Hon Steven Joyce
Government Bill
250—3
As reported from the committee of the whole House
Key
1 Title
2 Commencement
3 Principal Act amended
Part 1Telecommunications service obligations and general matters
Subpart 1—Amendments to principal Act relating to telecommunications service obligations and general matters
4 Interpretation
5 Performance of Commission's functions
6 Application of section 98A of Commerce Act 1986
6A Purpose
6B Deemed TSO instrument
7 New section 71A substituted
71A TSO instrument may specify total amount payable by the Crown
7A Sections 72 and 73 repealed
7B Section 74 substituted
74 Compliance with TSO instrument
8 Variation of TSO instrument or deemed TSO instrument
9 New section 76 substituted
76 When instrument ceases to be TSO instrument
10 New section 77 substituted
77 Notification of TSO instrument
11 New subparts 2 and 2A of Part 3 substituted
Subpart 2—Amounts payable by liable persons to the Crown
Annual procedure for determining amounts payable by liable persons to the Crown
80 Interpretation
81 Subpart does not apply to certain liable persons
82 Liable persons must produce information on qualified revenue
83 Liable persons must produce information for purposes of liability allocation determination
84 Commission to prepare draft liability allocation determination
85 Matters to be included in draft liability allocation determination
86 Conferences on draft liability allocation determination
87 Commission to prepare final liability allocation determination
88 Matters to be included in final liability allocation determination
89 Payment by liable persons to the Crown
General matters
90 Crown use of telecommunications development levy
91 Commission must notify final liability allocation determination before notifying TSO cost calculation determination
91A Annual telecommunications development levy may be reduced by Order in Council
Subpart 2A—TSO charges payable by the Crown
Assessment of compliance
92 Assessment of compliance with TSO instrument
TSO provider may request TSO cost calculation determination
93 TSO provider under TSO instrument without specified amount may request TSO cost calculation determination
94 TSO provider who requests TSO cost calculation determination liable for costs in certain circumstances
94AA Withdrawal of request for TSO cost calculation determination
94A TSO charges deemed to be zero if TSO provider does not request TSO cost calculation determination
Annual procedure for determining TSO charges payable by the Crown
94B Calculations of net cost and auditor's report must be given to Commission
94C Considerations for determining net cost
94D Commission to prepare draft TSO cost calculation determination
94E Matters to be included in draft TSO cost calculation determination
94F Requirements for draft TSO cost calculation determination
94G Conferences on draft TSO cost calculation determination
94H Commission to prepare final TSO cost calculation determination
94I Matters to be included in final TSO cost calculation determination
94J Payment by the Crown to TSO provider
12 Section 99 repealed
13 New section 100 substituted
100 Right of appeal to High Court
14 Commission must include information about deemed TSO instrument in TSO cost calculation determinations
15 New section 100BA inserted
100BA Commission must include information about spending of TSO charges paid in relation to deemed TSO instrument
16 Duties of Commission in complying with section 100B
17 New section 101 substituted
101 Regulations
17A New section 101A inserted
101A Review of local service TSO arrangements
17B New subpart 3 inserted relating to multi-unit complexes
Subpart 3—Access to multi-unit complexes to which fibre-to-the-premises is to be deployed
155A Overview
155B Interpretation
Statutory right of access to multi-unit complexes
155C Nature of statutory right of access to multi-unit complexes
155D Preconditions before statutory right of access to multi-unit complexes may be exercised
155DA How statutory right of access to multi-unit complex must be exercised
Process
155E Requirements in respect of preliminary notice
155F Opting out of providing access under subpart
155G Requirements in respect of second notice
155H Access orders from District Court
Code
155I Preparation of Code
155J Approval and status of Code
Consumer complaints system
155K Compliance with rules and binding settlements
155L Offence to fail to comply with District Court order
18 Application of section 156B
18A New section 157AA inserted
157AA Minister must review regulatory framework
19 Further amendments to principal Act
20 New Schedule 3B inserted
Subpart 2—Savings and transitional issues
21 Savings provision for financial years up to and including 2009/10 financial year
22 Transitional provision concerning liability allocation determination for 2010/11 financial year
23 Transitional provision concerning information about deemed TSO instruments to be included in TSO cost calculation determinations
Part 1AStructural separation of Telecom
Subpart 1—Preparation for separation of Telecom
23A Interpretation of this subpart
Approval of asset allocation plan
23B Preparation of asset allocation plan
23BA Updating of asset allocation plan before approval
23C Decision of Minister concerning approval of asset allocation plan
23D Variation of asset allocation plan
23E Asset allocation plan approved by Order in Council
23F Telecom must make overview of asset allocation plan publicly available
23FA Telecom must update Minister and overview on day before separation day
23G Demerger must be in accordance with asset allocation plan
Approval of Chorus undertakings
23GAA Minister must consider purposes in section 69U
23GA Chorus must submit undertakings for approval by Minister
23GB Minister may approve or decline to approve undertakings
23GC Approval of amended undertakings
23GD Failure to submit undertakings
Notice of separation day
23GDA Telecom must give notice of separation day and provide information
Approval of proposals for tax purposes
23GDB Proposals may be approved for tax purposes by Orders in Council
Discontinuance of accounting separation
23GDC Section 69ZB repealed
23GDD Miscellaneous provisions relating to Commission's information disclosure requirements
23GDE Pecuniary penalty
23GDF Further penalty may be imposed for continuing breach
Subpart 2—New Part 2A substituted
23H New Part 2A substituted
Part 2AStructural separation of Telecom
Subpart 1—Preliminary provisions
69A Purpose of Part
69B Interpretation
Subpart 2—Monitoring of shared assets, services, and systems
69C Interpretation
69D Meaning of arm's-length
69E Requirements for sharing arrangements
69F Commission must be notified of proposed and final sharing arrangements
69G Obligation to collect and retain information for monitoring purposes
69H Commission's monitoring, investigation, and enforcement powers
69I Commission may give non-compliance notice
69J Process for responding to non-compliance notice
69K Commission may decide on appropriate enforcement action if non-compliance persists
69L Application of pecuniary penalty provisions
69M Injunction may be granted by High Court
69N Minister may grant exemption from application of subpart
Subpart 3—Line of business restrictions
69O No participation in supply of retail services
69P Register of non-retail users
69Q Variations to, and removals from, register
69QA No services above layer 2
69QB No end-to-end services
69R Enforcement of breaches of sections 69O and 69QB
69S Application of line of business restrictions to related parties of Chorus
69T Injunctions may be granted by High Court for certain contraventions
Subpart 4—Undertakings by Chorus
69U Purposes of subpart
69V Overview
69W Interpretation
69X Requirements for undertakings by Chorus relating to supply of certain wholesale telecommunications services
69XA Implementation of Chorus undertakings
69XB Chorus must publish Chorus undertakings
69XC Variation of Chorus undertakings
69XD Termination of Chorus undertakings
69XE Enforcement of Chorus undertakings
Subpart 5—Miscellaneous
Public Works Act 1981
69XF Application of Public Works Act 1981
Resource Management Act 1991 issues
69XG Requiring authority status under Resource Management Act 1991
69XH Designations under Resource Management Act 1991
Restrictive covenants
69XI Certain restrictive covenants
Government Superannuation Fund Act 1956
69XJ Protection of existing members of Government Superannuation Fund
Subpart 6—Taxation consequences of structural separation
69XK Interpretation in this subpart
69XL Purpose
69XM Depreciation
69XN Tax effect of distribution of ChorusCo shares
69XO Goods and Services Tax Act 1985
69XP Prepayments
69XQ Expenditure or loss incurred, and amounts derived
69XR Bad debts
69XS Unpaid employment expenditure
69XT Vesting of designated assets and liabilities
69XU Revenue account property
69XV Leased assets
69XW Finance leases: financial arrangements rules
69XX Approved issuer levy and administrative status
Subpart 3—Consequential amendments, saving, transitional provisions, and miscellaneous matters
Consequential amendments relating to TSO obligations
23HA Interpretation
23HB Deemed TSO instrument
23HC TSO provider under TSO instrument without specified amount may request TSO cost calculation determination
23HD New sections 94CA and 94CB inserted
94CA Calculations of net revenue and auditor's report must be given to Commission
94CB Considerations for determining net revenue
23HE Matters to be included in draft TSO cost calculation determination
23HF Matters to be included in final TSO cost calculation determination
23HFA Section 95 repealed
23HG Regulations
23HH Application of section 156B
Consequential amendments relating to new Part 2A and general matters
23I Overview
23IA Interpretation
23J Section 69ZB repealed
23K Miscellaneous provisions relating to Commission's information disclosure requirements
23L Declaration made or revoked by notice in Gazette: amendments relating to network operator status
23M Application of section 156B
23N Pecuniary penalty
23O Further pecuniary penalty for continuing breach
23P Interpretation
23Q Interpretation
23R Complaints of breach of enforceable matter
23RA Enforcement by High Court
23S Schedule 1 amended
Transitional provision relating to TSO obligations
23T TSO provider cannot request TSO cost calculation determination under section 93 for financial year in which separation day occurs
Transitional provision relating to shared asset arrangements
23U Minister may grant exemptions in relation to shared asset arrangements
Saving and transitional provisions relating to designated access services
23V Standard terms determinations continue to apply
23W General provision concerning reviews of standard terms determinations for purpose of implementing amendments to Schedule 1 of principal Act
23X Commission must complete reviews of standard terms determinations for certain designated access services before separation day
23Y Commission must make standard terms determination for Chorus's unbundled copper low frequency service before separation day
Further transitional provisions relating to Chorus's unbundled bitstream access service
23Z Certain clauses of standard terms determination do not apply to Chorus's unbundled bitstream access service
23ZA Certain provisions of Part 2 and Schedule 3 of principal Act do not apply in relation to Chorus's unbundled bitstream access service
23ZB Review of standard terms determination for unbundled bitstream access service before expiry of 1 year from separation day
23ZC Party to standard terms determination for Chorus's unbundled bitstream access service may apply for pricing review
23ZD Chorus's unbundled bitstream access prices grandfathered
Miscellaneous
23ZE Operational separation undertakings cease to have effect
Part 2Telecommunications networks involving Crown funding
24 New Part 4AA inserted
Part 4AAServices provided using networks developed with Crown funding: Undertakings regime and Commerce Act 1986 authorisations
156AA Overview
156AB Interpretation
Subpart 2—Undertakings relating to networks developed with Crown funding as part of UFB initiative
156AC Purposes
Requirements for undertakings
156AD Main requirements for undertakings
156AF Minister may determine further requirements for undertakings
156AG Minister must issue and consult on draft determination
156AH Procedural requirements for determination
Process for submission and consideration of undertakings
156AJ LFC must submit undertaking for approval by Minister
156AK Minister may approve or decline undertaking
Implementation of undertakings
156AL Implementation of undertaking
156AM LFC must publish undertaking
Variation and termination of undertakings
156AN Variation of undertaking
156AO Procedure for variation of undertaking
156AOA Clarification of undertaking
156AQ Termination of undertaking
156AQA Effect of UFB partner terminating contract with the Crown
Effect of undertakings in relation to certain relevant services
156AR Commission may not recommend certain services be designated services or specified services if undertaking applies
156ARA Commission must not commence investigation into whether services should be added to Schedule 1 before certain time
Effect of undertakings in relation to unbundling of certain services
156AR Commission may not recommend or investigate unbundling of point-to-multipoint layer 1 services
Enforcement of undertakings
156AS Enforcement and remedies under Part 4A
156AT Power of court to grant relief in respect of undertakings
156AU Interrelationship of remedies
Subpart 3—Information disclosure by LFCs with undertakings
156AV Purpose
156AVA Application of subpart
156AW Commission must require disclosure by LFCs
156AX Further powers of Commission relating to information disclosure
156AXA Commission may publish reports, etc, on information collected
Subpart 4—Undertakings relating to networks developed with Crown funding as part of Rural Broadband Initiative
156AY Interpretation of this subpart
156AZ Requirements for undertakings under this subpart
156AZA Application of provisions in subpart 1
Subpart 5—Commerce Act 1986 authorisations in respect of Rural Broadband Initiative
156AZB Restrictive trade practices authorisations in respect of Telecom and Vodafone participation in Rural Broadband Initiative
Subpart 6—Commerce Act 1986 authorisations in respect of Ultra-fast Broadband Initiative
156AZC Interpretation for this subpart
156AZD Restrictive trade practices authorisations in respect of participation in Ultra-fast Broadband Initiative
156AZE Business acquisition authorisations in respect of participation in Ultra-fast Broadband Initiative
25 Application of section 156B
26 Pecuniary penalty
27 Heading to subpart 2 of Part 4A amended
28 Interpretation
29 Complaints of breach of enforceable matter
30 Enforcement by High Court
31 Further amendments to principal Act
Schedule 1 Further amendments to principal Act
Schedule 2 New Schedule 3B inserted
Schedule 2AAmendments to Schedule 1 of principal Act
Schedule 3 Further amendments to principal Act relating to telecommunications networks involving Crown funding
Legislative history
The Parliament of New Zealand enacts as follows: