Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698751371387.pdf (New Zealand)
Psychoactive Substances Bill Government Bill As reported from the Health Committee Commentary Recommendation The Health has examined the Psychoactive Substances Bill and rec- ommends that it be passed with the amendments shown.

Introduction The bill seeks to regulate otherwise unregulated psychoactive sub- stances such as “party pills” and other “legal highs” in New Zealand.
The bill aims to restrict the importation, manufacture, and supply of psychoactive substances unless authorised by a regulator, while allowing the sale of products that meet safety and manufacturing requirements.

Currently, any psychoactive substance can be sold legally if it is not listed in the Misuse of Drugs Act 1975.

This bill aims to place the onus on the industry to demonstrate that a psychoac- tive substance is not harmful or poses only a low risk to human health before approval for sale is given.
Approval could be given only to finished, packaged psychoactive products, allowing the regulator to assess all the ingredients and the risk that they might present in the particular combination.

100—2 2 Psychoactive Substances Bill Commentary The bill proposes the establishment of a regulatory authority within the Ministry of Health, and an independent Expert Technical Com- mittee to advise the regulator on products submitted for approval.

The bill is in three parts.


Part 1 contains the interpretation section and provisions to establish the Regulatory Authority and Expert Advisory Committee.

Part 2 would establish a licencing regime and process for approvals; and Part 3 would establish controls on approved products and provide for enforcement matters, and confer regulation making powers.

Our commentary covers the main amendments we recommend to the bill.
Purpose statement We consider that the primary purpose of this bill is to “regulate the availability of psychoactive substances in New Zealand and protect the health and minimise the harm to individuals who use psychoac- tive substances”.

We recommend amending clause 3 to make this clear.

Principles We recommend inserting new subclause 4(ba) to include an affirma- tive statement to the effect that any psychoactive product meeting the threshold for approval will be approved.
We believe that this would assure the industry that Parliament is serious about making the regu- latory regime workable.

Interpretations and definitions We recognise the argument that the term “psychoactive substances” in clause 9(1) is very broad, which could have the effect of bringing other substances such as garden plants and low-risk herbal products into its ambit.

After careful consideration, however, we think that the definition should remain broad to avoid leaving loopholes.
Current exclusions for food and herbal products are sufficient for the purpose; and for products inadvertently caught by the legislation there is the declaring power in clause 81 to deem them not to be psychoactive substances for the purposes of the bill.
Commentary Psychoactive Substances Bill 3 While we saw some merit in a similar argument that the degree of “psychoactive effect” covered by the bill should be defined, we con- sider that specifying a threshold degree of effect would be overly complex and open to challenge.

We also agree that the interpretation of the term “low risk” was best determined through assessment by the expert committee, taking into account the nature of each product and its mode of administration.
Expert Advisory Committee We recommend inserting new subclause 11(2A) to specify the mat- ters that the Expert Advisory Committee must have regard to in ad- vising the Authority about a psychoactive product.

We also recommend inserting new subclause 11(9) to make it clear that the advisory committee must act independently in performing its functions, and in accordance with the principles of natural justice.
Granting of licence Licencing would provide an additional level of control over approved products, and we consider that additional licences for various kinds of uses should be a requirement in clause 12.

We recommend insert- ing paragraphs 12(1)(c) and 12(1)(f) to allow the regulator to grant licences to research psychoactive substances, and to grant a licence to sell approved products wholesale and retail.
We recommend amending subclause 15(1)(c) to ensure that appli- cants meet certain conditions, including being fit and proper persons.

We also recommend inserting new subclause 15(1)(d) to allow per- sons to apply for a licence on behalf of a body corporate, provided that the body corporate is of good repute.
Exporting psychoactive substances For consistency with the requirement for advance notice to the regu- lator of imports of psychoactive substances, we recommend inserting new subclause 16(5) specifying that exports must be notified in ad- vance.

This would also allow Customs to check the requirements of the destination jurisdiction and inform them of shipments, in keeping with international cooperation in the area of psychoactive substances.
4 Psychoactive Substances Bill Commentary Code of manufacturing practice We were concerned that the code of manufacturing practice for psy- choactive substances in clause 27 would come into force no later than one year after the commencement of the Act, and we recommend that this period be reduced to six months.
Register of products While we agree that the bill must ensure a commitment to protect confidential information provided under clause 34, we believe that the public should have access to information on both approved and unapproved products, and recommend that clause 41 be amended accordingly.
Appeals Although we do not consider it desirable for third parties to be able to appeal decisions of the regulator, we recommend an amendment to clause 43 to include a general right of appeal for parties to a decision to revoke a licence or revoke approval for a product.

Control of approved products We are aware of strongly held views that the age for purchase of approved products should be 20 or 21, rather than 18 as provided for.
Discussion centred on expert advice concerning brain development in young people; it was argued that this was a new bill and it might be appropriate to start this new regime with a higher age threshold level to help minimise harm to young people.

We consider, however, that a higher age limit for approved psychoactive products that pose a low risk to users might suggest to young people that alcohol and tobacco, having lesser age restrictions, are safer alternatives.
We therefore recommend that the purchase age in clause 46 remain at 18, aligning it with the Sale and Supply of Alcohol Act 2012.

If the age limit in that Act is amended, we recommend that the purchase age for approved products should be automatically amended.

We also recommend that clause 46 be amended to include an offence of possession of a psychoactive substance, including an approved product, by a person under the age of 18.
Commentary Psychoactive Substances Bill 5 Supplying approved products to persons under 18 We recommend amending the reference in subclause 48(1) to the sup- ply of approved products to persons under 18.

We believe that the clause should specify supply in a public place, to align the provision with the Smoke-free Environments Act 1990, and to obviate the dif- ficulties of enforcement regarding supply in a garage or home, for example.
We also recommend that the fine in subclause 48(2) be raised from $500 to $2,000, to align it with both the Sale and Supply of Alcohol Act 2012 and the Smoke-free Environments Act 1990.

Points of sale of approved products We are aware of concern that outlets for approved substances might include dairies which are frequented by young and underage people, and off-licences.
Under the bill as introduced, any restrictions on points of sale of approved products would be determined by regu- lation; we agree that this matter should be included in the primary legislation.

We therefore recommend amending clause 50 to specify restrictions on point of sale.

Sponsorship We recommend inserting clause 52A to include a prohibition on sponsoring activity involving the use of trademarks associated with, or the names of, approved psychoactive products.
Advertising We recognise the strongly held views against advertising of such products, and recommend amending clause 53 to include a clear re- striction of advertising of approved psychoactive products to point of sale, and that no advertising should be visible from outside a re- tail outlet.

While recognising that it would be difficult to enforce, we also recommend a prohibition on internet advertising except on sites maintained for the primary purpose of selling approved products.
After careful consideration of the community issues surrounding the advertising and naming of approved product retail establishments, we recommend inserting new clause 53A which sets out restrictions on retailers’ names.
6 Psychoactive Substances Bill Commentary Labelling and packaging We are concerned that some packaging might be designed to appeal to minors, and although we consider that to define “appeal” in this con- text would be difficult in practice, we recommend replacing clause 54 with new clause 54 which prohibits a design of this type.

We also recognise the argument for requiring approved psychoactive prod- ucts to be sold in plain packaging, but are not convinced that this is necessary.
Unlike cigarettes, these products will need to be of “mini- mal or low risk” to be approved and psychoactive products are made up of a range of chemical formulations.

We recommend, however, clarifying the provisions in clause 54 re- garding the wording required on the label of the approved product, and for any further requirements to be prescribed by regulations.
Local approved products policies Despite advertising restrictions to limit advertising to the inside of retail premises and reduce visibility of the products in communities, we are concerned that retail outlets might be situated near schools or in other places considered inappropriate by the local community.
We therefore recommend making provision for local community input on decisions as to the location of outlets, including a requirement to have regard to their density, by inserting clauses 61A, 61B, and 61C.

Offences relating to possession of unapproved products Most of us recognise wide support for the offence for personal pos- session of unapproved products by persons over the age of 18 as spe- cified in clause 63.
However, there was strong debate within the com- mittee whether this clause be deleted from the bill.

The arguments for deletion are: • The Temporary Class Drug Notice provision (Misuse of Drugs Amendment Act 2011) does not include this offence.

We were told that the existing powers of enforcement officers already address concern about unknown substances under the Misuse of Drugs Act 1975.
Commentary Psychoactive Substances Bill 7 • There was a view that infringement fines could incur consid- erable costs to the public if contested in court and a fine may be difficult for young people to pay.

Arguments to retain clause 63 are: • • This is a new innovative bill and being consistent with the “temporary Class Drug Notice provision” it is not relevant.
In their advice the Police strongly supported retaining the offence citing in particular the risk to young people from untested substances (both approved and unapproved) for those under 18 and no infringement for possession of unapproved psychoactive substances for those over 18.
Power to enter and search retail premises In order to ensure compliance with the bill and the conditions of the licence, we recommend the addition of clause 69A allowing an en- forcement officer or constable to enter retail premises from which approved psychoactive substances are sold.

Cost recovery To clarify the bill’s provision for cost recovery, we recommend re- placing clause 82 with a new subpart 4A.
This subpart sets out the duty to recover costs, the principles on which cost recovery is to be based, the methods of cost recovery and appropriate regulation-mak- ing powers, and the requirement to consult with industry before mak- ing such regulations.

Duty to notify adverse reactions We recommend amending clause 80(3) to require the name of the substance to be included in any report of adverse reactions to an ap- proved psychoactive product.
We discussed the responsibility of medical practitioners to report any adverse reactions to approved psychoactive substances to the rele- vant authority.

On balance, we were not persuaded of the necessity for reporting to be compulsory.

Voluntary reporting of reactions to medicines works well.

Rather than including such a requirement in the bill, we recommend that the Ministry of Health work with med- ical practitioners on a voluntary system of reporting.
8 Psychoactive Substances Bill Commentary Immunities We recommend that new clause 84A include provision for immunity from liability for members of the Expert Advisory Committee pro- viding they act in good faith, and an explicit statement that members are not public servants within the meaning of the State Sector Act 1988 by virtue of their appointment.
Transitional provision The transitional provision applies to psychoactive substances that were lawfully being sold during the lead-in period before com- these substances could continue mencement.

Upon enactment, to be sold providing an application for approval was made to the Authority within 30 days and accepted, and an application for a retail licence made within the same timeframe.
While acknowledging the argument for removing these substances from sale immediately, we consider this might have the unintended consequence of increasing black-market activity because of a lack of supply and a continuing demand.

We believe that controls applied by the bill such as minimal advertising, restricted outlets, and an age restriction are sufficiently robust to allay concern, but we recommend amending schedule 1 to reduce the lead-in period from 6 to 3 months.
Report of the Interim Psychoactive Substances Expert Advisory Committee We received a report that was written by the chair of the Interim Expert Advisory Committee.

We were advised that the report was agreed by consensus and that all members of the committee endorsed the report.
Possible increased demand on health services We acknowledge that with the banning of some substances currently available there could be increased demand on mental health and drug and alcohol services, which health providers will need to make pro- vision for.
Commentary Psychoactive Substances Bill 9 Advice on the scope of the Psychoactive Substances Bill Given that this area was controversial, we agreed that the advice dated 5 June 2013 should be recorded in the commentary: Background Standing Order 288(1) states that the committee may recommend only amendments that are relevant to the subject-matter of the bill, are consistent with the prin- ciples and objects of the bill, and otherwise conform to Standing Orders and practices of the House.
For an amendment to be within the scope of the bill, it must be relevant to the subject-matter and consistent with its principles and objects.

Purpose of the bill The purpose of the bill is to “Regulate the availability of Psychoactive Substances in New Zealand”.

Animal testing On 26 April 2013 the committee was given advice on whether possible amendments prohibiting testing psy- choactive substances on animals would be within the scope of the bill as referred by the House.
The advice of the Office of the Clerk was that possible amendments relating to the prohibition of animal test- ing of psychoactive substances would not be within the scope of the bill.

The purpose of the bill is to regulate the availability of Psychoactive Substances in New Zealand.

To this end the bill provides for the approval of the importing, manu- facture and sale of psychoactive substances.
The bill does not prescribe any design or testing stage, and the ethics of any testing regime is not relevant to the purpose of the bill.

As such, possible amendments pro- hibiting testing psychoactive substances on animals are not related to the subject matter of the bill as introduced.

10 Psychoactive Substances Bill Commentary The issue has since then been raised with the Clerk of the House outside of the Health Committee.
The Clerk of the House confirmed the initial advice that amendments prohibiting testing psychoactive sub- stances on animals were beyond the scope of the bill as the bill is about approval and licensing of the substances not their testing.

The Office can advise that an amendment to preclude the use of information derived from animal testing of psychoactive products in support of any application for approval may be in order.
An amendment setting out the types of information that may be used in the approval or licensing processes is not the same as providing for a testing regime or ruling out certain types of testing.

We considered whether or not to hear submissions regarding the use of animal testing in clinical trials of psychoactive products.

A vote was held.

Labour and Green and New Zealand First members voted in favour.

National members voted against.

The vote being tied, submissions were not heard.


Green Party minority view The Green Party broadly endorses the Health Committee’s commen- tary on the bill and the amendments that have been made.

We be- lieve this important bill has been substantially improved by the com- mittee’s work.
Nonetheless, we have a significant reservation about the issue of possession of psychoactive substances by young people, which is unaddressed in the committee’s commentary, and we have a very substantial concern about the harm that may be inflicted on animals.

Possession of psychoactive substances by young people The bill as reported back creates an offence for any person under the age of 18 to be in possession of a psychoactive substance, whether approved or unapproved.
The committee concluded, on balance, that the creation of an infringement offence for under-18s, analogous to that for alcohol, would enable young people at risk of harm to be con- Commentary Psychoactive Substances Bill 11 nected with agencies in a position to help reduce harm.

The Green Party accepts that conclusion, but remains concerned that the exis- tence of this offence might be used by some Police officers as a means of harassing and coercing some young people.
The committee heard that this is not the Police intention, and the Green Party wants this to be recorded in the commentary on the bill so that when the Act is reviewed pursuant to Clause 87 the performance of the Police in relation to this possession offence is particularly scrutinised.
Animal testing The introduction of a requirement that psychoactive substances are proven to be relatively safe before being sold in New Zealand in- evitably creates the requirement for a whole new area of product safety testing.
It is unsurprising that this has given rise to very signifi- cant concern from New Zealanders who oppose the cruel treatment of animals and who believe that testing of these products on animals in order to establish safety is unnecessary and, indeed, inferior to alter- native methods.
This view has widespread public support, as public opinion polls on the subject have demonstrated, and many individu- als and organisations received encouragement from the Minister and others to express their concerns in submissions to the select commit- tee.

However, on 8 May 2013 the Health Committee Chair ruled that all submissions received on the subject of animal testing were outside the scope of the bill, and these submissions were returned to those who made them without being considered.
By a majority the com- mittee decided to reject a Green Party motion to hear evidence from these submitters even if their submissions were out of scope.

It is the Green Party’s very strong view that both of these decisions were wrong.

The Clerk of the House had provided advice that amendments to the bill that sought to outlaw product testing on animals were out of scope.
However, nearly all of the submissions that were rejected raised issues that could have been addressed by an amendment to the bill to prohibit the use of information derived from animal testing in an application for a licence.

The Clerk has advised that such an amendment would clearly be in scope, and the Green Party believes that it was therefore manifestly wrong to refuse to hear public sub- missions on the matter.
12 Psychoactive Substances Bill Commentary Belatedly the committee did receive advice from the chair of the In- terim Psychoactive Substances Expert Advisory Committee, which had been asked by the Minister to comment on the animal testing issues, but which also did not have access to the submissions that had been rejected by the Health Committee chair.

That advice was that the interim committee does not believe substances can be established to be low risk without animal testing.
This effectively introduces a requirement that there be animal testing data for licence applications, and this new requirement has been introduced entirely without any views from the general public, animal welfare organisations or ex- perts (except those who happen to be on the interim committee).

The Green Party believes this to be profoundly unsatisfactory.
In our view, with the initial decision to reject these submissions having been shown to be in error, the correct course of action would have been to reopen submissions on this specific matter.

In the absence of a select committee hearing these submissions, the Green Party invited those individuals and organisations who wished to have their voice heard to do so in a separate hearing.
We found as follows: Non-animal tests are available and more accurate Evidence was heard that many countries do not use animal testing for pre-clinical trials for safety because the results from non-animal testing are more reliable.
The New Zealand Anti-Vivisection Society (NZAVS) said that in 2008 the United States Environmental Protec- tion Agency, the National Institute of Health, and the Food and Drug Administration started a process to replace all toxicology testing on animals with non-animal techniques to produce results that are more relevant to humans.

Submitters talked about other countries that use these non-animal testing programmes as a preference to animal testing.
Evidence was presented that the data from animal testing was actually less reliable in safety testing than non-animal testing.

It was argued that if the bill allows for the lower quality data from animal testing to be acceptable evidence of safety then human health would be put at risk.
NZAVS gave evidence about the Ministry of Health’s proposed test- ing regime and outlined in detail the non-animal testing options that Commentary Psychoactive Substances Bill 13 are available to provide an adequate, if not superior, guarantee of safety.

A safety testing regime would include four stages: • • • • It is this pre-clinical testing where animal testing would be used.
The initially proposed pre-clinical testing involves four proposed parts, each of which has well regarded non-animal testing options.
manufacturing and controls information preclinical toxicology studies human clinical studies post registration surveillance Type of testing Acute toxicity Repeat dose toxicity Non-animal option • • • • • • • Ames Test Neutral Red Uptake Assay In vitro micronucleus as- say as required by Health Canada 3D models with cultured human cells Computer models Various in vitro human cell line studies e.g.
liver, lungs, bone marrow (tests for effects on the immune system) Structure- Quantitative Activity Relationship (QSAR) computer mod- elling 14 Psychoactive Substances Bill Commentary Toxicokinetic investigations Genotoxicity • • • • • • • • • Cell line tests In vitro absorption tests e.g.
Caco-2 cells Computer modelling In vitro assays on hepato- cytes (liver cells) Physiologically Toxicokinetic modelling Based (PBTK) Ames test In vitro cell gene mutation test In vitro aberration test In vitro cell micronucleus test chromosomal New Zealand’s international reputation is at risk It was argued by submitters that New Zealand is known as an innova- tive country with a reputation for good animal welfare.
Submitters said that developing legislation which allows for unnecessary ani- mal testing will damage this reputation, especially given that there is an international trend towards avoiding animal testing wherever pos- sible.

SAFE submitted that this is an opportunity to avoid risking our reputation and to enhance our reputation as an innovative and ethical country.
Submitters also gave evidence that other countries are looking to New Zealand’s development of regulation of psychoactive sub- stances as a potential model for their own regulation.

Some of these countries also do not allow animal testing of recreational drugs.

If they choose to follow the model developed in this bill as it stands they will adapt it to fit their bans on animal testing of recreational drugs.
NZAVS gave evidence gained from an Official Information Act re- quest of correspondence between the chair of the National Animal Welfare Advisory Committee and her equivalent in the United King- Commentary Psychoactive Substances Bill 15 dom that showed the UK ban on animal testing would also apply to psychoactive substances.
Animal testing is ethically and morally questionable One submission from an animal rescue organisation, Helping You Help Animals (HUHA), talked about the pain and discomfort that these sorts of tests inflict on animals.

Their organisation was involved with rescuing dogs from an animal testing facility and they witnessed serious damage and harm to those animals.
They spoke about their experiences of working with some people who carry out animal testing who had been overexposed to animal suffering and had lost their empathy when it came to the animals under their care.

Submitters told the hearings that unless it was ruled out in the bill, then animal testing would most likely be carried out in other coun- tries, some of which have no animal welfare regulations and so the conditions can be assumed to be worse.
A number of countries already ban non-medical animal testing from an ethical standpoint.

Toxicity testing is particularly painful experi- mentation.

Submitters argued that the consideration of this bill is the chance for New Zealand to draw an ethical line on this issue.

Cost implications of non-animal testing The cost of alternatives to animal testing is significantly higher.
Because the cost of safety testing for a product will be carried by the manufacturers, not the Government, submitters argued that this higher cost of non-animal testing creates an incentive for animal testing to be used.

In fact, the point was made that if the bill does not rule out the use of data from animal testing then the cost difference will ensure that manufacturers use the cheapest method to provide evidence, and that will be animal testing regardless of the quality of that evidence.
Submitters spoke about the dominance of animal testing in the indus- try in New Zealand—it is the norm, rather than a last resort.

Evidence was received to show that this is also the case in some countries such as China where a large amount of contract animal testing is under- taken.
16 Psychoactive Substances Bill Commentary There was evidence presented by submitters that, if data from animal testing is ruled out, businesses will adapt their practices and the cost of non-animal testing will drop as demand for these tests increases and capacity to undertake these tests develops.
Recommendation The Green Party recommends that an amendment should be made to the Psychoactive Substances Bill to exclude the use of new infor- mation gained through animal testing as evidence in determining the safety of an application.

New Zealand First Party minority view New Zealand First does not support the use of the many dangerous psychoactive substances that are legally available for purchase.
We know that these synthetic drugs are devastating the lives of many of our young people and unfortunately, research into the consumption of these on a long term basis has not been carried out.

New Zealand First accepts that this bill is the beginning of some control upon psychoactive drug manufacturers and distributors.

We would advise that New Zealand closely monitor overseas jurisdic- tions where this issue is also being reviewed.

New Zealand First believes that these substances should be banned.
Commentary Psychoactive Substances Bill 17 Appendix Committee process The Psychoactive Substances Bill was referred to the Health Com- mittee on 9 April 2013.

The closing date for submissions was 1 May 2013.

We received and considered 122 submissions from interested groups and individuals.

We heard 27 submissions in Wellington.

We received advice from the Ministry of Health, the Ministry for Justice, and the New Zealand Police.
The Regulations Review Com- mittee reported to the committee on the powers contained in clauses 81, 82, and 83.
Committee membership Dr Paul Hutchison (Chairperson) Shane Ardern Paul Foster-Bell Kevin Hague Hon Annette King Iain Lees-Galloway Scott Simpson Barbara Stewart Louisa Wall Dr Jian Yang Psychoactive Substances Bill Key to symbols used in reprinted bill As reported from a select committee text inserted unanimously text deleted unanimously Hon Tony Ryall Psychoactive Substances Bill Government Bill Contents Title Commencement Part 1 Preliminary provisions Subpart 1—Preliminary matters Purpose Principles Application of Act Overview Act binds the Crown Subpart 2—Interpretation General Interpretation Meaning of psychoactive substance Meaning of psychoactive substance Subpart 3—Key regulatory roles 10 11 11A Psychoactive Substances Regulatory Authority Psychoactive Substances Expert Advisory Committee Duty of advisory committee relating to use of animals when evaluating psychoactive product for approval 100—2 Page 7 7 7 7 8 8 10 10 15 16 17 18 1 Psychoactive Substances Bill Part 2 Psychoactive substances and approved products Subpart 1—Licences to import, manufacture, research, and sell Applications for licence Application for licence Authority may refuse to process application for licence Authority may request further information, etc Granting of licence Grounds for granting licence Conditions of licence Compulsory conditions of licences Discretionary conditions of licence Duration of licence Duration of licence Licence not transferable Licence may not be transferred Refusal of licence Refusal to grant licence Suspension, cancellation, and surrender of licence Suspension or cancellation of licence Surrender of licence Offences relating to licences Offence relating to application for licence Offence relating to importation of psychoactive substance without licence Offence relating to manufacture of psychoactive substance without licence Offence relating to importation, manufacture, research, or sale in breach of licence conditions Further provisions relating to manufacture of psychoactive substances
 Code of manufacturing practice Audit of manufacturing facilities Authorised person may enter manufacturing facility Authority may issue compliance notice Psychoactive Substances Bill Subpart 2—Approved products Applications for approval Application for approval Authority may refuse to process application for approval Authority may request further information, etc Authority must protect confidential supporting information relating to application for approval Granting of approval Grounds for approving product Conditions of approval Conditions of approval Refusal and revocation of approval Refusal to grant approval Revocation of approval Offences relating to approvals Offence relating to application for approval Offence relating to breach of conditions of approval Register of products Register of products Subpart 3—Appeals against Authority Psychoactive Substances Appeals Committee Appeals against Authority’s decisions Appeals committee may refer appeals back for reconsideration 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 Appeal to High Court on question of law Further appeals Part 3 Control of approved products and other matters Subpart 1—Control of approved products Age restrictions Restriction on persons under 18 years buying or possessing psychoactive substance (including approved products) Restriction on selling approved products to persons under 18 years Restriction on supplying approved products to persons under 18 years in public place 46 47 48 29 29 30 30 31 32 32 32 33 33 33 34 34 36 36 36 37 38 3 Psychoactive Substances Bill Restriction on employing persons under 18 years to sell approved products Other restrictions, prohibitions, and requirements relating to approved products Prohibitions and restrictions on place of sale of approved products Restrictions and requirements relating to Internet sales of approved products Prohibition on
 free-of-charge distribution and rewards of approved products Prohibition on sponsoring activity involving use of trade mark, etc, of approved product Prohibitions, restrictions, and requirements relating to advertising of approved products Restriction on retailer’s name using words, expressions, or trademarks etc, associated with approved products Restrictions and requirements relating to labelling of approved products Restrictions and requirements relating to packaging approved products Requirement relating to health warnings Requirement to display signage Restrictions and requirements relating to storage and display of approved products Restrictions and requirements relating to disposal of psychoactive substances Requirement to keep records relating to psychoactive substances and approved products Prohibitions and restrictions on convicted persons selling approved products Prohibitions and restrictions on convicted persons selling approved products Local approved products policies Territorial authority may have local approved products policy Territorial authorities may adopt joint local approved products policy Content of local approved products policy Adoption and review of local approved products policy 40 40 41 41 43 44 45 46 47 47 48 48 48 49 49 50 50 51 51 49 50 51 52 52A 53 53A 54 55 56 57 58 59 60 61 61A 61B 61C 61D 4 Psychoactive Substances Bill Subpart 2—Offences relating to psychoactive substances that are not approved products Offences relating to psychoactive substance that is not approved product Offence relating to personal possession of psychoactive substance that is not approved product Infringement offences Interpretation Proceedings for infringement offence Infringement notices Payment of infringement fees Subpart 3—Enforcement Enforcement officers 62 63 64 65 66 67 68 Enforcement officers 69 69A 70 71 72 73 74 Enforcement powers Warrantless power to enter and search Power to enter and search retail premises Warranted power to enter and search Power
 to demand information where offence against section 47 suspected Power to demand information and arrest where offence against section 63 suspected Forfeiture Offences relating to enforcement Obstructing enforcement officer or constable International controlled delivery of psychoactive substances 75 75A International controlled delivery of psychoactive substances Liability of principals and directors Subpart 4—Other powers of Authority 76 77 78 79 Authority may declare recognised authorities Approved laboratories Recall orders Export certificates Subpart 4A—Cost recovery 79A 79B Costs to be recovered Principles of cost recovery 52 52 52 53 53 54 54 57 57 58 59 60 60 61 61 62 63 63 64 65 66 66 5 Psychoactive Substances Bill 79C Methods of cost recovery 79D 79E 79F 79G 79H Cost recovery to relate generally to financial year Three-yearly review of cost recovery Regulations prescribing fees and charges Regulations imposing levies Failure to pay fee, charge, or levy 80 81 82 83 84 Subpart 5—Other matters Duty to notify adverse reactions Duty of specified persons to notify Authority about adverse reactions Regulations Regulations relating to psychoactive substances Regulations relating to infringement offences Other regulations Delegation of Authority’s functions, duties, or powers Delegation of Authority’s functions, duties, or powers Protection from civil and criminal liability 84A Immunities 85 86 87 88 89 90 Relationship with other enactments Relationship with Hazardous Substances and New Organisms Act 1996 Application of Customs and Excise Act 1996 Ministry must review Act Review of Act Transitional provision Transitional provision Amendments to Search and Surveillance Act 2012 Amendments to Search and Surveillance Act 2012 Amendments to Children, Young Persons, and Their Families Act 1989 Amendments to Children, Young Persons, and Their Families Act 1989 Consequential amendments and revocation 91 Consequential amendments and revocation 6 67 68 69 69 70 70 70 71 73 73 79
 80 80 81 81 81 82 82 82 Psychoactive Substances Bill Part 1 cl 4 Schedule 1 Transitional provision Schedule 2 Consequential amendments and revocation 83 85 The Parliament of New Zealand enacts as follows: 1 2 3 4 Title This Act is the Psychoactive Substances Act 2013.
Commencement This Act comes into force on 1 August 2013 on the day after 5 the date on which it receives the Royal assent.

Part 1 Preliminary provisions Subpart 1—Preliminary matters Purpose The purpose of this Act is to regulate the availability of psy- choactive substances in New Zealand to protect the health of, and minimise harm to, individuals who use psychoactive sub- stances.
Principles In performing functions or duties or exercising powers (either individually or collectively) under this Act, a person or body must take into account the following principles to the extent that they are relevant to those functions, duties, or powers: (a) a psychoactive product that is approved for use by indi- 20 viduals should pose no more than a low risk of harm to individuals using who use it: before a psychoactive product can be approved for use by individuals, the degree of harm posed by the prod- uct to individuals who use it should be assessed by the 25 Authority on the basis of— (i) the advice of an expert advisory committee; and (b) 10 15 7 Part 1 cl 5 Psychoactive Substances Bill (ba) (c) (d) (ii) evidence, including the results of preclinical and clinical trials: a psychoactive product that poses no more than a low risk of harm to individuals who use the product should be approved: a psychoactive product that poses more than a low risk of harm to individuals using the product who use the product should be prohibited: a psychoactive product that has not been approved by the Authority should be prohibited, on a precautionary 10 basis, until it has been assessed by the Authority and the Authority is satisfied that it poses no more than a low risk of harm to individuals who use it.
5 Application of Act This Act applies to the importation, manufacture, sale, supply, 15 or possession of a psychoactive substance for the primary pur- pose of inducing a psychoactive effect in an individual using who uses the substance.

Schedule 1 contains a transitional provision that affects this Act’s other provisions as from time to time amended, repealed, 20 or repealed and replaced (see section 88).
Overview In this Act,— (a) this Part— (i) (ii) (iii) (iv) sets out the purpose of this Act and the principles 25 on which it is based: provides that this Act binds the Crown: defines terms used in this Act, including the key term psychoactive substance: establishes the Psychoactive Substances Regula- 30 tory Authority and the Psychoactive Substances Expert Advisory Committee: (b) Part 2 authorises the Authority to issue licences for the importation, manufacture, and sale of psychoactive substances and to approve psychoactive products and 35 also deals with related matters, including— 5 (1) (2) 6 (1) 8 (c) Psychoactive Substances Bill Part 1 cl 6 (i) (ii) (iii) creating offences relating to the importation, manufacture, sale, and supply of psychoactive substances without a licence or in breach of licence conditions: a requirement for the Authority to issue a code of 5 manufacturing practice relating to psychoactive substances: the process for appeals against decisions of the Authority: Part 3 relates to the control of approved products, cre- 10 ates offences relating to the sale and supply of psy- choactive substances that are not approved products, and also deals with other regulatory matters, includ- ing— (i) age restrictions and place-of-sale restrictions on 15 the sale of approved products: advertising, labelling, and packaging restrictions and requirements for approved products: health-warning requirements for approved prod- ucts: signage, storage, and display restrictions and re- quirements for approved products: creating offences relating to the sale of approved products by or to persons under the age of 18 years and the possession of psychoactive sub- 25 stances without a licence: the relationship between this Act and other en- actments: 20 (ii) (iii) (iv) (v) (vi) (vii) authorising the Authority to recall approved products in certain circumstances: 30 (ix) (viii) requiring the Ministry of Health to conduct a re- view of the policy and operation of this Act after 5 years no later than 5 years after the commence- ment of this Act: providing for the circumstances in which psy- 35 choactive substances that were being lawfully sold throughout the period of 6 months before the commencement of this Act may continue to be sold if certain conditions are met: 9 Part 1 cl 7 Psychoactive Substances Bill (x) amending other enactments.
(2) This section is only a guide a guide only to the general scheme and effect of this Act and does not limit or affect the other provisions of this Act.

5 10 Act binds the Crown This Act binds the Crown.
Subpart 2—Interpretation General Interpretation In this Act, unless the context otherwise requires,— adverse reaction means— (a) an unwanted or harmful reaction experienced by an in- dividual who has used a psychoactive substance or an approved product; and that is suspected to have arisen from, or be related to, 15 the use of the substance or product (b) advertising— (a) means any words, whether written, printed, or spoken, and any pictorial representation or design, used or ap- pearing to be used to promote the sale of an approved 20 product (for example, a sign, publication, or leaflet); and includes any matter referred to in paragraph (a) that is represented in an electronic or digital medium (b) advisory committee means the Psychoactive Substances Ex- 25 pert Advisory Committee established by section 11 alcohol has the same meaning as in section 5(1) of the Sale and Supply of Alcohol Act 2012 appeals committee means the Psychoactive Substances Ap- peals Committee established by section 42 approved evidence of age document has the same meaning as in section 5(1) of the Sale and Supply of Alcohol Act 2012 approved evidence of age system has the same meaning as in section 5(1) of the Sale and Supply of Alcohol Act 2012 30 7 8 10 Psychoactive Substances Bill Part 1 cl 8 5 10 approved product means a product approved by the Author- ity under section 35 that is or contains 1 or more psychoactive substances Authority means the Psychoactive Substances Regulatory Authority established by section 10 code of manufacturing practice or code means a code of practice, relating to the manufacture of psychoactive sub- stances, issued under section 27 constable has the same meaning as in section 4 of the Policing Act 2008 Customs officer has the same meaning as in section 2(1) of the Customs and Excise Act 1996 distributor means a person engaged in the business of selling approved products otherwise than at retail only district, in relation to a territorial authority, has the same 15 meaning as in section 5(1) of the Local
 Government Act 2002 enforcement officer means a person appointed by the Author- ity under section 68 evidential material has the same meaning as in section 3(1) of the Search and Surveillance Act 2012 hazardous substance has the same meaning as in section 2(1) of the Hazardous Substances and New Organisms Act 1996 individual means a natural person, other than a deceased nat- ural person importation and importer have the same meanings as in sec- 25 tion 2(1) of the Customs and Excise Act 1996 Internet sale, in relation to an approved product, means a sale (whether by retail or by wholesale) of the approved product pursuant to a contract that— (a) has been entered into using the Internet and between— 30 a seller whose business is or includes offering the (i) product for sale (whether by retail or wholesale); and a person (whether the purchaser or a person act- ing on the purchaser’s behalf) who is at a distance 35 from the seller’s place of business; and (ii) 20 11 Part 1 cl 8 Psychoactive Substances Bill (b) contains a term providing for the product to be delivered by or on behalf of the seller to, or to a place or person chosen by, the purchaser label includes any written, pictorial, or other descriptive mat- ter that— (a) (b) relates to an approved product; or appears on, is attached to, or is associated with the ap- proved product 5 10 licence means the following licences: a licence to manufacture: (a) a licence to import: (b) a licence to sell (c) licence to import, licence to manufacture, and licence to sell mean, in each case, a licence granted under section 15 licence means a licence granted under section 15 that is in 15 force manufacture, in relation to a psychoactive substance or an approved product,— (a) means to make up, prepare, produce, or process the sub- (b) stance or product for the purpose of sale; and includes packaging the substance or product for the pur- pose of sale 20 25 manufacturer includes any company with which a manufac- turer is
 associated within the meaning of subpart YB of the Income Tax Act 2007 Minister means the Minister who is, with the authority of the Prime Minister, for the time being responsible for the admin- istration of this Act Ministry means the department of State that is, with the au- thority of the Prime Minister, for the time being responsible 30 for the administration of this Act minor means a person under the age of 18 years New Zealand resident has the same meaning as in section YD 1 or YD 2 of the Income Tax Act 2007 place includes any building, conveyance, craft, land, or struc- 35 ture 12 Psychoactive Substances Bill Part 1 cl 8 possess, in relation to a psychoactive substance, includes a psychoactive substance that is subject to a person’s control but that is in the custody of another person prescribed monitoring agency means the agency specified in the regulations as the agency to whom adverse reactions must 5 be reported private premises has the same meaning as in section 3(1) of the Search and Surveillance Act 2012 psychoactive effect, in relation to an individual who is using or has used a psychoactive product, means the effect of the 10 product on the individual’s mind psychoactive product or product means a finished product packaged and ready for retail sale that is a psychoactive sub- stance or that contains 1 or more psychoactive substances psychoactive substance has the meaning given in section 9 15 public health has the same meaning as in section 6(1) of the New Zealand Public Health and Disability Act 2000 regulations means regulations made under this Act retailer means a person engaged in any business that includes the sale of approved products at by retail retail premises means premises for which a licence to sell approved products by retail has been granted sell includes every method of disposition for valuable consid- eration, for example,— bartering: (a) offering or attempting to sell or having in possession (b) for sale, or exposing, sending, or
 delivering for sale, or causing or allowing to be sold, offered, or exposed for sale: retailing: (c) (d) wholesaling special consultative procedure has the same meaning as in section 5(1) of the Local Government Act 2002 supply— (a) (b) includes distribute or give; but does not include sell 35 25 20 30 13 Part 1 cl 9 Psychoactive Substances Bill includes— (i) territorial authority has the same meaning as in section 5(1) of the Local Government Act 2002 use, in relation to a psychoactive substance,— (a) means use by an individual; and (b) 5 (ii) ingesting, inhaling, injecting, or being adminis- tered the psychoactive substance: any other method of inducing an a psychoactive effect from the psychoactive substance.
vehicle means any conveyance that is capable of being moved 10 under a person’s control, whether or not the conveyance is used for the carriage of persons or goods, and includes a motor vehicle, aircraft, train, ship, or bicycle wholesaler means a person engaged in any business that in- cludes the sale of approved products by wholesale.
15 Meaning of psychoactive substance (b) Meaning of psychoactive substance In this Act, unless the context otherwise requires, psychoac- tive substance— (a) means a substance, mixture, preparation, article, device, 20 or thing that is capable of inducing a psychoactive effect (by any means) in an individual who uses the psychoac- tive substance; and includes— (i) (ii) an approved product: a substance, mixture, preparation, article, device, or thing that is, or that is of a kind or belonging to a class that is, declared by the Governor-General by Order in Council made under section 81 to be a psychoactive substance for the purposes of 30 this Act; but does not include— (i) a controlled drug specified or described in Sched- ule 1, 2, or 3 of the Misuse of Drugs Act 1975: a precursor substance specified or described in 35 Schedule 4 of the Misuse of Drugs Act 1975: (ii) (c) 25 9 14 Psychoactive Substances Bill Part 1 cl 9 (iii) (iv) (v) (vi) the a medicine as defined in section 3 of Medicines Act 1981 or a related product as de- fined in section 94 of that Act: a herbal remedy (as defined in section 2(1) of the Medicines Act 1981): a dietary supplement (as defined in regulation 2A of the Dietary Supplements Regulations 1985): any food (as defined in section 2 of the Food Act 1981): 5 (vii) any alcohol (as defined in section 5(1) of the Sale 10 and Supply of Alcohol Act 2012), unless the al- cohol contains a psychoactive substance within the meaning of paragraph (a) or (b) that is not alcohol: (ix) (viii) any tobacco product (as defined in section 2(1) of 15 the Smoke-free Environments Act 1990), unless the tobacco product contains a psychoactive sub- stance within the meaning of paragraph (a) or (b) that is not tobacco: a substance, mixture, preparation, article, device, 20 or thing that is, or that is of a kind or belonging to a class that is, declared by the Governor-General by Order in Council made under section 81 not to be a psychoactive substance for the purposes of this Act.
25 Compare: 2005 No 81 s 31 9 (1) (2) Meaning of psychoactive substance In this Act, unless the context otherwise requires, psychoac- tive substance means a substance, mixture, preparation, art- icle, device, or thing that is capable of inducing a psychoactive 30 effect (by any means) in an individual who uses the psychoac- tive substance.
Psychoactive substance includes— an approved product: (a) a substance, mixture, preparation, article, device, or 35 (b) thing that is, or that is of a kind or belonging to a class that is, declared by the Governor-General by Order in 15 Part 1 cl 10 Psychoactive Substances Bill Council made under section 81 to be a psychoactive substance for the purposes of this Act.
(3) Despite subsections (1) and (2), psychoactive substance does not include— (a) (b) (c) (d) (e) (f) (g) (h) (i) a controlled drug specified or described in Schedule 1, 5 2, or 3 of the Misuse of Drugs Act 1975: a precursor substance specified or described in Schedule 4 of the Misuse of Drugs Act 1975: a medicine within the meaning of section 3 of the Medicines Act 1981 or a related product within the 10 meaning of section 94 of that Act: a herbal remedy (within the meaning of section 2(1) of the Medicines Act 1981): a dietary supplement (within the meaning of regulation 2A of the Dietary Supplements Regulations 1985): any food (within the meaning of section 2 of the Food Act 1981): any alcohol, unless the alcohol contains a psychoactive substance as defined in subsection (1) or (2) that is not alcohol: any tobacco product (within the meaning of section 2(1) of the Smoke-free Environments Act 1990), unless the tobacco product contains a psychoactive substance as defined in subsection (1) or (2) that is not tobacco: a substance, mixture, preparation, article, device, or 25 thing that is, or that is of a kind or belonging to a class that is, declared by the Governor-General by Order in Council made under section 81 not to be a psychoac- tive substance for the purposes of this Act.
20 15 Compare: 2005 No 81 s 31 Subpart 3—Key regulatory roles Psychoactive Substances Regulatory Authority This section establishes the Psychoactive Substances Regula- tory Authority.

The Authority is the Director-General of Health.

The office of the Authority must be administered by the Min- istry.

30 35 10 (1) (2) (3) 16 Psychoactive Substances Bill Part 1 cl 11 11 (1) (2) Psychoactive Substances Expert Advisory Committee This section establishes the Psychoactive Substances Expert Advisory Committee.
The functions of the advisory committee are— (a) (b) (c) to evaluate, with regard to the results of preclinical and 5 clinical trials, psychoactive products to assess whether they should be approved for use by individuals; and to advise the Authority about whether a psychoactive product should or should not be approved for use by individuals; and to increase public awareness of the advisory commit- tee’s work in relation to psychoactive substances, for example, by the timely release of papers, reports, and recommendations.
10 (2A) For the purposes of subsection (2)(b), the matters that advi- 15 sory committee must have regard to in advising the Authority include— (a) 20 (e) (f) (b) (c) (d) the specific effects of the product, including pharmaco- logical, psychoactive, and toxicological effects; and the risks, if any, to public health; and the potential for use of the product to cause death; and the ability of the product to create physical or psycho- logical dependence; and the likelihood of misuse of the product; and the potential appeal of the product to vulnerable popu- 25 lations; and any other matters that the Authority considers relevant.
(g) The advisory committee may comprise up to 6 members who between them must have appropriate expertise in— (a) (b) (c) (d) medicine:; and (e) The Authority may appoint members of the advisory commit- 35 tee on any terms and conditions that the Authority thinks fit.

The Authority must appoint 1 member as chairperson of the advisory committee.

pharmacology:; and toxicology:; and neurosciences:; and any other areas the Authority considers relevant.
30 (3) (4) (5) 17 Part 1 cl 11A Psychoactive Substances Bill (6) (7) (8) (9) The Authority must consult the Minister before making an ap- pointment to the advisory committee.

The Authority may give terms of reference— (a) on for the advice that the advisory committee provides to the Authority: on for the use of external experts to assist the advisory committee.

(b) 5 The advisory committee may, subject to any provision of this Act or regulations, determine its own procedure.
In performing its functions under this Act, the advisory com- 10 mittee must— (a) (b) act independently; and comply with the principles of natural justice.
11A Duty of advisory committee relating to use of animals when evaluating psychoactive product for approval In performing the function set out in section 11(2)(a), the advisory committee must, having particular regard to the principle in section 4(a) and the likelihood for psychoactive products to be used by young adults, comply with subsec- tions (2) and (3).
The advisory committee must ensure that any preclinical or clinical tests (whether undertaken in New Zealand or over- seas) that relate to a psychoactive product do not rely on any research, testing, or teaching that involves the use of an animal if suitable alternatives exist.
The advisory committee must ensure that, if any preclinical trials or clinical trials (whether undertaken in New Zealand or overseas) that relate to a psychoactive product include re- search, testing, or teaching that involves the use of an animal, those tests— (a) are based on the relevant International Conference on Harmonisation Guidelines (as amended from time to time); and if undertaken in New Zealand, comply with the restric- tions on the use of animals in research, testing, or teach- 35 ing set out in Part 6 of the Animal Welfare Act 1999; and (b) 15 20 25 30 (1) (2) (3) 18 Psychoactive Substances Bill Part 2 cl 12 (c) (d) if undertaken overseas, comply with restrictions on the use of animals in research, testing, or teaching that are equivalent to or exceed those set out in Part 6 of the Animal Welfare Act 1999; and are periodically reviewed to ensure there is up to date 5 analysis of available alternatives with an aim to— (i) reducing the number of animals used in research, testing, and teaching to the minimum necessary; and refining the techniques used in any research, test- 10 ing, and teaching so that any harm caused to ani- mals is minimised; and replacing animals as subjects for research and testing of psychoactive products as further in- formation becomes available (whether in New 15 Zealand or overseas).
(ii) (iii) (4) In this section, animal has the same meaning as in section 2(1) of the Animal Welfare Act 1999.
Part 2 Psychoactive substances and approved products Subpart 1—Licences to import, manufacture, research, and sell psychoactive substances Applications for licence 20 Application for licence 12 (1) A person who is a New Zealand resident may apply to the 25 Authority for 1 or more of the following licences: (a) (b) (c) a licence to import a psychoactive substance: a licence to manufacture a psychoactive substance: a licence to sell a psychoactive substance that is not an 30 approved product.
(1) A person who is a New Zealand resident may apply to the Authority for 1 or more of the following licences: a licence to import psychoactive substances: (a) a licence to manufacture psychoactive substances: (b) a licence to research psychoactive substances: (c) 35 19 Part 2 cl 13 Psychoactive Substances Bill (d) (e) (f) a licence to sell psychoactive substances that are not approved products: a licence to sell approved products by retail: a licence to sell approved products by wholesale.
(2) An application must— 5 (a) (b) be made to the Authority in a form or manner approved by the Authority; and be accompanied by— (i) any particulars, information, documents, or other material required by the Authority and prescribed 10 in the regulations; and the prescribed fee (if any).

(ii) 13 (1) (2) 14 (1) Authority may refuse to process application for licence The Authority may refuse to process an application for a li- cence if the application does not comply with section 12.
If the Authority refuses to process an application under sub- section (1), the Authority must give the applicant written no- tice of the refusal and the reasons for it.

15 Authority may request further information, etc The Authority may request an applicant for a licence to supply 20 further particulars, information, documents, or other material before deciding whether or not to grant a licence.
(2) An application for a licence lapses if the further particulars, in- formation, documents, or other material requested is not sup- plied within— (a) (b) 30 days after the date of the request; or any further time that the Authority may allow by written notice to the applicant.
Granting of licence Grounds for granting licence The Authority must grant a licence if the Authority is satisfied that,— (a) that the application has been made in the form or man- ner required by section 12; and 15 (1) 20 25 30 Psychoactive Substances Bill Part 2 cl 16 (b) (c) (c) (d) that the application does not contain materially false or misleading information; and that the applicant is a fit and proper person to hold the licence.
for an application made by an individual, the applicant 5 is a fit and proper person to hold the licence; and for an application made on behalf of a body corporate, the body corporate is of good repute.
In determining under subsection (1)(c) whether an applicant is a fit and proper person to hold a licence, the Authority must 10 take into account— (a) whether the applicant has been convicted of a relevant offence; and (b) whether there has in the past been a serious or repeated (c) failure by the applicant to comply with any requirement 15 of this Act; and whether there are other grounds for considering that the applicant is likely in the future to fail to comply with any requirement of this Act; and (d) any other matter that the Authority considers relevant.
For the purposes of subsection (2)(a), relevant offence means— (a) (b) an offence against this Act; or an offence against the Misuse of Drugs Act 1975 or the Misuse of Drugs Amendment Act 2005 or any regula- 25 tions made under those Acts; or a crime involving dishonesty (as defined in section 2(1) of the Crimes Act 1961).
(c) 20 Conditions of licence Compulsory conditions of licences It is a condition of a licence to import that the licence holder must, before each importation of a psychoactive substance by the licence holder, advise the Authority of the importation.— (a) (b) advise the Authority of the importation; and provide to the Authority particulars of— (i) the name and quantity of the psychoactive sub- stance to be imported; and 30 35 21 (2) (3) 16 (1) Part 2 cl 17 Psychoactive Substances Bill (ii) the intended date of the importation.
It is a condition of a licence to manufacture that the licence holder must comply with the code of manufacturing practice at all times.

It is a condition of a licence to sell that the licence holder must 5 not sell or supply a psychoactive substance that is not an ap- proved product in New Zealand except to a person who holds a licence to manufacture.
It is a condition of a licence to sell psychoactive substances that are not approved products that the licence holder may only 10 sell psychoactive substances in New Zealand to a person who holds a licence to manufacture psychoactive substances.
It is a condition of every licence that the licence holder must— keep, in some place of security at the licence holder’s (a) place of business, any records required to be kept by the 15 licence holder by the regulations; and retain those records for the period of time prescribed in the regulations.
(b) It is a condition of every licence that the licence holder must, before any exportation of a psychoactive substance by the li- 20 cence holder,— (a) (b) advise the Authority of the exportation; and provide to the Authority particulars of— (i) the name and quantity of the psychoactive sub- stance to be exported; and the intended date of the exportation.
(ii) Discretionary conditions of licence The Authority may, when granting a licence, impose any other conditions on the licence in addition to a relevant condition specified in section 16 that the Authority thinks fit.

If a licence holder asks the Authority for the reasons for im- posing conditions on the licence under subsection (1), the Authority must, as soon as practicable, provide written rea- sons.
25 30 (2) (3) (3) (4) (5) 17 (1) (2) 22 18 19 20 (1) (2) 21 (1) Psychoactive Substances Bill Part 2 cl 21 Duration of licence Duration of licence A licence remains in force for 3 years after the date that it is granted unless— (a) the Authority specifies a shorter period for the licence; 5 or it is sooner cancelled or surrendered under this subpart.
(b) Licence not transferable Licence may not be transferred A licence may not be transferred to, or vest by operation of 10 law in, a person other than the person who applied for and was granted the licence.

Refusal of licence Refusal to grant licence If the Authority proposes to refuse to grant a licence, the Au- 15 thority must give the applicant— (a) written notice that clearly informs the applicant of the grounds for the proposed refusal; and (b) a reasonable opportunity to make written submissions.
If, after considering any submissions provided by the applicant 20 under subsection (1)(b), the Authority decides to refuse to grant the licence, the Authority must, as soon as practicable, give the applicant written notice of— (a) (b) the decision and the reasons for it; and the applicant’s right to appeal the decision under sec- 25 tion 43.
Suspension, cancellation, and surrender of licence Suspension or cancellation of licence The Authority may suspend or cancel a licence if the Author- 30 ity is satisfied, at any time after the licence has been granted, that— (a) the licence holder supplied information in the applica- tion for the licence that is materially false or misleading: 23 Part 2 cl 22 Psychoactive Substances Bill (b) (c) (d) the licence holder has breached any conditions of the licence: the licence holder is failing, or has failed, to comply with any relevant requirement of this Act or any regu- lations made under this Act the regulations: the licence holder has ceased to be a fit and proper per- son to hold the licence.
5 (2) (3) (4) 22 (1) The Authority may suspend a licence under subsection (1), for a period of time that is reasonable in the circumstances, to enable the Authority to consider whether to cancel the licence.

10 The Authority may cancel a licence under subsection (1) only after— (a) giving the licence holder a reasonable opportunity to be heard; and considering any evidence provided by the licence 15 holder; and considering submissions made to it by the licence holder.
(b) (c) If a licence holder asks the Authority for the reasons for the suspension or cancellation of the licence, the Authority must, 20 as soon as practicable, provide written reasons.

Compare: 1981 No 118 s 51(6), (7) Surrender of licence If a licence holder ceases to undertake the activity to which a licence relates, the licence holder must, within 30 days of 25 ceasing to undertake the activity, surrender the licence to the Authority.

(2) A licence holder may surrender a licence at any other time.
(3) On receiving a licence under subsection (1) or (2), the Au- thority must cancel the licence.

30 Offences relating to licences Offence relating to application for licence 23 (1) A person commits an offence in respect of an application for a licence if the person provides information that the person knows, or ought to have known, is false or misleading in any 35 material respect.
24 Psychoactive Substances Bill Part 2 cl 26 (2) A person who commits an offence against subsection (1) is liable on conviction to a term of imprisonment not exceeding 3 months or a fine not exceeding $500,000, or both.

24 Offence relating to importation of psychoactive substance without licence 5 (1) A person must not, without reasonable excuse, import a psy- choactive substance without a licence to import.
(2) A person who contravenes subsection (1) commits an of- fence and is liable on conviction,— (a) in the case of an individual, to a term of imprisonment 10 not exceeding 2 years: in the case of a body corporate, to a fine not exceeding $500,000.

(b) 25 Offence relating to manufacture of psychoactive substance without licence 15 (1) A person must not, without reasonable excuse, manufacture a psychoactive substance without a licence to manufacture.
(2) A person who contravenes subsection (1) commits an of- fence and is liable on conviction,— (a) in the case of an individual, to a term of imprisonment 20 not exceeding 2 years: in the case of a body corporate, to a fine not exceeding $500,000.

(b) 26 Offence relating to import, manufacture, sale, or supply of psychoactive substance in breach of licence conditions 25 (1) A person must not import a psychoactive substance in breach of any conditions of a licence to import.
(2) A person must not manufacture a psychoactive substance in breach of any conditions of a licence to manufacture.

(3) A person must not sell or supply a psychoactive substance that 30 is not an approved product in breach of any conditions of a licence to sell.

(4) A person who contravenes subsection (1), (2), or (3) com- mits an offence and is liable on conviction to a term of im- 25 Part 2 cl 26 Psychoactive Substances Bill prisonment not exceeding 3 months or a fine not exceeding $500,000, or both.
26 Offence relating to importation, manufacture, research, or sale in breach of licence conditions (1) A person who holds a licence to import psychoactive sub- 5 stances must not import a psychoactive substance in breach of any conditions of the licence.

(2) A person who holds a licence to manufacture psychoactive substances must not manufacture a psychoactive substance in breach of any conditions of the licence.
10 (3) A person who holds a licence to research must not conduct any research activity with a psychoactive substance in breach of any conditions of the licence.

(4) A person who holds a licence to sell approved products by retail must not sell an approved product in breach of any con- 15 ditions of the licence.

(5) A person who holds a licence to sell approved products by wholesale must not sell an approved product in breach of any conditions of the licence.
(6) A person who holds a licence to sell psychoactive substances 20 that are not approved products must not sell a psychoactive substance in breach of any conditions of the licence.

(7) A person who contravenes subsection (1), (2), (3), (4), (5), or (6) commits an offence and is liable on conviction to a term of imprisonment not exceeding 3 months or a fine not 25 exceeding $500,000, or both.
Further provisions relating to manufacture of psychoactive substances Code of manufacturing practice The Authority must issue a code of manufacturing practice 30 relating to the manufacture of psychoactive substances.

The code must come into force no later than 1 year 6 months after the commencement of this Act.
In developing the code and any amendments to it, the Author- ity must— 35 27 (1) (2) (3) 26 (4) 28 (1) (2) (3) 29 (1) Psychoactive Substances Bill Part 2 cl 29 (a) (b) be guided by the principles of this Act: consult with persons or organisations that the Authority considers to be representative of the interests of persons likely to be affected by the code or the proposed amend- ments to it.
The Authority must ensure that the code, and any amendment to the code,— (a) (b) specifies the date on which it takes effect: is published on an Internet site maintained by, or on behalf of, the Authority: is available for purchase in hard copy, at a reasonable cost, from the Authority.

(c) 5 10 Audit of manufacturing facilities This section applies to a manufacturing facility in which a psy- choactive substance is being manufactured under a licence to 15 manufacture.
For the purpose of assessing whether the manufacturing facil- ity complies with the code and, if applicable, any conditions of the licence to manufacture, the Authority may do 1 or both of the following: (a) conduct an audit of the manufacturing facility at any time: to the extent that the Authority considers applicable, recognise an audit of the manufacturing facility con- ducted by another person under another enactment or 25 for any other purpose.
(b) 20 The Authority may conduct an audit under subsection (2)(a) in any manner that the Authority considers is appropriate and consistent with the principles of this Act.
Authorised person may enter manufacturing facility The Authority may authorise a person (an authorised person) to enter a manufacturing facility during the normal business hours of the facility and to exercise any power set out in this section for the purpose of— (a) assessing an application for a licence to manufacture; or 35 30 27 Part 2 cl 29 Psychoactive Substances Bill (b) assessing whether the manufacturing facility is comply- ing with the code of manufacturing practice or any con- ditions of a licence to manufacture.
(2) 5 For the purpose of subsection (1)(a) or (b), an authorised person may— (a) (b) open containers and packages and inspect the contents: request, gather, or secure evidence, take samples of any psychoactive substances, and test or analyse or arrange for the testing or analysis of such samples: inspect, inquire about, or copy any documents or other 10 records (including documents or other records in an electronic form) relating to the obligations imposed under this Act or the regulations: remove any documents or other records (including documents or other records in an electronic form) from 15 the manufacturing facility for the purpose of taking copies of the documents or records.
(c) (d) (3) An authorised person must provide— (a) (b) evidence of his or her authorisation to the person in charge of the manufacturing facility at the time when 20 the person first enters the facility, and at any later time at the request of the person in charge; and to the person in charge of the manufacturing facility a list of any items that have been removed from the facility.
25 (4) The Authority must ensure that— (a) any items (except a sample) that have been removed from the facility under this section are retained only for as long as is necessary to achieve the purpose for which they were removed; and any property (except a sample) that has been removed is maintained, cared for, and secured during the period of its removal.
(b) (5) An authorisation under subsection (1) must be in writing and specify— (a) (b) (c) a reference to this section; and the full name of the authorised person; and a statement of the powers conferred on that the author- ised person under this section; and 28 30 35 (6) 30 Psychoactive Substances Bill Part 2 cl 32 the reasons for the audit of the manufacturing facility.
(d) For the purposes of subsection (1), enter a manufacturing facility includes to go on, into, under, or over the manufactur- ing facility.
Authority may issue compliance notice The Authority may issue a compliance notice to any person whose manufacturing facility has been audited under section 29 that requires the person to do, or refrain from doing, within a specified time, a particular thing that affects the person’s compliance with the code of manufacturing practice or any 10 condition of the person’s licence to manufacture.
5 Subpart 2—Approved products Applications for approval Application for approval 31 (1) A person who is a New Zealand resident may apply to the Au- 15 thority for approval of a psychoactive product as an approved product.
The application must— (a) (2) (b) be made to the Authority in a form or manner approved by the Authority; and be accompanied by— (i) any particulars, information, documents, sam- ples, or other material required by the Authority and prescribed in the regulations; and the prescribed fee (if any).
(ii) 32 (1) (2) Authority may refuse to process application for approval The Authority may refuse to process an application for ap- proval of a product if the applicant does not provide an ap- plication that complies application does not comply with sec- tion 31.

If the Authority refuses to process an application under sub- section (1), the Authority must give the applicant written no- tice of the refusal and the reasons for it.
29 20 25 30 Part 2 cl 33 Psychoactive Substances Bill 33 (1) Authority may request further information, etc The Authority may request an applicant to supply further par- ticulars, information, documents, samples, or other material before deciding whether or not to approve a psychoactive product as an approved product.
5 (2) An application for approval of a product lapses if the requested further particulars, information, documents, samples, or other material is not supplied within— (a) (b) 30 days of the date of the request; or any further time that the Authority may allow by written 10 notice to the applicant.
34 (1) (2) Authority must protect confidential supporting information relating to application for approval This section applies if the Authority has received an applica- tion for approval of a psychoactive product under section 31 15 that includes confidential supporting information specified in, or given in relation to, the application.
The Authority— (a) must, during the protected period, take reasonable steps to ensure that the confidential supporting information is 20 kept confidential to the Authority; and (b) must not use that confidential supporting information for the purposes of deciding whether to grant any other application for approval of a psychoactive product.
(3) Despite subsection (2), the Authority may, during the pro- 25 tected period, disclose the confidential supporting information referred to in subsection (1)— (a) to 1 or more of the following: (i) (ii) (iii) (iv) the World Health Organization: the Food and Agriculture Organization: any regulatory agency of a WTO country: any person or organisation or class of persons or organisations approved by the regulations; and 30 (b) to 1 or more of the following persons or organisations if the Authority is satisfied that the person or organisation 35 will take reasonable steps to ensure that the confidential supporting information is kept confidential: (i) the advisory committee: 30 Psychoactive Substances Bill Part 2 cl 35 (ii) (iii) (iv) the Expert Advisory Committee on Drugs estab- lished under section 5AA of the Misuse of Drugs Act 1975: any adviser for the purpose of obtaining advice about the psychoactive substance to which the 5 confidential supporting information relates: a government department or statutory body for the purposes of the government department or statutory body.
In this section,— confidential supporting information includes— (a) (b) trade secrets; and information that has commercial value that would be, or would be likely to be, diminished by disclosure 10 protected period means, in relation to confidential supporting 15 information, the date that is 5 years after the application for approval to which that information relates was received by the Authority protected period means, in relation to confidential support- ing information, a period beginning on the date on which the 20 Authority receives that information and ending on the day that is 5 years after the date on which the Authority received the application for approval to which the information relates WTO country means a country that is a party to the Agree- ment establishing Establishing the World Trade Organization 25 adopted at Marrakesh on 15 April 1994.
Compare: 1981 No 118 ss 23A–23C Granting of approval Grounds for approving product The Authority may approve a psychoactive product as an ap- 30 proved product only if the Authority is satisfied that— the application relating to the product— (a) (i) complies with the requirements of section 31; and does not contain any materially false or mislead- 35 ing information; and (ii) (4) 35 31 Part 2 cl 36 Psychoactive Substances Bill (b) the degree of harm that the product poses to individuals using the product is no more than a low risk of harm.
Conditions of approval Conditions of approval The Authority may, when approving a psychoactive product, 5 impose conditions on the approval as the Authority thinks fit.

If the applicant asks the Authority for the reasons for imposing conditions under subsection (1), the Authority must, as soon as practicable, provide written reasons.
Refusal and revocation of approval 10 Refusal to grant approval If the Authority proposes to refuse to approve a psychoactive product as an approved product, the Authority must give the applicant— (a) written notice that clearly informs the applicant of the 15 grounds for the proposed refusal; and (b) a reasonable opportunity to make written submissions.
If, after considering any submissions provided by the appli- cant under subsection (1)(b), the Authority decides to refuse to approve the product, the Authority must, as soon as practic- 20 able, give the applicant written notice of— (a) (b) the decision and the reasons for it; and the applicant’s right to appeal the decision under sec- tion 43.
Revocation of approval The Authority may, at any time, by notice in the Gazette, re- voke an approval of a psychoactive product granted under sec- tion 35 if the Authority considers on reasonable grounds that the product poses more than a low risk of harm to individuals using the product.
If the Authority revokes an approval, the Authority— (a) must notify the person who applied for approval of the 25 30 product: 36 (1) (2) 37 (1) (2) 38 (1) (2) 32 Psychoactive Substances Bill Part 2 cl 41 (b) may issue a recall order in relation to for the product under section 78.
Compare: 1981 No 118 s 35 Offences relating to approvals Offence relating to application for approval 39 (1) A person commits an offence in respect of an application for 5 (b) approval of a psychoactive product if the person— (a) provides information that the person knows, or ought to have known, is materially false or misleading; or fails, without reasonable excuse, to provide any relevant 10 information relating to— (i) (ii) the ingredients of the product; or the effect of the product on individuals using the product.
(2) A person who commits an offence against subsection (1) is 15 liable on conviction to a term of imprisonment not exceeding 3 months or a fine not exceeding $500,000, or both.

40 Offence relating to breach of conditions of approval (1) A person commits an offence if, without reasonable excuse, the person imports, manufactures, or sells an approved product 20 in breach of any conditions of the approval imposed by the Authority under section 36.
(2) A person who commits an offence against subsection (1) is liable on conviction to a term of imprisonment not exceeding 3 months or a fine not exceeding $500,000, or both.

25 Register of approved products 41 (1) (1) Register of approved products The Authority must keep and maintain a register of approved products.

The Authority must keep and maintain a register of— (a) (b) approved products; and psychoactive products the Authority has refused to ap- prove.
30 (2) The purpose of the register is— 33 Part 2 cl 42 Psychoactive Substances Bill (a) to enable a member of the public— (i) to obtain information about approved products; and to confirm whether a psychoactive product is an approved product: 5 (ii) (b) to assist any person in the performance of the person’s functions or duties, or the exercise of the person’s powers, under this Act or any other enactment.
The Authority must publish the register of approved products on an Internet site maintained by, or on behalf of, the Author- 10 ity.

This section is subject to section 34.

Subpart 3—Appeals against Authority Psychoactive Substances Appeals Committee This section establishes the Psychoactive Substances Appeals 15 Committee.

The function of the appeals committee is to determine appeals against decisions of the Authority made by or under this Act.
The appeals committee must consist of 3 members, each ap- pointed by the Minister on any terms and conditions that the 20 Minister thinks fit.

(3) (4) 42 (1) (2) (3) (5) (4) One member of the appeals committee must be a lawyer (as defined in section 6 of the Lawyers and Conveyancers Act 2006) of not less than 7 years’ legal experience.
The appeals committee may, subject to any provision in the 25 regulations relating to the conduct of its proceedings of this Act or the regulations, regulate its own procedure.

In performing its functions or exercising its powers under this Act, the appeals committee must— act independently; and (a) comply with the principles of natural justice.
(b) (6) 30 Appeals against Authority’s decisions 43 (1) A person may appeal to the appeals committee against any decision of the Authority— (a) to refuse to approve a psychoactive product as an ap- 35 proved product: 34 Psychoactive Substances Bill Part 2 cl 43 (b) (c) (d) (e) (f) to impose a condition on the approval of a psychoactive product: to revoke an approval in relation to an approved prod- uct: to refuse to grant the person a licence: to impose a condition on a licence: to suspend or cancel a licence.
5 (1) A person who has applied for a licence under section 12 or been granted a licence under section 15 may appeal to the appeals committee against any decision of the Authority— 10 (a) (b) (c) to refuse to grant the person a licence: to impose a condition on the person’s licence: to suspend or cancel the person’s licence.
(1A) A person who has applied for the approval of a psychoactive product under section 31 may appeal to the appeals commit- 15 tee against any decision of the Authority— (a) (b) to refuse to approve the psychoactive product: to impose a condition on the approval of the psychoac- tive product: to revoke the approval of a psychoactive product: (c) (d) to issue a recall order for an approved product.
The appeal under subsection (1) or (1A) must be made within 60 days after the decision appealed against is given, or within such further period that the appeals committee may allow.

(2) (3) A decision of the Authority against which an appeal is lodged continues in force unless the appeals committee orders other- wise.

(4) An appeal under subsection (1) or (1A) is by way of rehear- ing.
(5) On hearing the appeal, the appeals committee may— (a) confirm, against: reverse, or modify the decision appealed (b) make any other decision that the Authority could have made.

(6) The appeals committee must not review— (a) (b) any part of a decision not appealed against; or any decision not appealed against at all.
35 20 25 30 35 Part 2 cl 44 Psychoactive Substances Bill 44 (1) (2) (3) 45 Appeals committee may refer appeals back for reconsideration The appeals committee may in any case, instead of determin- ing any appeal under section 43, direct the Authority to re- consider, either generally or in respect of any specific matter, 5 the whole or any part of the matter to which the appeal relates.
In giving any direction under subsection (1), the appeals committee must— (a) (b) advise the Authority of its reasons for so doing; and give to the Authority any other directions it thinks just 10 as to the whole or any part of the matter that is referred back for reconsideration.

In reconsidering any matter referred back to it under subsec- tion (1), the Authority must have regard to the appeals com- mittee’s directions and the appeals committee’s reasons for 15 giving the directions.
Further appeals Appeal to High Court on questions question of law An appeal against a determination of the appeals committee on a question of law only may be made to the High Court in 20 accordance with the rules of court.
Part 3 Control of approved products and other matters Subpart 1—Control of approved products Age restrictions 25 46 Restriction on persons under 18 years buying approved products or possessing psychoactive substance (including approved products) (1) A person under the age of 18 years commits an offence if the 30 person buys, or possesses any psychoactive substance, includ- ing an approved product.
Subsection (1) does not apply to a person who buys a psy- choactive substance or an approved product at the request of a constable acting in the course of his or her duties.

(2) 35 36 Psychoactive Substances Bill Part 3 cl 47 (3) A person who commits an offence against subsection (1) is liable on conviction to a fine not exceeding $500.

47 Restriction on selling approved products to persons under 18 years (1) A person must not sell an approved product to a person who 5 is under the age of 18 years.
(2) A person who contravenes subsection (1) commits an of- fence and is liable on conviction,— (a) in the case of an individual, to a fine not exceeding $5,000; and: in the case of a body corporate, to a fine not exceeding $10,000.
10 (b) (3) It is a defence to a charge under subsection (1) if the defen- dant proves that— (a) the sale to the person aged under 18 years occurred 15 without the defendant’s knowledge; and the defendant took reasonable precautions and exer- cised due diligence in order to prevent the sale.
(b) (4) Without limiting subsection (3), the defendant has a defence if the defendant proves that he or she— (a) had sighted an approved evidence of age document indi- cating that the person buying the approved product was aged 18 years or over; and reasonably believed that the approved evidence of age document— (i) (ii) was valid; and related to the person to whom the approved prod- uct was sold.
(b) 20 25 (3) It is a defence to a charge under subsection (2) if the defen- dant proves that he or she had reasonable grounds to believe 30 that the person to whom the approved product was sold was 18 years or over.
(4) Without limiting subsection (3), reasonable grounds exist for the purposes of that subsection if the defendant proves that, before or at the time of the sale of the approved product— (a) there was produced to the defendant a document pur- porting to be an approved evidence of age document 35 37 Part 3 cl 48 Psychoactive Substances Bill and the defendant believed on reasonable grounds that the document— (i) was in fact an approved evidence of age docu- ment; and related to the person to whom the approved prod- 5 uct was sold; and indicated that the person to whom the approved product was sold was 18 years or over: (ii) (iii) (5) (b) the defendant verified the person’s age using an ap- proved evidence of age system in the approved manner.
10 It is not a defence to a charge under subsection (1) (2) that— the person to whom the approved product was sold was (a) buying it for , or on behalf of, or as agent for, a person aged 18 years or over; or the defendant believed on reasonable grounds that the 15 person to whom the approved product concerned was sold was buying it for, or on behalf of, or as agent for, a person aged 18 years or over.
(b) Compare: 2005 No 81 ss 36, 37 48 Restriction on supplying approved products to persons under 18 years in public place (1) A person must not, in a public place (within the meaning of section 2 of the Summary Offences Act 1981), supply an ap- proved product to a person— (a) (b) with the intention that it be supplied (directly or indi- who is under the age of 18 years; or rectly) to a person who is under the age of 18 years.
(2) A person who contravenes subsection (1) commits an of- fence and is liable on conviction to a fine not exceeding $500 $2,000.

It is a defence to a charge under subsection (2) if the defen- dant proves that he or she had reasonable grounds to believe that the person to whom the approved product was supplied was aged 18 years or over.
(3) 20 25 30 (4) Without limiting subsection (3), the defendant has a defence 35 if the defendant proves that he or she— 38 Psychoactive Substances Bill Part 3 cl 48 (a) (b) had sighted an approved evidence of age document in- dicating that the person to whom the approved product was supplied was aged 18 years or over; and reasonably believed that the approved evidence of age document— (i) (ii) was valid; and related to the person to whom the approved prod- uct was supplied.
5 (4) Without limiting subsection (3), reasonable grounds exist for the purposes of that subsection if the defendant proves that, 10 before or at the time of the supply of the approved product,— there was produced to the defendant a document pur- (a) porting to be an approved evidence of age document and the defendant believed on reasonable grounds that the document— (i) was in fact an approved evidence of age docu- ment; and related to the person to whom the approved prod- uct was supplied; and indicated that the person to whom the approved 20 product was supplied was 18 years or over: the defendant verified the person’s age using an ap- proved evidence of age system in the approved manner.
(iii) (ii) (b) 15 (5) (6) (7) It is not a defence to a charge under subsection (2) that— (a) the person to whom the approved product was supplied 25 was acquiring the product for, on behalf of, or as an agent for a person aged 18 years or over; or the defendant believed on reasonable grounds that the person to whom the approved product was supplied was acquiring the product for, or on behalf of, or as an agent 30 for a person aged 18 years or over.
(b) Subsections (1) and (2) do not apply to a person who is acting in performance or exercise of a function, duty, or power under this Act or any other enactment.

Subsection (1)(2) applies irrespective of any liability that 35 may attach to a person who has sold the approved product concerned to any other person.
Compare: 1990 No 108 s 30AA(1), (5); 2005 No 81 ss 39, 40 39 Part 3 cl 49 Psychoactive Substances Bill 49 Restriction on employing persons under 18 years to sell approved products (1) A person must not employ a person under the age of 18 years to sell (including by Internet sale) an approved product on behalf of the person.

5 (2) A person who contravenes subsection (1) commits an offence and is liable on conviction to a fine not exceeding $2,000.
Other restrictions, prohibitions, and requirements relating to approved products 50 (1) Restrictions and prohibitions on place of sale of approved products This section applies to an approved product to which a pre- scribed restriction or prohibition relating to place of sale ap- plies.

(2) A person must not sell an approved product from a place or an Internet site that does not comply with the prescribed restric- tion or prohibition.
(3) A person who contravenes subsection (2) commits an of- fence and is liable on conviction,— (a) in the case of an individual, to a fine not exceeding $5,000; and in the case of a body corporate, to a fine not exceeding $10,000.
Compare: 2005 No 81 s 41 (b) 50 Prohibitions and restrictions on place of sale of approved products (1) A person must not sell an approved product from any of the following: (a) (b) (c) (d) a shop commonly thought of as a dairy: a shop commonly thought of as a convenience store: a grocery store or a supermarket: any premises where the principal business carried on is— (i) the sale of automotive fuels; or 40 10 15 20 25 30 35 Psychoactive Substances Bill Part 3 cl 52 (ii) the repair and servicing of motor vehicles and the sale of automotive fuels: any premises where alcohol is sold or supplied under a licence issued under the Sale and Supply of Alcohol Act 2012: any premises that are not a fixed permanent structure, for example, a tent or marquee: any vehicle or other conveyance (for example, a mobile street cart): any other place or premises specified or described in the 10 regulations.
5 (e) (f) (g) (h) (2) A person who contravenes subsection (1) commits an of- fence and is liable on conviction,— (a) in the case of an individual, to a fine not exceeding $10,000: in the case of a body corporate, to a fine not exceeding $50,000.

Compare: 2005 No 81 s 41 (b) 51 (1) Restrictions and requirements relating to Internet sales of approved products This section applies to an offer of an approved product for Internet sale to which a prescribed restriction or prescribed requirement applies.
(2) A person must not offer an approved product for Internet sale 15 20 in a way that does not comply with the prescribed restriction 25 or prescribed requirement.

(3) A person who contravenes subsection (2) commits an of- fence and is liable on conviction,— (a) in the case of an individual, to a fine not exceeding $5,000; and in the case of a body corporate, to a fine not exceeding $10,000.
30 (b) 52 Prohibition on free-of-charge distribution and rewards of approved products (1) A manufacturer, importer, distributor, wholesaler, or retailer 35 of an approved product must not— (a) distribute an approved product free of charge; or 41 Part 3 cl 52 Psychoactive Substances Bill (b) (c) supply an approved product to a person free of charge for the purpose of subsequent distribution; or in the case of a retailer, supply an approved product to a person free of charge for the purpose of that retailer’s business.
5 (2) A manufacturer, importer, distributor, wholesaler, or retailer of an approved product must not— (a) (b) offer any gift or cash rebate, or the right to participate in any contest, lottery, or game, to the purchaser of an approved product in consideration for the purchase of 10 that approved product, or to any person in consideration for the provision of evidence of a purchase of that kind; or offer, to any retailer, a gift or cash rebate, or the right to participate in any contest, lottery, or game, as an in- 15 ducement or reward in relation to— (i) the purchase or sale of an approved product by that retailer; or the advertising of an approved product inside that retailer’s place of business; or the display of an approved product in a particular part of that retailer’s place of business.
(ii) (iii) (3) Subsection (2) does not apply to a payment or reward to any person who purchases or attempts to purchase an approved product— (a) with the consent of the Authority, the Commissioner of Police, or some other person authorised for the purpose by the Authority or the Commissioner; and for the purpose of monitoring compliance with the pro- visions of this Part Act.
(b) (4) A person who contravenes subsection (1) or (2) commits an offence and is liable on conviction,— (a) in the case of an individual, to a fine not exceeding $5,000; and: in the case of a body corporate, to a fine not exceeding 35 $10,000.
Compare: 2005 No 81 s 42 (b) 42 20 25 30 Psychoactive Substances Bill Part 3 cl 52A 52A Prohibition on sponsoring activity involving use of trade mark, etc, of approved product (1) A person must not sponsor an organised activity that is to take place, is taking place, or has taken place, in whole or in part, in New Zealand, and that involves the use, in the name of that 5 activity, or on or through any thing other than an approved product, of all or any of the following: an approved product trade mark: (a) all or any part of a company name included in an ap- (b) proved product trade mark: 1 or more words, logos, colours, shapes, sounds, smells, or other elements of an approved product trade mark that, as those 1 or more elements are used in the name, or on or through the thing, are likely to cause a person exposed to the name or thing to believe that the 1 or 15 more elements are used in, on, or through it only or mainly for the purpose of advertising the product.
(c) 10 (2) A person sponsors an activity for the purposes of subsection (1) if the person does all or any of the following: (a) organises or promotes, before the activity is to take 20 place, or during the time that it takes place, some or all of the activity: (b) makes, before the activity is to take place, or during or after the time that it takes place, any financial or non-fi- nancial contribution towards some or all of the activity: 25 (c) makes, before the activity is to take place, or during or after the time that it takes place, any financial or non- financial contribution to any other person in respect of the organisation or promotion, by that other person, of, or the participation, by that other person, in, some or all 30 of the activity.
(3) A person who contravenes subsection (1) commits an of- fence and is liable on conviction,— (a) in the case of an importer, manufacturer, or wholesaler of an approved product, to a fine not exceeding $50,000: 35 in the case of a retailer of an approved product, to a fine not exceeding $10,000.
(b) Compare: 1990 No 108 s 25 43 Part 3 cl 53 Psychoactive Substances Bill 53 Prohibitions, restrictions, and requirements relating to advertising approved products (1) A person must not advertise an approved product— (a) (b) (c) (d) on television or on radio; or in any newspaper or other periodical publication printed 5 and published in New Zealand; or on an Internet site (other than an Internet site maintained for the primary purpose of the Internet sale of approved products); or on or in any other medium prescribed in the regulations.
10 (2) A person must not advertise an approved product to which a prescribed restriction or prescribed requirement relating to advertising applies in a way that does not comply with that restriction or requirement.

(3) A person who contravenes subsection (1) or (2) commits an 15 offence and is liable on conviction,— (a) in the case of an importer or a manufacturer of a psy- choactive substance, to a fine not exceeding $50,000; and in the case of any other person, to a fine not exceeding 20 $10,000.
Compare: 2005 No 81 s 43 (b) 53 Prohibitions, restrictions, and requirements relating to advertising of approved products (1) A person must not advertise an approved product— 25 (a) (b) (c) (d) on television or on radio; or in any newspaper or other periodical publication printed and published in New Zealand; or on an Internet site (except an Internet site maintained for the primary purpose of the Internet sale of approved 30 products); or on or in any other medium prescribed in the regulations.
(a) (b) (2) A person must not advertise an approved product— in a way that conveys that the product is safe: in a way that contain themes that are, or are likely to be, 35 particularly appealing to minors: where the advertising is accompanied by incentives that are designed to encourage persons to buy an approved (c) 44 Psychoactive Substances Bill Part 3 cl 53A product (for example, a promotional gift or the free-of- charge supply of an approved product).
(3) Advertising for an approved product (except a product sold by Internet sale)— (a) may appear only in premises where the approved prod- 5 uct is sold; and (b) must be confined to the inside of the premises; and (c) must not be easily visible or audible from outside the premises; and 15 20 25 (d) must be limited to material that communicates objective 10 information about the product, including (without limi- tation)— (i) the active ingredients of the product and the ap- propriate quantitative ingredients of each active ingredient: the price of the product.
(ii) (4) A person must not advertise an approved product in a way that does not comply with subsection (3).

(5) A person who contravenes subsection (1), (2), or (4) com- mits an offence and is liable on conviction,— (a) in the case of an importer, manufacturer, or wholesaler of an approved product, to a fine not exceeding $50,000: in the case of a retailer of an approved product, to a fine not exceeding $10,000.
(b) Compare: 2005 No 81 s 43 53A Restriction on retailer’s name using words, expressions, (1) (2) or trademarks etc, associated with approved products This section applies to a retailer of an approved product.
The retailer of an approved product may display the retailer’s name or trade name at the outside of the retail premises from 30 which approved products are sold but only if that name is not and does not include either or both of the following: (a) any word or expression signifying that any approved product is available inside the premises for purchase: the trade mark of an approved product or the company 35 name of an approved products manufacturer.
(b) 45 Part 3 cl 54 Psychoactive Substances Bill (3) A person who contravenes subsection (1) commits an offence and is liable on conviction to a fine not exceeding $10,000.

54 Restrictions and requirements relating to labelling approved products 5 (1) A person must not sell or supply an approved product to which a prescribed restriction or prescribed requirement relating to labelling applies with a label that does not comply with that restriction or requirement.
(2) A person who contravenes subsection (1) commits an of- 10 fence and is liable on conviction,— (a) in the case of an individual, to a fine not exceeding $5,000: in the case of a body corporate, to a fine not exceeding $10,000.

Compare: 2005 No 81 s 44 (b) 15 54 Restrictions and requirements relating to labelling of approved products (1) A label for an approved product must not be designed in such a manner, way, medium, or form to appeal, or be likely to appeal, 20 to minors.
(2) A label for an approved product must include the following information in a prominent position on the label: (a) 25 a list of the active ingredients of the product and the quantitative particulars of each active ingredient; and the appropriate health warning relating to the product; and the contact details of the importer, manufacturer, whole- saler, or retailer of the product; and the telephone number of the National Poisons Centre 30 information service or any other telephone service pre- scribed in the regulations: any other information prescribed by the regulations.
(b) (c) (d) (e) (3) A person must not sell an approved product with a label that does not comply with subsection (1) or (2).

35 46 Psychoactive Substances Bill Part 3 cl 56 (2) A person who contravenes subsection (1) or (2) commits an offence and is liable on conviction,— (a) in the case of an individual, to a fine not exceeding $5,000: in the case of a body corporate, to a fine not exceeding 5 $10,000.
Compare: 2005 No 81 s 44 (b) 55 Restrictions and requirements relating to packaging approved products (1) A person must not sell or supply an approved product to which 10 a prescribed restriction or prescribed requirement relating to packaging applies in a package that does not comply with that restriction or requirement.
(2) A person who contravenes subsection (1) commits an of- fence and is liable on conviction,— (a) in the case of an individual, to a fine not exceeding $5,000; and: in the case of a body corporate, to a fine not exceeding $10,000.

Compare: 2005 No 81 s 45 (b) 15 20 Requirement relating to health warnings 56 (1) A person must not sell or supply an approved product to which a prescribed requirement relating to a health warning applies without a health warning that complies with that requirement.
(1) A person must not sell an approved product without an appro- 25 priate health warning relating to the product on the label.

(1A) For the purposes of subsection (1), the health warning must contain the information prescribed in the regulations.

(2) A person who contravenes subsection (1) commits an of- fence and is liable on conviction,— (a) in the case of an individual, to a fine not exceeding $5,000; and: in the case of a body corporate, to a fine not exceeding $10,000.
Compare: 2005 No 81 s 46 (b) 30 35 47 Part 3 cl 57 Psychoactive Substances Bill Requirement to display signage 57 (1) A person must not sell an approved product to which a pre- scribed requirement relating to signage applies without dis- playing signage that complies with that requirement.

(2) A person who contravenes subsection (1) commits an 5 offence and is liable on conviction to a fine not exceeding $2,000.
Compare: 2005 No 81 s 47 58 Restrictions and requirements relating to storage and display of approved products (1) A person who sells or supplies an approved product to which a prescribed restriction or prescribed requirement relating to storage or display applies must not store or display the product in a way that does not comply with that restriction or require- ment.
10 15 (2) A person who contravenes subsection (1) commits an of- fence and is liable on conviction,— (a) in the case of an individual, to a fine not exceeding $5,000; and: in the case of a body corporate, to a fine not exceeding 20 $10,000.
Compare: 2005 No 81 s 49 (b) 59 Restrictions and requirements relating to disposal of psychoactive substances (1) An importer, manufacturer, or seller of a psychoactive sub- 25 stance to which a prescribed restriction or prescribed require- ment relating to disposal applies must not dispose of the sub- stance in a way that does not comply with that restriction or requirement.
(2) A person who contravenes subsection (1) commits an of- 30 fence and is liable on conviction,— (a) in the case of an individual, to a fine not exceeding $5,000; and: in the case of a body corporate, to a fine not exceeding $10,000.
35 (b) 48 Psychoactive Substances Bill Part 3 cl 61 60 Requirement to keep records relating to psychoactive substances and approved products (1) A person who, in the course of any business, imports, pre- pares, processes, manufactures, packs, stores, carries, deliv- ers, or sells any approved product holds a licence under this 5 Act in respect of psychoactive substances or approved prod- ucts must— (a) keep, in some place of security at that person’s place of business, any records required to be kept by that person by the regulations; and retain those records for the period of time prescribed in the regulations.
(b) 10 (2) A person who fails to comply with subsection (1) commits an offence and is liable on conviction,— (a) in the case of an individual, to a fine not exceeding 15 $5,000; or: in the case of a body corporate, to a fine not exceeding $10,000.
Compare: 2005 No 81 s 53 (b) Prohibitions and restrictions on convicted persons selling approved products 20 61 (1) (2) Prohibitions and restrictions on convicted persons selling approved products This section applies if a person has been convicted of any of- fence under this Act and, within 2 years of being sentenced for 25 that offence, the person is convicted of another offence under this Act.
In imposing the sentence for the second or subsequent offence, the court may (in addition to any sentence it might impose and any other order in the nature of a penalty it might make) make 30 an order— (a) prohibiting any or all either or both of the following: (i) the sale of any approved products or approved products of a specified kind by or on behalf of the person (including by Internet sale): the sale of any approved products or approved products of a specified kind at the place or on 35 (ii) 49 Part 3 cl 61A Psychoactive Substances Bill the premises at which the second or subsequent offence occurred: (b) imposing any conditions or restrictions (or both) the court thinks fit on any or all either or both of the fol- lowing: (i) the sale of approved products by or on behalf of the person (including by Internet sale): the sale of approved products at the place or on the premises at which the second or subsequent offence occurred.
(ii) 5 10 (3) The order must state— (a) (b) the date that it takes effect (which may be the date on which it is made or a later date); and the date that it expires (which must be a date at least 4 weeks and not more than 3 months after the date that it 15 takes effect).

(4) A person who contravenes an order made under subsection (2) commits an offence and is liable on conviction to a fine not exceeding $50,000.
Compare: 1990 No 108 s 30AB; 2005 No 81 s 54 Local approved products policies 61A Territorial authority may have local approved products policy (1) Any territorial authority may have a policy relating to the sale of approved products within its district.
(2) A local approved products policy may— (a) (b) (c) provide differently for different parts of its district; and apply to only part (or 2 or more parts) of its district; and apply differently to premises for which licences of dif- ferent kinds are held or have been applied for.

(3) No territorial authority is required to have a local approved products policy.
61B Territorial authorities may adopt joint local approved 20 25 30 products policy Two or more territorial authorities may adopt a single local 35 approved products policy for their districts.

(1) 50 Psychoactive Substances Bill Part 3 cl 61D (2) If subsection (1) applies, the 2 or more territorial authorities are to be treated as if they were a single territorial authority with a single district.
61C Content of local approved products policy A local approved products policy may include policies on any 5 or all of the following matters: (a) location of premises from which approved products may be sold by reference to broad areas within the district: location of premises from which approved products 10 may be sold by reference to proximity to premises or facilities of a particular kind or kinds within the district (for example, kindergartens, early childhood centres, schools, places of worship, or other community facil- ities).
15 (b) 61D Adoption and review of local approved products policy (1) A territorial authority that wishes to have a local approved products policy must adopt the policy in accordance with the special consultative procedure in section 83 of the Local Gov- ernment Act 2002.

20 (2) A local approved products policy may be amended or replaced only in accordance with the special consultative procedure, and this section applies to that amendment or replacement.
(3) A territorial authority must, as soon as practicable after adopt- ing or amending a local approved products policy, provide a 25 copy of the policy to the Authority.

(4) A territorial authority must complete a review of a local approved products policy within 5 years after the policy is adopted and then at intervals of not more than 5 years.

(5) A local approved products policy does not cease to have effect 30 because it is due for review or is being reviewed.
51 Part 3 cl 62 Psychoactive Substances Bill Subpart 2—Offences relating to psychoactive substances that are not approved products 62 Offences relating to psychoactive substance that is not approved product 5 (1) A person commits an offence if the person, without reasonable excuse,— (a) (b) (c) sells or supplies a psychoactive substance that is not an approved product to any person; or offers to sell or supply a psychoactive substance that is 10 not an approved product to any person; or possesses a psychoactive substance that is not an ap- proved product with the intent to sell or supply the psy- choactive substance to any person.
(2) Subsection (1) does not apply to a person who holds a licence 15 to sell psychoactive substances that are not approved products that applies to the psychoactive substance.

(3) A person who commits an offence against subsection (1) is liable on conviction,— (a) in the case of an individual, to a term of imprisonment 20 not exceeding 2 years: in the case of a body corporate, to a fine not exceeding $500,000.
(b) 63 Offence relating to personal possession of psychoactive substance that is not approved product (1) A person commits an offence if the person has a psychoactive substance that is not an approved product in his or her posses- sion.

Subsection (1) does not apply to a person who holds a licence in respect of the psychoactive substance.

(2) (3) A person who commits an offence against subsection (1) is liable on conviction to a fine not exceeding $500.
Infringement offences Interpretation In this subpart,— 64 52 25 30 35 65 66 (1) Psychoactive Substances Bill Part 3 cl 66 in relation to an infringement offence, infringement fee, means an amount not exceeding $500 prescribed for the purposes of this section in the regulations infringement offence means an offence against— (a) section 46 (which relates to a person under the age of 5 18 years buying an approved product): section 48 (which relates to supplying an approved product to a person under the age of 18 years): section 63 (which relates to personal possession of a psychoactive substance that is not an approved prod- 10 uct).
(b) (c) Proceedings for infringement offence A person who is alleged to have committed an infringement offence may either— (a) be proceeded against by the filing of a charging docu- 15 ment under section 14 of the Criminal Procedure Act 2011; or be served with an infringement notice as provided for in section 66.
(b) Infringement notices If an enforcement officer or a constable observes a person com- mitting an infringement offence, or has reasonable grounds to believe that such an offence is being or has been committed by the person, the officer or constable may serve an infringement notice in respect of the offence on the person.
(2) An enforcement officer or a constable (not necessarily the per- son who issued the notice) may deliver the infringement notice (or a copy of it) to the person alleged to have committed an infringement offence personally or by post addressed to that person’s last known place of residence.

(3) An infringement notice (or a copy of it) sent to a person under subsection (2) is to be treated as having been served on that person when it was posted.
(4) An infringement notice must be in the prescribed form and must contain the following particulars: 53 20 25 30 35 Part 3 cl 67 Psychoactive Substances Bill (a) (b) (c) (d) (e) (f) (g) such details of the alleged infringement offence as are sufficient fairly to inform a person of the time, place, and nature of the alleged offence; and the amount of the infringement fee; and the address of the place at which the infringement fee 5 may be paid; and the time within which the infringement fee must be paid; and a summary of the provisions of section 21(10) of the Summary Proceedings Act 1957; and a statement that the person served with the notice has a right to request a hearing; and a statement of what will happen if the person served with the notice neither pays the infringement fee nor requests a hearing; and any other particulars that may be prescribed.
10 15 (h) If an infringement notice has been issued under this section, the procedure under section 21 of the Summary Proceedings Act 1957 may be used in respect of the offence to which the infringement notice relates and, in that case, the provisions of 20 that section apply with all necessary modifications.

Payment of infringement fees All infringement fees paid in respect of infringement offences must be paid into a Crown bank account.
(5) 67 Subpart 3—Enforcement Enforcement officers 25 68 (1) Enforcement officers The Authority may appoint enforcement officers to enforce this Act.

(2) A person appointed as an enforcement officer may be— 30 (a) (b) a person appointed by name; or the holder for the time being of a particular position.
(3) A person appointed under subsection (1) is not by virtue of that appointment alone— (a) an officer or employee of the Public Service; or 35 54 Psychoactive Substances Bill Part 3 cl 69 (4) (5) (b) a person to whom the State Sector Act 1988 or the Gov- ernment Superannuation Fund Act 1956 applies.
The Authority must not appoint a person under subsection (1) unless the Authority is satisfied that the person is suitably qualified and trained and is a fit and proper person for appoint- 5 ment as an enforcement officer.
The Authority may do any or all of the following: (a) appoint persons to enforce only some of the provisions of this Act: appoint persons to exercise only some of the powers 10 conferred on enforcement officers by this Act: appoint persons subject to limitations or restrictions on their exercise of enforcement powers.

(b) (c) (6) An enforcement officer must have an instrument of ap- pointment identifying the holder as an enforcement officer 15 appointed under this section.
(7) An enforcement officer’s instrument of appointment must state— (a) that the officer is appointed to enforce— (i) (ii) (iii) all the provisions of this Act; or only specified provisions of this Act; or all the provisions of this Act except certain spe- cified provisions; and (b) (c) that the officer is appointed to exercise— all enforcement powers; or (i) only specified enforcement powers; or (ii) all enforcement powers other than except certain (iii) specified powers; and all limitations and restrictions (if any) that are imposed on the person’s exercise of enforcement powers under 30 subsection (5)(c).
20 25 Compare: 1990 No 108 s 14; 2005 No 81 s 55 Enforcement powers 69 Warrantless power to enter and search (1) An enforcement officer or a constable may enter a place if 35 the enforcement officer or constable has reasonable grounds to believe that— 55 Part 3 cl 69 Psychoactive Substances Bill (a) (b) there is a psychoactive substance at the place; and an offence has been, is being, or will be committed against any of section 24, 25, or 62 in relation to that substance in that place.
(2) Subsection (1) does not apply to a dwellinghouse or other 5 residential accommodation.
(3) An enforcement officer or a constable who enters a place under subsection (1) may— (a) use any force in respect of the place that is reasonable for the purposes of carrying out the search and any law- 10 ful seizure: inspect the place: take photographs or videos of the place: copy any documents or records (of any kind) relating to a psychoactive substance: seize anything that is the subject of the search or any- thing else that may be lawfully seized: inspect any article or material (for example, advertising material and display signage) in relation to which a re- striction or requirement is imposed by or under this Act.
20 15 (4) Subsection (2) does not prevent an enforcement officer or a constable from entering a dwellinghouse or other residential accommodation and exercising the powers referred to in sub- section (3)— (a) under authority conferred by or under an enactment (in- 25 cluding another provision of this Act); or (b) with the occupier’s consent.
(5) An enforcement officer or constable who is exercising powers under this section in respect of or in a place, must,— (a) if a person in charge of the place is present on initial 30 entry, identify himself or herself to the person in charge as an enforcement officer or a constable; and in the case of an enforcement officer who is asked by a person in charge to do so, produce to the person evi- dence of identity, his or her instrument of appointment 35 as an enforcement officer, or both; and explain to the person in charge that the authority to enter is under this section.
(b) (c) (d) (e) (f) (b) (c) Compare: 2005 No 81 s 56 56 Psychoactive Substances Bill Part 3 cl 69A 69 Warrantless power to enter and search (1) A constable may enter and search a place (except private premises), vehicle, or other thing without a warrant if the constable has reasonable grounds— (a) (b) (c) (d) to believe that it is not practicable to obtain a warrant; 5 and to believe that there is a psychoactive substance in or on the place, vehicle, or other thing; and to suspect that in or on the place, vehicle, or other thing an offence against any of section 24, 25, or 62 has 10 been, is being committed, or is about to be committed in respect of that substance; and to believe that, if the entry and search is not carried out immediately, evidential material relating to the sus- pected offence will be destroyed, concealed, altered, or 15 damaged.
(2) The provisions of Part 4 (except subpart 3) of the Search and Surveillance Act 2012 apply.

Compare: 2012 No 24 s 20 69A Power to enter and search retail premises (1) An enforcement officer or a constable may at any reasonable time enter and inspect any retail premises (or any part of any premises) to ascertain whether the licence holder is comply- ing with the provisions of this Act and the conditions of the licence.
For the purposes of subsection (1), an enforcement officer or a constable may— (a) (2) 20 25 require the production of any licence or records that is required by this Act to be kept, and examine and make copies of them; and require the licence holder or any person appearing to be in charge of the retail premises (or any part of the premises) to provide any information or assistance rea- sonably required by an enforcement officer or a con- stable relating to any matter within the duties of the li- 35 cence holder or the person in charge.
30 (b) (3) A person must not, without reasonable excuse,— 57 Part 3 cl 70 Psychoactive Substances Bill (a) (b) refuse or fail to admit to any retail premises any en- forcement officer or constable who demands entry under subsection (1); or delay unreasonably in admitting to any retail premises any enforcement officer or constable who demands en- 5 try under subsection (1).
(4) The licence holder or any other person appearing to be in charge of the retail premises (or any part of the premises) must not, without reasonable excuse, refuse or fail— (a) to produce the licence or any records when required to 10 do so under subsection (2)(a); or to provide any assistance or information when required to do so under subsection (2)(b).

(b) (5) A person who contravenes subsection (3) or (4) commits an offence and is liable on conviction to a fine not exceeding 15 $2,000.
Compare: 2012 No 120 s 267 70 Warranted power to enter and search (1) An issuing officer (within the meaning of section 3(1) of the Search and Surveillance Act 2012) may issue a search warrant 20 in relation to a place, vehicle, or other thing if, on application made by an enforcement officer or a constable in the manner provided in subpart 3 of Part 4 of that Act, he or she is satisfied that there are reasonable grounds— (a) to suspect that an offence has been, is being, or will 25 committed, or is about to be committed against this Act; and to believe that the search will find evidential material in respect of the offence in or on the place, vehicle, or other thing.
(b) 30 (2) The provisions of Part 4 of the Search and Surveillance Act 2012 apply.

(3) Despite subsection (2), sections 118 and 119 of the Search and Surveillance Act 2012 apply only in respect of a constable.
58 Psychoactive Substances Bill Part 3 cl 71 71 (1) (2) Power to demand information where offence against section 47 suspected Subsection (2) applies to an enforcement officer or a con- stable who, at any time, has reasonable cause grounds to sus- pect that within the previous 14 days an approved product was 5 sold to a person under the age of 18 years at a place in contra- vention of section 47.
The enforcement officer or constable may,— (a) if he or she has reasonable grounds to believe that the person who sold the approved product is at the place, 10 require that person to give the enforcement officer or constable his or her name and address and date of birth; or if the person who is believed to have sold the approved product is not present at the place, require any other per- 15 son appearing to be in charge of the place (or any part of the place) to give the officer or constable the name and address and date of birth of the person who the en- forcement officer or constable has reasonable grounds to believe sold the product.
20 (b) (3) An enforcement officer or a constable who suspects that a per- son referred to in subsection (2)(a) is under the age of 17 years must not require that person to give the officer or con- stable his or her name and address and date of birth unless— (a) (b) there is no other person who appears to be in charge of 25 the place; or there is another person who appears to be in charge of the place, but the enforcement officer or constable sus- pects that the that other person is also under the age of 17 years.
30 (4) (5) If an enforcement officer or a constable suspects that a person referred to in subsection (2)(b) is under the age of 17 years, the enforcement officer or constable must not require that per- son to give the name and address and date of birth of any other person if the other person is in the place concerned and appears 35 to be of or over the age of 17 years.
The powers conferred by this section must be used only for, and only to the extent necessary for, finding out the name and address of (or, if the address is not within the knowledge of the 59 Part 3 cl 72 Psychoactive Substances Bill person asked, the name and any other identifying information within the that person’s knowledge and relating to) a person the enforcement officer or constable believes to have sold an approved product to a person under the age of 18 years.
Compare: 2005 No 81 s 58 5 72 Power to demand information and arrest where offence against section 63 suspected (1) A constable who has reasonable cause to suspect that a person has committed, is committing, or is attempting to commit an offence against section 63 may require the person to provide 10 particulars of his or her full name and address and date of birth.
(2) A constable who believes on reasonable grounds that any par- ticulars provided under subsection (1) are false may require the person concerned to provide satisfactory evidence of the particulars.

If a person, without reasonable excuse, refuses or fails to pro- vide any particulars or evidence when required to do so by a constable under this section, and persists in refusing or failing after being cautioned by the constable, he or she may be ar- rested, without warrant, by any constable.
(3) 15 20 Forfeiture 73 (1) A constable may seize and remove a psychoactive substance or an approved product if the constable has reasonable grounds to believe that an offence against this Act has been, is being, or will be committed in respect of the psychoactive substance 25 or approved product.
If a person is found guilty of an offence against this Act in respect of a psychoactive substance or an approved product seized under subsection (1), the psychoactive substance or approved product is forfeit to the Crown.
(2) 30 (3) A psychoactive substance or an approved product is forfeit to the Crown if— (a) it is seized by the Police from a person under the age of 18 years who is issued with an infringement notice in respect of an offence against section 46, 48 or 63; 35 and 60 Psychoactive Substances Bill Part 3 cl 75 (4) the infringement fee is later paid.
(b) If a person is acquitted of an offence against this Act, the psy- choactive substance or approved product seized under this sec- tion in relation to the offence— (a) may be collected from the relevant police station within 5 28 days of the acquittal by or on behalf of the person or, if the person is under the age of 18 years, by the person’s parent or guardian; and if not collected within that time, may be disposed of in any manner the Commissioner of Police directs.
10 (b) Offences relating to enforcement Obstructing enforcement officer or constable 74 (1) A person commits an offence if the person— (a) wilfully obstructs an enforcement officer or a constable performing any function or duty or exercising any 15 powers under this Act; or (b) when required under section 71 or 72 to give informa- tion, intentionally fails to comply with that requirement or provides any information that the person knows, or ought to have known, is false or misleading in any ma- 20 terial respect.
(2) A person who commits an offence against subsection (1) is liable on conviction to a term of imprisonment not exceeding 3 months or a fine not exceeding $500.
Compare: 2005 No 81 s 60 25 International controlled delivery of psychoactive substances 75 International controlled delivery of psychoactive substances (1) An enforcement officer, a constable, a Customs officer, or an 30 officer of a relevant law enforcement agency with which there is an agreement of the kind referred to in subsection (3)(a) who is involved in an international controlled delivery— (a) does not commit an offence under this Act by reason of taking part in the international controlled delivery; and 35 61 Part 3 cl 75A Psychoactive Substances Bill (b) unless he or she is acting in bad faith, is not subject to any criminal or civil liability as a result of taking part in the international controlled delivery.
(2) (3) Subsection (1) does not affect the liability of any person charged with an offence under this Act.
In this section, international controlled delivery means al- lowing a psychoactive substance to pass through or into the territory of 1 or more countries— (a) with the agreement of the relevant law enforcement agencies of the countries which the substance is to pass 10 through or into; and 5 (b) with a view to identifying persons involved in the com- mission of an offence under this Act that would, if done or committed in New Zealand, be an offence under this Act.
(b) with a view to identifying persons involved in— (i) (ii) the commission of an offence under this Act; or an act that would, if done or committed in New Zealand, be an offence under this Act.
Compare: 1978 No 65 s 12D 75A Liability of principals and directors (1) If a person (the agent) commits an offence against this Act while acting as an agent (including a contractor) or employee of another person (the principal), the principal commits the same offence, if it is proved— (a) that the act that constituted the offence took place with his or her authority, permission, or consent; or that he or she knew, or could reasonably be expected to have known, that the offence was to be or was being committed and failed to take all reasonable steps to pre- 30 vent or stop it.
(b) If a body corporate commits an offence against this Act, every director and every person concerned in the management of the body corporate commits the same offence, if it is proved— (a) that the act that constituted the offence took place with 35 his or her authority, permission, or consent; or that he or she knew, or could reasonably be expected to have known, that the offence was to be or was being (b) (2) 62 15 20 25 76 (1) (2) Psychoactive Substances Bill Part 3 cl 77 committed and failed to take all reasonable steps to pre- vent or stop it.
Compare: 2012 No 118 s 40 Subpart 4—Other powers of Authority 5 Authority may declare recognised authorities The Authority may, by notice in the Gazette, declare a person or body to be a recognised authority— (a) for a specified purpose under this Act or a provision of this Act; and for a specified period or not.
(b) Before declaring a person or body to be a recognised authority for a specified purpose under this Act or a provision of this Act, the Authority must be satisfied that the person or body (whether in New Zealand or overseas)— (a) makes decisions in respect of psychoactive substances 15 that require the person or body to assess conformity against, or compliance with, criteria that are equivalent to or more robust than those under this Act; or is engaged in an area of work that requires the person or body to assess conformity against, or compliance with, 20 criteria that are equivalent to or more robust than those under this Act.
(b) 10 (a) makes decisions, or is engaged in an area of work, in (b) respect of psychoactive substances; and is required, in making those decisions or engaging in 25 that area of work, to assess conformity or compliance with criteria that are equivalent to or more robust than those under this Act.

77 (1) Approved laboratories The Authority may from time to time, by notice in the Gazette, 30 approve a laboratory for the purposes of this Act.
(2) An approval under subsection (1) may be granted on the terms and conditions (if any) that the Authority thinks fit and that are specified in the notice approving the laboratory.

Compare: 1975 No 116 s 5A 35 63 Part 3 cl 78 Psychoactive Substances Bill 78 (1) (2) Recall orders The Authority may issue an order of the kind referred to in subsection (2) (a recall order) to— (a) the importer or manufacturer of an approved product; or a retailer of an approved product that is known to the Authority.
(b) 5 The recall order is an order directing the recall of an approved product or requiring the destruction of an approved product because the Authority has reasonable grounds to believe that 10 the approved product poses more than a low risk to individuals using the product.
(3) On receipt of a recall order, the importer or manufacturer of the approved product must— (a) (c) (b) advise the Authority of the details of the manner in 15 which that person intends to comply with the order; and advise the Authority in writing when the recall order has been complied with; and advise any retailer of the approved product known to the importer or manufacturer that a recall order has been 20 issued in respect of the approved product.
(4) A person who fails to comply, in any respect, with a recall order issued under subsection (1) or any requirement of sub- section (3) commits an offence and is liable on conviction,— (a) in the case of a retailer of an approved product, to a fine 25 not exceeding $100,000: in the case of an importer or manufacturer of an ap- proved product, to a fine not exceeding $500,000.
(b) Compare: 2005 No 81 s 52 78 (1) Recall orders The Authority may issue a recall order to the importer, manu- facturer, wholesaler, or retailer of an approved product.

(2) On receipt of a recall order, the importer, manufacturer, whole- 30 saler, or retailer of the approved product must— (a) advise the Authority of the details of the manner in 35 which that person intends to comply with the order; and advise the Authority in writing when the recall order has been complied with.
(b) 64 Psychoactive Substances Bill Part 3 cl 79 (3) An importer, manufacturer, wholesaler, or retailer who fails to comply, in any respect, with a recall order issued under sub- section (1) or any requirement under subsection (2) com- mits an offence and is liable on conviction,— (a) (b) in the case of a retailer, to a fine not exceeding $100,000: 5 in the case of an importer, manufacturer, or wholesaler to a fine not exceeding $500,000.
(4) In this section, recall order means an order directing the recall of an approved product or requiring the destruction of an ap- proved product because the Authority has reasonable grounds 10 to believe that the approved product poses more than a low risk to individuals using the product.

Compare: 2005 No 81 s 52 Export certificates 79 (1) A person may apply to the Authority for an export certificate 15 in relation to an approved product.
(2) An application for an export certificate must— (a) (b) be made to the Authority in a form or manner approved by the Authority; and be accompanied by the prescribed fee (if any).

(4) (3) An export certificate is a written statement that the Authority is satisfied that the approved product poses no more than a low risk of harm to individuals using the approved product.

The Authority may determine the form and content of the ex- port certificate.
The Authority may withdraw the export certificate at any time if the approval of the product is revoked under section 38 or the Authority is satisfied that— (a) (5) approval of the product was incorrectly or inappropri- ately granted; or events or circumstances occurring since the approval was granted mean that the approval— (i) (ii) no longer applies; or is misleading.
(b) 20 25 30 (6) An export certificate is not a guarantee that the approved prod- 35 uct— 65 Part 3 cl 79A Psychoactive Substances Bill (a) meets any requirements that might apply to such prod- (b) ucts outside New Zealand: poses no more than a low risk to individuals using the approved product.
Subpart 4A—Cost recovery 5 79A Costs to be recovered The Minister and the Authority must take all reasonable steps to ensure that the direct and indirect costs of administering this Act that are not provided for by money appropriated by Parliament for the purpose are recovered under this subpart, 10 whether by way of fees, levies, or otherwise.
79B Principles of cost recovery (1) In determining the most appropriate method of cost recovery under section 79A, the Minister and the Authority must, as far as is reasonably practicable, have regard to the following 15 principles: (a) equity, in that funding for a particular function, power, or service (or a particular class of function, power, or service) should generally, and to the extent practicable, be sourced from the users or beneficiaries of the relevant 20 functions, powers, or services at a level commensurate with their use of or benefit from the function, power, or service: efficiency, in that the allocation of costs should gener- ally be allocated and recovered in order to ensure that 25 maximum benefits are delivered at minimum cost: justifiability, in that costs should generally be recovered to meet only the actual and reasonable costs (including indirect costs) of the provision of or exercise of the rele- vant function, power or service: transparency, in that costs should generally be identi- fied, and allocated as closely as practicable to, tangible service provision in the recovery period in which the service is provided: ease of administration, in that the costs of collection 35 should generally be kept as low as possible.
30 (b) (c) (d) (e) 66 Psychoactive Substances Bill Part 3 cl 79C (2) (3) Costs should not be recovered under this subpart unless— (a) there has been appropriate consultation with persons or organisations that the Authority considers representa- tive of the interests of persons likely to be substantially affected by the exercise of the power; and the persons involved have been given sufficient time and information to make an informed contribution.
(b) 5 Subsection (2) does not require consultation in relation to specific fees or charges, or the specific levels of fees or charges, as long as the fees or charges are set reasonably 10 within the scope of any general consultation.

(4) A failure to comply with subsection (2) does not affect the validity of any regulations made for the purposes of this sub- part.
This section does not require the strict apportionment of the 15 costs that are to be recovered for a particular function or ser- vice based on usage.
(5) (6) Without limiting the way in which fees and charges may be set under this subpart, a fee or charge may be set at a level or in a way that— (a) 20 is determined by calculations that involve an averaging of costs or potential costs: takes into account costs or potential costs of services (that are not directly to be provided to the person who pays the fee or charge but which are an indirect or po- 25 tential cost) arising from the delivery of the service to a class of persons or all persons who use the service.
(b) 79C Methods of cost recovery The methods by which costs may be recovered made under this subpart are as follows: fixed fees or charges: (a) fees or charges based on a scale or formula or at a rate (b) determined on a time-unit basis: the recovery by way of fee or charge of actual and rea- sonable costs expended in, or associated with, the per- 35 formance of a service or function: fees or charges based on estimated costs and paid before the provision of the service, followed by reconciliation (d) (c) 30 67 Part 3 cl 79D Psychoactive Substances Bill and an appropriate further payment or refund after the provision of the service or function: refundable or non-refundable deposits paid before the provision of the service or function: fees or charges imposed on all users of services, classes 5 of users of services, all beneficiaries of services, or classes of beneficiaries of services: levies: any combination of the above.
(e) (f) (g) (h) 79D Cost recovery to relate generally to financial year (1) Except as provided in subsection (2), any regulations under this subpart that set a fee, charge, or levy that applies in any financial year— (a) must have been made before the start of that financial (b) year; but except as the regulations may otherwise provide, apply in that year and all subsequent years until revoked or replaced.
10 15 Subsection (1) does not prevent the alteration or setting dur- ing any financial year of a fee, charge, or levy payable in that 20 year if either— (a) the fee, charge, or levy is reduced, removed, or restated without substantive alteration; or in the case of an increase or a new fee, charge, or levy,— (i) (b) appropriate consultation has been carried out 25 with persons or representatives of persons sub- stantially affected by the alteration or setting; and the Minister is satisfied that those persons, or their representatives, agree or substantially agree 30 with the alteration or setting.
(ii) Subsection (1) does not prevent the amendment of any regu- lation setting a fee, charge, or levy if any substantive alteration effected by the amendment is for the purpose of correcting an error.
Recovery may be made in any financial year of any shortfall in cost recovery for any of the preceding 4 financial years, and allowance may be made for any over-recovery of costs in those 35 (2) (3) (4) 68 Psychoactive Substances Bill Part 3 cl 79F years (including any estimated shortfall or over-recovery for the immediately preceding financial year).
79E Three-yearly review of cost recovery (1) The Minister must review the levels and methods of cost re- covery in relation to any class of psychoactive substance or 5 approved products, persons, or other matter at least once in every 3-year period occurring since the original setting of, or latest change to, the cost recovery of those things.

The Minister must ensure that appropriate consultation takes place in relation to any such review.
10 (2) (3) A review may make provision for recovery in any relevant fi- nancial year of any shortfall in cost recovery for any of the pre- ceding 4 financial years, or make allowance for any over-re- covery of costs in those years (including any estimated short- fall or over-recovery for the immediately preceding financial 15 year).
Subsection (1) does not— (a) require all areas of cost recovery to be reviewed at the same time: impose any time limit on the making of regulations to 20 implement the results of a review.
(b) (4) 79F Regulations prescribing fees and charges (1) The Governor-General may, by Order in Council made on the recommendation of the Minister, make regulations prescrib- ing— (a) fees or charges of a kind or kinds described in sec- tion 79C(a) to (f): the persons liable for the payment of the fees or charges: the persons or class of persons, if any, exempt from pay- ing the fees or charges.
(b) (c) (2) If an exemption is provided under subsection (1)(c), the rea- sons for it must be set out in the regulations’ explanatory note.

69 25 30 (2) (3) (2) Part 3 cl 79G Psychoactive Substances Bill 79G Regulations imposing levies (1) 5 (d) (b) (c) The Governor-General may, by Order in Council made on the recommendation of the Minister, make regulations providing for the payment of a levy.
The regulations may— (a) prescribe different levies for different classes of per- sons: specify the amount of the levy: provide for the method by which the levy will be calcu- lated: specify the criteria and other requirements by and against which the levy will be set or reset: provide for the payment and collection of the levy: exempt any person or class or persons from paying the levy: provide for waivers or refunds of the whole or any part of the levy: provide for any other matters necessary or desirable to set, calculate, administer, collect, and enforce the levy.
If an exemption is provided under subsection (2)(f), the rea- 20 sons for it must be set out in the regulations’ explanatory note.

(e) (f) (h) (g) 10 15 79H Failure to pay fee, charge, or levy (1) This section applies if a fee, charge, or levy imposed by regu- lations made under section 79F or 79G is wholly or partly unpaid 20 working days after a request for payment.
The Authority may recover a fee, charge, or levy from a person responsible for paying it as a debt due in a court of competent jurisdiction.
Subpart 5—Other matters Duty to notify adverse reactions 80 Duty of specified persons to notify Authority about adverse reactions (1) A person specified in subsection (2) must, as soon as is rea- sonably practicable, notify the Authority if the person becomes aware of any adverse reaction arising from the use of a psy- 35 70 25 30 Psychoactive Substances Bill Part 3 cl 81 (2) choactive substance or an approved product by any individual (whether in New Zealand or overseas).
The persons are— (a) a person who holds a licence in respect of the psychoac- tive substance: the person who applied for approval of the approved product under section 31.
(b) (3) A notification under subsection (1) must include— (aa) (a) (b) the name of the psychoactive substance or approved product as far as it is known to the person; and the nature of the adverse reaction as far as it is known to the person; and the circumstances in which the adverse reaction arose as far as they are known to the person.

5 10 (4) A person commits an offence if the person who contravenes 15 subsection (1) commits an offence.
(5) A person who commits an offence against subsection (1) is liable on conviction to a term of imprisonment not exceeding 3 months or to a fine not exceeding $500,000, or both.

In this section, adverse reaction means an unwanted or harm- 20 ful reaction experienced by an individual using the psychoac- tive substance that is suspected to have arisen from, or be re- lated to, use of the substance.
(6) Regulations 81 (1) 25 Regulations relating to psychoactive substances The Governor-General may, by Order in Council made on the recommendation of the Minister, make regulations declaring, by name or description,— (a) a substance, mixture, preparation, article, device, or thing to be or not to be a psychoactive substance for 30 the purposes of this Act: any kinds or class of substances, mixtures, preparations, articles, devices, or things to be or not to be psychoac- tive substances for the purposes of this Act.
(b) (2) Before making a recommendation under subsection (1), the 35 Minister must— 71 Part 3 cl 82 Psychoactive Substances Bill (a) (a) (ab) (b) be satisfied that the regulations are reasonably neces- sary or expedient for achieving the purposes of this Act; and be satisfied that the proposed regulations are reasonably necessary for achieving the purpose of this Act; and seek, and have regard to, the advice of the advisory committee in respect of the proposed regulations; and consult with any person or organisation that the Minis- ter considers to be representative of the interests of per- sons likely to be substantially affected by the proposed 10 regulations.
5 Regulations relating to fees and charges The Governor-General may, by Order in Council made on the recommendation of the Minister, make regulations prescribing the fees or charges payable to enable the recovery of the direct 15 and indirect costs of the Authority, the advisory committee, and the appeals committee incurred in— (a) (b) (c) (d) Examples of the costs that may be recovered include— (a) (b) (c) (d) administering this Act: enforcing and monitoring compliance with this Act: publicising and informing people about this Act: doing anything else authorised or required by this Act.
the cost of processing applications: the costs of issuing licences or export certificates: the costs of funding enforcement officers: the costs of providing, operating, and maintaining sys- tems, registers, or other processes in connection with the administration of this Act: the costs of services provided by third parties to the Authority (for example, laboratories).
(e) 25 20 Regulations made under subsection (1) may specify— (a) the matters in respect of which fees or charges are payable: the amounts of fees or charges or the method or rates by which they are to be assessed: the persons or classes of persons liable for payment of the fees or charges: (b) (c) 30 35 82 (1) (2) (3) 72 Psychoactive Substances Bill Part 3 cl 83 (e) (d) the particular products or classes of products or particu- lar licences or classes of licences to which the fees or charges apply: the circumstances in which a penalty for default in pay- ment is payable or in which the payment of the whole 5 or a part of those fees or charges may be remitted or waived: the manner in which the fees or charges are to be paid.
(f) Before making a recommendation under subsection (1), the Minister must consult with any person or organisation that the 10 Minister considers to be representative of the interests of per- sons likely to be substantially affected by the regulations.
Regulations relating to infringement offences The Governor-General may, by Order in Council, make regu- lations for 1 or more of the following purposes: (a) prescribing the infringement fees payable for infringe- ment offences: prescribing the form of infringement notices and re- minder notices for infringement offences and any other particulars to be contained in an infringement notice and 20 reminder notice.
(b) 15 (4) 82 83 (1) Other regulations The Governor-General may, by Order in Council made on the recommendation of the Minister, make regulations for 1 or more of the following purposes: 25 (a) Applications for licences and approval prescribing, in relation to an application for a licence or approval of a psychoactive product,— (i) any particulars, information, documents, sam- ples, or other material that must accompany or 30 be contained in the application: any matter that the Authority must take into ac- count when deciding the application: (ii) 73 Part 3 cl 83 Psychoactive Substances Bill (b) (b) (c) Place-of-sale restrictions or prohibitions prescribing restrictions or prohibitions, or both, on the places or premises from which approved products may be sold, for example,— (i) restricting or prohibiting the sale of approved 5 products from places or premises of a specified kind (for example, an Internet site or non-fixed premises such as a vehicle): restricting or prohibiting the sale of approved products from certain types of retail premises (for 10 example, premises where alcohol is sold): restricting or prohibiting the sale of approved products from, or in proximity to, places where children or minors gather (for example, schools or recreational facilities): 15 (ii) (iii) Place-of-sale restrictions or prohibitions prescribing restrictions or prohibitions, or both, on the places or premises from which approved products may be sold: Internet sales restrictions or requirements prescribing restrictions and requirements relating to the location, manner, way, medium, or form in which ap- proved products are offered for Internet sale, for ex- ample,— (i) 20 restricting the offer of approved products on 25 Internet sites containing material designed to appeal to children or that associate approved products with youth culture: requiring that certain information (such as the ingredients contained in the approved prod- 30 uct) be visible on the Internet site when people browse, enter, or otherwise access the site, or
 a requirement that measures are taken to ensure that people younger than the age of 18 years cannot enter, browse, or otherwise access the 35 Internet site: restricting the offer of approved products on Internet sites that contain material that is de- (ii) (i) 74 (d) (d) (e) Psychoactive Substances Bill Part 3 cl 83 (ii) (iii) signed in such a manner, way, medium, or form to appeal, or be likely to appeal, to minors: requiring that certain information, such the ap- propriate health warning relating to the prod- uct be visible on the Internet site when people 5 browse, enter, or otherwise access the site: requiring prescribed measures to be taken to en- sure that minors cannot enter, browse, or other- wise access the Internet site: 10 Advertising restrictions or requirements prescribing restrictions or requirements relating to the location, manner, way, medium, or form in which— (i) (ii) approved products are advertised: advertising of approved products, if undertaken, is to appear, for example, a requirement that ad- 15 vertising for approved products include certain information (such as the ingredients contained in the approved product): prescribing restrictions or requirements relating to the manner, way, medium, or form in which approved prod- 20 ucts are advertised: Labelling restrictions or requirements prescribing restrictions or requirements relating to the manner, way, medium, and form in which approved products are labelled, for example— (i) 25 approved products are labelled, for example, re- strictions relating to labelling designed to appeal to children or that associates approved products with youth culture: restrictions relating to labelling designed to ap- 30 peal to minors: requirements that labelling for an approved prod- uct comply with any prescribed requirements (such as requirements relating to plain packag- ing): the labelling of approved products must appear for the purposes of sale or supply, or both, for example, a requirement that the inner
 and outer 35 (i) (ia) (ii) 75 Part 3 cl 83 Psychoactive Substances Bill packages for approved products both carry labels specifying certain prescribed information: (f) (g) (h) Packaging restrictions or requirements prescribing restrictions or requirements relating to the size and type of packaging for approved products for 5 the purpose of sale or supply, or both, for example, that the packaging must be tamper-proof or child-proof: prescribing restrictions or requirements relating to— (i) 15 the type of material and the medium or form of the material that may be inserted in packages that 10 contain approved products for the purpose of sale or supply, or both, for example, restrictions re- lating to the inclusion of written material of a certain kind (such as material that associates ap- proved products with youth culture): the content of any material required to be inserted in packages that contain approved products for the purpose of sale or supply, or both, for ex- ample, a requirement that certain material be in- serted in the package (such as information leaflets 20 about contraindications for use of the approved product): the material and the medium or form of the ma- terial that is to be inserted in packages that con- tain approved products for the purpose of sale or 25 supply, or both, for example, a requirement that material be presented in a certain way (such as a requirement for material to be printed in a certain size or manner): (ii) (iii) Health warnings prescribing requirements— (i) that health warnings accompany approved prod- ucts for the purposes of sale or supply, or both, and the information that must be specified or in- cluded in the warnings: as to the manner, way, medium, or form in which health warnings are, if required, to accompany approved products (such as a requirement that the 30 35 (ii) 76 Psychoactive Substances Bill Part 3 cl 83 health warning is to be on the label or advertising of a package containing an approved product): (h)
 prescribing, for the purposes of section 56, the infor- mation that must be specified or included in the health warning for an approved product: 5 (ha) prescribing requirements as the manner, way, medium, or form in which health warnings must appear on the label for the product or must appear in an advertisement relating to the approved product: (i) (j) (k) 10 Signage requirements prescribing requirements— (i) (ii) relating to signage that is to be displayed when approved products are sold: as to the manner, way, medium, and form in which signage, if required, is to be displayed 15 when approved products are sold, for example, a requirement that a person selling an approved product display a sign of a particular size stating that the approved product may not be sold to a person under the age of 18 years or stating a rec- 20 ommended maximum dosage: Quantity, dosage, form, and serving restrictions or requirements prescribing restrictions or requirements relating to— (i) the quantity or form of approved products that 25 may be sold or supplied together at any one time: the maximum dosage or serving of an approved product that may be sold or supplied at any one time: (ii) 30 Storage, display, and disposal restrictions or requirements prescribing restrictions or requirements relating to— (i) the storage of psychoactive substances, for ex- ample, a restriction on the maximum amount of any psychoactive substance that may be stored 35 in any premises at any one time or a requirement that the psychoactive substance must be stored at or below a certain temperature: 77 Part 3 cl 83 Psychoactive Substances Bill (ii) (iii) (iv) (iv) the manner of disposal of psychoactive sub- stances: the storage of approved products for the purposes of sale or supply, or both, for example, a restric- tion on the maximum amount of any approved 5 product that may be stored in any premises at any one time or a requirement that sellers of an ap- proved product must store it at or below a
 certain temperature: the display of approved products for the purposes 10 of sale or supply, or both, for example, a restric- tion that an approved product must not be dis- played in a particular place or a requirement re- lating to the position in a shop where approved products are visible from the street: the display of approved products inside retail premises for the purposes of sale, for example, re- strictions on approved products being displayed in any particular place or a requirement that ap- proved products not be visible from the street: 20 15 Prescribing telephone service or monitoring agency (ka) prescribing any telephone service for the purposes of section 54: (kb) prescribing a monitoring agency for the purposes of section 80A: 25 (l) (m) Infringement offences prescribing the infringement fee payable for an infringe- ment offence: prescribing the form of infringement notices and a re- minder notice for infringement offences, and any other 30 particulars contained in infringement notices and re- minder notices: (n) Procedure prescribing the procedure of the advisory committee and the appeals committee: 35 78 Psychoactive Substances Bill Part 3 cl 84 (o) (p) Record-keeping requirements prescribing requirements for specified persons to keep records under this Act and the period of time for which those records must be retained: General providing for any other matters contemplated by this Act, necessary for its administration, or necessary for giving it full effect.
5 Before making a recommendation under subsection (1), the Minister must consult with any person or organisation that the 10 Minister considers to be representative of the interests of per- sons likely to be substantially affected by the proposed regu- lations.
Regulations made under this section may— (a) apply to psychoactive substances or approved products 15 generally or to a particular class or description of psy- choactive substances or approved products specified or described in the regulations: (b) make different provision for apply differently to differ- ent classes or descriptions of psychoactive substances 20 or approved products, or on any other differential basis.
Compare: 2005 No 81 s 62 (2) (3) Delegation of Authority’s functions, duties, or powers 84 (1) Delegation of Authority’s functions, duties, or powers The Authority may, as the Authority thinks fit, delegate to any person any of the Authority’s functions, duties, or powers under this Act.
25 (2) A delegation under subsection (1)— (a) may be made subject to any terms or conditions that the 30 Authority thinks fit: (b) may be made generally or in any particular case: (c) does not prevent the Authority from exercising any power, or performing any function or duty: does not affect the responsibility of the Authority for the 35 actions of any person acting under a delegation: (e) may be revoked at any time by notice to the delegate.
(d) 79 Part 3 cl 84A Psychoactive Substances Bill (3) A person who is delegated to whom any functions, duties, or powers are delegated under subsection (1)— (a) may, with the prior written consent of the Authority, delegate those functions, duties, or powers to any other person: (b) may, subject to any terms or conditions, carry out or exercise those functions, duties, or powers in the same manner and with the same effect as if they had been conferred on that person directly by this Act and not by delegation.
(4) A person purporting to act under any delegation under sub- section (1) is, in the absence of proof to the contrary, pre- sumed to be acting in accordance with the terms of the dele- gation.

Protection from civil and criminal liability 84A Immunities (1) (2) the Authority: a member of the advisory committee: a member of the appeals committee.
This section applies to the following: (a) (b) (c) The person is protected from civil and criminal liability for any act that the person does or omits to do in the carrying out or intended carrying out of the person’s functions or duties or the exercise or intended exercise of the person’s powers under this Act, done— (a) in good faith; and (b) with reasonable cause.
Relationship with other enactments 85 (1) Relationship with Hazardous Substances and New Organisms Act 1996 This section applies to a psychoactive substance that is also a hazardous substance within the meaning of the Hazardous Substances and New Organisms Act 1996 (the HSNO Act).

(2) Nothing in this Act affects the application of the HSNO Act in relation to the psychoactive substance.
(3) However, in the event of any inconsistency— 80 Psychoactive Substances Bill Part 3 cl 88 (a) (b) between the provisions of this Act and the provisions of the HSNO Act, the provisions of this Act prevail: between the provisions of regulations made under this Act and the provisions of regulations made under the HSNO Act, the provisions of regulations made under 5 this Act prevail.
Compare: 1981 No 118 ss 5A, 110 86 Application of Customs and Excise Act 1996 The provisions of the Customs and Excise Act 1996, except sections 209 and 231 to 235C section 209 of that Act, apply 10 to a psychoactive substance that is not an approved product (or part of an approved product) as if it were prohibited goods under that Act., unless the person importing the psychoactive substance— (a) (b) holds a licence to import; and has notified the Authority of the importation in accord- ance with section 16(1).
15 Review of Act 87 Ministry must review Act (1) The Ministry must, no later than 5 years after the commence- 20 ment of this Act,— (a) conduct a review of the policy and operation of this Act; and prepare for the Minister a report of on the review.

(b) (2) As soon as practicable after receiving the report, the Minister 25 must present a copy to the House of Representatives.
Transitional provision 88 Transitional provision The transitional provision set out in Schedule 1 has effect for the purposes of this Act.

30 81 Part 3 cl 89 Psychoactive Substances Bill Amendments to Search and Surveillance Act 2012 Amendments to Search and Surveillance Act 2012 This section amends the Search and Surveillance Act 2012.

In section 45(1)(b), after “Arms Act 1983”, insert “; or”.
89 (1) (2) (3) After section 45(1)(b), insert: “(c) against section 24, 25, or 62 of the Psychoactive Sub- stances Act 2013.” In section 45(2)(b), after “Arms Act 1983”, insert “; or”.
(4) (5) After section 45(2)(b), insert: “(c) against section 24, 25, or 62 of the Psychoactive Sub- stances Act 2013.” Amendments to Children, Young Persons, and Their Families Act 1989 90 (1) Amendments to Children, Young Persons, and Their Families Act 1989 This section amends the Children, Young Persons, and Their Families Act 1989.

(2) After section 272(3)(b), insert: 5 10 15 “(ba) an infringement offence against the Psychoactive Sub- 20 stances Act 2013; or”.
(3) In section 272(5), replace “subsection (3)(c), where a young person is charged with” with “subsection (3)(ba) or 3(c), where a young person is charged with an infringement offence re- ferred to in subsection 3(ba) or”.

25 Consequential amendments and revocation 91 Consequential amendments and revocation Amend or revoke the enactments specified in Schedule 2 as set out in that schedule.
82 Psychoactive Substances Bill Schedule 1 Schedule 1 Transitional provision ss 5(2), 88 1 (1) (2) (1) (2) Transitional provision for products sold before commencement of Act This section applies to a psychoactive product that was being 5 lawfully sold throughout the period of 6 months before the commencement of this Act.
The psychoactive product may continue to be sold after the commencement of this Act, but only if,— (a) no later than 30 days after the commencement of this 10 Act, an application has been made to the Authority under section 31 for approval of the product; and the Authority has accepted the application.

(b) This clause applies to a psychoactive product that was law- fully being sold throughout the period of 3 months before the 15 commencement of this Act.
The psychoactive product may continue to be sold after the commencement of this Act only if,— (a) within 30 days after that commencement, an application is made to the Authority under section 31 for the ap- 20 proval of the product; and the Authority accepts the application.
(b) (2A) A person may continue to sell the psychoactive product by retail only if,— (a) within 30 days after that commencement, the person 25 applies to the Authority under section 12 for a licence to sell approved products by retail; and the Authority accepts the application.

(b) (2B) Subpart 1 of Part 3 applies to a psychoactive product that (3) may continue to be sold under this clause as if it were an ap- 30 proved product.
The Authority may, at any time, if it is satisfied that the con- tinued sale or supply of the psychoactive product poses more than a low risk of harm to individuals using the product, recall a product to which this section clause applies under section 35 78 as if it were an approved product, and that section applies with any necessary modifications to the recall of the product.
83 Schedule 1 Psychoactive Substances Bill (4) To avoid doubt, this section clause does not authorise the sale of psychoactive product for which an approval— (a) (b) is granted under section 35; or is refused under section 37.

84 5 10 Psychoactive Substances Bill Schedule 2 Schedule 2 Consequential amendments and revocation Part 1 Amendments to Acts s 91 Corrections Act 2004 (2004 No 50) Repeal section 23(3)(c).
Misuse of Drugs Act 1975 (1975 No 116) In section 2(1), repeal the definitions of temporary class drug and temporary class drug notice.

In section 2(1), definition of controlled drug analogue, paragraph (b), after “Medicines Act 1981”, insert “; or”.

In section 2(1), definition of controlled drug analogue, after para- graph (b), insert: “(c) an approved product within the meaning of the Psy- 15 choactive Substances Act 2013”.

Repeal sections 4C to 4E.


Misuse of Drugs Amendment Act 2005 (2005 No 81) Repeal Part 3.

Repeal Schedule 4.

20 Ombudsmen Act 1975 (1975 No 9) In the Schedule, Part 2, insert in their appropriate alphabetical order “Psychoactive Substances Expert Advisory Committee” and “Psy- choactive Substances Appeals Committee”.
85 Schedule 2 Psychoactive Substances Bill Part 1—continued Search and Surveillance Act 2012 (2012 No 24) In the Schedule, insert in its appropriate alphabetical order: Act Psychoactive Substances Act 2013 Section 70 Brief description of power Enforcement officer may obtain and execute search warrant to search for evi- dence of offences against Psychoactive Substances Act 2013 Which provisions in Part 4 apply All (except sec- tions 118 and 119 apply to con- stables only) Summary Proceedings Act 1957 (1957 No 87) In section 2(1), definition of infringement notice, insert after para- graph (j): 5 “(ja) section 66 of the Psychoactive Substances Act 2013; or”.
Part 2 Amendments to regulations Hazardous Substances (Minimum Degrees of Hazard) Regulations 2001 (SR 2001/112) Replace regulation 4(2) with: “(2) This regulation is subject to regulations 5, 6, and 6A.” After regulation 6, insert: “6A Psychoactive substances “(1) A psychoactive substance is not hazardous for the purposes of 10 15 the Act if— “(a) “(b) the substance is an approved product; or the substance— “(i) meets the minimum degree of hazard specified in 20 subclause 2(1)(s) of Schedule 4; and “(ii) only meets the minimum degree of hazard spe- cified in subclause 2(1)(s) of Schedule 4 because of its psychoactive properties; and 86 Psychoactive Substances Bill Hazardous Substances (Minimum Degrees of Hazard) Regulations 2001 (SR 2001/112)—continued Part 2—continued “(iii) does not meet any other minimum degree of haz- ard of the intrinsic hazardous substance proper- ties specified in regulation 7.
“(2) In this regulation,— “approved product has the same meaning as in section 8 of 5 the Psychoactive Substances Act 2013 “psychoactive substance has the same meaning as in section 9 of the Psychoactive Substances Act 2013.” Part 3 Regulations revoked Misuse of Drugs (Restricted Substances) Regulations 2008 (SR 2008/373) Revoke.
10 Legislative history 26 February 2013 9 April 2013 Introduction (Bill 100–1) First reading and referral to Health Committee 12 Published under the authority of the House of Representatives—2013 Wellington, New Zealand: 87