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2008-2009 THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA HOUSE OF REPRESENTATIVES AVIATION TRANSPORT SECURITY AMENDMENT (2009 MEASURES NO.1) BILL 2009 EXPLANATORY MEMORANDUM (Circulated by authority of the Minister for Infrastructure, Transport, Regional Development and Local Government, The Honourable Anthony Albanese, MP) AVIATION TRANSPORT SECURITY AMENDMENT (2009 MEASURES NO.1) BILL 2009 OUTLINE The Aviation Transport Security Amendment (2009 Measures No. 1) Bill 2009 would amend the Aviation Transport Security Act 2004 (the ATSA). Measures contained under the ATSA are designed to safeguard Australia's civil operations against "acts of unlawful interference" and the proposed amendments would further strengthen the framework of the aviation security regime. There are four sets of amendments to the ATSA under Schedule 1 to the Bill. 1. Part 1 of Schedule 1 would amend the ATSA to enable the Secretary of the Department of Infrastructure, Transport, Regional Development and Local Government (the Department) to designate security controlled airports (SCAs) a particular category of airport, according to their risk profiles. It would also enable regulations to be made to prescribe different legislative requirements for each category of SCA in order to reflect the relative risk profile associated with each category of airport; 2. Part 2 of Schedule 1 would amend the ATSA to allow unannounced inspections of businesses involved in air cargo; 3. Part 3 of Schedule 1 would amend the ATSA to allow the Secretary of the Department to enter into enforceable undertakings with aviation industry participants in relation to any matter dealt with under the Act; and 4. Part 4 of Schedule 1 would amend the ATSA to expand the scope of 'compliance control directions' in Part 4 of Division 8 of the ATSA to cover operators of SCAs, screening authorities and screening officers. An aviation security inspector would be able to direct operators of SCAs, screening authorities and screening officers to take specified action in relation to the airport or screening points at the airport. FINANCIAL IMPACT STATEMENT The amendments would have no significant financial impact on Government expenditure, therefore, a Financial Impact Statement is not required. NOTES ON CLAUSES Clause 1: Short Title Clause 1 is a formal provision specifying the short title of the Act which may be cited as the Aviation Transport Security Amendment (2009 Measures No. 1) Act 2009. Clause 2: Commencement The Bill contains one schedule of amendments to the Act. This clause would specify when the various provisions of the Bill are proposed to commence. The time of the commencements of the particular provisions would be set out in a table in subclause 2(1). Item 1 of the table would provide that the preliminary provisions of the Bill (short title, commencement and effect of Schedules) would commence on Royal Assent. Item 2 of the table would provide that Part 1 of Schedule 1 (which would contain the amendment to the ATSA regarding the categorisation of SCAs) would commence on the date of Proclamation but no later than 12 months after the Act received Royal Assent. Item 3 of the table would provide that Parts 2, 3 and 4 of Schedule 1 would commence the day after the Act receives Royal Assent. Clause 3: Schedule(s) Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned. Any other item in a Schedule to this Act has effect according to its terms. 1 SCHEDULE 1 - AMENDMENTS Schedule 1 would amend the Aviation Transport Security Act 2004. Part 1 - Categories of Security Controlled Airports Item 1 - Section 27 1. Item 1would amend section 27 of the ATSA, which provides an overview of Part 3 of the ATSA. This item is a minor consequential amendment. Item 2 - At the end of section 28 Item 3 - After section 28 2. Currently the Secretary of the Department is empowered under subsection 28(2) of the ATSA to declare an airport to be a SCA. The declaration of an airport as a SCA generally places the same legislative requirements on all such airports, regardless of their size, location and type of aircraft operating from that airport. The amendments under items 2 and 3 have been developed with the purpose of allowing legislative requirements to be tailored according to the security risk profile of each SCA. It is intended that these amendments will enhance regulatory activity, whereby, airports would be better targeted when categorised in accordance with their relative risk profile. 3. Specifically, item 2 would insert new subsection 28(6) which would provide that the Secretary may, by notice published in the Gazette, assign a particular SCA a category prescribed under proposed section 28A (to be inserted by item 3). Further, item 2 would also insert subsection 28(7) which would provide that if the Secretary publishes a notice under subsection 28(6) in relation to a SCA, the Secretary must, by written notice given to the operator of the airport, specify the category assigned to the airport. 4. Item 3 would insert a new section 28A in Part 3 of the ATSA which would provide that the regulations may prescribe different categories of SCAs. The note would make it clear to the reader that the new regulation making power would effectively enable regulations to prescribe different legislative requirements for each category of SCA to reflect the relative risk profile associated with each airport. 5. It is proposed that the different categories of SCAs be prescribed under the Aviation Transport Security Regulations 2005 (the ATSR), rather than being defined under the ATSA, given the unpredictability of the aviation security environment. The regulation making power contained under proposed section 28A is also consistent with the broader framework of the ATSA as a whole, which heavily relies on extensive regulation making powers. Item 4 - Subsection 29(1) 6. This is a minor drafting amendment, and would replace the term 'section 28' under subsection 29(1) with the words 'subsection 28(2)'. 2 Item 5 - Section 126 7. Currently paragraph 126(1)(e) provides that an application may be made to the Administrative Appeals Tribunal (AAT) for a review of a decision made by the Secretary to declare that a particular airport, or part of a particular airport is a SCA under subsection 28(2). Consequential to item 2, proposed Item 5 would insert a new subsection 126(1)(ea) which would provide that an application can be made to the AAT which would enable the review of a decision made by the Secretary to assign a category to a particular SCA. Item 6 - Application 8. Item 6 is an application provision which would provide that the amendment to section 28 applies in relation to airports, or parts of airports, declared to be SCA before, on or after the commencement of this amendment. 3 Part 2 - Inspection Powers Items 7 and 8 - Section 79(3) 9. Section 79 of the ATSA details powers for aviation security inspectors, including powers to enter and inspect any area, building (other than a residence) or vehicle under the control of an Accredited Air Cargo Agent (AACA) or aviation industry participant. Currently these powers cannot be exercised outside of the boundaries of a SCA without providing reasonable notice (subsection 79(3) of the ATSA). The requirement to provide reasonable notice reduces the effectiveness of inspection activity as it is possible that businesses could quickly alter their practices for the period of the inspection. 10. Items 7 and 8 would insert new subsections 79(3) (aa) and 79(3A) which would amend the ATSA to allow aviation security inspectors to exercise the following powers at any time and without notice. 11. Proposed subsection 79(3A) would amend the ATSA and extend the powers of an aviation security inspector to enter any area, building (other than a residence) or vehicle under the control of an aviation industry participant or AACA and observe operating procedures and discuss those procedures with an AACA or aviation industry participant or employee. In entering a premise an inspector could inspect equipment or documents/records. This includes photographing or copying documents/records and operating equipment to gain access to documents/records. 4 Part 3 - Enforceable Undertakings Item 9 - Section 4 Item 10- Section 116 12. Items 9 and 10, which would amend sections 4 and 116 respectively, are minor consequential amendments to item 11, which effectively allow the Secretary of the Department to enter into enforceable undertakings with aviation industry participants. Section 4 currently provides a simplified overview of the ATSA, and section 116 provides a simplified overview of the enforcement options under the Act. Item 11 - Division 3 of Part 8 13. The current regulatory powers under the ATSA in relation to aviation industry participants are generally concentrated at the more serious end of the scale in terms of potential consequences for participants. For example, should an aviation industry participant breach their obligations under a transport security program (TSP), they face the possible sanction of the cancellation of their TSP, thus preventing them from continuing to operate. 14. The ATSA does not provide a set of middle range sanctions to address regulatory issues and contraventions of the ATSA, particularly in instances where the breaches are not serious enough to warrant preventing an AIP from continuing to operate. 15. Item 11 proposes to introduce enforceable undertakings into the ATSA as a middle-range administrative enforcement tool which would enable a more responsive regulatory approach, generate more confidence on the part of both the travelling public and industry, and encourage better industry compliance. 16. Specifically, item 11 would insert a new Division 3A to Part 8 of the ATSA. New section 123A would effectively enable the Secretary to accept written undertakings from an aviation industry participant, in relation to all matters that are dealt with under the ATSA. 17. Under proposed section 123A, the Secretary would not be able to force an aviation industry participant to enter into an enforceable undertaking, and at the same time, the Secretary would not be compelled to accept an enforceable undertaking. An aviation industry participant would be able to withdraw or vary the undertaking at any time with the written consent of the Secretary (proposed subsection 123A(3)). In addition, the Secretary would have the power, by written notice given to the participant, to cancel the undertaking (new subsection 123A(4)). 18. If a participant breaches an undertaking, proposed section 123B would enable the Secretary to enforce the undertaking on the aviation industry participant by applying to the Federal Court for an order which may include the following: . an order directing compliance with the undertaking; . an order directing a payment of an amount of financial benefit that the participant has received (whether directly or indirectly) as a result of the breach; 5 . an order directing the participant to compensate another person who has suffered loss or damage as a result of the breach; or . an order that the Court considers appropriate. 19. As indicated above, this amendment has been developed to enable the Department to deal more effectively, flexibly and in a more timely fashion with compliance issues under the ATSA, and to provide greater ability to set compliance strategies, negotiate outcomes and accept voluntary solutions, without compromising security outcomes. Item 12 - Sub section 127(2)(b) 20. Item 12 would amend subsection 127(2)(b) by inserting the term "3A" after the words "Division 3". The effect of this amendment is to limit the Secretary's ability to delegate his or her powers and functions in relation to enforceable undertakings only to SES employees of the Department. 6 Part 4 - Control Directions Item 13 - section 9 21. Item 13 would insert a new definition under section 9 of the Act for the term 'screening authority', which would mean a body corporate that is authorised or required to conduct screening by or under regulations made for the purposes of paragraph 44(2)(a). Item 14 - section 74A Item 16 - Subsection 74B (1) and 74B(2) 22. Item 14 would amend section 74A of the Act, which provides a simplified overview of Division 8 of Part 4 of the Act. This is a consequential amendment to item 15, which would expand the scope of compliance control directions. 23. Item 16 would amend subsection 74B(2) by inserting the phrase '(1A) or (1B)' after the words 'subsection (1)'. This is also a minor consequential amendment to item 15. Item 15 - After subsection 74(B)(1) Item 17 - After subsection 74B (4) Item 18 - Subsection 74C (1) (penalty) 24. Currently, there is no scope for aviation security inspectors to issue compliance control directions to airport operators or screening authorities. There have been many instances where it would have been appropriate for such directions to be issued to an airport operator or screening authority. For example, an inspector may wish to issue a compliance control direction to an airport operator or a screening authority that all passengers and their luggage on a particular flight must be screened or rescreened before the aircraft can depart from the airport to ensure compliance with the ATSA. 25. Item 15 would insert new subsections 74(1A) and 74(1B), which would enable an aviation security inspector to direct operators of SCAs, and screening authorities or a screening officer, to take specified action in relation to the airport or screening points at the airport. 26. Item 17 would insert new subsections 74B (4A) and 74B(4B), which would provide the types of direction that an inspector may make. For example, an aviation security inspector would be able to issue a compliance control direction directing an airport operator or screening authority to screen or re-screen certain passengers and their baggage, or to ensure that particular actions are taken in relation to a person or thing, in specified areas or zones of the airport. 27. Item 18 would amend section 74C(1) so that the existing penalty provision would apply to an operator of a SCA, screening authority or screening officer should they fail to comply with a compliance control direction. This offence would be punishable by 200 penalty units for an operator of a SCA or a screening authority, or 50 penalty units for a screening officer. 7