Commentary on Sections and Schedules Section 3:  Exemptions from prohibitions concerning registration
33.Section 3 inserts new subsections (3), (4) and (5) into section 124 of the RTA.
34.Section 124(1) of the RTA provides a power to make regulations under which circumstances can be prescribed where the requirement to be registered to give paid driving instruction shall not apply. Section 124(2) provides that those circumstances may, in particular, include where the purpose is to enable persons to gain experience in driving instruction.
35.The new section 124(3) of the RTA, added by section 3 of the Act, provides that the circumstances which can be prescribed under section 124 can include the exercise of a discretion by the Registrar or another person. An exemption from the requirement to be registered, whether in individual cases or otherwise, could therefore be made dependent on a discretionary decision by the Registrar or another person.
36.The new section 124(4) of the RTA provides that regulations prescribing the circumstances in which the requirement to be registered to give paid driving instruction shall not apply may also provide for–
	The procedure to be followed in relation to any decision resulting from the exercise of the discretion provided for in new section 124(3) of the RTA;
	The review or revocation of such a decision;
	An appeal in respect of such a decision;
	The time when such a decision has effect; and
	The suspension of exemptions (including provisions akin to those made by or under section 128ZB).
37.The new section 124(5) of the RTA provides that any regulations prescribing the circumstances in which the requirement to be registered to give paid driving instruction shall not apply may also make provision for the payment of fees. Such regulations may, for instance, oblige the Registrar to decide applications from individual instructors for an exemption, which may cause the DSA additional administrative costs comparable to those relating to licence applications under section 129 of the RTA 1988 (as it has effect prior to amendment by section 42 and Schedule 6 of the RSA), for which a fee is currently chargeable.