Part 1
Preliminary provisions
Subpart 1 Preliminary matters
Clauses 3 to 7 relate to preliminary matters. In particular, this subpart—
states that the purpose of the Bill is to regulate the availability of psychoactive substances in New Zealand (clause 3):
sets out the principles to be taken into account by a person or body performing functions or duties or exercising powers under the Bill (clause 4):
deals with the application of the Bill. It provides that the Bill applies to the importation, manufacture, sale, supply, or possession of a psychoactive substance for the primary purpose of inducing a psychoactive effect in an individual using the substance (clause 5):
provides an overview of the general scheme and effect of the Bill (clause 6):
provides that the Bill binds the Crown (clause 7).
Subpart 2 Interpretation
Clauses 8 and 9 relate to interpretation. These clauses define various terms used in the Bill and, in particular, the key terms psychoactive substance, psychoactive product, and approved product.
Clause 8 defines a psychoactive product as a finished product that is a psychoactive substance or contains 1 or more psychoactive substances. An approved product is a psychoactive product that has been approved by the Authority under the Bill.
Clause 9 defines a psychoactive substance as a substance, mixture, preparation, article, device, or thing that is capable of inducing a psychoactive effect in an individual who uses the psychoactive substance. Clause 9(c) specifically excludes controlled drugs (as specified or described in Schedule 1, 2, or 3 of the Misuse of Drugs Act 1975), precursor substances (as specified or described in Schedule 4 of that Act), medicines, herbal remedies, dietary supplements, and food from the definition. Alcohol and tobacco products are also generally excluded from the definition of psychoactive substance unless the alcohol or tobacco product contains a psychoactive substance.
In addition, clause 9(b)(ii) and (c)(ix) provide that the definition includes or excludes a substance, mixture, preparation, article, device, or thing that is capable of inducing a psychoactive effect in an individual that is declared, by the Governor-General by Order in Council made under clause 81, to be or not be a psychoactive substance for the purposes of the Bill.
Subpart 3 Key regulatory roles
Clause 10 establishes the Psychoactive Substances Regulatory Authority (the Authority). The Authority is the Director-General of Health.
Clause 11 establishes the Psychoactive Substances Expert Advisory Committee (the advisory committee). The advisory committee's main function is to evaluate psychoactive products and advise the Authority whether the products should be approved for use by individuals. Members of the advisory committee are to be appointed by the Authority after consultation with the Minister responsible for the administration of the Bill (the Minister), and between them, must have expertise in pharmacology, toxicology, neurosciences, medicine, and any other areas that the Minister considers relevant.
Part 2
Psychoactive substances and approved products
Part 2 (clauses 12 to 45) sets up a licensing regime in relation to psychoactive substances and an approval regime in relation to approved products. In particular, Part 2—
enables the Authority to grant licences in relation to the importation, manufacture, and sale of psychoactive substances and to approve psychoactive products as approved products:
contains specific provisions relating to the manufacture of psychoactive substances:
provides for appeals against decisions of the Authority.
Subpart 1 Licences to import, manufacture, and sell psychoactive substances
The Bill provides for the Authority to grant 3 types of licences in respect of psychoactive substances. These are—
a licence to import a psychoactive substance:
a licence to manufacture a psychoactive substance:
a licence to sell a psychoactive substance that is not an approved product to a person who holds a licence to manufacture a psychoactive substance.
Applications for licences
Clause 12 authorises the Authority to grant licences to import, manufacture, or sell psychoactive substances. The applicant for a licence must be a New Zealand resident and the application for a licence must be made in the form or manner approved by the Authority and be accompanied by the prescribed fee (if any).
Clause 13 provides that the Authority may refuse to process an application for a licence that does not comply with clause 12.
Clause 14 provides that the Authority may request further information from an applicant before deciding whether or not to grant a licence and that unless the further information is provided within 30 days (or any further time that the Authority may allow), the application lapses.
Granting of licence
Clause 15 sets out the grounds for granting a licence. In particular, it provides that the Authority may grant a licence if it is satisfied that the applicant is a fit and proper person to hold the licence.
Conditions of licences
Clauses 16 and 17 set out certain compulsory conditions that apply to the different types of licences and authorise the Authority to impose additional conditions on licences as the Authority thinks fit.
Clause 18 relates to the duration of licences. Licences generally remain in force for a period of 3 years unless the Authority specifies a shorter period for the licence or the licence is sooner cancelled or surrendered under the Bill.
Licences not transferable
Clause 19 prohibits a licence from being transferred by the licence holder to any other person.
Refusal of licence
Clause 20 sets out the process to be followed if the Authority proposes to refuse to grant a licence. The Authority must notify the applicant of the proposed refusal and the grounds for it. If, after considering any submissions provided by the applicant, the Authority decides to refuse to grant a licence, it must notify the applicant of the decision in writing and give the reasons for the decision.
Suspension, cancellation, and surrender of licence
Clause 21 empowers the Authority to suspend or cancel a licence and sets out the grounds for suspension and cancellation.
Clause 22 provides that a licence holder may surrender a licence at any time and must do so, within 30 days, if the licence holder ceases to undertake the activity to which the licence relates.
Offences relating to licences
Clauses 23 to 26 create offences relating to licences, including offences in relation to—
providing materially false or misleading information in respect of an application for a licence (clause 23):
importing or manufacturing a psychoactive substance without a licence or importing, manufacturing, selling, or supplying a psychoactive substance in breach of licence conditions (clauses 24 to 26).
Further provisions relating to manufacturing psychoactive substances
Clause 27 requires the Authority to issue a code of practice for the manufacture of psychoactive substances (the code).
Clause 28 provides that the Authority may conduct an audit of a manufacturing facility at which psychoactive substances are manufactured to assess whether the manufacturing facility is complying with the code and, if applicable, any conditions of a licence to manufacture. It also provides that the Authority may recognise audits of manufacturing facilities conducted by other persons.
Clause 29 provides that persons authorised by the Authority may enter manufacturing facilities for the purposes of—
Clause 30 empowers the Authority to issue a compliance notice following an audit.
Subpart 2 Approved products
Applications for approval
Clause 31 enables a New Zealand resident to apply to the Authority for approval of a psychoactive product as an approved product. The application must be made in the form or manner approved by the Authority and be accompanied by the prescribed fee (if any).
Clause 32 provides that the Authority may refuse to process an application for approval that does not comply with clause 31.
Clause 33 provides that the Authority may request further information from an applicant before deciding whether or not to approve a psychoactive product and that unless the further information is provided within 30 days (or any further time that the Authority may allow), the application lapses.
Clause 34 provides that the Authority must not disclose any confidential supporting information specified in, or given in relation to, an application for approval of a psychoactive product except to specified persons or organisations.
Granting of approval
Clause 35 sets out the grounds for approving a psychoactive product as an approved product. In particular, it provides that the Authority may grant an approval only if it is satisfied that the degree of harm that the product poses to individuals using the product is no more than a low risk of harm.
Conditions of approval
Clause 36 provides that the Authority may impose conditions on the approval of a psychoactive product.
Refusal and revocation of approval
Clause 37 sets out the process to be followed if the Authority proposes to refuse to approve a psychoactive product. The Authority must notify the applicant of the proposed refusal and the grounds for it. If, after considering any submissions provided by the applicant, the Authority decides to refuse to approve a product, the Authority must notify the applicant of the decision in writing and give the reasons for the decision.
Clause 38 provides that the Authority may, at any time, by notice in the Gazette, revoke the approval of an approved product if the Authority considers, on reasonable grounds, that the product can no longer be regarded as posing no more than a low risk of harm to individuals using the product.
Offences relating to approvals
Clauses 39 and 40 create offences in relation to approvals, including offences in relation to—
providing materially false or misleading information in respect of an application for approval of a product, or failing, without reasonable excuse, to provide relevant information in respect of the application:
breaching conditions of approval.
Register of approved products
Clause 41 requires the Authority to maintain a register of approved products and publish the register on an Internet site maintained by, or on behalf of, the Authority. A key purpose of the register is to enable members of the public to obtain information about approved products and, in particular, confirm whether a psychoactive product is an approved product.
Subpart 3 Appeals against Authority
Clause 42 establishes the Psychoactive Substances Appeals Committee (the appeals committee) to determine appeals against decisions of the Authority.
Clauses 43 to 45—
set out the types of decision that can be appealed to the appeals committee:
specify procedural matters relating to appeals:
provide that the appeals committee may refer appeals back to the Authority for reconsideration:
limit appeals against determinations of the appeals committee to the High Court only on questions of law.
Part 3
Control of approved products and other matters
Part 3 (clauses 46 to 91) contains provisions relating to the control of approved products and other matters. In particular, it largely carries forward existing provisions in Part 3 of the Misuse of Drugs Amendment Act 2005 that control the sale and supply of restricted substances and that relate to the enforcement of those controls.
Subpart 1 Control of approved products
Age restrictions
Clause 46 provides that it is an offence for a person under the age of 18 years to buy an approved product.
Clauses 47 and 48 impose age restrictions on the sale and supply of approved products to persons under the age of 18 years. In particular, the Bill provides that it an offence—
Clauses 47(3) and 48(3) provide defences to a charge of selling or supplying an approved product to a person under the age of 18 years.
Clause 47(3) provides that is it a defence to a charge of selling an approved product to a person under the age of 18 years if the defendant proves that he or she—
Clause 48(3) provides that it is defence to a charge of supplying an approved product to a person under the age of 18 years if the defendant proves that he or she had reasonable grounds to believe that the person to whom the approved product was supplied was aged 18 years or over.
Clause 49 provides that it is an offence for a person to employ a person aged under the age of 18 years to sell approved products on behalf of the person (whether at a place where approved products are sold or by Internet sale).
Other restrictions, prohibitions, and requirements relating to approved products
Clauses 50 to 60 impose restrictions, prohibitions, and requirements on approved products, including restrictions, prohibitions, and requirements relating to—
places of sale:
Internet sale:
free-of-charge distribution:
advertising, labelling, and packaging:
health warnings, signage, display, storage, and record-keeping.
The detail of the restrictions, prohibitions, and requirements is to be prescribed in regulations made under clause 83 and, in each case, contravening a restriction, prohibition, or requirement is an offence.
Prohibitions and restrictions on convicted persons selling approved products
Clause 61 enables a court to prohibit or restrict a person from being involved in selling approved products if the person is sentenced for an offence under the Bill and, within 2 years of being sentenced for that offence, the person is convicted of another offence under the Bill. It also enables the court to prohibit or restrict the sale of approved products at the place at which the second offence occurred and by Internet sale. Contravening the court-imposed prohibition or restriction is an offence.
Subpart 2 Offences relating to psychoactive substances that are not approved products
Clause 62(1) creates offences relating to psychoactive substances that are not approved products, including offences in relation to—
selling or supplying a psychoactive substance that is not an approved product:
offering to sell or supply a psychoactive substance that is not an approved product:
possessing a psychoactive substance that is not an approved product with the intention to sell or supply the psychoactive substance to any person.
The maximum penalty for the offences on conviction is a term of imprisonment not exceeding 2 years. Clause 62(2) clarifies that an offence is not committed under clause 62(1) if the person holds a licence to sell that applies to the psychoactive substance.
Clause 63 creates an offence relating to the personal possession of a psychoactive substance that is not an approved product. The maximum penalty for the offence on conviction is a fine not exceeding $500. Clause 63(2) clarifies that an offence is not committed under clause 63(1) if the person holds a licence to sell that applies to the psychoactive substance.
Infringement offences
Clauses 64 to 67 create infringement offences in relation to—
a person under 18 years buying an approved product (clause 46):
supplying an approved product to a person under 18 years (clause 48):
personal possession of a psychoactive substance that is not an approved product (clause 63).
The infringement fee is to be prescribed by regulations made under clause 83, but may not exceed $500.
Subpart 3 Enforcement
Enforcement officers
Clause 68 enables the Authority to appoint enforcement officers to enforce the provisions of the Bill.
Enforcement powers
Clause 69 empowers an enforcement officer or a constable who has reasonable grounds to believe there is a psychoactive substance in a place and an offence has been, is being, or will be committed against any of clauses 24, 25, or 62 (which are offences punishable by a term of imprisonment) to enter that place without a search warrant. Clause 69(2) provides that the warrantless power to enter and search may not be exercised in respect of a dwellinghouse or other residential accommodation. Clause 69(3) specifies the powers that may be exercised by an enforcement officer or a constable undertaking the warrantless entry.
Clause 70 provides for the issue of a search warrant to an enforcement officer or a constable to enter and search a place, vehicle, or other thing, if the enforcement officer or constable has reasonable grounds—
to suspect that an offence under the Bill has been committed, is being, or will be committed; and
to believe that the search will find evidential material in respect of the offence.
Clause 70(2) and (3) apply the provisions of Part 4 of the Search and Surveillance Act 2012 (with specific exclusions) to a search warrant issued to an enforcement officer or constable.
Clause 71 empowers an enforcement officer or a constable who has reasonable grounds to believe that a psychoactive substance that is not an approved product was sold to a person under the age of 18 years at a place in contravention of clause 47 to require a person who the officer or constable has reasonable grounds to believe sold the substance to that person to—
give their name and address and date of birth; or
require a person in charge of the place to give the name and address and date of birth of the other person who sold the substance to the person under the age of 18 years.
However, clause 71(3) provides that a person under the age of 17 years must not be required to give his or her name and address and date of birth unless there is no other person in the place who seems to be in charge of it, or there is another person in the place who seems to be in charge of it but that person is also under the age of 17 years.
Clause 71(4) provides that a person under the age of 17 years must not be required to give the name and address of any other person if the other person is in the place and is 17 years of age or older.
Clause 71(5) provides that the powers to require identifying information must be used only for finding out the names and addresses of people believed to have sold approved products to a person under the age of 18 years.
Clause 72 empowers a constable who has reasonable grounds to suspect that a person has committed, is committing, or is attempting to commit an offence against clause 63 (which relates to personal possession of a psychoactive substance by a person under 18 years) to require the person to provide the constable with his or her full name and address and date of birth. Clause 72(3) provides that where a person, without reasonable excuse, fails or refuses to provide the particulars and persists in doing so after being cautioned by the constable, the person may be arrested, without warrant, by the constable.
Clause 73 provides for the forfeiture to the Crown of psychoactive substances and approved products where a person is found guilty of an offence against the Bill in respect of the substance or product.
Offences relating to enforcement
Clause 74 creates offences in respect of—
obstructing an enforcement officer or a constable who is performing any functions or duties or exercising any powers under the Bill; and
failing to provide any information required by an enforcement officer or a constable under clause 71 or 72 or providing any information that the person knows, or ought to have known, is false or misleading in any material respect.
International controlled delivery of psychoactive substances
Clause 75 provides for the international controlled delivery of psychoactive substances. The provision is based on section 12D of the Misuse of Drugs Amendment Act 1978 and provides that an international controlled delivery occurs when an enforcement officer, a constable, a Customs officer, or an officer of another relevant law enforcement agency allows a psychoactive substance to be imported with a view to identifying persons involved in offences. Clause 75(2) and (3) confirm that the liability of any person charged with an offence under the Bill is not affected by the international controlled delivery and that enforcement officers, constables, Customs officers, or officers of other relevant law enforcement agencies do not themselves commit an offence by taking part in the delivery.
Subpart 4 Other powers of Authority
Clause 76 enables the Authority to recognise a person or body as a recognised authority for the purposes of the Bill.
Clause 77 provides that the Authority may recognise laboratories for the purposes of the Bill.
Clause 78 provides for the recall and destruction of approved products in certain circumstances.
Clause 79 enables the Authority to provide an export certificate in respect of an approved product.
Subpart 5 Other matters
Duty to notify adverse reactions
Clause 80 imposes a duty on licence holders and the person who applied for approval of an approved product to notify the Authority if the licence holder or person becomes aware of any adverse reaction arising from its use by individuals (whether in New Zealand or overseas).
Regulations
Clause 81 authorises regulations to be made on the recommendation of the Minister declaring any substance, mixture, preparation, article, device or thing to be or not to be a psychoactive substance for the purposes of the Bill.
Clause 82 authorises regulations to be made on the recommendation of the Minister prescribing fees and charges to enable the recovery of the direct and indirect costs of the Authority, the advisory committee, and the appeals committee.
Clause 83 authorises regulations to be made on the recommendation of the Minister relating to other matters, including regulations—
prescribing the information that must be supplied in an application for a licence or approval of a psychoactive product and matters that the Authority must take into account in deciding an application:
prescribing restrictions or prohibitions on the places or premises from which approved products may be sold:
prescribing restrictions or requirements relating to the Internet sale of approved products:
prescribing restrictions or requirements relating to the advertising, packaging, and labelling of approved products:
prescribing requirements relating to the health warnings to accompany approved products:
prescribing restrictions or requirements relating to signage to be displayed when approved products are sold:
prescribing restrictions or requirements relating to quantity or form of approved products that may be sold or supplied together at any one time and the maximum dosage or serving of an approved product that may be sold or supplied at any one time:
prescribing restrictions or requirements relating to the storage or display of approved products:
prescribing the infringement fee payable in respect of an infringement offence (which may not exceed $500) and the form of infringement notices and reminder notices for infringement offences:
prescribing procedures for the advisory committee and the appeals committee:
prescribing record-keeping requirements in relation to approved products:
providing for any other matters contemplated by the Bill, necessary for its administration, or necessary for giving it full effect.
Delegation of Authority’s functions, duties, or powers
Clause 84 enables the Authority to delegate any of its functions, duties, or powers under the Bill.
Relationship with other enactments
Clause 85 states the relationship between the Bill and the Hazardous Substances and New Organisms Act 1996.
Clause 86 provides that the Customs and Excise Act 1996 (with certain specified exceptions) applies to a psychoactive substance that is not an approved product (or part of an approved product) as if it were prohibited goods under that Act.
Review of Act
Clause 87 provides that the Ministry must conduct a review of the policy and operation of the Bill no later than 5 years after its commencement.
Transitional provision
Clause 88 and Schedule 1 contain a transitional provision permitting the sale of a psychoactive product that was being lawfully sold throughout the period of 6 months before the commencement of the Bill. The psychoactive product may continue to be sold after the commencement of the Bill but only if an application is made to the Authority for approval of the product within 30 days of the commencement of the Bill.
Amendments to Search and Surveillance Act 2012
Clause 89 amends section 45 of the Search and Surveillance Act 2012 to enable enforcement officers and constables to undertake trespass surveillance and use interception devices in order to obtain evidential material in relation to offences against clauses 24, 25, or 62 of the Bill (which are offences punishable by a term of imprisonment).
Amendments to Children, Young Persons, and Their Families Act 1989
Clause 90 amends section 272 of the Children, Young Persons, and Their Families Act 1989 so that when a young person is charged with an infringement offence under this Bill, the District Court may hear and determine the information.
Consequential amendments and revocation
Clause 91 consequentially amends, repeals, and revokes other enactments as specified in Schedule 2.