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Explanatory note
This explanatory note relates to this Bill as introduced into Parliament.*
The main feature of the proposed Act is a modified licensing scheme that is
designed to provide greater control over persons who work in the security
industry or who conduct a business in the security industry. Under the
proposed Act, a person will require a licence if the person intends to work in
the security industry (eg as a security guard, bouncer or security consultant)
or to conduct a business in the security industry. A licence applicant will
need to satisfy stringent probity assessments and suitability criteria in order
to obtain a licence.
* Amended in committee--see table at end of volume.
Preliminary
Clause 1 sets out the name (also called the short title) of the proposed Act.
Clause 2 provides for the commencement of the proposed Act on a day or
days to be appointed by proclamation.
Clause 3 defines certain words and expressions used in the proposed Act.
The term Commissioner refers to the Commissioner of Police who will be
the licensing authority under the proposed Act.
Clause 4 describes the various activities that are security activities for the
purposes of the proposed Act (ie those activities for which a person will need
to be licensed). These activities include acting as a bodyguard or bouncer,
patrolling or guarding property (eg security guards), acting as a security
consultant, installing security equipment, providing security industry training
or instruction, and conducting a business that involves providing persons to
carry on security activities. A person will only need to be licensed if the
person is employed to carry on a security activity or if the person is
conducting a business.
Clause 5 describes those persons who are close associates of a licence
applicant for the purposes of the proposed Act. They include persons having
relevant financial interests in the applicant's business, and persons such as
directors or chief executives. Close associates of a licence applicant will be
subject to the same stringent probity assessment as will apply to the
applicant.
Clause 6 provides that the proposed Act will bind the Crown, but will not
apply to certain classes of persons (eg police officers and military personnel).
Part 2
Licences
Division 1
Requirement for licence
Clause 7 requires a person who carries on a security activity to be licensed
under the proposed Act.
Clause 8 provides that a licence does not authorise the licensee to exercise
functions apart from those authorised by the licence.
Explanatory note page 2
Division 2
Licence classification
Clause 9 specifies 3 classes of licence, namely master licences, class 1
licences and class 2 licences.
Clause 10 provides that a master licence authorises the licensee to conduct a
business of providing persons to work in the security industry (so long as
those persons are licensed under the proposed Act).
Clause 11 provides that class 1 licences will be classified into subclasses
1A, 1B and 1C. A class 1 licence will apply to security industry personnel
suck as security guards and bouncers.
Clause 12 provides that class 2 licences will be classified into subclasses
2A, 2B, 2C and 2D. A class 2 licence will apply to such persons as security
consultants, persons who sell, install or repair security equipment, and
security industry trainers and instructors.
Clause 13 provides that only an individual can hold a class 1 or class 2
licence.
Division 3
Licensing procedures and criteria
Clause 14 provides for the making of applications for licences.
Clause 15 specifies mandatory and discretionary grounds for refusing a
licence application (eg the applicant must be a fit and proper person, must be
over 18 and must be competent to carry on the security activity to which the
proposed licence relates. In the case of an application for a master licence,
these grounds will extend to close associates of the applicant).
Clause 16 provides mandatory grounds for refusing a licence application
because of the applicant's criminal history or corrupt behaviour (or because
of bankruptcy in the case of a master licence).
Clause 17 requires class 1 or class 2 licence applicants to complete relevant
training courses before being granted a licence.
Clause 18 requires the Commissioner to investigate and inquire into licence
applications, and enables the Commissioner to obtain an applicant's
fingerprints if the applicant's identity is in doubt.
Clause 19 provides that applications by former police officers are to be
referred to the Internal Affairs Branch of the NSW Police Service.
Explanatory note page 3
Clause 20 enables the Commissioner to obtain further information in
connection with licence applications.
Clause 21 provides for the grant of licences by the Commissioner. A licence
may be granted subject to conditions.
Clause 22 provides that licences must contain a recent photograph of the
licensee and specify certain other detail.
Clause 23 prevents the holder of a master licence from employing any
person to work in the cash-in-transit sector, or in an area that involves the
person, having access to operational information, if the person would be
refused a licence because of his or her criminal history.
Clause 24 provides that the term of a licence is 5 years and that the licence
cannot be renewed.
Clause 25 enables the Commissioner to suspend a licence.
Clause 26 enables the Commissioner to revoke a licence on certain grounds
(eg for any reason for which the licensee would be refused a licence).
Clause 27 enables the holder of a class 1 or class 2 licence to apply for a
variation of the kinds of security activity authorised by the licence.
Clause 28 provides that an applicant for a new licence will have to
demonstrate an active involvement in the security industry during the term of
the previous licence.
Division 4
Review of licensing decisions
Clause 29 confers jurisdiction on the Administrative Decisions Tribunal to
review licensing decisions of the Commissioner under the proposed Act.
Part 3
Miscellaneous offences relating to licences
Clause 30 creates an offence of contravening the conditions of a licence.
Clause 31 requires a licence to be surrendered if it is suspended or revoked.
Clause 32 contains offences in relation to advertising.
Clause 33 prohibits the making of misrepresentations in connection with
agreement5 and the making of false statements in connection with licence
applications.
Clause 34 prohibits a licensee from suggesting that the licence authorises
the licensee to do things other than those authorised by the licence.
Explanatory note page 4
Clause 35 requires licensees to produce their licence when requested to do
so by a police officer or by persons having dealings with the licensee
concerned.
Clause 36 requires the holder of a class 1 or class 2 licence to wear their
photo-licence when on duty.
Clause 37 prohibits a licensee from selling the licence or permitting another
person to use it.
Clause 38 prohibits a licensee from delegating the performance of any
security activity to a person who does not hold a licence.
Clause 39 prohibits the holder of a master licence from employing
unlicensed persons.
Part 4
Miscellaneous provisions
Clause 40 enables a court to order a licensee to surrender the licence to the
court if the licensee is convicted of an offence by the court.
Clause 41 prevents an unlicensed person from charging another person a fee
for any security work.
Clause 42 provides for the issue of search warrants in connection with
offences under the proposed Act.
Clause 43 enables the Commissioner to delegate functions under the
proposed Act to police officers and other authorised persons.
Clause 44 makes directors of corporations liable for offences under the
proposed Act that are committed by corporations.
Clause 45 provides that proceedings for offences under the proposed Act
are to be dealt with summarily before a Local Court.
Clause 46 provides for the service of notices under the proposed Act.
Clause 47 provides for certificate evidence in relation to certain matters
under the proposed Act.
Clause 48 empowers the making of regulations for the purposes of the
proposed Act.
Clause 49 gives effect to the amendment to the Administrative Decisions
Tribunal Act I997 set out in Schedule 1 to the proposed Act.
Explanatory note page 5
Clause 50 repeals the Security (Protection) Industry Act 1985 and the
regulations under that Act.
Clause 51 gives effect to the Schedule of savings and transitional
provisions.
Clause 52 provides for a review of the proposed Act after 5 years.
Schedules
Schedule 1 amends the Administrative Decisions Tribunal Act 1997 to
provide that the Administrative Decisions Tribunal is to be constituted by a
judicial member for the purposes of determining applications made under the
proposed Act to the Tribunal.
Schedule 2 contains savings and transitional provisions, including a power to
make regulations of a savings or transitional nature, consequent on the
enactment of the proposed Act. In particular, the Schedule provides that
existing licences under the repealed Act will be continued under the proposed
Act until they expire (the term of existing licences is 1 year).
Explanatory note page 6