After section 3A of the Prostitution Control Act 1994 insert —
(1) The Secretary may exempt a sex on premises venue from the operation of this Act if the Secretary is satisfied that—
(a) the operator has agreed in writing to operate the venue in accordance with a statement of principles and procedures for the promotion of sexual health that has been endorsed by the Secretary; and
(b) if the venue has commenced operation, the operator is operating the venue in accordance with that statement of principles and procedures.
(2) In granting an exemption, the Secretary—
(a) must issue the exemption in writing; and
(b) may specify the period for which it is to apply; and
(c) may impose any condition that the Secretary considers to be appropriate for the purposes of protecting public health.
(3) The Secretary, at any time by notice in writing to the operator of a sex on premises venue, may vary, suspend or revoke an exemption granted under subsection (1) in respect of the venue if the Secretary is satisfied that the operator has failed to comply with—
(a) the statement of principles and procedures referred to in subsection (1); or
(b) a condition imposed under subsection (2)(c).
(4) The Secretary must notify the Director, the Authority and the Chief Commissioner of Police of—
(a) any exemption granted under subsection (1); or
(b) the suspension, variation or revocation of an exemption under subsection (3).
(5) In this section—
"operator" means the owner of the sex on premises venue business;
"Secretary" means the Secretary to the Department of Health;
"sex on premises venue" means any venue where a person is required to pay an admission fee or charge to enter the venue for the purpose of engaging in sexual activities with another person who has also entered the venue on the same terms and who did not receive any form of payment or reward, whether directly or indirectly, for engaging in sexual activities.".