Narcotic Drugs Regulation 2016 [F2016L01613] -Response required [2016] AUSStaCSDLM 345 (23 November 2016)

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Instrument	Narcotic Drugs Regulation 2016 [F2016L01613]
Purpose	Sets up the regulatory framework for the licensing of the cultivation of cannabis and the production of cannabis and cannabis resins for medicinal and scientific purposes, and the manufacture of drugs under the Narcotic Drugs Act 1967
Last day to disallow	13 February 2017
Authorising legislation	Narcotic Drugs Act 1967
Department	Health
Scrutiny principle	Standing Order 23(3)(b)

Unclear meaning of 'connections and associations'

The regulation implements part of the regulatory framework for licensing the cultivation, production and manufacture of medicinal cannabis under the

Narcotic Drugs Act 1967 (the Act), including specifying information and documentation that must be provided by an applicant when applying for a licence under the Act.

The Act sets out the matters to be taken into account by the Secretary of the Department of Health in determining whether or not an applicant for a licence is a 'fit and proper person'. In respect of natural persons, the Act provides that the Secretary may consider 'the connections and associations of the person (including but not limited to the person's relatives)'.^[1]

Section 5 of the regulation specifies what information must be included in an application for a medicinal cannabis licence or permit. For natural persons, paragraph 5(3)(d) requires an application to include the following information:

details of the connections and associations that the applicant has with other persons (including but not limited to the applicant’s relatives) that may affect the applicant’s reputation, character, honesty or professional or personal integrity.

The ES to the regulation states that this information is to include 'details of the connections and associations the applicant has with other persons (including but may not be limited to the applicant’s relatives)'.

However, neither the regulation nor the ES expressly defines the terms 'connections' or 'associations'. In particular, the requirements appear unclear as to what type of 'connections and associations' must be disclosed, and whether failure to provide sufficiently detailed information may result in an application being denied.^[2] The committee is therefore concerned that persons who apply for a medicinal cannabis licence or permit may not be able to determine with sufficient precision what connections and associations must be disclosed for the purposes of obtaining a licence or permit.

The committee requests the advice of the minister in relation to this matter.

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[1] See Narcotic Drugs Act 1967 section 8A(d).

[2] The committee also notes that the Department of Health, Office of Drug Control has issued Guideline: Fit and Proper Persons and Suitable Staff (version 1.0, October 2016), https://www. odc.gov.au/sites/default/files/guideline-fit-and-proper-persons-and-suitable-staff.pdf (accessed 23 November 2016). It advises that information about an applicant's 'connections and associations' is used to assess non-business relationships and to identify persons who may have an effect on the applicant and who may inappropriately influence the operations of a cannabis licence (p. 7, 11).