Schedule 3 Reorganisation of local authorities

s 24

Contents

1AA Overview

1 Interpretation

Part 1
Reorganisation applications

Subpart 1—Making reorganisation applications

2 Who may make reorganisation application

3 Prohibition on making certain reorganisation applications

4 Contents of reorganisation application

Subpart 2—Commission to decline or assess reorganisation application

5 Action on receipt of application

6 When Commission may decline to assess reorganisation application

7 Community support

7A Commission to seek alternative applications

7B Alternative applications

7C Commission to determine preferred option

8 Assessment: Promotion of good local government

8 Promotion of good local government

9 Commission must consider other options

10 Other things Commission may do when assessing reorganisation application

11 Procedure after preferred option determined

Part 2
Reorganisation proposals

Subpart 1—Preparation of proposals

12 Development of proposal

12A Local boards

13 Cities

14 Appropriate boundaries

15 Representation

16 Communities

17 Consultation on proposal

18 Decisions on draft proposals

19 Notification of final proposal

Subpart 2—Polls

20 Application of this subpart

21 Petition to require poll

22 Poll to be held

23 Timing of poll

24 Official result of poll

25 Fate of proposal after poll

Subpart 3—Advertising

26 Interpretation

27 Advertising in relation to polls

27A Provision of referential information

28 Authorisation of advertising

Part 2A
Transition bodies

28A Application

28B Establishment and purpose of transition body

28C Composition and membership of a transition body

28D Roles and functions of the transition body

28E Accountability arrangements for the transition body

28F Appointment of interim chief executive

28G Interim chief executive may appoint staff, enter into contracts, and call first meeting of local authority

28H Apportionment of transition costs

Part 3
Reorganisation schemes

Subpart 1—Preparation of reorganisation schemes

29 Preparation of reorganisation scheme

Subpart 2—Contents of and provisions that apply to reorganisation schemes

30 Provisions for inclusion in reorganisation schemes

31 Provisions to be included if necessary or desirable

32 Provisions to enable effective transition

Subpart 3—Implementation and effect of reorganisations

33 Application

34 Provisions that apply to reorganisation scheme unless modified or excluded

34A Bylaws

35 Effect of Order in Council giving effect to reorganisation scheme

36 Power to amend basis of certain rates

37 No compensation payable if responsibility transferred

38 Payment if trading undertaking transferred

38A Employees

38B KiwiSaver Act 2006 does not apply to transferred employee

39 Certain matters not affected by transfer of responsibilities, duties, or powers

40 Registers

41 General

42 Apportionment of assets and liabilities

43 Apportionment of fuel tax revenue

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1AA Overview

• (1) This clause—

  • (a) provides a guide to the scheme of this schedule; and

  • (b) does not affect the interpretation or application of any provision of this schedule.

  (2) Clause 1 contains definitions of terms used in this schedule.

  (3) Part 1 contains 2 subparts, as follows:

  • (a) subpart 1—

    • (i) provides that any person, body, or group may make a reorganisation application to the Commission; and

    • (ii) prohibits the making of a reorganisation application in certain circumstances; and

    • (iii) specifies what a reorganisation application must contain; and

  • (b) subpart 2—

    • (i) requires the Commission to decide whether to assess a reorganisation application; and

    • (ii) specifies the grounds on which an application may be declined; and

    • (iii) requires the Commission to be satisfied that an application has demonstrable community support; and

    • (iv) if it has, requires the Commission to give public notice inviting alternative applications; and

    • (v) then requires the Commission to identify the reasonably practicable options for local government of the affected area and select the option that best promotes good local government (the preferred option).

  (4) Part 2 contains 3 subparts, as follows:

  • (a) subpart 1—

    • (i) requires the Commission to develop the preferred option into a draft proposal; and

    • (ii) provides for consultation by the Commission on the draft proposal; and

    • (iii) then provides for the Commission to issue and notify a final proposal; and

  • (b) subpart 2 provides for petitions requiring a poll on a final proposal and for the holding of a poll if required; and

  • (c) subpart 3 places restrictions on advertising by a local authority to promote or oppose a final proposal in the period from the issue of the final proposal to when a poll is held (if required) or the close of the day for receiving a petition. This subpart contains an exception for publication of material that is factual or referential.

  (5) Part 2A provides for the establishment of transition bodies and related matters.

  (6) Part 3 contains 3 subparts, as follows:

  • (a) subpart 1 requires the Commission to prepare a reorganisation scheme if no poll is required on a final proposal or a poll has been held and has not defeated the final proposal; and

  • (b) subpart 2 specifies the matters the Commission must and may include in a reorganisation scheme; and

  • (c) subpart 3 contains provisions that apply to a reorganisation scheme unless amended or declared not to apply by the scheme.

1 Interpretation

• In this schedule, unless the context otherwise requires,—

  affected local authority, in relation to a reorganisation application, means a local authority that would be affected if the application resulted in a reorganisation scheme

  affected area, in relation to a reorganisation application, draft proposal, or final proposal, means—

  • (a) an area that would be included in the district or region of a new or different local authority if local government in relation to the area were to be reorganised in accordance with the reorganisation application, draft proposal, or final proposal:

  • (b) an area that remains in the district or region of a local authority, but the local authority's responsibilities would be changed if local government in relation to the area were to be reorganised in accordance with the reorganisation application, draft proposal, or final proposal:

  • (c) an area of the district or region of a local authority, if the Commission has declared it to be an affected area because the operational scale, scope, or capability of the local authority would be materially affected if local government in relation to the area were to be reorganised

  affected elector means—

  • (a) a person who is a residential elector (within the meaning of section 23 of the Local Electoral Act 2001), if the address in respect of which the person is registered is in an affected area:

  • (b) a person who is a ratepayer elector (within the meaning of section 24 of the Local Electoral Act 2001), if the person is qualified as a ratepayer elector in respect of a rating unit in an affected area

  applicant means the person making a reorganisation application

  implementation date means the date specified in an Order in Council made under section 25(1)(b) as the date on which the local government reorganisation described in the final proposal takes effect

  public notice, in relation to a notice of a reorganisation application, draft proposal, or final proposal given by the Commission,—

  • (a) means a notice published—

    • (i) in 1 or more newspapers circulating in the affected area; and

    • (ii) on the Internet site of the Commission; and

  • (b) includes any other notice that the Commission thinks desirable in the circumstances

  reorganisation application means an application containing proposals under clause 2 or 7B proposing local government reorganisation and dealing with 1 or more of the matters specified in section 24.

  significant community support,—

  • (a) in relation to a reorganisation application and a proposal developed under clause 12, means—

    • (i) support from a large proportion of the community, or of the leaders of the community, for reform of the current local government arrangements; and

    • (ii) substantial support within that group for the changes proposed in the reorganisation application; and

  • (b) in relation to a final proposal developed under clause 18, means substantial support from a large proportion of the community or the leaders of the community for the changes proposed in the final proposal.

Part 1
Reorganisation applications

Subpart 1—Making reorganisation applications

2 Who may make reorganisation application

• (1) A reorganisation application may be made to the Commission by any person or organisation, body, or group, including (but not limited to)—

  • (a) 1 or more affected local authorities; or

  • (b) any body or group with an interest in the governance of the area or areas that the reorganisation application relates to; or

  • (c) the Minister.

  (2) A reorganisation application must be made to the chief executive officer of the Commission.

3 Prohibition on making certain reorganisation applications

• No person may make a reorganisation application if—

  • (a) the application relates to a local authority that has been the subject of a reorganisation scheme local government reorganisation; and

  • (b) the application, if it were made, would have been made during a period (being not greater than 3 years) specified by the Commission under clause 30 18.

4 Contents of reorganisation application

• (1) A reorganisation application must include the following:

  • (a) the name and address of the person making the application; and

  • (b) if more than 1 person is making the application, the name and address of the person who is the representative of the applicants; and

  • (c) a description of the proposed changes, including (but not limited to)—

    • (i) which of the matters listed in section 24(1) is being sought; and

    • (ii) a plan or other description sufficient to identify the affected area or affected areas concerned; and

  • (ca) a full and detailed explanation of what the proposed changes are seeking to achieve and how the changes would be achieved by the approach proposed in the application; and

  • (d) a description of the potential improvements that would result from the proposed changes and how they would promote good local government as described in clause 8; and

  • (e) information that shows demonstrates that the application has significant community support and that it will promote good local government in the district of each affected territorial authority.

  (2) A reorganisation application may include—

  • (a) any information requested or recommended in any guidelines issued by the Commission; and

  • (b) any other information that the applicant considers relevant to the Commission's consideration of the application.

  (3) A reorganisation application may be accompanied by a petition of affected electors for the purposes of clause 7(2).

  (4) If a reorganisation application is accompanied by a petition, each elector who signed the petition must state, against his or her signature, the person's name and address in sufficient detail to enable the person to be identified as an elector.

Subpart 2—Commission to decline or assess reorganisation application

5 Action on receipt of application

• As soon as practicable after receiving a reorganisation application, the Commission must—

  • (a) decide whether to assess the application; and

  • (b) notify the applicant of its decision; and

  • (ba) if the Commission decides to decline to assess the application, in the notice to the applicant specify the ground or grounds in clause 6 on which the application is declined and explain why the ground or grounds apply; and

  • (c) if the Commission decides to assess the application, notify the affected local authorities of its decision.

6 When Commission may decline to assess reorganisation application

• The Commission may decline to assess a reorganisation application on 1 or more of the following grounds:

  • (a) the application is frivolous:

  • (b) the application does not contain the information required by clause 4(1):

  • (ba) the application does contain the information required by clause 4(1), but not in sufficient detail for the Commission to assess the application:

  • (bb) 1 or more of the aspects that would be essential if the application were implemented are inconsistent with this Act or any other enactment:

  • (c) a substantially similar application has been declined by the Commission and the reasons for declining that application continue to apply:

  • (c) changes substantially similar to those proposed in the application have been considered by the Commission but were not considered to constitute a reasonably practicable option, and the grounds for that decision continue to apply:

  • (d) the Commission is not or is not likely to be in a position to assess the application during the period in which the information in the application is timely and reliable:

  • (e) the application is received after the date specified under clause 7A as the deadline for the receipt of alternative applications, but before a final decision on a reorganisation of the affected area is made:

  • (f) it is not in the public interest to assess the application.

7 Assessment: significant Community support

• (1) If the Commission decides to assess a reorganisation application, the Commission must first be satisfied that the application has significant there is demonstrable community support in the district of each affected territorial authority for local government reorganisation in the affected area.

  (2) The matters the Commission may consider for the purposes of subclause (1) include (but are not limited to)—

  • (a) a petition or petitions of affected electors:

  • (b) questionnaires or surveys of ratepayers or residents:

  • (c) submissions or other correspondence about existing or proposed local government arrangements:

  • (d) meetings with community members or their representatives in which views on the existing or proposed local government arrangements are expressed.

  (2A) To avoid doubt, for the purposes of subclause (1),—

  • (a) the Commission may use information that is reasonably available and does not have to (but may) make its own inquiries and conduct its own investigations:

  • (b) the Commission does not need to determine whether the persons who support local government reorganisation are a majority of the persons in an affected area.

  (3) If the reorganisation application is accompanied by a petition,—

  • (a) the chief executive officer of the Commission must refer the application to the electoral officers of the affected local authority or local authorities to confirm the names and addresses of electors who signed the petition; and

  • (b) the electoral officers must advise the Commission of the number of qualified electors of each territorial authority district who—

    • (i) were entitled to sign the petition; and

    • (ii) have signed the petition.

  (4) If the Commission is not satisfied that a reorganisation application has significant about community support as required by subclause (1), the Commission may must—

  • (a) decline the application without completing the assessment of it; or

  • (b) require the applicant to provide further evidence of community support; or

  • (c) undertake any other investigations it considers appropriate to determine community support for the application.

7A Commission to seek alternative applications

• (1) If the Commission is satisfied about community support, as required by clause 7, the Commission must give—

  • (a) public notice; and

  • (b) notice to—

    • (i) the affected local authorities; and

    • (ii) each local authority whose district or region adjoins the district or region of an affected local authority; and

    • (iii) any other person, body, or group that the Commission considers should be notified.

  (2) A notice given under subclause (1) must—

  • (a) state that a reorganisation application has been received by the Commission; and

  • (b) describe the type of reorganisation proposed, the affected local authorities, and the extent of the affected area; and

  • (c) indicate where further information about the application can be obtained; and

  • (d) invite persons, bodies, and groups to submit, by a date specified in the notice, alternative applications in relation to the affected area; and

  • (e) indicate that any alternative applications received after the date specified under paragraph (d) may be declined.

  (3) The date specified by the Commission under subclause (2)(d) for the receipt of alternative applications must not be earlier than 20 working days after the last notice given under subclause (1).

7B Alternative applications

• (1) An alternative application must comply with clause 4 as if it were a reorganisation application.

  (2) However, an alternative application is not required to comply with clause 4(1)(e) in relation to a district of a territorial authority in which community support has been demonstrated in the reorganisation application received under clause 2.

7C Commission to determine preferred option

• (1) As soon as practicable after the deadline for the receipt of alternative applications, the Commission must, in accordance with this clause, determine its preferred option for local government of the affected area.

  (2) The Commission must first identify the reasonably practicable options for local government of the affected area.

  (3) In deciding the extent to which it identifies the reasonably practicable options, the Commission must have regard to—

  • (a) the scale and scope of the changes proposed; and

  • (b) the degree of community support for relevant applications that has been demonstrated to the Commission; and

  • (c) the potential benefits of considering other options; and

  • (d) the desirability of early certainty about local government arrangements for the affected area.

  (4) The reasonably practicable options—

  • (a) must include the existing arrangements for local government; and

  • (b) may include—

    • (i) the proposals in the application made under clause 2; or

    • (ii) the proposals in an alternative application made under clause 7B; or

    • (iii) options, other than those referred to in paragraph (a) and subparagraphs (i) and (ii), formulated by the Commission; or

    • (iv) a combination of aspects derived from 2 or more of the options referred to in paragraph (a) and subparagraphs (i) to (iii).

  (5) The Commission must be satisfied that any local authority proposed to be established or changed under a reasonably practicable option will—

  • (a) have the resources necessary to enable it to carry out effectively its responsibilities, duties, and powers; and

  • (b) have a district or region that is appropriate for the efficient performance of its role as specified in section 11; and

  • (c) contain within its district or region 1 or more communities of interest, but only if they are distinct communities of interest; and

  • (d) in the case of a regional council or unitary authority, enable catchment-based flooding and water management issues to be dealt with effectively by the regional council or unitary authority.

  (6) For the purposes of subclause (5), the Commission must have regard to—

  • (a) the area of impact of the responsibilities, duties, and powers of the local authorities concerned; and

  • (b) the area of benefit of services provided; and

  • (c) the likely effects on a local authority of the exclusion of any area from its district or region; and

  • (d) any other matters that it considers appropriate.

  (7) In deciding whether any proposed changes are reasonably practicable, the Commission may—

  • (a) request further information from applicants and affected local authorities; and

  • (b) undertake any investigations and make any inquiries that the Commission considers appropriate.

  (8) If the Commission identifies 2 or more reasonably practicable options, the Commission must determine, having regard to the criteria in clause 8, its preferred option, being the option that best promotes good local government.

8 Assessment: Promotion of good local government

• (1) If the Commission is satisfied that a reorganisation application has significant community support, the Commission must next be satisfied that the changes proposed in the application will promote good local government by—

  • (a) improving local government in the area or areas that the application relates to; and

  • (b) facilitating, in the affected local authority or local authorities,—

    • (i) efficiencies and cost savings; and

    • (ii) productivity improvements, both within the affected local authorities and for the businesses and households that interact with those local authorities; and

    • (iii) simplified planning processes within and across the district or region through, for example, the integration of statutory plans or a reduction in the number of plans to be prepared or approved by the local authority; and

  • (c) ensuring that each local authority proposed to be established or changed under the application will—

    • (i) have the resources necessary to enable it to carry out effectively its responsibilities, duties, and powers; and

    • (ii) have a district or region that is appropriate for the efficient performance of its role as specified in section 11; and

    • (iii) contain within its district or region 1 or more communities of interest, but only if they are distinct communities of interest; and

  • (d) if the reorganisation application proposes a unitary authority, enabling catchment-based flooding and water management issues to be dealt with effectively by the unitary authority.

  (2) For the purposes of subclause (1), the Commission must have regard to—

  • (a) the area of impact of the responsibilities, duties, and powers of the local authorities concerned; and

  • (b) the area of benefit of services provided; and

  • (c) the likely effects on a local authority of the exclusion of any area from its district or region; and

  • (d) any other matters that it considers appropriate.

8 Promotion of good local government

• For the purposes of clause 7C(8), the Commission must be satisfied that its preferred option—

  • (a) will best promote, in the affected area, the purpose of local government as specified in section 10; and

  • (b) will facilitate, in the affected area, improved economic performance, which may (without limitation) include—

    • (i) efficiencies and cost savings; and

    • (ii) productivity improvements, both within the local authorities and for the businesses and households that interact with those local authorities; and

    • (iii) simplified planning processes within and across the affected area through, for example, the integration of statutory plans or a reduction in the number of plans to be prepared or approved by a local authority.

9 Commission must consider other options

• In assessing a reorganisation application, the Commission must consider whether there are options for reorganisation, other than those included in the application, that might have community support and promote, more effectively, good local government.

10 Other things Commission may do when assessing reorganisation application

• (1) The Commission may assess a reorganisation application in conjunction with any other reorganisation applications, and may combine proposals from those applications.

  (2) The Commission may require a local authority affected by a reorganisation application to provide any information that would assist the Commission to carry out an assessment of the application.

  (3) In assessing a reorganisation application, the Commission may undertake inquiries and consultations in relation to the application with any persons or organisations it considers appropriate.

  (4) The Commission may suspend its assessment of a reorganisation application and return the application to the applicant for further work or information.

  (5) If the application is returned to the applicant under subclause (4),—

  • (a) the Commission must identify the aspects that require further work or information; and

  • (b) the applicant must comply with the Commission’s request before resubmitting the application.

11 Procedure after assessment preferred option determined

• (1) After completing an assessment of a reorganisation application, the Commission must decide to do 1 of the following:

  • (a) decline the application:

  • (b) proceed to develop a proposal under clause 12 that would give effect to the proposals in the application:

  • (c) proceed to develop a proposal under clause 12 that would give effect to the proposals in—

    • (i) the application as modified by the Commission; or

    • (ii) the application and 1 or more other applications considered together; or

    • (iii) an option considered under clause 9.

  (2) The Commission must notify the applicant and all affected local authorities of its decision.

  (3) If the Commission declines the application under subclause (1)(a), it must provide the applicant with reasons for its decision.

  (1) After determining the preferred option under clause 7C, the Commission must—

  • (a) give notice of its determination and the reasons for it to—

    • (i) each applicant; and

    • (ii) every affected local authority; and

  • (b) proceed under clause 12 to develop a draft reorganisation proposal to give effect to the preferred option.

  (2) However, subclause (1)(b) does not apply if the Commission's preferred option, under clause 7C, is the existing arrangements for local government.

Part 2
Reorganisation proposals

Subpart 1—Preparation of proposals

12 Development of proposal

• (1) If the Commission decides to proceed with a reorganisation application under clause 11(1)(b) or (c), the Commission must develop a draft reorganisation proposal (a proposal).

  (2) A proposal must describe, for each local authority to be included in the proposal,—

  • (a) the type of local authority; and

  • (b) the name of the district or region of the local authority; and

  • (c) the boundaries of the district or region; and

  • (d) the representation arrangements of the local authority; and

  • (e) the names and areas of interest of iwi and hapū in the district or region; and

  • (f) any communities and any community boards of the local authority; and

  • (g) any other matters the Commission considers necessary or desirable.

  (1) This clause applies to a draft reorganisation proposal developed by the Commission to give effect to its preferred option (draft proposal).

  (2) A draft proposal must describe, for each affected local authority proposed to continue in existence,—

  • (a) the type of local authority; and

  • (b) the name of the district or region of the local authority; and

  • (c) the nature and extent of any proposed changes to—

    • (i) the boundaries of the district or region; and

    • (ii) the representation arrangements of the local authority; and

    • (iii) the extent to which the areas of interest of iwi and hapū are included in the district or region; and

    • (iv) any communities and any community boards of the local authority; and

  • (d) any other matters the Commission considers necessary or desirable.

  (2A) A draft proposal must describe, for each local authority proposed to be established,—

  • (a) the type of local authority; and

  • (b) the name of the district or region of the local authority; and

  • (c) the boundaries of the district or region; and

  • (d) the representation arrangements of the local authority; and

  • (e) the names and areas of interest of iwi and hapū in the district or region; and

  • (f) any communities and any community boards of the local authority; and

  • (g) any other matters the Commission considers necessary or desirable.

  (2B) However, the Commission may decide, if it considers it more appropriate to do so, to defer including in a draft proposal the representation arrangements or community board arrangements, or both, and include them in the reorganisation scheme.

  (2C) A draft proposal must also—

  • (a) contain information about the role, powers, and composition of the transition body, including—

    • (i) whether the transition body would include a transition board; and

    • (ii) if a transition board would be included in a transition body, how each affected local authority will be represented on the transition board and whether the transition board will include other persons; and

  • (b) have attached to it a full and detailed explanation of the advantages and disadvantages of the draft proposal and of how it will promote good local government.

  (3) In preparing a draft proposal, the Commission may require a local authority affected by the proposal to provide information to assist the Commission to prepare the proposal.

  (4) In preparing a draft proposal, the Commission may undertake inquiries and consultations in relation to the draft proposal with any persons and organisations, bodies, and groups it considers appropriate.

  (5) In preparing a proposal, the Commission must have regard to the matters specified in clauses 7 and 8 for the purposes of assessing a reorganisation application.

12A Local boards

• (1) This clause applies if—

  • (a) the Commission has determined, under clause 7C, that the preferred option for local government of an area is a unitary authority; and

  • (b) the area—

    • (i) will be urban or predominantly urban in nature; and

    • (ii) has, or is predicted to have within a period of 5 years after public notice of the draft proposal, a population that exceeds 400 000.

  (2) In preparing a draft proposal in relation to the affected area, the Commission may include provisions for local boards if it considers that good local government of the district of the unitary authority would be best promoted by providing for local boards.

  (3) Provisions for local boards must be consistent with sections 7, 10 to 32B, 97 to 99, 102, and 105 of the Local Government (Auckland Council) Act 2009, and those sections apply in relation to the proposed unitary authority as if—

  • (a) every reference to the Council or Auckland Council were a reference to the unitary authority; and

  • (b) every reference to Auckland were a reference to the district of the unitary authority.

  (4) A draft proposal must, in addition to the matters specified in clause 12, specify—

  • (a) the number and names of local board areas within the district; and

  • (b) the boundaries of—

    • (i) each local board area; and

    • (ii) electoral subdivisions, if any, of each local board area; and

  • (c) the number of elected members of the local board for each local board area and, if a local board area is subdivided for electoral purposes, the number of members to be elected by the electors of each subdivision.

  (5) In determining the matters referred to in subclause (4)(a), (b), or (c), the Commission must ensure that—

  • (a) there are no fewer than 4 and no more than 9 members for each local board; and

  • (b) so far as is practicable, the boundaries of local board areas, and any electoral subdivisions, and the number of members to be elected, provide effective representation of communities of interest within the district; and

  • (c) the subdivision of any local board area for electoral purposes provides fair representation for the electors of the local board area; and

  • (d) the local board area boundaries, or subdivisions of those areas for electoral purposes, coincide with boundaries of the current statistical meshblock areas determined by Statistics New Zealand and used for parliamentary electoral purposes; and

  • (e) so far as is practicable, local board area boundaries coincide with ward boundaries.

  (6) For the purpose of giving effect to subclause (5)(c), the Commission must ensure that the population of each subdivision divided by the number of members to be elected by the subdivision produces a figure no more than 10% greater or smaller than the population of the local board area divided by the total number of elected members of the local board.

  (7) However, if the Commission considers that effective representation of communities of interest so requires, subdivisions may be defined, and membership distributed between them, in a way that does not comply with subclause (6).

  (8) Clause 12(2B) does not apply to a draft proposal under subclause (2).

  (9) To avoid doubt, clauses 12(2A)(f) and 16 do not apply to a draft proposal under subclause (2).

  (10) A reorganisation scheme in respect of a final proposal to which subclause (2) applies must, in addition to the matters specified in section 30, make an initial allocation of decision-making responsibility for the non-regulatory activities of the unitary authority between the authority's governing body and its local boards in accordance with section 17 of the Local Government (Auckland Council) Act 2009 as applied by subclause (3).

13 Cities

• A draft proposal may not provide that a territorial authority is to be called a city council unless the district of the territorial authority—

  • (a) has a population of not less than 50 000 persons; and

  • (b) is predominantly urban; and

  • (c) is a distinct entity and a major centre of activity.

14 Appropriate boundaries

• In determining boundaries for a draft proposal, the Commission must ensure that,—

  • (a) if practicable, the boundaries of regions conform with catchment boundaries; and

  • (b) if practicable, the boundaries of districts conform with the boundaries of regions; and

  • (c) the boundaries of regions and the boundaries of districts conform with the boundaries of statistical meshblock areas determined by Statistics New Zealand and used for parliamentary electoral purposes.

15 Representation

• In determining the representation arrangements of a local authority for a draft proposal or (if clause 12(2B) applies) a reorganisation scheme, the Commission must—

  • (aa) have regard to the existing electoral and representation arrangements of the affected local authorities; and

  • (a) provide fair and effective representation for individuals and communities of the local authority; and

  • (b) comply with the requirements of the Local Electoral Act 2001; and

  • (c) take into account the responsibilities, duties, and powers of the local authority.

16 Communities

• When preparing a draft proposal or (if clause 12(2B) applies) a reorganisation scheme, the Commission may consider whether good local government of any affected district would be best promoted by—

  • (a) a system of communities and the responsibilities, duties, and powers of the community boards in the district; or

  • (b) an alternative to an existing system of communities; or

  • (c) a change in the responsibilities, duties, and powers of the community boards in the district.

17 Consultation on proposal

• (1) As soon as practicable after completing a draft proposal, the Commission must—

  • (a) take the action that it considers necessary to ensure that the persons and organisations, bodies, and groups who may be interested in that the draft proposal are informed of the proposal; and

  • (b) give public notice of the draft proposal, which must—

    • (i) specify the location where the draft proposal may be inspected or how a copy of the draft proposal may be obtained; and

    • (ii) invite submissions on the draft proposal; and

    • (iii) specify the date by which submissions must be made to the Commission; and

    • (iv) specify the manner in which submissions are to be made; and

  • (c) seek the views of—

    • (i) the affected local authorities; and

    • (ii) the applicant; and

    • (iii) the Auditor-General; and

    • (iv) the Parliamentary Commissioner for the Environment; and

    • (v) the Secretary; and

    • (vi) the Secretary for the Environment; and

    • (vii) the chief executive of Te Puni Kōkiri; and

    • (viia) the Commissioner of Inland Revenue; and

    • (viib) any other chief executive of a department of State that may, in the opinion of the Commission, have an interest in or be affected by the proposal; and

    • (viii) any affected iwi and Māori organisations identified by Te Puni Kōkiri; and

    • (ix) each local authority whose district or region adjoins the district or region of an affected local authority; and

    • (ixa) any local boards, council-controlled organisations, and community boards of affected local authorities; and

    • (x) any other persons or organisations, bodies, or groups that the Commission considers appropriate.

  (2) A person or organisation, body, or group that wishes to make a submission on a draft proposal must make the submission to the Commission in the manner and by the date specified by the Commission in the public notice.

  (3) The Commission must consider each submission received and may hold hearings of submissions or meet with the persons making submissions or their representatives.

  (4) The Commission must grant the opportunity to meet, and be heard by, the Commission on the draft proposal to—

  • (a) the affected local authorities; and

  • (b) each local authority whose district or region adjoins the district or region of an affected local authority; and

  • (c) the applicant.

  (5) The Commission may also undertake, in a manner that it thinks fit, inquiries and consultations in relation to the draft proposal with any other persons and organisations, bodies, and groups it considers appropriate.

18 Decisions on draft proposals

• (1) After complying with clause 17, the Commission must—

  • (a) develop and issue a final proposal based on a proposal developed under clause 12; or

  • (b) develop and issue a final proposal based on a proposal developed under clause 12 and subsequently modified by the Commission; or

  • (c) decide not to proceed with the proposal and give public notice accordingly.

  (1) After complying with clause 17, the Commission must do 1 of the following:

  • (a) issue the draft proposal as a final proposal:

  • (b) issue a modified draft proposal as a final proposal:

  • (c) identify, under clause 7C, another preferred option as the basis for a new draft proposal:

  • (d) decide not to issue a final proposal and give public notice of the decision and the reasons for it.

  (1A) In making a decision about how to proceed under subclause (1), the Commission must—

  • (a) consider the submissions, views, and any other information received under clause 17; and

  • (b) have regard to—

    • (i) the matters specified in clause 8; and

    • (ii) the scale and scope of the changes proposed; and

    • (iii) the degree of community support for the draft proposal already demonstrated to the Commission; and

    • (iv) the potential benefits and disadvantages of modified proposals or alternative options; and

    • (v) the desirability of early certainty about local government organisation in the affected area.

  (1B) The Commission must not issue a final proposal under subclause (1)(b) unless the Commission is satisfied that it has sufficient information about the views of the persons referred to in clause 17(1)(c).

  (1C) A final proposal must comply with clauses 12(2), (2A), (2B), and (2C)(a) and 13 to 16 as if references in those provisions to a draft proposal were references to a final proposal.

  (1D) A final proposal may specify a period for the purpose of clause 3.

  (2) Before issuing deciding to issue a final proposal, the Commission must be satisfied that the final proposal is likely to have significant demonstrable community support in the district of each affected territorial authority.

  (3) For the purposes of subclause (2), clause 7(2) and (2A)(b) apply in relation to a final proposal.

19 Notification of final proposal

• (1) As soon as practicable after issuing a final proposal, the Commission must—

  • (a) give public notice of the final proposal and, in the notice, specify where copies of the proposal may be inspected; and

  • (b) take any other action that it considers necessary to ensure that the persons and organisations specified in clause 17(1)(c) are informed of the proposal.

  • (b) take any other action that it considers necessary to inform the persons, bodies, and groups who made submissions or provided views under clause 17 of the final proposal.

  (2) The Commission must attach to a final proposal a statement explaining—

  • (a) how the final proposal will promote good local government, having regard to the matters specified in clause 8; and

  • (b) the advantages and disadvantages of the final proposal.

  (3) The explanatory statement must outline the advantages and disadvantages of the proposal in respect of—

  • (a) a proposed new or altered district or region; and

  • (b) any remaining area of a district or region affected by the proposal; and

  • (c) any changes to the responsibilities of the affected local authorities.

  (2) The Commission must attach to a final proposal a full and detailed statement that—

  • (a) explains how the final proposal will promote the purpose of local government and facilitate economic performance, as described in clause 8; and

  • (b) provides a balanced assessment of the final proposal, outlining the advantages and disadvantages of the proposal in respect of—

    • (i) a proposed new or altered district or region; and

    • (ii) any remaining area of a district or region affected by the proposal; and

    • (iii) any changes to the responsibilities of each affected local authority.

Subpart 2—Polls

20 Application of this subpart

• This subpart applies to a final proposal that provides for any of the matters specified in section 24(1)(a), (b), (c), and (f).

21 Petition to require poll

• (1) If a final proposal has been issued under clause 18(1)(a) or (b), affected electors may demand a poll to determine whether or not the final proposal is to proceed and become a reorganisation scheme.

  (2) A poll may be demanded under subclause (1) by a petition of 10% or more of affected electors enrolled as eligible to vote in the affected area in the district of a territorial authority.

  (2A) A petition must be in the prescribed form (if any).

  (3) The Commission must, in the public notice of a final proposal under clause 19(1)(a), advise electors of—

  • (a) the opportunity to demand a poll under this clause; and

  • (b) the requirements relating to the submission of a petition under this clause; and

  • (c) the date by which a petition must be received by the Commission, being the close of the 60th working day after the first publication of the notice under clause 19(1)(a); and

  • (d) the affected area.

  (4) The date referred to in subclause (3)(c) must be determined by the Commission, but must not be earlier than 40 working days after the first publication of the notice under clause 19(1)(a).

  (5) Each person who signs a petition must state, against his or her signature, the person's name and address in sufficient detail to enable the person to be identified as an elector.

  (6) The chief executive officer of the Commission must send a copy of the petition to the electoral officer in of each affected local territorial authority, and the electoral officers must advise the Commission, within the time frame required by the Commission, of—

  • (a) the number of affected electors enrolled as eligible to vote in the local authority area district of the territorial authority; and

  • (b) the number of those electors who have signed the petition.; and

  • (c) whether the number of those electors who signed the petition constitute 10% or more of the affected electors enrolled in the district of the territorial authority.

  (7) To avoid doubt, a petition may not be started before a final proposal is issued.

  (8) For the purposes of this subpart,—

  affected area means the area or areas, as determined by the Commission, to which the final proposal applies

  petition—

  • (a) means 1 or more petitions submitted to the Commission that relate to the same final proposal; and

  • (b) to avoid doubt, includes a petition referred to in subclause (7), if the petition demands a poll in relation to the implementation of a reorganisation application dealing with the same or substantially the same area as the affected area.

  petition means 1 or more petitions submitted to the Commission that relate to the same final proposal.

22 Poll to be held

• (1) If the Commission receives a petition made in accordance with clause 21, a poll of electors must be held in the affected area.

  (1) A poll of electors must be held in the affected area if the Commission is satisfied that the petition—

  • (a) is made in accordance with clause 21; and

  • (b) relates to the final proposal.

  (2) Except as otherwise provided in this Part, a poll under this clause must be held under the Local Electoral Act 2001 and the provisions of that Act apply, with any necessary modifications, to the conduct of the poll.

  (3) The Commission must ensure that 1 electoral officer is designated to conduct the poll and to declare the official result of the poll under clause 24.

  (4) The costs of the poll are to be apportioned among the affected local authorities on the basis of the number of affected electors on the electoral rolls of the affected local authorities.

23 Timing of poll

• (1) A poll required by clause 22 must be held on a date determined by the Commission in accordance with this clause.

  (2) In determining the date on which a poll is to be held, the Commission must consult the electoral officer required to conduct the poll.

  (3) The Commission must, as soon as practicable after complying with subclause (2), give written notice of the date determined under subclause (1) to the Secretary, to the chief executive of each affected local authority, and to the electoral officer required to conduct the poll.

  (4) The electoral officer who receives written notification under subclause (3) must, within 7 days after receiving the notification, give public notice of—

  • (a) the poll; and

  • (b) the place or places at which the final proposal and the explanatory statement may be inspected.

  (5) The date determined under subclause (1) for the conduct of the poll must,—

  • (a) if written notice under subclause (3) is to be given on or after 28 September and before 21 November in any year, be a day not earlier than 10 February and not later than 17 February in the following year; and

  • (b) if written notice under subclause (3) is to be given on or after 21 November and before 16 December in any year, be a day not earlier than 7 March and not later than 14 March in the following year; and

  • (c) if written notice under subclause (3) is to be given on or after 16 December in any year and before 13 January in the following year, be a day not earlier than 4 April and not later than 11 April in that following year; and

  • (d) in any other case, be a day not later than 82 days after the day on which written notice under subclause (3) is given to the electoral officer.

24 Official result of poll

• The electoral officer must,—

  • (a) when declaring the official result of the poll under section 86 of the Local Electoral Act 2001, include a statement of—

    • (i) the total number of electors on the roll or rolls compiled for the purpose of the poll; and

    • (ii) the total number of valid votes cast:

  • (b) as soon as practicable after declaring the result, notify the Secretary, the chief executive of each affected local authority, and the Commission of the result.

25 Fate of proposal after poll

• (1) If more than 50% of the valid votes cast in the poll are for a final proposal, the Commission must prepare a reorganisation scheme to give effect to the proposal then clause 29 applies.

  (2) In every other case, the final proposal must not proceed.

Subpart 3—Advertising

26 Interpretation

• In this subpart, unless the context otherwise requires,—

  advertising means advertising in any medium

  poll period, in relation to a poll under clause 22, means the period commencing on the day after the date on which public notice of the final proposal is first given and ending with the close of the day on which the poll is held

  publish, in relation to advertising,—

  • (a) means to bring to the notice of a person in any manner, including (but not limited to)—

    • (i) displaying in any medium:

    • (ii) distributing by any means:

    • (iii) delivering to an address:

    • (iv) leaving at a place:

    • (v) sending by post or otherwise:

    • (vi) printing in a newspaper or other periodical:

    • (vii) broadcasting by any means:

    • (viii) disseminating by means of the Internet or any other electronic medium:

    • (ix) storing electronically in a way that is accessible to the public:

    • (x) incorporating in a device for use with a computer:

    • (xi) inserting in a film or video; but

  • (b) excludes addressing 1 or more persons face to face.

  specified period means,—

  • (a) if a poll is required to be held under clause 22, the period commencing on the day after the date on which public notice of the final proposal is first given and ending with the close of the day on which the poll is held:

  • (b) if a poll is not required to be held under clause 22, the period commencing on the day after the date on which public notice of the final proposal is given and ending with the close of the day specified by the Commission for the purposes of clause 21(3)(c).

27 Advertising in relation to polls

• (1) A local authority affected by a final proposal may not, at any time in a poll period, publish any advertising that promotes or opposes the implementation of the final proposal or a provision of the final proposal.

  (1) A local authority affected by a final proposal may not, at any time in a specified period, do anything (include publishing any advertising) that—

  • (a) involves the expenditure of the authority's money or use of the authority's resources; and

  • (b) promotes or opposes the implementation of the final proposal or a provision of the final proposal.

  (2) This clause does not apply to—

  • (a) any investigations or research undertaken by, or on behalf of, the local authority that relate to the final proposal or its effects; or

  • (b) the making of submissions or other representations to the Commission by the local authority; or

  • (c) the publication of any news or comment relating to the final proposal or the poll in any medium by any person other than the local authority.; or

  • (d) anything done to comply with the requirements of Part 7 of the Local Government Official Information and Meetings Act 1987.

27A Provision of referential information

• (1) Clause 27 does not preclude a local authority affected by a final proposal from publishing material that—

  • (a) does not expressly or impliedly promote or oppose the final proposal; but

  • (b) contains factual or referential material presented—

    • (i) in a balanced way; and

    • (ii) to assist electors considering promoting or signing a petition for the purposes of subpart 2 or voting in a poll to make a better-informed decision.

  (2) A local authority may (but does not have to) seek a ruling from the Commission that material proposed to be published by the local authority under subclause (1) complies with that subsection.

  (3) If the Commission provides a ruling that the material complies with subclause (1), then publication of the material by the local authority is to be treated as published in accordance with subclause (1).

28 Authorisation of advertising

• (1) A person may not publish advertising that promotes or opposes the implementation of the final proposal or a provision of the final proposal unless the advertising contains a statement setting out the name and address of the person who initiated or instigated the publication of the advertising.

  (2) In subclause (1), address means,—

  • (a) in relation to an individual,—

    • (i) the full street address of the place where the individual usually lives; or

    • (ii) the full street address of any other place where the individual can usually be contacted between the hours of 9 am and 5 pm on any working day:

  • (b) in relation to a body corporate or unincorporated,—

    • (i) the full street address of the body's principal place of business; or

    • (ii) the full street address of the body's head office.

Part 2A
Transition bodies

28A Application

• This subpart applies to a final proposal that is issued under clause 18 and notified under clause 19 and in relation to which—

  • (a) a poll, under clause 22,—

    • (i) has not been held because—

      • (A) the reorganisation proposal does not include any of the matters specified in section 24(1)(a), (b), (c), or (f); or

      • (B) the requirements for a petition under clause 21 have not been met; or

    • (ii) has been held and more than 50% of the valid votes cast in the poll are for the final proposal; and

  • (b) an Order in Council giving effect to the final proposal is to be made under section 25(1).

28B Establishment and purpose of transition body

• (1) This clause applies to a transition body established by an Order in Council giving effect to a final proposal under section 25(1).

  (2) The purpose of a transition body is to—

  • (a) work with the Commission on, and facilitate local input into, the development of the reorganisation scheme to complete the final proposal; and

  • (b) provide advice to the Commission and affected local authorities, as appropriate, on practical matters relating to the reorganisation scheme; and

  • (c) do anything else requested by the Commission in relation to the development and implementation of the reorganisation scheme.

  (3) The transition body is established and continues in existence during the following periods:

  • (a) between the day on which a final reorganisation proposal is given effect to by Order in Council under section 25(1) and the day on which the reorganisation scheme is given effect to by Order in Council under section 25(4) (phase 1); and

  • (b) between the day on which the reorganisation scheme is given effect to and the implementation date (phase 2).

  (4) To avoid doubt, different arrangements for the roles, functions, membership, and accountability of the transition body may apply during phase 1 and phase 2.

28C Composition and membership of a transition body

• (1) A transition body—

  • (a) must include an implementation team; and

  • (b) may include a transition board.

  (2) In developing a draft proposal, the Commission must determine whether or not a transition board is required by the type and scale of the changes proposed to be made by the reorganisation.

  (3) However, a transition body must include a transition board if the final proposal involves—

  • (a) the establishment of 1 or more new local authorities; or

  • (b) a significant change to 1 or more of the affected local authorities.

  (4) A transition body must be broadly representative of the affected area.

  (5) Members of the transition body must be appointed by the Commission, which may seek advice or nominations from the affected local authorities.

  (6) The Commission must appoint, on such terms and conditions as it thinks fit, a person to be the manager of the implementation team.

  (7) If a transition body includes a transition board,—

  • (a) the majority of the members of the transition board must be elected members of the affected local authorities; and

  • (b) persons who are not elected members of affected local authorities may be appointed as non-voting members of the transition board to provide particular expertise that elected members do not have or are unlikely to have.

28D Roles and functions of the transition body

• (1) A transition body is responsible for—

  • (a) undertaking the roles and responsibilities specified in an Order in Council under section 25(1); and

  • (b) preparing and implementing a change management plan to guide the transition to the new arrangements specified in a reorganisation scheme; and

  • (c) carrying out any other actions that the Commission considers are necessary or desirable for the transition to the new arrangements.

  (2) During phase 1, the role of a transition board may include 1 or more of the following functions:

  • (a) making recommendations to the Commission on matters of policy:

  • (b) providing advice to the Commission:

  • (c) exercising any powers and responsibilities delegated by the Commission to it.

  (3) If the appointment of an interim chief executive is provided for in the Order in Council under section 25(1), the transition board must make that appointment.

  (4) The role of an implementation team may include 1 or more of the following functions:

  • (a) giving effect to decisions made by—

    • (i) the transition board; and

    • (ii) the Commission; and

    • (iii) affected local authorities:

  • (b) providing advice on technical and operational matters to—

    • (i) the transition board; and

    • (ii) the Commission; and

    • (iii) affected local authorities:

  • (c) providing support to the interim chief executive, if an interim chief executive is appointed.

28E Accountability arrangements for the transition body

• (1) During phase 1, the transition body is responsible to the Commission for the performance of its role, responsibilities, and functions under clause 28D.

  (2) During phase 2,—

  • (a) if a transition body includes a transition board,—

    • (i) members of the transition board are to represent the interests of the communities within the affected area; and

    • (ii) the manager of the implementation team is responsible to the transition board; and

  • (b) if a transition body does not include a transition board, the manager of the implementation team is responsible to the chief executive of each of the affected local authorities.

28F Appointment of interim chief executive

• (1) If an Order in Council under section 25(1) provides for the appointment of an interim chief executive for a local authority, the transition board must, as soon as practicable, appoint a chief executive for the local authority.

  (2) The term of an interim chief executive's appointment must end—

  • (a) not earlier than 2 years after the effective date of the appointment; and

  • (b) not later than 3 years after the implementation date specified in the Order in Council.

  (3) In making an appointment under subclause (1), the transition board must have regard to—

  • (a) the matters that a local authority must consider in relation to appointing an interim chief executive under clause 33 of Schedule 7; and

  • (b) the skills and experience required of a chief executive in order to—

    • (i) prepare for the establishment of the local authority on the implementation date; and

    • (ii) exercise, to the extent authorised by Order in Council, the powers set out in clause 28G; and

    • (iii) provide effective leadership of the staff and management of the systems and resources of the local authority in the early years of its existence.

28G Interim chief executive may appoint staff, enter into contracts, and call first meeting of local authority

• (1) A chief executive appointed under clause 28F may, if authorised by the Order in Council,—

  • (a) employ, on behalf of the local authority, staff for the local authority with a start date before the implementation date; and

  • (b) employ, on behalf of the local authority, staff for the local authority with a start date on or after the implementation date; and

  • (c) on behalf of the local authority, enter into contracts, leases, and other agreements to enable the local authority to operate efficiently and effectively on and from the implementation date; and

  • (d) exercise the duties of a chief executive under clause 21 of Schedule 7 to call, before the implementation date, the first meeting of the local authority to be held on or after that date.

  (2) The chief executive must exercise the powers in subclause (1) in accordance with the change management plan developed under clause 28D(1)(b) and any other protocols or processes developed by the Commission.

  (3) For the purposes of this clause, the chief executive must exercise the powers and perform the functions described in this clause as if the local authority were established, and—

  • (a) any appointment under subclause (1)(a) and (b) made by him or her before the implementation date is—

    • (i) deemed to be made with the express authority of the local authority; and

    • (ii) valid and enforceable; and

  • (b) any contract, lease, or other agreement entered into under subclause (1)(c) by him or her before the implementation date is—

    • (i) deemed to be entered into with the express authority of the local authority; and

    • (ii) valid and enforceable.

  (4) Despite subclause (3), all costs and other obligations associated with any appointment, contract, lease, or other agreement made by the chief executive under subclause (1) and incurred before the implementation date must be apportioned between the affected local authorities in accordance with the determination of the Commission under clause 28H.

28H Apportionment of transition costs

• (1) The Commission must, as soon as practicable after an Order in Council is made under section 25(1), determine how the costs associated with the transition will be apportioned between the affected local authorities.

  (2) Before making a determination under subclause (1), the Commission must consult every affected local authority.

  (3) This clause applies to—

  • (a) the costs associated with—

    • (i) the operation of the transition body or transition bodies; and

    • (ii) the appointment and employment of the interim chief executive; and

  • (b) the costs referred to in clause 28G(4).

Part 3
Reorganisation schemes

Subpart 1—Preparation of reorganisation schemes

29 Preparation of reorganisation scheme

• (1) This clause applies to a final proposal that is issued under clause 18 and notified under clause 19 and in relation to which—

  • (a) no poll is held because—

    • (i) the reorganisation proposal does not include any of the matters specified in section 24(1)(a), (b), (c), or (f); or

    • (ii) the requirements for a petition under clause 21 have not been met; or

  • (b) a poll has been held and more than 50% of the valid votes cast in the affected area are for the reorganisation proposal.

  (1) This clause applies in relation to a final proposal that is given effect to by an Order in Council under section 25(1).

  (2) The Commission must prepare and issue a reorganisation scheme that—

  • (a) includes any of the matters appropriate to the scheme that are specified in clause 30; and

  • (b) in the Commission's opinion will promote good local government.

  • (a) completes the final proposal; and

  • (b) is consistent with the final proposal, this Act, and any other enactment; and

  • (c) promotes good local government in a way that meets the needs and preferences of affected communities.

  (3) In preparing a reorganisation scheme, the Commission—

  • (a) must consult the Secretary; and

  • (b) may consult or make inquiries of any other persons or organisations, bodies, or groups that it thinks fit.

  (4) The Commission may delegate, wholly or in part, to a transition body the responsibility for preparing a reorganisation scheme, but the Commission retains responsibility for ensuring, before the Commission issues it, that the reorganisation scheme complies with subclause (2)(a) to (c).

Subpart 2—Contents of and provisions that apply to reorganisation schemes

30 Provisions for inclusion in reorganisation schemes

• (1) In preparing a reorganisation scheme, the Commission—

  • (a) must include set out again the matters specified in clause 12(2) and (2A); and

  • (b) must include the provisions that are necessary to give effect to the scheme and, in particular, must include—

    • (i) include the provisions specified in clause 31 that are considered necessary or desirable as a consequence of the scheme; and

    • (ii) include any provisions that are considered necessary for the purposes of any affected district or region, or for the discharge of the responsibilities of the local authority of any such district or region, or for any other matter that is necessary or desirable to give effect to the provisions; and

    • (ii) any provisions considered necessary for—

      • (A) the purposes of the district or region of an affected local authority; or

      • (B) the discharge of the responsibilities of an affected local authority; or

      • (C) any other matter that is necessary or desirable to give effect to the provisions; and

  • (c) may provide that 1 or more of the provisions of clause 34 clauses 34 and 34A—

    • (i) apply to the scheme with modifications; or

    • (ii) do not apply; and

  • (d) may provide for the application, with the modifications that may be necessary or desirable, of any provisions of any Act for the time being in force that are considered appropriate to the particular matter; and

  • (e) may make provision for any arrangements the Commission considers necessary or desirable to assist in the transition to a new local authority, including but not limited to— for the purposes of the reorganisation; and

    • (i) the establishment of a transition committee or committees under clause 32; and

    • (ii) the appointment by a transition committee of an interim chief executive to a new local authority; and

  • (f) may specify a period for the purposes of clause 3; and

  • (g) may incorporate any other matters that it considers necessary or appropriate to give effect to the proposal.

  (2) If the Commission has, under clause 12(2B), deferred including representation arrangements or community board arrangements, or both, in a proposal, the Commission must include the representation arrangements or community board arrangements, or both, in the reorganisation scheme.

31 Provisions to be included if necessary or desirable

• If considered necessary or desirable, the following provisions may be included in a reorganisation scheme:

  • (a) provisions determining the nature or constitution of a new local authority:

  • (b) provisions necessary for the first or any election or appointment of members of a local authority or community board affected by the scheme:

  • (c) provisions that are necessary for the effective transition and future carrying out of responsibilities that are to be transferred from one local authority to another local authority:

  • (d) provisions dealing with the requirements and application of long-term plans, annual plans, and annual reports as provided for under this enactment:

  • (e) provisions dealing with the requirements in any enactment that relate to plans, programmes, and strategies, including (but not limited to) regional land transport programmes and regional land transport strategies under the Land Transport Management Act 2003:

  • (f) provisions dealing with—

    • (i) the administration of an existing, proposed, or operative district plan or regional plan under the Resource Management Act 1991:

    • (ii) the administration of any designations, resource consents, and notices of requirement under the Resource Management Act 1991, but subject to sections 81 to 180 of that Act:

  • (g) if an area is included in the district of another territorial authority, provisions that the civil defence emergency management group plan for the district in which the area is included applies to the area so included and is the only operative local civil defence plan to apply in that area:

  • (h) if a new district or region is constituted, provisions that every civil defence emergency management group plan that is in force in respect of any area included in that district or region continues in force until a new plan is prepared and approved for the district under the Civil Defence Emergency Management Act 2002:

  • (i) provisions for committees for the first term of the new local authority and membership and responsibilities of those committees:

  • (j) provisions dealing with the apportionment or disposition of the assets and liabilities of all or any of the local authorities affected by the scheme, which provisions may include the date on which any of the apportionment or disposition takes place or may be treated as having taken place:

  • (ja) provisions dealing with the transfer, in accordance with clause 38A, of employees of the local authorities affected by the scheme:

  • (k) provisions concerning rating in a new district or region, or enlarged district or region, which may—

    • (i) specify the date by which a single integrated rating system must be adopted in the district or region; and

    • (ii) specify the valuation system for any general rate forming part of the initial integrated rating system; and

    • (iii) specify the basis on which rates may be set and assessed within the district or region between the date the order takes effect and the date specified under subparagraph (i), which may include the use of different rating systems for specified rates, or for specified rates in different parts of the district or region; and

    • (iv) make such other provision for the transition to, or implementation of, the single integrated rating system as the Commission considers desirable:

  • (l) if a district or region is abolished and the whole or any part of it is included in the district or region of another local authority, provisions for the representation of the district or region being abolished or part of it on the other local authority until the next triennial general election of members of the other local authority.

32 Provisions to enable effective transition

• If provision is made for the establishment of a committee or committees to assist the transition to a new local authority, the Commission may—

  • (a) determine, or provide for the determination of, the membership of each committee:

  • (b) appoint, or provide for the appointment of, the chairperson of each committee:

  • (c) determine the functions and powers of each committee:

  • (d) require each committee to take any other steps the Commission considers necessary for the transition to the new local authority:

  • (e) apportion costs of the functioning of each committee between the affected local authorities:

  • (f) apportion costs of the appointment of the interim chief executive:

  • (g) take any steps the Commission considers necessary to monitor, and make recommendations in relation to, the transition to the new local authority.

Subpart 3—Implementation and effect of reorganisation schemes reorganisations

33 Application

• This subpart applies in relation to a reorganisation scheme on and from the date the scheme is given effect to by an Order in Council under section 25.

  (1) This subpart applies—

  • (a) in relation to a reorganisation scheme on and from the date the scheme is given effect to by an Order in Council under section 25(4); and

  • (b) to the extent that the matters in this subpart have not already been provided for in an Order in Council made under section 25(1) giving effect to a final proposal.

  (2) In this subpart, reorganisation order means an Order in Council made under section 25(4).

34 Provisions that apply to reorganisation scheme unless modified or excluded

• The following provisions apply to a reorganisation scheme unless amended by the reorganisation scheme or declared by the reorganisation scheme not to apply:

  • (a) the local authority that assumes, under the scheme, jurisdiction over an area formerly comprising or forming part of a separate district or region, or that takes over the responsibilities of a local authority, has, and may exercise, and is responsible for,—

    • (i) all the powers, duties, acts of authority, and responsibilities that were previously exercised by the former local authority, or that would have been exercised by it if it had remained in existence or in control of that area:

    • (ii) all the liabilities, obligations, engagements, and contracts that were previously the responsibility of the former local authority, or that would have been its responsibility if it had remained in existence or in control of that area:

    • (iii) all the actions, suits, and proceedings pending by or against the former local authority, or that would have been its responsibility if it had remained in existence or in control of that area:

  • (b) the responsibilities, duties, and powers of the mayor, chairperson, and chief executive of the former local authority must be exercised by the mayor, chairperson, and chief executive of its successor:

  • (c) all real and personal property vested in an abolished local authority vests in its successor, subject to all existing encumbrances:

  • (d) a local authority that assumes jurisdiction over an area that was formerly part of a separate district or region has, subject to all existing encumbrances, vested in it all the land situated in that area that was vested in the local authority that formerly had jurisdiction over that area:

  • (e) all bylaws in force in the district or region of an abolished local authority, or in the part of a district or region included in another district or region, that are applicable to the altered circumstances of the new controlling local authority are to be treated as the bylaws of that local authority, and those bylaws remain, until revoked or altered by that local authority, in force in the area in which they were in force immediately before the abolition or the alteration of boundaries, and, if those bylaws cannot be restricted to that area, they must be treated as inapplicable and revoked by the abolition or alteration of boundaries:

  • (f) all rates or levies and other money payable in respect of an abolished local authority, or of an area of land included in the district or region of another local authority, are due and payable to the new local authority:

  • (g) if the area of an abolished district or region comprises part only of another district or region, any money to the credit of the abolished local authority's accounts must, after all liabilities have been provided for, be expended to the benefit of the residents of that area, and any money required to be paid into the accounts of the abolished local authority to meet any deficiency must be raised within the area of the abolished local authority:—

    • (i) any money to the credit of the abolished local authority's accounts must, after all liabilities have been provided for, be expended to the benefit of the residents of that area; and

    • (ii) any money required to be paid into the accounts of the abolished local authority to meet any deficiency must be raised within the area of the abolished local authority:

  • (h) the rights or interests of creditors of a district or region must are not be affected:

  • (i) the valuation rolls, electoral rolls, and rate records in force in the district or region of an abolished local authority, or in relation to any part of the district or region of a local authority included in the district or region of another local authority, continue in force in the district or region of the new controlling local authority until those rolls or records are made by that local authority, and, until that time, the Local Government (Rating) Act 2002 applies:

  • (j) except in the circumstances specified in clause 1, 2, 4, or 5 of Schedule 7, if part of a district or region is excluded from that district or region and included in another district or region, the members of the local authority of the first-mentioned district or region continue to be members of that district or region as if that part had not been excluded from the district or region.

34A Bylaws

• (1) The provisions of this clause apply unless amended by a reorganisation scheme or declared by the reorganisation scheme not to apply.

  (2) Subclauses (3) to (8) apply to bylaws if—

  • (a) they are in force in all or part of a district or region that, under a reorganisation order, is included in the jurisdiction of a local authority other than the local authority that made them; and

  • (b) they are in force immediately before the implementation date; and

  • (c) they are not excluded from the application of this clause by the reorganisation order.

  (3) On and from the implementation date, the bylaws are deemed to have been made by the local authority assuming jurisdiction of the area.

  (4) Each bylaw must be reviewed by the local authority assuming jurisdiction over the area at the time and in accordance with the requirements of any enactment under which it was made, or last reviewed, by the authority that made it.

  (5) Each bylaw remains in force, in the area to which it applied immediately before the commencement of the reorganisation order, for a period of 5 years, and is then revoked, unless before that period ends—

  • (a) the local authority assuming jurisdiction of the area confirms the bylaw, in which case the confirmed bylaw becomes a bylaw made by that local authority and remains in force until it expires or is revoked; or

  • (b) the local authority assuming jurisdiction of the area amends the bylaw, in which case the bylaw as amended becomes a bylaw made by that local authority and remains in force until it expires or is revoked; or

  • (c) the local authority assuming jurisdiction of the area revokes the bylaw.

  (6) The local authority assuming jurisdiction of the area must use the special consultative procedure before confirming, amending, or revoking a bylaw under subclause (5)(a), (b), or (c).

  (7) If section 159 applies to a bylaw confirmed or amended under this clause, for the purposes of that section the date of the confirmation or amendment of the bylaw must be treated as if it were the date of the last review of the bylaw.

  (8) In this clause, bylaw includes—

  • (a) a set of bylaws; and

  • (b) an individual bylaw in a set of bylaws; and

  • (c) a provision within an individual bylaw.

35 Effect of Order in Council giving effect to reorganisation scheme

• An Order in Council giving effect to a reorganisation scheme does not affect—

  • (a) any separate rate or special rate, and every such rate continues to be charged on the whole of the area of land on which it was charged before the making of the order and does not, for that reason, become a charge on any additional area; and

  • (b) the area within which, and the purposes for which, any unexpended loan money may be expended.

36 Power to amend basis of certain rates

• (1) Despite clause 35, a local authority constituted by an Order in Council giving effect to a reorganisation scheme may, with the approval of the Commission, make and levy a rate for the purpose of meeting the annual charges for a special loan (within the meaning of the Local Authorities Loans Act 1956) raised by any of the former authorities.

  (2) A rate made and levied under subclause (1) may be made and levied only over the area of the district of the local authority (being an area different from that over which the loan is secured) that the Commission agrees is benefiting or will benefit from the undertaking or amenity for which the special loan was raised.

  (3) This clause does not authorise any alteration to the area over which any special loan is secured.

37 No compensation payable if responsibility transferred

• (1) If provision is made in a reorganisation scheme order for a responsibility to be transferred to, or assumed by, a local authority, provision may not be made for the payment of compensation to the local authority from which that responsibility is transferred or assumed.

  (2) This clause applies subject to clauses 38 and 42.

38 Payment if trading undertaking transferred

• (1) If a reorganisation scheme order provides for the transfer of a trading undertaking from a local authority (the transferor) to any other local authority (the transferee), the transferor may request the Commission to determine whether any payment for the transfer of the trading undertaking should be made by the transferee to the transferor and, if so, the amount of the payment.

  (2) The Commission may, in considering a request under subclause (1), require the local authorities to each appoint an independent person as an assessor to report to the Commission on whether any payment should be made.

  (3) The costs incurred by assessors must be met jointly by the local authorities appointing the assessors.

  (4) The Commission may make a determination under this clause subject to any conditions that it considers desirable.

38A Employees

• (1) This clause applies where—

  • (a) a local authority (local authority A) ceases to exist under a reorganisation scheme and its district or region is included in the district or region of another local authority (local authority B); or

  • (b) a reorganisation scheme provides, under clause 31(ja) for the transfer of employees from a local authority (local authority A) to another local authority (local authority B).

  (2) On and from the implementation date, a person who was, immediately before that date, an employee of local authority A becomes an employee of local authority B.

  (3) For the purposes of every enactment law, award, determination, contract, and agreement relating to the employment of the person,—

  • (a) his or her employment agreement is unbroken; and

  • (b) the period of his or her service with local authority A is to be treated as a period of service with local authority B.

  (4) The terms and conditions of employment of the person with local authority B are—

  • (a) identical to the terms and conditions of his or her employment with local authority A immediately before the implementation date; and

  • (b) capable of variation in the same manner.

  (5) The person is not entitled to receive any payment or other benefit because he or she has, under this Act, ceased to be an employee of local authority A and become an employee of local authority B.

38B KiwiSaver Act 2006 does not apply to transferred employee

• The transfer of an employee's employment under clause 38A does not constitute new employment for the purposes of the KiwiSaver Act 2006.

39 Certain matters not affected by transfer of responsibilities, duties, or powers

• A reorganisation scheme order does not—

  • (a) place a local authority or other person in breach of contract or confidence or otherwise make the local authority or other person guilty of a civil wrong; or

  • (b) give rise to a right for a person to terminate or cancel any contract or arrangement, or to accelerate the performance of an obligation; or

  • (c) place a local authority or other person in breach of any enactment or rule of law or contractual provision prohibiting, restricting, or regulating the assignment or transfer of property or the disclosure of information; or

  • (d) release a surety wholly or in part from an obligation; or

  • (e) invalidate or discharge a contract or security.

40 Registers

• (1) The Registrar-General of Land or other person charged with the keeping of books or registers is not required solely by reason of an Order in Council giving effect to a reorganisation scheme a reorganisation order to change the name of the transferor to that of the transferee in those books or registers or other documents.

  (2) The presentation to the Registrar-General of Land or other person of an instrument, whether or not comprising an instrument of transfer by the transferee, is, in the absence of proof to the contrary, sufficient evidence that the property is vested in the transferee if the instrument—

  • (a) is executed, or purports to be executed, by the transferee; and

  • (b) is related to property held by the transferor; and

  • (c) contains a recital that the property has become vested in the transferee by virtue of an Order in Council giving effect to a reorganisation scheme a reorganisation order made under this Act.

41 General

• (1) This clause applies if, under a reorganisation scheme, a local authority assumes jurisdiction over an area formerly comprising a separate district or region, or formerly constituting a defined part of the district or region from which it was excluded.

  (2) If this clause applies, the local authority—

  • (a) has and may exercise, unless the Order in Council states otherwise, all the powers to raise a loan, or the part of the loan that has not already been raised, that could have been exercised by the local authority that had resolved to raise the loan if it had remained in existence or in control of the part excluded from its district or region; and

  • (b) is subject to the same duties, obligations, and liabilities that were, or would have been, imposed on the local authority that had resolved to raise the loan if it had remained in existence or in control of the part excluded from its district or region if, under the scheme,—

    • (i) 2 or more districts or regions are united, whether or not of the same kind; or

    • (ii) a district or region is included in another district or region, or is abolished; or

    • (iii) a part of a district or region that is or includes a part of the district or region that is separately defined for the purposes of the loan is excluded from the district or region and is constituted as a new district or included in another district or region; and

  • (c) before the union, inclusion, abolition, or exclusion, the local authority of an area formerly comprising a separate district, or of the district or region from which the part was excluded, had resolved to raise a loan, being a loan for the benefit of that defined part, but had not raised the loan, or had raised only part of the loan, and the resolution has not lapsed.

  (3) If, on the addition of an area to a district of a territorial authority, a liability is imposed on the local authority, a special rate made and levied as security for a loan raised under subclause (2) may be made and levied over the whole district or, if the special order to raise the loan so provides, over the added area.

  (4) If part of a district or region is excluded from that district or region and included in another district or region, the remaining part of the first-mentioned district or region continues to be the same district or region.

42 Apportionment of assets and liabilities

• (1) If an Order in Council or a reorganisation scheme a reorganisation order does not make provision for the apportionment of the assets and liabilities of the local authorities affected by the order, the local authorities may, by agreement, determine the manner in which those assets and liabilities must be apportioned.

  (2) If an agreement is not entered into by the local authorities concerned within 3 months after the date of the coming into force of the reorganisation order, a local authority directly affected may apply to the Commission for an order apportioning assets and liabilities, and the Commission must make an order directing the manner in which assets and liabilities must be apportioned among the local authorities concerned.

  (3) For the purpose of deciding an application to the Commission under subclause (2), the Commission—

  • (a) must consult the Auditor-General and the local authorities directly affected; and

  • (b) may make the inquiries that it thinks fit; and

  • (c) may obtain advice from any other person who, in the opinion of the Commission, has expert knowledge concerning any aspect of the matter to be decided.

  (4) In the exercise of its powers under subclause (2), the Commission may identify the assets and liabilities to be transferred, and assets and liabilities to be transferred must include all amounts and items that properly ought to be treated as being of the same character, irrespective of how they may be described in the accounts or records of any local authority.

  (5) An order of the Commission under subclause (2) may be enforced as if it were an agreement between the local authorities concerned.

  (6) For the purposes of the Income Tax Act 2007, the Goods and Services Tax Act 1985, and the Accident Compensation Act 2001, a local authority constituted under a reorganisation scheme order is deemed to be the same local authority as each of the local authorities whose district, region, or functions are wholly transferred to that local authority.

43 Apportionment of fuel tax revenue

• (1) This clause applies if, under an Order in Council giving effect to a reorganisation scheme,—

  • (a) any proceeds of a fuel tax levied under Part 11 of the Local Government Act 1974 are distributed among the component authorities affected by the proposal in accordance with Part 11 of that Act; and

  • (b) either—

    • (i) a new district of a component authority is constituted comprising or including only part of another such district then existing; or

    • (ii) the boundaries of the district of a component authority are altered by the inclusion of an area of land forming part of another such district.

  (2) Despite Part 11 of the Local Government Act 1974, the component authorities whose districts have respectively been increased and decreased in area and the component authority for the newly constituted district may, by agreement, determine the basis on which the proceeds of a final tax levied under that Part are distributed among them until the expiration of the year commencing on 1 July on or after the day on which the Order in Council comes into force.

  (3) Clause 42(3) to (5) apply as if an order of the Commission under clause 41(2) were an order determining an issue under subclause (2) of this clause.

  (4) Nothing in this clause has the effect of altering the provisions of Part 11 of the Local Government Act 1974 in respect of the proportion of the proceeds of any tax distributed under that Part to any constituent authorities whose districts are not altered by the Order in Council or other instrument.

  (1) Despite Part 11 of the Local Government Act 1974, the local authorities established or affected by a reorganisation order may, by agreement, determine that the proceeds of fuel tax levied under that Part are to be distributed among them other than in accordance with that Part.

  (2) If agreement under subclause (1) cannot be reached within 3 months after the date on which the reorganisation order comes into force, any of those local authorities may apply to the Commission for an order determining the matter in accordance with clause 42(2) to (5).

  (3) An agreement under subclause (1), or an order under subclause (2), applies only to the end of the first financial year that commences after the date on which the reorganisation order comes into force.