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(Tobacco) Amendment Bill 1996
Explanatory note
This explanatory note relates to this Bill as introduced into Parliament.
(a)
to amend the Business Franchise Licences (Tobacco) Act
(i)
to declare the regulatory objects of that Act and indicate its
place in the scheme of regulation and control of tobacco
products, and
(ii)
to add to the grounds on which the Chief Commissioner for
Business Franchise Licences (Tobacco) may refuse to authorise
the issue of a licence under that Act or may suspend or cancel a
licence, and
(iii) to implement other measures for the regulation and control of
the distribution, sale and purchase of tobacco, and
(b)
to amend the Revenue Laws (Reciprocal Powers) Act 1987 to empower
the Chief Commissioner to engage in reciprocal exchange of
information with the Australian Customs Service.
Clause 2 provides for the commencement of the proposed Act on a day or
days to be appointed by proclamation.
Clause 3 is a formal provision giving effect to the amendments to the
Business Franchise Licences (Tobacco) Act 1987 set out in Schedule
Clause 4 is a formal provision giving effect to an amendment to the
Revenue Laws (Reciprocal Powers) Act 1987 set out in Schedule 2.
Schedule 1
Amendment of Business Franchise Licences
(Tobacco) Act 1987
"Tobacco regulation legislation" and other terms
Schedule 1 [ 1 ] inserts a definition of tobacco regulation
into
section 3 of the Act. The definition sets out current legislative measures,
State and Federal, by which the use, supply, availability, storage, control and
promotion of tobacco products are regulated. The definition also has
significance in relation to other amendments proposed by the Bill. Schedule 1
[l] also inserts definitions of licence period and of officer (in relation to a
body corporate).
Tobacco sales agents
Schedule 1 [2] amends section 3 of the Act so that in future a person who
claims to be selling tobacco, or carrying on a business for that purpose, as
agent for another will be liable under the Act to the same extent as his or her
principal unless the agency is duly evidenced in writing.
Regulatory objects of the Business Franchise Licences
(Tobacco) Act 1987
Schedule 1 [3] inserts a new section 3A into the Act, stating its regulatory
objects and explaining the place of the Act in the legislative scheme of
tobacco control.
Explanatory note page 2
Transactions with unlicensed persons
Schedule 1 [7] inserts new sections 30A and 30B into the Act, which
prohibit the sale to, or purchase from, an unlicensed person of more than the
prescribed amount of tobacco (currently 3,500 cigarettes or the approximate
equivalent in other forms).
Licensing
Schedule 1 [9] repeals and re-enacts section 36 of the Act, which deals with
the grant or refusal of licences. The effect is to add to the available grounds
on which a licence application may be refused at the discretion of the Chief
Commissioner. The additional grounds include:
(a)
that the applicant has been convicted of an offence under the tobacco
regulation legislation, or any similar
in another State or
Territory, and
(b)
that the applicant is a bankrupt individual or a body corporate in
liquidation.
Schedule 1 [10] amends section 36A of the Act so as to provide that it is a
condition of every licence that the licensee must comply with the tobacco
regulation legislation.
Schedule 1 [16] amends section 50 of the Act so as to enlarge the available
grounds on which a licence under the Act may be cancelled. The effect of the
amendments is to make the grounds of cancellation parallel to the grounds on
which a licence application may be refused under the re-enacted section 36.
Schedule 1 [11][13] and [21] make consequential amendments.
Licence fees
Schedule 1 [14] amends section 41 of the Act so as to raise the
fee"
component of a licence fee from $10 to $100.
Cessation of business
Schedule 1 [15] repeals and replaces section 49 of the Act, which
requires a licensee who ceases to carry on the business authorised by the
licence to notify the Director of Business Licences within 30 days. The new
section will effectively cancel a licence at the end of a period of 58 days after
trading has ceased.
Explanatory note page 3
Sale of stock held by licensee whose licence is cancelled
Schedule 1 [17] amends section 50 of the Act so as to provide that a licensee
whose licence has been cancelled or suspended may only sell tobacco to a
licensed wholesaler.
Outgoing licensees
The Bill proposes amendments directed at reducing the availability of
discount-price tobacco on the market.
Schedule 1 [18] inserts a new section 50A into the Act, which requires an
applicant for a tobacco wholesaler's licence or for a further such licence to
declare, at the time an application for it is made, whether it is the applicant's
intention to carry on a business of buying or selling tobacco during either or
both of the two licence periods following the expiry of the licence then being
applied for.
A trader who declares that trading will cease (so that a further licence will not
be sought) is prohibited from selling tobacco at a price below a determined
amount (Schedule 1 [8], propsed section 33A).
Enforcement of the tobacco regulation legislation
Schedule 1 [19] amends section 55 of the Act so as to provide that the Chief
Commissioner may obtain reports from other government agencies such as
the Department of Health, or from interstate government agencies, so as to
ascertain, for licensing purposes, whether a licensee or applicant for a licence
has committed any offence under the tobacco regulation legislation or similar
interstate legislation.
Schedule 1 [34] amends section 69 of the Act so as to allow the Chief
Commissioner to disclose to State or Federal authorities, without
contravention of the Act, records or information held by the Chief
Commissioner.
Other amendments
Schedule 1 [4][6], [35] and [36] update references to certain office holders
and to a repealed Act. (The Administrative Changes (State Revenue) Order
1994 provides for the construction of references to the Secretary and Deputy
Secretary of the former Department of Finance.)
Explanatory note page 4
Schedule 1 [20] amends section 57 of the Act so as to make it clear that the
powers of the Chief Commissioner to investigate the activities of any person
in relation to a business of tobacco sales, transport or distribution include
power to investigate interstate activities in connection with such a business.
Schedule 1 [22] amends section 60 of the Act so as to allow the Chief
Commissioner to dispose of tobacco that has been forfeited under the Act.
power of disposal is currently vested in the Minister.
Schedule 1 [24][31] amend section 63 of the Act so as to require records
relating to transportation of tobacco to be carried in a vehicle, of whatever
kind (ie road vehicle, aircraft or vessel), in which tobacco is transported. At
present the requirement relates only to road vehicles. Schedule l [23] makes
a consequential amendment.
Schedule 1 [32] repeals and replaces section 64 of the Act as a consequence
of the amendments made to section 63.
Schedule 1 [33] inserts new sections 68A and 68B into the Act. The new
section 68A requires the Chief Commissioner to maintain a register of
licensees. Members of the public will have access to the information recorded
in the register. The new section 68B requires a licensee to display a copy of
the licence at premises where tobacco is sold to the public.
Schedule 1 [37] and [38] enact certain savings, and provide for any further
savings or transitional provisions that may be necessary, in relation to the
amendments proposed by the Bill.
Schedule 2
Amendment of Revenue Laws (Reciprocal
Powers) Act 1987
Schedule 2 amends section 12 of the Revenue Laws (Reciprocal Powers) Act
1987
empower the Commissioner to exchange information with the
Australian Customs Service.
Explanatory note page 5