(1) This section applies if a person who is the holder of a positive notice, including a positive notice that is suspended under section 104, is convicted of an excluding offence but the court that convicts the person--
(a) imposes a penalty that does not include an imprisonment order for the offence; or
(b) does not make a disqualification order under section 122.17
(2) The chief executive must cancel the person's positive notice and substitute a negative notice unless the chief executive is satisfied it is an exceptional case in which it would not harm the best interests of people with a disability for the chief executive not to cancel the positive notice.
(3) In making a decision under subsection (2), the chief executive must make the decision as if it were a decision about an application for a prescribed notice and, for that purpose, sections 85, 86 and 8718 apply to the decision under this section.
(4) If the chief executive proposes to substitute a negative notice as mentioned in subsection (2), the chief executive must first comply with section 8819 as if--
(a) the reference in section 88(2) to deciding the application by issuing a negative notice were a reference to substituting a negative notice for a positive notice; and
(b) the reference in section 88(4) to deciding the application were a reference to substituting a negative notice for a positive notice.