Tobacco Products Regulation (E-Cigarette Regulation) Amendment Bill

Second Reading

The Hon. I.K. HUNTER (Minister for Sustainability, Environment and Conservation, Minister for Water and the River Murray, Minister for Climate Change) (16:55): I move:

That this bill be now read a second time.

I seek leave to have the second reading speech and the explanation of clauses inserted in Hansard without my reading it.

Leave granted.

This Bill seeks to amend the Tobacco Products Regulation Act 1997 to introduce a range of measures to regulate the sale, supply and use of e-cigarettes. The Bill prohibits:

sales of e-cigarettes to children;

retail sales of e-cigarette products without a licence;

indirect sales of e-cigarettes, such as internet sales;

e-cigarette sales from temporary outlets, sales trays and vending machines;

the use of e-cigarettes in areas that are smoke-free under the Act;

advertising, promotion, specials and pricing promotions for e-cigarettes; and

retail point of sale displays of e-cigarettes.

Electronic cigarettes, also known as e-cigarettes, are battery operated devices that vaporise a solution into a fine aerosol that is inhaled into the lungs. The latest World Health Organization report on electronic cigarettes released in August 2016 concludes that the evidence for the safety of e-cigarettes and their capacity to aid smoking cessation has not been established, and that there are possible risks from active and passive exposure to electronic cigarette vapour. There are also concerns about the risk that electronic cigarettes may serve to initiate young people in nicotine use and smoking.

South Australia does not have legislation that regulates the sale, use and promotion of e-cigarettes that do not contain nicotine and do not resemble a tobacco product. Currently these products can be legally sold or supplied to children, advertised and displayed, and used in enclosed public places.

Amendment through the passing of this Bill will regulate e-cigarettes in a similar way to tobacco products. This aligns with the recommendations in the Final Report of the Select Committee on E-cigarettes. The Bill includes those recommendations that can be implemented legally and effectively through amendments to the Tobacco Products Regulation Act 1997. This also includes the Select Committee's recommendations that prohibit the sale of e-cigarettes from temporary outlets and vending machines. In addition, the Bill strengthens the objects of the Act by including e-cigarettes and it increases the flexibility of the Act to remove restrictions on e-cigarette products if they have been approved for therapeutic use in Australia.

The Billaims to have a positive public health impact by regulating e-cigarette products and reducing the potential for harms to the South Australian community. Importantly, these measures will reduce the likelihood that children will be attracted to e-cigarettes, while still allowing access by adults who choose to purchase these products. It will also protect other members of the public from being exposed to e-cigarette vapour within legislated smoke-free areas. I commend this Bill to members.

Explanation of Clauses

Part 1—Preliminary

1—Short title

2—Commencement

3—Amendment provisions

These clauses are formal.

Part 2—Amendment of Tobacco Products Regulation Act 1997

4—Amendment of long title

This clause amends the long title of the Act to insert a reference to the regulation of the sale, advertising and use of e-cigarette products.

5—Amendment of section 3—Objects of Act

This clause amends the objects of the Act to insert references to e-cigarettes and e-cigarette products.

6—Amendment of section 4—Interpretation

This clause amends various definitions in the Act to take account of e-cigarette products. The clause also inserts definitions of e-cigarette and e-cigarette product for the purposes of the Act.

7—Amendment of section 6—Requirement for licence

The clause inserts a new paragraph providing that a person must not carry on the business of selling e-cigarette products by retail or hold themselves out as carrying on such a business unless the person holds a licence under Part 2 of the Act.

8—Amendment of section 9—Licence conditions

The clause amends provisions in section 9 to allow the conditions of a licence to include conditions in relation to e-cigarette products.

9—Amendment of Heading to Part 3

The clause amends the heading to Part 3 to include a reference to e-cigarette products.

10—Amendment of section 30—Sale of tobacco products and e-cigarette products by retail

The clause amends the offence provision in section 30(5) to include a reference to e-cigarette products.

11—Amendment of section 36—Products designed to resemble tobacco products

The clause amends the section to include a reference to e-cigarettes.

12—Amendment of section 37—Sale of products by vending machine

The clause inserts a new offence prohibiting the sale of e-cigarettes by means of a vending machine, with a maximum penalty of $5,000 and an expiation fee of $315.

13—Insertion of section 37A

This clause inserts a new section as follows:

37A—Sale of e-cigarette products from temporary outlet

Proposed subsection (1) makes it an offence to sell an e-cigarette product by retail from a temporary outlet, with a maximum penalty of $5,000 and an expiation fee of $315. Proposed subsection (2) makes it an offence for an occupier of premises to cause or permit another person to sell an e-cigarette product by retail on those premises in contravention of proposed subsection (1), with a maximum penalty of $5,000 and an expiation fee of $315. Temporary outlet is defined as a booth, stand, tent or other temporary or mobile structure or enclosure, whether or not part of that booth, stand, tent, structure or enclosure is permanent.

14—Amendment of section 38—Carrying tray etc of tobacco products or e-cigarette products for making of successive retail sales

The clause amends the offence provision in section 38(1) to insert a reference to e-cigarette products.

15—Amendment of section 38A—Sale or supply of tobacco products or e-cigarette products to children

The clause amends the offence provisions in sections 38A(1) and (5) to insert a reference to e-cigarette products, and makes other related consequential amendments.

16—Amendment of section 39—Power to require evidence of age

The clause amends section 39(1) to insert a reference to e-cigarette products.

17—Amendment of section 40—Certain advertising prohibited

The clause amends various provisions in section 40 to extend to e-cigarette products the advertising prohibitions that currently apply to tobacco products.

18—Amendment of section 41—Prohibition of certain sponsorships

The clause amends section 41 to extend to e-cigarette products the prohibition on certain sponsorships that currently apply to tobacco products.

19—Amendment of section 42—Competitions and reward schemes etc

The clause amends section 42(1) to extend to e-cigarette products the restrictions on the promotion of sales by competitions and reward schemes that currently apply in relation to tobacco products.

20—Amendment of section 43—Free samples

The clause amends section 43 to prohibit the offering of free samples of e-cigarettes.

21—Amendment of section 66—Powers of authorised officers

The clause amends section 66 to allow an authorised officer to seize and retain e-cigarette products if the officer reasonably suspects that an offence against the Act has been committed in relation to the products, or that the products may afford evidence of an offence against the Act.

22—Amendment of section 69—Powers in relation to seized products

The clause amends section 69 to allow the powers in the section in relation to seized tobacco products to apply to e-cigarette products.

23—Amendment of section 70A—Confiscation of products from children

The clause amends various provisions in section 70A to allow for the confiscation of e-cigarette products from children in the same manner as tobacco products may currently be confiscated under the provisions of the section.

24—Amendment of section 71—Exemptions

The clause amends section 71(1) to allow for the Governor to exempt by proclamation e-cigarette products or a class of e-cigarette products from the operation of the Act subject to conditions set out in the proclamation.

25—Amendment of section 85—Evidence

These amendments are consequential on the amendments to section 37.

26—Amendment of section 87—Regulations

The clause amends the regulation making provisions in section 87 to insert references to e-cigarette products consequential on other amendments in the measure.

Schedule 1—Transitional provision

1—Existing licences

The clause provides that licences in force on the commencement of the measure will be taken to authorise the retail sale of e-cigarettes and that existing licence conditions will be taken to include reference to e-cigarette products wherever tobacco products are referred to.

Debate adjourned on motion of Hon. D.W. Ridgway.