the application fee (if any) has not been paid; or

(b) the applicant has not complied with a requirement under

subsection 14J(1) (additional information) in relation to the

application.

9A Notification of decision

If the Secretary decides to grant a medicinal cannabis permit that

relates to a medicinal cannabis licence, the Secretary must, as soon

as practicable:

(a) notify the licence holder, in writing, of the Secretary's

decision; and

(b) provide a copy of the permit, specifying the matters as

mentioned in section 9B, to the licence holder.

Note:

For requirements for a notice of a decision to refuse to grant a

medicinal cannabis permit, see section 15F.

9B Matters to be specified in a medicinal cannabis permit

Medicinal cannabis permits--cultivation

(1) Without limiting the matters that the Secretary may specify in a

medicinal cannabis permit that relates to a licence that authorises

the cultivation of cannabis plants, the Secretary may specify one or

more of the following that are authorised by the licence in

accordance with the permit:

(a) the types and strains of cannabis plants that may be

cultivated;

(b) the maximum size of the cannabis crop that may be

cultivated;

of the Secretary, having regard to Australia's obligations

under the Convention, it is necessary for the licence holder to

have in the holder's possession or control at any time for the

normal conduct of business;

(d) the period during which cannabis plants may be cultivated;

(e) the period for which the permit is in force;

(f) any matter prescribed by the regulations.

Amendments relating to medicinal cannabis Schedule 1

No. , 2016

Narcotic Drugs Amendment Bill 2016

Note 1:

Section 10J provides that (in general) it is a condition of a medicinal

cannabis licence that certain contracts are in force while a medicinal

cannabis permit is in force.

Note 2:

A cannabis plant includes the seeds of a cannabis plant (see

subsection 4(1)).

Medicinal cannabis permits--production

(2) Without limiting the matters that the Secretary may specify in a

medicinal cannabis permit that relates to a licence that authorises

the production of cannabis or cannabis resin, the Secretary may

specify one or more of the following that are authorised by the

licence in accordance with the permit:

(a) the maximum quantity of cannabis or cannabis resin that may

be produced;

(b) the maximum quantity of cannabis or cannabis resin that, in

the opinion of the Secretary, having regard to Australia's

obligations under the Convention, it is necessary for the

licence holder to have in the holder's possession or control at

any time for the normal conduct of business;

be produced;

(d) the period for which the permit is in force;

(e) any matter prescribed by the regulations.

Note:

Section 10J provides that (in general) it is a condition of a medicinal

cannabis licence that certain contracts are in force while a medicinal

cannabis permit is in force.

9C Period in force of a medicinal cannabis permit

A medicinal cannabis permit ceases to be in force:

(a) at the end of the period for which it is expressed to be in

force; or

(b) if it is revoked or taken to be revoked earlier--when it is

revoked or taken to be revoked.

Note:

A medicinal cannabis permit is taken to be revoked if the medicinal

cannabis licence to which the permit relates is revoked: see

subsection 10P(4).

Schedule 1 Amendments relating to medicinal cannabis

Narcotic Drugs Amendment Bill 2016

No. , 2016

Division 2--Cannabis research licences and permits

9D Person may apply for a cannabis research licence

(1) A person may apply to the Secretary for a licence (a cannabis

research licence) that authorises one or more of the following

activities:

(a) the cultivation of cannabis plants, in accordance with one or

more cannabis research permits, for the purpose of producing

cannabis or cannabis resin for research relating to medicinal

cannabis and, if appropriate, the obtaining of cannabis plants

for the purpose of such cultivation;

(b) the production of cannabis or cannabis resin for research

relating to medicinal cannabis, in accordance with one or

more cannabis research permits;

including but not limited to the following (as applicable):

(i) the packaging, transport, storage, possession and control

of cannabis plants, cannabis or cannabis resin;

(ii) the disposal or destruction of cannabis plants, cannabis

or cannabis resin.

Note:

A cannabis plant includes the seeds of a cannabis plant (see

subsection 4(1)).

(2) The application must be made in the form or manner approved in

writing by the Secretary, and must:

(a) contain the information (if any) prescribed by the regulations;

and

(b) contain the information (if any) specified in writing by the

Secretary; and

regulations; and

(d) be accompanied by the documents (if any) specified in

writing by the Secretary.

Note:

The Secretary may also require additional information and documents

from the applicant at any time: see subsection 14J(1).

(3) The application must be accompanied by the application fee (if

any) prescribed by the regulations.

Amendments relating to medicinal cannabis Schedule 1

No. , 2016

Narcotic Drugs Amendment Bill 2016

(4) The application may be withdrawn at any time before a decision is

made on the application, but the application fee is not refundable.

9E Secretary must make a decision on an application for a cannabis

research licence

(1) If a person has made an application for a cannabis research licence,

the Secretary must decide whether to grant, or refuse to grant, the

licence.

(2) The Secretary may, subject to sections 9F and 9H, grant the

cannabis research licence if the Secretary considers it appropriate

in all the circumstances to do so.

(3) For the purposes of deciding whether to grant, or refuse to grant, a

cannabis research licence, the Secretary:

(a) must have regard to the following:

(i) the information and documents provided by the

applicant;

(ii) any advice, information or documents received in

response to a request or requirement under section 14J,

14K or 14L including, in particular, any advice provided

by an agency of a State or Territory in which any

activities proposed to be authorised by the licence will

take place;

(iii) any other matter prescribed by the regulations; and

(b) may have regard to any other matter relating to the

distribution, use, possession and control of cannabis plants

cultivated or obtained, or cannabis or cannabis resin

produced under the licence; and

relevant; and

(d) may require the applicant to provide access to land or

premises at which activities proposed to be authorised by the

licence will take place, for the purposes of inspecting the land

or premises.

9F General circumstances in which Secretary must refuse to grant a

cannabis research licence

(1) The Secretary must refuse to grant a cannabis research licence if:

Schedule 1 Amendments relating to medicinal cannabis

Narcotic Drugs Amendment Bill 2016

No. , 2016

(a) the Secretary is not satisfied on reasonable grounds that:

(i) the applicant is a fit and proper person to hold the

licence; and

(ii) each of the applicant's relevant business associates for

the application (see subsection (2)), whether in relation

to a business relating to the cannabis research licence, or

in relation to any other business, is a fit and proper

person to be associated with the holder of a cannabis

research licence; or

(b) subject to section 9G--the Secretary is satisfied on

reasonable grounds that:

(i) the applicant; or

(ii) if the applicant is a body corporate, any of the directors

of the body corporate;

has engaged in conduct that constitutes a serious offence

during the 10 years immediately before the date of the

application; or

of the licence would not be consistent with Australia's

obligations under the Convention; or

(d) the Secretary is not satisfied on reasonable grounds that the

applicant will take all reasonable measures to ensure the

physical security of cannabis plants, cannabis or cannabis

resin:

(i) in the applicant's possession or control; and

(ii) obtained, cultivated or produced under, or purportedly

under, the licence; or

(e) the Secretary is not satisfied on reasonable grounds of the

suitability of the location, facilities or proposed security

arrangements at the land or premises where activities

authorised by the licence will take place; or

(f) the Secretary is satisfied on reasonable grounds that one or

more circumstances exist that are prescribed by the

regulations as circumstances in which a licence must not be

granted; or

(g) the application fee (if any) has not been paid; or

(h) the applicant has not complied with a requirement under

subsection 14J(1) (additional information) in relation to the

application.

Amendments relating to medicinal cannabis Schedule 1

No. , 2016

Narcotic Drugs Amendment Bill 2016

Relevant business associate

(2) A business associate of an applicant is a relevant business associate

for the application if the Secretary considers it is reasonable, in the

circumstances of the application, to take that business associate

into account.

9G Exception in special circumstances

Paragraph 9F(1)(b) does not prevent the Secretary from granting a

cannabis research licence if the Secretary is satisfied that:

(a) the conduct referred to in that paragraph:

(i) constitutes a serious offence solely because it involves

the cultivation or obtaining of the cannabis plant, or the

production or supply of cannabis or cannabis resin or of

products containing cannabis or cannabis resin; and

(ii) was fully disclosed in the application; and

(b) if the licence were granted, the applicant could comply with

all the requirements of the licence and this Act.

However, this section does not require the Secretary to grant the

licence even if the Secretary is so satisfied.

9H Particular circumstances in which Secretary must refuse to

grant cannabis research licence

The Secretary must refuse to grant a cannabis research licence if

the Secretary is not satisfied on reasonable grounds of the

following:

(a) if the licence will authorise the cultivation of cannabis

plants--the cultivation so authorised is for the purposes of

research relating to medicinal cannabis;

(b) if the licence will authorise the production of cannabis or

cannabis resin--the production of cannabis or cannabis resin

authorised by the licence is:

(i) for the purposes of research relating to medicinal

cannabis by the applicant; or

(ii) for the purposes of research relating to medicinal

cannabis products;

Schedule 1 Amendments relating to medicinal cannabis

Narcotic Drugs Amendment Bill 2016

No. , 2016

(i) has the appropriate financial resources, other resources

and expertise that are necessary to carry out such

research; or

(ii) is included in a class of persons prescribed by the

regulations.

9J Secretary may impose conditions

If the Secretary decides to grant a cannabis research licence, the

Secretary may impose conditions to which the licence is subject

including, but not limited to, conditions set out in section 10D.

Note 1:

For requirements for a notice of a decision to impose conditions on a

cannabis research licence, see section 15F.

Note 2:

Conditions are also specified in this Act (see sections 10E to 10K),

and may also be prescribed by the regulations (see paragraph 10C(b)).

9K Notification of decision

If the Secretary decides to grant a cannabis research licence, the

Secretary must, as soon as practicable:

(a) notify the applicant for the licence, in writing, of the

Secretary's decision; and

(b) provide a copy of the licence, specifying the matters as

mentioned in section 9L, to the applicant.

Note:

For requirements for a notice of a decision to refuse to grant a

cannabis research licence, see section 15F.

9L Matters to be specified in a cannabis research licence

A cannabis research licence must specify the following:

(a) the name of the licence holder;

(b) the activities authorised by the licence, and the extent to

which those activities are authorised only in accordance with

one or more cannabis research permits held by the licence

holder;

the obtaining and cultivation of cannabis plants, and the

production of cannabis or cannabis resin, as the case requires,

is authorised by the licence in accordance with a cannabis

research permit;

Amendments relating to medicinal cannabis Schedule 1

No. , 2016

Narcotic Drugs Amendment Bill 2016

(d) the premises at which other activities relating to such

obtaining, cultivation or production is authorised by the

licence;

(e) the persons authorised by the licence to engage in activities

authorised by the licence;

(f) the conditions (if any) imposed by the Secretary under

section 9J;

(g) the period for which the licence is in force;

(h) that the Secretary may, in accordance with section 15, require

the destruction of cannabis plants, cannabis or cannabis resin

in the licence holder's possession or control.

9M Period in force of a cannabis research licence

A cannabis research licence ceases to be in force:

(a) at the end of the period for which it is expressed to be in

force; or

(b) if it is revoked earlier--when it is revoked.

9N Holder of a cannabis research licence may apply for a cannabis

research permit

(1) The holder of a cannabis research licence may apply for a permit (a

cannabis research permit) in relation to activities that are

authorised by the licence only in accordance with such a permit.

(2) The application must be made in the form or manner approved in

writing by the Secretary, and must:

(a) contain the information (if any) prescribed by the regulations;

and

(b) contain the information (if any) specified in writing by the

Secretary; and

regulations; and

(d) be accompanied by the documents (if any) specified in

writing by the Secretary.

Note:

The Secretary may also require additional information and documents

from the applicant at any time: see subsection 14J(1).

Schedule 1 Amendments relating to medicinal cannabis

Narcotic Drugs Amendment Bill 2016

No. , 2016

(3) The application must be accompanied by the application fee (if

any) prescribed by the regulations.

(4) The application may be withdrawn at any time before a decision is

made on the application, but the application fee is not refundable.

9P Secretary must make a decision on an application for a cannabis

research permit

(1) If a person has made an application for a cannabis research permit,

the Secretary must decide whether to grant, or refuse to grant, the

permit.

(2) The Secretary may, subject to subsections (3) and (4), grant a

cannabis research permit if the Secretary considers it appropriate in

all the circumstances to do so.

(3) The Secretary may refuse to grant a cannabis research permit if the

Secretary is satisfied on reasonable grounds that the holder of the

cannabis research licence to which the permit relates has breached

a condition of the licence.

(4) The Secretary must refuse to grant a cannabis research permit if:

(a) the application fee (if any) has not been paid; or

(b) the applicant has not complied with a requirement under

subsection 14J(1) (additional information) in relation to the

application.

10 Notification of decision

If the Secretary decides to grant a cannabis research permit that

relates to a cannabis research licence, the Secretary must, as soon

as practicable:

(a) notify the licence holder, in writing, of the Secretary's

decision; and

(b) provide a copy of the permit, specifying the matters as

mentioned in section 10A, to the licence holder.

Note:

For requirements for a notice of a decision to refuse to grant a

cannabis research permit, see section 15F.

Amendments relating to medicinal cannabis Schedule 1

No. , 2016

Narcotic Drugs Amendment Bill 2016

10A Matters to be specified in a cannabis research permit

Cannabis research permits--cultivation

(1) Without limiting the matters that the Secretary may specify in a

cannabis research permit that relates to a licence that authorises the

cultivation of cannabis plants, the Secretary may specify one or

more of the following that are authorised by the licence in

accordance with the permit:

(a) the types and strains of cannabis plants that may be

cultivated;

(b) the maximum size of the cannabis crop that may be

cultivated;

of the Secretary, having regard to Australia's obligations

under the Convention, it is necessary for the licence holder to

have in the holder's possession or control at any time for

conducting the research authorised by the licence;

(d) the period during which cannabis plants may be cultivated;

(e) the period for which the permit is in force;

(f) any matters prescribed by the regulations.

Note:

A cannabis plant includes the seeds of a cannabis plant (see

subsection 4(1)).

Cannabis research permits--production

(2) Without limiting the matters that the Secretary may specify in a

cannabis research permit that relates to a licence that authorises the

production of cannabis or cannabis resin, the Secretary may specify

one or more of the following that are authorised by the licence in

accordance with the permit:

(a) the maximum quantity of cannabis or cannabis resin that may

be produced;

(b) the maximum quantity of cannabis or cannabis resin that, in

the opinion of the Secretary, having regard to Australia's

obligations under the Convention, it is necessary for the

licence holder to produce at any time for conducting the

research authorised by the licence;

be produced;

Schedule 1 Amendments relating to medicinal cannabis

Narcotic Drugs Amendment Bill 2016

No. , 2016

(d) the period for which the permit is in force;

(e) any matters prescribed by the regulations.

10B Period in force of a cannabis research permit

A cannabis research permit ceases to be in force:

(a) at the end of the period for which it is expressed to be in

force; or

(b) if it is revoked or taken to be revoked earlier--when it is

revoked or taken to be revoked.

Note:

A cannabis research permit is taken to be revoked if the cannabis

research licence to which the permit relates is revoked: see

subsection 10P(4).

Division 3--Conditions of cannabis licences

10C Cannabis licence is subject to conditions

A cannabis licence is subject to the following conditions:

(a) the conditions set out in sections 10E to 10K;

(b) the conditions (if any) prescribed by the regulations;

sections 8K, 9J, 10D and 10M).

10D Conditions that may be prescribed or imposed

(1) The conditions of a cannabis licence that may be prescribed or

imposed may relate to, but are not limited to, the following:

(a) matters relating to the activities authorised by the licence,

including activities authorised in accordance with a permit;

(b) the supply, delivery, dealing in any way with, transportation

and disposal of cannabis plants cultivated or obtained, or

cannabis or cannabis resin produced, under the licence in

accordance with a permit;

particular effect upon humans of cannabis or cannabis resin,

but not so as to prevent the specification of factual material;

(d) waste disposal;

Amendments relating to medicinal cannabis Schedule 1

No. , 2016

Narcotic Drugs Amendment Bill 2016

(e) the destruction of cannabis plants, parts of cannabis plants,

cannabis or cannabis resin, including the specification of the

circumstances in which:

(i) destruction must not occur without the Secretary's

permission; or

(ii) destruction must occur;

(f) documentation and record-keeping in respect of activities to

which the licence relates;

(g) facilities and containment in respect of the cultivation or

production authorised by the licence, including requirements

relating to the following:

(i) the security of premises;

(ii) the certification of premises or facilities to specified

containment levels;

(h) the safety, security and surveillance of land and premises;

(i) access to land and premises on which activities authorised by

the licence are, are to be, or have been, undertaken;

(j) measures to manage risks posed to the health and safety of

people, or to the environment;

(k) data collection, including studies to be conducted;

(l) information that is to be provided, whether on request by the

Secretary, on a regular basis or on the occurrence of a

particular event, and the times at which, or periods within

which, such information is to be provided;

(m) the taking of samples of any thing to which the licence relates

and the removal and testing of such samples;

(n) auditing and reporting;

(o) actions to be taken in case of loss, theft, spoilage or

destruction (however occurring) of cannabis plants cultivated

or obtained, or cannabis or cannabis resin produced, under

(or purportedly under) the licence;

(p) compliance with the following (however described):

(i) a code of practice;

(ii) a technical or procedural guideline (however described);

(iii) a prescribed quality standard;

(q) contingency planning;

(r) matters relating to the employment of staff or the engagement

of contractors;

Schedule 1 Amendments relating to medicinal cannabis

Narcotic Drugs Amendment Bill 2016

No. , 2016

(s) advertising to the public by the licence holder in relation to

cannabis plants, cannabis or cannabis resin.

(2) Cannabis licence conditions may include conditions requiring the

licence holder to be adequately insured against any loss, damage,

or injury that may be caused to human health, property or the

environment by activities undertaken under (or purportedly under)

the licence.

10E Condition that cannabis licence holder inform people of

obligations

(1) It is a condition of a cannabis licence that the licence holder inform

any person authorised by the licence:

(a) to engage in the obtaining or cultivation of cannabis plants,

or activities related to such obtaining or cultivation; or

(b) to engage in the production of cannabis or cannabis resin, or

activities related to such production;

of the following:

variation or revocation of such a condition;

(d) the revocation of the licence and of any permit that relates to

the licence and is relevant to the person;

(e) the giving of one or more directions in relation to the licence

under Part 3 of Chapter 5.

(2) Requirements in relation to the manner in which information is

provided under subsection (1) may be:

(a) prescribed by the regulations; or

(b) specified by the Secretary.

(3) A reference in subsection (1) to a licence holder or a person

authorised under a cannabis licence is, in the case of revocation of

the licence, taken to be a reference to a person who was the licence

holder, or was so authorised, immediately before that revocation.

Amendments relating to medicinal cannabis Schedule 1

No. , 2016

Narcotic Drugs Amendment Bill 2016

10F Condition that cannabis licence holder employ or engage

suitable staff

(1) It is a condition of a cannabis licence that the licence holder take

all reasonable steps not to employ or engage a person to carry out

activities authorised by the licence if:

(a) the person is aged under 18 years; or

(b) the person has been convicted of a serious offence during the

period of 5 years before the employment or engagement; or

authorised by a cannabis licence under regulations made for

the purposes of subsection (2); or

(d) the person is included in a class of persons prescribed by the

regulations for the purposes of this paragraph.

(2) The regulations may prescribe circumstances in which a person is

taken not to be suitable to carry out activities authorised by a

cannabis licence, including but not limited to circumstances

relating to the following:

(a) a person's criminal record;

(b) a person's employment history.

10G Condition that certain activities are undertaken in accordance

with a cannabis permit

Medicinal cannabis licence

(1) It is a condition of a medicinal cannabis licence that the licence

holder, and other persons authorised by the licence to obtain or

cultivate cannabis plants, or to produce cannabis or cannabis resin,

do so in accordance with a medicinal cannabis permit.

Cannabis research licence

(2) It is a condition of a cannabis research licence that the licence

holder, and other persons authorised by the licence to obtain or

cultivate cannabis plants, or to produce cannabis or cannabis resin,

do so in accordance with a cannabis research permit.

Schedule 1 Amendments relating to medicinal cannabis

Narcotic Drugs Amendment Bill 2016

No. , 2016

10H Condition about monitoring and inspection

It is a condition of a cannabis licence that, if a person is authorised

by the licence:

(a) to obtain or cultivate cannabis plants or to produce cannabis

or cannabis resin; or

(b) to engage in activities related to such obtaining, cultivation or

production;

the person allow the Secretary, or a person authorised by the

Secretary, to:

where the obtaining, cultivation, production or activity is

being undertaken, for the purposes of the following:

(i) inspecting or monitoring the obtaining, cultivation,

production or activity;

(ii) checking whether the obtaining, cultivation, production

or activity is being carried out as authorised by the

licence in accordance with a cannabis permit, and

whether licence conditions are being complied with; and

(d) take samples of any thing at such land or premises and

remove and test such samples.

10J Condition that medicinal cannabis licence holder be a party to

certain contracts

Licence authorising cultivation but not production

(1) If, at a particular time:

(a) a medicinal cannabis licence authorises the obtaining or

cultivation of cannabis plants for the purposes of producing

cannabis or cannabis resin, but does not also authorise the

production of cannabis or cannabis resin; and

(b) a medicinal cannabis permit that relates to such cultivation is

in force;

it is a condition of the licence that a contract that deals with matters

prescribed by the regulations is in existence between:

(d) the holder of another medicinal cannabis licence that

authorises the production of cannabis or cannabis resin.

Amendments relating to medicinal cannabis Schedule 1

No. , 2016

Narcotic Drugs Amendment Bill 2016

Licence authorising production

(2) If, at a particular time:

(a) a medicinal cannabis licence authorises the production of

cannabis or cannabis resin; and

(b) a medicinal cannabis permit that relates to such production is

in force;

it is a condition of the licence that:

regulations is in existence between the holder of the

medicinal cannabis licence and the holder of a licence under

this Act that authorises:

(i) the manufacture of one or more drugs that are medicinal

cannabis products; or

(ii) the manufacture of a drug for the purposes of research

in relation to medicinal cannabis products; or

(d) the holder of the medicinal cannabis licence holds a licence

that authorises such manufacture.

(3) A contract of a kind referred to in subsection (1) or (2) is not

required to be in existence:

(a) in the circumstances (if any) prescribed by the regulations; or

(b) if the Secretary determines in a particular case that such a

contract is not required to be in existence.

10K Condition that licence holder notify the Secretary of certain

matters

It is a condition of a cannabis licence that the licence holder notify

the Secretary as soon as reasonably practicable after any of the

following matters comes to the attention of the licence holder:

(a) a matter that may affect whether the licence holder is a fit

and proper person to hold the licence, or whether a business

associate of the licence holder (in relation to a business

relating to the licence or in relation to any other business) is a

fit and proper person to be associated with the holder of such

a licence;

(b) a breach of the licence;

revoke the licence or a permit to which the licence relates;

Schedule 1 Amendments relating to medicinal cannabis

Narcotic Drugs Amendment Bill 2016

No. , 2016

(d) any matter prescribed by the regulations.

Note:

Section 24B deals with the privilege against self-incrimination.

10L Sections 10E to 10K do not limit conditions that may be

imposed or prescribed

Sections 10E to 10K do not limit the conditions that may be

imposed by the Secretary or prescribed by the regulations.

Division 4--Variation and revocation of cannabis licences

and cannabis permits

10M Variation of cannabis licences and cannabis permits

(1) The Secretary may vary a cannabis licence, or a cannabis permit

that relates to a cannabis licence, by notice in writing given to the

licence holder:

(a) at any time, on the Secretary's own initiative; or

(b) on application by the licence holder.

Note:

For requirements for a notice of a decision under paragraph (1)(a) to

vary a cannabis licence or cannabis permit, see section 15F.

(2) The Secretary may vary a cannabis licence or a cannabis permit if

the Secretary considers it appropriate in all the circumstances to do

so.

(3) Despite subsection (2), the Secretary must not vary a cannabis

licence or a cannabis permit if:

(a) the Secretary is satisfied on reasonable grounds that the

variation of the licence or permit would not be consistent

with Australia's obligations under the Convention; or

(b) the Secretary is satisfied on reasonable grounds that one or

more circumstances exist that are prescribed by the

regulations as circumstances in which a licence or permit

must not be varied; or

(i) the application fee (if any) has not been paid; or

(ii) the applicant has not complied with a requirement under

subsection 14J(1) (additional information) in relation to

the application.

Amendments relating to medicinal cannabis Schedule 1

No. , 2016

Narcotic Drugs Amendment Bill 2016

(4) Without limiting subsection (1), the Secretary may:

(a) vary a cannabis licence to impose licence conditions or

additional licence conditions, or

(b) vary a cannabis licence to remove or vary licence conditions

that were imposed by the Secretary under section 8K or 9J or

paragraph (a) of this subsection; or

activities authorised by the licence or the persons authorised

by the licence to engage in activities authorised by the

licence.

(5) If the Secretary decides to vary a cannabis licence or a cannabis

permit to which the licence relates, the Secretary must give the

licence or permit as varied to the licence holder.

(6) A variation of a cannabis licence or a cannabis permit takes effect

on the day specified in the notice under subsection (1).

10N Applications for variation of cannabis licences and permits

(1) An application for a variation of a cannabis licence or a cannabis

permit must be in writing, and must:

(a) contain the information (if any) prescribed by the regulations;

and

(b) contain the information (if any) specified in writing by the

Secretary; and

regulations; and

(d) be accompanied by the documents (if any) specified in

writing by the Secretary.

Note:

The Secretary may also require additional information and documents

from the applicant at any time: see subsection 14J(1).

(2) The application for a variation must be accompanied by the

application fee (if any) prescribed by the regulations.

(3) The application may be withdrawn at any time before a decision is

made on the application, but the application fee is not refundable.

(4) If an application has been made for variation of a cannabis licence

or a cannabis permit, the Secretary may refuse to vary the licence

or permit.

Schedule 1 Amendments relating to medicinal cannabis

Narcotic Drugs Amendment Bill 2016

No. , 2016

Note:

For requirements for a notice of a decision to refuse to vary a cannabis

licence or a cannabis permit on application, see section 15F.

10P Revocation of cannabis licence and cannabis permit

(1) The Secretary must, by notice in writing given to the holder of a

cannabis licence, revoke the cannabis licence if the Secretary is

satisfied on reasonable grounds:

(a) that the licence holder, or if the licence holder is a body

corporate, any of the directors of the body corporate, has

engaged in conduct that constitutes a serious offence since

the licence was granted; or

(b) that the licence holder is no longer a fit and proper person to

hold the licence; or

proper person (whether in relation to a business relating to

the licence or in relation to any other business) to be

associated with the holder of a cannabis licence.

(2) The Secretary may, by notice in writing given to the holder of a

cannabis licence, revoke the licence, or a cannabis permit that

relates to that licence, if the Secretary is satisfied on reasonable

grounds:

(a) that a condition of the licence has been breached; or

(b) that the licence holder has engaged in conduct that constitutes

an offence against this Act; or

or varied on the basis of information that:

(i) was false or misleading in a material particular; or

(ii) omitted a matter or thing without which the information

was misleading in a material particular; or

(d) that the continuation in force of the licence or permit, as the

case requires, would not be consistent with Australia's

obligations under the Convention; or

(e) that the location, facilities or security arrangements at the

land or premises at which activities authorised by the licence

take place are not suitable for those activities; or

(f) that the licence holder has ceased to carry on all activities

authorised by the licence; or

Amendments relating to medicinal cannabis Schedule 1

No. , 2016

Narcotic Drugs Amendment Bill 2016

(g) that activities authorised by the licence to be undertaken at

specified land or premises by the licence holder or another

person have been undertaken by the licence holder or the

other person, as the case requires, other than at that land or

those premises; or

(h) that the licence holder is not taking all reasonable measures

to ensure the physical security of cannabis plants, cannabis or

cannabis resin in the holder's possession or control; or

(i) that the licence holder has not provided information required

by a notice given under subsection 14J(2) within the time

specified in the notice; or

(j) that circumstances prescribed by the regulations for the

purposes of this paragraph exist.

(3) The revocation of a cannabis licence or a cannabis permit takes

effect on the day specified in the notice under subsection (1) or (2).

(4) If a cannabis licence is revoked, any cannabis permit that relates to

the licence is taken to be revoked at the time of the revocation of

the licence.

Note:

For requirements for a notice of a decision to revoke a cannabis

licence or a cannabis permit, see section 15F.

11 Secretary to notify of proposed revocation

(1) Before revoking under section 10P a cannabis licence, or a

cannabis permit that relates to a cannabis licence, the Secretary

must give written notice of the proposed revocation to the licence

holder.

(2) A notice under subsection (1) in relation to a cannabis licence or a

cannabis permit must:

(a) state that the Secretary proposes to revoke the licence or

permit, as the case requires, and the reasons for the proposed

revocation; and

(b) invite the licence holder to make a written submission to the

Secretary about the proposed revocation.

(3) A notice under subsection (1) must specify a period within which

the licence holder may make a submission under paragraph (2)(b).

The period must not end earlier than 30 days after the day on

which the notice was given.

Schedule 1 Amendments relating to medicinal cannabis

Narcotic Drugs Amendment Bill 2016

No. , 2016

(4) In considering whether to vary or revoke a cannabis licence or a

cannabis permit, the Secretary must have regard to any submission

made under paragraph (2)(b).

11A Suspension or surrender of cannabis licences and cannabis

permits

The regulations may make provision for and in relation to the

suspension or surrender of cannabis licences and cannabis permits.

Part 3--Offences and civil penalties relating to

medicinal cannabis

11B Unauthorised cultivation of cannabis plants etc.

(1) A person who is a licence holder contravenes this subsection if:

(a) the person obtains or cultivates a cannabis plant for the

production of cannabis or cannabis resin, or does a thing in

connection with such obtaining or cultivation; and

(b) the obtaining or cultivation of the cannabis plant, or the doing

of the thing, by the person is not authorised by or under one

of the following:

(i) a medicinal cannabis licence;

(ii) a cannabis research licence.

Fault-based offence

(2) A person commits an offence if the person contravenes

subsection (1).

Note:

See section 24A in relation to the physical elements of the offence.

Penalty: Imprisonment for 10 years, or 600 penalty units, or both.

Strict liability offence

(3) A person commits an offence of strict liability if the person

contravenes subsection (1).

Penalty: 60 penalty units.

Amendments relating to medicinal cannabis Schedule 1

No. , 2016

Narcotic Drugs Amendment Bill 2016

Civil penalty provision

(4) A person is liable to a civil penalty if the person contravenes

subsection (1).

Civil penalty:

1,000 penalty units.

11C Breach of condition of a cannabis licence--cultivation

(1) A person contravenes this subsection if:

(a) the person is authorised by a cannabis licence to cultivate

cannabis plants in accordance with a cannabis permit, or to

engage in activities related to such cultivation; and

(b) the person breaches a condition of the cannabis licence; and

purposes of this paragraph.

Fault-based offence

(2) A person commits an offence if the person contravenes

subsection (1).

Note:

See section 24A in relation to the physical elements of the offence.

Penalty: Imprisonment for 10 years, or 600 penalty units, or both.

Strict liability offence

(3) A person commits an offence of strict liability if the person

contravenes subsection (1).

Penalty: 60 penalty units.

Civil penalty provision

(4) A person is liable to a civil penalty if the person contravenes

subsection (1).

Civil penalty:

1,000 penalty units.

11D Unauthorised production of cannabis or cannabis resin

(1) A person who is a licence holder contravenes this subsection if:

Schedule 1 Amendments relating to medicinal cannabis

Narcotic Drugs Amendment Bill 2016

No. , 2016

(a) the person produces cannabis or cannabis resin, or does a

thing in connection with such production; and

(b) the production of the cannabis or the cannabis resin, or the

doing of the thing, by the person is not authorised by or under

one of the following:

(i) a medicinal cannabis licence;

(ii) a cannabis research licence.

Fault-based offence

(2) A person commits an offence if the person contravenes

subsection (1).

Note:

See section 24A in relation to the physical elements of the offence.

Penalty: Imprisonment for 10 years, or 600 penalty units, or both.

Strict liability offence

(3) A person commits an offence of strict liability if the person

contravenes subsection (1).

Penalty: 60 penalty units.

Civil penalty provision

(4) A person is liable to a civil penalty if the person contravenes

subsection (1).

Civil penalty:

1,000 penalty units.

11E Breach of condition of a cannabis licence--production

(1) A person contravenes this subsection if:

(a) the person is authorised by a cannabis licence to produce

cannabis or cannabis resin, in accordance with a cannabis

permit, or to engage in activities related to such production;

and

(b) the person breaches a condition of the cannabis licence; and

purposes of this paragraph.

Amendments relating to medicinal cannabis Schedule 1

No. , 2016

Narcotic Drugs Amendment Bill 2016

Fault-based offence

(2) A person commits an offence if the person contravenes

subsection (1).

Note:

See section 24A in relation to the physical elements of the offence.

Penalty: Imprisonment for 10 years, or 600 penalty units, or both.

Strict liability offence

(3) A person commits an offence of strict liability if the person

contravenes subsection (1).

Penalty: 60 penalty units.

Civil penalty provision

(4) A person is liable to a civil penalty if the person contravenes

subsection (1).

Civil penalty:

1,000 penalty units.

Chapter 3--Licensing the manufacturing of

drugs

Part 1--Introduction

11F Simplified outline of this Chapter

A manufacture licence may authorise the manufacture of a drug

and activities related to such manufacture, including manufacture

for the purposes of research relating to medicinal cannabis

products.

Before a licence holder can manufacture a drug, the licence holder

must obtain a manufacture permit. Permits deal with matters such

as the types and quantities of drugs that can be manufactured.

Certain conditions are imposed on all manufacture licence holders,

and the Secretary may impose additional conditions.

Schedule 1 Amendments relating to medicinal cannabis

Narcotic Drugs Amendment Bill 2016

No. , 2016

Manufacture licences and manufacture permits can be varied or

revoked in certain circumstances.

There are offences and civil penalties relating to the manufacture

of drugs.

Part 2--Licences and permits

Division 1--Manufacture licences and permits

11G Person may apply for a manufacture licence

(1) A person may apply to the Secretary for a licence (a manufacture

licence) that authorises one or more of the following activities:

(a) the manufacture of a drug in accordance with one or more

manufacture permits;

(b) activities relating to such manufacture, including but not

limited to the following (as applicable):

(i) the supply of the drug;

(ii) the packaging, transport, storage, possession and control

of the drug;

(iii) the disposal or destruction of the drug.

(2) The application must be made in the form or manner approved in

writing by the Secretary, and must:

(a) contain the information (if any) prescribed by the regulations;

and

(b) contain the information (if any) specified in writing by the

Secretary; and

regulations; and

(d) be accompanied by the documents (if any) specified in

writing by the Secretary.

Note:

The Secretary may also require additional information and documents

from the applicant at any time: see subsection 14J(1).

(3) The application must be accompanied by the application fee (if

any) prescribed by the regulations.

Amendments relating to medicinal cannabis Schedule 1

No. , 2016

Narcotic Drugs Amendment Bill 2016

(4) The application may be withdrawn at any time before a decision is

made on the application, but the application fee is not refundable.

11H Secretary must make a decision on an application for a

manufacture licence

(1) If a person has made an application for a manufacture licence, the

Secretary must decide whether to grant, or refuse to grant, the

licence.

(2) The Secretary may, subject to sections 11J and 11K, grant a

manufacture licence if the Secretary considers it appropriate in all

the circumstances to do so.

(3) For the purposes of deciding whether to grant, or refuse to grant, a

manufacture licence, the Secretary:

(a) must have regard to the following:

(i) the information and documents provided by the

applicant;

(ii) any advice or information received in response to a

request or requirement under section 14J, 14K or 14L

including, in particular, advice provided by an agency of

a State or Territory in which any activities proposed to

be authorised by the licence will take place;

(iii) any other matter prescribed by the regulations; and

(b) may have regard to any other matter relating to the conduct

of activities authorised by the licence and to the distribution,

use and possession of drugs manufactured under the licence;

and

relevant; and

(d) may require the applicant to provide access to land or

premises at which activities proposed to be authorised by the

licence will take place, for the purposes of inspecting the land

or premises.

11J General circumstances in which Secretary must refuse to grant

a manufacture licence

(1) The Secretary must refuse to grant a manufacture licence if:

(a) the Secretary is not satisfied on reasonable grounds that:

Schedule 1 Amendments relating to medicinal cannabis

Narcotic Drugs Amendment Bill 2016

No. , 2016

(i) the applicant is a fit and proper person to hold the

licence; and

(ii) each of the applicant's relevant business associates for

the application (see subsection (2)), whether in relation

to a business relating to the manufacture licence, or in

relation to any other business, is a fit and proper person

to be associated with the holder of a manufacture

licence; or

(b) subject to subsection 11K(3)--the Secretary is satisfied on

reasonable grounds that:

(i) the applicant; or

(ii) if the applicant is a body corporate, any of the directors

of the body corporate;

has engaged in conduct that constitutes a serious offence

during the 10 years immediately before the date of the

application; or

of the licence would not be consistent with Australia's

obligations under the Convention; or

(d) the Secretary is not satisfied on reasonable grounds that the

applicant will take all reasonable measures to ensure the

physical security of drugs or narcotic preparations:

(i) in the applicant's possession or control; and

(ii) manufactured under, or purportedly under, the licence;

(e) the Secretary is not satisfied on reasonable grounds of the

suitability of the location, facilities or proposed security

arrangements at the land or premises where activities

authorised by the licence will take place; or

(f) the Secretary is satisfied on reasonable grounds that one or

more circumstances exist that are prescribed by the

regulations as circumstances in which a licence must not be

granted; or

(g) the application fee (if any) has not been paid; or

(h) the applicant has not complied with a requirement under

subsection 14J(1) (additional information) in relation to the

application.

Amendments relating to medicinal cannabis Schedule 1

No. , 2016

Narcotic Drugs Amendment Bill 2016

Relevant business associate

(2) A business associate of an applicant is a relevant business associate

for the application if the Secretary considers it is reasonable, in the

circumstances of the application, to take that business associate

into account.

11K Particular rules about manufacture licences involving cannabis

etc.

Application of section

(1) This section applies to an application for a manufacture licence that

will authorise the manufacture of a drug that includes, or is from,

any part of the cannabis plant.

Particular circumstances in which Secretary must refuse to grant a

manufacture licence

(2) The Secretary must refuse to grant the licence if the Secretary is

not satisfied on reasonable grounds of one of the following:

(a) in the case of any such drug (including, but not limited to, a

drug that is a medicinal cannabis product)--that the drug is

for the purposes of research in relation to medicinal cannabis

products, and the applicant:

(i) has the appropriate financial resources, other resources

and expertise that are necessary to carry out such

research; or

(ii) is included in a class of persons prescribed by the

regulations;

(b) that the drug is a medicinal cannabis product that will be:

(i) supplied for the purposes of use in a clinical trial that is,

or is likely to be, approved under the Therapeutic Goods

Act 1989 or notified to the Secretary under that Act; or

(ii) otherwise supplied in accordance with an approval or

authority under the Therapeutic Goods Act 1989; or

(iii) supplied in circumstances prescribed by the regulations;

registered goods within the meaning of the Therapeutic

Goods Act 1989.

Schedule 1 Amendments relating to medicinal cannabis

Narcotic Drugs Amendment Bill 2016

No. , 2016

Special rule in exceptional circumstances

(3) Paragraph 11J(1)(b) does not prevent the Secretary from granting

the licence if the Secretary is satisfied that:

(a) the conduct referred to in that paragraph:

(i) constitutes a serious offence solely because it involves

the cultivation or obtaining of the cannabis plant, or the

production or supply of cannabis or cannabis resin or of

products containing cannabis or cannabis resin; and

(ii) was fully disclosed in the application; and

(b) if the licence were granted, the applicant could comply with

all the requirements of the licence and this Act.

However, this subsection does not require the Secretary to grant

the licence even if the Secretary is so satisfied.

11L Secretary may impose conditions

If the Secretary grants a manufacture licence, the Secretary may

impose conditions to which the licence is subject including, but not

limited to, conditions relating to matters set out in section 12F.

Note 1:

For requirements for a notice of a decision to impose conditions on a

manufacture licence, see section 15F.

Note 2:

Conditions are also specified in this Act (see sections 12G to 12N),

and may also be prescribed by the regulations (see paragraph 12E(b)).

11M Notification of decision

If the Secretary decides to grant a manufacture licence, the

Secretary must, as soon as practicable:

(a) notify the applicant for the licence, in writing, of the

Secretary's decision; and

(b) provide a copy of the licence, specifying the matters as

mentioned in section 11N, to the applicant.

Note:

For requirements for a notice of a decision to refuse to grant a

manufacture licence, see section 15F.

11N Matters to be specified in a manufacture licence

A manufacture licence must specify the following:

(a) the name of the licence holder;

Amendments relating to medicinal cannabis Schedule 1

No. , 2016

Narcotic Drugs Amendment Bill 2016

(b) the activities authorised by the licence, including the

manufacture of specified drugs, and the extent to which those

activities are authorised only in accordance with one or more

manufacture permits held by the licence holder;

by the licence in accordance with one or more manufacture

permits;

(d) the premises at which other activities relating to such

manufacture is authorised by the licence;

(e) the persons authorised by the licence to engage in activities

authorised by the licence;

(f) the conditions (if any) imposed by the Secretary under

section 11L;

(g) the period for which the licence is in force;

(h) that the Secretary may, in accordance with section 15, require

the destruction of drugs or narcotic preparations in the

licence holder's possession or control;

(i) the purposes for which, or the circumstances in which, any

medicinal cannabis product manufactured under the licence is

to be supplied.

11P Period in force of a manufacture licence

A manufacture licence ceases to be in force:

(a) at the end of the period for which it is expressed to be in

force; or

(b) if it is revoked earlier--when it is revoked.

12 Holder of a manufacture licence may apply for a manufacture

permit

(1) The holder of a manufacture licence may apply for a permit (a

manufacture permit) in relation to activities that are authorised by

the licence only in accordance with such a permit.

(2) The application must be made in the form or manner approved in

writing by the Secretary, and must:

(a) contain the information (if any) prescribed by the regulations;

and

Schedule 1 Amendments relating to medicinal cannabis

Narcotic Drugs Amendment Bill 2016

No. , 2016

(b) contain the information (if any) specified in writing by the

Secretary; and

regulations; and

(d) be accompanied by the documents (if any) specified in

writing by the Secretary.

Note:

The Secretary may also require additional information and documents

from the applicant at any time: see subsection 14J(1).

(3) The application must be accompanied by the application fee (if

any) prescribed by the regulations.

(4) The application may be withdrawn at any time before a decision is

made on the application, but the application fee is not refundable.

12A Secretary must make a decision on an application for a

manufacture permit

(1) If the holder of a manufacture licence has made an application for a

manufacture permit, the Secretary must decide whether to grant, or

refuse to grant, the permit.

(2) The Secretary may, subject to subsections (3) and (4), grant a

manufacture permit if the Secretary considers it appropriate in all

the circumstances to do so.

(3) The Secretary may refuse to grant a manufacture permit if the

Secretary is satisfied on reasonable grounds that the holder of the

manufacture licence to which the permit relates has breached a

condition of the licence.

(4) The Secretary must refuse to grant a manufacture permit if:

(a) the application fee (if any) has not been paid; or

(b) the applicant has not complied with a requirement under

subsection 14J(1) (additional information) in relation to the

application.

12B Notification of decision

If the Secretary decides to grant a manufacture permit that relates

to a manufacture licence, the Secretary must, as soon as

practicable:

Amendments relating to medicinal cannabis Schedule 1

No. , 2016

Narcotic Drugs Amendment Bill 2016

(a) notify the licence holder, in writing, of the Secretary's

decision; and

(b) provide a copy of the permit, specifying the matters as

mentioned in section 12C, to the licence holder.

Note:

For requirements for a notice of a decision to refuse to grant a

manufacture permit, see section 15F.

12C Matters to be specified in a manufacture permit

Without limiting the matters that the Secretary may specify in a

manufacture permit that relates to a licence that authorises the

manufacture of a drug, the Secretary may specify one or more of

the following that are authorised by the licence in accordance with

the permit:

(a) the maximum quantity of the drug that may be manufactured

at premises specified in the permit;

(b) the maximum quantity of the drug that, in the opinion of the

Secretary, having regard to prevailing market conditions, it is

necessary for the licence holder to have in the holder's

possession or control at any time for the normal conduct of

business;

(d) the period for which the permit is in force;

(e) any matter prescribed by the regulations.

12D Period in force of a manufacture permit

A manufacture permit ceases to be in force:

(a) at the end of the period for which it is expressed to be in

force; or

(b) if it is revoked or taken to be revoked earlier--when it is

revoked or taken to be revoked.

Note:

A manufacture permit is taken to be revoked if the manufacture

licence to which the permit relates is revoked: see subsection 13B(4).

Division 2--Conditions of manufacture licences

12E Manufacture licence is subject to conditions

A manufacture licence is subject to the following conditions:

Schedule 1 Amendments relating to medicinal cannabis

Narcotic Drugs Amendment Bill 2016

No. , 2016

(a) the conditions set out in sections 12G to 12N;

(b) the conditions (if any) prescribed by the regulations;

sections 11L, 12F and 13).

12F Conditions that may be prescribed or imposed

The conditions of a manufacture licence that may be prescribed or

imposed may relate to, but are not limited to, the following:

(a) matters relating to the activities authorised by the licence,

including activities authorised in accordance with a permit;

(b) the supply, delivery, dealing in any way with, transportation

and disposal of drugs manufactured under the licence;

particular effect upon humans of a drug or narcotic

preparation that contains cannabis or cannabis resin, but not

so as to prevent the specification of factual material;

(d) waste disposal;

(e) the destruction of drugs, narcotic preparations and

by-products of such drugs or preparations;

(f) documentation and record-keeping in respect of activities to

which the licence relates;

(g) facilities and containment in respect of the manufacture

authorised by the licence, including requirements relating to

the following:

(i) the security of premises;

(ii) the certification of premises or facilities to specified

containment levels;

(h) the safety, security and surveillance of premises;

(i) access to land and premises on which activities authorised by

the licence are, are to be, or have been undertaken;

(j) measures to manage risks posed to the health and safety of

people, or to the environment;

(k) data collection, including studies to be conducted;

(l) information that is to be provided, whether on request by the

Secretary or on a regular basis, and the times at which, or

periods within which, such information is to be provided;

(m) the taking of samples of any thing to which the licence relates

and the removal and testing of such samples;

Amendments relating to medicinal cannabis Schedule 1

No. , 2016

Narcotic Drugs Amendment Bill 2016

(n) auditing and reporting;

(o) actions to be taken in case of loss, theft, spoilage or

destruction (however occurring) of drugs manufactured,

under (or purportedly under) the licence, or of narcotic

preparations;

(p) compliance with the following (however described):

(i) a code of practice;

(ii) a technical or procedural guideline (however described);

(q) contingency planning;

(r) matters relating to the employment of staff or the engagement

of contractors;

(s) advertising to the public by the licence holder in relation to

drugs or narcotic preparations that contain cannabis plants,

cannabis or cannabis resin;

(t) the labelling of medicinal cannabis products.

12G Condition that manufacture licence holder inform people of

obligations

(1) It is a condition of a manufacture licence that the licence holder

inform any person authorised by the licence to engage in the

manufacture of drugs, or activities related to such manufacture, of

the following:

(a) each condition that is relevant to that person, including each

variation or revocation of such a condition;

(b) the revocation of the licence and of any permit that relates to

the licence and is relevant to the person;

under Part 3 of Chapter 5.

(2) Requirements in relation to the manner in which information is

provided under subsection (1) may be:

(a) prescribed by the regulations; or

(b) specified by the Secretary.

(3) A reference in subsection (1) to a licence holder or a person

authorised under a manufacture licence is, in the case of revocation

of the licence, taken to be a reference to the person who was the

licence holder, or was so authorised, immediately before that

revocation.

Schedule 1 Amendments relating to medicinal cannabis

Narcotic Drugs Amendment Bill 2016

No. , 2016

12H Condition that manufacture licence holder employ or engage

suitable staff

(1) It is a condition of a manufacture licence that the licence holder

take all reasonable steps not to employ or engage a person to carry

out activities authorised by the licence if:

(a) the person is aged under 18 years; or

(b) the person has been convicted of a serious offence during the

period of 5 years before the employment or engagement; or

authorised by a manufacture licence under regulations made

for the purposes of subsection (2); or

(d) the person is included in a class of persons prescribed by the

regulations for the purposes of this paragraph.

(2) The regulations may prescribe circumstances in which a person is

taken not to be suitable to carry out activities authorised by a

manufacture licence, including but not limited to circumstances

relating to the following:

(a) a person's criminal record;

(b) a person's employment history.

12J Condition that manufacture of drugs is in accordance with a

manufacture permit

It is a condition of a manufacture licence that the licence holder,

and other persons authorised by the licence to manufacture a drug,

do so in accordance with a manufacture permit.

12K Condition about monitoring and inspection

It is a condition of a manufacture licence that, if a person is

authorised by the licence:

(a) to manufacture a drug; or

(b) to engage in activities related to such manufacture;

the person allow the Secretary, or a person authorised by the

Secretary, to:

the manufacture or activity is being undertaken, for the

purposes of the following:

Amendments relating to medicinal cannabis Schedule 1

No. , 2016

Narcotic Drugs Amendment Bill 2016

(i) inspecting or monitoring the manufacture or activity;

(ii) checking whether the manufacture or activity is being

carried out as authorised by the licence in accordance

with a manufacture permit, and whether licence

conditions are being complied with; and

(d) take samples of any thing at such premises and remove and

test such samples.

12L Condition for manufacture licences authorising manufacture of

drugs that are medicinal cannabis products

It is a condition of a manufacture licence that authorises the

manufacture of one or more drugs that are medicinal cannabis

products that the licence holder does not supply the medicinal

cannabis products other than as mentioned in paragraph 11K(2)(b)

or (c).

12M Condition for manufacture licences authorising manufacture

for medicinal cannabis research

It is a condition of a manufacture licence that authorises the

manufacture of one or more drugs for the purposes of research in

relation to medicinal cannabis products that the manufacture of

those drugs is undertaken solely for those purposes.

12N Condition that licence holder notify the Secretary of certain

matters

It is a condition of a manufacture licence that the licence holder

notify the Secretary as soon as reasonably practicable after any of

the following matters comes to the attention of the licence holder:

(a) a matter that may affect whether the licence holder is a fit

and proper person to hold the licence, or whether a business

associate of the licence holder (in relation to a business

relating to the licence or in relation to any other business) is a

fit and proper person to be associated with the holder of such

a licence;

(b) a breach of the licence;

revoke the licence;

(d) any other matter prescribed by the regulations.

Schedule 1 Amendments relating to medicinal cannabis

Narcotic Drugs Amendment Bill 2016

No. , 2016

Note:

Section 24B deals with the privilege against self-incrimination.

12P Sections 12G to 12N do not limit conditions that may be

imposed or prescribed

Sections 12G to 12N do not limit the conditions that may be

imposed by the Secretary or prescribed by the regulations.

Division 3--Variation and revocation of manufacture

licences and manufacture permits

13 Variation of manufacture licences and manufacture permits

(1) The Secretary may vary a manufacture licence, or a manufacture

permit that relates to a manufacture licence, by notice in writing

given to the licence holder:

(a) at any time, on the Secretary's own initiative; or

(b) on application by the licence holder.

Note:

For requirements for a notice of a decision under paragraph (1)(a) to

vary a manufacture licence or manufacture permit, see section 15F.

(2) The Secretary may vary a manufacture licence or a manufacture

permit if the Secretary considers it appropriate in all the

circumstances to do so.

(3) Despite subsection (2), the Secretary must not vary a manufacture

licence or a manufacture permit if:

(a) the Secretary is satisfied on reasonable grounds that the

variation of the licence or permit would not be consistent

with Australia's obligations under the Convention; or

(b) the Secretary is satisfied on reasonable grounds that one or

more circumstances exist that are prescribed by the

regulations as circumstances in which a licence or permit

must not be varied; or

(i) the application fee (if any) has not been paid; or

(ii) the applicant has not complied with a requirement under

subsection 14J(1) (additional information) in relation to

the application.

(4) Without limiting subsection (1), the Secretary may:

Amendments relating to medicinal cannabis Schedule 1

No. , 2016

Narcotic Drugs Amendment Bill 2016

(a) vary a manufacture licence to impose licence conditions or

additional licence conditions; or

(b) vary a manufacture licence to remove or vary licence

conditions that were imposed by the Secretary under

section 11L or paragraph (a) of this subsection; or

activities authorised by the licence; or

(d) vary the persons authorised by the licence to engage in

activities authorised by the licence.

(5) If the Secretary decides to vary a manufacture licence or a

manufacture permit to which the licence relates, the Secretary must

give the licence or permit as varied to the licence holder.

(6) A variation of a manufacture licence or a manufacture permit takes

effect on the day specified in the notice under subsection (1).

13A Applications for variation of manufacture licences and permits

(1) An application for a variation of a manufacture licence or a

manufacture permit must be in writing, and must:

(a) contain the information (if any) prescribed by the regulations;

and

(b) contain the information (if any) specified in writing by the

Secretary; and

regulations; and

(d) be accompanied by the documents (if any) specified in

writing by the Secretary.

Note:

The Secretary may also require additional information and documents

from the applicant at any time: see subsection 14J(1).

(2) The application for a variation must be accompanied by the

application fee (if any) prescribed by the regulations.

(3) The application may be withdrawn at any time before a decision is

made on the application, but the application fee is not refundable.

(4) If an application has been made for variation of a manufacture

licence or a manufacture permit, the Secretary may refuse to vary

the licence or permit.

Schedule 1 Amendments relating to medicinal cannabis

Narcotic Drugs Amendment Bill 2016

No. , 2016

Note:

For requirements for a notice of a decision to refuse to vary a

manufacture licence or a manufacture permit on application, see

section 15F.

13B Revocation of manufacture licence and manufacture permit

(1) The Secretary must, by notice in writing given to the holder of a

manufacture licence, revoke the licence if the Secretary is satisfied

on reasonable grounds:

(a) that the licence holder, or if the licence holder is a body

corporate, any of the directors of the body corporate, has

engaged in conduct that constitutes a serious offence since

the licence was granted; or

(b) that the licence holder is no longer a fit and proper person to

hold the licence; or

proper person (whether in relation to a business relating to

the licence or in relation to any other business) to be

associated with the holder of a manufacture licence.

(2) The Secretary may, by notice in writing given to the holder of a

manufacture licence, revoke the licence or a manufacture permit

that relates to the licence if the Secretary is satisfied on reasonable

grounds:

(a) that a condition of the licence has been breached; or

(b) that the licence holder has engaged in conduct that constitutes

an offence against this Act; or

or varied on the basis of information that:

(i) was false or misleading in a material particular; or

(ii) omitted a matter or thing without which the information

was misleading in a material particular; or

(d) that the continuation in force of the licence or permit, as the

case requires, would not be consistent with Australia's

obligations under the Convention; or

(e) that the location, facilities or security arrangements at the

land or premises at which activities authorised by the licence

take place are not suitable for those activities; or

(f) the licence holder has ceased to carry on all activities

authorised by the licence; or

Amendments relating to medicinal cannabis Schedule 1

No. , 2016

Narcotic Drugs Amendment Bill 2016

(g) that activities authorised by the licence to be undertaken at

specified land or premises by the licence holder or another

person have been undertaken by the licence holder or the

other person, as the case requires, other than at that land or

those premises; or

(h) that the licence holder is not taking all reasonable measures

to ensure the physical security of drugs or narcotic

preparations in the holder's possession or control; or

(i) that the licence holder has not provided information required

by a notice given under subsection 14J(2) within the time

specified in the notice; or

(j) that circumstances prescribed by the regulations exist.

(3) The revocation of a manufacture licence or a manufacture permit

takes effect on the day specified in the notice under subsection (1)

or (2).

(4) If a manufacture licence is revoked, any manufacture permit that

relates to the licence is taken to be revoked at the time of the

revocation of the licence.

Note:

For requirements for a notice of a decision to revoke a manufacture

licence or a manufacture permit, see section 15F.

13C Secretary to notify of proposed revocation

(1) Before revoking under section 13B a manufacture licence or a

manufacture permit that relates to a manufacture licence, the

Secretary must give written notice of the proposed revocation to

the licence holder.

(2) A notice under subsection (1) in relation to a manufacture licence

or a manufacture permit must:

(a) state that the Secretary proposes to revoke the licence or

permit, as the case requires, and the reasons for the proposed

revocation; and

(b) invite the licence holder to make a written submission to the

Secretary about the proposed revocation.

(3) A notice under subsection (1) must specify a period within which

the licence holder may make a submission under paragraph (2)(b).

The period must not end earlier than 30 days after the day on

which the notice was given.

Schedule 1 Amendments relating to medicinal cannabis

Narcotic Drugs Amendment Bill 2016

No. , 2016

(4) In considering whether to vary or revoke a manufacture licence or

a manufacture permit, the Secretary must have regard to any

submission made under paragraph (2)(b).

13D Suspension or surrender of manufacture licences and

manufacture permits

The regulations may make provision for and in relation to the

suspension or surrender of manufacture licences and manufacture

permits.

Part 3--Offences and civil penalties relating to

manufacture of drugs

13E Unauthorised manufacture of drugs

(1) A person who is a licence holder contravenes this subsection if:

(a) the person manufactures drugs, or does a thing in connection

with such manufacture; and

(b) the manufacture of the drugs, or the doing of the thing, by the

person is not authorised by or under a manufacture licence.

Fault-based offence

(2) A person commits an offence if the person contravenes

subsection (1).

Note:

See section 24A in relation to the physical elements of the offence.

Penalty: Imprisonment for 10 years, or 600 penalty units, or both.

Strict liability offence

(3) A person commits an offence of strict liability if the person

contravenes subsection (1).

Penalty: 60 penalty units.

Civil penalty provision

(4) A person is liable to a civil penalty if the person contravenes

subsection (1).

Amendments relating to medicinal cannabis Schedule 1

No. , 2016

Narcotic Drugs Amendment Bill 2016

Civil penalty:

1,000 penalty units.

13F Breach of condition of a manufacture licence

(1) A person contravenes this subsection if:

(a) the person is authorised by a manufacture licence to

manufacture drugs in accordance with a manufacture permit,

or to engage in activities related to such manufacture; and

(b) the person breaches a condition of the manufacture licence;

and

purposes of this paragraph.

Fault-based offence

(2) A person commits an offence if the person contravenes

subsection (1).

Note:

See section 24A in relation to the physical elements of the offence.

Penalty: Imprisonment for 10 years, or 600 penalty units, or both.

Strict liability offence

(3) A person commits an offence of strict liability if the person

contravenes subsection (1).

Penalty: 60 penalty units.

Civil penalty provision

(4) A person is liable to a civil penalty if the person contravenes

subsection (1).

Civil penalty:

1,000 penalty units.

Schedule 1 Amendments relating to medicinal cannabis

Narcotic Drugs Amendment Bill 2016

No. , 2016

Chapter 4--Monitoring and enforcement

Part 1--Introduction

13G Simplified outline of this Chapter

Authorised inspectors have monitoring, inspection and

enforcement powers under the Regulatory Powers Act to ensure

this Act is being complied with. Specific powers are included for

the monitoring of licensed premises.

This Chapter also provides for the application of the Regulatory

Powers Act in relation to the following:

(a)

civil penalties;

(b)

infringement notices;

(c)

enforceable undertakings;

(d)

injunctions.

Part 2--Appointment of authorised inspectors

13H Appointment of authorised inspectors

(1) The Secretary may, in writing, appoint any of the following

persons as an authorised inspector for the purposes of this Act:

(a) an APS employee or an officer or employee of a

Commonwealth agency;

(b) an officer or employee of an agency of a State or Territory

that has functions relating to health, agriculture or law

enforcement.

(2) An authorised inspector is appointed for the period specified in the

instrument of appointment.

Note:

An authorised inspector is eligible for reappointment (see

section 33AA of the Acts Interpretation Act 1901).

Amendments relating to medicinal cannabis Schedule 1

No. , 2016

Narcotic Drugs Amendment Bill 2016

Part 3--Monitoring, inspection, investigation etc.

under the Regulatory Powers Act

13J Powers of issuing officers

Consent to conferral of powers

(1) An issuing officer may, by writing, consent to have powers

conferred by this Part.

Nomination by Minister

(2) The Minister may, by writing, nominate an issuing officer in

relation to whom a consent is in force under subsection (1) to

exercise powers conferred by this Part.

Powers conferred personally

(3) A power conferred on an issuing officer by this Part is conferred on

the issuing officer:

(a) in a personal capacity; and

(b) in relation to a Judge of a court created by the Parliament--

not as a court or a member of a court.

Protection and immunity--Deputy Presidents and non-presidential

members

(4) An issuing officer who is a Deputy President or non-presidential

member of the Administrative Appeals Tribunal exercising a

power conferred by this Part has the same protection and immunity

as a Justice of the High Court.

Note:

Subsections 34(3) and 75(3) of the Regulatory Powers Act confer

protection and immunity on a judge exercising the powers of an

issuing officer.

13K Monitoring powers under Part 2 of the Regulatory Powers Act

Provisions subject to monitoring

(1) A provision is subject to monitoring under Part 2 of the Regulatory

Powers Act if it is:

Schedule 1 Amendments relating to medicinal cannabis

Narcotic Drugs Amendment Bill 2016

No. , 2016

(a) an offence against this Act; or

(b) a civil penalty provision of this Act.

Note 1:

Part 2 of the Regulatory Powers Act creates a framework for

monitoring whether this Act has been complied with. It includes

powers of entry and inspection.

Note 2:

Part 4 of this Chapter contains special provisions about monitoring

licensed premises.

Information subject to monitoring

(2) Information given in compliance or purported compliance with a

provision of this Act is subject to monitoring under Part 2 of the

Regulatory Powers Act.

Note:

Part 2 of the Regulatory Powers Act creates a framework for

monitoring whether the information is correct. It includes powers of

entry and inspection.

Authorised applicant, authorised person, issuing officer, relevant

chief executive and relevant court

(3) For the purposes of Part 2 of the Regulatory Powers Act, as it

applies in relation to the provisions of this Act:

(a) the Secretary is an authorised applicant; and

(b) an authorised inspector is an authorised person; and

an issuing officer; and

(d) the Secretary is the relevant chief executive; and

(e) each relevant court (as defined in subsection 4(1) of this Act)

is a relevant court.

Person assisting

(4) An authorised person may be assisted by other persons in

exercising powers or performing functions or duties under Part 2 of

the Regulatory Powers Act in relation to the provisions of this Act.

Amendments relating to medicinal cannabis Schedule 1

No. , 2016

Narcotic Drugs Amendment Bill 2016

13L Modifications of Part 2 of the Regulatory Powers Act

Additional monitoring power

(1) For the purposes of Part 2 of the Regulatory Powers Act, the

additional powers mentioned in subsection (2) are also taken to be

monitoring powers for the purposes of determining:

(a) whether a provision mentioned in subsection 13K(1) has

been, or is being, complied with; or

(b) the correctness of information mentioned in

subsection 13K(2).

(2) The additional monitoring powers are:

(a) the power to sample any thing on premises entered under

Part 2 of the Regulatory Powers Act; and

(b) the power to remove and test such samples.

13M Investigation powers under Part 3 of the Regulatory Powers

Act

Provisions subject to investigation

(1) A provision is subject to investigation under Part 3 of the

Regulatory Powers Act if it is:

(a) an offence against this Act; or

(b) a civil penalty provision of this Act.

Note:

Part 3 of the Regulatory Powers Act creates a framework for

investigating whether a provision has been contravened. It includes

powers of entry, search and seizure.

Authorised applicant, authorised person, issuing officer, relevant

chief executive and relevant court

(2) For the purposes of Part 3 of the Regulatory Powers Act, as it

applies in relation to evidential material that relates to a provision

mentioned in subsection (1):

(a) the Secretary is an authorised applicant; and

(b) an authorised inspector is an authorised person; and

an issuing officer; and

(d) the Secretary is the relevant chief executive; and

Schedule 1 Amendments relating to medicinal cannabis

Narcotic Drugs Amendment Bill 2016

No. , 2016

(e) each relevant court (as defined in subsection 4(1) of this Act)

is a relevant court.

Person assisting

(3) An authorised person may be assisted by other persons in

exercising powers or performing functions or duties under Part 3 of

the Regulatory Powers Act in relation to evidential material that

relates to a provision mentioned in subsection (1).

13N Civil penalties under Part 4 of the Regulatory Powers Act

Enforceable civil penalty provisions

(1) Each civil penalty provision of this Act is enforceable under Part 4

of the Regulatory Powers Act.

Note:

Part 4 of the Regulatory Powers Act allows a civil penalty provision to

be enforced by obtaining an order for a person to pay a pecuniary

penalty for the contravention of the provision.

Authorised applicant

(2) For the purposes of Part 4 of the Regulatory Powers Act, the

Secretary is an authorised applicant in relation to the civil penalty

provisions mentioned in subsection (1).

Relevant court

(3) For the purposes of Part 4 of the Regulatory Powers Act, each

relevant court (as defined in subsection 4(1) of this Act) is a

relevant court in relation to the civil penalty provisions mentioned

in subsection (1).

Crown not liable to pecuniary penalty

(4) Part 4 of the Regulatory Powers Act, as that Part applies in relation

to the civil penalty provisions mentioned in subsection (1), does

not make the Crown liable to a pecuniary penalty.

13P Provisions subject to an infringement notice

(1) The following provisions are subject to an infringement notice

under Part 5 of the Regulatory Powers Act:

Amendments relating to medicinal cannabis Schedule 1

No. , 2016

Narcotic Drugs Amendment Bill 2016

(a) subsection 11B(3);

(a) subsection 11C(3);

(b) subsection 11D(3);

(d) subsection 13E(3);

(e) subsection 13F(3);

(f) subsection 14F(2);

(g) subsection 14G(2);

(h) subsection 14M(3);

(i) subsection 15C(3);

(j) subsection 15D(3);

(k) subsection 23(3);

(l) subsection 24(3);

(m) a provision of the regulations that creates an offence of strict

liability.

(2) For the purposes of Part 5 of the Regulatory Powers Act:

(a) the Secretary is an infringement officer in relation to the

provisions mentioned in subsection (1); and

(b) the Secretary is the relevant chief executive in relation to the

provisions mentioned in subsection (1).

14 Enforceable undertakings

Enforceable provisions

(1) The provisions of this Act are enforceable under Part 6 of the

Regulatory Powers Act.

Note:

Part 6 of the Regulatory Powers Act creates a framework for accepting

and enforcing undertakings relating to compliance with provisions.

Authorised person

(2) For the purposes of Part 6 of the Regulatory Powers Act, the

Secretary is an authorised person in relation to the provisions

mentioned in subsection (1).

Schedule 1 Amendments relating to medicinal cannabis

Narcotic Drugs Amendment Bill 2016

No. , 2016

Relevant court

(3) For the purposes of Part 6 of the Regulatory Powers Act, each

relevant court (as defined in subsection 4(1) of this Act) is a

relevant court in relation to the provisions mentioned in

subsection (1).

Publication of undertaking

(4) The Secretary may publish an undertaking that relates to this Act

on the Department's website.

14A Injunctions

Enforceable provisions

(1) The provisions of this Act are enforceable under Part 7 of the

Regulatory Powers Act.

Note:

Part 7 of the Regulatory Powers Act creates a framework for using

injunctions to enforce provisions.

Authorised person

(2) For the purposes of Part 7 of the Regulatory Powers Act, the

Secretary is an authorised person in relation to the provisions

mentioned in subsection (1).

Relevant court

(3) For the purposes of Part 7 of the Regulatory Powers Act, each

relevant court (as defined in subsection 4(1) of this Act) is a

relevant court in relation to the provisions mentioned in

subsection (1).

14B Extension to external Territories

A Part of the Regulatory Powers Act, as it applies in relation to a

provision mentioned in this Part, extends to every external

Territory to which the provision extends.

Amendments relating to medicinal cannabis Schedule 1

No. , 2016

Narcotic Drugs Amendment Bill 2016

Part 4--Monitoring and searching licensed

premises

14C Monitoring licensed premises

(1) An authorised inspector may enter licensed premises without

consent or a warrant for the following purposes:

(a) determining whether this Act has been, or is being, complied

with;

(b) determining whether information provided for the purposes

of this Act is correct;

Note:

The expression this Act includes the Regulatory Powers Act as it

applies in relation to this Act: see the definition of this Act in

subsection 4(1).

(2) The authorised inspector may enter the premises during the

business hours of the premises.

(3) Subdivision A of Division 2 of Part 2, and section 29, of the

Regulatory Powers Act apply in accordance with Part 3 of this

Chapter as if:

(a) entry to the premises was made under section 18 of that Act

under a monitoring warrant; and

(b) the purposes for which section 18 of that Act permits the

monitoring powers to be exercised included the purpose of

deciding whether to exercise a power under this Act; and

information relevant to deciding whether to exercise a power

under this Act.

Note 1:

Subdivision A of Division 2 of Part 2, and section 29, of the

Regulatory Powers Act are about monitoring powers and

compensation for damage to electronic equipment operated under

those powers.

Note 2:

Section 13L expands the monitoring powers under Subdivision A of

Division 2 of Part 2 of the Regulatory Powers Act.

(4) The application of Subdivision A of Division 2 of Part 2, and

section 29, of the Regulatory Powers Act under subsection (3) of

Schedule 1 Amendments relating to medicinal cannabis

Narcotic Drugs Amendment Bill 2016

No. , 2016

this section is in addition to their application under Part 3 of this

Chapter.

14D Announcement before entry

Before an authorised inspector enters premises under a provision

referred to in section 14C, the authorised inspector must:

(a) announce that he or she is authorised to enter the premises;

and

(b) if the occupier of the premises is present at the premises:

(i) ensure that the identity card of the authorised inspector

is shown to the occupier; and

(ii) explain the reasons for entering the premises.

14E Occupier is entitled to observe exercise of powers

(1) The occupier of premises entered under section 14C is (subject to

subsections (2) and (3) of this section) entitled to observe the

exercise of powers while on the premises if the occupier is present

at the premises while those powers are being exercised.

(2) The right to observe the exercise of powers ceases if the occupier

impedes the exercise of those powers.

(3) This section does not prevent powers being exercised in 2 or more

areas of the premises at the same time.

14F Occupier to provide officers etc. with facilities and assistance

(1) The occupier of premises entered under section 14C must provide

the following persons with all reasonable facilities and assistance

for the effective exercise of their powers while on the premises:

(a) any authorised inspector who enters the premises;

(b) any person assisting the authorised inspector.

Strict liability offence

(2) A person commits an offence of strict liability if:

(a) the person is subject to subsection (1); and

(b) the person fails to comply with that subsection.

Penalty: 30 penalty units.

Amendments relating to medicinal cannabis Schedule 1

No. , 2016

Narcotic Drugs Amendment Bill 2016

14G Obstruction or hindrance of authorised inspectors

(1) A person must not obstruct or hinder an authorised inspector who

is performing functions or exercising powers under this Act.

Strict liability offence

(2) A person commits an offence of strict liability if the person

contravenes subsection (1).

Penalty: 30 penalty units.

11 Part III (heading)

Repeal the heading.

12 Sections 15, 16, 17, 18, 19 and 20

Repeal the sections.

13 Before section 21

Insert:

Chapter 5--General

Part 1----Introduction

14H Simplified outline of this Chapter

This Chapter enables the Secretary to obtain information and

documents from applicants for licences and licence holders.

This Chapter also enables the Secretary to request information and

documents from other persons, and to require information and

documents from certain agencies.

The Secretary is authorised to release information and documents

obtained under or for the purposes of this Act.

The Secretary has directions powers with respect to the security of

premises, the destruction of cannabis plants, cannabis and cannabis

resin and other drugs.

Schedule 1 Amendments relating to medicinal cannabis

Narcotic Drugs Amendment Bill 2016

No. , 2016

This Chapter also deals with internal and external review of

decisions.

This Chapter provides that State and Territory agencies can be

approved to carry out specified activities relating to cannabis

plants, cannabis and cannabis resin, including cultivating cannabis

plants to produce cannabis or cannabis resin or for research relating

to medicinal cannabis. Such agencies can also be authorised to

undertake the manufacture of certain drugs.

This Chapter provides for a review of the Act.

This Chapter also contains provisions dealing with matters such as:

(a)

requirements relating to drugs passing through

Australia; and

(b)

delegating powers and functions under this Act; and

(c)

serving notices; and

(d)

making regulations for the purposes of this Act.

Part 2--Obtaining and disclosing information and

documents

Division 1--Obtaining information and documents for

purposes relating to licences

14J Secretary may require further information or documents

(1) The Secretary may, by notice in writing, require an applicant for a

licence or a permit, or for a variation of such a licence or permit, to

give the Secretary such further information or documents in

relation to the application as the Secretary reasonably requires.

(2) The Secretary may, by notice in writing, require the holder of a

licence to give the Secretary such further information or documents

about matters relating to the licence as the Secretary reasonably

requires, including but not limited to the following matters:

(a) activities engaged in under, or purportedly under, the licence;

(b) conditions of the licence;

Amendments relating to medicinal cannabis Schedule 1

No. , 2016

Narcotic Drugs Amendment Bill 2016

(d) matters relating to one or more permits that relate to the

licence.

(3) A notice under subsection (1) or (2) may specify a period, which

must be reasonable in all the circumstances and must not be less

than 14 days, within which the information or documents are to be

given.

(4) The Secretary may require information or documents to be given

under this section at any time, and on one or more occasions:

(a) if the information or documents relate to an application for a

licence or a permit, or for a variation of such a licence or

permit--before the Secretary makes a decision on the

application, whether before or after the Secretary has begun

to consider the application; or

(b) if the information or documents otherwise relate to a

licence--at any time while the licence is in force.

(5) To avoid doubt, the information or documents that the Secretary

may require include information or documents about whether a

person is a fit and proper person to hold a licence or to be

associated with the holder of a licence.

Note:

Section 24B deals with the privilege against self-incrimination.

14K Secretary may request information or documents from any

source

(1) The Secretary may request information, documents or advice

relevant to an application for a licence or a permit, or otherwise in

relation to a licence or permit, from any source, including an

agency of the Commonwealth.

(2) If the Secretary requests personal information about an individual,

the giving of the information by the person to whom the request is

made, and the collection of the information, is taken to be

authorised by this Act for the purposes of the Privacy Act 1988 and

the Australian Border Force Act 2015.

Schedule 1 Amendments relating to medicinal cannabis

Narcotic Drugs Amendment Bill 2016

No. , 2016

14L Secretary may require information or documents from other

sources

(1) The Secretary may, by written notice, require the head of a State or

Territory agency to give the Secretary information or documents

that:

(a) are relevant to an application for a licence or a permit, a

variation or revocation of a licence or permit or otherwise in

relation to a licence or permit; and

(b) are of a kind specified in the notice; and

notice.

Note:

For specification by class, see subsection 33(3AB) of the Acts

Interpretation Act 1901.

(2) The Secretary must not give a notice under subsection (1) to the

head of an agency unless the Secretary reasonably believes:

(a) that the head of the agency has, or can reasonably acquire,

the information or documents; and

(b) that the information or documents are relevant for the

purposes of considering an application for a licence or

permit, or are otherwise relevant to a licence or permit.

(3) The head of an agency who is given a notice under subsection (1)

must, as soon as practicable after the notice is given, comply with

the notice to the extent that he or she has, or can reasonably

acquire, the information or documents specified in the notice.

(4) Despite subsection (3), the registrar (however described) of a court

is not required to comply with a notice under subsection (1) to the

extent that the information or documents specified in the notice, in

relation to a person specified in the notice, are information or

documents that relate to proceedings that have not been finally

determined by the court.

(5) The head of an agency is authorised to comply with a notice under

subsection (1), even if the giving or collecting of the information or

documents specified in the notice would contravene a law of a

State or a Territory that:

(a) primarily relates to the protection of the privacy of

individuals; and

Amendments relating to medicinal cannabis Schedule 1

No. , 2016

Narcotic Drugs Amendment Bill 2016

(b) prohibits or regulates the use or disclosure of personal

information.

(6) A person is not liable to:

(a) any proceedings for contravening a provision of a law

referred to in subsection (5); or

(b) civil proceedings for loss, damage or injury of any kind

suffered by another person;

merely because the person gives information or documents to the

Secretary, or collects information or documents, for the purposes

of ensuring that the head of an agency complies with a notice under

subsection (1).

(7) If the Secretary requires personal information about an individual,

the giving of the information by the person to whom the request is

made, and the collection of the information, is taken to be

authorised by this Act for the purposes of the Privacy Act 1988.

14M Failure to give information or documents within specified

period

(1) A person contravenes this subsection if:

(a) the person is required by notice under subsection 14J(2) to

give information or documents to the Secretary; and

(b) the notice specifies the period within which the information

or documents are to be given; and

the specified period.

Note:

Division 137 of the Criminal Code creates offences for providing false

or misleading information or documents.

Fault-based offence

(2) A person commits an offence if the person contravenes

subsection (1).

Note:

See section 24A in relation to the physical elements of the offence.

Penalty: 100 penalty units.

Schedule 1 Amendments relating to medicinal cannabis

Narcotic Drugs Amendment Bill 2016

No. , 2016

Strict liability offence

(3) A person commits an offence of strict liability if the person

contravenes subsection (1).

Penalty: 60 penalty units.

Civil penalty provision

(4) A person is liable to a civil penalty if the person contravenes

subsection (1).

Civil penalty:

500 penalty units.

Division 2--Disclosure of certain information

14N Authorised disclosures of information

A disclosure by the Secretary of information is authorised for the

purposes of the Privacy Act 1988 if:

(a) the disclosure is in the course of performing functions or

duties, or exercising powers, under this Act; or

(b) the disclosure is for the purposes of this Act; or

the Commonwealth, a State or a Territory; or

(d) the person to whom the information relates consents to the

disclosure; or

(e) the disclosure is to an agency of the Commonwealth, a State

or a Territory that is responsible for, or deals with, matters

relating to health, therapeutic goods, poisons, industrial

chemicals, agriculture, environmental matters, land

management or the registration of pharmacies or the

regulation of pharmacists; or

(f) the disclosure is to an agency of the Commonwealth, a State

or a Territory that is responsible for, or deals with, law

enforcement, criminal intelligence, criminal investigation or

fraud in, or in a part of, Australia; or

(g) the information has already been lawfully made available to

the public; or

(h) the disclosure is in circumstances prescribed by the

regulations, being circumstances that relate to public safety,

Amendments relating to medicinal cannabis Schedule 1

No. , 2016

Narcotic Drugs Amendment Bill 2016

research relating to medicinal cannabis or the regulation of

health professionals.

Part 3--Directions powers

14P Directions with respect to security of premises and handling of

things

(1) The Secretary may, by notice in writing given to a person who is a

licence holder, or who has been a licence holder:

(a) direct the person to take specified measures for ensuring the

security of land or premises at which activities authorised by

the licence are, were or may be, occurring; or

(b) direct the person to take specified measures for regulating or

controlling the entry of persons or vehicles into, or the

departure of persons or vehicles from, such land or premises;

the entry of persons or vehicles into, or the departure of

persons or vehicles from, such land or premises other than at

specified places; or

(d) give such other directions to the person as the Secretary

considers appropriate in relation to the following:

(i) cannabis plants obtained or cultivated by the person or

in the person's possession or control;

(ii) cannabis or cannabis resin produced by the person or in

the person's possession or control;

(iii) drugs or narcotic preparations manufactured by the

person or in the person's possession or control, or

substances used in such manufacture in the person's

possession or control;

including, but not limited to, directions in relation to their

handling at a place other than the land or premises at which

the obtaining, cultivation, production or manufacture

occurred; or

(e) give such other directions to the person, in relation to the

licence or a permit that relates to the licence, as the Secretary

considers appropriate.

Schedule 1 Amendments relating to medicinal cannabis

Narcotic Drugs Amendment Bill 2016

No. , 2016

Note:

For requirements for a notice of a decision to give a direction under

this section, see section 15F.

(2) In this section, a reference to land or premises includes a reference

to a part of land or premises.

15 Directions with respect to destruction, etc.

(1) The Secretary may, by notice in writing given to a person who is

licence holder, or who has been a licence holder, require the

destruction of, or other dealings with, cannabis plants, cannabis,

cannabis resin, drugs or narcotic preparations in the person's

possession or control, if the Secretary is satisfied on reasonable

grounds that:

(a) the cannabis plants were cultivated or obtained, the cannabis

or cannabis resin was produced or the drugs or narcotic

preparations were manufactured in breach of the licence; or

(b) the cannabis plants were cultivated or obtained, the cannabis

or cannabis resin was produced or the drugs or narcotic

preparations were manufactured in circumstances prescribed

by the regulations; or

of this paragraph exist.

(2) If the Secretary requires the destruction of, or other dealing with,

cannabis plants, cannabis, cannabis resin, drugs or narcotic

preparations the Secretary may:

(a) direct the person to whom the notice was given under

subsection (1), or a person in charge of the cannabis plants,

cannabis, cannabis resin, drugs or narcotic preparations, to

carry out the destruction or dealing; or

(b) carry out the destruction or dealing; or

expertise to carry out the destruction or dealing.

(3) If the Secretary:

(a) directs the destruction of, or other dealing with, cannabis

plants, cannabis, cannabis resin, drugs or narcotic

preparations as mentioned in paragraph (2)(a); or

(b) arranges for such destruction or dealing as mentioned in

paragraph (2)(c);

Amendments relating to medicinal cannabis Schedule 1

No. , 2016

Narcotic Drugs Amendment Bill 2016

the Secretary may supervise the destruction or dealing.

(4) If the Commonwealth incurs costs because of a requirement under

this section:

(a) the person to whom the notice was given under

subsection (1) is liable to pay to the Commonwealth an

amount equal to the costs; and

(b) the amount may be recovered by the Commonwealth as a

debt due to the Commonwealth in a court of competent

jurisdiction.

Note:

For requirements for a notice of a decision to give a direction under

this section, see section 15F.

15A Directions with respect to manufacturing and labelling of drugs

The Secretary may, by notice in writing given to a person who is

the holder of a manufacture licence, give directions to the person

with respect to:

(a) operations connected with the manufacturing of drugs or

narcotic preparations; or

(b) the labelling of drugs or narcotic preparations;

manufactured by the person.

Note:

For requirements for a notice of a decision to give a direction under

this section, see section 15F.

15B General matters about directions

(1) This section applies to a direction under section 14P, 15 or 15A.

(2) To avoid doubt, the direction may be given:

(a) in respect of cannabis plants, cannabis, cannabis resin, drugs

or narcotic preparations generally; or

(b) in respect of cannabis plants, cannabis, cannabis resin, drugs

or narcotic preparations of a kind specified in the direction;

resin, drugs or narcotic preparations specified in the

direction.

(3) If the direction is inconsistent with a condition of a licence

(whether the condition is specified in the licence or imposed by

Schedule 1 Amendments relating to medicinal cannabis

Narcotic Drugs Amendment Bill 2016

No. , 2016

this Act), the condition is of no effect to the extent of the

inconsistency.

15C Failure to comply with a direction

(1) A person contravenes this subsection if:

(a) the person is given a direction under:

(i) section 14P or 15; or

(ii) paragraph 15A(a); and

(b) the person does not comply with the direction.

Fault-based offence

(2) A person commits an offence if the person contravenes

subsection (1).

Note:

See section 24A in relation to the physical elements of the offence.

Penalty: 300 penalty units.

Strict liability offence

(3) A person commits an offence of strict liability if the person

contravenes subsection (1).

Penalty: 60 penalty units.

Civil penalty provision

(4) A person is liable to a civil penalty if the person contravenes

subsection (1).

Civil penalty:

600 penalty units.

15D Supply of a drug or narcotic preparation not labelled in

accordance with a direction

(1) A person contravenes this subsection if:

(a) the person is given a direction under paragraph 15A(b)

(labelling of drugs and narcotic preparations); and

(b) the person supplies a drug or narcotic preparation that is not

labelled in accordance with the direction.

Amendments relating to medicinal cannabis Schedule 1

No. , 2016

Narcotic Drugs Amendment Bill 2016

Fault-based offence

(2) A person commits an offence if the person contravenes

subsection (1).

Note:

See section 24A in relation to the physical elements of the offence.

Penalty: 300 penalty units.

Strict liability offence

(3) A person commits an offence of strict liability if the person

contravenes subsection (1).

Penalty: 60 penalty units.

Civil penalty provision

(4) A person is liable to a civil penalty if the person contravenes

subsection (1).

Civil penalty:

600 penalty units.

Part 4--Review of decisions

15E Reviewable decisions

(1) Each of the following decisions of the Secretary is a reviewable

decision:

(a) a decision under section 8F to grant a medicinal cannabis

licence;

(b) a decision under section 8F to refuse to grant a medicinal

cannabis licence;

medicinal cannabis licence;

(d) a decision under section 9 to grant a medicinal cannabis

permit;

(e) a decision under section 9 to refuse to grant a medicinal

cannabis permit;

(f) a decision under section 9E to grant a cannabis research

licence;

Schedule 1 Amendments relating to medicinal cannabis

Narcotic Drugs Amendment Bill 2016

No. , 2016

(g) a decision under section 9E to refuse to grant a cannabis

research licence;

(h) a decision under section 9J to impose conditions on a

cannabis research licence;

(i) a decision under section 9P to grant a cannabis research

permit;

(j) a decision under section 9P to refuse to grant a cannabis

research permit;

(k) a decision under subsection 10M(1) to vary a cannabis

licence or a cannabis permit;

(l) a decision under subsection 10N(4) to refuse to vary a

cannabis licence or a cannabis permit on application;

(m) a decision under section 10P to revoke a cannabis licence or a

cannabis permit;

(n) a decision under section 11H to refuse to grant a manufacture

licence;

(o) a decision under section 11L to impose conditions on a

manufacture licence;

(p) a decision under section 12A to refuse to grant a manufacture

permit;

(q) a decision under subsection 13(1) to vary a manufacture

licence or a manufacture permit;

(r) a decision under subsection 13A(4) to refuse to vary a

manufacture licence or a manufacture permit on application;

(s) a decision under section 13B to revoke a manufacture licence

or a manufacture permit;

(t) a decision under section 14P or 15 to give a direction to the

holder or former holder of a licence;

(u) a decision under section 15A to give a direction to the holder

of a manufacture licence.

(2) The regulations may also provide that a decision made under a

specified provision of this Act is a reviewable decision.

Note:

The reference to this Act includes a reference to instruments made

under this Act (see the definition of this Act in subsection 4(1)).

15F Notice of reviewable decisions

(1) After a reviewable decision is made, the person who made the

decision must, as soon as practicable, give a written notice to the

Amendments relating to medicinal cannabis Schedule 1

No. , 2016

Narcotic Drugs Amendment Bill 2016

applicant for, or the holder or former holder of, the licence or

permit concerned, containing:

(a) the terms of the decision; and

(b) the reasons for the decision; and

(2) In addition to giving notice under subsection (1), if:

(a) the reviewable decision is a decision referred to in:

(i) paragraph 15E(1)(a) or (f); or

(ii) paragraph 15E(1)(k), to the extent that the paragraph

relates to the variation of a cannabis licence; and

(b) the cannabis licence concerned relates to land or premises

situated wholly or partly in a State or Territory; and

State or Territory agency for that State or Territory, is in

force;

the person who made the decision must, as soon as practicable,

give a written notice to the head of the State or Territory agency,

containing:

(d) the terms of the decision; and

(e) the reasons for the decision; and

(f) notice of the right of the State or Territory agency to have the

decision reviewed.

(3) This section does not affect any requirement to give notice of a

reviewable decision under another provision of this Act.

15G Internal review of reviewable decisions--application for review

(1) A person to whom a notice is given under subsection 15F(1) or (2)

in relation to a reviewable decision may apply to the Minister for

review of the decision.

(2) An application for review must:

(a) be in writing; and

(b) set out the reasons for the application; and

subsection 15F(1) or (2), as the case requires.

Note:

Under section 15K, further information may be required in relation to

an application.

Schedule 1 Amendments relating to medicinal cannabis

Narcotic Drugs Amendment Bill 2016

No. , 2016

15H Internal review of reviewable decisions--review of decision

(1) On receiving an application for review of a reviewable decision,

the Minister must either:

(a) review the reviewable decision personally; or

(b) cause the reviewable decision to be reviewed by a person (the

internal reviewer) who:

(i) is a person to whom the Minister's power to review the

decision has been delegated; and

(ii) was not involved in making the decision; and

(iii) occupies a position at least as senior as the person who

actually made the decision.

(2) In reviewing the reviewable decision:

(a) the Minister or the internal reviewer must take into account

any information included in the application for review; and

(b) the Minister or the internal reviewer must not take into

account any other information provided by, or on behalf of,

the applicant after the making of the application, other than

information provided in response to a notice under

section 15K.

(3) Paragraph (2)(b) does not otherwise limit the information the

Minister or the internal reviewer may take into account in

reviewing the reviewable decision.

(4) The Minister or the internal reviewer may:

(a) affirm, vary or set aside the reviewable decision; and

(b) if he or she sets aside the reviewable decision--make such

other decision as he or she thinks appropriate.

(5) The decision (the decision on review) of the Minister or the

internal reviewer takes effect:

(a) on the day specified in the decision on review; or

(b) if a day is not specified--on the day the decision on review

was made.

Amendments relating to medicinal cannabis Schedule 1

No. , 2016

Narcotic Drugs Amendment Bill 2016

15J Internal review of reviewable decisions--notice of decision

(1) After a decision on review is made under section 15H, the person

who made the decision on review must give the applicant a written

notice containing:

(a) the terms of the decision; and

(b) the reasons for the decision; and

by the Administrative Appeals Tribunal.

Deemed affirmation--failure to give notice

(2) For the purposes of section 15L (review by the AAT), the Minister

is taken to have affirmed a reviewable decision if the applicant

does not receive notice of a decision on review within 60 days after

the application for review was made.

Time does not run while further information being sought

(3) If the Minister or the internal reviewer has given a notice under

section 15K requiring further information about an application for

review, a day is not to be counted for the purposes of

subsection (2) if it is:

(a) on or after the date of the notice; and

(b) on or before the day the Minister or the internal reviewer

notifies the applicant that the further information provided

satisfies the requirement.

15K Minister or internal reviewer may require further information

The Minister or an internal reviewer may, by written notice,

require a person who has made an application under section 15G to

give the Minister or the internal reviewer further information about

the application.

15L Review of decisions under this Division by Administrative

Appeals Tribunal

(1) Applications may be made to the Administrative Appeals Tribunal

for review of decisions of the Minister, or an internal reviewer,

under section 15H that relate to a reviewable decision.

Schedule 1 Amendments relating to medicinal cannabis

Narcotic Drugs Amendment Bill 2016

No. , 2016

(2) If the reviewable decision is a decision of a kind referred to in

subsection 15F(2) then, for the purposes of an application for

review referred to in subsection (1) of this section, the State or

Territory concerned may be a person whose interests are affected

for the purposes of subsections 27(2) and 30(1A) of the

Administrative Appeals Tribunal Act 1975.

Part 5--Other matters

14 Section 21

Omit "Part", substitute "Act".

15 Part IV (heading)

Repeal the heading.

16 Subsection 22(1)

After "vessel", insert "or aircraft".

17 Subsection 22(4)

After "vessel" (first and second occurring), insert "or aircraft".

18 Subsection 22(4)

Omit "master of the vessel", substitute "master of the vessel or captain

of the aircraft, as the case requires".

19 Section 23 (heading)

Repeal the heading, substitute:

23 Requirement to keep records and furnish reports

20 Subsection 23(1)

Omit "a licensed manufacturer, a manufacturer of narcotic

preparations", substitute "a manufacturer of narcotic preparations, other

than a person who is the holder of a manufacture licence,".

21 Paragraph 23(1)(a)

Omit "drugs or".

Amendments relating to medicinal cannabis Schedule 1

No. , 2016

Narcotic Drugs Amendment Bill 2016

22 Subsections 23(2) and (3)

Repeal the subsections, substitute:

(2) A person contravenes this subsection if:

(a) the person is given a notice under subsection (1); and

(b) the person does not comply with the notice.

Strict liability offence

(3) A person commits an offence of strict liability if the person

contravenes subsection (2).

Penalty: 60 penalty units.

Civil penalty provision

(4) A person is liable to a civil penalty if the person contravenes

subsection (2).

Civil penalty:

500 penalty units.

23 Section 24 (heading)

Repeal the heading, substitute:

24 Inspection of certain premises

24 Subsection 24(1)

Omit all the words from and including "A person appointed" to and

including "appointment" substitute "An authorised inspector may, at

any reasonable time and on production of his or her identity card".

25 Subsection 24(1)

Omit "drugs" (first occurring), substitute "narcotic preparations".

26 Paragraphs 24(1)(a) and (b)

After "drug", (wherever occurring), insert "or narcotic preparation".

27 Subsections 24(2), (3), (3A) and (3B)

Repeal the subsections, substitute:

(2) A person contravenes this subsection if:

Schedule 1 Amendments relating to medicinal cannabis

Narcotic Drugs Amendment Bill 2016

No. , 2016

(a) the person is the occupier of, or is in charge of, premises; and

(b) an authorised inspector enters the premises under

subsection (1); and

reasonable facilities and assistance for the effective exercise

of the inspector's powers.

Strict liability offence

(3) A person commits an offence of strict liability if the person

contravenes subsection (2).

Penalty: 60 penalty units.

Civil penalty provision

(3A) A person is liable to a civil penalty if the person contravenes

subsection (2).

Civil penalty:

500 penalty units.

28 Subsection 24(3C)

Omit "(3B)", substitute "(3)".

29 Subsections 24(3D) and (4)

Repeal the subsections.

30 After section 24

Insert:

24A Physical elements of offences

(1) This section applies if a provision of this Act provides that a person

contravening another provision of this Act (the conduct rule

provision) commits an offence.

(2) For the purposes of applying Chapter 2 of the Criminal Code to the

offence, the physical elements of the offence are set out in the

conduct rule provision.

Note:

Chapter 2 of the Criminal Code sets out general principles of criminal

responsibility.

Amendments relating to medicinal cannabis Schedule 1

No. , 2016

Narcotic Drugs Amendment Bill 2016

24B Privilege against self-incrimination

Person not entitled to refuse to provide information

(1) A person is not excused from giving information under

section 10K, 12N or 14J on the ground that the information might

tend to incriminate the person or expose the person to a penalty.

Use immunity applies to information

(2) However, in the case of an individual:

(a) the information given; and

(b) giving the information;

are not admissible in evidence against the individual in any

criminal proceedings, or in proceedings for contravention of a civil

penalty provision, except proceedings under, or arising out of any

of the following in relation to the giving of the information:

(d) section 137.1 or 137.2 of the Criminal Code (false or

misleading information or documents);

(e) subsection 149.1(1) of the Criminal Code (obstruction of

Commonwealth public officials).

31 Subsections 25(1), (2) and (3)

Omit ", the Customs Minister,".

32 At the end of section 25

Add:

(4) The Minister or the Secretary must not delegate a power or

function under subsection (1) to an officer or employee of an

agency of a State or a Territory without the agreement of the State

or the Territory, as the case requires.

33 Before section 26

Insert:

25B Secretary to notify States and Territories of certain matters

(1) The head of a State or Territory agency may notify the Secretary in

writing that the State or Territory wishes to be advised if a licence

Schedule 1 Amendments relating to medicinal cannabis

Narcotic Drugs Amendment Bill 2016

No. , 2016

or permit that relates to land or premises situated wholly or partly

in the State or Territory is granted, varied or revoked.

(2) If:

(a) a notice under subsection (1) given by the head of a State or

Territory agency is in force; and

(b) a licence or permit that relates to land or premises situated

wholly or partly in the State or Territory is granted, varied or

revoked;

the Secretary must advise the head of the State or Territory agency,

in writing, of the matters prescribed by the regulations for the

purposes of this subsection.

34 At the end of section 26

Add:

(2) A notice or document sent to a fax number or electronic address, or

by other electronic means, is taken to have been given on the

business day after it is sent.

35 After section 26

Insert:

26A Review of operation of Act

(1) The Minister must cause a review of the operation of this Act to be

undertaken as soon as possible after the second anniversary of the

commencement of Schedule 1 to this Act.

(2) A person who undertakes such a review must give the Minister a

written report of the review.

(3) The Minister must cause a copy of the report of the review to be

tabled in each House of the Parliament on or before the third

anniversary of the commencement of Schedule 1 to this Act.

36 Section 27

Repeal the section, substitute:

Amendments relating to medicinal cannabis Schedule 1

No. , 2016

Narcotic Drugs Amendment Bill 2016

27 Regulations

General

(1) The Governor-General may make regulations prescribing matters:

(a) required or permitted by this Act to be prescribed by the

regulations; or

(b) necessary or convenient to be prescribed for carrying out or

giving effect to this Act.

Requirements for land and premises at which licensed activities

carried out

(2) The regulations may prescribe requirements in relation to land or

premises at which activities authorised by licences under this Act

are carried out.

(3) Without limiting the matters that may be dealt with by regulations

made under subsection (2), the regulations may deal with the

following:

(a) access to the land or premises by persons;

(b) conditions of entry, the issue and use of security passes and

other identification systems by employees and other people.

Other matters

(4) The regulations may provide for or in relation to the following:

(a) testing of samples;

(b) authorising people engaged by licence holders, but not

otherwise authorised by a licence, to transport cannabis

plants, cannabis and cannabis resin obtained, cultivated or

produced under a licence;

cultivation of cannabis plants and the production of cannabis

and cannabis resin;

(d) regulating, restricting or prohibiting premises, vehicles,

equipment or machines used, or intended to be used, for or in

connection with activities relating to licences;

(e) regulating, restricting or prohibiting the advertising to the

public of cannabis plants, cannabis or cannabis resin by

licence holders;

Schedule 1 Amendments relating to medicinal cannabis

Narcotic Drugs Amendment Bill 2016

No. , 2016

(f) regulating the manner in which cannabis plants, cannabis,

cannabis resin, and drugs and narcotic preparations that

contain cannabis or cannabis resin, are presented for supply;

(g) modifying the operation of Chapters 2 and 3 of this Act if an

applicant for a licence, or a licence holder, is an agency of a

State or Territory;

(h) empowering the Secretary to do things in relation to cannabis

plants, cannabis, cannabis resin, drugs and narcotic

preparations that have been seized under this Act;

(i) how forfeited goods are dealt with.

28 General provisions relating to regulations

(1) The regulations may provide for:

(a) the imposition of penalties of not more than 50 penalty units

for a contravention of a provision of the regulations; and

(b) the imposition of civil penalties for contraventions of a kind

referred to in paragraph (a) of not more than:

(i) 50 penalty units for an individual; or

(ii) 250 penalty units for a body corporate; and

(2) Despite section 14 of the Legislation Act 2003, the regulations may

make provision in relation to a matter by applying, adopting or

incorporating, with or without modification, any matter contained

in an instrument or other document:

(a) as in force or existing at a particular time; or

(b) as in force or existing from time to time;

even if the instrument or other document does not exist when the

regulations come into operation.

(3) The regulations may provide for review of decisions under the

regulations.

Amendments relating to authorisation of State and Territory agencies Schedule 2

No. , 2016

Narcotic Drugs Amendment Bill 2016

Schedule 2--Amendments relating to

authorisation of State and Territory

agencies

Narcotic Drugs Act 1967

1 Subsection 4(1)

Insert:

agency of the Commonwealth, a State or a Territory includes the

following:

(a) the Crown in right of the Commonwealth, a State or a

Territory;

(b) a Minister of the Commonwealth, a State or a Territory;

(d) an instrumentality of the Commonwealth, a State or a

Territory, including a body corporate established for a public

purpose by or under a law of the Commonwealth, a State or a

Territory;

(e) a company in which a controlling interest is held by any one

of the following persons, or by 2 or more of the following

persons together:

(i) the Crown in right of the Commonwealth, a State or a

Territory;

(ii) a person or body covered by paragraph (b) or (d);

(f) a court, tribunal or parole board of the Commonwealth, a

State or a Territory.

cannabis plant means the following:

(a) any plant of the genus cannabis;

(b) any part of a plant of the genus cannabis including, but not

limited to, the seeds, stems or leaves of the plant.

cultivate a cannabis plant includes the following:

(a) sow a seed of a cannabis plant;

(b) plant, grow, tend, nurture or harvest a cannabis plant;

Schedule 2 Amendments relating to authorisation of State and Territory agencies

Narcotic Drugs Amendment Bill 2016

No. , 2016

but does not include the separation of cannabis or cannabis resin

from a cannabis plant.

supply includes the following, whether free of charge or otherwise:

(a) supply by way of sale, exchange, gift, lease, loan, hire or

hire-purchase;

(b) supply by way of sample;

(d) supply by way of administration to, or application in the

treatment of, a person.

2 After section 25

Insert:

25A Certain State and Territory agencies are authorised to cultivate

cannabis plants, produce cannabis etc. and manufacture

drugs

(1) The Secretary may, in writing, approve an agency of a State or

Territory for the purposes of this section if the Secretary is satisfied

on reasonable grounds:

(a) that such an approval would not be inconsistent with

Australia's obligations under the Convention; and

(b) that the agency will take all reasonable measures to ensure

the physical security of the following:

(i) cannabis plants obtained or cultivated by the agency, or

in the possession or control of the agency, or cannabis

or cannabis resin produced by the agency, in accordance

with this section;

(ii) drugs and narcotic preparations manufactured in

accordance with this section; and

approval; and

(d) in relation to such other matters as are prescribed by the

regulations.

(2) An agency of a State or Territory that is approved under

subsection (1) is authorised to engage in, or to authorise another

person to engage in under a contract with the agency, one or more

of the following activities as set out in the approval:

Amendments relating to authorisation of State and Territory agencies Schedule 2

No. , 2016

Narcotic Drugs Amendment Bill 2016

(a) the cultivation of cannabis plants for the purpose of

producing cannabis or cannabis resin for medicinal purposes

and, if appropriate, the obtaining of cannabis plants for that

purpose;

(b) the production of cannabis or cannabis resin for medicinal

purposes;

producing cannabis or cannabis resin for research relating to

medicinal cannabis and, if appropriate, the obtaining of

cannabis plants for that purpose;

(d) the production of cannabis or cannabis resin for research

relating to medicinal cannabis;

(e) the manufacture of drugs and narcotic preparations that

include, or are from, any part of the cannabis plant;

(f) activities relating to such cultivation, production or

manufacture, including but not limited to the following (as

applicable):

(i) the supply of cannabis plants, cannabis, cannabis resin,

drugs and narcotic preparations;

(ii) the packaging, transport, storage, possession and control

of cannabis plants, cannabis, cannabis resin, drugs or

narcotic preparations;

(iii) the disposal or destruction of cannabis plants, cannabis,

cannabis resin, drugs and narcotic preparations.

Note:

A cannabis plant includes the seeds of a cannabis plant (see

subsection 4(1)).

(3) The Secretary may, in his or her absolute discretion, revoke in

writing an approval made under subsection (1).

(4) The Secretary may, in writing, impose conditions upon an approval

under subsection (1) including, but not limited to, in relation to

persons who are authorised to undertake activities under the

approval.

(5) The Secretary must provide a copy of the following:

(a) an approval under this section;

(b) any conditions to which such an approval is subject;

Schedule 2 Amendments relating to authorisation of State and Territory agencies

Narcotic Drugs Amendment Bill 2016

No. , 2016

to the agency head of the agency to which the approval relates. The

copy must be given as soon as reasonably practicable after the

approval is given or revoked, or the conditions are imposed, as the

case requires.

(6) An approval given under subsection (1) is not a legislative

instrument.

Transitional provisions Schedule 3

No. , 2016

Narcotic Drugs Amendment Bill 2016

Schedule 3--Transitional provisions

1 Saving of manufacturing licences in force as at

commencement of Schedule 1 and applying old law to

them

Despite the repeals and amendments of the old law made by this Act, if

a manufacturing licence granted under the old law was in force

immediately before commencement, the old law continues to have

effect, in relation to that licence, as if those repeals and amendments

had not happened.

2 Transitional regulations

(1)

The Governor-General may make regulations prescribing matters:

(a) required or permitted by this Schedule to be prescribed; or

(b) necessary or convenient to be prescribed for carrying out or

giving effect to this Schedule.

(2)

In particular, regulations may be made prescribing matters of a

transitional nature (including any saving or application provisions)

relating to the following:

(a) the amendments or repeals made by this Act;

(b) the transition from the application of provisions of laws of

the States and the Territories to the application of provisions

of the new law.

(3)

Without limiting subitem (2), the regulations may provide:

(a) that a prescribed licence, authorisation or permit (however

described) that was in force immediately before

commencement under a law of a State or a Territory is taken,

on and after commencement, to be a licence granted under

the Narcotic Drugs Act 1967; and

(b) that prescribed provisions (the modified provisions) of the

Narcotic Drugs Act 1967 are taken to be modified, in relation

to such a licence.

The modified provisions have effect, in relation to such a licence, as if

they were modified as prescribed, despite anything else in the Narcotic

Drugs Act 1967.

Schedule 3 Transitional provisions

100

Narcotic Drugs Amendment Bill 2016

No. , 2016

3 Definitions

In this Schedule:

new law means the Narcotic Drugs Act 1967, as in force on and after

commencement.

old law means the Narcotic Drugs Act 1967, as in force immediately

before commencement.

commencement means the commencement of Schedule 1 to this Act.

Amendments relating to Schedules Schedule 4

No. , 2016

Narcotic Drugs Amendment Bill 2016

101

Schedule 4--Amendments relating to

Schedules

Narcotic Drugs Act 1967

1 First and Second Schedules

Repeal the Schedules, substitute:

Schedule 1--Single Convention on Narcotic

Drugs, 1961, as amended by the 1972

Protocol

Note:

See the definition of Convention in subsection 4(1).

PREAMBLE

THE PARTIES,

CONCERNED with the health and welfare of mankind,

RECOGNIZING that the medical use of narcotic drugs continues to be

indispensable for the relief of pain and suffering and that adequate provision

must be made to ensure the availability of narcotic drugs for such purposes,

RECOGNIZING that addiction to narcotic drugs constitutes a serious evil for

the individual and is fraught with social and economic danger to mankind,

CONSCIOUS of their duty to prevent and combat this evil,

CONSIDERING that effective measures against abuse of narcotic drugs

require coordinated and universal action,

UNDERSTANDING that such universal action calls for international

cooperation guided by the same principles and aimed at common objectives,

ACKNOWLEDGING the competence of the United Nations in the field of

narcotics control and desirous that the international organs concerned should be

within the framework of that Organization,

Schedule 4 Amendments relating to Schedules

102

Narcotic Drugs Amendment Bill 2016

No. , 2016

DESIRING to conclude a generally acceptable international convention

replacing existing treaties on narcotic drugs, limiting such drugs to medical and

scientific use, and providing for continuous international cooperation and

control for the achievement of such aims and objectives,

HEREBY AGREE as follows:

Article 1

Definitions

1. Except where otherwise expressly indicated or where the context otherwise

requires, the following definitions shall apply throughout the Convention:

(a) "Board" means the International Narcotics Control Board.

(b) "Cannabis" means the flowering or fruiting tops of the cannabis plant

(excluding the seeds and leaves when not accompanied by the tops) from which

the resin has not been extracted, by whatever name they may be designated.

(d) "Cannabis resin" means the separated resin, whether crude or purified,

obtained from the cannabis plant.

(e) "Coca bush" means the plant of any species of the genus erythroxylon.

(f) "Coca leaf" means the leaf of the coca bush except a leaf from which all

ecgonine, cocaine and any other ecgonine alkaloids have been removed.

(g) "Commission" means the Commission on Narcotic Drugs of the Council.

(h) "Council" means the Economic and Social Council of the United Nations.

(i) "Cultivation" means the cultivation of the opium poppy, coca bush or

cannabis plant.

(j) "Drug" means any of the substances in Schedules I and II, whether natural or

synthetic.

Amendments relating to Schedules Schedule 4

No. , 2016

Narcotic Drugs Amendment Bill 2016

103

(k) "General Assembly" means the General Assembly of the United Nations.

(l) "Illicit traffic" means cultivation or trafficking in drugs contrary to the

provisions of this Convention.

(m) "Import" and "export" mean in their respective connotations the physical

transfer of drugs from one State to another State, or from one territory to

another territory of the same State.

(n) "Manufacture" means all processes, other than production, by which drugs

may be obtained and includes refining as well as the transformation of drugs

into other drugs.

(o) "Medicinal opium" means opium which has undergone the processes

necessary to adapt it for medicinal use.

(p) "Opium" means the coagulated juice of the opium poppy.

(q) "Opium poppy" means the plant of the species Papaver somniferum L.

(r) "Poppy straw" means all parts (except the seeds) of the opium poppy, after

mowing.

(s) "Preparation" means a mixture, solid or liquid, containing a drug.

(t) "Production" means the separation of opium, coca leaves, cannabis and

cannabis resin from the plants from which they are obtained.

(u) "Schedule I", "Schedule II", "Schedule III" and "Schedule IV" mean the

correspondingly numbered list of drugs or preparations annexed to this

Convention, as amended from time to time in accordance with Article 3.

(v) "Secretary-General" means the Secretary-General of the United Nations.

(w) "Special stocks" means the amounts of drugs held in a country or territory

by the government of such country or territory for special Government purposes

and to meet exceptional circumstances; and the expression "special purposes"

shall be construed accordingly.

Schedule 4 Amendments relating to Schedules

104

Narcotic Drugs Amendment Bill 2016

No. , 2016

(x) "Stocks" means the amounts of drugs held in a country or territory and

intended for:

(i) Consumption in the country or territory for medical and scientific purposes,

(ii) Utilization in the country or territory for the manufacture of drugs and other

substances, or

(iii) Export;

but does not include the amounts of drugs held in the country or territory,

(iv) By retail pharmacists or other authorized retail distributors and by

institutions or qualified persons in the duly authorized exercise of therapeutic or

scientific functions, or

(v) As "special stocks".

(y) "Territory" means any part of a State which is treated as a separate entity for

the application of the system of import certificates and export authorizations

provided for in Article 31. This definition shall not apply to the term "territory"

as used in Articles 42 and 46.

2. For the purposes of this Convention a drug shall be regarded as "consumed"

when it has been supplied to any person or enterprise for retail distribution,

medical use or scientific research; and "consumption" shall be construed

accordingly.

Article 2

Substances under control

1. Except as to measures of control which are limited to specified drugs, the

drugs in Schedule I are subject to all measures of control applicable to drugs

under this Convention and in particular to those prescribed in Articles 4(c), 19,

20, 21, 29, 30, 31, 32, 33, 34 and 37.

2. The drugs in Schedule II are subject to the same measures of control as drugs

in Schedule I with the exception of the measures prescribed in Article 30,

paragraphs 2 and 5, in respect of the retail trade.

Amendments relating to Schedules Schedule 4

No. , 2016

Narcotic Drugs Amendment Bill 2016

105

3. Preparations other than those in Schedule III are subject to the same measures

of control as the drugs which they contain, but estimates (Article 19) and

statistics (Article 20) distinct from those dealing with these drugs shall not be

required in the case of such preparations, and Article 29, paragraph 2(c) and

Article 30, paragraph 1(b)(ii) need not apply.

4. Preparations in Schedule III are subject to the same measures of control as

preparations containing drugs in Schedule II except that article 31, paragraphs

1(b) and 3 to 15, and, as regards their acquisition and retail distribution, article

34, paragraph (b), need not apply, and that for the purpose of estimates (article

19) and statistics (article 20) the information required shall be restricted to the

quantities of drugs used in the manufacture of such preparations.

5. The drugs in Schedule IV shall also be included in Schedule I and subject to

all measures of control applicable to drugs in the latter schedule, and in addition

thereto:

(a) A Party shall adopt any special measures of control which in its opinion are

necessary having regard to the particularly dangerous properties of a drug so

included; and

(b) A Party shall, if in its opinion the prevailing conditions in its country render

it the most appropriate means of protecting the public health and welfare,

prohibit the production, manufacture, export and import of, trade in, possession

or use of any such drug except for amounts which may be necessary for medical

and scientific research only, including clinical trials therewith to be conducted

under or subject to the direct supervision and control of the Party.

6. In addition to the measures of control applicable to all drugs in Schedule I,

opium is subject to the provisions of article 19, paragraph 1, sub-paragraph (f),

and of articles 21bis, 23 and 24, the coca leaf to those of articles 26 and 27 and

cannabis to those of article 28.

7. The opium poppy, the coca bush, the cannabis plant, poppy straw and

cannabis leaves are subject to the control measures prescribed in article 19,

paragraph 1, sub-paragraph (e), article 20, paragraph 1, sub-paragraph (g),

article 21bis and in articles 22 to 24; 22, 26 and 27; 22 and 28; 25; and 28,

respectively.

Schedule 4 Amendments relating to Schedules

106

Narcotic Drugs Amendment Bill 2016

No. , 2016

8. The Parties shall use their best endeavours to apply to substances which do

not fall under this Convention, but which may be used in the illicit manufacture

of drugs, such measures of supervision as may be practicable.

9. Parties are not required to apply the provisions of this Convention to drugs

which are commonly used in industry for other than medical or scientific

purposes, provided that:

(a) They ensure by appropriate methods of denaturing or by other means that

the drugs so used are not liable to be abused or have ill effects (Article 3,

paragraph 3) and that the harmful substances cannot in practice be recovered;

and

(b) They include in the statistical information (Article 20) furnished by them the

amount of each drug so used.

Article 3

Changes in the scope of control

1. Where a Party or the World Health Organization has information which in its

opinion may require an amendment to any of the Schedules, it shall notify the

Secretary-General and furnish him with the information in support of the

notification.

2. The Secretary-General shall transmit such notification, and any information

which he considers relevant, to the Parties, to the Commission, and, where the

notification is made by a Party, to the World Health Organization.

3. Where a notification relates to a substance not already in Schedule I or in

Schedule II,

(i) The Parties shall examine in the light of the available information the

possibility of the provisional application to the substance of all measures of

control applicable to drugs in Schedule I;

(ii) Pending its decision as provided in sub-paragraph (iii) of this paragraph, the

Commission may decide that the Parties apply provisionally to that substance

all measures of control applicable to drugs in Schedule I. The Parties shall apply

such measures provisionally to the substance in question;

Amendments relating to Schedules Schedule 4

No. , 2016

Narcotic Drugs Amendment Bill 2016

107

(iii) If the World Health Organization finds that the substance is liable to similar

abuse and productive of similar ill effects as the drugs in Schedule I or Schedule

II or is convertible into a drug, it shall communicate that finding to the

Commission which may, in accordance with the recommendation of the World

Health Organization, decide that the substance shall be added to Schedule I or

Schedule II.

4. If the World Health Organization finds that a preparation because of the

substances which it contains is not liable to abuse and cannot produce ill effects

(paragraph 3) and that the drug therein is not readily recoverable, the

Commission may, in accordance with the recommendation of the World Health

Organization, add that preparation to Schedule III.

5. If the World Health Organization finds that a drug in Schedule I is

particularly liable to abuse and to produce ill effects (paragraph 3) and that such

liability is not offset by substantial therapeutic advantages not possessed by

substances other than drugs in Schedule IV, the Commission may, in

accordance with the recommendation of the World Health Organization, place

that drug in Schedule IV.

6. Where a notification relates to a drug already in Schedule I or Schedule II or

to a preparation in Schedule III, the Commission, apart from the measure

provided for in paragraph 5, may, in accordance with the recommendation of

the World Health Organization, amend any of the Schedules by:

(a) Transferring a drug from Schedule I to Schedule II or from Schedule II to

Schedule I; or

(b) Deleting a drug or a preparation as the case may be, from a Schedule.

7. Any decision of the Commission taken pursuant to this Article shall be

communicated by the Secretary-General to all States Members of the United

Nations, to non-member States Parties to this Convention, to the World Health

Organization and to the Board. Such decision shall become effective with

respect to each Party on the date of its receipt of such communication, and the

Parties shall thereupon take such action as may be required under this

Convention.

8. (a) The decisions of the Commission amending any of the schedules shall be

subject to review by the Council upon the request of any Party filed within

ninety days from receipt of notification of the decision. The request for review

Schedule 4 Amendments relating to Schedules

108

Narcotic Drugs Amendment Bill 2016

No. , 2016

shall be sent to the Secretary-General together with all relevant information

upon which the request for review is based;

(b) The Secretary-General shall transmit copies of the request for review and

relevant information to the Commission, the World Health Organization and to

all the Parties inviting them to submit comments within ninety days. All

comments received shall be submitted to the Council for consideration;

and the decision of the Council shall be final. Notification of the Council's

decision shall be transmitted to all States Members of the United Nations, to

non-member States Parties to this Convention, to the Commission, to the World

Health Organization, and to the Board.

(d) During pendency of the review the original decision of the Commission

shall remain in effect.

9. Decisions of the Commission taken in accordance with this Article shall not

be subject to the review procedure provided for in Article 7.

Article 4

General obligations

1. The Parties shall take such legislative and administrative measures as may be

necessary:

(a) To give effect to and carry out the provisions of this Convention within their

own territories;

(b) To cooperate with other States in the execution of the provisions of this

Convention; and

and scientific purposes the production, manufacture, export, import, distribution

of, trade in, use and possession of drugs.

Article 5

The international control organs

Amendments relating to Schedules Schedule 4

No. , 2016

Narcotic Drugs Amendment Bill 2016

109

The Parties, recognizing the competence of the United Nations with respect to

the international control of drugs, agree to entrust to the Commission on

Narcotic Drugs of the Economic and Social Council, and to the International

Narcotics Control Board, the functions respectively assigned to them under this

Convention.

Article 6

Expenses of the international control organs

The expenses of the Commission and the Board will be borne by the United

Nations in such manner as shall be decided by the General Assembly. The

Parties which are not members of the United Nations shall contribute to these

expenses such amounts as the General Assembly finds equitable and assess

from time to time after consultation with the Governments of these Parties.

Article 7

Review of decisions and recommendations of the Commission

Except for decisions under Article 3, each decision or recommendation adopted

by the Commission pursuant to the provisions of this Convention shall be

subject to approval or modification by the Council or the General Assembly in

the same way as other decisions or recommendations of the Commission.

Article 8

Functions of the Commission

The Commission is authorized to consider all matters pertaining to the aims of

this Convention, and in particular:

(a) To amend the Schedules in accordance with Article 3;

(b) To call the attention of the Board to any matters which may be relevant to

the functions of the Board;

provisions of this Convention, including programs of scientific research and the

exchange of information of a scientific or technical nature; and

Schedule 4 Amendments relating to Schedules

110

Narcotic Drugs Amendment Bill 2016

No. , 2016

(d) To draw the attention of non-parties to decisions and recommendations

which it adopts under this Convention, with a view to their considering taking

action in accordance therewith.

Article 9

Composition and functions of the Board

1. The Board shall consist of thirteen members to be elected by the Council as

follows:

(a) Three members with medical, pharmacological or pharmaceutical

experience from a list of at least five persons nominated by the World Health

Organization; and

(b) Ten members from a list of persons nominated by the Members of the

United Nations and by Parties which are not Members of the United Nations.

2. Members of the Board shall be persons who, by their competence,

impartiality and disinterestedness, will command general confidence. During

their term of office they shall not hold any position or engage in any activity

which would be liable to impair their impartiality in the exercise of their

functions. The Council shall, in consultation with the Board, make all

arrangements necessary to ensure the full technical independence of the Board

in carrying out its functions.

3. The Council, with due regard to the principle of equitable geographic

representation, shall give consideration to the importance of including on the

Board, in equitable proportion, persons possessing a knowledge of the drug

situation in the producing, manufacturing, and consuming countries, and

connected with such countries.

4. The Board, in co-operation with Governments, and subject to the terms of

this Convention, shall endeavour to limit the cultivation, production,

manufacture and use of drugs to an adequate amount required for medical and

scientific purposes, to ensure their availability for such purposes and to prevent

illicit cultivation, production and manufacture of, and illicit trafficking in and

use of, drugs.

5. All measures taken by the Board under this Convention shall be those most

consistent with the intent to further the co-operation of Governments with the

Amendments relating to Schedules Schedule 4

No. , 2016

Narcotic Drugs Amendment Bill 2016

111

Board and to provide the mechanism for a continuing dialogue between

Governments and the Board which will lend assistance to and facilitate effective

national action to attain the aims of this Convention.

Article 10

Terms of office and remuneration of Members of the Board

1. The members of the Board shall serve for a period of five years, and may be

re-elected.

2. The term of office of each member of the Board shall end on the eve of the

first meeting of the Board which his successor shall be entitled to attend.

3. A member of the Board who has failed to attend three consecutive sessions

shall be deemed to have resigned.

4. The Council, on the recommendation of the Board, may dismiss a member of

the Board who has ceased to fulfil the conditions required for membership by

paragraph 2 of article 9. Such recommendation shall be made by an affirmative

vote of nine members of the Board.

5. Where a vacancy occurs on the Board during the term of office of a member,

the Council shall fill such vacancy as soon as possible and in accordance with

the applicable provisions of Article 9, by electing another member for the

remainder of the term.

6. The members of the Board shall receive an adequate remuneration as

determined by the General Assembly.

Article 11

Rules of procedure of the Board

1. The Board shall elect its own President and such other officers as it may

consider necessary and shall adopt its rules of procedure.

2. The Board shall meet as often as, in its opinion, may be necessary for the

proper discharge of its functions, but shall hold at least two sessions in each

calendar year.

Schedule 4 Amendments relating to Schedules

112

Narcotic Drugs Amendment Bill 2016

No. , 2016

3. The quorum necessary at meetings of the Board shall consist of eight

members.

Article 12

Administration of the estimate system

1. The Board shall fix the date or dates by which, and the manner in which, the

estimates as provided in Article 19 shall be furnished and shall prescribe the

forms therefor.

2. The Board shall, in respect of countries and territories to which this

Convention does not apply, request the Governments concerned to furnish

estimates in accordance with the provisions of this Convention.

3. If any State fails to furnish estimates in respect of any of its territories by the

date specified, the Board shall, as far as possible, establish the estimates. The

Board in establishing such estimates shall, to the extent practicable, do so in

cooperation with the Government concerned.

4. The Board shall examine the estimates, including supplementary estimates,

and, except as regards requirements for special purposes, may require such

information as it considers necessary in respect of any country or territory on

behalf of which an estimate has been furnished, in order to complete the

estimate or to explain any statement contained therein.

5. The Board, with a view to limiting the use and distribution of drugs to an

adequate amount required for medical and scientific purposes and to ensuring

their availability for such purposes, shall as expeditiously as possible confirm

the estimates, including supplementary estimates, or, with the consent of the

Government concerned, may amend such estimates. In case of a disagreement

between the Government and the Board, the latter shall have the right to

establish, communicate and publish its own estimates, including supplementary

estimates.

6. In addition to the reports mentioned in Article 15, the Board shall, at such

times as it shall determine but at least annually, issue such information on the

estimates as in its opinion will facilitate the carrying out of this Convention.

Article 13

Amendments relating to Schedules Schedule 4

No. , 2016

Narcotic Drugs Amendment Bill 2016

113

Administration of the statistical returns system

1. The Board shall determine the manner and form in which statistical returns

shall be furnished as provided in Article 20 and shall prescribe the forms

therefor.

2. The Board shall examine the returns with a view to determining whether a

Party or any other State has complied with the provisions of this Convention.

3. The Board may require such further information as it considers necessary to

complete or explain the information contained in such statistical returns.

4. It shall not be within the competence of the Board to question or express an

opinion on statistical information respecting drugs required for special purposes.

Article 14

Measures by the Board to ensure the execution of provisions of the Convention

1. (a) If on the basis of its examination of information submitted by

Governments to the Board under the provisions of this Convention, or of

information communicated by United Nations organs or by specialized agencies

or, provided that they are approved by the Commission on the Board's

recommendation, by either other intergovernmental organizations or

international non-governmental organizations which have direct competence in

the subject matter and which are in consultative status with the Economic and

Social Council under Article 71 of the Charter of the United Nations or which

enjoy a similar status by special agreement with the Council, the Board has

objective reasons to believe that the aims of this Convention are being seriously

endangered by reason of the failure of any Party, country or territory to carry

out the provisions of this Convention, the Board shall have the right to propose

to the Government concerned the opening of consultations or to request it to

furnish explanations. If, without any failure in implementing the provisions of

the Convention, a Party or a country or territory has become, or if there exists

evidence of a serious risk that it may become, an important centre of illicit

cultivation, production or manufacture of, or traffic in or consumption of drugs,

the Board has the right to propose to the Government concerned the opening of

consultations. Subject to the right of the Board to call the attention of the

Parties, the Council and the Commission to the matter referred to in

sub-paragraph (d) below, the Board shall treat as confidential a request for

Schedule 4 Amendments relating to Schedules

114

Narcotic Drugs Amendment Bill 2016

No. , 2016

information and an explanation by a Government or a proposal for consultations

and the consultations held with a Government under this sub-paragraph.

(b) After taking action under sub-paragraph (a) above, the Board, if satisfied

that it is necessary to do so, may call upon the Government concerned to adopt

such remedial measures as shall seem under the circumstances to be necessary

for the execution of the provisions of this Convention.

assessing a matter referred to in sub-paragraph (a) of this paragraph, propose to

the Government concerned that a study of the matter be carried out in its

territory by such means as the Government deems appropriate. If the

Government concerned decides to undertake this study, it may request the

Board to make available the expertise and the services of one or more persons

with the requisite competence to assist the officials of the Government in the

proposed study. The person or persons whom the Board intends to make

available shall be subject to the approval of the Government. The modalities of

this study and the time-limit within which the study has to be completed shall be

determined by consultation between the Government and the Board. The

Government shall communicate to the Board the results of the study and shall

indicate the remedial measures that it considers necessary to take.

(d) If the Board finds that the Government concerned has failed to give

satisfactory explanations when called upon to do so under sub-paragraph (a)

above, or has failed to adopt any remedial measures which it has been called

upon to take under sub-paragraph (b) above, or that there is a serious situation

that needs co-operative action at the international level with a view to

remedying it, it may call the attention of the Parties, the Council and the

Commission to the matter. The Board shall so act if the aims of this Convention

are being seriously endangered and it has not been possible to resolve the matter

satisfactorily in any other way. It shall also so act if it finds that there is a

serious situation that needs cooperative action at the international level with a

view to remedying it and that bringing such a situation to the notice of the

Parties, the Council and the Commission is the most appropriate method of

facilitating such cooperative action; after considering the reports of the Board,

and of the Commission if available on the matter, the Council may draw the

attention of the General Assembly to the matter.

2. The Board, when calling the attention of the Parties, the Council and the

Commission to a matter in accordance with paragraph 1(d) above, may, if it is

satisfied that such a course is necessary, recommend to Parties that they stop the

Amendments relating to Schedules Schedule 4

No. , 2016

Narcotic Drugs Amendment Bill 2016

115

import of drugs, the export of drugs, or both, from or to the country or territory

concerned, either for a designated period or until the Board shall be satisfied as

to the situation in that country or territory. The State concerned may bring the

matter before the Council.

3. The Board shall have the right to publish a report on any matter dealt with

under the provisions of this Article, and communicate it to the Council, which

shall forward it to all Parties. If the Board publishes in this report a decision

taken under this Article or any information relating thereto, it shall also publish

therein the views of the Government concerned if the latter so requests.

4. If in any case a decision of the Board which is published under this Article is

not unanimous, the views of the minority shall be stated.

5. Any State shall be invited to be represented at a meeting of the Board at

which a question directly interesting it is considered under this Article.

6. Decisions of the Board under this Article shall be taken by a two-thirds

majority of the whole number of the Board.

Article 14bis

Technical and financial assistance

In cases which it considers appropriate and either in addition or as an alternative

to measures set forth in article 14, paragraphs 1 and 2, the Board, with the

agreement of the Government concerned, may recommend to the competent

United Nations organs and to the specialized agencies that technical or financial

assistance, or both, be provided to the Government in support of its efforts to

carry out its obligations under this Convention, including those set out or

referred to in articles 2, 35, 38 and 38bis.

Article 15

Reports of the Board

1. The Board shall prepare an annual report on its work and such additional

reports as it considers necessary containing also an analysis of the estimates and

statistical information at its disposal, and, in appropriate cases, an account of the

explanations, if any, given by or required of Governments, together with any

Schedule 4 Amendments relating to Schedules

116

Narcotic Drugs Amendment Bill 2016

No. , 2016

observations and recommendations which the Board desires to make. These

reports shall be submitted to the Council through the Commission, which may

make such comments as it sees fit.

2. The reports shall be communicated to the Parties and subsequently published

by the Secretary-General. The Parties shall permit their unrestricted distribution.

Article 16

Secretariat

The secretariat services of the Commission and the Board shall be furnished by

the Secretary-General. In particular, the Secretary of the Board shall be

appointed by the Secretary-General in consultation with the Board.

Article 17

Special administration

The Parties shall maintain a special administration for the purpose of applying

the provisions of this Convention.

Article 18

Information to be furnished by Parties to the Secretary-General

1. The Parties shall furnish to the Secretary-General such information as the

Commission may request as being necessary for the performance of its

functions, and in particular:

(a) An annual report on the working of the Convention within each of their

territories;

(b) The text of all laws and regulations from time to time promulgated in order

to give effect to this Convention;

illicit traffic, including particulars of each case of illicit traffic discovered which

may be of importance, because of the light thrown on the source from which

Amendments relating to Schedules Schedule 4

No. , 2016

Narcotic Drugs Amendment Bill 2016

117

drugs are obtained for the illicit traffic, or because of quantities involved or the

method employed by illicit traffickers; and

(d) The names and addresses of the governmental authorities empowered to

issue export and import authorizations or certificates.

2. Parties shall furnish the information referred to in the preceding paragraph in

such manner and by such dates and use such forms as the Commission may

request.

Article 19

Estimates of drug requirements

1. The Parties shall furnish to the Board each year for each of their territories, in

the manner and form prescribed by the Board, estimates on forms supplied by it

in respect of the following matters:

(a) Quantities of drugs to be consumed for medical and scientific purposes;

(b) Quantities of drugs to be utilized for the manufacture of other drugs, of

preparations in Schedule III, and of substances not covered by this Convention;

estimates relate;

(d) Quantities of drugs necessary for addition to special stocks;

(e) The area (in hectares) and the geographical location of land to be used for

the cultivation of the opium poppy;

(f) Approximate quantity of opium to be produced;

(g) The number of industrial establishments which will manufacture synthetic

drugs; and

(h) The quantities of synthetic drugs to be manufactured by each of the

establishments referred to in the preceding sub-paragraph.

Schedule 4 Amendments relating to Schedules

118

Narcotic Drugs Amendment Bill 2016

No. , 2016

2. (a) Subject to the deductions referred to in paragraph 3 of article 21, the total

of the estimates for each territory and each drug except opium and synthetic

drugs shall consist of the sum of the amounts specified under

sub-paragraphs (a), (b) and (d) of paragraph 1 of this article, with the addition of

any amount required to bring the actual stocks on hand at 31 December of the

preceding year to the level estimated as provided in sub-paragraph (c) of

paragraph 1.

(b) Subject to the deductions referred to in paragraph 3 of article 21 regarding

imports and in paragraph 2 of article 21bis, the total of the estimates for opium

for each territory shall consist either of the sum of the amounts specified under

sub-paragraphs (a), (b) and (d) of paragraph 1 of this article, with the addition of

any amount required to bring the actual stocks on hand at 31 December of the

preceding year to the level estimated as provided in sub-paragraph (c) of

paragraph 1, or of the amount specified under sub-paragraph (f) of paragraph 1

of this article, whichever is higher.

the estimates for each territory for each synthetic drug shall consist either of the

sum of the amounts specified under sub-paragraphs (a), (b) and (d) of

paragraph 1 of this article, with the addition of any amount required to bring the

actual stocks on hand at 31 December of the preceding year to the level

estimated as provided in sub-paragraph (c) of paragraph 1, or of the sum of the

amounts specified under sub-paragraph (h) of paragraph 1 of this article,

whichever is higher.

(d) The estimates furnished under the preceding sub-paragraphs of this

paragraph shall be appropriately modified to take into account any quantity

seized and thereafter released for licit use as well as any quantity taken from

special stocks for the requirements of the civilian population.

3. Any State may during the year furnish supplementary estimates with an

explanation of the circumstances necessitating such estimates.

4. The Parties shall inform the Board of the method used for determining

quantities shown in the estimates and of any changes in the said method.

5. Subject to the deductions referred to in paragraph 3 of article 21, and account

being taken where appropriate of the provisions of article 21bis, the estimates

shall not be exceeded.

Amendments relating to Schedules Schedule 4

No. , 2016

Narcotic Drugs Amendment Bill 2016

119

Article 20

Statistical returns to be furnished to the Board

1. The Parties shall furnish to the Board for each of their territories, in the

manner and form prescribed by the Board, statistical returns on forms supplied

by it in respect of the following matters:

(a) Production or manufacture of drugs;

(b) Utilization of drugs for the manufacture of other drugs, of preparations in

Schedule III and of substances not covered by this Convention, and utilization

of poppy straw for the manufacture of drugs;

(d) Imports and exports of drugs and poppy straw;

(e) Seizures of drugs and disposal thereof;

(f) Stocks of drugs as at 31 December of the year to which the returns relate;

and

(g) Ascertainable area of cultivation of the opium poppy.

2. (a) The statistical returns in respect of the matters referred to in paragraph 1,

except sub-paragraph (d), shall be prepared annually and shall be furnished to

the Board not later than 30 June following the year to which they relate.

(b) The statistical returns in respect to the matters referred to in

sub-paragraph (d) of paragraph 1 shall be prepared quarterly and shall be

furnished to the Board within one month after the end of the quarter to which

they relate.

3. The Parties are not required to furnish statistical returns respecting special

stocks, but shall furnish separately returns respecting drugs imported into or

procured within the country or territory for special purposes, as well as

quantities of drugs withdrawn from special stocks to meet the requirements of

the civilian population.

Schedule 4 Amendments relating to Schedules

120

Narcotic Drugs Amendment Bill 2016

No. , 2016

Article 21

Limitation of manufacture and importation

1. The total of the quantities of each drug manufactured and imported by any

country or territory in any one year shall not exceed the sum of the following:

(a) The quantity consumed, within the limit of the relevant estimate, for medical

and scientific purposes;

(b) The quantity used, within the limit of the relevant estimate, for the

manufacture of other drugs, of preparations in Schedule III, and of substances

not covered by this Convention;

(d) The quantity added to the stock for the purpose of bringing that stock up to

the level specified in the relevant estimate; and

(e) The quantity acquired within the limit of the relevant estimate for special

purposes.

2. From the sum of the quantities specified in paragraph 1 there shall be

deducted any quantity that has been seized and released for licit use, as well as

any quantity taken from special stocks for the requirements of the civilian

population.

3. If the Board finds that the quantity manufactured and imported in any one

year exceeds the sum of the quantities specified in paragraph 1, less any

deductions required under paragraph 2 of this Article, any excess so established

and remaining at the end of the year shall, in the following year, be deducted

from the quantity to be manufactured or imported and from the total of the

estimates as defined in paragraph 2 of Article 19.

4. (a) If it appears from the statistical returns on imports or exports (Article 20)

that the quantity exported to any country or territory exceeds the total of the

estimates for that country or territory, as defined in paragraph 2 of Article 19,

with the addition of the amounts shown to have been exported, and after

deduction of any excess as established in paragraph 3 of this Article, the Board

Amendments relating to Schedules Schedule 4

No. , 2016

Narcotic Drugs Amendment Bill 2016

121

may notify this fact to the States which, in the opinion of the Board, should be

so informed;

(b) On receipt of such a notification, Parties shall not during the year in question

authorize any further exports of the drug concerned to that country or territory,

except:

(i) In the event of a supplementary estimate being furnished for that country or

territory in respect both of any quantity over-imported and of the additional

quantity required, or

(ii) In exceptional cases where the export, in the opinion of the government of

the exporting country, is essential for the treatment of the sick.

Article 21bis

Limitation of production of opium

1. The production of opium by any country or territory shall be organized and

controlled in such manner as to ensure that, as far as possible, the quantity

produced in any one year shall not exceed the estimate of opium to be produced

as established under paragraph 1(f) of article 19.

2. If the Board finds on the basis of information at its disposal in accordance

with the provisions of this Convention that a Party which has submitted an

estimate under paragraph 1(f) of article 19 has not limited opium produced

within its borders to licit purposes in accordance with relevant estimates and

that a significant amount of opium produced, whether licitly or illicitly, within

the borders of such a Party, has been introduced into the illicit traffic, it may,

after studying the explanations of the Party concerned, which shall be submitted

to it within one month after notification of the finding in question, decide to

deduct all, or a portion, of such an amount from the quantity to be produced and

from the total of the estimates as defined in paragraph 2(b) of article 19 for the

next year in which such a deduction can be technically accomplished, taking

into account the season of the year and contractual commitments to export

opium. This decision shall take effect ninety days after the Party concerned is

notified thereof

3. After notifying the Party concerned of the decision it has taken under

paragraph 2 above with regard to a deduction, the Board shall consult with that

Party in order to resolve the situation satisfactorily.

Schedule 4 Amendments relating to Schedules

122

Narcotic Drugs Amendment Bill 2016

No. , 2016

4. If the situation is not satisfactorily resolved, the Board may utilize the

provisions of article 14 where appropriate.

5. In taking its decision with regard to a deduction under paragraph 2 above, the

Board shall take into account not only all relevant circumstances including

those giving rise to the illicit traffic problem referred to in paragraph 2 above,

but also any relevant new control measures which may have been adopted by

the Party.

Article 22

Special provision applicable to cultivation

1. Whenever the prevailing conditions in the country or a territory of a Party

render the prohibition of the cultivation of the opium poppy, the coca bush or

the cannabis plant the most suitable measure, in its opinion, for protecting the

public health and welfare and preventing the diversion of drugs into the illicit

traffic, the Party concerned shall prohibit cultivation.

2. A Party prohibiting cultivation of the opium poppy or the cannabis plant shall

take appropriate measures to seize any plants illicitly cultivated and to destroy

them, except for small quantities required by the Party for scientific or research

purposes.

Article 23

National opium agencies

1. A Party that permits the cultivation of the opium poppy for the production of

opium shall establish, if it has not already done so, and maintain, one or more

government agencies (hereafter in this Article referred to as the Agency) to

carry out the functions required under this Article.

2. Each such Party shall apply the following provisions to the cultivation of the

opium poppy for the production of opium and to opium:

(a) The Agency shall designate the areas in which, and the plots of land on

which, cultivation of the opium poppy for the purpose of producing opium shall

be permitted.

Amendments relating to Schedules Schedule 4

No. , 2016

Narcotic Drugs Amendment Bill 2016

123

(b) Only cultivators licensed by the Agency shall be authorized to engage in

such cultivation.

permitted.

(d) All cultivators of the opium poppy shall be required to deliver their total

crops of opium to the Agency. The Agency shall purchase and take physical

possession of such crops as soon as possible, but not later than four months after

the end of the harvest.

(e) The Agency shall, in respect of opium, have the exclusive right of importing,

exporting, wholesale trading and maintaining stocks other than those held by

manufacturers of opium alkaloids, medicinal opium or opium preparations.

Parties need not extend this exclusive right to medicinal opium and opium

preparations.

3. The governmental functions referred to in paragraph 2 shall be discharged by

a single government agency if the constitution of the Party concerned permits it.

Article 24

Limitation on production of opium for international trade

1. (a) If any Party intends to initiate the production of opium or to increase

existing production, it shall take account of the prevailing world need for opium

in accordance with the estimates thereof published by the Board so that the

production of opium by such Party does not result in over-production of opium

in the world.

(b) A Party shall not permit the production of opium or increase the existing

production thereof if in its opinion such production or increased production in

its territory may result in illicit traffic in opium.

2. (a) Subject to paragraph 1, where a Party which as of 1 January 1961 was not

producing opium for export desires to export opium which it produces, in

amounts not exceeding five tons annually, it shall notify the Board, furnishing

with such notification information regarding:

Schedule 4 Amendments relating to Schedules

124

Narcotic Drugs Amendment Bill 2016

No. , 2016

(i) The controls in force as required by this Convention respecting the opium to

be produced and exported; and

(ii) The name of the country or countries to which it expects to export such

opium;

and the Board may either approve such notification or may recommend to the

Party that it not engage in the production of opium for export.

(b) Where a Party other than a Party referred to in paragraph 3 desires to

produce opium for export in amounts exceeding five tons annually, it shall

notify the Council, furnishing with such notification relevant information

including:

(i) The estimated amounts to be produced for export;

(ii) The controls existing or proposed respecting the opium to be produced;

(iii) The name of the country or countries to which it expects to export such

opium;

and the Council shall either approve the notification or may recommend to the

Party that it not engage in the production of opium for export.

3. Notwithstanding the provisions of sub-paragraphs (a) and (b ) of paragraph 2,

a Party that during ten years immediately prior to 1 January 1961 exported

opium which such country produced may continue to export opium which it

produces.

4. (a) A Party shall not import opium from any country or territory except

opium produced in the territory of:

(i) A Party referred to in paragraph 3;

(ii) A Party that has notified the Board as provided in sub-paragraph (a) of

paragraph 2; or

(iii) A Party that has received the approval of the Council as provided in

sub-paragraph (b) of paragraph 2.

Amendments relating to Schedules Schedule 4

No. , 2016

Narcotic Drugs Amendment Bill 2016

125

(b) Notwithstanding sub-paragraph (a) of this paragraph, a Party may import

opium produced by any country which produced and exported opium during the

ten years prior to 1 January 1961 if such country has established and maintains a

national control organ or agency for the purposes set out in Article 23 and has in

force an effective means of ensuring that the opium it produces is not diverted

into the illicit traffic.

5. The provisions of this Article do not prevent a Party:

(a) From producing opium sufficient for its own requirements; or

(b) From exporting opium seized in the illicit traffic, to another Party in

accordance with the requirements of this Convention.

Article 25

Control of poppy straw

1. A Party that permits the cultivation of the opium poppy for purposes other

than the production of opium shall take all measures necessary to ensure:

(a) That opium is not produced from such opium poppies; and

(b) That the manufacture of drugs from poppy straw is adequately controlled.

2. The Parties shall apply to poppy straw the system of import certificates and

export authorizations as provided in Article 31, paragraphs 4 to 15.

3. The Parties shall furnish statistical information on the import and export of

poppy straw as required for drugs under Article 20, paragraphs 1(d) and 2(b).

Article 26

The coca bush and coca leaves

1. If a Party permits the cultivation of the coca bush, it shall apply thereto and to

coca leaves the system of controls as provided in Article 23 respecting the

control of the opium poppy, but as regards paragraph 2(d) of that Article, the

requirements imposed on the Agency therein referred to shall be only to take

physical possession of the crops as soon as possible after the end of the harvest.

Schedule 4 Amendments relating to Schedules

126

Narcotic Drugs Amendment Bill 2016

No. , 2016

2. The Parties shall so far as possible enforce the uprooting of all coca bushes

which grow wild. They shall destroy the coca bushes if illegally cultivated.

Article 27

Additional provisions relating to coca leaves

1. The Parties may permit the use of coca leaves for the preparation of a

flavouring agent, which shall not contain any alkaloids, and, to the extent

necessary for such use, may permit the production, import, export, trade in and

possession of such leaves.

2. The Parties shall furnish separately estimates (Article 19) and statistical

information (Article 20) in respect of coca leaves for preparation of the

flavouring agent, except to the extent that the same coca leaves are used for the

extraction of alkaloids and the flavouring agent, and so explained in the

estimates and statistical information.

Article 28

Control of cannabis

1. If a Party permits the cultivation of the cannabis plant for the production of

cannabis or cannabis resin, it shall apply thereto the system of controls as

provided in Article 23 respecting the control of the opium poppy.

2. This Convention shall not apply to the cultivation of the cannabis plant

exclusively for industrial purposes (fibre and seed) or horticultural purposes.

3. The Parties shall adopt such measures as may be necessary to prevent the

misuse of, and illicit traffic in, the leaves of the cannabis plant.

Article 29

Manufacture

1. The Parties shall require that the manufacture of drugs be under licence

except where such manufacture is carried out by a State enterprise or State

enterprises.

Amendments relating to Schedules Schedule 4

No. , 2016

Narcotic Drugs Amendment Bill 2016

127

2. The Parties shall:

(a) Control all persons and enterprises carrying on or engaged in the

manufacture of drugs;

(b) Control under licence the establishments and premises in which such

manufacture may take place; and

specifying the kinds and amounts of drugs which they shall be entitled to

manufacture. A periodical permit, however, need not be required for

preparations.

3. The Parties shall prevent the accumulation, in the possession of drug

manufacturers, of quantities of drugs and poppy straw in excess of those

required for the normal conduct of business, having regard to the prevailing

market conditions.

Article 30

Trade and distribution

1. (a) The Parties shall require that the trade in and distribution of drugs be

under licence except where such trade or distribution is carried out by a State

enterprise or State enterprises.

(b) The Parties shall:

(i) Control all persons and enterprises carrying on or engaged in the trade in or

distribution of drugs;

(ii) Control under licence the establishments and premises in which such trade

or distribution may take place. The requirement of licensing need not apply to

preparations.

apply to persons duly authorized to perform and while performing therapeutic

or scientific functions.

2. The Parties shall also:

Schedule 4 Amendments relating to Schedules

128

Narcotic Drugs Amendment Bill 2016

No. , 2016

(a) Prevent the accumulation in the possession of traders, distributors, State

enterprises or duly authorized persons referred to above, of quantities of drugs

and poppy straw in excess of those required for the normal conduct of business,

having regard to the prevailing market conditions; and

(b) (i) Require medical prescriptions for the supply or dispensation of drugs to

individuals. This requirement need not apply to such drugs as individuals may

lawfully obtain, use, dispense or administer in connexion with their duly

authorized therapeutic functions; and

(ii) If the Parties deem these measures necessary or desirable, require that

prescriptions for drugs in Schedule I should be written on official forms to be

issued in the form of counterfoil books by the competent governmental

authorities or by authorized professional associations.

3. It is desirable that Parties require that written or printed offers of drugs,

advertisements of every kind or descriptive literature relating to drugs and used

for commercial purposes, interior wrappings of packages containing drugs, and

labels under which drugs are offered for sale indicate the international

non-proprietary name communicated by the World Health Organization.

4. If a Party considers such measures necessary or desirable, it shall require that

the inner package containing a drug or wrapping thereof shall bear a clearly

visible double red band. The exterior wrapping of the package in which such

drug is contained shall not bear a double red band.

5. A Party shall require that the label under which a drug is offered for sale

show the exact drug content by weight or percentage. This requirement of label

information need not apply to a drug dispensed to an individual on medical

prescription.

6. The provisions of paragraphs 2 and 5 need not apply to the retail trade in or

retail distribution of drugs in Schedule II.

Article 31

Special provisions relating to international trade

1. The Parties shall not knowingly permit the export of drugs to any country or

territory except:

Amendments relating to Schedules Schedule 4

No. , 2016

Narcotic Drugs Amendment Bill 2016

129

(a) In accordance with the laws and regulations of that country or territory; and

(b) Within the limits of the total of the estimates for that country or territory, as

defined in paragraph 2 of Article 19, with the addition of the amounts intended

to be re-exported.

2. The Parties shall exercise in free ports and zones the same supervision and

control as in other parts of their territories, provided, however, that they may

apply more drastic measures.

3. The Parties shall:

(a) Control under licence the import and export of drugs except where such

import or export is carried out by a State enterprise or enterprises;

(b) Control all persons and enterprises carrying on or engaged in such import or

export.

4. (a) Every Party permitting the import or export of drugs shall require a

separate import or export authorization to be obtained for each such import or

export whether it consists of one or more drugs.

(b) Such authorization shall state the name of the drug, the international

non-proprietary name if any, the quantity to be imported or exported, and the

name and address of the importer and exporter, and shall specify the period

within which the importation or exportation must be effected.

certificate (paragraph 5) and the authority by whom it has been issued.

(d) The import authorization may allow an importation in more than one

consignment.

5. Before issuing an export authorization the Parties shall require an import

certificate, issued by the competent authorities of the importing country or

territory and certifying that the importation of the drug or drugs referred to

therein, is approved and such certificate shall be produced by the person or

establishment applying for the export authorization. The Parties shall follow as

closely as may be practicable the form of import certificate approved by the

Commission.

Schedule 4 Amendments relating to Schedules

130

Narcotic Drugs Amendment Bill 2016

No. , 2016

6. A copy of the export authorization shall accompany each consignment, and

the Government issuing the export authorization shall send a copy to the

Government of the importing country or territory.

7. (a) The Government of the importing country or territory, when the

importation has been effected or when the period fixed for the importation has

expired, shall return the export authorization with an endorsement to that effect,

to the Government of the exporting country or territory.

(b) The endorsement shall specify the amount actually imported.

exported, the quantity actually exported shall be stated by the competent

authorities on the export authorization and on any official copy thereof.

8. Exports of consignments to a post office box, or to a bank to the account of a

party other than the party named in the export authorization, shall be prohibited.

9. Exports of consignments to a bonded warehouse are prohibited unless the

government of the importing country certifies on the import certificate,

produced by the person or establishment applying for the export authorization,

that it has approved the importation for the purpose of being placed in a bonded

warehouse. In such case the export authorization shall specify that the

consignment is exported for such purpose. Each withdrawal from the bonded

warehouse shall require a permit from the authorities having jurisdiction over

the warehouse and, in the case of a foreign destination shall be treated as if it

were a new export within the meaning of this Convention.

10. Consignments of drugs entering or leaving the territory of a Party not

accompanied by an export authorization shall be detained by the competent

authorities.

11. A Party shall not permit any drugs consigned to another country to pass

through its territory, whether or not the consignment is removed from the

conveyance in which it is carried, unless a copy of the export authorization for

such consignment is produced to the competent authorities of such Party.

12. The competent authorities of any country or territory through which a

consignment of drugs is permitted to pass shall take all due measures to prevent

the diversion of the consignment to a destination other than that named in the

accompanying copy of the export authorization unless the Government of that

Amendments relating to Schedules Schedule 4

No. , 2016

Narcotic Drugs Amendment Bill 2016

131

country or territory through which the consignment is passing authorizes the

diversion. The Government of the country or territory of transit shall treat any

requested diversion as if the diversion were an export from the country or

territory of transit to the country or territory of new destination. If the diversion

is authorized, then provisions of paragraph 7(a) and (b) shall also apply between

the country or territory of transit and the country or territory which originally

exported the consignment.

13. No consignment of drugs while in transit, or whilst being stored in a bonded

warehouse, may be subjected to any process which would change the nature of

the drugs in question. The packing may not be altered without the permission of

the competent authorities.

14. The provisions of paragraphs 11 to 13 relating to the passage of drugs

through the territory of a Party do not apply where the consignment in question

is transported by aircraft which does not land in the country or territory of

transit. If the aircraft lands in any such country or territory, those provisions

shall be applied so far as circumstances require.

15. The provisions of this Article are without prejudice to the provisions of any

international agreements which limit the control which may be exercised by any

of the Parties over drugs in transit.

16. Nothing in this Article other than paragraphs 1(a) and 2 need apply in the

case of preparations in Schedule III.

Article 32

Special provisions concerning the carriage of drugs in first-aid kits of ships or

aircraft engaged in international traffic

1. The international carriage by ships or aircraft of such limited amounts of

drugs as may be needed during their journey or voyage for first-aid purposes or

emergency cases shall not be considered to be import, export or passage through

a country within the meaning of this Convention.

2. Appropriate safeguards shall be taken by the country of registry to prevent

the improper use of drugs referred to in paragraph 1 or their diversion for illicit

purposes. The Commission, in consultation with the appropriate international

organizations, shall recommend such safeguards.

Schedule 4 Amendments relating to Schedules

132

Narcotic Drugs Amendment Bill 2016

No. , 2016

3. Drugs carried by ships or aircraft in accordance with paragraph 1 shall be

subject to the laws, regulations, permits and licences of the country of registry,

without prejudice to any rights of the competent local authorities to carry out

checks, inspections and other control measures on board ships or aircraft. The

administration of such drugs in the case of emergency shall not be considered a

violation of the requirements of Article 30, paragraph 2(b).

Article 33

Possession of drugs

The Parties shall not permit the possession of drugs except under legal

authority.

Article 34

Measures of supervision and inspection

The Parties shall require:

(a) That all persons who obtain licences as provided in accordance with this

Convention, or who have managerial or supervisory positions in a State

enterprise established in accordance with this Convention, shall have adequate

qualifications for the effective and faithful execution of the provisions of such

laws and regulations as are enacted in pursuance thereof; and

(b) That governmental authorities, manufacturers, traders, scientists, scientific

institutions and hospitals keep such records as will show the quantities of each

drug manufactured and of each individual acquisition and disposal of drugs.

Such records shall respectively be preserved for a period of not less than two

years. Where counterfoil books (Article 30, paragraph 2(b)) of official

prescriptions are used, such books including the counterfoils shall also be kept

for a period of not less than two years.

Article 35

Action against the illicit traffic

Having due regard to their constitutional, legal and administrative systems, the

Parties shall:

Amendments relating to Schedules Schedule 4

No. , 2016

Narcotic Drugs Amendment Bill 2016

133

(a) Make arrangements at the national level for co-ordination of preventive and

repressive action against the illicit traffic; to this end they may usefully

designate an appropriate agency responsible for such co-ordination;

(b) Assist each other in the campaign against the illicit traffic in narcotic drugs;

organizations of which they are members with a view to maintaining a

coordinated campaign against the illicit traffic;

(d) Ensure that international co-operation between the appropriate agencies be

conducted in an expeditious manner;

(e) Ensure that where legal papers are transmitted internationally for the

purposes of a prosecution, the transmittal be effected in an expeditious manner

to the bodies designated by the Parties; this requirement shall be without

prejudice to the right of a Party to require that legal papers be sent to it through

the diplomatic channel;

(f) Furnish, if they deem it appropriate, to the Board and the Commission

through the Secretary-General, in addition to information required by article 18,

information relating to illicit drug activity within their borders, including

information on illicit cultivation, production, manufacture and use of, and on

illicit trafficking in, drugs; and

(g) Furnish the information referred to in the preceding paragraph as far as

possible in such manner and by such dates as the Board may request; if

requested by a Party, the Board may offer its advice to it in furnishing the

information and in endeavouring to reduce the illicit drug activity within the

borders of that Party.

Article 36

Penal provisions

1. (a) Subject to its constitutional limitations, each Party shall adopt such

measures as will ensure that cultivation, production, manufacture, extraction,

preparation, possession, offering, offering for sale, distribution, purchase, sale,

delivery on any terms whatsoever, brokerage, dispatch, dispatch in transit,

transport, importation and exportation of drugs contrary to the provisions of this

Convention, and any other action which in the opinion of such Party may be

Schedule 4 Amendments relating to Schedules

134

Narcotic Drugs Amendment Bill 2016

No. , 2016

contrary to the provisions of this Convention, shall be punishable offences when

committed intentionally, and that serious offences shall be liable to adequate

punishment particularly by imprisonment or other penalties of deprivation of

liberty.

(b) Notwithstanding the preceding sub-paragraph, when abusers of drugs have

committed such offences, the Parties may provide, either as an alternative to

conviction or punishment or in addition to conviction or punishment, that such

abusers shall undergo measures of treatment, education, after-care,

rehabilitation and social reintegration in conformity with paragraph 1 of article

38.

2. Subject to the constitutional limitations of a Party, its legal system and

domestic law:

(a) (i) Each of the offences enumerated in paragraph 1, if committed in different

countries, shall be considered as a distinct offence;

(ii) Intentional participation in, conspiracy to commit and attempts to commit,

any of such offences, and preparatory acts and financial operations in connexion

with the offences referred to in this article, shall be punishable offences as

provided in paragraph 1;

(iii) Foreign convictions for such offences shall be taken into account for the

purpose of establishing recidivism; and

(iv) Serious offences heretofore referred to committed either by nationals or by

foreigners shall be prosecuted by the Party in whose territory the offence was

committed, or by the Party in whose territory the offender is found if extradition

is not acceptable in conformity with the law of the Party to which application is

made, and if such offender has not already been prosecuted and judgement

given.

(b) (i) Each of the offences enumerated in paragraphs 1 and 2(a)(ii) of this

article shall be deemed to be included as an extraditable offence in any

extradition treaty existing between Parties. Parties undertake to include such

offences as extraditable offences in every extradition treaty to be concluded

between them.

(ii) If a Party which makes extradition conditional on the existence of a treaty

receives a request for extradition from another Party with which it has no

Amendments relating to Schedules Schedule 4

No. , 2016

Narcotic Drugs Amendment Bill 2016

135

extradition treaty, it may at its option consider this Convention as the legal basis

for extradition in respect of the offences enumerated in paragraphs 1 and 2(a)(ii)

of this article. Extradition shall be subject to the other conditions provided by

the law of the requested Party.

(iii) Parties which do not make extradition conditional on the existence of a

treaty shall recognize the offences enumerated in paragraphs 1 and 2(a)(ii) of

this article as extraditable offences between themselves, subject to the

conditions provided by the law of the requested Party.

(iv) Extradition shall be granted in conformity with the law of the Party to

which application is made, and, notwithstanding sub-paragraphs (b)(i), (ii) and

(iii) of this paragraph, the Party shall have the right to refuse to grant the

extradition in cases where the competent authorities consider that the offence is

not sufficiently serious.

3. The provisions of this Article shall be subject to the provisions of the

criminal law of the Party concerned on questions of jurisdiction.

4. Nothing contained in this Article shall affect the principle that the offences to

which it refers shall be defined, prosecuted and punished in conformity with the

domestic law of a Party.

Article 37

Seizure and confiscation

Any drugs, substances and equipment used in or intended for the commission of

any of the offences, referred to in Article 36, shall be liable to seizure and

confiscation.

Article 38

Measures against the abuse of drugs

1. The Parties shall give special attention to and take all practicable measures

for the prevention of abuse of drugs and for the early identification, treatment,

education, after-care, rehabilitation and social reintegration of the persons

involved and shall coordinate their efforts to these ends.

Schedule 4 Amendments relating to Schedules

136

Narcotic Drugs Amendment Bill 2016

No. , 2016

2. The Parties shall as far as possible promote the training of personnel in the

treatment, after-care, rehabilitation and social reintegration of abusers of drugs.

3. The Parties shall take all practicable measures to assist persons whose work

so requires to gain an understanding of the problems of abuse of drugs and of its

prevention, and shall also promote such understanding among the general public

if there is a risk that abuse of drugs will become widespread.

Article 38bis

Agreement on regional centres

If a Party considers it desirable as part of its action against the illicit traffic in

drugs, having due regard to its constitutional, legal and administrative systems,

and, if it so desires, with the technical advice of the Board or the specialized

agencies, it shall promote the establishment, in consultation with other

interested Parties in the region, of agreements which contemplate the

development of regional centres for scientific research and education to combat

the problems resulting from the illicit use of and traffic in drugs.

Article 39

Application of stricter national control measures than those required by this

Convention

Notwithstanding anything contained in this Convention, a Party shall not be, or

be deemed to be, precluded from adopting measures of control more strict or

severe than those provided by this Convention and in particular from requiring

that preparations in Schedule III or drugs in Schedule II be subject to all or such

of the measures of control applicable to drugs in Schedule I as in its opinion is

necessary or desirable for the protection of the public health or welfare.

Article 40

Languages of the Convention and procedure for signature, ratification and

accession

1. This Convention, of which the Chinese, English, French, Russian and

Spanish texts are equally authentic, shall be open for signature until 1 August

1961 on behalf of any Member of the United Nations, of any non-member State

Amendments relating to Schedules Schedule 4

No. , 2016

Narcotic Drugs Amendment Bill 2016

137

which is a Party to the Statute of the International Court of Justice or member of

a specialized agency of the United Nations, and also of any other State which

the Council may invite to become a Party.

2. This Convention is subject to ratification. The instruments of ratification shall

be deposited with the Secretary-General.

3. This Convention shall be open after 1 August 1961 for accession by the

States referred to in paragraph 1. The instruments of accession shall be

deposited with the Secretary-General.

Article 41

Entry into force

1. This Convention shall come into force on the thirtieth day following the date

on which the fortieth instrument of ratification or accession is deposited in

accordance with Article 40.

2. In respect of any other State depositing an instrument of ratification or

accession after the date of deposit of the said fortieth instrument, this

Convention shall come into force on the thirtieth day after the deposit by that

State of its instrument of ratification or accession.

Article 42

Territorial application

This Convention shall apply to all non-metropolitan territories for the

international relations of which any Party is responsible, except where the

previous consent of such a territory is required by the Constitution of the Party

or of the territory concerned, or required by custom. In such case the Party shall

endeavour to secure the needed consent of the territory within the shortest

period possible, and when that consent is obtained the Party shall notify the

Secretary-General. This Convention shall apply to the territory or territories

named in such notification from the date of its receipt by the Secretary-General.

In those cases where the previous consent of the non-metropolitan territory is

not required, the Party concerned shall, at the time of signature, ratification or

accession, declare the non-metropolitan territory or territories to which this

Convention applies.

Schedule 4 Amendments relating to Schedules

138

Narcotic Drugs Amendment Bill 2016

No. , 2016

Article 43

Territories for the purposes of Articles 19, 20, 21 and 31

1. Any Party may notify the Secretary-General that, for the purposes of Articles

19, 20, 21 and 31, one of its territories is divided into two or more territories, or

that two or more of its territories are consolidated into a single territory.

2. Two or more Parties may notify the Secretary-General that, as the result of

the establishment of a customs union between them, those Parties constitute a

single territory for the purposes of Articles 19, 20, 21 and 31.

3. Any notification under paragraph 1 or 2 above shall take effect on 1 January

of the year following the year in which the notification was made.

Article 44

Termination of previous international treaties

1. The provisions of this Convention, upon its coming into force, shall, as

between Parties hereto, terminate and replace the provisions of the following

treaties:

(a) International Opium Convention, signed at The Hague on 23 January 1912;

(b) Agreement concerning the Manufacture of, Internal Trade in and Use of

Prepared Opium, signed at Geneva on 11 February 1925;

(d) Convention for Limiting the Manufacture and Regulating the Distribution of

Narcotic Drugs, signed at Geneva on 13 July 1931;

(e) Agreement for the Control of Opium Smoking in the Far East, signed at

Bangkok on 27 November 1931;

(f) Protocol signed at Lake Success on 11 December 1946, amending the

Agreements, Conventions and Protocols on Narcotic Drugs concluded at The

Hague on 23 January 1912, at Geneva on 11 February 1925 and 19 February

Amendments relating to Schedules Schedule 4

No. , 2016

Narcotic Drugs Amendment Bill 2016

139

1925 and 13 July 1931, at Bangkok on 27 November 1931 and at Geneva on

26 June 1936, except as it affects the last-named Convention;

(g) The Conventions and Agreements referred to in sub-paragraphs (a) to (e) as

amended by the Protocol of 1946 referred to in sub-paragraph (f);

(h) Protocol signed at Paris on 19 November 1948 bringing under International

Control Drugs outside the Scope of the Convention of 13 July 1931 for Limiting

the Manufacture and Regulating the Distribution of Narcotic Drugs, as amended

by the Protocol signed at Lake Success on 11 December 1946;

(i) Protocol for Limiting and Regulating the Cultivation of the Poppy Plant, the

Production of, International and Wholesale Trade in, and Use of Opium, signed

at New York on 23 June 1953, should that Protocol have come into force.

2. Upon the coming into force of this Convention, Article 9 of the Convention

for the Suppression of the Illicit Traffic in Dangerous Drugs, signed at Geneva

on 26 June 1936, shall, between the Parties thereto which are also Parties to this

Convention, be terminated, and shall be replaced by paragraph 2(b) of Article

36 of this Convention; provided that such a Party may by notification to the

Secretary-General continue in force the said Article 9.

Article 45

Transitional provisions

1. The functions of the Board provided for in Article 9 shall, as from the date of

the corning into force of this Convention (Article 41, paragraph 1), be

provisionally carried out by the Permanent Central Board constituted under

Chapter VI of the Convention referred to in Article 44(c) as amended, and by

the Supervisory Body constituted under Chapter II of the Convention referred to

in Article 44(d) as amended, as such functions may respectively require.

2. The Council shall fix the date on which the new Board referred to in Article 9

shall enter upon its duties. As from that date that Board shall, with respect to the

States Parties to the treaties enumerated in Article 44 which are not Parties to

this Convention, undertake the functions of the Permanent Central Board and of

the Supervisory Body referred to in paragraph 1.

Article 46

Schedule 4 Amendments relating to Schedules

140

Narcotic Drugs Amendment Bill 2016

No. , 2016

Denunciation

1. After the expiry of two years from the date of the coming into force of this

Convention (Article 41, paragraph 1) any Party may, on its own behalf or on

behalf of a territory for which it has international responsibility, and which has

withdrawn its consent given in accordance with Article 42, denounce this

Convention by an instrument in writing deposited with the Secretary-General.

2. The denunciation, if received by the Secretary-General on or before the first

day of July in any year, shall take effect on the first day of January in the

succeeding year, and if received after the first day of July, shall take effect as if

it had been received on or before the first day of July in the succeeding year.

3. This Convention shall be terminated if, as a result of denunciations made in

accordance with paragraph 1, the conditions for its coming into force as laid

down in Article 41, paragraph 1, cease to exist.

Article 47

Amendments

1. Any Party may propose an amendment to this Convention. The text of any

such amendment and the reasons therefor shall be communicated to the

Secretary-General who shall communicate them to the Parties and to the

Council. The Council may decide either:

(a) That a conference shall be called in accordance with Article 62, paragraph 4,

of the Charter of the United Nations to consider the proposed amendment; or

(b) That the Parties shall be asked whether they accept the proposed amendment

and also asked to submit to the Council any comments on the proposal.

2. If a proposed amendment circulated under paragraph 1(b) of this Article has

not been rejected by any Party within eighteen months after it has been

circulated, it shall thereupon enter into force. If however a proposed amendment

is rejected by any Party, the Council may decide, in the light of comments

received from Parties, whether a conference shall be called to consider such

amendment.

Article 48

Amendments relating to Schedules Schedule 4

No. , 2016

Narcotic Drugs Amendment Bill 2016

141

Disputes

1. If there should arise between two or more Parties a dispute relating to the

interpretation or application of this Convention, the said Parties shall consult

together with a view to the settlement of the dispute by negotiation,

investigation, mediation, conciliation, arbitration, recourse to regional bodies,

judicial process or other peaceful means of their own choice.

2. Any such dispute which cannot be settled in the manner prescribed shall be

referred to the International Court of Justice for decision.

Article 49

Transitional reservations

1. A Party may at the time of signature, ratification or accession reserve the

right to permit temporarily in any one of its territories:

(a) The quasi-medical use of opium;

(b) Opium smoking;

(d) The use of cannabis, cannabis resin, extracts and tinctures of cannabis for

non-medical purposes; and

(e) The production and manufacture of and trade in the drugs referred to under

(a) to (d) for the purposes mentioned therein.

2. The reservations under paragraph 1 shall be subject to the following

restrictions:

(a) The activities mentioned in paragraph 1 may be authorized only to the extent

that they were traditional in the territories in respect of which the reservation is

made, and were there permitted on 1 January 1961.

(b) No export of the drugs referred to in paragraph 1 for the purposes mentioned

therein may be permitted to a non-party or to a territory to which this

Convention does not apply under Article 42.

Schedule 4 Amendments relating to Schedules

142

Narcotic Drugs Amendment Bill 2016

No. , 2016

the competent authorities to this effect on 1 January 1964.

(d) The quasi-medical use of opium must be abolished within fifteen years from

the coming into force of this Convention as provided in paragraph 1 of Article

41.

(e) Coca leaf chewing must be abolished within twenty-five years from the

coming into force of this Convention as provided in paragraph 1 of Article 41.

(f) The use of cannabis for other than medical and scientific purposes must be

discontinued as soon as possible but in any case within twenty-five years from

the coming into force of this Convention as provided in paragraph 1 of Article

41.

(g) The production and manufacture of and trade in the drugs referred to in

paragraph 1 for any of the uses mentioned therein must be reduced and finally

abolished simultaneously with the reduction and abolition of such uses.

3. A Party making a reservation under paragraph 1 shall:

(a) Include in the annual report to be furnished to the Secretary-General, in

accordance with Article 18, paragraph 1(a), an account of the progress made in

the preceding year towards the abolition of the use, production, manufacture or

trade referred to under paragraph 1; and

(b) Furnish to the Board separate estimates (Article 19) and statistical returns

(Article 20) in respect of the reserved activities in the manner and form

prescribed by the Board.

4. (a) If a Party which makes a reservation under paragraph 1 fails to furnish:

(i) The report referred to in paragraph 3(a) within six months after the end of the

year to which the information relates;

(ii) The estimates referred to in paragraph 3(b) within three months after the

date fixed for that purpose by the Board in accordance with Article 12,

paragraph 1;

Amendments relating to Schedules Schedule 4

No. , 2016

Narcotic Drugs Amendment Bill 2016

143

(iii) The statistics referred to in paragraph 3(b) within three months after the

date on which they are due in accordance with Article 20, paragraph 2,

the Board or the Secretary-General, as the case may be, shall send to the Party

concerned a notification of the delay, and shall request such information within

a period of three months after the receipt of that notification.

(b) If the Party fails to comply within this period with the request of the Board

or the Secretary-General, the reservation in question made under paragraph 1

shall cease to be effective.

5. A State which has made reservations may at any time by notification in

writing withdraw all or part of its reservations.

Article 50

Other reservations

1. No reservations other than those made in accordance with Article 49 or with

the following paragraphs shall be permitted.

2. Any State may at the time of signature, ratification or accession make

reservations in respect of the following provisions of this Convention: Article

12, paragraphs 2 and 3; Article 13, paragraph 2; Article 14, paragraphs 1 and 2;

Article 31, paragraph 1(b), and Article 48.

3. A State which desires to become a Party but wishes to be authorized to make

reservations other than those made in accordance with paragraph 2 of this

Article or with Article 49 may inform the Secretary-General of such intention.

Unless by the end of twelve months after the date of the Secretary-General's

communication of the reservation concerned, this reservation has been objected

to by one third of the States that have ratified or acceded to this Convention

before the end of that period, it shall be deemed to be permitted, it being

understood however that States which have objected to the reservation need not

assume towards the reserving State any legal obligation under this Convention

which is affected by the reservation.

4. A State which has made reservations may at any time by notification in

writing withdraw all or part of its reservations.

Schedule 4 Amendments relating to Schedules

144

Narcotic Drugs Amendment Bill 2016

No. , 2016

Article 51

Notifications

The Secretary-General shall notify to all the States referred to in paragraph 1 of

Article 40:

(a) Signatures, ratifications and accessions in accordance with article 40;

(b) The date upon which this Convention enters into force in accordance with

Article 41;

(d) Declarations and notifications under Articles 42, 43, 47, 49 and 50.

Amendments relating to Schedules Schedule 4

No. , 2016

Narcotic Drugs Amendment Bill 2016

145

SCHEDULES

LIST OF DRUGS INCLUDED IN SCHEDULE I

ACETYLMETHADOL (3-acetoxy-6-dimethylamino-4,4-diphenylheptane)

ALLYLPRODINE (3-allyl-1-methyl-4-phenyl-4-propionoxypiperidine)

ALPHACETYLMETHADOL

(alpha-3-acetoxy-6-dimethylamino-4,4-diphenylheptane)

ALPHAMEPRODINE

(alpha-3-ethyl-1-methyl-4-phenyl-4-propionoxypiperidine)

ALPHAMETHADOL (alpha-6-dimethylamino-4,4-diphenyl-3-heptanol)

ALPHAPRODINE (alpha-1,3-dimethyl-4-phenyl-4-propionoxypiperidine)

ANILERIDINE (1-para-aminophenethyl-4-phenylpiperidine-4-carboxylic acid

ethyl ester)

BENZETHIDINE (1-(2-benzyloxyethyl)-4-phenylpiperidine-4-carboxylic acid

ethyl ester)

BENZYLMORPHINE (3-benzylmorphine)

BETACETYLMETHADOL

(beta-3-acetoxy-6-dimethylamino-4,4-diphenylheptane)

BETAMEPRODINE

(beta-3-ethhyl-1-methyl-4-phenyl-4-propionoxypiperidine)

BETAMETHADOL (beta-6-dimethylamino-4,4-diphenyl-3-heptanol)

BETAPRODINE (beta-1,3-dimethyl-4-phenyl-4-propionoxypiperidine)

CANNABIS and CANNABIS RESIN and EXTRACTS and TINCTURES of

CANNABIS

Schedule 4 Amendments relating to Schedules

146

Narcotic Drugs Amendment Bill 2016

No. , 2016

CLONITAZENE

(2-para-chlorbenzyl-1-diethylaminoethyl-5-nitrobenzimidazole)

COCA LEAF

COCAINE (methyl ester of benzoylecgonine)

CONCENTRATE OF POPPY STRAW (the material arising when poppy straw

has entered into a process for the concentration of its alkaloids, when such

material is made available in trade)

DESOMORPHINE (dihydrodeoxymorphine)

DEXTROMORAMIDE ((+)-4-[2-methyl-4-oxo-3,3-diphenyl-4-(1-pyrrolidinyl)

butyl] morpholine)

DIAMPROMIDE (N-[2-methylphenethylamino) propyl] propionanilide)

DIETHYLTHIAMBUTENE (3-diethylamino-1,1-di-(2'-thienyl)-1-butene)

DIHYDROMORPHINE

DIMENOXADOL (2-dimethylaminoethyl-1-ethoxy-1,1-diphenylacetate)

DIMEPHEPTANOL (6-dimethylamino-4,4-diphenyl-3-heptanol)

DIMETHYLTHIAMBUTENE (3-dimethylamino-1,1-di-(2'-thienyl)-1-butene)

DIOXAPHETYL BUTYRATE (ethyl 4-morpholino-2,2-diphenylbutyrate)

DIPHENOXYLATE

(1-(3-cyano-3,3-diphenylpropyl)-4-phenylpiperidine-4-carboxylic acid ethyl

ester)

DIPIPANONE (4,4-diphenyl-6-piperidine-3-heptanone)

ECGONINE, its esters and derivatives which are convertible to ecgonine and

cocaine

Amendments relating to Schedules Schedule 4

No. , 2016

Narcotic Drugs Amendment Bill 2016

147

ETHYLMETHYLTHIAMBUTENE

(3-ethylmethylamino-1,1-di-(2'-thienyl)-1-butene)

ETONITAZENE

(1-diethylaminoethyl-2-para-ethoxybenzyl-5-nitrobenzimidazole)

ETOXERIDINE (1-[2-(2-hydroxyethoxy)

ethyl]-4-phenylpiperidine-4-carboxylic acid ethyl ester)

FURETHIDINE

(1-(2-tetrahydrofurfuryloxyethyl)-4-phenylpiperidine-4-carboxylic acid ethyl

ester)

HEROIN (diacetylmorphine)

HYDROCODONE (dihydrocodeinone)

HYDROMORPHINOL (14-hydroxydihydromorphine)

HYDROMORPHONE (dihydromorphinone)

HYDROXYPETHIDINE

(4-meta-hydroxyphenyl-1-methylpiperidine-4-carboxylic acid ethyl ester)

ISOMETHADONE (6-dimethylamino-5-methyl-4,4-diphenyl-3-hexanone)

KETOBEMIDONE (4-meta-hydroxyphenyl-1-methyl-4-propionylpiperidine)

LEVOMETHORPHAN

((-)-3-methoxy-N-methylmorphinan)

LEVOMORAMIDE ((-)-4-[2-methyl-4-oxo-3,3-diphenyl-4-(1-pyrrolidinyl)

butyl] morpholine)

LEVOPHENACYLMORPHAN ((-)-3-hydroxy-N-phenacylmorphinan)

LEVORPHANOL

((-)-3-hydroxy-N-methylmorphinan)

METAZOCINE (2'-hydroxy-2,5,9-trimethyl-6,7-benzomorphan)

METHADONE (6-dimethylamino-4,4-diphenyl-3-heptanone)

Schedule 4 Amendments relating to Schedules

148

Narcotic Drugs Amendment Bill 2016

No. , 2016

METHYLDESORPHINE (6-methyl-delta 6-deoxymorphine)

METHYLDIHYDROMORPHINE (6-methyldihydromorphine)

1-Methyl-4-phenylpiperidine-4-carboxylic acid

METOPON (5-methyldihydromorphinone)

MORPHERIDINE (1-(2-morpholinoethyl)-4-phenylpiperidine-4-carboxylic

acid ethyl ester)

MORPHINE

MORPHINE METHOBROMIDE and other pentavalent nitrogen morphine

derivatives

MORPHINE-N-OXIDE

MYROPHINE (myristylbenzylmorphine)

NICOMORPHINE (3,6-dinicotinylmorphine)

NORLEVORPHANOL ((-)-3-hydroxymorphinan)

NORMETHADONE (6-dimethylamino-4,4-diphenyl-3-hexanone)

NORMORPHINE (demethylmorphine)

OPIUM

OXYCODONE (14-hydroxydihydrocodeinone)

OXYMORPHONE (14-hydroxydihydromorphinone)

PETHIDINE (1-methyl-4-phenylpiperidine-4-carboxylic acid ethyl ester)

PHENADOXONE (6-morpholino-4,4-diphenyl-3-heptanone)

PHENAMPROMIDE (N-(1-methyl-2-piperidinoethyl) propionanilide)

Amendments relating to Schedules Schedule 4

No. , 2016

Narcotic Drugs Amendment Bill 2016

149

PHENAZOCINE (2'-hydroxy-5,9-dimethyl-2-phenethyl-6,7-benzomorphan)

PHENOMORPHAN (3-hydroxy-N-phenethylmorphinan)

PHENOPERIDINE

(1-(3-hydroxy-3-phenylpropyl)-4-phenylpiperidine-4-carboxylic acid ethyl

ester)

PIMINODINE (4-phenyl-1-(3-phenylaminopropyl) piperidine-4-carboxylic acid

ethyl ester)

PROHEPTAZINE (1,3-dimethyl-4-phenyl-4-propionoxyazacycloheptane)

PROPERIDINE (1-methyl-4-phenylpiperidine-4-carboxylic acid isopropyl

ester)

RACEMETHORPHAN ((+/-)-3-methoxy-N-methylmorphinan)

RACEMORAMIDE ((+/-)-4-[2-methyl-4-oxo-3,3-diphenyl-4-(1-pyrroldinyl)

butyl] morpholine)

RACEMORPHAN ((+/-)-3-hydroxy-N-methylmorphinan)

THEBACON (acetyldihydrocodeinone)

THEBAINE

TRIMEPERIDINE (1,2,5-trimethyl-4-phenyl-4-propionoxypiperidine); and

The isomers, unless specifically excepted, of the drugs in this Schedule

whenever the existence of such isomers is possible within the specific chemical

designation;

The esters and ethers, unless appearing in another Schedule, of the drugs in this

Schedule whenever the existence of such esters or ethers is possible;

The salts of the drugs listed in this Schedule, including the salts of esters, ethers

and isomers as provided above whenever the existence of such salts is possible.

Schedule 4 Amendments relating to Schedules

150

Narcotic Drugs Amendment Bill 2016

No. , 2016

Dextromethorphan ((+)-3-methoxy-N-methylmorphinan) and dextrorphan

((+)-3-Hydroxy-N-methylmorphinan) are specifically excluded from this

Schedule. [Footnote appeared in original text.]

LIST OF DRUGS INCLUDED IN SCHEDULE II

ACETYLDIHYDROCODEINE

CODEINE (3-methylmorphine)

DEXTROPROPOXYPHENE

((+)-4-dimethylamino-3-methyl-1,2-diphenyl-2-propionoxybutane)

DIHYDROCODEINE

ETHYLMORPHINE (3-ethylmorphine)

NORCODEINE (N-demethylcodeine)

PHOLCODINE (morpholinylethylmorphine); and

The isomers, unless specifically excepted, of the drugs in this Schedule

whenever the existence of such isomers is possible within the specific chemical

designation;

The salts of the drugs listed in this Schedule, including the salts of the isomers

as provided above whenever the existence of such salts is possible.

LIST OF PREPARATIONS INCLUDED IN SCHEDULE III

1. Preparations of:

Acetyldihydrocodeine,

Codeine,

Amendments relating to Schedules Schedule 4

No. , 2016

Narcotic Drugs Amendment Bill 2016

151

Dextropropoxyphene,

Dihydrocodeine,

Ethylmorphine,

Norcodeine, and

Pholcodine

when

(a) Compounded with one or more other ingredients in such a way that the

preparation has no, or a negligible, risk of abuse, and in such a way that the

drug cannot be recovered by readily applicable means or in a yield which would

constitute a risk to public health; and

(b) Containing not more than 100 milligrammes of the drug per dosage unit and

with a concentration of not more than 2.5 per cent in undivided preparations.

2. Preparations of cocaine containing not more than 0.1 per cent of cocaine

calculated as cocaine base and preparations of opium or morphine containing

not more than 0.2 per cent of morphine calculated as anhydrous morphine base

and compounded with one or more other ingredients in such a way that the

preparation has no, or a negligible, risk of abuse, and in such a way that the

drug cannot be recovered by readily applicable means or in a yield which would

constitute a risk to public health.

3. Solid dose preparations of diphenoxylate containing not more than 2.5

milligrammes of diphenoxylate calculated as base and not less than 25

microgrammes of atropine sulphate per dosage unit.

4. Pulvis ipecacuanhae et opii compositus

10 per cent opium in powder

10 per cent ipecacuanha root, in powder well mixed with

80 per cent of any other powdered ingredient containing no drug.

Schedule 4 Amendments relating to Schedules

152

Narcotic Drugs Amendment Bill 2016

No. , 2016

5. Preparations conforming to any of the formulae listed in this Schedule and

mixtures of such preparations with any material which contains no drug.

LIST OF DRUGS INCLUDED IN SCHEDULE IV

CANNABIS and CANNABIS RESIN

DESOMORPHINE (dihydrodeoxymorphine)

HEROIN (diacetylmorphine)

KETOBEMIDONE (4-meta-hydroxyphenyl-1-methyl-4-propionylpiperidine);

and

The salts of the drugs listed in this Schedule whenever the formation of such

salts is possible.

Consequential amendments Schedule 5

No. , 2016

Narcotic Drugs Amendment Bill 2016

153

Schedule 5--Consequential amendments

Therapeutic Goods Act 1989

1 After subsection 19(7)

Insert:

(8) The regulations may prescribe the circumstances in which an

approval under paragraph (1)(b) must not be given, including but

not limited to circumstances relating to:

(a) a particular class of therapeutic goods;

(b) a particular class of persons to whom therapeutic goods are to

be supplied.

Commonwealth of Australia Bills

NARCOTIC DRUGS AMENDMENT BILL 2016