Explanatory note
This explanatory note relates to this Bill as introduced into Parliament.

Overview of Bill

The object of this Bill is to enable low-THC hemp to be cultivated and supplied for
commercial production and other legitimate purposes in accordance with a licensing
scheme to be administered by the Director-General of the Department of Primary
Industries. The proposed Act defines low-THC hemp as cannabis that has a
concentration of tetrahydrocannabinol of no more than 1%.

The Bill also provides that the possession, cultivation or supply of low-THC hemp in
accordance with a licence under the proposed Act will not constitute an offence under
the Drug Misuse and Trafficking Act 1985.

Outline of provisions

Part 1 Preliminary
Part 1 (clauses 1–4) contains provisions relating to the name and commencement of
the proposed Act and its interpretation.

Part 2 Licensing scheme
Part 2 (clauses 5–16) contains provisions for the licensing scheme for cultivating or
supplying low-THC hemp. The licensing scheme will operate essentially as an
exemption from the Drug Misuse and Trafficking Act 1985 as that Act would
otherwise prohibit the cultivation or supply of low-THC hemp. The proposed Act
makes it an offence if the licensee cultivates or supplies low-THC hemp otherwise
than for the purpose for which the licence is granted or if the licensee contravenes the
conditions of the licence.

An application for a licence must be accompanied by a fee approved by the
Director-General and the information and particulars required by the regulations.

The Director-General will have the power to investigate an application and will be
required to conduct a criminal record check of the applicant and the applicant’s close
associates. The Director-General must be satisfied that the applicant and each close
associate is a suitable person to be concerned in (or associated with) the cultivation
or supply of low-THC hemp. A licence must not be granted if the applicant or a close
associate has been found guilty of a drug related offence. The Director-General may
also refuse to grant a licence on certain other grounds.

The Director-General’s decision in relation to a licence application is final and not
subject to review. If a licence is issued, it continues in force for 5 years (although a
shorter period may be specified in the licence). Conditions may be imposed by the
Director-General on a licence (in addition to any conditions imposed by the proposed
Act or by the regulations). Licences may, on application, be renewed or transferred
and these applications will be treated as if they were initial licence applications. The
Part also contains provisions relating to the suspension and revocation of licences.

Part 3 Investigation and enforcement powers
Part 3 (clauses 17–34) contains provisions relating to the powers of inspectors (who
are appointed by the Director-General) and police officers to carry out investigations,
and to enter and search premises, for such purposes as determining whether there has
been a contravention of the proposed Act or whether a licensee is cultivating or
supplying any cannabis that is not low-THC hemp. The Part contains standard
provisions relating to the identification of inspectors and the issuing of search
warrants. Inspectors and police officers will have the power to require the giving of
information or records, and may give directions, regardless of whether they are
exercising their powers of entry under the proposed Act.

Part 4 Miscellaneous
Part 4 (clauses 35–50) contains miscellaneous provisions that are mainly of an
administrative nature (including the general regulation-making power and providing
for a review of the Act in 5 years). Provision is also included for the forfeiture to the
Crown of low-THC hemp that is connected with an offence under the proposed Act.

The Director-General will be able to order the destruction of any forfeited low-THC
hemp, but may also authorise any person to continue to cultivate or supply any
forfeited hemp.

The Director-General will be able to enter into arrangements with other agencies for
the supply of information to assist in the administration of the proposed Act.

Provision is also made for certain decisions of the Director-General to be reviewable
by the ADT. The Director-General will also be able to delegate his or her functions
under the proposed Act.

Schedule 1 contains savings and transitional provisions consequent on the enactment
of the proposed Act. In particular, existing authorities granted by the
Director-General of the Department of Health under the Drug Misuse and
Trafficking Act 1985 in relation to the cultivation or supply of industrial hemp will
be carried over as licences under the proposed Act.

Schedule 2 amends the Acts specified in the Schedule. In particular, the Drug Misuse
and Trafficking Act 1985 is amended so that it will not be an offence under that Act
to possess, cultivate, manufacture, produce or supply low-THC hemp under the
authority conferred by the proposed Act.

Note: If this Bill is not modified, these Explanatory Notes would reflect the Bill as passed in the House. If the Bill has been amended by Committee, these Explanatory Notes may not necessarily reflect the Bill as passed.

 

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