South Australia is set to have its own Small Business Commissioner now that the Small Business Commissioner Bill 2011 (SA) has passed the South Australian Parliament.
The progress of the Bill has been watched closely by the franchising industry, and by franchisors in particular.
In early August we reported on the Bill's introduction into Parliament, and the potential for a significant impact on the way franchisors conduct business in South Australia. Industry bodies had expressed concerns about the form of the Bill, and particularly about the potential for state-based regulation of the franchising sector.
However, passage of the Bill occurred only after the State Government agreed to amendments supported by the Liberals, Family First Party and Independent MPs. Importantly, we understand that the amendments provide for a mandatory period of industry consultation prior to prescribing changes to industry codes (such as the Franchising Code of Conduct) by regulation, with such regulations being subject to disallowance if the consultation process is not carried out.
The text of the finalised Bill is expected be available from the South Australian Legislation website by tomorrow morning.
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