Local Government Act 2002 Amendment Bill (No 2)

Hon Anne Tolley

Local Government Act 2002 Amendment Bill (No 2)

Government Bill

144—2

Contents

Commentary
Key
1Title
2Commencement
Part 1
Amendments to Local Government Act 2002
3Principal Act
4Section 5 amended (Interpretation)
5Section 6 amended (Meaning of council-controlled organisation and council organisation)
6Section 16 amended (Significant new activities proposed by regional council)
7Section 17 amended (Transfer of responsibilities)
8Section 24AA replaced (Purpose of local government reorganisation)
24AAPurpose of local government reorganisation provisions
9Section 24 replaced (Scope of local government reorganisation)
24Scope of local government reorganisation
10Section 24A amended (Transitional modification or suspension of certain statutory requirements after issue of final proposal for reorganisation)
11Section 25 replaced (Order in Council to give effect to final proposals and reorganisation schemes)
25Order in Council to give effect to reorganisation plan
25AOrder in Council to give effect to reorganisation implementation scheme
12Section 26 amended (Power to amend reorganisation schemes)
12Section 26 replaced (Power to amend reorganisation schemes)
26Power to amend reorganisation plans and reorganisation implementation schemes
13Section 26A amended (Duties of local authorities in relation to local government reorganisation)
14Section 27 amended (Application to be called city council or district council)
14ASection 29 amended (Commission is body corporate with full powers)
15Section 31 amended (Report to Minister on matters relating to local government)
16Section 31A replaced (Minister’s expectations of Commission in relation to local government reorganisation)
31AMinister’s expectations of Commission in relation to local government reorganisation
17New sections 31B to 31H inserted
31BStatement of intent
31CAnnual work programme
31DPower to direct Commission to have regard to Government policy
31EReview of Commission’s operations and performance
31FObligation to prepare, present, and publish annual report
31GForm and content of annual report
31HCommission to resolve disputes
18Section 33 amended (Membership of Commission)
18ASection 34 replaced (Commission is Commission of Inquiry)
34Additional powers of Commission
19New section 35A inserted (Application of Official Information Act 1982)
35AApplication of Official Information Act 1982
20Section 48R amended (Disputes about allocation of decision-making responsibilities or proposed bylaws)
21Section 48S amended (Local Government Commission to determine disputes)
21APart 5 replaced (Council-controlled organisations and council organisations)
Part 5
Council-controlled organisations and council organisations
55Outline of Part
Subpart 1—Establishment of council organisations and council-controlled organisations
Principal objective of council-controlled organisations
56Principal objective of council-controlled organisations
General provisions
57Official information
57AActivities undertaken on behalf of local authorities
Establishment
58Consultation required before council-controlled organisation established
58AEstablishment of multiply owned council-controlled organisation
58BCommission agreement required before consultation on proposed establishment of transport or water services council-controlled organisation
Transfer of undertakings
59Transfer of undertakings to council-controlled organisations
Subpart 2—Governance of council organisations and council-controlled organisations
Directors
60Appointment of directors
60ARole of directors of council-controlled organisations
Decisions
61Decisions relating to operation of council-controlled organisations
61ASignificant decisions of substantive council-controlled organisations affecting land or water
Governance of substantive council-controlled organisations
62Constitution of substantive council-controlled organisation
62AStatement of expectations
62BAccountability policy
62CShareholders may impose additional accountability requirements on substantive council-controlled organisation
Governance of multiply owned substantive council-controlled organisations
63Participants’ agreement for multiply owned substantive council-controlled organisation
63AGovernance of multiply owned substantive council-controlled organisation
Transport services and water services council-controlled organisations
64Shareholding in transport services and water services council-controlled organisations
Subpart 3—Planning and reporting
Service delivery plans and infrastructure strategies of council-controlled organisations
65Application
65AContent of service delivery plan
65BResolving conflict between provisions of service delivery plan that give effect to long-term plans of different shareholders
65CContent of infrastructure strategy
65DAdoption of service delivery plan
65EAmendment of service delivery plan
65FPublication of service delivery plan
Service delivery plans and infrastructure strategies of transport services and water services council-controlled organisations
66Transport services and water services council-controlled organisations must have service delivery plan and infrastructure strategy
Statements of intent
67Statements of intent for council-controlled organisations
Monitoring and reporting
68Performance monitoring
68AHalf-yearly report
68BAnnual report
68CContent of reports on operations of council-controlled organisations
68DFinancial statements and auditor’s report
68EAuditor-General is auditor of council-controlled organisations
68FProtection from disclosure of sensitive information
68GApplication of Part to listed companies
68HApplication of Act to related companies
Subpart 4—Finance and funding
Financial arrangements and funding
69Funding of multiply owned council-controlled organisation
69ABorrowing by multiply owned substantive council-controlled organisation
69BFinancial management of substantive council-controlled organisation
69CLimitation on capital charges
69DProhibition on council-controlled organisations borrowing in foreign currency
69EProhibition on guarantees, etc
69FRestriction on lending to council-controlled trading organisation
Dividends to shareholders
70Prohibition on water services council-controlled organisation distributing surplus
Development contributions to fund capital expenditure by council-controlled organisations
71Water services council-controlled organisation may develop, adopt, and administer development contributions policy and require contributions
71AOther substantive council-controlled organisations may develop and adopt development contributions policy
71BShareholding territorial authorities must administer development contributions policy adopted by council-controlled organisation
71CSubstantive council-controlled organisation’s responsibilities in respect of development contributions policy
71DSubstantive council-controlled organisation may enter development agreement
71EConsultation
Subpart 5—Regulatory powers of transport services and water services council-controlled organisations
Acquisition and disposal of land
72Acquisition and disposal of land by transport services or water services council-controlled organisation
72ALimitation on acquisition and disposal of land by shareholding local authority for transport-related purposes
Powers of transport services council-controlled organisation
73Statutory powers of transport services council-controlled organisation
73ALocal Government Official Information and Meetings Act 1987 applies to transport services council-controlled organisations that make bylaws
Powers of water services council-controlled organisations
74Statutory powers of water services council-controlled organisation
74ALiability for damage by wilful or negligent behaviour towards water supply or wastewater work
74BBylaws and enforcement for multiply owned water services council-controlled organisation
74CWater services council-controlled organisation may propose bylaw
74DWater services council-controlled organisation must consult on proposed bylaw
74EWater services council-controlled organisation may propose amendment to bylaw
74FWater services council-controlled organisation may propose revocation of bylaw
22New sections 56A to 56W and cross-headings inserted
56AEstablishment of water services council-controlled organisation or transport services council-controlled organisation
56BEstablishment of multiply owned council-controlled organisation
Service delivery plan and infrastructure strategy of council-controlled organisation
56CContent of service delivery plan
56DContent of infrastructure strategy
56EAdoption of service delivery plan and infrastructure strategy
Water services council-controlled organisation
56FShareholding in water services council-controlled organisation
56GWater services council-controlled organisation must have service delivery plan and infrastructure strategy
56HProhibition on water services council-controlled organisation distributing surplus
56IStatutory powers of water services council-controlled organisation
56JBylaws and enforcement for multiply owned water services council-controlled organisation
56KWater services council-controlled organisation may propose bylaw
56LWater services council-controlled organisation must consult on proposed bylaw
Transport services council-controlled organisation
56MShareholding in transport services council-controlled organisation
56NTransport services council-controlled organisation must have service delivery plan and infrastructure strategy
56OStatutory powers of transport services council-controlled organisation
56PDesignations relating to acquisition and disposal of land
56QAcquisition and disposal of land by council-controlled organisation or shareholding local authority
Substantive council-controlled organisation
56RConstitution of substantive council-controlled organisation
56SAccountability policy for substantive council-controlled organisation
56TAccountability policy for multiply owned substantive council-controlled organisation
56UShareholders may impose additional accountability requirements on substantive council-controlled organisation
56VSubstantive council-controlled organisations must give effect to long-term plans and act consistently with other specified plans and strategies of shareholding local authorities
Governance of multiply owned substantive council-controlled organisation
56WGovernance of multiply owned substantive council-controlled organisation
23Section 57 amended (Appointment of directors)
24New sections 61A to 61E and cross-heading inserted
Financial arrangements and funding
61AFunding of multiply owned council-controlled organisation
61BBorrowing by multiply owned council-controlled organisation
61CFinancial management of substantive council-controlled organisation
61DLimitation on capital charges
61EProhibition on council-controlled organisations borrowing in foreign currency
25New sections 63A to 63E and cross-headings inserted
Development contributions to fund capital expenditure by council-controlled organisations
63ASubstantive council-controlled organisation may require amendment to shareholding territorial authority’s development contributions policy
63BProcess where draft amendment to development contributions policy proposed
63CEffect of amendment to development contributions policy
63DSubstantive council-controlled organisation may enter development agreement
Engagement on long-term plans
63EShareholding local authority must discuss proposed long-term plan
26Section 64 replaced (Statements of intent for council-controlled organisations)
64Statements of intent for council-controlled organisations
27Section 65 amended (Performance monitoring)
28Section 67 amended (Annual report)
29Section 68 amended (Content of reports on operations of council-controlled organisations)
29ASection 93 amended (Long-term plan)
29BSection 97 amended (Certain decisions to be taken only if provided for in long-term plan)
30Section 137 amended (Joint local government arrangements and joint arrangements with other entities)
31ANew crossheadings and sections 198B and 198C inserted
Transfer of responsibilities for which development contributions are collected to council-controlled organisations
198BWhen territorial authority may require development contributions for transferred responsibilities
198CAmendment of territorial authority development contributions policy where responsibilities transferred
Provisions applying to requirements for development contributions
31Section 259 amended (Regulations)
32Section 261A amended (Purpose of rules specifying performance measures)
33Section 261B amended (Secretary must make rules specifying performance measures)
33ANew section 261CA inserted (Review and replacement of rules specifying performance measures)
261CAReview and replacement of rules specifying performance measures
34Schedule 1AA amended
35Schedule 3 amended
36Schedule 4 amended
36ASchedule 5 amended
36BSchedule 7 amended
37Schedule 8 replaced
38Schedule 10 amended
38ASchedule 13A amended
Part 2
Amendments to other enactments
Amendment to Income Tax Act 2007
38BNew section CW 39B inserted (Council-controlled organisations: tax exempt status for core services)
CW 39BCouncil-controlled organisations: tax exempt status for core services
Amendments to Local Government (Auckland Council) Act 2009
39Local Government (Auckland Council) Act 2009 amended
39ASection 40 amended (Operating principles)
39BSection 42 amended (Auckland Transport’s status as council-controlled organisation and application of Part 5 of Local Government Act 2002)
39CSection 57 amended (Obligations of Auckland water organisation)
40New section 59A inserted
41Section 97 amended (Disputes about allocation of decision-making responsibilities or proposed bylaws)
42Section 98 amended (Local Government Commission to determine disputes)
43Section 99 repealed (Local Government Commission may delegate duty to determine dispute)
Amendments to other enactments
44Consequential amendments to other enactments
Schedule 1
New Part 2 inserted in Schedule 1AA
Schedule 2
Amendments to Schedule 3
Schedule 3
Amendments to Schedule 4
Schedule 4
Schedule 8 replaced and new Schedules 8A and 8B inserted
Schedule 4A
Amendments to Schedule 10
Schedule 5
Consequential amendments to other enactments
Legislative history

The Parliament of New Zealand enacts as follows: