PCO 22159/24.0

Drafted by Parliamentary Counsel EXPOSURE DRAFT FOR REFERENDUM


Cannabis Legalisation and Control Bill

Exposure Draft for Referendum


Explanatory note


General policy statement

This exposure draft of the proposed Cannabis Legalisation and Control Bill (the Bill) provides a regulatory framework to legalise and control the production, possession and use of cannabis in New Zealand for people 20 years and over.

The overarching objective of the regulatory regime is to reduce the harms associated with cannabis use experienced by individuals, families, whānau, and communities in New Zealand.

The harm-reduction objective is reflected in measures to—



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Use of excise, levies and fees

An excise tax and levy will be applied when cannabis is packaged and labelled for retail. This will assist to manage the price of retail cannabis.

The levy will be used to directly fund services that will assist in reducing the harm caused by cannabis use (as identified in the harm reduction strategy).

Enforcement provisions

The Bill establishes a framework of offences and penalties to support provisions and restrictions in the licensed and unlicensed spheres, incorporating the use of fees, court-imposed fines and, in the most serious cases, terms of imprisonment.


Clause by clause analysis

Clause 1 is the Title clause.

Clause 2 is the commencement clause.


Part 1 Preliminary provisions

Clause 3 provides an outline of the Bill.

Clause 4 sets out the purpose of the Bill.

Clause 5 indicates how the Bill recognises and respects the Crown’s responsibility to take appropriate account of Te Tiriti o Waitangi.

Clause 6 is the interpretation clause. It sets out the defined terms used in the Bill.

Clause 7 concerns the relationship of the Bill with the Food Act 2014 and the Agri- cultural Compounds and Veterinary Medicines Act 1997.

Clause 8 indicates that the transitional, savings, and related provisions are set out in

Schedule 1.

Clause 9 provides that the Bill is to bind the Crown.


Part 2

Key regulatory roles

Part 2 sets out the key regulatory roles and functions.


Part 3

General provisions concerning personal use of cannabis

Part 3 sets out provisions concerning the personal use of cannabis.


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Part 4

Licences and activity authorisations

Part 4 concerns the licensing of controlled activities in the cannabis supply chain.


Part 5

Control of cannabis products

Part 5 establishes controls on licensed cannabis products.


Part 6

Provisions relating to retail sale and consumption premises: premises operations and licence processes

Part 6 sets contains controls on retail sale and consumption premises.


Part 7

Security and containment of cannabis and cannabis products

Part 7 establishes physical security arrangements.


Part 8 Production standards

Part 8 relates to production standards.


Part 9 Testing

Part 9 sets out testing and reporting requirements and provisions for tracing and recalling cannabis and cannabis products.


Part 10 Standards for packaging

Part 10 establishes standards for packaging.


Part 11 Enforcement

Part 11 sets out enforcement powers, including the powers of enforcement officers.



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Part 12 Duties, levies, and fees

Part 12 provides for the imposition of duties, levies, and fees.


Part 13 Other matters

Part 13 covers other matters, including information sharing, regulation making powers, future review of the Bill, and amendments to other enactments.


Exposure draft for referendum


Hon Andrew Little


Cannabis Legalisation and Control Bill

Exposure Draft for Referendum


Contents

Page

  1. Title 12

  2. Commencement 12

    Part 1 Preliminary provisions

  3. Overview of Act 12

  4. Purpose 15

  5. Te Tiriti o Waitangi 15

  6. Interpretation 16

  7. Relationship with Food Act 2014 and Agricultural Compounds and 21

    Veterinary Medicines Act 1997

  8. Transitional, savings, and related provisions 21

  9. Act binds the Crown 21

    Part 2

    Key regulatory roles

    Cannabis Regulatory Authority

  10. Cannabis Regulatory Authority established 21

    Authority’s main objective and functions

  11. Main objective of Authority 21

  12. Functions 22

  13. Authority must prepare and publish national plan 23

  14. Regular reports on national plan 23

  15. Register of licence holders 24

  16. Local licensed premises policies 24


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    Cannabis Legalisation and Control Bill

    Cannabis Advisory Committee

  17. Cannabis Advisory Committee established 24

  18. Functions of advisory committee 24

  19. Membership, procedures, etc of advisory committee 25

  20. Advisory committee: reporting 25

    Harm reduction strategy

  21. Process for developing harm reduction strategy 26

    Cannabis cultivation cap

  22. Cannabis cultivation cap 26

    Part 3

    General provisions concerning personal use of cannabis

    Subpart 1—Growing cannabis for personal use

  23. Purpose and application of subpart 27

  24. Limits on individuals growing cannabis for personal use 27

  25. Maximum number of plants that can be grown on property for 27

    personal use

  26. Conditions limiting place where cannabis may be grown 28

  27. Compliance order may be issued by authorised enforcement officer 28

  28. Prohibition on growing cannabis in public place 28

    Subpart 2—Possession, purchase, age, place, sale, supply and sharing restrictions

  29. Possession limit for persons aged 20 years or older 29

  30. Person may have cannabis plants or larger quantities of cannabis in 29

    public in course of moving

  31. Purchase limit for persons aged 20 years or older 29

  32. Minimum age to possess cannabis is 20 years 30

  33. Infringement notice under section 32(2) may include condition 30

  34. Social sharing 30

  35. Prohibition against supplying cannabis to person aged 19 years or 30

    younger

  36. Restriction on supply of cannabis to persons aged 20 years or older 31

  37. Restrictions on place of consumption 31

  38. Prohibition on sale of cannabis or cannabis products to persons 31

    aged 19 years or younger

  39. Sale of cannabis or cannabis products 31

  40. Supplying cannabis products by mail order or courier prohibited 32

  41. Prohibition on importing or exporting cannabis 32

  42. Prohibition against dangerous methods of unlicensed processing of 32

    cannabis concentrates

  43. Offence to expose persons aged 19 years or younger to cannabis 33

    emissions

  44. Infringement notice under section 43(2) may include condition 33

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Subpart 3—Procedure for infringement offences

  1. Interpretation 33

  2. Proceedings for infringement offences 33

  3. Who may issue infringement notices 34

  4. When infringement notice may be issued 34

  5. Infringement notice may be revoked 34

  6. What infringement notice must contain 34

  7. How infringement notice may be served 35

  8. Payment of infringement fees 35

  9. Reminder notices 35

  10. Forfeiture for infringement offence 35

  11. Amendment to Summary Proceedings Act 1957 36

  12. Amendment to Oranga Tamariki Act 1989 36

    Part 4

    Licences and activity authorisations

  13. Purpose of Part 36

    Subpart 1—Controlled activities

  14. Types of controlled activity 36

  15. Person must hold licence to conduct controlled activity 37

  16. Exceptions from Part 3 for certain licence holders and others 37

  17. Types of licences 38

    Cannabis production

  18. Nursery activity 38

  19. Cultivation activity 39

  20. Micro-cultivation activity 39

  21. Processing activity 40

  22. Wholesale and distribution activity 40

  23. Nursery retail activity 41

  24. Research activity 41

  25. Destruction activity 42

    Cannabis testing

  26. Testing activity 42

    Cannabis distribution

  27. Retail activity 42

  28. Consumption premises activity 43

    Subpart 2—Licence applications

    Eligibility requirements

  29. Individuals who are eligible to hold licences 43

  30. Bodies corporate and partnerships that are eligible to hold licences 43

  31. Eligibility of responsible person 44

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  32. Duty to have responsible person 44

  33. Role of responsible person 44

    Applications for licences

  34. Application for licence 44

  35. Initial assessments of licence applications 46

  36. Authority may inspect proposed locations 46

    Fit and proper person assessment

  37. Certain persons ineligible to be fit and proper person 46

  38. Fit and proper person assessment 46

  39. Certain convictions not determinative 47

  40. Authority may consider information from other sources 48

    Additional criteria for assessing cannabis production licence applications

  41. Additional criteria for assessing cannabis production licence 48

    applications

  42. Authority may assess applications against each other in certain 49

    cases

    Additional criteria for assessing cannabis testing licence applications

  43. Additional criteria for assessing cannabis testing licence 49

    applications

    Additional criteria for assessing cannabis distribution licence applications

  44. Additional criteria for assessing cannabis distribution licence 49

    applications

  45. Authority may consult affected local persons and groups 50

  46. Public may make submissions on applications 50

    Authority may approve or decline application

  47. Authority may approve or decline application 51

  48. Conditions of licences 51

    Subpart 3—Issue of licences

  49. Issue of licence 52

  50. Duration of licence 52

  51. Renewal of licence 53

  52. Replacement of responsible person 53

    Licence variations at request of licence holder

  53. Certain changes not to be made without approval of Authority 53

  54. Changes of contact details 54

  55. Notification of Authority by entity of changes in company 54

shareholding or name

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  1. Notification of Authority by beneficial owner of shares of changes 55

    in shareholding

  2. Variation to licensed premises during repairs, etc 55

    Voluntary surrender of licence

  3. Licence holder may surrender licence 56

    Subpart 4—Suspension and revocation of licences

  4. Variation of licence 56

    Suspension of licences

  5. Suspension of licence 57

  6. Duration of suspension 58

  7. Effect of suspension 58

    Immediate suspension of licence or authorisation in interests of public safety

  8. Immediate suspension of licence or authorisation in interests of 59

    public safety

  9. Procedure for suspending licence or authorisation under section 59

    107

  10. Term of immediate suspension 60

    Cancellation of approval of responsible person or key person

  11. Cancellation of approval of responsible person 60

  12. Cancellation of approval of key person or duty manager 60

    Revocation of licence

  13. Revocation of licence 61

  14. Duty to surrender licence 62

  15. Revocation of authorisation as key person or duty manager 62

  16. Record of suspensions and revocations 62

    Subpart 5—Adverse decisions

  17. Adverse decisions 63

  18. Internal review of decision of Authority 63

  19. Notice of decision on internal review 64

  20. Effect of notice of decision 64

  21. Stay of reviewable decision on internal review 64

    Subpart 6—Appeals

  22. Cannabis Appeals Authority 65

  23. Who may appeal 65

  24. Appeals by way of rehearing 65

  25. Determination of appeal 66

  26. Effect of appeal 66

  27. Prohibition on inclusion of false information in licence application 66

  28. Knowingly applying for licence when prohibited 66

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  29. Breach of conditions of licence 66

  30. Selling cannabis accessories without a licence 66

  31. Offences related to prohibited and unauthorised cannabis products 66

  32. Suspension of certain decisions of Authority to grant licence or 67

    manager’s certificate

    Subpart 7—Miscellaneous provisions

    Restrictions on who may be employed

  33. Restrictions on who may be employed 67

    Record-keeping obligations

  34. Licence holder must keep records 68

  35. Authority may request independent verification of records 68

  36. Records relating to cannabis cultivation 68

  37. Records relating to cannabis research 69

  38. Records relating to cannabis processing 69

  39. Records relating to cannabis wholesaling and distribution 69

  40. Records relating to cannabis retailing 70

  41. Records relating to cannabis testing 70

  42. Records relating to cannabis destruction 70

  43. Failure to meet record-keeping obligations 70

    Key persons and duty managers

  44. Duty to have key persons or duty managers 71

  45. Roles of key persons and duty managers 71

  46. Licence holder obligated to ensure duty manager working at 71

    premises at all times when premises operating or open to public

  47. Eligibility of key person 72

  48. Eligibility of duty manager or acting duty manager 72

  49. Application for approval of key person or duty manager 72

  50. Authority may approve or decline person as key person or duty 73

    manager

  51. Replacement of key person or duty manager 74

  52. Temporary duty manager 74

  53. Acting duty manager 74

    Offences

  54. Offence to sell or supply cannabis in excess of annual cultivation 75

    cap

  55. Offence to sell or supply cannabis to unlicensed entity 75

Part 5


Control of cannabis products


155

Authority may publish information and other data

75

156

Sale or supply to impaired people

76

157

Advertising cannabis products

76


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  1. Exemptions from advertising prohibition for specified publications 77

  2. Exemptions from advertising prohibition for retailers 78

  3. Display of cannabis products in or from sales outlets, etc, generally 79

    prohibited

  4. Use of trade marks, etc, on goods other than cannabis products, or 80

    in relation to sponsored events

  5. Prohibition on use of non-cannabis trademarks on cannabis 81

    products or accessories

  6. Sponsoring activity involving use of trade mark, etc, of cannabis 81

    products

  7. Using a non-cannabis trademark with cannabis 82

  8. Using vending machine to sell cannabis 82

  9. Sponsoring activity involving exclusive supply arrangement 82

  10. Free distribution and rewards prohibited 83

  11. Arrangements conflicting with Act have no effect 84

  12. Advertisements concerning harms from cannabis use not affected 84

  13. Point-of-sale health information or warnings signs 84

  14. Sale of cannabis products with other products prohibited 85

  15. Messages and information required for cannabis products 85

  16. False, misleading or therapeutic claims prohibited 86

  17. Selling cannabis remotely 86

  18. Presenting for sale cannabis product that may be attractive to 87

    children

  19. Prohibition on feeding of cannabis or cannabis products to animals 87

  20. Use of unlicensed premises as place for general consumption of 87

    cannabis or cannabis products

    Part 6

    Provisions relating to retail sale and consumption premises: premises operations and licence processes

    Premises operations—general provisions

  21. Application of Part 6 88

  22. Use of consumption premises for consumption of cannabis and 88

    cannabis products

  23. Other requirements for consumption premises 88

  24. Cannabis retail premises 88

  25. Authority may set trading hours 88

  26. Licences to be displayed in premises 89

    Controls on consumption and retail premises’ operations

  27. Meaning of impaired 89

  28. Sale or supply of cannabis to impaired people 89

  29. Offence to allow consumption of cannabis on retail premises 90

  30. Offence to employ or to allow persons 19 years old or younger to 90

    enter or consume cannabis on retail or consumption premises

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  31. Authority may issue rules about host responsibility 91

  32. Manager affected by substances while on duty 91

  33. Employee affected by substances while on duty 91

  34. Allowing impaired person on premises with retail activity 92

    authorisation

  35. Allowing disorderly conduct on licensed premises 92

  36. Prohibition against allowing consumption of alcohol or tobacco in 92

    consumption premises

  37. Penalty for offence under section 193 92

  38. Prohibition against licensed cannabis retailer selling, supplying, 92

    etc, cannabis to persons under 20 years

  39. Selling non-approved cannabis product or cannabis or cannabis 94

    products from unlicensed source

  40. Selling cannabis or cannabis products with alcohol or tobacco 94

  41. Selling cannabis or cannabis products in excess of daily purchase 94

    limit to individuals

  42. Selling cannabis with products other than alcohol or tobacco 95

    Part 7

    Security and containment of cannabis and cannabis products

  43. Licence holders must ensure security of cannabis and cannabis 95

    products

  44. Authority may prescribe rules for security and containment 95

    Part 8 Production standards

  45. Authority may make rules 95

  46. Risk assessment levels for cannabis and cannabis products 98

  47. Restriction on distribution of elevated risk products 98

  48. Requirement for notification before first New Zealand release of 98

    standard risk product

  49. Authority may require licence holder to supply information 98

  50. Cannabis edibles must comply with Act, regulations, and rules 98

  51. Restrictions on cannabis edibles 98

  52. Authority may stop sale of or recall cannabis products 99

  53. Offence to produce or sell cannabis that exceeds its permitted 99

    potency level or other constituent limits

  54. Prohibition on sale of novel or harmful cannabis products 99

  55. Sale or supply of certain kinds of cannabis or cannabis product prohibited

    100

  56. Offence to produce or sell unclassified cannabis products 100

  57. Offence to produce or sell cannabis products with substances that enhance effects of cannabis

    100

  58. Production and sale of certain cannabis products prohibited 101

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  1. Prohibition or sale of cannabis products without proper labelling and packaging

    101

  2. Food may not be processed in cannabis facility 101

  3. Authority may make rules about cultivation, processing, and production

    102

    Part 9 Testing

    Testing and reporting

  4. Testing cannabis and cannabis products 102

  5. Head of Authority may require further testing 103

  6. Returns and reports 103

  7. Regulations for standardised packaging (including messages and information).

    104

    Tracing and recall

  8. Application of section 224 105

  9. Tracing and recall 105

  10. Regulations and notices relating to tracing and recall of cannabis and cannabis products

    106

    Part 10 Standards for packaging

  11. Packages 106

  12. Cannabis plant: not budding or flowering 106

  13. Cannabis plant: container limit 107

  14. Cannabis seeds: immediate container 107

  15. Cannabis product labels 107

  16. Cannabis plants 107

  17. Cannabis seeds 108

    Part 11 Enforcement

    Subpart 1—Enforcement powers in relation to Part 3

  18. Application 108

  19. Warrantless power to search persons for cannabis and cannabis products if specified offence suspected

  20. Power of inspection to check whether cannabis is grown for personal use in contravention of Act in cases where offence is suspected

  21. Cannabis, cannabis products, and cannabis containers may be seized in course of search

    108


    108


    109

  22. Power to search container or pockets of persons 109

  23. Warrant to search dwellinghouse, marae, etc 110

  24. Requirement to give identifying information 110

  25. Destruction of cannabis or cannabis products 110

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    Subpart 2—Powers of enforcement officers in relation to this Act (other than Part 3)

    Powers of enforcement officers

  26. Application 111

  27. Powers of entry and inspection 111

  28. Requirement to give identifying information 112

  29. Search warrant 112

  30. Purposes for which powers may be used 113

    Subpart 3—Miscellaneous

    Enforcement officers

  31. Duties of enforcement officers 113

  32. Offences in respect of enforcement officers 114

  33. Responsibility for enforcement: limitation period for commencing proceedings

    114

    Forfeiture

  34. Forfeiture generally 114

  35. Forfeiture of motor vehicles, ships, or aircraft, etc 115

  36. Machinery provisions 115

    Acquittals

  37. Effect of acquittal 115

    Presumptions

  38. Presumptions that enforcement officer may rely on 116

  39. Presumption in legal proceedings 116

    Part 12 Duties, levies, and fees

    Excise duties

  40. Excise duties 116

    Cost recovery

  41. Regulations relating to fees, charges, and costs 116

  42. Specified persons must pay levies 117

  43. Particulars of regulations made under section 257 118

  44. Unpaid levies are debts due to Authority 118

    Levy regulations for funding harm reduction strategy

  45. Levy regulations for funding harm reduction strategy 119

  46. Levies for cannabis-related purposes 120

  47. Levy regulations are confirmable instruments 120

  48. Excise duties in respect of cannabis 120


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Part 13 Other matters

Information sharing

  1. Sharing of information between Authority, regulatory agencies, and overseas agencies


    122

    Regulations

  2. Regulations 123

  3. Notices 125

    Review of Act and related matters

  4. Review of Act 126

    Amendments to other enactments

  5. Amendments to Customs and Excise Act 2018 126

  6. Amendments to Excise and Excise-equivalent Duties Table 128

Schedule 1

Transitional, savings, and related provisions

Schedule 2

Cannabis production licences: Restricted activity combinations

Schedule 3

Persons ineligible to be fit and proper persons

Schedule 4 Cannabis Appeals Authority

Schedule 5 Health warnings

Schedule 6

Equivalences for cannabis products in non-dried form

Schedule 7

Classes of cannabis and cannabis products that licence holders may sell

Schedule 8

Potency limits for cannabis that may be sold

Schedule 9

Provisions relating to imposition and payment of cannabis levies

Schedule 10

Rates for each class of cannabis and cannabis products

131


132


133


135


141


142


143


144


145


148


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cl 1 Cannabis Legalisation and Control Bill

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The Parliament of New Zealand enacts as follows:

  1. Title

    This Act is the Cannabis Legalisation and Control Act 2020.

  2. Commencement

    This Act comes into force on the day after the date on which it receives the Royal assent.



  3. Overview of Act

Part 1 Preliminary provisions

  1. This Act legalises the production, possession, and use of cannabis in New Zea- land, for those aged 20 years or older.

  2. The broad objectives of the Act are set out in section 4.

  3. A definition of cannabis, for the purposes of the Act, is set out in section 6, and it excludes—

    1. hemp, which is regulated under the Misuse of Drugs (Industrial Hemp)

      Regulations 2006; and

    2. medicinal cannabis, which is regulated under the Misuse of Drugs (Medicinal Cannabis) Regulations 2019.

  4. This Act is divided into 13 Parts.

  5. This Part (Part 1) sets out several preliminary provisions, including the pur- pose and interpretation provisions.

  6. Part 2 sets out the key regulatory roles and functions.

  7. Part 3 sets out provisions concerning the personal use of cannabis, includ- ing—

    1. limits on growing cannabis for personal use:

    2. limits on personal possession:

    3. the prohibition of cannabis consumption in a public place:

    4. prohibitions regarding the sale and supply of cannabis:

    5. the use of infringement notices.

  8. Part 4 concerns the licensing of controlled activities in the cannabis supply chain, including provisions that set out—

    1. definitions of controlled activities:

    2. licence eligibility requirements:

    3. licence application processes and criteria:

    4. a fit and proper persons test:


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    5. provisions for the variation, suspension, revocation, and cancellation of licences:

    6. licence appeal processes.

  9. Part 5 establishes controls on licensed cannabis products, including—

    1. prohibitions on advertising:

    2. controls on use of trademarks and sponsorship:

    3. labelling and information requirements:

    4. prohibition on cannabis products deemed attractive to children:

    5. prohibition on feeding cannabis or cannabis products to animals.

  10. Part 6 sets out controls on retail sale and consumption premises, including—

    1. restrictions on activities permitted on premises:

    2. trading hours:

    3. responsibilities of managers:

    4. approaches to impairment and host responsibilities.

  11. Part 7 establishes physical security arrangements.

  12. Part 8 relates to production standards, including—

    1. the ability of the Authority to make rules regulating—

      1. the production, marketing, and packaging of cannabis and canna- bis accessories:

      2. the creation of standards for cannabis products and approval pro- cesses:

      3. the assessment and review of the potency limits for different classes of cannabis:

    2. restrictions on the production of cannabis edibles:

    3. a prohibitions on production, sale, or supply of certain kinds of cannabis or cannabis products:

    4. prohibition on the processing of food in a cannabis facility.

  13. Part 9 sets out testing and reporting requirements and provisions for tracing and recalling cannabis and cannabis products.

  14. Part 10 establishes standards for packaging.

  15. Part 11 sets out enforcement powers, including the powers of enforcement officers.

  16. Part 12 provides for the imposition of duties, levies, and fees.

  17. Part 13 covers other matters, including—

    1. information sharing:

    2. regulation making powers:


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    3. future review of the Act:

    4. amendments to other enactments.

  18. The schedules cover the following matters:

    1. Schedule 1 sets out transitional, savings, and related provisions:

    2. Schedule 2 sets out restrictions on holding combinations of authorisa- tions for the production of cannabis:

    3. Schedule 3 deals with persons ineligible to hold a licence:

    4. Schedule 4 establishes the Cannabis Appeals Authority:

    5. Schedule 5 sets out the health warnings to be included with cannabis and cannabis products:

    6. Schedule 6 establishes equivalences for cannabis products in non-dried form:

    7. Schedule 7 sets out the classes of cannabis that a licence holder may sell:

    8. Schedule 8 concerns the potency limits for cannabis that may be sold:

    9. Schedule 9 sets out provisions relating to imposition and payment of cannabis levies:

    10. Schedule 10 sets out the rates applicable to certain classes of cannabis and cannabis products.

  19. The main provisions of this Act that give effect to the objective of protecting children and young people from the harms of cannabis are set out in the follow- ing sections:

    1. section 4(b), which states that one of the ways the purpose of the Act will be given effect is by raising public awareness of the health risks associated with cannabis use, including the risks posed by second-hand cannabis emissions to children and young people:

    2. section 12(j), which provides that a function of the Authority is to raise public awareness of the harms associated with cannabis use (including harms presented to children and young people by cannabis emissions) and to promote responsible use and help-seeking behaviours:

    3. section 19(2), which provides for the interests of children and young people to be represented by the membership of the Cannabis Advisory Committee:

    4. section 29, which establishes 20 years as the minimum age for the pos- session of cannabis:

    5. section 175, which prohibits a licence holder from presenting a canna- bis product for sale that may be attractive to children or young people:

    6. section 226, which sets standards for the packaging of products, including child resistant containers.



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  1. Purpose

    The purpose of this Act is to authorise, regulate, and control the cultivation, processing, use, and sale of cannabis in New Zealand, with the intent of reduc- ing harms from cannabis use to individuals, families, whānau, and communi- ties by—

    1. exercising controls over the whole cannabis supply chain and availabil- ity of cannabis in New Zealand and eliminating the illegal supply of can- nabis; and

    2. raising public awareness of the health risks associated with cannabis use, including the risks posed by second-hand cannabis emissions, particu- larly to children and young people; and

    3. protecting the health and well-being of New Zealanders, particularly young people, through restricting their access to cannabis and prohibit- ing inducements to use cannabis; and

    4. improving access to health and social services, and other whānau sup- ports, for those who require assistance to address issues associated with cannabis use; and

    5. providing access to a legal and quality-controlled supply of cannabis for adults who choose to use cannabis; and

    6. limiting the public visibility of, and exposure to, cannabis use in New Zealand; and

    7. placing controls on the potency and content of licensed cannabis; and

    8. providing for the limited growing of cannabis for personal use, within a regulated environment; and

    9. ensuring that responses to contraventions of the Act are proportionate, encourage compliance, and incorporate a focus on reducing overall harms; and

    10. ensuring that all stages of the supply chain including the management of associated waste products are licensed and controlled.

  2. Te Tiriti o Waitangi

    1. The main provisions of this Act that recognise and respect the Crown’s respon- sibility to give effect to the principles of Te Tiriti o Waitangi are—

      1. section 11, which requires the Authority to operate in a way that allows it to develop meaningful relationships with iwi and Māori repre- sentatives with appropriate expertise, to give effect to the required func- tions:

      2. section 19(2), which requires the membership of the advisory commit- tee to include iwi and Māori representation with appropriate expertise:


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      3. section 267, which requires a 5-year review of the Act to be under- taken by an independent body that includes iwi and Māori representation with appropriate expertise.

    2. Other provisions of the Act that recognise the interests of Māori in the context of the regulation of cannabis include—

      1. section 85, which relates to how the amount of licensed cannabis that may be cultivated within the annual cultivation cap may be allocated, and requires the Authority to have regard to applications that realise the following social equity principles:—

        1. representing or partnering with communities disproportionately harmed by cannabis, including Māori and people from economi- cally deprived areas; and

        2. the generation of social benefit and build community partnerships by engaging individuals, whānau, and communities in the design and delivery of their authorised activities; and

        3. the promotion of employment opportunities and career pathways in the cannabis industry for Māori and people from economically deprived areas; and

      2. section 202, which relates to the manner in which the Authority must set the maximum potency limits for licensed cannabis products, and pro- vides that these limits should aim to minimise problematic use, espe- cially for Māori; and

      3. sections 260 and 263, which require the Crown, when setting the harm reduction levy and excise duties, to have regard to the extent to which the levy and the excise duties share the costs associated with can- nabis use and its regulation in an equitable and non-regressive manner among those who buy, sell and produce cannabis.

  3. Interpretation

  1. In this Act, unless the context otherwise requires,—

    additive means any non-cannabis derived substance added (directly or indi- rectly) to cannabis to achieve a specific technical or functional purpose during processing, storage, or packaging

    adult means a person aged 20 years or older

    advisory committee means the Cannabis Advisory Committee established by

    section 17

    alcohol has the same meaning as in section 5(1) of the Sale and Supply of Alcohol Act 2012

    appeals authority means the Cannabis Appeals Authority established by sec- tion 121


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    Authority means the Cannabis Regulatory Authority established by section 10

    cannabis

    1. means any plant of the genus Cannabis, whether growing or not, and includes—

      1. any part of a plant of that kind (including the phytocannabinoids produced by, or found in, the plant) regardless of whether that part has been processed or not; and

      2. any substance or mixture of substances that contains, or has in it, any part of a plant of that kind; and

      3. any substance that is identical to any phytocannabinoid produced by, or found in, a plant of that kind, regardless of how the sub- stance was obtained; and

      4. any derivative of cannabis; and

    2. includes any substance or derivative specified in paragraph (a) that is contained in a cannabis product; but

    3. excludes any substance regulated under an enactment regarding the medicinal use of cannabis or the use of hemp

    cannabis accessory

    1. means a thing that is represented to be (or taken under subsection (2) as represented to be) used in the consumption of cannabis, including rolling papers or wraps, holders, pipes, water pipes, bongs, and vaporiz- ers; but

    2. does not include the container of a cannabis product that is in contact with cannabis, if that container is the only container of the cannabis product

    cannabis concentrate means any preparation of cannabis where the THC con- tent has been concentrated through a process of chemical or physical alteration

    cannabis edible

    1. means cannabis that is—

      1. consumed in the same manner as food; and

      2. is sold at room temperature; but

    2. does not include fresh cannabis, dried cannabis, cannabis plants, or can- nabis seeds

    cannabis extract

    1. means any substance that is produced using processes that extract oils from cannabis plants that have a high THC content; but

    2. excludes any cannabis topical or cannabis edible


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    cannabis plant means a plant, including a seedling or sprout, that belongs to the genus Cannabis

    cannabis product means any product processed from or containing cannabis that is packaged and labelled for sale to a consumer

    cannabis product advertisement

    1. means any words, whether written, printed, or spoken, including on film, video recording, or other medium, broadcast, or telecast, and any picto- rial representation, design, or device, used to—

      1. encourage the use of cannabis or a cannabis accessory; or

      2. notify the availability of cannabis or a cannabis accessory; or

      3. promote the sale of cannabis or a cannabis accessory; or

      4. promote cannabis consumption behaviour; and

    2. includes—

      1. any trade circular, any label and any advertisement in any trade journal that does any of the things referred to in paragraph (a)(i) to (iv); and

      2. any depiction in a film, video recording, telecast, or other visual medium, of a cannabis product or a cannabis accessory trade mark, where in return for that depiction any money is paid, or any valuable thing is given, whether to the maker or producer of that film, video recording, telecast, or visual medium or to any other person; and

      3. the use in any advertisement or promotion to the public of a can- nabis product or a cannabis accessory processor’s company name where that name or any part of that name is used as, or is included in, a cannabis product or cannabis accessory trade mark

    cannabis seed means a seed of a cannabis plant

    cannabis topical means cannabis that is intended to be consumed by applica- tion to a person’s skin or exterior

    CBD means cannabidiol

    CBDA means cannabidiolic acid (present in fresh, undried, cannabis plant material and some cannabis products and which may be converted to CBD by processes such as drying and heating)

    consume,—

    1. in relation to cannabis, includes smoking it, ingesting it orally, applying it topically, or using it in any other manner; and

    2. in section 193, has the same meaning in relation to any other substance


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    Cannabis Legalisation and Control Bill Part 1 cl 6

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    consumption premises means premises in respect of which a person holds a consumption premises licence authorising that person to carry on the activities authorised under section 72

    controlled activity has the meaning given in sections 58 and 62 to 72

    distribute includes administering, giving, transferring, transporting, sending, delivering, providing, or otherwise making available in any manner, whether directly or indirectly, and offering to distribute

    dried cannabis means any part of a cannabis plant that has been subjected to a drying process

    emissions, in relation to smoking or vaping cannabis, means the smoke or aer- osolised vaping substance produced by using cannabis or a cannabis product, whether by inhaling, exhaling, or otherwise

    enforcement officer means—

    1. a constable within the meaning of section 4 of the Policing Act 2008; or

    2. another person or class of persons authorised by the head of the Author- ity in accordance with this Act to act in that capacity; or

    3. any other person or class of persons authorised by the head of the Authority to exercise particular powers under this Act

    equivalent, in relation to a specified weight of dried cannabis, means the equivalent specified in Schedule 6 for a cannabis product in non-dried form

    fees framework means the framework determined by the Government from time to time for the classification and remuneration of statutory and other bod- ies in which the Crown has an interest

    fresh cannabis

    1. means freshly harvested cannabis buds and leaves; but

    2. does not include any cannabis plant material that can be used to grow cannabis

    growing stock means cannabis seeds and cannabis plants, but does not include cannabis plants that are budding or flowering

    infringement fee has the meaning given in section 45 infringement notice means a notice issued under section 48 infringement offence has the meaning given in section 45

    ingredient means any non-cannabis derived substance that is added to retail cannabis to achieve a desired effect and includes all additives

    licence means a licence that is issued under this Act and is in force

    liquid containing cannabis means a substance with cannabis in it that—

    1. is liquid at room temperature; and

    2. is not the result of an extraction or concentration process


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    Minister means the Minister of the Crown who, under the authority of a war- rant or with the authority of the Prime Minister, is responsible for the adminis- tration of this Act

    prescribed means prescribed by regulations made under this Act

    public place has the same meaning as in section 2 of the Summary Offences Act 1981

    Public Service has the same meaning as in section 27 of the State Sector Act 1988

    regulations means regulations made under this Act

    smoke or smoking

    1. means smoking, holding, or otherwise having control over an ignited cannabis product or cannabis plant; and

    2. includes smoking, holding, or otherwise having control over an ignited product or thing whose customary use is or includes the inhalation from it of the emission produced from its combustion or the combustion of any part of it; but

    3. does not include holding or having control over an ignited product or thing customarily used as incense

    solid containing cannabis means cannabis that—

    1. is in solid form at room temperature; and

    2. is not the result an extraction or concentration process

    standardised cannabis symbol means the symbol that must appear on the label of all cannabis products under this Act

    THC means delta-9-tetrahydrocannabinol (the main psychoactive chemical in cannabis products)

    THCA means delta-9-tetrahydrocannabinolic acid (a non-psychoactive chem- ical present in fresh, undried, cannabis plant material and some cannabis prod- ucts and which may be converted to THC by processes such as drying and heating)

    trade mark includes any trade mark whether or not it is registered or regis- trable as such under the Trade Marks Act 2002, and also includes—

    1. any brand name:

    2. any company name, where that name is used for advertising or promo- tional purposes:

    3. any name, word, or mark that so resembles any trade mark that it is likely to be taken as, or confused with, that trade mark

    vape or vaping means inhaling or exhaling vapour from cannabis or a cannabis product, whether or not a device (for example, a vaporiser, bong, or other accessory) is used


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    Cannabis Legalisation and Control Bill Part 2 cl 11

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    weight of potency means the total weight of THC, taking into account the maximum content of THC that would be obtained if THCA was converted into THC (expressed in milligrams or grams).

  2. For the purposes of the definition of cannabis accessory in subsection (1), a thing that is commonly used in the consumption of cannabis is taken to be rep- resented as being for use in the consumption of cannabis if the thing is sold at the same point of sale as cannabis.

  1. Relationship with Food Act 2014 and Agricultural Compounds and Veterinary Medicines Act 1997

    1. Nothing in the Food Act 2014 or the Agricultural Compounds and Veterinary Medicines Act 1997 or any regulations made under either of those Acts, or any standards referred to in either of those Acts, applies to cannabis or cannabis products.

    2. However, regulations made under this Act may apply provisions of any of the following to the cultivation or processing of cannabis and cannabis products:

      1. the Food Act 2014 or the Agricultural Compounds:

      2. the Veterinary Medicines Act 1997:

      3. regulations made under either of those Acts:

      4. standards referred to in either of those Acts.

  2. Transitional, savings, and related provisions

    The transitional, savings, and related provisions set out in Schedule 1 have effect according to their terms.

  3. Act binds the Crown

    This Act binds the Crown.


    Part 2

    Key regulatory roles

    Cannabis Regulatory Authority

  4. Cannabis Regulatory Authority established

    This section establishes the Cannabis Regulatory Authority in the Public Ser- vice.


    Authority’s main objective and functions

  5. Main objective of Authority

    1. The main objective of the Authority is to oversee regulation of the supply and use of cannabis in New Zealand in a way that—


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      1. promotes the well-being of New Zealanders; and

      2. reduces the multiple harms associated with cannabis use; and

      3. reduces the overall use of cannabis over time.

    2. When performing its functions under this Act, the Authority must act in a way that furthers this objective.

    3. The Authority must operate in a way that allows it to develop meaningful rela- tionships with iwi and Māori representatives with appropriate expertise to give effect to the required functions.

  6. Functions

    The Authority will co-operate with any other law enforcement, regulatory, or statutory agency to perform the following functions, including (without limita- tion):

    1. establishing and monitoring the cannabis cultivation cap in accordance with section 22; and

    2. licensing and authorising controlled activities in the cannabis supply chain; and

    3. setting the criteria and conditions for licences and authorisations for con- trolled activities; and

    4. setting limits on the allowable levels of THC and other substances in cannabis and cannabis products; and

    5. monitoring and enforcing compliance with licence and authorisation conditions and criteria, including requirements for cannabis products to meet production, testing, and labelling standards, quality controls, and restrictions on the operations of retailers and consumption premises; and

    6. implementing decisions made in appeals from decisions of the Authority and the appeals authority; and

    7. administering and collecting excise taxes, levies, and fees charged as part of the cannabis regulatory regime; and

    8. monitoring and enforcing compliance with legislation and regulations permitting the private cultivation (home-growing) of cannabis and provi- sions relating to the possession and use of cannabis; and

    9. developing good practice guidelines for individuals who choose to grow cannabis at home in accordance with legislative and regulatory provi- sions; and

    10. conducting (directly or indirectly) public education campaigns to—

      1. raise public awareness of the harms associated with cannabis use, including harms presented to children and young people by sec- ond-hand cannabis emissions, and promote responsible use and help-seeking behaviours; and



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        Cannabis Legalisation and Control Bill Part 2 cl 14

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      2. raise public awareness of the law under this Act governing canna- bis use in New Zealand, including what activities the law permits, restricts, and prohibits, and the effects of not complying with the Act; and

    11. collecting and analysing data and reporting on the dynamics of the sup- ply and demand for, and use of, cannabis in New Zealand, to ensure the regulatory regime is meeting its objectives; and

    12. promoting and supporting research focused on understanding and report- ing on cannabis use in New Zealand and informing evidence-based approaches to preventative and harm-reduction activities; and

    13. regulating cannabis production and marketing; and

    14. regulating cannabis accessories and certain substances added to canna- bis; and

    15. facilitating a whole of government approach to addressing non-compli- ance that is health based and focused on harm reduction, in particular in relation to young people.

  1. Authority must prepare and publish national plan

    1. The Authority must, not later than 6 months after the commencement of this Act, prepare and publish a national plan setting out how it will give effect to its main objective and the purposes of this Act.

    2. The national plan must include a public health, drug education, and treatment services strategy in accordance with section 21 (the harm reduction strat- egy).

    3. The national plan must include a strategy for determining the cultivation cap in accordance with section 22.

    4. A further national plan must be prepared and published not later than 6 months after the statutory review of the operation of the Act under section 267 and at intervals of 5 years after that.

    5. The Authority must develop the national plan in consultation with the advisory committee.

  2. Regular reports on national plan

    1. The Authority must—

      1. deliver an annual report to the Minister on how it has implemented the national plan and with what outcomes; and

      2. publish a copy of each report on an Internet site maintained by, or on behalf of, the Authority.

    2. The Authority must ensure that the report is approved by the advisory commit- tee before it is delivered to the Minister.


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  3. Register of licence holders

    The Authority must develop and maintain a register of licence holders that con- tains such information as is prescribed by regulations made under section 265.

  4. Local licensed premises policies

    1. The Authority must prepare a local licensed premises policy for the territory of each district and city council.

    2. Each local licensed premises policy must provide guidance relating to the loca- tion and operating hours for premises operating under a cannabis distribution licence within the territory.

    3. In preparing each local licensed premises policy, the Authority must take into account the following factors:

      1. the characteristics of the territory and parts of the territory:

      2. the locations of kindergartens, early childhood centres, schools, tertiary institutions, places of worship, parks, sports facilities, swimming pools, playgrounds, and other community facilities:

      3. the cumulative effect of the presence or absence of other licensed prem- ises in the same territory or part of the territory:

      4. whether the amenity and good order of the territory would be likely to be reduced, to more than a minor extent, by the effects of premises operat- ing under a cannabis distribution licence.

    4. A local licensed premises policy may provide differently for different parts of the territory to which it relates.

    5. A local licensed premises policy may apply to 1 or more parts of the territory to which it relates.

    6. The Authority must consult with local persons and groups who will or may be affected by, or have an interest in, the local licensed premises policy.

    7. Part 6 of the Local Government Act 2002 applies to a policy made under this section.


    Cannabis Advisory Committee

  5. Cannabis Advisory Committee established

    This section establishes the Cannabis Advisory Committee.

  6. Functions of advisory committee

    The functions of the advisory committee are—

    1. to provide advice to the Authority on the following matters:

      1. the development of the national plan:

      2. the annual report on the national plan:


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        Cannabis Legalisation and Control Bill Part 2 cl 20

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      3. reviewing and setting the THC limits for each class of cannabis:

      4. the setting and allocation of the annual cultivation cap on licensed cannabis production:

      5. developing the harm reduction criteria used across the licensing regime:

      6. any other matters relating to the regulatory regime and its oper- ation within the expertise of the advisory committee and on which the Authority seeks the committee’s advice; and

    2. to provide advice to the Minister on any matters relating to the regula- tory regime and its operation within the expertise of the advisory com- mittee and on which the Minister seeks the committee’s advice.

  1. Membership, procedures, etc of advisory committee

    1. The advisory committee must comprise members who, between them, have the range of expertise necessary for the committee to perform its advisory func- tions under this Act.

    2. The membership must include iwi and Māori representation with appropriate expertise, and representation of the interests of specific population groups, including children and young people, together with expertise from the health, justice, and social sectors.

    3. No person who has a direct interest in the cannabis industry regulated under this Act may be appointed as a member of the advisory committee.

    4. A person has a direct interest if they—

      1. are an individual who holds a licence for a controlled activity; or

      2. are a director, partner, or the key person or responsible person of an entity that holds a licence for a controlled activity; or

      3. have a direct financial interest in relation to a business carried on under a licence for a controlled activity; or

      4. have any other interest, financial or otherwise, that could reasonably be regarded as likely to influence them in the performance of their role as a member of the advisory committee.

  2. Advisory committee: reporting

    1. The advisory committee may report directly to the Minister.

    2. The advisory committee must annually provide the Minister with a written report of its operations.


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    Part 2 cl 21 Cannabis Legalisation and Control Bill

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    Harm reduction strategy

  3. Process for developing harm reduction strategy

    1. The Authority must develop and publish a harm reduction strategy as part of each national plan.

    2. The harm reduction strategy must include—

      1. measures to promote public health by preventing and minimising the harm from cannabis use; and

      2. the development and delivery of drug education programmes focussed on addressing harmful cannabis use; and

      3. engagement with commissioning agencies with treatment of those expe- riencing harm from cannabis and their families and whānau; and

      4. the evaluation approach and timeframes for reporting on the outcomes of the drug education programmes and treatment services; and

      5. independent scientific research associated with cannabis use including (for example) longitudinal research on the social and economic impacts of cannabis use, particularly the impacts on different cultural groups.

    3. Variations in needs between regions must be taken into account in developing the harm reduction strategy and the strategy must accommodate those differen- ces as the Authority considers necessary to meet its objective.

    4. In developing the harm reduction strategy, the Authority must—

      1. consult the persons and organisations that the Authority considers to be representative of regional and cultural interests; and

      2. seek the input of persons and organisations with expertise relevant to the focus of the strategy.

    Cannabis cultivation cap

  4. Cannabis cultivation cap

  1. The Authority must set an annual cultivation cap by notice in the Gazette after having regard to the purposes of this Act and the objectives and functions of the Authority.

  2. The annual cultivation cap sets the total quantity of dried cannabis (or its equivalent) for sale or supply by holders of a cannabis production licence with a cultivation activity authorisation or a micro-cultivation activity authorisation to holders of a cannabis production licence with a processing activity author- isation.

  3. The Authority may adjust the annual cultivation cap by notice in the Gazette after having regard to the purposes of this Act and the objectives and functions of the Authority.


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    Cannabis Legalisation and Control Bill Part 3 cl 25

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  4. The Authority must, when it sets an annual cultivation cap, determine which share of the cap will be allocated amongst holders of a cannabis production licence with a cultivation activity authorisation and which share will be alloca- ted amongst holders of a cannabis production licence with a micro-cultivation activity authorisation.

  5. After setting an annual cultivation cap and determining which share of the cap will be allocated amongst holders of a cannabis production licence with a micro-cultivation activity authorisation, the Authority must, by notice in the Gazette, set an annual micro-cultivation cap that applies to all holders of a can- nabis production licence with a micro-cultivation activity authorisation.


Part 3

General provisions concerning personal use of cannabis

Subpart 1—Growing cannabis for personal use

  1. Purpose and application of subpart

    1. The purpose of this subpart is to set out the conditions under which the per- sonal use and growing of cannabis is lawful.

    2. This Part applies subject to section 60 (which creates certain exemptions for licence holders and others).

  2. Limits on individuals growing cannabis for personal use

    1. A person may grow not more than 2 cannabis plants on a property or part of a property in respect of which they have a qualifying legal interest.

    2. A person who contravenes subsection (1) by growing more than 2 cannabis plants commits an infringement offence and is liable to—

      1. an infringement fee of $500; or

      2. a fine imposed by the court not exceeding $1,000.

    3. A person who contravenes subsection (1) by knowingly growing 10 or more cannabis plants commits an offence and is liable on conviction to—

      1. imprisonment for a term not exceeding 3 months; or

      2. a fine not exceeding $2,000.

    4. For the purposes of this section, a person has a qualifying legal interest if they have a legal interest (whether as an owner, a lessee, a person with a licence to occupy, or otherwise) that includes a right to grow plants (not excluding canna- bis plants) for their personal use.

  3. Maximum number of plants that can be grown on property for personal use

    1. The maximum number of plants that can be grown on a property is 4.


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    2. If more than 4 cannabis plants are grown on a property, there is a contravention of subsection (1), and the following persons commit an infringement offence:

      1. an occupier of the property:

      2. the owner of the property, if the property is unoccupied.

    3. A person who commits an infringement offence specified in subsection (2) is liable to—

      1. an infringement fee of $500; or

      2. a fine imposed by the court not exceeding $1,000.

    4. Despite subsection (2), an infringement notice may be issued under section 48 to only 1 person in relation to an act or acts alleged to constitute 1 contra- vention of subsection (1).

  4. Conditions limiting place where cannabis may be grown

    1. A cannabis plant may be grown under section 24 only if the cannabis plant is grown—

      1. out of public sight; or

      2. in an area that is not accessible from any public area.

    2. In subsection (1)(b), public area means an area to which the public has unrestricted access.

  5. Compliance order may be issued by authorised enforcement officer

    1. An authorised enforcement officer may issue a compliance order requiring a person who contravenes section 26(1) to do any specified thing for the pur- pose of preventing further non-compliance with that provision.

    2. The order must specify a time within which it must be complied with.

    3. An order must be addressed to—

      1. an occupier of the property:

      2. the owner of the property, if the property is unoccupied.

    4. An owner or occupier who breaches or fails to comply with a compliance order issued under this section commits an infringement offence and is liable to—

      1. an infringement fee of $200; or

      2. a fine imposed by the court not exceeding $500.

    5. Despite subsection (4), an infringement notice may be issued under section 48 to only 1 person in relation to an act or acts alleged to constitute 1 contra- vention of subsection (4).

  6. Prohibition on growing cannabis in public place

  1. A person who grows 1 or more cannabis plants in a public place commits an infringement offence.


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      Cannabis Legalisation and Control Bill Part 3 cl 31

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  2. A person who contravenes subsection (1) commits an infringement offence and is liable to—

    1. an infringement fee of $500; or

    2. a fine imposed by the court not exceeding $1,000.

Subpart 2—Possession, purchase, age, place, sale, supply and sharing restrictions

  1. Possession limit for persons aged 20 years or older

    1. A person aged 20 years or older must not have more than 14 grams of dried cannabis (or its equivalent) in their possession in a public place or in a vehicle that is in a public place.

    2. A person who contravenes subsection (1) commits an infringement offence and is liable to—

      1. an infringement fee of $200; or

      2. a fine imposed by the court not exceeding $500.

    3. This section is subject to section 30 and to section 60 (which creates certain exemptions for licence holders and others).

    4. In this section, public place includes—

      1. premises with a retail authorisation; and

      2. consumption premises.

  2. Person may have cannabis plants or larger quantities of cannabis in public in course of moving

    1. Section 29(1) does not prevent a person from having a cannabis plant in their possession in a public place or in a vehicle in a public place for the purposes of, and in the course only, of transferring the plant from one place where it has been growing to another place where the person may lawfully, and intends to, grow it.

    2. Section 29(1) does not apply to a person who has cannabis in their possession in a public place or in a vehicle in a public place if it is being held for the pur- poses of transporting it from the person’s place of residence to another place where they will permanently reside.

  3. Purchase limit for persons aged 20 years or older

    1. A person aged 20 years or older may not purchase more than 14 grams of dried cannabis (or its equivalent) per day.

    2. A person who contravenes subsection (1) commits an infringement offence and is liable to—

      1. an infringement fee of $200; or

      2. a fine imposed by the court not exceeding $500.


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  4. Minimum age to possess cannabis is 20 years

    1. A person must not possess cannabis, unless they are 20 years or older.

    2. A person who contravenes subsection (1) commits an infringement offence and is liable to—

      1. an infringement fee of $100; or

      2. a fine imposed by the court not exceeding $200.

  5. Infringement notice under section 32(2) may include condition

    1. An enforcement officer may include the condition specified in subsection (2) in an infringement notice issued to a person for an infringement offence under section 32.

    2. The enforcement officer may require the person to engage with a support ser- vice within a period prescribed in the notice.

    3. If the condition is fulfilled and the relevant person or organisation specified in the infringement notice is notified in the prescribed manner and within the pre- scribed period that the condition has been fulfilled,—

      1. the infringement fee is waived; and

      2. the infringement notice is to be treated as revoked.

  6. Social sharing

    1. A person may not gift, share with, or otherwise supply or offer to supply to another person any form of cannabis unless—

      1. that other person is aged 20 years or older; and

      2. the amount is not more than 14 grams of dried cannabis (or its equiva- lent); and

      3. the person does not take that action for the purpose of either—

        1. obtaining the ownership or possession of or control over any prop- erty, or any privilege, service pecuniary advantage, benefit, or val- uable consideration, directly or indirectly; or

        2. avoiding a material detriment.

    2. To avoid doubt, it is not lawful for a parent, guardian, or caregiver of a person aged 19 years or younger to gift, share with, or otherwise supply or offer to supply to the person any form of cannabis.

  7. Prohibition against supplying cannabis to person aged 19 years or younger

  1. A person must not supply, or offer to supply, cannabis to a person aged 19 years or younger.

  2. A person who contravenes subsection (1) commits an offence and is liable on conviction, to a fine not exceeding $5,000.


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  3. In proceedings for an offence against subsection (2), it is a defence if the defendant proves that they had reasonable grounds to believe the recipient to be a person aged 20 years or older.

  1. Restriction on supply of cannabis to persons aged 20 years or older

    1. A person must not supply, or offer to supply, more than 14 grams of cannabis to a person aged 20 years or older.

    2. A person who contravenes subsection (1) is liable on conviction to a fine not exceeding $3,000.

  2. Restrictions on place of consumption

    1. A person must not consume cannabis in a public place or in a vehicle that is in a public place.

    2. For the purposes of this section, a public place does not include a consumption premises authorised by a licence.

    3. A person who contravenes subsection (1) commits an infringement offence and is liable to—

      1. an infringement fee of $200; or

      2. a fine imposed by the court not exceeding $500.

  3. Prohibition on sale of cannabis or cannabis products to persons aged 19 years or younger

    1. A person must not sell or offer to sell cannabis or a cannabis product to a per- son aged 19 years or younger, knowing that the person is 19 years or younger or being reckless as to whether that is the case.

    2. A person who contravenes subsection (1) commits an offence and is liable on conviction to—

      1. in the case of an individual, a term of imprisonment not exceeding 4 years:

      2. in any other case, a fine not exceeding $150,000.

  4. Sale of cannabis or cannabis products

    1. A person must not sell or offer to sell cannabis or a cannabis product without holding a licence authorising the person to do so.

    2. A person who contravenes subsection (1) commits an offence and is liable on conviction to—

      1. in the case of an individual, a term of imprisonment not exceeding 2 years; or

      2. in any other case, a fine not exceeding $100,000.


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  5. Supplying cannabis products by mail order or courier prohibited

    1. A person must not supply cannabis products to another person by mail or any other delivery service, except as authorised by regulations.

    2. A person who contravenes this section commits an infringement offence and is liable to—

      1. an infringement fee of $500; or

      2. a fine imposed by the court not exceeding $1,000.

  6. Prohibition on importing or exporting cannabis

    1. A person may not import or export cannabis.

      Offence of importing or exporting cannabis

    2. A person who knowingly imports or exports cannabis commits an offence and is liable on conviction to,—

      1. in the case of an individual,—

        1. a term of imprisonment not exceeding 2 years; or

        2. a fine not exceeding $10,000; or

      2. in any other case, a fine not exceeding $50,000.

        Infringement offence of importing or exporting cannabis

    3. A person who imports or exports cannabis commits an infringement offence and is liable to—

      1. an infringement fee of $200; or

      2. a fine imposed by the court not exceeding $500.

  7. Prohibition against dangerous methods of unlicensed processing of cannabis concentrates

  1. A person must not use a dangerous production method to separate resins from cannabis to produce cannabis concentrates.

  2. To avoid doubt, subsection (1) does not preclude a person from making can- nabis-infused products if the person does not use a dangerous production method.

  3. For the purpose of subsections (1) and (2), a dangerous production method is a production method that uses any prescribed organic solvent to extract resin or produce cannabis concentrates.

  4. A person who contravenes subsection (1) by knowingly using a dangerous production method commits an offence and is liable on conviction to,—

    1. in the case of an individual,—

      1. a term of imprisonment not exceeding 2 years; or

      2. a fine not exceeding $10,000; or


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        Cannabis Legalisation and Control Bill Part 3 cl 46

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    2. in any other case, a fine not exceeding $50,000.

  1. Offence to expose persons aged 19 years or younger to cannabis emissions

    1. A person who smokes or vapes cannabis must not expose a person aged 19 years or younger to the emissions of that smoking or vaping.

    2. A person who contravenes subsection (1) commits an infringement offence and is liable to—

      1. an infringement fee of $500; or

      2. a fine imposed by the court, not exceeding $1,000.

  2. Infringement notice under section 43(2) may include condition

    1. An enforcement officer may include the condition referred to in subsection

    2. in an infringement notice issued to a person for an infringement offence under section 43.

    1. The enforcement officer may require the person to engage with a support ser- vice within a period prescribed in the notice.

    2. If the condition is fulfilled and the relevant person or organisation specified in the infringement notice is notified in the prescribed manner and within the pre- scribed period that the condition has been fulfilled,—

      1. the infringement fee is waived; and

      2. the infringement notice is to be treated as revoked.

    Subpart 3—Procedure for infringement offences

  3. Interpretation

    In this subpart,—

    infringement fee means an infringement fee specified in sections 24(2), 25(3), 27(4), 28(2), 29(2), 31(2), 32(2), 37(3), 40(2), 41(3), or 43(2)

    infringement offence means an infringement offence specified in sections 24(2), 25(3), 27(4), 28(2), 29(2), 31(2), 32(2), 37(3), 40(2), 41(3), or

    43(2).

  4. Proceedings for infringement offences

    1. A person who is alleged to have committed an infringement offence may—

      1. be proceeded against by the filing of a charging document under section 14 of the Criminal Procedure Act 2011; or

      2. be issued with an infringement notice under section 48.

    2. Proceedings commenced in the manner described in subsection (1)(a) do not require the leave of a District Court Judge or Registrar under section 21(1)(a) of the Summary Proceedings Act 1957.


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      Part 3 cl 47 Cannabis Legalisation and Control Bill

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    3. See section 21 of the Summary Proceedings Act 1957 for the procedure that applies if an infringement notice is issued.

  5. Who may issue infringement notices

    Every enforcement officer or class of enforcement officers authorised by the Authority for the purpose may issue infringement notices under this Act.

  6. When infringement notice may be issued

    An enforcement officer may issue an infringement notice to a person if the enforcement officer believes on reasonable grounds that the person is commit- ting, or has committed, an infringement offence.

  7. Infringement notice may be revoked

    1. The enforcement officer who issued the infringement notice or any other enforcement officer may revoke an infringement notice before—

      1. the infringement fee is paid; or

      2. an order for payment of a fine is made or deemed to be made by a court under section 21 of the Summary Proceedings Act 1957.

    2. An infringement notice is revoked by giving written notice to the person to whom it was issued that the notice is revoked.

    3. The revocation of an infringement notice under this section is not a bar to any other enforcement action against the person to whom the notice was issued in respect of the same matter.

  8. What infringement notice must contain

    An infringement notice must be in the form prescribed in regulations and must contain the following particulars:

    1. details of the alleged infringement offence that fairly inform a person of the time, place, and nature of the alleged offence:

    2. the amount of the infringement fee:

    3. the address of the enforcement authority:

    4. how the infringement fee may be paid:

    5. the time within which the infringement fee must be paid:

    6. a summary of the provisions of section 21(10) of the Summary Proceed- ings Act 1957:

    7. a statement that the person served with the notice has a right to request a hearing:

    8. a statement of what will happen if the person served with the notice nei- ther pays the infringement fee nor requests a hearing:

    9. any other matters prescribed in regulations.


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Cannabis Legalisation and Control Bill Part 3 cl 54

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  1. How infringement notice may be served

    1. An infringement notice may be served on the person who the enforcement offi- cer believes on reasonable grounds is committing or has committed the infringement offence by—

      1. delivering it to the person or, if the person refuses to accept it, bringing it to the person’s notice; or

      2. leaving it for the person at the person’s last known place of residence with another person who appears to be of or over the age of 14 years; or

      3. leaving it for the person at the person’s place of business or work with another person; or

      4. sending it to the person by prepaid post addressed to the person’s last known place of residence or place of business or work; or

      5. sending it to an electronic address of the person in any case where the person does not have a known place of residence or business in New Zealand.

    2. Unless the contrary is shown—

      1. an infringement notice (or a copy of it) sent by prepaid post to a person under subsection (1) is to be treated as having been served on that per- son on the fifth working day after the date on which it was posted; and

      2. an infringement notice sent to a valid electronic address is to be treated as having been served at the time the electronic communication first enters an information system that is outside the control of the enforce- ment authority.

  2. Payment of infringement fees

    All infringement fees paid in respect of infringement offences must be paid into a Crown bank account.

  3. Reminder notices

    A reminder notice must be in the form prescribed in regulations, and must include the same particulars, or substantially the same particulars, as the infringement notice.

  4. Forfeiture for infringement offence

    1. If an infringement notice is issued to a person in respect of any infringement offence, any cannabis, cannabis product, or cannabis accessory in respect of which the infringement offence is committed is forfeited to the Crown on the earliest of the following to occur:

      1. the infringement fee for the offence is paid:

      2. a copy of a reminder notice in respect of the infringement offence is filed, or a reminder notice is deemed to have been filed, in a court under


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        Part 3 cl 55 Cannabis Legalisation and Control Bill

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        section 21 of the Summary Proceedings Act 1957 before the close of the date that is 6 months after the date on which the offence is alleged to have been committed:

      3. the enforcement agency and the person enter into an aITangement under section 21(3A) of the Summary Proceedings Act 1957 allowing the per­ son to pay the relevant infringement fee by instalments:

      4. the person is found guilty of, or pleads guilty to, the infringement offence.

    2. A court may order that any cannabis, cannabis product, or cannabis accesso1y used in respect of the commission of an infringementoffence be forfeited to the Crown if-

      1. proceedings for an infringement offence are commenced by the filing of a charging doclllllent under section 14 of the C1iminal Procedure Act 2011;and

      2. a person is found guilty of, or pleads guilty to, the infringement offence.

  5. Amendment to Summary Proceedings Act 1957

    1. This section amends the Summaiy Proceedings Act 1957.

    2. In section 2(1), definition of infringement notice, after par·agraph Ge), inse1t : Gf) section 48 of the Cannabis Legalisation and Control Act [year]; or

  6. Amendment to Oranga Tamariki Act 1989

    1. This section amends the Oranga Tama1iki Act 1989.

    2. In section 272(3), inse1t:

    (bb) an infringement offence against the Cannabis Legalisaiton and Control Act 2020 :


    Part4

    Licences and activity authorisations

  7. Purpose of Part

    The purpose of this Part is to contribute to haim reduction, including the harm caused by illicit supply, by establishing a regime to control the supply of can­ nabis in New Zealand by promoting, as far· as possible, equitable access to a stable supply of licensed cannabis and cannabis products available for purchase in New Zealand.


    Subpart I- Controlled activities

  8. Types of controlled activity

  1. The following types of activity are controlled activities:


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    Cannabis Legalisation and Control Bill Part 4 cl 60

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    1. a nursery activity:

    2. a micro-cultivation activity:

    3. a cultivation activity:

    4. a processing activity:

    5. a wholesaling and distribution activity:

    6. a retail activity:

    7. a consumption premises activity:

    8. a nursery retail activity:

    9. a research activity:

    10. a testing activity:

    11. a destruction activity.

  2. An activity that is authorised by Part 3 (for example, an individual growing 1 or 2 plants for personal use in a permitted place, or social sharing permitted by section 34) is not a controlled activity for the purposes of this Part.

  1. Person must hold licence to conduct controlled activity

    1. A person may carry out a controlled activity only if they hold a licence under this Act that authorises them to do so.

    2. A person who carries out a controlled activity without a licence under this Act that authorises them to do so commits an offence and is liable on conviction to a fine not exceeding $100,000.

    3. No proceeding may be brought under this section if proceedings have already been brought or an infringement notice has been issued under Part 3 in rela- tion to the same act or omission.

  2. Exceptions from Part 3 for certain licence holders and others

    1. Section 29(1) does not apply to a licence holder, or employees or agents of the licence holder, while cannabis or a cannabis product is being transported in the course of business authorised by the licence.

    2. Sections 31 and 32 do not make it unlawful for a person aged 19 years or younger to possess, purchase, or receive cannabis in the course of business if they are employed or engaged in the cultivation, processing, or distribution of cannabis or a cannabis product, if the activity is authorised by an appropriate licence.

    3. Sections 24 to 26 do not apply in relation to a licence holder, or employees or agents of the licence holder, if cannabis is grown in the course of business, being an activity authorised by an appropriate licence.

    4. Sections 34, 36, and 40 do not apply in relation to the supply of cannabis by or to any licence holder, their employees, or agents in the course of busi- ness, being an activity authorised by an appropriate licence.


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      Part 4 cl 61 Cannabis Legalisation and Control Bill

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    5. Section 41 does not apply in relation to the importation of cannabis seeds under a nursery activity authorisation under this Act.

  3. Types of licences

    1. A person may hold only one of the following types of licence at any time:

      1. a cannabis production licence, which authorises the licence holder to carry out one or more of the following classes of activity:

        1. a nursery activity:

        2. a cultivation activity:

        3. a micro-cultivation activity:

        4. a processing activity:

        5. a wholesale and distribution activity:

        6. a nursery retail activity:

        7. a research activity:

        8. a destruction activity:

      2. a cannabis testing licence, which authorises the licence holder to carry out 1 or more of the activities described in section 70:

      3. a cannabis distribution licence, which authorises the licence holder to carry out a retail activity, a consumption premises activity, or both.

    2. A cannabis production licence may only authorise the licence holder to carry out a combination of activities if that combination of activities is not prohibited under Schedule 2.

    3. A person who holds a licence under this Act must conduct their activities under the licence in a manner that is consistent with the objectives of the Act.

    Cannabis production


  4. Nursery activity

  1. A nursery activity means any activity listed in subsection (2) that is done for a purpose relating to the supply of growing stock for cultivation within the licensing regime.

  2. The activities permitted under a nursery activity authorisation are to—

    1. grow, supply, and sell growing stock to a person who holds a cannabis production licence with a cultivation activity authorisation, a micro-cul- tivation activity authorisation, a nursery retail authorisation, or a pro- cessing activity authorisation:

    2. carry out research and testing incidental to the cultivation of growing stock:

    3. import and supply seeds to a person who holds a cannabis production licence with a cultivation activity authorisation, a micro-cultivation


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      Cannabis Legalisation and Control Bill Part 4 cl 64

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      activity authorisation, a processing activity authorisation, or a nursery retail activity authorisation:

    4. supply growing stock to a person who holds a cannabis production licence with a destruction activity authorisation:

    5. destroy growing stock in accordance with regulations made under sec- tion 265.

  1. Cultivation activity

    1. A cultivation activity means any activity listed in subsection (2) that is done for a purpose relating to the cultivation of cannabis for sale or supply.

    2. The activities permitted under a cultivation activity authorisation are to—

      1. purchase growing stock from a person who holds a cannabis production licence with a nursery activity authorisation:

      2. cultivate cannabis:

      3. carry out research and testing incidental to the cultivation of cannabis:

      4. sell and supply fresh cannabis and dried cannabis to a person who holds a cannabis production licence with a processing activity authorisation:

      5. supply cannabis to a person who holds a cannabis production licence with a destruction activity authorisation:

      6. destroy cannabis in accordance with regulations made under section 265.

  2. Micro-cultivation activity

    1. A micro-cultivation activity means any activity listed in subsection (2) that is done for a purpose relating to the small-scale cultivation of cannabis for sale or supply.

    2. The activities permitted under a micro-cultivation activity authorisation are to—

      1. purchase growing stock from a person who holds a cannabis production licence with a nursery activity authorisation:

      2. cultivate cannabis up to the maximum amount permitted for the holder of a cannabis production licence with a micro-cultivation activity author- isation under regulations:

      3. carry out research and testing incidental to the cultivation of cannabis:

      4. sell and supply fresh cannabis and dried cannabis to a person who holds a cannabis production licence with a processing activity authorisation:

      5. supply cannabis to a person who holds a cannabis production licence with a destruction activity authorisation:

      6. destroy cannabis in accordance with regulations made under section 265.


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  3. Processing activity

    1. A processing activity means any activity listed in subsection (2) that is done for a purpose relating to the processing, packaging, and labelling of cannabis for sale or supply.

    2. The activities permitted under a processing activity authorisation are to—

      1. purchase growing stock from a person who holds a cannabis production licence with a nursery activity authorisation:

      2. purchase dried cannabis and fresh cannabis from a person who holds a cannabis production licence with a cultivation activity authorisation or a micro-cultivation activity authorisation:

      3. carry out research and testing incidental to the processing of cannabis and cannabis products:

      4. produce cannabis and cannabis products:

      5. package and label cannabis and cannabis products for sale and distribu- tion to—

        1. a person who holds a cannabis production licence with a whole- sale activity authorisation:

        2. a person who holds a cannabis production licence with a nursery retail activity authorisation:

        3. a person who holds a cannabis distribution licence with a retail activity authorisation:

      6. supply cannabis and cannabis products to a person who holds a cannabis production licence with a destruction activity authorisation:

      7. destroy cannabis and cannabis products in accordance with regulations made under section 265.

  4. Wholesale and distribution activity

  1. A wholesale and distribution activity means any activity listed in subsec- tion (2) that is done for a purpose relating to the distribution of processed can- nabis and cannabis products for sale or supply.

  2. The activities permitted under a wholesale and distribution activity authorisa- tion are to—

    1. purchase packaged and labelled cannabis and cannabis products from a person who holds a cannabis production licence with a processing activ- ity authorisation:

    2. sell and distribute packaged and labelled cannabis and cannabis products to a person who holds a cannabis distribution licence with a retail activ- ity authorisation:

    3. supply cannabis to a person who holds a cannabis production licence with a destruction activity authorisation:


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      Cannabis Legalisation and Control Bill Part 4 cl 68

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    4. destroy cannabis in accordance with regulations made under section 265.

  1. Nursery retail activity

    1. A nursery retail activity means any activity described in subsection (2) that is done for a purpose relating to the sale of cannabis seeds and growing stock to the public.

    2. The activities permitted under a nursery retail activity authorisation are to—

      1. purchase growing stock from a person who holds a cannabis production licence with a nursery activity authorisation or a processing activity authorisation:

      2. sell growing stock to the public in accordance with any packaging and labelling requirements of this Act or regulations made under it:

      3. supply growing stock to a person who holds a cannabis production licence with a destruction activity authorisation:

      4. destroy growing stock in accordance with regulations made under sec- tion 265.

  2. Research activity

    1. A research activity means any activity listed in subsection (2) that is done for a purpose relating to the research and development of cannabis and canna- bis products.

    2. The activities permitted under a research activity authorisation are to—

      1. cultivate cannabis:

      2. produce cannabis and cannabis products:

      3. test, on humans only, samples of cannabis and cannabis products:

      4. supply samples of cannabis, including growing stock, and cannabis products to a person who holds a cannabis production licence with a nursery activity authorisation, a cultivation activity authorisation, a micro-cultivation activity authorisation, or a processing activity author- isation:

      5. supply cannabis to a person who holds a cannabis production licence with a destruction activity authorisation:

      6. destroy cannabis in accordance with regulations made under section 265.

    3. A research activity authorisation does not permit a licence holder to cultivate or produce cannabis or cannabis products for sale or supply except to the extent provided for in subsection (2)(d).


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  3. Destruction activity

    1. A destruction activity means an activity described in subsection (2) that is done for a purpose relating to the safe and secure destruction of cannabis and cannabis products in accordance with regulations made under section 265.

    2. The activities permitted under a destruction activity authorisation are to—

      1. obtain cannabis and cannabis products from any other person:

      2. destroy cannabis and cannabis products in accordance with regulations made under section 265.

    Cannabis testing


  4. Testing activity

    1. A testing activity means any activity listed in subsection (2) that is done for a purpose relating to the testing and verifying of cannabis and cannabis prod- ucts.

    2. The activities permitted under a cannabis testing licence are to—

      1. alter the chemical or physical properties of cannabis by any means:

      2. certify the quality, quantity, and potency of cannabis and cannabis prod- ucts before they are made available to the public:

      3. carry out any testing of cannabis or cannabis products required by the Authority under this or any other enactment:

      4. supply cannabis to a person who holds a cannabis production licence with a destruction activity authorisation:

      5. destroy cannabis in accordance with regulations made under section 265.


    Cannabis distribution

  5. Retail activity

  1. A retail activity means any activity listed in subsection (2) that is done for a purpose relating to the sale of processed cannabis and cannabis products to the public.

  2. The activities permitted under a retail activity authorisation are to—

    1. purchase packaged and labelled cannabis and cannabis products from a person who holds a cannabis production licence with a processing activ- ity authorisation, a wholesale and distribution activity authorisation, or a nursery retail authorisation:

    2. sell cannabis products to the public:

    3. sell cannabis accessories:

    4. sell growing stock:


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      Cannabis Legalisation and Control Bill Part 4 cl 74

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    5. supply cannabis to a person who holds a cannabis production licence with a destruction activity authorisation:

    6. destroy cannabis in accordance with regulations made under section 265.

  1. Consumption premises activity

    1. A consumption premises activity means any activity described in subsec- tion (2) that is done for a purpose relating to the provision of public premises for the consumption of cannabis.

    2. The activities permitted under a consumption premises activity authorisation are to—

      1. provide a space for the on-site consumption of cannabis and cannabis products, including cannabis and cannabis products obtained elsewhere:

      2. supply cannabis to a person who holds a cannabis production licence with a destruction activity authorisation:

      3. destroy cannabis in accordance with regulations made under section 265.


    Subpart 2—Licence applications

    Eligibility requirements

  2. Individuals who are eligible to hold licences

    An individual is eligible to hold a licence if the individual—

    1. has completed an application for the licence; and

    2. is 20 years or older; and

    3. is a fit and proper person, as assessed by the Authority; and

    4. resides in New Zealand; and

    5. is not ineligible to hold a licence under section 81.

  3. Bodies corporate and partnerships that are eligible to hold licences

    A body corporate or partnership (an entity) is eligible to hold a licence if—

    1. an application for the licence has been completed for the entity by a per- son authorised to do so; and

    2. every director or partner of the entity is 20 years or older; and

    3. every director or partner of the entity is a fit and proper person, as assessed by the Authority; and

    4. the body corporate is incorporated in New Zealand or all the partners of the partnership reside in New Zealand; and


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      Part 4 cl 75 Cannabis Legalisation and Control Bill

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    5. the entity is entitled to use the location or locations specified in the application for the licence for the types of licensed activity sought; and

    6. the entity has nominated 1 or more individuals to be responsible persons, being individuals who are eligible under section 75; and

    7. 1 or more directors or partners of the entity have the expertise, and the entity has the resources,—

      1. to comply with the obligations this Act and the regulations made under it impose on the holder of a licence for the types of licensed activity sought; and

      2. to carry out the types of licensed activity for which the licence is sought.

  4. Eligibility of responsible person

    An individual is eligible to be approved under this Act as a responsible person if the individual—

    1. is authorised by the entity concerned to control the activities for which the licence is sought or obtained, and to communicate with the Authority on behalf of the entity; and

    2. is familiar with, and has the expertise to comply with, the obligations that this Act and the regulations made under it impose on the holder of a licence for a licensed activity; and

    3. is 20 years or older; and

    4. is a fit and proper person, as assessed by the Authority; and

    5. resides in New Zealand.

  5. Duty to have responsible person

    A licence holder that is an entity must have, at all times, at least 1 individual approved under this Act as a responsible person.

  6. Role of responsible person

    The role of the responsible person is to control the activities for which the licence is held, and to communicate with the Authority on behalf of the entity.

    Applications for licences

  7. Application for licence

  1. A person who is eligible to hold a licence under section 73 or 74 may apply to the Authority for one of the licences described in section 61.

  2. The application must be made in the manner approved by the Authority.

  3. The applicant must provide the following:

    1. the name, address, and contact details of the applicant:



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      Cannabis Legalisation and Control Bill Part 4 cl 78

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    2. in the case of an entity,—

      1. the name of every director or partner; and

      2. the name, address, and contact details of a person nominated to be a responsible person:

    3. the type of licence and, if relevant, authorisations for classes of activity sought:

    4. a declaration from each person nominated to be a responsible person that they are eligible under section 75:

    5. the prescribed fee (if any).

  4. The application must also include the following information for each type of licence and, if relevant, authorisations for each class of activity for which an authorisation is sought:

    1. the following information about the proposed location or locations to be used for the activity:

      1. a description:

      2. the address:

      3. the geographical co-ordinates:

      4. a plan or map, if required to identify a location:

    2. the details of the proposed arrangements for physical and procedural security, including containment measures, and the security of staff mem- bers, at the proposed location or locations for each type of licence or authorisation for a class of activity sought:

    3. the details of standard operating procedures for each type of licence or authorisation for a class of activity sought, including for—

      1. tracking and recording any starting material, cannabis-based ingredient, or cannabis product:

      2. securely destroying waste material:

    4. the place where records required by this Act will be kept:

    5. adequate additional information to enable the Authority to assess whether the applicant is eligible to hold a licence or an authorisation for the activity.

  5. An application for a cannabis production licence with a cultivation activity authorisation or a micro-cultivation activity authorisation must include infor- mation about the proposed annual production of the applicant.

  6. The Authority may, at any time, require the applicant to provide any additional information it considers necessary to assist it in determining the application.

  7. The applicant must pay the prescribed fee (if any) for the application.


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    Part 4 cl 79 Cannabis Legalisation and Control Bill

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  8. An applicant may withdraw their application at any time before the Authority makes a decision on it but the application fee is not refundable.

  1. Initial assessments of licence applications

    1. On receipt of an application, the Authority must check whether the application appears to be in order.

    2. If the application does not appear to be in order, the Authority must return the application to the applicant and advise them that—

      1. the application is incomplete and will need to be amended and resubmit- ted; or

      2. the applicant or a director or partner of the applicant does not appear to be eligible to hold the licence sought; or

      3. the proposed responsible person of the applicant does not appear to be eligible for the position, in which case a new responsible person must be found by the applicant and the application amended and resubmitted.

  2. Authority may inspect proposed locations

    The Authority may inspect every proposed location specified in an application to ensure that it will have adequate security and containment arrangements.

    Fit and proper person assessment

  3. Certain persons ineligible to be fit and proper person

    The persons described in Schedule 3 are ineligible to—

    1. hold a licence under this Act; or

    2. be the director or partner of an entity that holds a licence under this Act; or

    3. be the responsible person for an entity that holds a licence under this Act; or

    4. be the key person for an authorised activity at a location associated with a cannabis production licence; or

    5. be a duty manager or an acting duty manager for a premises operated under a cannabis distribution licence.

  4. Fit and proper person assessment

  1. The Authority must assess whether a person is fit and proper person for the purpose of a licence application or other purpose specified in this Act in accordance this section.


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    Cannabis Legalisation and Control Bill Part 4 cl 83

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    Disqualifying factors

  2. If the Authority determines that any of the factors in Schedule 3 apply, the person is disqualified from being a fit and proper person for the purposes of this Act.

    Capability assessment

  3. The Authority must take into account whether the person can demonstrate the following:

    1. the capability to comply with licence conditions:

    2. the expertise and knowledge to effectively exercise the rights under the licence or authorisations sought:

    3. the capability to comply with financial requirements of the licence or authorisations:

    4. if the person intends to rely on third parties to meet the requirements in paragraphs (a) to (c), that they have adequate systems and processes to manage those third parties.

      Discretionary assessment

  4. The Authority may take into account any other previous or current factor or conviction it considers relevant.

  5. In exercising its discretion under subsection (4), the Authority must con- sider—

    1. the relevance of the factor or conviction to the type of licence applica- tion or other purpose for which the Authority is assessing whether the person is a fit and proper person; and

    2. the seriousness or nature of the factor or conviction; and

    3. the recency of the factor or conviction; and

    4. the person’s age at the time of the factor or conviction; and

    5. any recidivism or other patterns of behaviour involved; and

    6. where appropriate, any proof of rehabilitation.

  1. Certain convictions not determinative

    The following convictions, on their own, do not disqualify a person from being assessed as a fit and proper person under this Act:

    1. a conviction for cannabis possession or use under section 7 of the Mis- use of Drugs Act 1975:

    2. a conviction for possession of cannabis utensils under section 13(1)(a) of the Misuse of Drugs Act 1975:

    3. a conviction for cultivation of a prohibited cannabis plant under section 9 of the Misuse of Drugs Act 1975:


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      Part 4 cl 84 Cannabis Legalisation and Control Bill

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    4. a conviction for the sale and supply or possession to supply cannabis to persons over the age of 18 under section 6(1)(c) to (f) of the Misuse of Drugs Act 1975:

    5. a conviction for an offence committed outside of New Zealand where, if the offence had occurred in New Zealand, the person would have been prosecuted under paragraphs (a) to (d).

  2. Authority may consider information from other sources

    1. The Authority may, in assessing whether a person is fit and proper person for the purposes of this Act, consider any relevant information received from any source, whether in response to a request from the Authority or unsolicited.

    2. The Authority must, before assessing whether a person is a fit and proper per- son for the purposes of this Act, obtain a Police vet from the New Zealand Police Vetting Service of that person, and take the Police vet information into account in its assessment.

    Additional criteria for assessing cannabis production licence applications

  3. Additional criteria for assessing cannabis production licence applications

  1. In assessing an application for a cannabis production licence with a cultivation activity authorisation or a micro-cultivation activity authorisation, the Author- ity must have regard to the factors set out in subsection (2) or (3) for the activity authorisation sought.

  2. For a cultivation activity authorisation, the factors are the degree to which the application will achieve the following principles:

    1. representing or partnering with communities disproportionately harmed by cannabis, including Māori and people from economically deprived areas:

    2. the generation of social benefit and building of community partnerships by engagement with individuals, whānau, and communities in the design and delivery of their activities:

    3. the promotion of employment opportunities and career pathways in the cannabis industry for Māori and those from economically deprived areas.

  3. For a micro-cultivation activity authorisation, the factors are—

    1. the micro-cultivation cap set in accordance with section 22:

    2. the geographical spread of existing and prospective micro-cultivators within New Zealand.

  4. In assessing an application for a cannabis production licence with a cultivation activity authorisation or a micro-cultivation activity authorisation, the Author- ity may have regard to any other factor that supports the Authority in perform- ing its functions in accordance with its objectives and the purposes of this Act.


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  1. Authority may assess applications against each other in certain cases

    1. The Authority may, at any time, request applications for a cannabis production licence with a cultivation activity authorisation by notice in the Gazette that sets out the date by which applications must be received by the Authority.

    2. The Authority may, when assessing applications received during the period between the notice in the Gazette and the closing date for applications, com- pare applications against each other when determining—

      1. whether to issue a licence to a particular applicant; or

      2. the annual production cap of a particular applicant, expressed as a per- centage of the total annual cultivation cap set under section 22.

    Additional criteria for assessing cannabis testing licence applications

  2. Additional criteria for assessing cannabis testing licence applications

    The Authority may only issue a cannabis testing licence to an applicant which meets the standards and requirements for an accredited laboratory prescribed by regulation.

    Additional criteria for assessing cannabis distribution licence applications

  3. Additional criteria for assessing cannabis distribution licence applications

    In assessing an application for a cannabis distribution licence, the Authority must—

    1. prioritise, where practicable, not-for-profit applicants that can demon- strate a commitment to delivering social benefit to the community or communities in which the applicant intends to operate:

    2. apply the national plan produced under section 13:

    3. have regard to the contents of any local licensed premises policy:

    4. take into account the following factors relating to the proposed location or locations of the premises:

      1. the characteristics of the locality or part of the locality:

      2. the locations of kindergartens, early childhood centres, schools, tertiary institutions, places of worship, parks, sports facilities, swimming pools, playgrounds, and other community facilities:

      3. the cumulative effect of the presence or absence of other licensed premises in the same locality:

      4. whether the amenity and good order of the locality would be likely to be reduced, to more than a minor extent, by the effects of the issue of the licence:

      5. whether the amenity and good order of the locality are already so badly affected by the effects of the issue of existing licences that


        Exposure draft for referendum49


        Part 4 cl 89 Cannabis Legalisation and Control Bill

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        they would be unlikely to be reduced further (or would be likely to be reduced further to only a minor extent) by the effects of the issue of the licence but it is nevertheless desirable not to issue any further licences in the locality:

    5. take into account the following matters:

      1. the days on which and the hours during which the applicant pro- poses to sell cannabis:

      2. the design and layout of any proposed premises:

      3. whether the applicant has appropriate systems, staff, and training to comply with the law:

      4. any information received from a regulatory agency or other organ- isation within the meaning of section 264(6):

    6. take into account any submissions received under section 90.

  4. Authority may consult affected local persons and groups

    In assessing an application for a cannabis distribution licence, the Authority may consult local persons and groups who may be affected by, or have an inter- est in, the issue of a licence if—

    1. the principles of this Act, regulations made under it, and the national plan produced under section 13 provide insufficient guidance to the Authority; or

    2. no local licensed premises policy has been developed for the relevant locality under any enactment or that the local licensed premises policy provides insufficient guidance to the Authority; or

    3. the Authority forms the opinion that it requires the views of interested local persons and groups in order to fully assess the application.

  5. Public may make submissions on applications

  1. The Authority must, within 10 working days of receiving an application, ensure that notice of the application in the prescribed form is—

    1. attached in a conspicuous place on or adjacent to the location or loca- tions to which the application relates; and

    2. published on an Internet site maintained by or on behalf of the Authority.

  2. The Authority must have regard to those people who make submissions on a licence application if they have a greater interest in the application than the public generally.

  3. A submission must be in writing and filed with the Authority within 15 work- ing days after notification of the application is published in accordance with subsection (1).

  4. No submission may be made in relation to a matter other than—


50 Exposure draft for referendum



Cannabis Legalisation and Control Bill Part 4 cl 92

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  1. a matter specified in section 78, 85(2), or 88; or

  2. a matter referenced in the relevant local licensed premises policy.

Authority may approve or decline application

  1. Authority may approve or decline application

    1. The Authority must decline an application if the Authority is not satisfied that the applicant, any directors or partners of the applicant, and any nominated responsible person is fit and proper.

    2. The Authority may approve an application if the Authority—

      1. is satisfied that the applicant is eligible to hold the licence sought; and

      2. in the case of an application from an entity, approves at least 1 nomin- ated individual as a responsible person; and

      3. is satisfied that the activities for which the licence is sought are intended to be done for the proper purpose of those activities; and

      4. is satisfied that every proposed location specified in the application has plans to provide for adequate security and containment arrangements as described in the application; and

      5. forms the view, after considering all applicable criteria in sections 85 to 89, that it is appropriate to issue the licence to the applicant.

    3. The Authority may approve an application in whole or in part, and with or without conditions as the Authority sees fit.

    4. The Authority may refuse to issue a licence, even if no objection to the applica- tion was received from any person.

    5. If the Authority declines an application, the Authority must notify in writing the applicant of—

      1. the decision and the reasons for the decision; and

      2. the applicant’s right to have the decision reviewed under section 116; and

      3. the applicant’s right to appeal against the decision under section 122; and

      4. the process to be followed for an appeal under section 122.

  2. Conditions of licences

    1. Any condition of a licence issued may—

      1. apply differently to different parts of a location:

      2. apply differently to the same part of the location at different times, on different days, or both.


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        Part 4 cl 93 Cannabis Legalisation and Control Bill

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    2. In the case of an application for a cannabis production licence with a cultiva- tion activity authorisation, the Authority may approve or vary the proposed annual production of the applicant.

    3. The Authority may not issue a cannabis production licence with a cultivation activity authorisation that entitles the licence holder to supply or sell more than 20% of the annual cultivation cap share allocated to holders of cannabis pro- duction licences with a cultivation activity authorisation under section 22.

    4. An authorisation to undertake a controlled activity is an authorisation to under- take all of the activities permitted under that authorisation unless specified otherwise by the Authority as a condition of the licence.

    Subpart 3—Issue of licences


  3. Issue of licence

    1. The Authority must, as soon as practicable after approving a licence applica- tion, issue a licence to the licence holder that states the following:

      1. the name of the licence holder:

      2. if the licence is issued to an entity, the name of every director, partner, and responsible person:

      3. the type of licence approved, and each class of activity authorised under that licence:

      4. for each class of activity authorised under that licence, each location where any cannabis, constituents intended to be part of a cannabis prod- uct, or cannabis product may be stored and, if applicable, cultivated, pro- duced, or processed (including secure destruction of any waste material), and the key person (if required) for each location:

      5. the period for which the licence is in force:

      6. in the case of a cannabis production licence with a cultivation activity authorisation, the annual production cap of the licence holder, expressed as a percentage of the total annual cultivation cap set under section 22:

      7. in the case of a cannabis production licence with a micro-cultivation activity authorisation, the annual production cap of the licence holder prescribed by regulations:

      8. in the case of a cannabis production licence with a processing activity authorisation, the class or classes of cannabis that the licence holder is authorised to produce:

      9. any conditions imposed by the Authority.

    2. The Authority must issue the licence in the prescribed manner.

  4. Duration of licence

  1. A licence is in force for the period stated in the licence.



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    Cannabis Legalisation and Control Bill Part 4 cl 97

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  2. The stated period must not exceed,—

    1. for a cannabis production licence, 5 years:

    2. for a cannabis testing licence, 1 year:

    3. for a cannabis distribution licence, 1 year.

  1. Renewal of licence

    1. If an application for the renewal of a licence is made no earlier than 90 days, and no later than 30 days, before the expiry of the licence, the licence continues in force until the application for renewal is determined.

    2. This Act applies to an application for a renewal of a licence as if it were an application for a new licence except that, in the case of an application for the renewal of a cannabis distribution licence, the Authority is not required to assess any of the additional criteria in sections 87 and 88.

    3. A licence issued on an application under this section—

      1. must be treated as a licence issued under section 93; and

      2. starts when the earlier licence expires.

  2. Replacement of responsible person

    1. This section applies if there is no responsible person in respect of a licence held by a body corporate or a partnership because the individual who was the responsible person has—

      1. died, become incapacitated, or for any other reason has become incapa- ble of holding the position of responsible person; or

      2. ceased to be a responsible person as a result of a cancellation of approval under section 110.

    2. The licence holder must, as soon as practicable, seek the Authority’s approval for an eligible person to replace the individual who has ceased to be a respon- sible person.

    Licence variations at request of licence holder

  3. Certain changes not to be made without approval of Authority

    1. A licence holder must not change any of the following matters without the prior approval of the Authority:

      1. the composition of the board of directors of the body corporate or part- ners of the partnership:

      2. the locations specified in the licence:

      3. anything at the locations specified in the licence that materially affects a location’s security or containment arrangements:

      4. the activities, or types of activity, authorised by the licence:


        Exposure draft for referendum53


        Part 4 cl 98 Cannabis Legalisation and Control Bill

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      5. any responsible person:

      6. for a cannabis production licence with a processing activity authorisa- tion, the class or classes of cannabis that the licence holder is entitled to produce.

    2. An approval under this section must be sought by a written application, in a form provided by the Authority, that—

      1. includes the new information for the matters sought to be changed that would be required in an application for a licence; and

      2. includes information about the existing licence; and

      3. is made at least 60 days before a proposed change is to take effect.

    3. The Authority must consider whether the application satisfies the requirements of this Part that relate to the matters that are sought to be changed.

    4. If the Authority approves a change described in any of subsection (1)(c) to (f), the Authority must issue a replacement licence to reflect the approved change.

    5. Prescribed fees are payable if the application is for—

      1. the addition of 1 or more new types of controlled activity authorisation to the licence; or

      2. a change of location used for a type of controlled activity; or

      3. any change relating to a location used for a type of controlled activity, if the Authority is satisfied that the change affects the location’s security or containment arrangements.

  4. Changes of contact details

    The licence holder must give the Authority notice of the following changes no later than 10 working days after the change is made:

    1. a change in the place where a licence holder’s records are kept:

    2. a change in the contact details or address of a licence holder, director or partner of a licence holder, or responsible person for a licence holder.

  5. Notification of Authority by entity of changes in company shareholding or name

  1. An entity that holds a licence and is not party to a listing agreement with a stock exchange must notify the Authority of any change in the shareholding of the entity.

  2. An entity that holds a licence and is party to a listing agreement with a stock exchange must notify the Authority of any change in the shareholding of the entity whereby any person becomes the holder of at least 20% of the shares, or of any particular class of the shares, issued by the entity, if that person did not


    54 Exposure draft for referendum



    Cannabis Legalisation and Control Bill Part 4 cl 101

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    hold at least 20% of the shares or of that class of the shares when the licence was issued to the entity.

  3. Any notice required by subsection (1) or (2) must be given within 10 work- ing days after the board of the entity becomes aware of the change to which it relates.

  4. Where an entity that holds a licence changes its name, it must notify the Authority of the changes within 10 working days after the change.

  5. If an entity fails to comply with any of subsections (1) to (4), every director of the entity commits an offence and is liable on conviction to a fine not exceeding $10,000.

  6. It is a defence to a director charged with an offence against this section relating to a failure to comply with one of its provisions if he or she proves that—

    1. the entity took all reasonable and proper steps to ensure that the provi- sion concerned would be complied with; or

    2. he or she took all reasonable and proper steps to ensure that the entity complied with the provision; or

    3. in the circumstances he or she could not reasonably have been expected to take steps to ensure that the entity complied with the provision.

  7. In this section, stock exchange has the same meaning as in section 2(1) of the Companies Act 1993.

  1. Notification of Authority by beneficial owner of shares of changes in shareholding

    1. Any person on whose behalf any shares are held by any other person in any entity that holds a licence must notify the Authority if, after the licence is issued to the entity, the number of shares held changes so that the shareholding reaches at least 20% of the shares, or of any particular class of the shares, issued by the entity.

    2. The notice must be given within 10 working days after the person required to give it becomes aware that the number of shares has reached at least 20% of the shares, or of any particular class of the shares, issued by the entity.

    3. If a person required to give a notice under subsection (1) fails to comply with subsection (1) or (2), he or she commits an offence and is liable on conviction to a fine not exceeding $10,000.

  2. Variation to licensed premises during repairs, etc

    1. The Authority may authorise the holder of a cannabis distribution licence to sell cannabis products or operate a consumption premises pursuant to the licence on or from premises other than the licensed premises concerned for any period it from time to time determines where—


      Exposure draft for referendum55


      Part 4 cl 102 Cannabis Legalisation and Control Bill

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      1. the licensed premises are unfit for the sale of cannabis products or the consumption of cannabis (as the case may be) because of a fire, storm, earthquake, or other unforeseen event; or

      2. the licensed premises are or will become unfit for the relevant purpose because of their repair, alteration, or rebuilding, or the building of add- itions to them; or

      3. any other circumstances have arisen or will arise (in respect of the prem- ises) that prevent or will prevent the sale of cannabis products or con- sumption of cannabis on those premises.

    2. While an authority under subsection (1) is in force, this Act has effect as if—

      1. the licensed premises concerned were not premises; and

      2. the other premises were the premises to which the licence concerned relates.


    Voluntary surrender of licence

  3. Licence holder may surrender licence

    1. A licence holder may, at any time, surrender the licence to the Authority, in which case the licence expires on the date on which the licence is received by the Authority.

    2. A licence holder may, at any time, surrender an authorisation for a controlled activity, in which case—

      1. the authorisation expires on the date on which notice of the surrender is received by the Authority; and

      2. the Authority must issue a replacement licence.

    3. A person who has surrendered a licence or an authorisation must, as soon as practicable, ensure the safe disposal of any cannabis or cannabis products in their possession which they are no longer authorised to possess in accordance with—

      1. any instructions given to them in writing by the Authority; or

      2. regulations made under section 265.

    Compare: 20/139


    Subpart 4—Suspension and revocation of licences

  4. Variation of licence

  1. The Authority may, by notice to the licence holder, vary the licence by imposing 1 or more new conditions if satisfied on reasonable grounds that the licence holder has breached any condition of the licence or provision of this Act and any enactment made under it.


    56 Exposure draft for referendum



    Cannabis Legalisation and Control Bill Part 4 cl 104

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  2. The notice must be given in the manner specified by the Authority and provide the following information:

    1. the start date of the variation to the licence (which must not be less than 5 working days before the date on which the notice is given to the licence holder):

    2. the breach that has occurred:

    3. the corrective action to be taken to remedy or mitigate the breach:

    4. the right of the licence holder to apply for a review of the variation under section 116 and the time within which the licence holder may apply for a review.


Suspension of licences

  1. Suspension of licence

    1. The Authority may, by notice to the licence holder, suspend a licence if satis- fied on reasonable grounds that—

      1. the licence holder has provided any false information in the application for the licence or for a change to the licence; or

      2. the licence holder has breached any condition of the licence or provision of this Act and any enactment made under it; or

      3. a director or partner of a licence holder that is an entity, or the licence holder, has ceased to be a fit and proper person within the meaning of section 82; or

      4. a key person, a duty manager, an acting duty manager, or responsible person authorised under this Act in relation to the licence has ceased to be a fit and proper person within the meaning of section 82; or

      5. in the case of the holder of a cannabis distribution licence with a con- sumption premises activity authorisation, the licence holder’s operations under a risk-based measure (within the meaning of the Food Act 2014) have been suspended, or the licence holder’s risk-based measure under that Act has been cancelled.

    2. The Authority may suspend—

      1. the licence of a licence holder; or

      2. an authorisation for a controlled activity under the licence of a licence holder.

    3. The notice must be given in the manner prescribed by the Authority and pro- vide the following information:

      1. the start date of the suspension (which must not be less than 5 working days before the date on which the notice is given to the licence holder):


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        Part 4 cl 105 Cannabis Legalisation and Control Bill

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      2. the end date of the suspension (which must not be more than 30 days after the start date):

      3. the false information that was provided, the breach that has occurred, or the person who has ceased to be a fit and proper person:

      4. the corrective action to be taken to remedy or mitigate the false informa- tion or breach (if any), or the person to be replaced within the entity:

      5. if the Authority is not suspending the licence in whole, the authorisation for a controlled activity under the licence which is being suspended:

      6. the right of the licence holder to apply for a review of the suspension under section 116 and the time within which the licence holder may apply for a review.

    4. The notice must also state that—

      1. the Authority will, unless the suspension is cancelled on review, keep a record of the suspension:

      2. the record will be taken into account in the consideration of any future application that involves the licence holder, any directors or partners of the licence holder, or any individual who is a responsible person or key person for the licence.

  2. Duration of suspension

    1. The period of suspension starts on the day stated in the notice.

    2. The period of suspension ends on the date stated in the notice unless at any time during that period the Authority, by notice to the licence holder,—

      1. extends that period by a further period of no more than 30 days; or

      2. substitutes an earlier end date for the period.

    3. The Authority may, under subsection (2), substitute an earlier date only if satisfied that the licence holder has taken the corrective action stated in the notice given under section 104(3)(d) or that the action is not, or is no longer, required.

  3. Effect of suspension

  1. While the licence, or an authorisation for a controlled activity under the licence, of a licence holder is suspended, the licence holder—

    1. is not authorised to carry out any authorised activity under that licence or authorisation without the prior written permission of the Authority; but

    2. may tend growing cannabis and, if necessary, harvest it, if those are authorised activities under the licence; and

    3. may tend to existing stock in the form of fresh or dried cannabis or can- nabis products, if those are authorised activities under the licence.


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      Cannabis Legalisation and Control Bill Part 4 cl 108

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  2. A permission given under subsection (1)(a) may be subject to any stated restrictions or conditions, or both.

Immediate suspension of licence or authorisation in interests of public safety

  1. Immediate suspension of licence or authorisation in interests of public safety

    1. If the circumstances described in subsection (2) apply, the Authority may, by notice in writing to the licence holder concerned, immediately suspend—

      1. the licence of that licence holder; or

      2. an authorisation for a controlled activity under the licence of that licence holder.

    2. The circumstances referred to in subsection (1) are that—

      1. the Authority considers that—

        1. the licence holder or a director or partner of the licence holder, a responsible person of the licence holder, a key person of the licence holder, or a duty manager or acting duty manager of the licence holder is no longer a fit and proper person within the meaning of section 82 to operate a controlled activity; and

        2. the interests of public safety, or the need to ensure that the public is protected from serious criminal activity, would seem to require immediate suspension of the licence or authorisation for a con- trolled activity under that licence; or

      2. the licence holder, a director or partner of the licence holder, a respon- sible person for the licence holder, a key person of the licence holder, or a duty manager or acting duty manager of the licence holder has been charged with any offence that is of such a nature that the interests of public safety, or the need to protect the public against serious criminal activity, would require that a person convicted of committing such an offence not operate a controlled activity.

  2. Procedure for suspending licence or authorisation under section 107

    1. If the Authority suspends a licence or an authorisation under a licence under section 107, the notice must be given in the manner specified by the Author- ity and—

      1. inform the licence holder of the grounds of the suspension; and

      2. advise the licence holder—

        1. that the suspension has effect on and after the day on which the notice was received by the person, or any later date that is speci- fied in the notice; and


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          Part 4 cl 109 Cannabis Legalisation and Control Bill

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        2. that the licence holder may make submissions on the matter to the Authority; and

        3. that the licence holder may apply for a review of the decision under section 116; and

        4. of the time within which the licence holder may apply for a review of the decision under section 116.

    2. The Authority must, as soon as practicable, consider any submissions on the matter made by the licence holder and notify the licence holder of the result of the consideration.

  3. Term of immediate suspension

    1. A suspension under section 107 may take effect either immediately or on and after any date that the Authority may specify.

    2. The Authority may at any time withdraw a suspension imposed under section 107.

    3. If any suspension has been imposed in respect of a person to whom section 107(2)(b) applies, the suspension ceases immediately if—

      1. the charge is withdrawn in circumstances where it is not replaced with another charge based on the same circumstances; or

      2. the person is found not guilty of the offence charged.

    Cancellation of approval of responsible person or key person

  4. Cancellation of approval of responsible person

    1. The Authority may cancel the approval of an individual given under section 91 if the Authority is satisfied that the individual—

      1. has ceased to be eligible to be a responsible person under section 75; or

      2. has breached a provision of this Act or a condition of the licence.

    2. Before cancelling the approval of an individual, the Authority must—

      1. notify the individual of the proposal to cancel the approval; and

      2. notify the licence holder of the proposal to cancel the approval; and

      3. give the individual and the licence holder an opportunity to make sub- missions on the proposal within 10 working days; and

      4. take into account any submissions received within that period.

  5. Cancellation of approval of key person or duty manager

  1. The Authority may cancel the approval of an individual given under section 149 if the Authority is satisfied that the individual—


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    Cannabis Legalisation and Control Bill Part 4 cl 112

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    1. has ceased to be eligible to be a key person under section 146 or a duty manager or acting duty manager under section 147; or

    2. has breached a provision of this Act or a condition of the licence.

  2. Before cancelling the approval of an individual, the Authority must—

    1. notify the individual of the proposal to cancel the approval; and

    2. notify the licence holder of the proposal to cancel the approval; and

    3. give the individual and the licence holder an opportunity to make sub- missions on the proposal within a reasonable period; and

    4. take into account any submissions received within that period.

Revocation of licence


  1. Revocation of licence

    1. The Authority may, by notice to the licence holder, revoke the licence of the licence holder if satisfied on reasonable grounds that—

      1. the licence holder has, within any period during which the licence hold- er’s licence was suspended, failed to take any corrective action stated in a notice given under section 104(3); or

      2. the licence holder, or a director or partner of the licence holder, has ceased to be a fit and proper person within the meaning of section 82; or

      3. the licence holder has knowingly provided any false information in the application for the licence or for a change to the licence; or

      4. the licence holder has deliberately breached a condition of the licence imposed under this Act; or

      5. in the case of the holder of a cannabis distribution licence with a con- sumption premises activity authorisation, the licence holder’s operations (if any) under a risk-based measure (if any) within the meaning of the Food Act 2014 have been suspended, or the licence holder’s risk-based measure under that Act has been cancelled.

    2. The Authority may revoke—

      1. the licence of a licence holder; or

      2. an authorisation for a controlled activity under the licence of a licence holder.

    3. The notice must provide the following information:

      1. the date on which the revocation takes effect (which must not be before the 14th day after the date on which the notice is given to the licence holder):

      2. the reasons for the revocation:


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        Part 4 cl 113 Cannabis Legalisation and Control Bill

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      3. if the Authority is not revoking the licence in whole, the authorisation for a controlled activity under the licence which is being revoked:

      4. the right of the licence holder to apply for a review of the revocation.

    4. The notice must also state that—

      1. the Authority will, unless the revocation is cancelled on review, keep a record of the revocation; and

      2. the record will be taken into account in the consideration of any future application that involves the licence holder, any directors or partners of the licence holder, or any individual who is a responsible person for the licence.

  2. Duty to surrender licence

    1. As soon as the revocation of a licence or an authorisation under a licence takes effect, the person who held that licence must surrender the licence to the Authority.

    2. In the case of a revocation of a controlled activity authorisation under a licence, the Authority must issue a replacement licence that reflects the revocation.

    3. For the purposes of this Act, the revocation of a licence takes effect on the date stated under section 112(3)(a) unless the licence holder concerned applies for a review in accordance with section 116, in which case it takes effect if and when notice is given, under section 116, that the decision to revoke has been confirmed.

    4. As soon as practicable after the revocation of a licence or an authorisation, the person who held the licence or authorisation must ensure the safe disposal of any cannabis or cannabis products in their possession which they are no longer authorised to possess in accordance with—

      1. any instructions given to them in writing by the Authority; or

      2. regulations made under section 265.

  3. Revocation of authorisation as key person or duty manager

    The Authority may, by notice to the licence holder and to the individual con- cerned, revoke the authorisation of an individual as a key person or a duty manager if satisfied on reasonable grounds that the individual has ceased to be a fit and proper person within the meaning of section 82.

  4. Record of suspensions and revocations

  1. The Authority must keep a record of every suspension and revocation of a licence that has not been overturned on review.

  2. The Authority may, to the extent that it is relevant to do so, use the record—

    1. to determine the eligibility of an applicant for a licence; and


      62 Exposure draft for referendum



      Cannabis Legalisation and Control Bill Part 4 cl 117

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    2. to take into account the suitability of a person as a licence holder or as a responsible person.

Subpart 5—Adverse decisions

  1. Adverse decisions

    1. The following persons may apply to the chief executive of the Authority for a review of a decision of the Authority:

      1. a person who the Authority has determined is not fit and proper for the purposes of this Act:

      2. a person who the Authority has refused to approve as a key person, duty manager, or acting duty manager under section 149, and the relevant licence holder:

      3. a person in respect of whom the Authority has cancelled their approval as a key person, duty manager, or acting duty manager under section 111, and the relevant licence holder:

      4. a licence applicant whose application has been denied:

      5. a licence holder whose application for a renewal has been denied:

      6. a licence holder whose application for a change to their licence has been denied:

      7. a licence holder whose licence has been varied under section 103:

      8. a licence holder whose licence has been suspended under section 104:

      9. a licence holder whose licence has been immediately suspended under

        section 107:

      10. a licence holder whose licence has been revoked under section 112.

    2. The person must apply no later than 10 working days after the date on which notice of the adverse decision is given to them.

    3. The application must be made in the manner and form required by the Author- ity.

    4. The application must be accompanied by the prescribed fee.

  2. Internal review of decision of Authority

    1. Upon receiving a request for a review of a decision, the Authority must review the decision—

      1. as soon as practicable; and

      2. within 10 working days after the application for the review of an adverse decision is received.

    2. No individual who was involved in the original decision may be involved in the review of the decision.

    3. The Authority may—


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      Part 4 cl 118 Cannabis Legalisation and Control Bill

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      1. confirm or vary the original decision; or

      2. set aside the original decision; or

      3. set aside the original decision and substitute another decision that the Authority considers appropriate.

    4. The Authority may seek further information from the applicant, and if it does—

      1. the period specified in subsection (1)(b) ceases to run until the appli- cant provides the information to the Authority; and

      2. the applicant must provide the information within the period (not less than 5 working days) specified by the Authority in the request for infor- mation.

    5. If the applicant does not provide the further information within the required time, the Authority may make a decision on the basis of the information held by the Authority.

    6. If the adverse decision is not varied or set aside within the period specified in subsection (1)(b), the decision is to be treated as having been confirmed by the Authority.

  3. Notice of decision on internal review

    1. As soon as practicable after making a decision in accordance with section 116, the Authority must give the applicant in writing—

      1. the decision on the internal review; and

      2. the reasons for the decision.

    2. A notice under subsection (1) has effect as soon as it is given to the person.

  4. Effect of notice of decision

    In the period starting on the day on which an application for review of the revocation of a licence is lodged and ending at the end of the day on which the application is withdrawn or determined, the applicant—

    1. is not authorised to carry out any authorised activity under that licence; or

    2. in the case of a revocation of a particular controlled activity authorisa- tion under a licence, is not authorised to carry out that controlled activ- ity; but

    3. may tend growing cannabis and, if necessary, harvest it, if those are authorised activities under the licence.

  5. Stay of reviewable decision on internal review

  1. If an application is made for an internal review of a decision to issue a notice, the Authority may stay the operation of the decision.


    64 Exposure draft for referendum



    Cannabis Legalisation and Control Bill Part 4 cl 123

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  2. The Authority may stay the operation of a decision—

    1. on the Authority’s own initiative; or

    2. on the application of the applicant for review.

  3. The Authority must make a decision on an application for a stay within 3 work- ing days after the Authority receives the application.

  4. If the Authority has not made a decision on an application under subsection (2)(b) within the time set out in subsection (3), the Authority is to be treated as having made a decision to grant a stay.

  5. A stay of the operation of a decision pending a decision on an internal review continues until the reviewer has made a decision on the review.

Subpart 6—Appeals

  1. Cannabis Appeals Authority

    1. The Cannabis Appeals Authority is established and operates under Schedule 4.

    2. The appeals authority sits as a judicial authority to hear and determine appeals under section 122.

    3. In hearing and determining an appeal, the appeals authority has all the duties, functions, and powers that the Authority had in respect of the same matter.

    4. Proceedings before the appeals authority must not be held invalid for want of form.

  2. Who may appeal

    1. Subject to subsection (2), any party to proceedings before the Authority who is dissatisfied with the decision or any part of the decision may appeal to the appeals authority against the decision or any part of the decision within 20 working days of the date on which the person is notified of the decision.

    2. A person who has a right under section 116 to apply for a review of an adverse decision of the Authority may not appeal against that decision or any part of the decision if they have previously exercised that right and the Author- ity has given notice of its decision on the review.

    3. The appeal must be—

      1. made in the manner and form required by the Authority; and

      2. be accompanied by the prescribed fee.

  3. Appeals by way of rehearing

    Every appeal is by way of rehearing.


    Exposure draft for referendum65


    Part 4 cl 124 Cannabis Legalisation and Control Bill

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  4. Determination of appeal

    On hearing an appeal, the appeals authority may confirm, modify, or reverse the decision under appeal.

  5. Effect of appeal

    1. This section applies to every decision other than a decision referred to in sec- tion 122.

    2. A decision to which this section applies has effect during the period allowed for filing an appeal against the decision and, if an appeal is filed against the decision, also has effect while the appeal is pending.

    3. However, the appeals authority may, on its own initiative or on an application made for the purpose, order that a decision to which this section applies is not to have effect while the appeal is pending.

    4. Despite subsection (3), the appeals authority may not make an order under

      section 107.

    5. Where the appeals authority makes an order under subsection (3) in relation to a decision to refuse to renew, to suspend, or to cancel any licence or manag- er’s certificate, the licence or manager’s certificate must, if the appeal is not finally determined on or before the expiry of the licence or certificate, be deemed to be extended until the final determination of the appeal.

  6. Prohibition on inclusion of false information in licence application

    A person who applies for a licence, knowing that information in the application is false, commits an offence and is liable on conviction to a fine not exceeding

    $50,000.

  7. Knowingly applying for licence when prohibited

    A person who applies for a licence knowing that he or she is prohibited from doing so, commits an offence and is liable on conviction to a fine not exceed- ing $5,000.

  8. Breach of conditions of licence

    A licence holder who acts in breach of the conditions of their licence commits an offence and is liable on conviction to a fine not exceeding $5,000.

  9. Selling cannabis accessories without a licence

    A licence holder who sells a cannabis accessory without authorisation to do so under the licence commits an offence and is liable on conviction to a fine not exceeding $1,000.

  10. Offences related to prohibited and unauthorised cannabis products

  1. Every licence holder commits an offence if the licence holder—



    66 Exposure draft for referendum



    Cannabis Legalisation and Control Bill Part 4 cl 132

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    1. imports, processes, distributes, or displays for sale a prohibited or unauthorised cannabis product; or

    2. sells a prohibited or unauthorised cannabis product; or

    3. otherwise than in accordance with regulations made under this Act, imports, processes, distributes, displays for sale, or sells to any person a prohibited or unauthorised cannabis product.

  2. A licence holder who commits an offence against subsection (1) is liable on conviction to a fine not exceeding $50,000.

  1. Suspension of certain decisions of Authority to grant licence or manager’s certificate

    1. This section applies to every decision to grant an application for a licence or a manager’s certificate if—

      1. an objection to the application has been filed and has not been with- drawn; or

      2. a report has been submitted by a regulatory agency within the meaning of section 264(6).

    2. A decision to which this section applies has no effect during the period allowed for filing an appeal against the decision and, if an appeal is filed against the decision, also has no effect while the appeal is pending.

    3. If an appeal relates to a decision to which this section applies but is limited to 1 or more conditions that form part of the decision, the appeals authority may, subject to any conditions the appeals authority thinks fit to impose, order that the decision is to have effect while the appeal is pending.

    4. An order under subsection (3) may only be made if the appeals authority is satisfied that all parties to the appeal agree to the order, including any condi- tions imposed by the appeals authority.

    5. No appeal may be brought against a refusal to make an order under subsec- tion (3).


    Subpart 7—Miscellaneous provisions

    Restrictions on who may be employed

  2. Restrictions on who may be employed

    1. A licence holder may not employ any person in a position that they are ineli- gible to hold under this Part.

    2. A licence holder who contravenes subsection (1) commits an offence and is liable on conviction to a fine not exceeding $4,000.


    Exposure draft for referendum67


    Part 4 cl 133 Cannabis Legalisation and Control Bill

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    Record-keeping obligations

  3. Licence holder must keep records

    1. A licence holder must keep records as required by this Act and any regulations made under this Act.

    2. The licence holder and every employee or agent of the licence holder must give an enforcement officer who inspects a location all reasonable assistance to access records required under this Act and any regulations made under it.

    3. The licence holder and every employee or agent of the licence holder must—

      1. give an enforcement officer who inspects a location all reasonable assist- ance to copy records; and

      2. permit the enforcement officer to remove the records from the location to make copies of, or extracts from, the records.

    4. The licence holder must keep records of—

      1. the amount of cannabis, cannabis products, and constituents intended to be part of a cannabis product that the licence holder destroys; and

      2. the method of destruction.

  4. Authority may request independent verification of records

    The Authority may request independent verification of any records of a licence holder by a person prescribed by the Authority.

  5. Records relating to cannabis cultivation

  1. Subsection (1) applies to the holder of a cannabis production licence with—

    1. a nursery activity authorisation; or

    2. a cultivation activity authorisation; or

    3. a micro-cultivation activity authorisation.

  2. The licence holder must keep records of the following:

    1. the amount of cannabis cultivated:

    2. the amount of cannabis maintained for the purpose of propagation:

    3. the amount of cannabis produced and stored:

    4. the amount of cannabis supplied or sold within New Zealand to another licence holder:

    5. the amount of cannabis destroyed or disposed of:

    6. a failure by the licence holder, in any season, to sow cannabis seeds intended for sowing:

    7. a failure of any cannabis seeds sown by the holder to germinate, or of any crop of cannabis plants to attain maturity, for any reason:


      68 Exposure draft for referendum



      Cannabis Legalisation and Control Bill Part 4 cl 138

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    8. any other prescribed matters relating to the things specified in para- graphs (a) to (g).

  3. The holder of a cannabis production licence with a nursery activity authorisa- tion must keep records of—

    1. the amount of cannabis seeds imported; and

    2. the amount of growing stock possessed.

  1. Records relating to cannabis research

    The holder of a cannabis production licence with a research activity authorisa- tion must keep records of—

    1. the amount of each type of cannabis and cannabis product supplied or administered:

    2. the amount of cannabis, constituents intended to be part of a cannabis product, and cannabis products possessed:

    3. any other prescribed matters relating to the things specified in para- graphs (a) and (b).

  2. Records relating to cannabis processing

    The holder of a cannabis production licence with a processing activity author- isation must keep records of the following:

    1. the amount of cannabis and cannabis products possessed after process- ing:

    2. the amount of each type of cannabis and cannabis product supplied, sold, or otherwise administered:

    3. the amounts of constituents intended to be part of a cannabis product possessed:

    4. any destruction of any cannabis, cannabis product, and constituent inten- ded to be part of a cannabis product:

    5. samples of any packaging and labelling used for cannabis:

    6. any other prescribed matters relating to the things specified in para- graphs (a) to (e).

  3. Records relating to cannabis wholesaling and distribution

    The holder of a cannabis production licence with a wholesaling and distribu- tion activity authorisation must keep records of the following:

    1. the amount of cannabis, cannabis products, and constituents intended to be part of a cannabis product supplied or sold:

    2. the amount of cannabis, cannabis products, and constituents intended to be part of a cannabis product possessed:


      Exposure draft for referendum69


      Part 4 cl 139 Cannabis Legalisation and Control Bill

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    3. any other prescribed matters relating to the things specified in para- graphs (a) and (b).

  4. Records relating to cannabis retailing

    The holder of a cannabis distribution licence with a retail activity authorisation must keep records of the following:

    1. the amount of cannabis and cannabis products possessed:

    2. the amount of cannabis and cannabis products sold:

    3. any other prescribed matters relating to the things specified in para- graphs (a) and (b).

  5. Records relating to cannabis testing

    The holder of a cannabis testing licence must keep records of the following:

    1. the amount of cannabis and cannabis products possessed:

    2. the amount of cannabis, cannabis products, and constituents intended to be part of a cannabis product returned to licence holders:

    3. the amount of cannabis, cannabis products, and constituents intended to be part of a cannabis product destroyed:

    4. any other prescribed matters relating to the things specified in para- graphs (a) to (c).

  6. Records relating to cannabis destruction

    The holder of a cannabis production licence with destruction activity authorisa- tion must keep records of the following:

    1. the amount of cannabis and cannabis products possessed:

    2. the amount of cannabis and cannabis products destroyed:

    3. any other prescribed matters relating to the things specified in para- graphs (a) and (b).

  7. Failure to meet record-keeping obligations

    A licence holder who fails to meet their record keeping obligations under this Act commits an offence and is liable on conviction to either or both of the fol- lowing:

    1. a fine not exceeding $500,000:

    2. suspension of the licence holder’s licence for a period not exceeding 7 days.


70 Exposure draft for referendum



Cannabis Legalisation and Control Bill Part 4 cl 145

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Key persons and duty managers

  1. Duty to have key persons or duty managers

    1. A cannabis production licence holder or a cannabis testing licence holder must have, at all times, 1 individual approved under this Act as a key person for each authorised activity at each location operated under the licence.

    2. A cannabis distribution licence holder must have, at all times, at least 1 indi- vidual approved under this Act as a duty manager for each premises operated under the licence.

  2. Roles of key persons and duty managers

    1. The role of a key person is to manage the day-to-day activities permitted by an authorisation at a location operated under a cannabis production licence or a cannabis testing licence.

    2. The role of a duty manager at a premises operated under a cannabis distribution licence is to be responsible for—

      1. compliance with, and enforcement of,—

        1. the provisions of this Act; and

        2. the conditions of the licence for the premises; and

      2. the conduct of the premises, with the aim of contributing to the reduction of cannabis-related harm.

  3. Licence holder obligated to ensure duty manager working at premises at all times when premises operating or open to public

    1. The holder of a cannabis distribution licence must ensure that sufficient indi- viduals have been approved under this Act as duty managers to provide that a duty manager is working at each premises operated under a cannabis distribu- tion licence at all times when the premises are operating.

    2. A duty manager must be working at a premises operated under a cannabis dis- tribution licence at all times when cannabis is being sold or supplied to the public or the premises are open for the consumption of cannabis by members of the public.

    3. At all times while the duty manager is working,—

      1. the full name of the duty manager must be prominently displayed inside the premises so as to be easily read by people using the premises; and

      2. the person named as duty manager at any time must be treated for the purposes of this Act as the duty manager at that time.

    4. At all times when cannabis is being sold, supplied, or consumed on the prem- ises, the licence holder must take all reasonable steps to enable the duty man- ager to comply with this section.


      Exposure draft for referendum71


      Part 4 cl 146 Cannabis Legalisation and Control Bill

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    5. A licence holder or duty manager who contravenes this section commits an offence and is liable on conviction to a fine not exceeding $5,000.

  4. Eligibility of key person

    An individual is eligible to be approved under this Act as a key person for an authorisation under a cannabis production licence if the individual—

    1. is authorised by the entity concerned to manage the day-to-day activities at a location for which the licence is sought or obtained, and to commu- nicate with the Authority on behalf of the entity in respect of that loca- tion; and

    2. is familiar with, and has the expertise to comply with, obligations that this Act and regulations made under it may impose on the holder of a licence for the types of licensed activity that will occur at the location and for which the individual is the key person; and

    3. is 20 years or older; and

    4. is a fit and proper person, as assessed by the Authority; and

    5. resides in New Zealand.

  5. Eligibility of duty manager or acting duty manager

    An individual is eligible to be approved under this Act as a duty manager or an acting duty manager for a premises operated under a cannabis distribution licence if the individual—

    1. is authorised by the entity concerned to be responsible, at a premises operated under the licence, for—

      1. compliance with, and enforcement of, the provisions of this Act and any conditions of the licence for the premises; and

      2. the conduct of the premises with the aim of contributing to the reduction of cannabis-related harm; and

    2. is familiar with, and has the expertise to comply with, obligations that this Act and regulations made under it impose on the holder of a licence for the types of licensed activity that will occur at the location and for which the individual is the key person; and

    3. is 20 years or older; and

    4. is a fit and proper person, as assessed by the Authority; and

    5. resides in New Zealand.

  6. Application for approval of key person or duty manager

  1. A licence holder must notify the Authority of the appointment of any key per- son, duty manager, temporary duty manager, or acting duty manager and for- ward to the Authority evidence that the person is eligible for the position under section 146 or 147, as appropriate.


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    Cannabis Legalisation and Control Bill Part 4 cl 149

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  2. The licence holder must provide the following information:

    1. the name, address, and contact details of the licence holder:

    2. the name, address, and contact details of each individual nominated to be a key person, duty manager, temporary duty manager, or acting duty manager:

    3. for a cannabis production licence or a cannabis testing licence, the con- trolled activity and location for which the individual is nominated to be a key person:

    4. for a cannabis distribution licence, the premises for which the individual is nominated to be a duty manager:

    5. a declaration from each person nominated to be a key person that they are eligible under section 146:

    6. a declaration from each person nominated to be a duty manager or acting duty manager that they are eligible under section 147.

  3. The Authority may, within a reasonable period after receiving the application, require the licence holder or an individual who is the subject of the application to provide any additional information it considers necessary to assist it in deter- mining the application.

  1. Authority may approve or decline person as key person or duty manager

    1. The Authority may, within a reasonable period after receiving a notice of an appointment under section 148, approve the appointment of a key person, duty manager, or acting duty manager if the Authority is satisfied that the indi- vidual who is the subject of the notice is a fit and proper person.

    2. The Authority may, within a reasonable period after receiving notice of the appointment of a key person, a duty manager, or an acting duty manager, notify the licence holder that it does not approve the appointment.

    3. If the Authority declines an application, the Authority must notify in writing the licence holder and the individual who is the subject of the notice of—

      1. the decision and the reasons for the decision; and

      2. the licence holder’s and the individual’s right to have the decision reviewed under section 116; and

      3. the licence holder’s and the individual’s right to appeal against the deci- sion under section 122; and

      4. the process to be followed for an appeal under section 122.

    4. The Authority must, as soon as practicable after approving an individual as a key person or duty manager, issue a certificate to the licence holder that states the following:

      1. the name of the licence holder:


        Exposure draft for referendum73


        Part 4 cl 150 Cannabis Legalisation and Control Bill

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      2. for a cannabis production licence or a cannabis testing licence, the con- trolled activity and location for which the individual is a key person:

      3. for a cannabis distribution licence, the premises for which the individual is a duty manager:

      4. the date from which the approval is granted.

    5. The Authority must issue the certificate in the prescribed manner.

    6. On receiving notice under subsection (2), the licence holder must terminate the appointment with effect from a date not later than 5 working days after the date of the notice.

    7. A licence holder who contravenes section 148(1) commits an offence and is liable on conviction to a fine not exceeding $5,000.

  2. Replacement of key person or duty manager

    1. This section applies if there is no key person or duty manager in respect of an authorised activity at a location operated under a cannabis production licence or a premises operated under a cannabis distribution licence because the indi- vidual who was the key person or duty manager has—

      1. died, become incapacitated, or for any other reason has become incapa- ble of holding the position of key person or duty manager; or

      2. ceased to be a key person or duty manager as a result of a cancellation of approval under section 111.

    2. The licence holder must, as soon as practicable, seek the Authority’s approval for an eligible person to replace the individual who has ceased to be a key per- son or duty manager in accordance with section 148.

  3. Temporary duty manager

    1. In any case where a duty manager is ill or is absent for any reason, or is dis- missed, or resigns, the licence holder may appoint as a temporary duty manager an individual who is not then the holder of an approval under section 149.

    2. The licence holder must notify the Authority of any appointment of a tempor- ary duty manager.

    3. The licence holder must, within 5 working days, replace the temporary duty manager with an acting duty manager or duty manager who is eligible to be appointed to that role under section 149, and notify the Authority accord- ingly.

    4. A licence holder or duty manager who contravenes this section commits an offence and is liable on conviction to a fine not exceeding $5,000.

  4. Acting duty manager

Despite any other provision of this Act, a licence holder may appoint an acting duty manager—


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Cannabis Legalisation and Control Bill Part 5 cl 155

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  1. for any period not exceeding 3 weeks at any one time if a duty manager is unable to act because of illness or absence; and

  2. for periods not exceeding in the aggregate 6 weeks in each period of 12 months to enable a duty manager to have a vacation or take annual leave.

Offences

  1. Offence to sell or supply cannabis in excess of annual cultivation cap

    1. A person who holds a cannabis production licence with a cultivation activity authorisation or a micro-cultivation activity authorisation must not sell or sup- ply cannabis to any person in excess of the annual cultivation cap associated with the licence.

    2. A person who fails to comply with subsection (1) commits an offence and is liable on conviction,—

      1. in the case of an individual, to a fine not exceeding $500,000, a term of imprisonment not exceeding 6 months, or both; or

      2. in any other case, to a fine not exceeding $500,000.

  2. Offence to sell or supply cannabis to unlicensed entity

    1. A person who holds a cannabis production licence with a cultivation activity authorisation or a micro-cultivation activity authorisation must not sell or sup- ply cannabis to any person other than the holder of a cannabis production licence with a processing activity authorisation.

    2. A person who fails to comply with subsection (1) commits an offence and is liable on conviction,—

      1. in the case of an individual, to a fine not exceeding $500,000, a term of imprisonment not exceeding 2 months, or both; or

      2. in any other case, to a fine not exceeding $500,000.


    Part 5

    Control of cannabis products

  3. Authority may publish information and other data

    1. The Authority may, in order to give effect to the purposes of this Act, publish at any time or at regular intervals on an Internet site maintained by the Author- ity, a summary of data and information collected under sections 133 to 141 or extracts from that data or both.

    2. The data or information may be published—

      1. at any time and covering any period decided by the Authority:

      2. in any format decided by the Authority.


        Exposure draft for referendum75


        Part 5 cl 156 Cannabis Legalisation and Control Bill

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    3. The Authority may have any data or information referred to in subsection (1) verified or collected by another person or organisation, before or after publica- tion takes place.

  4. Sale or supply to impaired people

    1. A licence holder or a manager of any licensed premises who sells or supplies cannabis or a cannabis product to an impaired person commits an offence.

    2. A person who commits an offence against subsection (1) is liable on convic- tion to,—

      1. in the case of a licence holder, either or both of the following:

        1. a fine not exceeding $10,000:

        2. the suspension of the licensee’s licence for a period not exceeding 7 days:

      2. in the case of a manager, a fine not exceeding $10,000.

    3. A person who is not a licence holder or manager of licensed premises and who sells or supplies cannabis or a cannabis product to an impaired person commits an offence.

    4. A person who commits an offence against subsection (3) is liable on convic- tion to a fine not exceeding $2,000.

    5. Subsection (3) applies irrespective of any liability that may attach to the licence holder or any manager in respect of the same offence.

  5. Advertising cannabis products

  1. No person may, unless exempted under section 158 or 159, publish in New Zealand, or arrange for any other person to publish in New Zealand, a cannabis product advertisement.

  2. A notice or sign must be treated as a cannabis product advertisement if the notice or sign—

    1. communicates information that is or includes cannabis product health information or warnings, cannabis product purchase age information or warnings, or both; and

    2. is displayed inside or at the outside of the place of business of a person who offers cannabis products for sale (whether by retail or wholesale); and

    3. is not required or permitted by this Act, regulations under this Act, or both.

  3. A message must be treated as a cannabis product advertisement if the mes- sage—



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    Cannabis Legalisation and Control Bill Part 5 cl 158

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    1. communicates information that is or includes cannabis product health information or warnings, cannabis product purchase age information or warnings, or both; and

    2. is not required or permitted by this Act, regulations under this Act, or both.

  4. Subsections (2) and (3) do not limit the generality of subsection (1) or the definition of cannabis product advertisement in section 6(1).

  5. Every person who contravenes subsection (1) commits an offence and is liable on conviction to,—

    1. in the case of a processor, an importer, or a distributor, a fine not exceed- ing $720,000:

    2. in the case of a licence holder (other than the holder of a micro-cultiva- tion licence), a fine not exceeding $240,000:

    3. in the case of a holder of a micro-cultivation licence, a fine not exceed- ing $60,000:

    4. in any other case, to a fine not exceeding $60,000.

  1. Exemptions from advertising prohibition for specified publications

    1. Nothing in section 157 applies to any of the following:

      1. a price list given to retailers of cannabis products if the price list—

        1. complies with the regulations; and

        2. includes the health messages required by this Act and the regula- tions:

      2. an advertisement included in any book, magazine, or newspaper printed outside New Zealand, or in any radio or television transmission originat- ing outside New Zealand, or in any film or video recording made outside New Zealand, unless—

        1. the main purpose of the book, magazine, newspaper, transmission, film, or video recording is the promotion of the use of cannabis products; or

        2. the book, magazine, newspaper, film, or video recording is inten- ded for sale, distribution, or exhibition primarily in New Zealand; or

        3. in the case of an advertisement in any radio or television transmis- sion, the advertisement is targeted primarily at a New Zealand audience:

      3. the publication by a cannabis products processor of a cannabis product advertisement in a magazine that is intended for distribution only to employees of the processor:

      4. the exhibition, in any museum or art gallery, of any work or artefact:


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        Part 5 cl 159 Cannabis Legalisation and Control Bill

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      5. the dissemination, broadcasting, or exhibition of any film, video or sound recording where—

        1. that film, video recording, or sound recording was made before the calendar year during which this legislation is enacted; and

        2. the cannabis product advertisement included in that film, video recording, or sound recording is in the form of a reference to, or a depiction of, a cannabis product trade mark that is only an inci- dental part of that film, video recording, or sound recording; and

        3. both the matters described in subparagraphs (i) and (ii) com- ply with the regulations:

      6. any public health messages approved by the Authority:

      7. the following actions of a licence holder who has a retail or consumption premises authorisation if done in the approved premises and in accord- ance with regulations:

        1. the giving of advice and recommendations about cannabis prod- ucts to customers who are inside the premises, including informa- tion about the THC content of cannabis products:

        2. the display and provision of public health messages or other mes- sages relating to harm reduction by third parties approved by the Authority:

        3. the display of a sample of cannabis products within the premises for the purpose of allowing customers to see and handle but not consume the cannabis products available for purchase.

    2. To avoid doubt, subsection (1)(g)(ii) is subject to section 160(1)(b) (which relates to the visibility of regulated products from within the place of business).

  2. Exemptions from advertising prohibition for retailers

    A licence holder who has a retail or consumption premises authorisation may do all or any of the following things:

    1. provide inside that retailers place of business and on a request (however expressed) made for the purpose by a person who has asked to purchase a specified, or any available product (in any medium but only in form of printed, written, or spoken words) information that—

      1. does no more than identify the cannabis products that are avail- able for purchase and indicate their price; and

      2. complies with the regulations.

    2. display inside that retailer’s place of business any notice for the public that—



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      Cannabis Legalisation and Control Bill Part 5 cl 160

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      1. does no more than indicate, using only printed or written words, the fact that cannabis products in general are available for pur- chase in that place; and

      2. complies with the regulations:

    3. display the retailer’s name or trade name on the outside of the retailer’s place of business—

      1. so long as the name is not and does not include either or both of the following:

        1. any word or expression signifying that any cannabis prod- uct is available in that place for purchase:

        2. the trade mark of a cannabis product or the company name of a cannabis product processor; and

      2. if the retailer complies with regulations regulating the use of unsuitable names; and

      3. if the retailer’s name is displayed with the standardised cannabis symbol.

  1. Display of cannabis products in or from sales outlets, etc, generally prohibited

    1. A licence holder who offers cannabis products for sale (whether by retail or wholesale) must not allow any part of a cannabis product or cannabis package at the outside of or inside the person’s place of business to be for any reason visible—

      1. from outside the place of business; or

      2. from an area inside the place of business to which members of the public are allowed access.

    2. Subsection (1) does not, however, apply to a cannabis product or cannabis package that is visible only to the extent that is necessary for it to be deliv- ered—

      1. to the licence holder at the place of business; or

      2. to its purchaser at or from the place of business.

    3. Subsection (1)(b) does not apply in respect of any cannabis product or can- nabis package that is classified by the regulations as a standard risk product.

    4. A cannabis product or cannabis package must be treated as being visible only to the extent that is authorised under subsection (2)(a) if it is delivered—

      1. to a person and at, or from, a place specified in that paragraph; and

      2. using a form of visible delivery prescribed by any relevant acceptable forms of visible delivery prescribed in the regulations.


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        Part 5 cl 161 Cannabis Legalisation and Control Bill

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    5. Subsections (1) and (2) do not apply to a cannabis product or cannabis package that is visible in a way that complies with any relevant temporary tran- sitional exemption regulations.

    6. A licence holder who contravenes subsection (1) or (2) commits an offence and is liable on conviction to a fine not exceeding $10,000.

  2. Use of trade marks, etc, on goods other than cannabis products, or in relation to sponsored events

  1. In this section and section 162, non-cannabis article means an article that is not—

    1. a cannabis product; or

    2. a package or container in which a cannabis product is sold or shipped.

  2. No licence holder may use, other than in a private capacity, a cannabis product trade mark—

    1. on any non-cannabis article; or

    2. for the purpose of advertising or identifying to the public—

      1. any non-cannabis article; or

      2. any service, activity, or event; or

      3. any scholarship, fellowship, or other educational benefit,—

        even though that person would, but for this Act, be entitled to use the trade mark on that article or for that purpose.

  3. If a trade mark includes the company name, or part of the company name, of a processor, an importer, or a distributor in New Zealand of any cannabis prod- uct, no licence holder may, other than in a private capacity, use that company name for the purpose of advertising or identifying to the public—

    1. any non-cannabis article; or

    2. any service, activity, or event; or

    3. any scholarship, fellowship, or other educational benefit,—

      even though that person would, but for this Act, be entitled to use that trade mark or company name for that purpose.

  4. No person may distribute, sell, or offer or expose for sale any non-cannabis art- icle that bears a trade mark of a cannabis product that is sold in New Zealand.

  5. Nothing in subsections (1) to (4) applies to a trade mark or company name that, during the year ending with the calendar year during which this legislation is enacted, was applied to cannabis products and other articles sold at retail in New Zealand if the estimated retail value of those other articles sold during that year exceeded one-quarter of the estimated retail value of those cannabis products sold during that year.


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    Cannabis Legalisation and Control Bill Part 5 cl 163

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  6. Nothing in subsections (1) to (4) applies to the use, by any person (other than a processor, an importer, a distributor, or a retailer of any cannabis prod- ucts, or a person acting on behalf of any such processor, importer, distributor, or retailer) of a trade mark or company name for any purpose (other than for application to, or for use in connection with, cannabis products or cannabis accessories) if the trade mark or company name—

    1. was in use in New Zealand for that purpose before the calendar year dur- ing which this legislation is enacted; or

    2. was in use for that purpose at any time before that trade mark or com- pany name was first used, in New Zealand, for application to, or in con- nection with, any cannabis product or cannabis accessory.

  1. Prohibition on use of non-cannabis trademarks on cannabis products or accessories

    No licence holder may use, other than in a private capacity, a trade mark for a non-cannabis article on—

    1. a cannabis product; or

    2. a package or container in which a cannabis product is sold or shipped.

  2. Sponsoring activity involving use of trade mark, etc, of cannabis products

    1. No person who is a processor, an importer, a distributor, or a retailer of canna- bis products may sponsor (within the meaning of subsection (2)) an organ- ised 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 activity, or on or through any thing other than a cannabis product, of all or any of the following:

      1. a cannabis product trade mark:

      2. all or any part of a company name included in a cannabis product trade mark:

      3. 1 or more words, logos, colours, shapes, sounds, smells, or other elem- ents of a cannabis 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 more elem- ents are used in, on, or through it only or mainly for the purpose of advertising the product.

    2. A person sponsors an organised activity for the purposes of subsection (1)

      if, and only if, the person does all or any of the following:

      1. organises or promotes, before the activity is to take place, or during the time that it takes place, some or all of the activity:

      2. makes, before the activity is to take place, or during or after the time that it takes place, any financial or non-financial contribution towards some or all of the activity:


        Exposure draft for referendum81


        Part 5 cl 164 Cannabis Legalisation and Control Bill

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      3. 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 of the activ- ity.

  3. Using a non-cannabis trademark with cannabis

    A person who contravenes section 161, 162, or 163 commits an offence and is liable on conviction to,—

    1. in the case of a processor, an importer, or a distributor, a fine not exceed- ing $720,000; or

    2. in the case of a micro-cultivation licence holder, a fine not exceeding

      $60,000; or

    3. in the case of any other licence holder, a fine not exceeding $240,000; or

    4. in the case of any other person, a fine not exceeding $60,000.

  4. Using vending machine to sell cannabis

    A person who sells, or attempts to sell, cannabis in a vending machine commits an offence and is liable on conviction,—

    1. in the case of a processor, an importer, or a distributor, to a fine not exceeding $720,000; or

    2. in the case of a micro-cultivation licence holder, to a fine not exceeding

      $60,000; or

    3. in the case of any other licence holder, to a fine not exceeding $240,000; or

    4. in the case of any other person, to a fine not exceeding $60,000.

  5. Sponsoring activity involving exclusive supply arrangement

  1. No person who holds a licence may sponsor (within the meaning of section 163(2)) 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 an arrangement for the person to be the only person supplying cannabis products at, or for the purposes of, some or all of the event.

  2. The arrangement may be a contract, or a legally binding or other agreement, undertaking, or understanding.

  3. Subsection (2) does not limit subsection (1).

  4. This section operates in parallel with (that is, is not subject to, and does not override) the Commerce Act 1986.

  5. A person who contravenes subsection (1) commits an offence and is liable on conviction to,—



82 Exposure draft for referendum



Cannabis Legalisation and Control Bill Part 5 cl 167

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  1. in the case of a processor, an importer, or a distributor, a fine not exceed- ing $720,000; or

  2. in the case of a micro licence holder, a fine not exceeding $60,000; or

  3. in the case of any other licence holder, a fine not exceeding $240,000; or

  4. in the case of any other person, a fine not exceeding $60,000.

  1. Free distribution and rewards prohibited

    1. No processor, distributor, importer, or retailer of cannabis products may, free of charge or at a reduced charge,—

      1. distribute any cannabis product; or

      2. supply any cannabis product to any person for subsequent distribution; or

      3. in the case of a retailer, supply any cannabis product to any person for the purpose of that retailer’s business.

    2. For the purposes of subsection (1), a cannabis product is distributed or sup- plied at a reduced charge

      1. if the charge for the product itself is reduced; or

      2. if—

        1. the product is distributed or supplied at a charge that is not or pur- ports not to be reduced; but

        2. some other item is supplied, free or at a reduced charge, together with the product.

    3. No person may—

      1. offer any gift or cash rebate, or the right to participate in any contest, lot- tery, or game, to the purchaser of a cannabis product in consideration for the purchase of that product, or to any person in consideration for the provision of evidence of such a purchase; or

      2. offer, to any retailer, any gift or cash rebate, or the right to participate in any contest, lottery, or game, as an inducement or reward in relation to—

        1. the purchase or sale of cannabis products by that retailer; or

        2. the advertising of cannabis products inside that retailer’s place of business; or

        3. the location of cannabis products in a particular part of that retail- er’s place of business; or

      3. offer a cannabis product as a prize in any contest, lottery or game.

    4. Nothing in subsection (3) applies in respect of any payment or reward to any person who purchases or attempts to purchase any cannabis product—

      1. with the authority of the head of the Authority or of some other person authorised for that purpose by the head of the Authority; and


        Exposure draft for referendum83


        Part 5 cl 168 Cannabis Legalisation and Control Bill

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      2. for the purpose of monitoring compliance with the provisions of this Act or the regulations.

    5. A person who contravenes this section commits an offence and is liable on con- viction to—

      1. in the case of a processor, an importer, or a distributor, a fine not exceed- ing $720,000; or

      2. in the case of a micro-cultivation licence holder, a fine not exceeding

        $60,000; or

      3. in the case of any other licence holder, a fine not exceeding $240,000; or

      4. in the case of any other person, a fine not exceeding $60,000.

  2. Arrangements conflicting with Act have no effect

    1. A term has no effect if—

      1. it is expressed or implied in an arrangement of any kind in any form; and

      2. compliance with it would limit or prevent compliance with this Act.

    2. The arrangement may be a contract, or a legally binding or other agreement, undertaking, or understanding.

    3. Subsection (2) does not limit subsection (1).

    4. A person who is, or is claiming through or under, a party to the arrangement may (regardless of whether it is a contract) seek relief under subpart 5 of Part 2 of the Contract and Commercial Law Act 2017 (which applies with all neces- sary modifications) as if compliance with the term were performance, in a way that gives rise to illegality, of a provision of a contract.

  3. Advertisements concerning harms from cannabis use not affected

    Nothing in sections 160 to 167 applies to a person who uses a sign, symbol, trade mark or text for the purposes of advertising services to assist in managing health-related harms.

  4. Point-of-sale health information or warnings signs

  1. A person who offers a cannabis product for sale (by retail or wholesale) must, at all times when prescribed requirements for point-of-sale health information or warnings signs applying to that person are in force under this Act, display clearly at each point of sale outside of or inside the person’s place of business a sign for the public that—

    1. complies with the prescribed requirements; and

    2. contains no other information.

  2. A person who contravenes this section commits an offence and is liable on con- viction to a fine not exceeding $2,000.



84 Exposure draft for referendum



Cannabis Legalisation and Control Bill Part 5 cl 172

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  1. Sale of cannabis products with other products prohibited

    1. This section applies to a cannabis product if it is—

      1. packed together with a product that is not a cannabis product or cannabis accessory; or

      2. distributed or supplied, together with a product that is not a cannabis product or a cannabis accessory, at a single price.

    2. No processor, distributor, importer, or retailer of cannabis products may—

      1. distribute a cannabis product to which subsection (1) applies; or

      2. supply a cannabis product to which subsection (1) applies to another person for later distribution; or

      3. in the case of a retailer, supply a cannabis product to which subsection

        1. applies to another person for the purpose of that retailer’s business.

    3. A person who contravenes this section commits an offence and is liable on con- viction to,—

      1. in the case of an offence involving the supply of a cannabis product with alcohol or tobacco,—

        1. a fine not exceeding $10,000; and

        2. if the offence is committed by a licence holder, suspension of the licence holder’s licence for a period not exceeding 7 days; or

      2. in the case of any other offence, a fine not exceeding $4,000.

  2. Messages and information required for cannabis products

    1. No processor, importer, distributor, or retailer may sell or offer for sale to the public a cannabis product unless—

      1. the package containing it displays, in accordance with regulations under this Part, as many of the following things as the regulations require:

        1. a message relating to—

          1. the harmful health, social, cultural, or economic effects, or other harmful effects, of using the product:

          2. the beneficial effects of stopping the use of the product or of not using the product:

        2. a list of the harmful constituents, and their respective quantities, present in the product:

        3. a list of the constituents, and their respective quantities, present in the product:

        4. whether as part of or in addition to any message about effects, a photograph or picture relating to—

          1. the harmful health, social, cultural, or economic effects, or other harmful effects, of using the product:


            Exposure draft for referendum85


            Part 5 cl 173 Cannabis Legalisation and Control Bill

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          2. the beneficial effects of stopping the use of the product or of not using the product:

        5. a statement, in the prescribed manner or form, of what proportion of the daily purchase limit specified in section 31 the product represents:

        6. a statement, in the prescribed manner or form, of how much THC and CBD the product contains; and

      2. if required by the regulations, the package containing the product con- tains a leaflet with as much of the following information as the regula- tions require:

        1. information relating to—

          1. the harmful health, social, cultural, or economic effects, or other harmful effects, of using the product:

          2. the beneficial effects of stopping the use of the product or of not using the product; and

        2. a list of the harmful constituents, and their respective quantities, present in the product.

    2. A person who contravenes subsection (1) commits an offence and is liable on conviction to a fine not exceeding $2,000.

  3. False, misleading or therapeutic claims prohibited

    1. No processor, importer, distributor or retailer may make claims in support of the consumption of cannabis or a cannabis product that—

      1. are false; or

      2. are misleading; or

      3. contain statements that cannabis or a cannabis product has a therapeutic effect or purpose; or

      4. contain statements to the effect that cannabis or cannabis products main- tain or improve health.

    2. A person who contravenes subsection (1) commits an offence and is liable on conviction to—

      1. a fine not exceeding $5,000; and

      2. in the case of a licence holder, suspension of the licence holder’s licence for a period not exceeding 7 days.

  4. Selling cannabis remotely

    A licence holder who sells, or attempts to sell, cannabis to a person who is not physically present in a licensed premises commits an offence and is liable on conviction,—

    1. in the case of an entity, to a fine not exceeding $10,000; or


      86 Exposure draft for referendum



      Cannabis Legalisation and Control Bill Part 5 cl 177

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    2. in any other case, to a fine not exceeding $5,000.

  1. Presenting for sale cannabis product that may be attractive to children

    A licence holder who presents a cannabis product for sale that the Authority has declared by public notice to be prohibited because it may be attractive to children commits an offence and is liable on conviction to,—

    1. in the case of an individual, a fine not exceeding $5,000; or

    2. in any other case, a fine not exceeding $10,000.

  2. Prohibition on feeding of cannabis or cannabis products to animals

    1. No person may intentionally feed or otherwise administer cannabis or a canna- bis product to an animal.

    2. A person who contravenes subsection (1) commits an offence and is liable on conviction to a fine not exceeding $5,000.

  3. Use of unlicensed premises as place for general consumption of cannabis or cannabis products

    1. A person who is the occupier, or has or takes part in the care, management, or control, of any unlicensed premises commits an offence if that person allows those premises to be kept or used as a place where unreasonable general access is allowed for the consumption of cannabis or cannabis products.

    2. A person who commits an offence against subsection (1) is liable on convic- tion to a fine not exceeding $20,000.

    3. Subsections (1) and (2) do not apply to the consumption of cannabis or can- nabis products by any person on any premises on which that person resides, whether that person is the occupier of the premises or not.

    4. In determining whether premises are a place where unreasonable general access is allowed for the consumption of cannabis, the court must consider—

      1. the amount of cannabis consumption in the premises:

      2. the degree to which the availability of access to the premises is made publicly known:

      3. whether persons are required to pay to enter the premises:

      4. the potential for harm relating to cannabis consumption that could occur on the premises:

      5. the extent to which cannabis consumption is the main activity occurring on the premises:

      6. whether other products and services are sold on the premises.

    5. A person who acts as, or as if he or she were, an occupier or a person having any part in the care, management, or control of any premises is to be treated as an occupier of the premises, but without affecting the liability of any other per- son.


      Exposure draft for referendum87


      Part 6 cl 178 Cannabis Legalisation and Control Bill

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    6. Premises may be treated as being kept or used as a place where general access is allowed for the consumption of cannabis or cannabis products even though they are open only for the use of particular people or particular classes of per- son, and not to all people who wish to use them.


    Part 6

    Provisions relating to retail sale and consumption premises: premises operations and licence processes

    Premises operations—general provisions

  4. Application of Part 6

    This Part applies only in respect of premises operated under a consumption premises activity authorisation or a retail activity authorisation.

  5. Use of consumption premises for consumption of cannabis and cannabis products

    On any premises for which a consumption premises activity authorisation is held, the licence holder must allow people to consume cannabis and cannabis products there (including cannabis and cannabis products brought there from outside the premises) and the other retail activities referred to in section 72.

  6. Other requirements for consumption premises

    On any premises for which a consumption premises activity authorisation is held, the licence holder must—

    1. have food and non-alcoholic beverages available for sale; and

    2. supply water free of charge to customers.

  7. Cannabis retail premises

    On any premises for which a retail activity authorisation is held, the licence holder may sell cannabis products and cannabis accessories, and undertake the other activities authorised under section 71.

  8. Authority may set trading hours

  1. The Authority may set maximum and minimum trading hours and the range of permitted hours for consumption premises and retail premises, and the licence holder may only operate in accordance with those directions.

  2. A licence holder with a consumption premises activity authorisation or retail activity authorisation who contravenes subsection (1) commits an offence and is liable on conviction to a fine not exceeding $10,000.


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Cannabis Legalisation and Control Bill Part 6 cl 185

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  1. Licences to be displayed in premises

    1. A licence holder with a consumption premises activity authorisation or a retail activity authorisation must ensure that at all times a copy of the parts of the licence required to be displayed by the Authority, together with a statement of all conditions subject to which the licence is issued,—

      1. is displayed attached to the inside of the premises concerned; and

      2. is easily readable by people entering each principal entrance.

    2. A licence holder who contravenes subsection (1) commits an offence and is liable on conviction to a fine not exceeding $1,000.

    Controls on consumption and retail premises’ operations

  2. Meaning of impaired

    A person is impaired within the meaning of sections 185 to 191 if that per- son’s mental abilities, physical capabilities, or both, are observably reduced due to the consumption of cannabis or alcohol or another substance.

  3. Sale or supply of cannabis to impaired people

    1. The licence holder or a manager of any premises that operates under a con- sumption premises activity authorisation or a retail activity authorisation who sells or supplies cannabis or a cannabis product to an impaired person, commits an offence.

    2. A person who commits an offence against subsection (1) is liable on convic- tion,—

      1. in the case of a licence holder, to either or both of the following:

        1. a fine not exceeding $10,000:

        2. the suspension of the licence holder’s licence for a period not exceeding 7 days:

      2. in the case of a manager, to a fine not exceeding $10,000.

    3. A person who is not a licence holder or manager of premises that, operates under a consumption premises activity authorisation or a retail activity author- isation and who sells or supplies cannabis or a cannabis product to an impaired person commits an offence.

    4. A person who commits an offence against subsection (3) is liable on convic- tion to a fine not exceeding $2,000.

    5. Subsection (3) applies irrespective of any liability that may attach to the licence holder or any manager in respect of the same offence.


    Exposure draft for referendum89


    Part 6 cl 186 Cannabis Legalisation and Control Bill

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  4. Offence to allow consumption of cannabis on retail premises

    1. A licence holder or manager of premises operated under a retail activity author- isation only who allows a person to consume cannabis on the premises com- mits an offence.

    2. A person who commits an offence against subsection (1) is liable on convic- tion,—

      1. in the case of a licence holder to either or both of the following:

        1. a fine not exceeding $20,000:

        2. the suspension of licence holder’s licence for a period not exceed- ing 7 days:

      2. in the case of a manager, to a fine not exceeding $20,000.

  5. Offence to employ or to allow persons 19 years old or younger to enter or consume cannabis on retail or consumption premises

  1. A licence holder or manager who operates premises under consumption prem- ises activity authorisation or a retail activity authorisation who allows a person aged 19 years or younger to enter or to consume cannabis on the premises com- mits an offence.

  2. A person who commits an offence against subsection (1) commits an offence and is liable on conviction to,—

    1. in the case of a licence holder, either or both of the following:

      1. a fine not exceeding $10,000:

      2. suspension of the licence holder’s licence not exceeding 7 days:

    2. in the case of a manager, a fine not exceeding $10,000:

    3. in any other case, a fine not exceeding $2,000.

  3. In any proceedings for an offence against subsection (1), it is a defence if the defendant proves that,—

    1. before or at the time of entry into the premises concerned, there was pro- duced to the person in charge of the premises a document purporting to be an approved evidence of age document; and

    2. the person believed on reasonable grounds that the document—

      1. was an approved evidence of age document; and

      2. related to the customer; and

      3. indicated that the customer was not under the age of 20; and

    3. the person reasonably believed that the customer was not under the age of 20.

  4. In any proceedings for an offence against subsection (1), it is a defence if the defendant proves that, before or at the time of entry into the consumption premises, the person who allowed the customer to enter the premises verified


    90 Exposure draft for referendum



    Cannabis Legalisation and Control Bill Part 6 cl 190

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    the customer’s age using an approved evidence of age system in the approved manner.

  5. The holder of a cannabis distribution licence must not employ a person aged 19 or younger in a premises operated under a consumption premises activity authorisation or a retail activity authorisation.

  6. A licence holder who contravenes subsection (5) commits an offence and is liable on conviction to a fine not exceeding $4000.

  1. Authority may issue rules about host responsibility

    1. The Authority may issue rules that licence holders, managers, and employees working in a premises that operate under a consumption premises activity authorisation must comply with.

    2. Those rules may deal with the responsibility of licence holders, managers, and employees working in a consumption premises in relation to the following:

      1. purchasers or consumers of cannabis on the premises:

      2. other persons on the premises who are not purchasing or consuming can- nabis on the premises:

      3. the design and operation of the premises.

    3. A licence holder or manager of premises who contravenes subsection (1) or allows other employees working on the premises to contravene subsection (1), commits an offence and is liable on conviction to a fine not exceeding

    $5,000.

  2. Manager affected by substances while on duty

    1. A manager of premises that operate under a consumption premises activity authorisation or a retail activity authorisation who, without reasonable excuse, is affected by alcohol, cannabis, or a drug or medicine (other than a prescribed drug or medicine that can be obtained without prescription from a pharmacy, supermarket, or other shop) while on duty, commits an offence.

    2. A person who commits an offence against subsection (1) is liable on convic- tion to a fine not exceeding $5,000.

  3. Employee affected by substances while on duty

    1. An employee employed or engaged in a premises that operate under a con- sumption premises activity authorisation or a retail activity authorisation who, without reasonable excuse, is affected by alcohol, cannabis, or a drug or medi- cine (other than a prescribed drug or medicine that can be obtained without prescription from a pharmacy, supermarket, or other shop) while on duty, com- mits an offence.

    2. A person who commits an offence against subsection (1) is liable on convic- tion to a fine not exceeding $5,000.


    Exposure draft for referendum91


    Part 6 cl 191 Cannabis Legalisation and Control Bill

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  4. Allowing impaired person on premises with retail activity authorisation

    1. The licence holder or a manager of any premises that operate under a retail activity authorisation only who allows an impaired person to either enter or remain on those licensed premises commits an offence.

    2. A person who commits an offence against subsection (1) is liable on convic- tion to a fine not exceeding $5,000.

    3. It is a defence to a charge under subsection (1) if the defendant satisfies the court that, as soon as the defendant or any employee of the licence holder became aware of the situation, reasonable steps were taken in respect of the impaired person concerned, either—

      1. to take the person to a place of safety on the licensed premises; or

      2. to remove the person from the licensed premises.

  5. Allowing disorderly conduct on licensed premises

    1. The licence holder or a manager of any premises that operates under a con- sumption premises activity authorisation or a retail activity authorisation who allows any violent, quarrelsome, insulting, or disorderly conduct to take place on those licensed premises commits an offence.

    2. A person who commits an offence against subsection (1) is liable on convic- tion to a fine not exceeding $5,000.

    3. It is a defence to a charge under subsection (1) if the defendant satisfies the court that, as soon as the defendant or any employee of the licence holder became aware of the situation, reasonable steps were taken in respect of each person involved in the conduct concerned, either—

      1. to take the person to a place of safety on the licensed premises; or

      2. to remove the person from the licensed premises.

  6. Prohibition against allowing consumption of alcohol or tobacco in consumption premises

    A licence holder or manager of premises operated under a consumption prem- ises activity authorisation who allows alcohol or tobacco to be consumed on those premises commits an offence.

  7. Penalty for offence under section 193

    A person who commits an offence against section 193 is liable on conviction to a fine not exceeding $5,000.

  8. Prohibition against licensed cannabis retailer selling, supplying, etc, cannabis to persons under 20 years

  1. A licence holder who holds a licence authorising a retail activity or a consump- tion premises activity must not—


    92 Exposure draft for referendum



    Cannabis Legalisation and Control Bill Part 6 cl 195

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    1. sell cannabis or a cannabis product to a person aged 19 years or younger; or

    2. having sold cannabis or a cannabis product to a person of any age, deliver it or arrange for it to be delivered to a person aged 19 years or younger; or

    3. supply cannabis or a cannabis product to a person aged 19 years or younger; or

    4. supply cannabis or a cannabis product to a person with the intention that it be supplied (directly or indirectly) to a person aged 19 years or younger.

  2. A licence holder who contravenes subsection (1) commits an offence and is liable on conviction to—

    1. a fine not exceeding $50,000; and

    2. a suspension of the licence holder’s licence for a period not exceeding 7 days.

  3. In any proceedings for an offence against subsection (1)(a), (b), or (c), it is a defence if the defendant proves that,—

    1. before or at the time of the sale or supply of the cannabis or cannabis product concerned, there was produced to the person who sold or sup- plied the cannabis or cannabis product a document purporting to be an approved evidence of age document; and

    2. the person believed, on reasonable grounds, that the document—

      1. was an approved evidence of age document; and

      2. related to the customer; and

      3. indicated that the customer was not under the purchase age; and

    3. the person reasonably believed that the customer was not under the pur- chase age.

  4. In any proceedings for an offence against subsection (1)(a), (b), or (c), it is a defence if the defendant proves that, before or at the time of the sale or sup- ply of the cannabis or cannabis product concerned, the person who sold or sup- plied the cannabis or cannabis product verified the customer’s age using an approved evidence of age system in the approved manner.

  5. A person does not commit an offence against subsection (1)(d) by selling or supplying cannabis or a cannabis product to a person who then supplies the cannabis or cannabis product to a third person who is under the purchase age unless it is proved that the seller or supplier had reasonable grounds to believe that the cannabis or cannabis product was intended for a person under the pur- chase age.


Exposure draft for referendum93


Part 6 cl 196 Cannabis Legalisation and Control Bill

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  1. Selling non-approved cannabis product or cannabis or cannabis products from unlicensed source

    1. A licence holder or the manager or a staff member of any premises that oper- ates under a consumption premises authorisation or a retail activity authorisa- tion who sells any cannabis or cannabis product that is not approved for sale commits an offence.

    2. A licence holder, manager, or staff member who commits an offence under

      subsection (1) is liable on conviction to,—

      1. in the case of a licence holder who operates premises under a retail activity authorisation, or the manager or a staff member of those prem- ises, a fine not exceeding $20,000:

      2. in any other case, a fine not exceeding $50,000.

    3. A licence holder who operates premises under a retail activity authorisation, knowing that cannabis or cannabis products offered for sale at those premises were obtained from a person who was not authorised to sell or supply that can- nabis or cannabis product to the licence holder, commits an offence.

    4. A licence holder who commits an offence under subsection (3) is liable on conviction to—

      1. a fine not exceeding $20,000:

      2. the suspension of the licence holder’s licence for a period not exceeding 7 days.

  2. Selling cannabis or cannabis products with alcohol or tobacco

    A licence holder of any premises operating under a retail activity authorisation where cannabis is, or cannabis products are, sold together with alcohol or tobacco, or both, without reasonable excuse, commits an offence and is liable on conviction to—

    1. a fine not exceeding $10,000:

    2. suspension of the licence holder’s licence for a period not exceeding 7 days.

  3. Selling cannabis or cannabis products in excess of daily purchase limit to individuals

    A licence holder of any premises operating under a retail activity authorisation where cannabis or cannabis product is knowingly or recklessly sold in a greater quantity than is permitted under the daily purchase limit commits an offence and is liable to—

    1. a fine not exceeding $10,000:

    2. the suspension of the licence holder’s licence for a period not exceeding 7 days.



94 Exposure draft for referendum



Cannabis Legalisation and Control Bill Part 8 cl 202

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  1. Selling cannabis with products other than alcohol or tobacco

    A licence holder, manager, or staff member of any premises operated under a retail activity authorisation, who sells cannabis or cannabis product together with any other product (except alcohol or tobacco) commits an offence and is liable on conviction to a fine not exceeding $4,000.


    Part 7

    Security and containment of cannabis and cannabis products

  2. Licence holders must ensure security of cannabis and cannabis products

    1. A licence holder must ensure the security of cannabis and cannabis products held by the licence holder, including (without limitation) the safety and surveil- lance of the premises or site on which controlled activities are undertaken.

    2. The premises or site must be designed in a manner that—

      1. prevents unauthorised access; and

      2. detects and manages unauthorised intrusions; and

      3. ensures the safety of employees, customers, and the community.

  3. Authority may prescribe rules for security and containment

    The Authority may prescribe rules, which licence holders must comply with, for—

    1. the security of cannabis and cannabis products; and

    2. the containment of cannabis and cannabis products, including (without limitation) requirements to prevent animals from entering areas where cannabis or cannabis products are present.


      Part 8 Production standards

  4. Authority may make rules

  1. The Authority may (and in the case of paragraph (a)(ii) and (iii), must) make rules covering the whole cannabis supply chain (which must be consis- tent with this Act) for the following purposes:

    1. regulating cannabis production and marketing, and the manufacturing process, including (without limitation)—

      1. the content, form, shape, appearance, labelling, classification, risk level, manufacturing process, packaging, and form of consump- tion of cannabis products; and


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      2. the quality of cannabis and cannabis products (for example, their cleanliness or the quantities of microbial amounts that may be per- mitted in them); and

      3. the standards that must be met during the whole supply chain for cannabis and cannabis products (for example, cultivation and pro- cessing); and

      4. the inclusion of cannabis in other products; and

      5. the destruction of cannabis, including waste products:

    2. regulating substances added to or mixed with cannabis, including (with- out limitation) those that are—

      1. packaged with, or integrated in, cannabis products:

      2. sold with or alongside cannabis products to aid the consumption of cannabis products:

    3. regulating cannabis accessories that are—

      1. packaged with cannabis:

      2. sold while containing cannabis:

    4. establishing and operating a product approval process for—

      1. creating standards that cannabis products must meet before they may be offered for sale or otherwise released:

      2. approving cannabis products for sale:

    5. assessing the potency of cannabis of the classes set out in Schedule 8:

    6. setting potency limits for the classes of cannabis specified in Schedule 8:

    7. reviewing cannabis potency limits.

  2. Rules made under subsection (1) may—

    1. apply generally to all cannabis or cannabis products; or

    2. apply to particular classes of cannabis, cannabis product, or cannabis that is a cannabis product.

  3. Before making a rule, the Authority—

    1. must publish in the Gazette, and on an Internet site maintained by or on behalf of the Authority, a notice of the Authority’s intention to make the rules; and

    2. must give interested persons reasonable time (as specified in the notice) to make submissions on the proposed rules; and

    3. must consult the Cannabis Advisory Committee; and

    4. may consult any other persons and groups that the Authority thinks fit.



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  4. The Authority must maintain a list on its Internet site of all classes of cannabis and cannabis products specified in Schedule 7 indicating whether those prod- ucts are standard risk products or elevated risk products.

  5. Before making a rule setting potency limits, the Authority must—

    1. take into account the potential of CBDA to be converted into CBD and the potential of THCA to be converted into THC, including (without limitation),—

      1. in the case of fresh or dried cannabis, the formulae set out in items 1 and 2 in Schedule 8:

      2. in all other cases, the formulae set out in items 3 to 5 of Sched- ule 8; and

    2. have regard to, and give the weight that it thinks appropriate, to the fol- lowing:

      1. reducing problematic use of cannabis or cannabis products, espe- cially for Māori:

      2. preventing over-consumption of cannabis or cannabis products:

      3. providing choice to those who consume cannabis or cannabis products:

      4. creating potency limits for cannabis or cannabis products with ref- erence to potency levels found in unlawfully produced or impor- ted cannabis or cannabis products; and

    3. consult the Minister.

  6. For the purposes of subsection (5)(a)

    potential of CBDA to be converted into CBD means the maximum content of CBD that would be obtained if CBDA was converted into CBD with no further degradation of CBD

    potential of THCA to be converted into THC means the maximum content of THC that would be obtained if THCA was converted into THC with no fur- ther degradation of THC.

  7. A rule setting a potency level must be in the form specified in column 3 of Schedule 8.

  8. Rules made under this section must be made available on an Internet site main- tained by or on behalf of the Authority.

  9. Rules made under this section are disallowable instruments, but not legislative instruments, for the purposes of the Legislation Act 2012 and must be presen- ted to the House of Representatives under section 41 of that Act.

Compare: 1998 No 110 s 152A; 1989 No 80 s 18AA


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  1. Risk assessment levels for cannabis and cannabis products

    1. The Authority must classify each class of cannabis into the following categor- ies:

      1. standard risk products:

      2. elevated risk products.

    2. The Authority may devise criteria to be applied in determining whether each class of cannabis is a standard risk product or a elevated risk product which may, but need not, be set out in rules made under section 202(1)(d).

    3. Despite subsections (1) and (2), cannabis edibles have an elevated risk status.

  2. Restriction on distribution of elevated risk products

    A licence holder may not distribute, sell, or supply cannabis products with an elevated risk status unless the Authority has approved them for distribution.

  3. Requirement for notification before first New Zealand release of standard risk product

    A licence holder who proposes to release a standard risk class cannabis or can- nabis product that has not previously been sold in New Zealand for distribu- tion, sale, or supply in New Zealand must first notify the Authority in the form and manner required by the Authority.

  4. Authority may require licence holder to supply information

    The Authority may require any licence holder to supply any information required by the Authority to assess whether cannabis or a cannabis product should be assessed as a standard risk product or elevated risk product.

  5. Cannabis edibles must comply with Act, regulations, and rules

    1. Cannabis edibles must comply with—

      1. this Act and any regulations or rules made under it; and

      2. any provision of another enactment regarding food and food safety that the regulations apply to cannabis edibles.

    2. If a provision of this Act or of regulations or rules made under it is inconsistent with a provision in another enactment regarding food or food safety, this Act or the regulations or the rules made under it prevails.

    3. A licence holder who knowingly produces or sells cannabis edibles that contra- vene subsection (1) commits an offence and is liable on conviction to a fine not exceeding $5,000.

  6. Restrictions on cannabis edibles

  1. No licence holder may process, produce, or sell cannabis products that are can- nabis edibles unless those products—


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    Cannabis Legalisation and Control Bill Part 8 cl 211

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    1. are baked ready to eat; and

    2. do not require refrigeration or heating; and

    3. have a water activity level of less than 0.85; and

    4. contain no additives or nutritive substances or novel foods, unless authorised by regulations; and

    5. comply with any relevant—

      1. rules made under section 202; and

      2. enactments relating to food or food safety that are applied for the purposes of this section by regulations; and

      3. restrictions or conditions imposed by the Authority.

  2. A licence holder who contravenes subsection (1) commits an offence and is liable on conviction to a fine not exceeding $5,000.

  1. Authority may stop sale of or recall cannabis products

    1. If a cannabis product is found to be harmful, the Authority may—

      1. issue a public notice requiring all licence holders to stop the sale of the cannabis product:

      2. issue a public notice requiring the recall of the cannabis product:

      3. require all relevant licence holders or producers to provide any relevant information to the Authority about the cannabis product:

      4. specify conditions about the method by which recalled products are to be returned.

    2. A licence holder or a producer who refuses or fails to comply with a require- ment under subsection (1) commits an offence and is liable on conviction to a fine not exceeding $5,000.

  2. Offence to produce or sell cannabis that exceeds its permitted potency level or other constituent limits

    A licence holder or manager who, without reasonable excuse, produces or sells a cannabis product that exceeds its permitted potency level or maximum level of any permitted constituents commits an offence and is liable on conviction to a fine not exceeding $10,000.

  3. Prohibition on sale of novel or harmful cannabis products

    1. No licence holder may sell cannabis or a cannabis product of a kind that the Authority has declared by public notice to be a prohibited product on the grounds that it—

      1. is novel; and

      2. has no effect or will worsen cannabis harms in the community.


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    2. A licence holder who contravenes subsection (1) is liable on conviction to a fine not exceeding $5,000.

  4. Sale or supply of certain kinds of cannabis or cannabis product prohibited

    1. A licence holder may not produce, sell, or supply cannabis products that con- tain any of the following:

      1. alcohol:

      2. caffeine:

      3. nicotine:

      4. kava:

      5. tobacco:

      6. any other prescribed substance.

    2. Despite subsection (1), a licence holder may produce, sell, or supply canna- bis products that contain caffeine or alcohol if—

      1. the Authority has made a rule that—

        1. allows a specified cannabis product or specified class of cannabis products to contain caffeine or alcohol; and

        2. specifies the maximum amount of caffeine or alcohol that the can- nabis product or class of cannabis products may contain; and

      2. the cannabis product complies with the rule.

    3. A licence holder who contravenes subsection (1) or (2) commits an offence and is liable on conviction to a fine not exceeding $5,000.

  5. Offence to produce or sell unclassified cannabis products

    1. No licence holder may sell a cannabis product to another person unless—

      1. the product is in a class of cannabis listed in Schedule 7 that may be approved for sale; and

      2. that class of cannabis has been approved for sale by regulations.

    2. A licence holder who contravenes subsection (1) commits an offence and is liable on conviction to a fine not exceeding $20,000.

  6. Offence to produce or sell cannabis products with substances that enhance effects of cannabis

  1. No licence holder, except the holder of a research licence, may produce a can- nabis product knowing that it contains any additive that enhances the psycho- active or addictive effects of cannabis.

  2. A licence holder who contravenes subsection (1) commits an offence and is liable on conviction to a fine not exceeding $5,000.



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  1. Production and sale of certain cannabis products prohibited

    1. A licence holder may not knowingly produce or sell any cannabis product that contains dried cannabis or fresh cannabis if the cannabis product contains the roots or stems of the cannabis plant.

    2. A person may not produce or sell any cannabis product that may be con- sumed—

      1. by injection:

      2. by the use of suppositories:

      3. through the eyes, ears, or nose:

      4. by any other method prohibited by the Authority on the grounds that it is dangerous.

    3. A person who contravenes subsection (1) or (2) is liable on conviction to a fine not exceeding $5,000.

  2. Prohibition or sale of cannabis products without proper labelling and packaging

    1. A licence holder may not sell a cannabis product that does not comply with the requirements in rules made under sections 172, 222, and 226 to 232.

    2. A licence holder must ensure that a label on a cannabis product sold under the licence must not contain any statement about a standard level of cannabis con- sumption unless it is consistent with rules made under section 202.

    3. A licence holder who contravenes subsection (1) or (2) is liable on convic- tion to,—

      1. in the case of a licence holder with a processing activity authorisation,

        $10,000:

      2. in the case of a licence holder with a retail activity authorisation, $4,000:

      3. in the case of a licence holder who packaged the cannabis product,

    $2,000.

  3. Food may not be processed in cannabis facility

    1. No licence holder may process cannabis or a cannabis product in any part of a building or other premises that is being used for the processing of food, or for commercial food preparation.

    2. No licence holder may process food in any part of a building or other place that is used for the processing of cannabis or a cannabis product.

    3. A licence holder who contravenes subsection (1) or (2) is liable on convic- tion to either or both of the following:

      1. a fine not exceeding $5,000:

      2. suspension of the licence holder’s licence for a period not exceeding 7 days.


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  4. Authority may make rules about cultivation, processing, and production

    1. The Authority may make rules about cultivation, processing, and production at buildings or other premises that are a licensed cannabis facility, including the following:

      1. specifying what can and cannot be cultivated, processed, or produced in the same licensed cannabis facility:

      2. imposing conditions or restrictions on the cultivation, processing, or pro- duction of different things at a licensed cannabis facility (for example, imposing restrictions on the production of medicines and cannabis prod- ucts in the same facility, or requiring low and high THC products to be processed separately).

    2. Rules under subsection (1) may apply—

      1. generally in relation to all kinds of licensed cannabis facility or to a par- ticular class of licensed cannabis facility or to a particular licensed can- nabis facility:

      2. generally to cannabis or cannabis products or to a particular class of can- nabis or cannabis product or cannabis that is a cannabis product:

      3. generally in relation to constituents of cannabis or a cannabis product or to a particular class of cannabis or cannabis product, or to a particular constituent:

      4. generally in relation to matters listed in paragraphs (a) to (c) or only if specified criteria apply in relation to those matters or any of them.

    3. This section does not limit the power of the Authority to make rules under sec- tion 202.

    4. In this section, licensed cannabis facility means a facility in which authorised cannabis-related operations are undertaken in accordance with a licence that the Authority has issued.


    Part 9 Testing

    Testing and reporting

  5. Testing cannabis and cannabis products

  1. No person may sell or otherwise market cannabis or cannabis products for rec- reational use unless the cannabis or cannabis products are tested by an author- ised analytical testing laboratory.

  2. The Authority may determine—

    1. the form that the cannabis or cannabis products must take when tested, which may include rules about the form of a representative sample of cannabis or a cannabis product:


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      Cannabis Legalisation and Control Bill Part 9 cl 221

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    2. the step in the production process at which cannabis or cannabis prod- ucts must be tested:

    3. the time and place at which the cannabis or cannabis product must be tested.

  3. The independent testing laboratory must comply with any quality standards and requirements that the Authority specifies, including (without limitation) accreditation through a specified accrediting programme (whether national or international).

  4. Cannabis and cannabis products must be tested for their cannabinoid profile consistency and for contaminants as specified by the Authority including (with- out limitation), pesticide and fumigant residues, heavy metals, toxic elements, microbial limits, and the quantity of certain cannabinoids, including THC, THCA, CBD, and CBDA.

  5. The independent testing laboratory must—

    1. keep records of the testing results in the manner and form, and for the period, that the Authority specifies; and

    2. report the results to the Authority in the manner and the form that the Authority specifies.

  1. Head of Authority may require further testing

    1. In addition to the annual test or tests required by section 219, the head of the Authority may, by notice in writing to the processor or importer of a product to which that section applies, require a further test or tests to be conducted.

    2. The further test or tests must be conducted, in accordance with the regulations referred to in section 219,—

      1. in a laboratory nominated by the head of the Authority; but

      2. at the expense in all respects of the processor or importer.

    3. In any year, the head of the Authority must not require tests under this section in respect of more than 10% of the brands of products to which section 219 applies and sold by a particular processor or importer.

  2. Returns and reports

    The head of the Authority—

    1. must take all practicable steps to ensure that the returns and reports it receives are published on an Internet site maintained by or on behalf of the Authority; and

    2. may publish or make publicly available all or any part of those returns or reports in any other way.


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  3. Regulations for standardised packaging (including messages and information).

  1. The Governor-General may, by Order in Council, make regulations for all or any of the following purposes:

    1. prescribing requirements, or options permitted, for all or any aspects of the appearance of a cannabis product:

    2. prescribing the quantity or quantities in which a cannabis product must be packaged:

    3. prescribing—

      1. the form, size, and content of messages and information to be dis- played with, on, or in the package for a cannabis product:

      2. the photographs and pictures to be displayed as part of or in add- ition to messages about effects relating to a cannabis product:

      3. the circumstances and manner in which the messages, informa- tion, photographs, and pictures must be displayed:

    4. prescribing requirements, or options permitted, for the display of the brand or company name on the package for a cannabis product, includ- ing the circumstances and manner in which the name is to be displayed:

    5. prescribing requirements, or options permitted, for all or any other aspects of the appearance of the package for a cannabis product:

    6. providing for any other related matters contemplated by this Act, neces- sary for its administration, or necessary for giving it full effect.

  2. Regulations under subsection (1)(a) or (e) may (without limitation) do all or any of the following:

    1. require a cannabis product, or the package for a cannabis , to be a pre- scribed size and shape:

    2. prohibit a cannabis product, or the package for a cannabis product, from displaying any words or other marks unless they are permitted by sec- tion 172 or the regulations:

    3. specify types of words or other marks that are permitted to be displayed on a cannabis product or the package for a cannabis product (for example, bar codes or marks used to record processing information or to identify legitimate products or packages):

    4. specify requirements for the display of the permitted words or marks, including the circumstances and manner in which the words or marks are to be displayed (for example, the typeface or font, size, colour, and pos- ition of the words or marks):

    5. prohibit any type of feature from a cannabis product or the package for a cannabis product (for example, any feature designed to promote the



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      Cannabis Legalisation and Control Bill Part 9 cl 224

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      product by changing the appearance of the product or package after retail sale or by it making a noise or emitting a smell).

  3. Regulations under subsection (1)(b)

    1. may prescribe the number or weight of cannabis product that must be contained in a package; but

    2. must not prescribe a quantity that does not comply with section 31(1).

  4. Regulations under subsection (1)(b) may (without limitation) prescribe—

    1. requirements or options for all parts of a product or a package (for example, all surfaces of a package must be a consistent drab brown col- our with a matt finish):

    2. separate requirements or options for different parts of a product or a package (for example, any plastic or other wrapping must be consis- tently transparent, uncoloured, and unmarked):

    3. separate requirements or options for—

      1. different types of cannabis product:

      2. the packages for different classes of cannabis product.

  5. In this section, appearance includes—

    1. anything that may affect a person’s senses; and

    2. any aspect of design, such as shape, size, colour, texture, or material.

Tracing and recall

  1. Application of section 224

    Section 224 applies to a person who—

    1. holds a licence to carry out a controlled activity; and

    2. belongs to a class of persons designated under regulations made under

      section 224 as a class of persons to whom this subpart applies.

  2. Tracing and recall

    A person to whom this section applies must, in accordance with any regula- tions made under section 225 and any notice issued under section 266,—

    1. have in place procedures for—

      1. tracing cannabis and cannabis products; and

      2. recalling cannabis and cannabis products; and

    2. conduct simulations or other tests of those procedures; and

    3. implement those procedures to trace and recall cannabis and cannabis products.


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  3. Regulations and notices relating to tracing and recall of cannabis and cannabis products

    1. The Governor-General may, by Order in Council made on the recommendation of the Minister, make regulations for all or any of the following purposes:

      1. designating a person who holds, or a class of persons who hold, a licence to carry out a controlled activity as a person, or class of persons, to whom this subpart applies:

      2. setting requirements that apply to that person in relation to—

        1. the content of procedures referred to in section 224; and

        2. the conducting of simulations and other tests of those procedures; and

        3. the implementation of those procedures to trace cannabis and can- nabis products and recall cannabis and cannabis products:

      3. specifying matters in relation to tracing and recall that must be included (if applicable) in a cannabis control plan or a national programme.

    2. Before recommending the making of regulations under this section, the Minis- ter must be satisfied that there has been appropriate consultation on the regula- tions.

    3. The Authority may, by notice under section 266, supplement regulations made under this section.



  4. Packages

    Part 10 Standards for packaging

    The package in which a cannabis product is packaged must—

    1. meet the requirements of a child-resistant package under domestic legis- lation; and

    2. not contain more than 14 grams of dried cannabis (or its equivalent); and

    3. meet any other requirements set out in an enactment (for example, requiring the package to be opaque or translucent, be able to prevent contamination of its contents, be able to keep its contents dry, or have a security feature that provides reasonable assurance to consumers that it has not been opened prior to receipt).

  5. Cannabis plant: not budding or flowering

A cannabis plant must not be budding or flowering at the time of packaging.



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  1. Cannabis plant: container limit

    The container in which a cannabis plant is packaged must not contain more than 2 cannabis plants.

  2. Cannabis seeds: immediate container

    The immediate container in which cannabis seeds are packaged must—

    1. keep the cannabis seeds dry; and

    2. not contain more than 14 grams of dried cannabis (or its equivalent).

  3. Cannabis product labels

    The following information must be included on the label that is applied to any container in which a cannabis product is packaged:

    1. the name of a prescribed holder of a licence; and

    2. the class of cannabis to which the cannabis product that is in the con- tainer belongs; and

    3. in respect of the cannabis product,—

      1. the brand name; and

      2. the recommended storage conditions; and

      3. the packaging date; and

      4. except in the case of a cannabis plant or cannabis seeds, either—

        1. the expiry date; or

        2. a statement that no expiry date has been determined; and

      5. a statement, in the prescribed manner or form, of what proportion of the daily purchase limit specified in section 31(1) the product represents; and

      6. a statement, in the prescribed manner or form, of how much THC and CBD the product contains; and

      7. any other information that is prescribed by regulations or rules made under this Act; and

    4. warnings, including health warnings, prescribed by regulations or rules made under this Act (see Schedule 5); and

    5. the prescribed standardised cannabis symbol.

  4. Cannabis plants

    In the case of a cannabis plant, the number of cannabis plants in the container must be included on the label that is applied to any container in which the can- nabis plants are packaged.



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  5. Cannabis seeds

    In the case of cannabis seeds, the number of seeds in the container must be included on the label that is applied to any container in which the cannabis seeds are packaged.


    Part 11 Enforcement

    Subpart 1—Enforcement powers in relation to Part 3

  6. Application

    The powers given by the provisions of this subpart apply for the purposes of enforcing Part 3.

  7. Warrantless power to search persons for cannabis and cannabis products if specified offence suspected

    1. An enforcement officer may search a person without a warrant if the enforce- ment officer has reasonable grounds to suspect that the person—

      1. has committed or is committing an offence against section 38 or 39; and

      2. has evidential material that relates to—

        1. an offence against section 38 or 39; or

        2. a suspected offence against section 38 or 39 where evidence will be destroyed, concealed, altered, or damaged if the search is not carried out immediately.

    2. An enforcement officer who exercises a search power under subsection (1) must, as soon as practicable after the exercise of the power, provide a written report on the exercise of that power to a person in the enforcement officer’s organisation who is designated to receive those reports.

    3. A report under subsection (2) must—

      1. contain a short summary of the circumstances surrounding the exercise of the power and the reasons why it was exercised:

      2. state whether any evidential material was seized or otherwise obtained as a result of the exercise of the power:

      3. state whether criminal proceedings have been brought or are under con- sideration as a result of the exercise of the power.

  8. Power of inspection to check whether cannabis is grown for personal use in contravention of Act in cases where offence is suspected

  1. Subject to subsections (2) and (3), an enforcement officer may, at any reasonable time or times, enter and inspect any place if the officer has reason-



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    able grounds to suspect that cannabis is being grown in that place for personal use in contravention of this Act.

  2. An enforcement officer must not enter and inspect a dwellinghouse, a marae, or a building associated with a marae, under subsection (1) except with—

    1. the consent of an occupier; or

    2. a warrant issued under section 238.

  3. If a warrant under section 238 has been issued to an enforcement officer sub- ject to conditions, the enforcement officer—

    1. must not enter the dwellinghouse, marae, or building associated with the marae specified in the warrant otherwise than in accordance with the conditions; and

    2. must in all other respects comply with the conditions.

  4. The provisions of subparts 1, 3, 4, 5, 6, 7, 8, and 9 of Part 4 of the Search and Surveillance Act 2012 apply.

  1. Cannabis, cannabis products, and cannabis containers may be seized in course of search

    1. If any enforcement officer is searching any person, place, vehicle, or thing in relation to a suspected offence under Part 3, the enforcement officer may seize any cannabis, cannabis products, or containers appearing to contain cannabis or cannabis products that the officer finds in the course of their search and has reasonable grounds to believe are being kept in contravention of this Act.

    2. This section does not limit the powers of an enforcement officer under Part 4 of the Search and Surveillance Act 2012.

  2. Power to search container or pockets of persons

    1. An enforcement officer may, in the circumstances set out in subsection (2), search a container (for example, a bag, case, package, or parcel) in the posses- sion of a person or the pockets of a person for the purposes of ascertaining whether cannabis or a cannabis product is present, and, if so, seizing it.

    2. The circumstances are that the enforcement officer has reasonable grounds to suspect that the person has committed or is committing an offence against—

      1. section 29 (which sets a possession limit for a person aged 20 years or older):

      2. section 32 (which makes it unlawful for a person aged 19 years or younger to possess cannabis):

      3. section 35 (which relates to the supply of cannabis to a person aged 19 years or younger):

      4. section 36 (which restricts the amount that may be supplied to a person aged 20 years or older):


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    (e) section 37 (which makes the consumption of cannabis in public places unlawful).

  3. Warrant to search dwellinghouse, marae, etc

    1. An issuing officer (within the meaning of section 3 of the Search and Surveil- lance Act 2012) may, on an application made in the manner provided by sub- part 3 of Part 4 of that Act by an enforcement officer, issue a warrant author- ising every enforcement officer to enter and search the dwellinghouse, marae, or building associated with a marae specified in the application.

    2. Such a warrant may be issued only if the issuing officer is satisfied that there are reasonable grounds to believe that an offence specified in Part 3 punisha- ble by imprisonment is being or has been committed on or in the place (being a dwellinghouse, marae, or building associated with a marae) specified in the application.

    3. Such a warrant—

      1. authorises every inspector and authorised person to enter and search the place concerned on 1 occasion within 14 days of the issue of the war- rant; and

      2. may be unconditional or subject to conditions.

    4. The provisions of subparts 1, 3, 7, 9, and 10 of Part 4 of the Search and Sur- veillance Act 2012 apply.

  4. Requirement to give identifying information

    1. If an enforcement officer has reasonable grounds to suspect that a person has committed or is committing an offence against Part 3, the officer may require the person to provide the officer with—

      1. the person’s name, address, and date of birth; and

      2. other information specified by the officer (whether or not requested for the purpose of verifying the information referred to in paragraph (a)).

    2. If a person fails to comply with a requirement under subsection (1) or the enforcement officer has reasonable grounds to suspect that the information sup- plied is false or misleading, the enforcement officer may arrest the person with- out warrant.

  5. Destruction of cannabis or cannabis products

    If cannabis or cannabis products are seized by an enforcement officer, they may be destroyed by any enforcement officer if—

    1. the cannabis or cannabis product is forfeited to the Crown under any provision of this Act; and

    2. there is no requirement to keep the cannabis or cannabis product for evi- dential purposes in any proceedings.


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Subpart 2—Powers of enforcement officers in relation to this Act (other than Part 3)

Powers of enforcement officers


  1. Application

    The powers given by this subpart apply for the purposes of enforcing the provi- sions of this Act (other than Part 3).

  2. Powers of entry and inspection

    1. Subject to section 244, this section applies to a place if—

      1. this Act imposes duties, restrictions, or prohibitions in respect of places of a kind to which it belongs; or

      2. an activity in respect of which this Act imposes duties, restrictions, or prohibitions is carried out in it regularly or from time to time.

    2. An enforcement officer may at any reasonable time enter a place if—

      1. they believe on reasonable grounds that it is a place to which this section applies; and

      2. it is not a dwellinghouse or other residential accommodation, or a marae.

    3. An enforcement officer who enters a place under subsection (2) may do any or all of the following things:

      1. bring a still or video camera, a device for taking samples of air, or both, with them:

      2. inspect the place:

      3. take photographs or videos with any camera they bring with them:

      4. take samples of the air in the place with any device they bring with them for that purpose:

      5. if the enforcement officer believes on reasonable grounds that the place is a place where cannabis products are sold from time to time,—

        1. exercise the powers given by section 243:

        2. inspect any advertising or display material relating to cannabis products on display in the place, or on the outside of a building containing the place.

    4. An enforcement officer exercising powers under this section may be accom- panied by a constable.

    5. Subsection (2) does not prevent an enforcement officer from entering a dwellinghouse or other residential accommodation or a marae—

      1. under authority given by or under an enactment other than this section; or


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    (b) with the consent of an occupier.

  3. Requirement to give identifying information

    1. This section applies if an enforcement officer at any time believes on reason- able grounds that within the previous 14 days cannabis products have been sold, or have after they were sold have been delivered, to a person younger than 20 years in or from a place where cannabis products are sold, or after they are sold (at that place or another place) are delivered, from time to time.

    2. If this section applies, the enforcement officer—

      1. may, while the person the enforcement officer believes on reasonable grounds to have sold or to have, after they are sold, delivered or arranged the delivery of the products is in the place, require the person to give the officer their name and address; and

      2. may require a person in the place who appears to be in charge of the place or any part of it to give the officer the name and address of (or, if the address is not within the person’s knowledge, the name and any other identifying information within the person’s knowledge relating to) any specified person.

    3. An enforcement officer who suspects that a person is younger than 20 years must not under subsection (2)(a) require the person to give the officer their name and address unless—

      1. there is no other person in the place concerned who appears to be in charge of it; or

      2. there is another person in the place who appears to be in charge of it but the enforcement officer suspects that that person is also younger than 20 years of age.

    4. An enforcement officer who suspects that a person is younger than 20 years of age must not under subsection (2)(b) require the person to give the officer the name and address of (or name and other identifying information relating to) any other person if the other person is in the place concerned and appears to be 20 years or older.

    5. In subsection (2)(b) a specified person is a person that the enforcement offi- cer believes on reasonable grounds to have sold, or to have after they are sold delivered or arranged the delivery of, the products other than a person in charge of the place.

  4. Search warrant

  1. An enforcement officer may apply for a search warrant in respect of any place.

  2. The enforcement officer must apply in the manner provided in subpart 3 of Part 4 of the Search and Surveillance Act 2012.

  3. An issuing officer may issue a search warrant in respect of the place if satisfied that there are reasonable grounds—


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    1. to suspect that an offence against this Act has been, is being, or will be committed; and

    2. to believe that there is evidential material in the place.

  4. The provisions of Part 4 of the Search and Surveillance Act 2012 (except sec- tions 118 and 119) apply.

  5. In this section, evidential material and issuing officer have the meanings given by section 3(1) of the Search and Surveillance Act 2012.

  1. Purposes for which powers may be used

    1. The powers given by section 242 must be used only for, and only to the extent necessary for, the following purposes:

      1. finding out whether this Act (other than Part 3) is being complied with in and in respect of the place entered:

      2. finding out the extent to which this Act (other than Part 3) is not being complied with in or in respect of the place entered:

      3. exercising the powers given by section 242.

    2. The powers given by section 243 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 person asked, the name and any other identify- ing information within the person’s knowledge relating to) a specified person.

    3. This section does not prevent an enforcement officer from using in proceedings for an offence against this Act evidence obtained during the lawful exercise of any of the powers given by section 242 or 243.

    4. In subsection (2), a specified person is a person who the enforcement officer concerned believes to have sold, or to have after selling them delivered or arranged the delivery of, cannabis products to a person younger than 20 years in or from a place where cannabis products are sold, or having been sold (at that place or another place) are delivered.

    Subpart 3—Miscellaneous

    Enforcement officers

  2. Duties of enforcement officers

    1. An enforcement officer exercising powers under section 242 in respect of a place,—

      1. if a person in charge of the place is present on initial entry, must identify themselves to the person in charge as an enforcement officer; and

      2. if asked by a person in charge to do so, must produce to the person evi- dence of identity, their instrument of appointment as an enforcement officer, or both.


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    1. An enforcement officer exercising powers under section 243 in respect of a person—

      1. must identify themselves to the person as an enforcement officer; and

      2. if asked by the person to do so, must produce to the person evidence of identity, their instrument of appointment as an enforcement officer, or both.

  3. Offences in respect of enforcement officers

    A person commits an offence, and is liable on conviction to imprisonment for a term not exceeding 3 months or to a fine not exceeding $2,000, if the person—

    1. intentionally obstructs, hinders, or resists an enforcement officer exercis- ing or attempting to exercise powers under section 242 or 243; or

    2. intentionally fails to comply with a requirement under section 243; or

    3. when required under section 243 to give information, gives informa- tion the person knows to be false or misleading.

  4. Responsibility for enforcement: limitation period for commencing proceedings

    1. It is the duty of the head of the Authority to enforce this Part.

    2. Every prosecution for an offence against this Part must be commenced by the head of the Authority or a person authorised by the head of the Authority.

    3. Despite anything to the contrary in section 25 of the Criminal Procedure Act 2011, the limitation period in respect of an offence against this Part ends on the date that is 12 months after the date on which the offence was committed.

    Forfeiture


  5. Forfeiture generally

  1. Every person convicted of an offence against this Act must, in addition to any penalty imposed under this Act, forfeit to the Crown all articles, if any, in respect of which the offence was committed and in the possession of the per- son.

  2. Articles forfeited under subsection (1) must be sold, destroyed, or otherwise disposed of as the Minister directs.

  3. Subsection (4) applies if, on the conviction of any person for an offence against this Act, the Judge is satisfied that money found in the possession of that person—

    1. was received by that person in the course of or consequent upon the commission of that offence; or

    2. was in the possession of that person for the purpose of facilitating the commission of the offence.


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  4. The Judge may, in addition to any other penalty imposed under this Act, order that that money be forfeited to the Crown.

  5. To avoid doubt, this section does not apply in respect of an infringement offence.

  1. Forfeiture of motor vehicles, ships, or aircraft, etc

    1. This section applies if, on the conviction of any person for an offence against this Act, the court is satisfied that any motor vehicle, aircraft, or ship or boat or other vessel owned by the convicted person (whether solely or as joint tenant or tenant in common with any other person or persons) or in which the person has any interest (whether under a hire purchase agreement, leasing agreement, or otherwise) at the time of the person’s conviction was used by the convicted person in the commission of that offence (whether or not the person was the driver or person in charge).

    2. If this section applies, the court must, unless in the circumstances of the case the court considers that it would be unjust to do so, order, in addition to any other penalty imposed under this Act, that the motor vehicle, aircraft, or ship or boat or other vessel be forfeited to the Crown.

  2. Machinery provisions

    1. If the court is considering whether to make an order for forfeiture under sec- tion 250, sections 128(5), 130, and 131 of the Sentencing Act 2002 apply to the extent that they are applicable and subject to any necessary modifications.

    2. If an order for forfeiture is made under section 250, the following provisions of the Sentencing Act 2002 apply to the extent that they are applicable and sub- ject to any necessary modifications and the exception in paragraph (b):

      1. sections 132 to 136:

      2. section 137, except that section 137(3)(c) and (g) does not apply and, instead, any proceeds of sale remaining after payment in accordance with section 137(3)(a), (b), and (d) to (fb) must be paid into a Crown Bank Account:

      3. sections 138, 138A, and 140:

      4. section 140A (including section 140A(4), which applies despite section 137(3)(c) not otherwise being applicable):

      5. sections 141A and 142.


    Acquittals

  3. Effect of acquittal

    1. If any person who is charged with an offence (other than an infringement offence) is acquitted or the charge is withdrawn, any cannabis or cannabis product seized in relation to the offence—


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      1. may be collected by or on behalf of the defendant within 28 days of the date of acquittal or withdrawal (as the case may be); or

      2. if not collected within that time, may be disposed of in any manner that the agency in which the relevant enforcement officer is employed or engaged directs.

    2. In subsection (1), acquittal includes the dismissal of any charge.

    Presumptions

  4. Presumptions that enforcement officer may rely on

    1. For the purposes of this Part, an enforcement officer may treat any substance as cannabis if the enforcement officer has reasonable grounds to believe or sus- pect that it is cannabis.

    2. For the purposes of subsection (1), an enforcement officer has reasonable grounds to believe or to suspect that a substance is cannabis if—

      1. the substance or the container in which the substance is found is labelled as cannabis; or

      2. the substance or the container is not labelled as cannabis, but the sub- stance appears to be cannabis, by reason of its appearance or smell; or

      3. a person has made an admission to the enforcement officer that the sub- stance is cannabis.

  5. Presumption in legal proceedings

    In any proceedings for an offence against this Act, it is not necessary for the prosecution to prove that the substance concerned contains cannabis unless at least 20 days before the part of the hearing at which the defendant is at risk of conviction, the defendant puts the question in issue by written notice to that effect served on the prosecution.



  6. Excise duties

    Part 12 Duties, levies, and fees

    Excise duties

    The excise duties in respect of cannabis are to be levied under sections 11 and

    11A of the Customs and Excise Act 2018.

    Cost recovery

  7. Regulations relating to fees, charges, and costs

  1. The Governor-General may, by Order in Council, make regulations for the fol- lowing purposes:


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    1. requiring licence holders and licence applicants to pay fees and charges to the Authority in respect of—

      1. the Authority performing or exercising a function, power, or duty under this Act or any other enactment:

      2. an application or a request to the Authority to perform or exercise a function, power, or duty under this Act or any other enactment:

    2. prescribing the amounts of the fees and charges or the manner in which the fees and charges are calculated:

    3. authorising the Authority to require payment of the costs that the Authority incurs in respect of an application or a request.

  2. The regulations may authorise the Authority to refund or waive, in whole or in part and on any prescribed conditions, payment of any fee, charge, or cost pay- able in respect of any person or class of persons.

  3. The Authority may refuse to perform or exercise a function, power, or duty until the prescribed fee, charge, or cost is paid.

  4. Any fee, charge, or cost payable to the Authority is recoverable by the Author- ity in any court of competent jurisdiction as a debt due to the Authority.

Compare: 2011 No 5 s 67


  1. Specified persons must pay levies

    1. A specified person must pay any applicable levy prescribed under this section to the Authority on behalf of the Crown.

    2. The Governor-General may, by Order in Council made on the recommendation of the Minister, prescribe annual levies that apply to specified persons or to any of their activities regulated under this Act.

    3. Levies must be prescribed on the basis that the following costs should be met fully out of the levies:

      1. a portion of the costs of the Authority in performing or exercising its functions, powers, and duties under this Act and any other enactment, where the size of the portion to be met by levies under this Act is deter- mined by the Minister; and

      2. the costs of collecting the levy money.

    4. Levies may be prescribed on the basis that any actual cost that could have been, but has not been, recovered as a levy shortfall for a year may be recov- ered (along with any financing charge) over any period of up to 5 years.

    5. In this section and section 258, specified person means—

      1. a licence holder:

      2. a person in a class specified under section 258(1)(a).

    Compare: 2011 No 5 s 68(1)–(5)



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  2. Particulars of regulations made under section 257

    1. Regulations made under section 257 may—

      1. specify the class or classes of specified persons that are required to pay a levy:

      2. specify the amount of levies, or method of calculating or ascertaining the amount of levies:

      3. include in levies, or provide for the inclusion in levies of, any shortfall in recovering the actual costs:

      4. refund, or provide for refunds of, any over-recovery of the actual costs:

      5. provide for the payment and collection of levies:

      6. provide different levies for different classes of specified persons:

      7. specify the financial year or part financial year to which a levy applies, and apply that levy to that financial year or part financial year and each subsequent financial year until the levy is revoked or replaced:

      8. include, for the first financial year to which a levy applies, the cost (which may be specified amount or an amount determined by a specified method) relating to—

        1. establishing the Authority:

        2. the Authority performing or exercising its functions, duties, and powers under this Act or any other enactment:

      9. require payment of a levy for a financial year:

      10. provide for waivers or refunds of the whole or any part of a levy for any case or class of cases.

    2. If a licence holder undertakes more than 1 controlled activity for which differ- ent levies have been prescribed, the licence holder must pay each levy (unless the regulations provide otherwise).

    3. A levy for a financial year that starts after the Authority begins to carry out any additional function under any enactment may recover the costs of performing the function.

    4. For the purposes of subsections (1)(i) and (3), a levy for a financial year may be specified in regulations that are made or come into force after, but before the end, of that financial year.

    Compare: 2011 No 5 s 68(6)–(8)


  3. Unpaid levies are debts due to Authority

  1. The amount of any unpaid levy is recoverable in any court of competent juris- diction as a debt due to the Authority, or to any other person prescribed for the purposes of this subsection, on behalf of the Crown.



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  2. The Authority, or any other person prescribed for the purposes of this subsec- tion, must ensure that—

    1. each levy payment is paid into a Crown Bank Account and is separately accounted for; or

    2. by the 20th day of the month after the month in which the Authority or other person receives a levy payment, the levy payment is paid into a Crown Bank Account.

Compare: 2011 No 5 s 68(9)–(10)


Levy regulations for funding harm reduction strategy

  1. Levy regulations for funding harm reduction strategy

    1. The Governor-General may, by Order in Council made on the recommendation of the Minister, make regulations that impose annual levies on cannabis (other than seeds or growing stock), payable to the Authority, on license holders or any class of license holders for the purpose of funding (in whole or in part) cannabis harm reduction activities specified in the harm reduction strategy.

    2. Before making a recommendation, the Minister must be satisfied that—

      1. persons likely to be affected by the payment or collection of a proposed levy have been consulted; and

      2. persons opposing the proposed levy have had a reasonable opportunity to put their views to the Minister; and

      3. the Minister has had regard to all views put to the Minister about the proposed levy; and

      4. the Minister has taken into account any applicable excise duty and GST; and

      5. imposing the proposed levy is the most appropriate means of funding the harm reduction activities specified in the harm reduction strategy, having regard to the extent to which the levy—

        1. supports delivery of the harm reduction strategy over time in a manner that is sustainable financially, is based on evidence regarding its effectiveness, and measures its results to improve its efficacy; and

        2. shares the costs associated with cannabis use and its regulation in an equitable and non-regressive manner among those who buy, sell, and produce cannabis; and

        3. is capable of being adapted to—

          1. changes in the Authority’s knowledge and understanding of the regulated cannabis market and harm from cannabis; and

          2. variations in costs and levels of demand for the harm reduc- tion activities specified in the harm reduction strategy; and


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            1. the Authority has in place adequate systems of accounting to persons who are responsible for paying the levy; and

            2. all other relevant matters known to the Minister have been properly con- sidered.

    3. The order is a legislative instrument and a disallowable instrument for the pur- poses of the Legislation Act 2012 and must be presented to the House of Rep- resentatives under section 41 of that Act.

    4. In this section,—

    annual, in relation to the imposition of levies, means levies to be paid each financial year

    cannabis has the same meaning as in clause 19(ba) in Schedule 3 of the Cus- toms and Excise Act 2018

  2. Levies for cannabis-related purposes

    1. Levies may be imposed for the purpose of enabling the Authority to recover costs it incurs—

      1. in addressing cannabis-related harm; and

      2. in its other cannabis-related activities.

    2. Schedules 9 and 10 apply for the purposes of this section.

  3. Levy regulations are confirmable instruments

    The explanatory note of regulations made under section 260 must indicate that—

    1. the regulations are a confirmable instrument under section 47B of the Legislation Act 2012; and

    2. the regulations are revoked at a time stated in the note, unless earlier confirmed by an Act of Parliament; and

    3. the stated time is the applicable deadline under section 47C(1)(a) or (b) of the Legislation Act 2012.

      Compare: 2018 No 32 s 454(2)


  4. Excise duties in respect of cannabis

  1. The Governor-General may, by Order in Council made on the recommendation of the Minister of Justice, impose excise duties in respect of cannabis (other than seeds or growing stock) to ensure that the price of cannabis remains at a level consistent with the purpose of this Act, including (but not limited to) spe- cifying—

    1. the methods for determining whether the price of cannabis, including any levy and GST, is appropriate:



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    2. the excise duties that apply to cannabis each financial year (if any), including the rates that apply to any particular class or classes of canna- bis on the basis of weight of cannabis and weight of potency:

    3. the principles on which the method or methods are based, including ensuring that the determinations—

      1. are not unduly regressive, especially for those who are already disproportionately harmed; and

      2. are supported by evidence, including the social costs associated with cannabis consumption; and

      3. have a verifiable effect on reducing problematic cannabis con- sumption or cannabis-related harm; and

      4. support the viability of a lawful cannabis market; and

      5. reflect the risk of harm arising from over-consumption or con- sumption of cannabis of increasing potency; and

      6. are made in a manner that is easily understood:

    4. the points in the distribution process at which excise duties are to be paid, which must be consistent with the requirements for Part A goods under the Customs and Excise Act 2018:

    5. the uses to which the excise duties paid may be put, which must be con- sistent with the purposes of this Act.

  2. Despite subsection (1), if the price for cannabis drops below the level consis- tent with the purpose of this Act, owing to an oversupply of cannabis or the availability of less expensive cannabis, the Governor-General may, by Order in Council made on the recommendation of the Minister of Justice, make emer- gency regulations increasing the excise duties that apply to cannabis for a spe- cified period not exceeding 12 months.

  3. Before making a recommendation, the Minister must consult the Minister of Finance.

  4. A excise duty prescribed by regulations made under this section is exclusive of goods and services tax.

  5. In this section,—

cannabis has the meaning set out in clause 19(ba) of Schedule 3 of the Cus- toms and Excise Act 2018

GST means a tax on the supply of goods and services imposed under section 8 of the Goods and Services Tax Act 1985.



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Part 13 Other matters

Information sharing

264 Sharing of information between Authority, regulatory agencies, and overseas agencies

  1. The Authority may, subject to any enactment, provide to a law enforcement or regulatory agency or an overseas agency any information, or a copy of any document, that it—

    1. holds in relation to the performance or exercise of its functions, duties, or powers under or in relation to this Act or any other enactment; and

    2. considers may assist, as the case may be,—

      1. the law enforcement or regulatory agency in the performance or exercise of the law enforcement or regulatory agency’s functions, duties, or powers under or in relation to any enactment; or

      2. the overseas agency in the performance or exercise of the overseas agency’s functions, powers, or duties under foreign law.

  2. The Authority may use any information, or a copy of any document, provided to it by a regulatory agency under any enactment, or by an overseas agency, in the Authority’s performance or exercise of its functions, powers, or duties under or in relation to this Act.

  3. If subsection (1) or (2) applies, the Authority or regulatory agency (as the case may be) may impose conditions that it thinks fit relating to the provision of the information or document, including conditions relating to—

    1. the storage and use of, or access to, anything provided:

    2. the copying, return, or disposal of copies of any documents provided.

  4. Nothing in this section limits the Privacy Act 1993.

  5. This section applies despite anything to the contrary in any contract, deed, or document.

  6. In this section,—

    EPA means the Environmental Protection Authority established by section 7 of the Environmental Protection Authority Act 2011

    local authority has the same meaning as in section 5(1) of the Local Govern- ment Act 2002

    medical officer of health

    1. has the same meaning as in section 2(1) of the Health Act 1956; and

    2. includes the officers referred to in section 22 of that Act


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overseas agency means an organisation in another country or territory that per- forms functions that correspond with, or are similar to, any of those conferred on the Authority

regulatory agency means any of the following:

  1. Environmental Protection Agency:

  2. Fire and Emergency New Zealand:

  3. Ministry of Business, Innovation, and Employment, including any statu- tory officer who carries out work for the Ministry:

  4. Ministry of Health:

  5. Ministry for Primary Industries:

  6. Ministry of Transport:

  7. New Zealand Police:

  8. New Zealand Transport Agency:

  9. Oranga Tamariki:

  10. WorkSafe New Zealand:

  11. a designated agency under the Health and Safety at Work Act 2015:

  12. a local authority:

  13. a medical officer of health.

Regulations


265 Regulations

The Governor-General may, by Order in Council, make regulations for all or any of the following purposes:

  1. providing for matters relating to terms defined in this Act including spe- cifying offences as infringement offences for the purposes of section 45:

  2. applying provisions of the Food Act 2014 or the Agricultural Com- pounds and Veterinary Medicines Act 1997 or any regulations made under, or standards referred to in, either of those Acts to the cultivation or processing of cannabis and cannabis products for the purposes of sec- tion 7(2):

  3. prescribing procedures, requirements, and other matters for the register of licence holders kept under section 15, including matters that relate to—

    1. the operation of the register:

    2. the form of the register:

    3. the information to be contained in the register:

    4. access to the register:


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      1. search criteria for the register:

      2. circumstances in which amendments must be made to the register:

  4. prescribing forms of infringement notices for the purposes of section 43:

  5. prescribing other matters for the purposes of section 43(2):

  6. prescribing forms of reminder notices for the purposes of section 53:

  7. regulating the maximum amount of annual production permitted for the holder of a cannabis production licence with a micro-cultivation activity authorisation:

  8. prescribing a tracking and recall system for tracing retail cannabis from growing stock until the cannabis is sold to a member of the public, destroyed, or transferred to the holder of a cannabis production licence with a research activity authorisation or a person authorised by regula- tions as a final end user:

  9. prescribing record keeping requirements for licence holders, including for the purposes of—

    1. ensuring that a licence holder can reconcile its own inventory records with any tracking and recall system prescribed by regula- tions; and

    2. ensuring that records are kept of—

      1. what cannabis and cannabis products a licence holder has acquired; and

      2. what the licence holder has sold or supplied (whether to another licence holder or to a member of the general pub- lic); and

      3. what happened (including records of destruction) to any cannabis or cannabis product that the licence holder did not sell or supply to another licence holder or to a member of the general public:

    3. prescribing the form in which records must kept and collected:

  10. prescribing matters and requirements in respect of—

    1. the publications specified in section 158(1)(a) and (e) :

    2. the actions of licence holders specified in section 158(1)(g):

    3. the information and notices specified in section 159:

  11. classifying cannabis products and cannabis packages as standard risk products for the purposes of section 160(3):

  12. prescribing forms of visible delivery for the purposes of section 160(4):



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  13. prescribing packaging and labelling requirements for growing stock sold to the public by a person who holds a cannabis production licence with a nursery retail activity authorisation:

  14. prescribing requirements for things to be displayed on packaging of can- nabis products and information to be included in packages of cannabis products for the purposes of section 172:

  15. prescribing when cannabis can be transported by mail or other delivery service for enforcement, testing, or recall purposes, including—

    1. persons or classes of persons authorised to transport by mail or other delivery service:

    2. circumstances in which an authorisation applies:

    3. any conditions of an authorisation:

  16. prescribing requirements for the safe and secure destruction of cannabis and cannabis products:

  17. prescribing requirements with which food edibles must comply under

    section 207:

  18. authorising additives, nutritive substances, or novel foods that may be contained in cannabis products that are cannabis edibles:

  19. approving classes of cannabis listed in Schedule 7 for sale:

  20. prescribing the applications and matters for which fees are payable under this Act:

  21. prescribing fees and charges payable in respect of any matter under this Act or the manner in which fees and charges may be calculated:

  22. authorising the Authority to waive, reduce, or postpone the payment of a fee or charge required in connection with an application or matter, or to refund in whole or in part a fee or charge that has already been paid, if prescribed criteria are satisfied:

  23. prescribing standards and requirements for an accredited laboratory:

  24. prescribing the form of licences and authorisations used under this Act:

  25. providing for any other matters contemplated by this Act, necessary for its administration, or necessary for giving it full effect.

  1. Notices

    1. The head of the Authority may issue notices that—

      1. set requirements or specify matters that are permitted by this Act; or

      2. are permitted by a provision of this Act to supplement regulations made under this Act.

    2. The head of the Authority must not issue a notice under subsection (1)(b) unless satisfied that the notice—


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      1. sets out matters of detail to elaborate on matters provided for in the regu­ lations; or

      2. sets out procedures, methodologies, fom1s, or other matters of an admin­ istrative nature relating to matters provided for in the regulations; or

      3. sets out how requirements imposed by the regulations may or must be met; or

      4. othe1wise supplements matters of general principle set out in the regula­ tions.

    3. If a notice issued under this section is inconsistent with the regulations, the regulations prevail to the extent of the inconsistency.

    Review of Act and related matters


  2. Review of Act

    1. The Minister must-

      1. initiate a review of the operation of this Act when it has been fully in force for 5 years; and

      2. present a repo1t on the review, including recommendations for amend­ ments to this Act (if any), to the House of Representatives as soon as practicable after the review is completed.

    2. The Minister must appoint an independent panel of academics, scientists, and researchers, including iwi and Maori representation, with appropriate expe1tise to cany out the review.

    3. The review must draw on data and other evidence to assess the extent to which the regulato1y regime has been effective in delivering the objectives and pur­ pose of the regime, and to make recommendations on potential refo1m of the regulat01y approach , as appropr iate.


    Amendments to other enactments

  3. Amendments to Customs and Excise Act 2018

  1. This section amends the Customs and Excise Act 2018.

  2. In section 5(1), definition of manufacture, after paragraph (c), inse1t:

    (d) in relation to goods that are cannabis, means any operation or process that is involved in the packaging and labelling of the goods for sale and supply to an entity with a distribution licence

  3. In section 11(2), after "alcohol,", inse1t "c ann abis,".

  4. In sect ion 11(3), after "alcohol,", inse1t "ca nn abis, ".

  5. In section 11(4), after "alcohol,", inse1t "ca nn abis," .

  6. In section 67(4)(a), after "tobacco", inse1t " or cannabis " .


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  7. Replace section 67(4)(a)(i) with:

    1. the individual,-

      1. in the case of tobacco, is 18