Local Government Act 2002

7 Exempted organisations

• (1) The Governor-General may, by Order in Council made on the recommendation of the Minister, exempt an organisation for the purposes of section 6(4)(i).

  (2) The Minister may make a recommendation only if—

  • (a) the organisation is subject to monitoring and reporting requirements under an enactment; and

  • (b) in the Minister's opinion, the organisation's accountability under that enactment is of a similar nature and effect to that required of a council-controlled organisation under this Act.

  (3) A local authority may, after having taken account of the matters specified in subsection (5), exempt a small organisation that is not a council-controlled trading organisation, for the purposes of section 6(4)(i).

  (4) An exemption must be granted by resolution of the local authority.

  (5) The matters are—

  • (a) the nature and scope of the activities provided by the organisation; and

  • (b) the costs and benefits, if an exemption is granted, to the local authority, the council-controlled organisation, and the community.

  (6) A local authority must review an exemption it has granted—

  • (a) within 3 years after it is granted; and

  • (b) after the first review, at intervals of not less than 3 years.

  (7) A local authority may, at any time, revoke an exemption it has granted.

  Section 7(1): amended, on 28 June 2006, by section 5(1) of the Local Government Act 2002 Amendment Act 2006 (2006 No 26).

  Section 7(2): substituted, on 28 June 2006, by section 5(2) of the Local Government Act 2002 Amendment Act 2006 (2006 No 26).