(1) Where there is in force an arrangement with the Governor of a State under subsection ( 2) of section 6 of this Act, an authority of that State may exercise or perform, in relation to a person convicted under any of the applied provisions having, or having had, effect in or in relation to a Commonwealth place in that State, the same powers and functions as it would have been empowered to exercise or perform under the laws of the State if the offence had been committed in the State otherwise than in a Commonwealth place.
(2) Nothing in this section affects any power or function of the Governor - General.