Legislative Council Fifty-Third Parliament, Second Session (53-2) 53 2 Parliament of South Australia Legislative Council published Bills Tattooing Industry Control Bill Tattooing Industry Control Bill Tattooing Industry Control Bill Second Reading Second Reading The Hon. G.E. GAGO Legislative Council Minister for Employment, Higher Education and Skills, Minister for Science and Information Economy, Minister for the Status of Women, Minister for Business Services and Consumers The Hon. G.E. GAGO (Minister for Employment, Higher Education and Skills, Minister for Science and Information Economy, Minister for the Status of Women, Minister for Business Services and Consumers) (17:26): I move: That this bill be now read a second time. I seek leave to have the second reading explanation inserted in Hansard without my reading it. Leave granted. As part of its continued commitment to tackling organised crime in South Australia, the Government is introducing the Tattooing Industry Control Bill 2015. The Bill fulfils the Government's election commitment to ban organised crime gangs and their associates from owning or controlling tattoo parlours and pawnshops and using them as a front for illegal activities, including drug trafficking, weapons trading, and money laundering. Legitimate businesses in these industries are threatened on a regular basis by acts of violence, arson, and other property damage. Customers of businesses owned by organised crime gangs are exposed to risks to their safety and well-being. The conduct of the business of a tattoo parlour is currently unregulated in this State. However, second-hand dealers and pawnbrokers are regulated by the Second-hand Dealers and Pawnbrokers Act. The Act regulates the conduct of the business of second-hand dealers through a negative licensing scheme. It is an offence for a person to carry on a business as a second-hand dealer if the person has been given a disqualification notice by the Commissioner of Police. A second-hand dealer is also subject to other requirements under the Act. For example, dealers must give written notice to the Commissioner of Police at least one month before commencing a business. A second-hand dealer is also required to keep records in relation to each of the second-hand goods bought or received in the course of, or for the purposes of, the dealer's business and must ensure that the goods are labelled appropriately. The Bill before the House introduces a negative licensing scheme for the tattooing industry and makes consequential amendments to the Second-hand dealers and Pawnbrokers Act. The use of a negative scheme will ensure that the regulatory impact upon legitimate businesses is minimal. Under the new scheme, it will be an offence, with a maximum penalty of 4 years imprisonment for a natural person or a $250,000 fine for a body corporate, to provide tattooing services if disqualified from doing so. A person provides tattoo services if he or she (whether or not for fee or reward) tattoos another person; or carries on a business in the course of which he or she or another person tattoos a person; or is director of a body corporate that carries on a business in the course of which he or she or another person tattoos a person; or sells or supplies prescribed tattooing equipment. Disqualification can occur in one of two ways. A person will be automatically and permanently disqualified from providing tattoo services if he or she is a member of a prescribed organisation; or is a close associate of a person who is a member of a prescribed organisation or is subject to a control order under the Serious and Organised Crime (Control) Act 2008; or is disqualified from providing tattooing services (however described) under a law of the Commonwealth or another State or Territory; or is a person, or is a person of a class, prescribed by the regulations. The Commissioner of Consumer Affairs will also have the power to disqualify a person from providing tattooing services if certain criteria are satisfied. For example, if the person was, at any time within the preceding 5 years, a member of a prescribed organisation; or the person is found guilty, or has within the preceding ten years been found guilty, of a prescribed offence; or if the Commissioner reasonably believes that to allow the person to provide tattooing services, or to continue to provide tattooing services, would otherwise not be in the public interest. A disqualification notice has effect from the date specified in the notice and continues in force indefinitely; or for the period specified in the notice, or until the notice is revoked, whichever is the sooner. The Bill also gives authorised officers the power to issue directions to a person who provides tattooing services for the purpose of averting, eliminating or minimising a risk, or a perceived risk, to the safety of person to whom tattooing services are provided. Traders will also be required to provide certain information to the Commissioner of Consumer Affairs, which can be used to determine whether or not a person is providing tattooing services in contravention of the Act and gives further powers to police in relation to general drug detection and random weapon and explosive searches. The Bill will be of great assistance to South Australia Police in the fight against the devastating effects of organised crime in our community. I commend the Bill to Members. Explanation of Clauses Explanation of Clauses Part 1—Preliminary 1—Short title 2—Commencement These clauses are formal. 3—Interpretation This clause defines key terms used in the Bill. 4—Providing tattooing services This clause sets out when a person (both natural and legal) will, for the purposes of the measure, be taken to be providing tattooing services. 5—Criminal intelligence This clause regulates the disclosure of information classified by the Commissioner of Police as criminal intelligence. 6—Commissioner for Consumer Affairs to be responsible for administration of Act This clause provides that the Commissioner for Consumer Affairs is responsible for the administration of the proposed Act. This is consistent with other Acts falling within the scope of the Commissioner's functions. However, the Commissioner is subject to the direction and control of the Minister. Part 2—Regulation of providers of tattooing services 7—Automatic and permanent disqualification from providing tattooing services This clause creates in subsection (1) an offence for a person who is disqualified under the proposed section from providing tattooing services to do so. The maximum penalty for a contravention is 4 years imprisonment for natural persons, and a fine of $250,000 for bodies corporate. The disqualifications contemplated by this section are automatic and permanent. Proposed subsection (2) sets out natural persons who are so disqualified, and subsection (3) sets out the bodies corporate that are disqualified. 8—Commissioner for Consumer Affairs may disqualify person from providing tattooing services This clause empowers the Commissioner for Consumer Affairs to disqualify the persons referred to in proposed subsection (1) from providing tattooing services. This is done by notice in writing. Proposed subsection (3) is an offence committed where a disqualified person knowingly or recklessly contravenes a disqualification notice. The maximum penalty for a contravention is 4 years imprisonment for natural persons, and a fine of $250,000 for bodies corporate. The disqualifications under this proposed section are not permanent, although a disqualification notice may operate indefinitely. 9—Service of disqualification notice This clause sets out how disqualification notices under proposed section 8 are to be served. 10—Variation or revocation of disqualification notice by Commissioner for Consumer Affairs This clause sets out how the Commissioner for Consumer Affairs may vary or revoke a disqualification notice. 11—Offence to allow disqualified person to provide tattooing services This clause creates an offence for a person carrying on a business in the course of which tattooing services are provided to allow a disqualified person to provide tattooing services in the course of that business. The maximum penalty for a contravention is 4 years imprisonment for natural persons, and a fine of $250,000 for bodies corporate. However, it is a defence to such a charge for the person to prove that he or she believed on reasonable grounds that the person who provided tattooing services was not in fact disqualified. Part 3—Authorised officers may direct providers of tattooing services etc 12—Authorised officers may direct persons This clause provides that authorised officers under the measure can give directions a person who provides tattooing services for the purpose of averting, eliminating or minimising a risk, or a perceived risk, to the safety of members of the public. The clause sets out requirements in respect of such directions, and creates an offence for a person to refuse or fail to comply with the direction. The maximum penalty for a contravention is 1 year imprisonment for natural persons, and a fine of $250,000 for bodies corporate. Part 4—Information gathering and reporting 13—Providers of tattooing services etc to provide certain information to Commissioner for Consumer Affairs This clause requires a person who proposes to commence carrying on a business in the course of which tattooing services are provided to give the Commissioner for Consumer Affairs written notice in accordance with the proposed section. A similar requirement applies to a person who, on the commencement of the proposed section, is carrying on such a business, or who commences carrying on such a business after the commencement of the proposed section. A failure to comply with the requirements is an offence carrying a maximum penalty of 1 year imprisonment for natural persons, and a fine of $250,000 for bodies corporate. The clause sets out procedural and other requirements in relation to the notices required, and also creates an offence for a failure to notify the Commissioner of changes to certain information, with the same penalties. 14—Employees to provide certain information to Commissioner for Consumer Affairs This clause requires a person who commences employment involving the provision of tattooing services to advise the Commissioner for Consumer Affairs of that fact. A failure to do so is an offence carrying a maximum penalty of 1 year imprisonment. 15—Commissioner for Consumer Affairs may require information This clause provides that the Commissioner for Consumer Affairs may require a person who he or she reasonably suspects has knowledge of matters in respect of which information is reasonably required for the administration or enforcement of this Act to provide to him or her such information as may be specified in the notice. A failure to do so is an offence carrying a maximum penalty of 1 year imprisonment. 16—Record keeping This clause requires a person carrying on a business in the course of which tattooing services are provided to keep such records as may be required by the regulations, and to keep the records for a period of at least 2 years. Part 5—Appeal 17—Appeal This clause sets out appeal rights to the Administrative and Disciplinary Division of the District Court against a decision of the Commissioner for Consumer Affairs under the measure, or a direction under proposed section 12. Part 6—Enforcement and further offences 18—Authorised officers This clause sets out who are authorised officers for the purposes of the measure, and makes procedural provision regarding those officers. 19—Powers of authorised officers This clause sets out the powers, and limitations to those powers, of authorised officers under the measure. 20—Further powers of police officers—general drug detection This clause provides that a police officer may carry out general drug detection (which is defined under the Controlled Substances Act 1984) in relation to premises that he or she reasonably suspects are being used to carry on a business in the course of which tattooing services are provided. 21—Offence to possess certain items in premises where tattooing services provided This clause creates an offence for a person to possess certain prescribed items in premises used to carry on a business in the course of which tattooing services are provided. Those items include firearms, explosives and certain items regulated under the Summary Offences Act 1953. The maximum penalty for contravention is 2 years imprisonment. 22—Further powers of police officers—random weapon and explosive searches This clause provides that a police officer may carry out random searches for weapons and explosives in relation to premises that he or she reasonably suspects are being used to carry on a business in the course of which tattooing services are provided, and sets out related procedural provisions. Part 7—Miscellaneous 23—Exemptions This clause provides that the Minister may grant exemptions from this measure. 24—False or misleading information This clause creates an offence for a person to make a statement that is false or misleading in a material particular in any information provided, or record kept, under this measure. The maximum penalty for a contravention is 1 year imprisonment for natural persons, and a fine of $250,000 for bodies corporate. 25—Commissioner of Police may provide information to Commissioner for Consumer Affairs This clause authorises the Commissioner of Police to provide the Commissioner for Consumer Affairs with information relevant to the operation or enforcement of the measure. 26—Statutory declaration This clause provides that the Commissioner for Consumer Affairs may require information to be verified by statutory declaration. If that is the case, a person will not be taken to have provided the information as required unless it has been so verified. 27—Offences by bodies corporate This clause provides that each director of a body corporate is (unless he or she proves that they could not by the exercise of due diligence have prevented the commission of the offence) guilty of an offence if the body corporate is guilty of an offence. 28—Service This clause sets out how documents are to be served for the purposes of the measure. 29—Evidentiary provision This clause allows certain specified evidence to be given in proceedings by means of certificate. 30—Regulations This clause sets out the regulation making powers in respect of the measure. Schedule 1—Related amendments Part 1—Preliminary 1—Amendment provisions In this Schedule, a provision under a heading referring to the amendment of a specified Act amends the Act so specified. Part 2—Amendment of Second-hand Dealers and Pawnbrokers Act 1996 2—Amendment of section 3—Interpretation This clause amends section 3 of the principal Act to define key terms used in the Act. 3—Insertion of section 5A This clause regulates the disclosure of information classified by the Commissioner of Police as criminal intelligence 4—Amendment of section 6—Disqualification from carrying on business as second-hand dealer This clause amends section 6 of the principal Act to make disqualifications under that Act consistent with the provisions of this measure relating to the provision of tattooing services. 5—Insertion of section 6A This clause inserts new section 6A into the principal Act, to provide the Commissioner of Police a discretionary power to disqualify a person from commencing or continuing to carry on business as a second-hand dealer consistent with the equivalent provision under proposed section 8 of this measure. 6—Amendment of section 27—Regulations This clause amends section 27 of the principal Act to allow the regulations under that Act to make provisions of a savings or transitional nature. Debate adjourned on motion of Hon. S.G. Wade.