“specified application means an application for legal aid made—

• “(a) under section 47 in respect of certain proceedings before the Waitangi Tribunal; or

• “(b) by a patient or proposed patient in respect of proceedings under the Mental Health (Compulsory Assessment and Treatment) Act 1992; or

• “(c) by a care recipient or proposed care recipient in respect of proceedings under the Intellectual Disability (Compulsory Care and Rehabilitation) Act 2003; or

• “(d) in respect of proceedings under the Protection of Personal and Property Rights Act 1988; or

• “(e) by a victim in respect of—

  • “(i) an inquest held by a coroner for the purposes of Part 3 of the Coroners Act 2006; or

  • “(ii) a hearing of the New Zealand Parole Board (other than one in a proceeding specified in section 6(c)(i)) that concerns an offender and is a hearing at which the victim may appear as of right or with the Board’s leave; or

  • “(iii) any victims' claims proceedings; or

• “(f) to enable—

  • “(i) a person to apply for a protection order under Part 2 of the Domestic Violence Act 1995, or an order relating to property under Part 3 of that Act; or

  • “(ii) a person who has applied for an order described in subparagraph (i) to appeal, or respond to an appeal, against the determination of the person's application; or

• “(g) in respect of a proceeding under Part 2 or 3A of the Children, Young Persons, and Their Families Act 1989; or

• “(h) in respect of a proceeding that is specified in section 7(1)(j) to (n) and that involves, or is connected with, the recognition of a person as a refugee or protected person

“user charge means the amount that aided persons are required to pay by section 18A”.

• “(c) proceedings before the New Zealand Parole Board that—

  • “(i) are held under section 27, 65, or 107 of the Parole Act 2002 (which relate to postponement orders, recall orders, and orders under section 107 of that Act); or

  • “(ii) otherwise concern an offender who is entitled, under section 49(3)(c) of the Parole Act 2002, to be represented by counsel in the proceeding:

• “(d) proceedings in the High Court on an application under section 68 of the Parole Act 2002 (which relates to appeals against postponement orders, section 107 orders, and final recall orders).”

• “(2) The Commissioner must refuse to grant legal aid to an applicant whose income or disposable capital exceeds the relevant thresholds maximum level prescribed in regulations, unless the Commissioner is satisfied that there are special circumstances, having regard to—

  • “(a) the likely cost of the proceedings to the applicant; and

  • “(b) the applicant’s ability to fund the proceedings if legal aid is not granted.

• “(2A) However, in the case of an application that comes within any of paragraphs (b) to (d) and (f) to (h) of the definition of specified application in section 4(1), it is sufficient, for the purposes of subsection (2), if the Commissioner has regard to either paragraph (a) or (b) of that subsection.”

• “(3A) The Commissioner may, unless the interests of justice require otherwise, refuse to grant legal aid to an applicant if—

  • “(a) any amount payable by the applicant in respect of a repayment of a previous grant of legal aid is in arrears; and

  • “(b) the application made by the applicant does not come within any of paragraphs (b) to (d) and (f) to (h) of the definition of specified application in section 4(1).”

• “(5) This section is subject to section 16A.”

“16A Use of automated electronic systems for certain grants of legal aid

• “(1) The Commissioner may use an automated electronic system to grant legal aid to a natural person if—

  • “(a) the person requires the grant for proceedings in respect of an offence punishable by a maximum term of imprisonment of not less than 6 months; and

  • “(b) neither the income nor the disposable capital of that person exceeds the relevant maximum level prescribed in the regulations.

  “(2) A grant made in the manner authorised by subsection (1) is, for the purposes of this Act, taken to have been made by the Commissioner.

  “(3) Where an error is made in a grant of legal aid made in the manner authorised by subsection (1), the Commissioner may cancel or correct the grant.

  “(4) Subsection (2) is subject to subsection (3).

  “(5) A grant made in the manner authorised by subsection (1) is not subject to any of the conditions referred to in section 18.

  “(6) Every grant made in the manner authorised by subsection (1) must state a maximum grant, which must be the amount prescribed under subsection (7).

  “(7) The Commissioner may from time to time, by notice in the Gazette, specify the amount of the maximum grant for any grant made in the manner authorised by subsection (1).

  “(8) A notice under subsection (7) is a disallowable instrument, but not a legislative instrument, for the purposes of the Legislation Act 2012 and must be presented to the House of Representatives under section 41 of that Act.”

• “(7) This section does not apply to—

  • “(a) applications for legal aid that come within any of paragraphs (a) to (e)(ii) of the definition of specified application in section 4(1); or

  • “(b) applications for legal aid by a person of a class specified in regulations as exempted from the application of this section; or

  • “(c) applications for legal aid in respect of a proceeding of a class specified in regulations as exempted from the application of this section; or

  • “(ca) a grant made in the manner authorised by section 16A(1); or

  • “(d) applications for legal aid by a person who is charged with or convicted of a prescribed offence and to whom section 9(2) does not apply.”

“18A User charge payable by aided person

• “(1) Every grant of legal aid for a civil matter, other than a grant to which subsection (4) applies, is subject to the condition that the aided person pay a user charge of the prescribed amount to the lead provider.

  “(2) The condition relating to the user charge is satisfied once the user charge is paid and no further user charges are payable in respect of the grant to which the condition attaches.

  “(3) The lead provider is authorised to receive the user charge from, or on behalf of, the aided person and may—

  • “(a) decline to provide any services under the grant of legal aid until the user charge under subsection (1) is paid; or

  • “(b) if the user charge has not been paid but any services of that kind have been provided, recover the user charge from the aided person.

  “(4) This section does not apply to—

  • “(a) a grant of legal aid made on a specified application; or

  • “(b) an application for legal aid by a person of a class specified in regulations as exempted from the application of this section; or

  • “(c) an application for legal aid in respect of a proceeding of a class specified in regulations as exempted from the application of this section.

  “(5) A grant of legal aid is also within subsection (4) if it is made on an application for matters referred to in that subsection as well as for other matters.”

• “(c) any interest payable under section 40 in accordance with regulations; and

• “(d) the amount of any expense reasonably incurred by the Commissioner for the purpose of enforcing or securing a debt payable to the Commissioner by the aided person, but only if the expense is of a kind specified by the regulations for the purposes of this paragraph.”

• “(1) An amount payable to the Commissioner as a condition of a grant of legal aid (whether as an interim repayment or a repayment) and any other amount payable to the Commissioner in respect of the grant may be recovered in any court or tribunal of competent jurisdiction as a debt due to the Commissioner.”

“40 Interest on unpaid legal aid debt

• “(1) Subsection (2) applies to any amount that is payable in respect of a grant of legal aid made on or after the commencement of this section (as substituted by section 12 of the Legal Services Amendment Act 2011).

  “(2) An aided person must pay the Commissioner interest, calculated in accordance with, and at the rate or rates prescribed by, the regulations on any debt that is owed, during any period specified in the regulations, by the aided person to the Commissioner in respect of a grant of legal aid.

  “(3) Subsection (4) applies to a debt (a prior debt) that is owed by an aided person to the Commissioner in respect of a grant of legal aid made before the commencement of this section (as substituted by the Legal Services Amendment Act 2012.

  “(4) The Commissioner may, by written notice, require the aided person to pay interest in respect of the prior debt (whether or not the person is in default), and then, as from the date stated in the notice for the purpose, subsection (2) applies to the person and to the prior debt.

  “(5) Despite subsection (2), interest is not payable—

  • “(a) on any interim repayment; or

  • “(b) unless the regulations otherwise provide, on any interest.

  “(6) The interest must be calculated and paid in accordance with the regulations.

  “(7) Subsection (4) does not affect any subsisting requirement under section 40(1) (as in force before the commencement of section 12 of the Legal Services Amendment Act 2011).”

“Deduction notices

“41A Interpretation

• In this section and in sections 41B to 41J, unless the context otherwise requires,—

  “benefit—

  • “(a) means a benefit within the meaning of the Social Security Act 1964; but

  • “(b) does not include—

    • “(i) an orphan's benefit payable under section 28 of the Social Security Act 1964; or

    • “(ii) an unsupported child's benefit payable under section 29 of that Act; or

    • “(iii) a child disability allowance payable under section 39A of that Act; or

    • “(iv) a disability allowance payable under section 69C of that Act

  “deduction notice means a notice issued under section 41B

  “overdue amount means an amount that has become due and payable to the Commissioner and that remains unpaid; and includes—

  • “(a) any part of an amount of that kind; and

  • “(b) an amount of that kind that may not be recovered by civil action in a court of law because of the Limitation Act 2010

  “payment, in relation to a third party, includes payments made, or to be made, by the third party as—

  • “(a) salary or wages:

  • “(b) a retiring allowance or pension or other payment of a similar nature:

  • “(c) a benefit:

  • “(d) weekly compensation under the Accident Compensation Act 2001:

  • “(e) a bonus or an incentive payment:

  • “(f) commission:

  • “(g) consideration for work performed under a contract for services:

  • “(h) repayment of, or interest on, money held by a bank to the credit of an aided person (within the meaning of section 41E(3)

  “third party means the person required to make 1 or more deductions under a deduction notice.

  “Compare: 1957 No 87 ss 2(1), 79

“41B Deduction of overdue amounts

• “(1) This section applies whenever the Commissioner has reminded an aided person in writing of the person's obligation to pay an overdue amount or has taken any other action to obtain payment of the overdue amount.

  “(2) The Commissioner may issue, in writing, a deduction notice requiring a third party to deduct an amount specified in the notice due from any payment that is payable or will become payable by the third party to the aided person, whether that payment will be made—

  • “(a) on the third party's own account; or

  • “(b) in the third party's capacity as an agent or a trustee; or

  • “(c) for any other reason.

  “(3) The Commissioner must specify in the deduction notice—

  • “(a) whether the deduction is to be made as a lump sum or by instalments; and

  • “(b) the time or times by which the amounts deducted must be paid to the Commissioner; and

  • “(c) the date on which the deduction notice takes effect, being a date not earlier than the date on which it was issued.

  “(4) The Commissioner must give the aided person a copy of the deduction notice.

  “(5) A deduction notice is revoked when the Commissioner notifies the third party in writing to that effect or issues a new deduction notice.

  “(6) The Commissioner—

  • “(a) may revoke a deduction notice at any time:

  • “(b) must revoke the deduction notice if satisfied that the overdue amount has been paid.

  “(7) Every deduction notice is subject to sections 41C to 41J.

  “Compare: 1964 No 136 s 86A

“41C Issue of deduction notice to State sector employer

• In any case where an aided person is employed within a department (within the meaning of the State Sector Act 1988), a deduction notice may be issued to the chief executive of that department in respect of any salary or wages payable to the aided person.

  “Compare: 1964 No 136 s 86B

“41D Discharge of obligation

• In any case where a third party deducts, under a deduction notice, any money payable to an aided person, the aided person is, to the extent of the amount deducted, discharged from his or her obligation to pay the overdue amount.

  “Compare: 1964 No 136 s 86C

“41E Deduction notices issued to banks

• “(1) Where the third party is a bank, any money held by the bank to the credit of the aided person is subject to the provisions of section 41B and the amount required to be deducted under the deduction notice is, without prejudice to any other remedies against the aided person or any other person, deemed to be held in trust for the Commissioner and is a debt due to the Commissioner and may be recovered in any court or tribunal of competent jurisdiction.

  “(2) For the purposes of this section, bank means a person carrying on in New Zealand the business of banking, a credit union within the meaning of the Friendly Societies and Credit Unions Act 1982, and a building society within the meaning of the Building Societies Act 1965; but does not include the Reserve Bank of New Zealand established under the Reserve Bank of New Zealand Act 1989 (except in relation to an account maintained by that bank for an employee of the bank).

  “(3) For the purposes of this section, money held by the bank to the credit of the aided person includes money, and any interest on money, that is on deposit or deposited with a bank to the credit of the aided person, whether or not—

  • “(a) the deposit or depositing is on current account:

  • “(b) the money is to be at interest at a fixed term or without limitation of time:

  • “(c) the aided person has made any application to withdraw or uplift the money.

  “(4) For the purposes of this section, money on deposit with a bank is deemed to be to the credit of the aided person if the money—

  • “(a) is held in a joint bank account in the name of the aided person and 1 or more other persons; and

  • “(b) can be withdrawn from the account by or on behalf of the aided person without a signature being required at the time of that withdrawal from, or on behalf of, the other person or persons.

  “Compare: 1964 No 136 s 86D

“41F Making of deductions

• “(1) Any person who makes a deduction under a deduction notice is deemed to be acting—

  • “(a) on the authority of the aided person and any other person concerned; and neither the aided person nor that other person has any claim against the third party or the Commissioner or the Crown in respect of that deduction; and

  • “(b) on behalf of the Commissioner; and, without prejudice to any other remedies against the aided person or any other person, any amount deducted must be held in trust for the Commissioner and is a debt due to the Commissioner and may be recovered in any court or tribunal of competent jurisdiction.

  “(2) A third party must, on request, give the aided person a statement in writing of any amount deducted, and of the purpose for which the deduction was made.

  “Compare: 1964 No 136 s 86E

“41G Offences in relation to deduction notices

• “(1) Every person commits an offence and is liable on conviction to a fine not exceeding $2,000 who—

  • “(a) fails to make any deduction required by a deduction notice; or

  • “(b) fails, after making a deduction, to pay the amount deducted to the Commissioner within the time specified in the notice; or

  • “(c) permits payment to or on behalf of any person, other than the Commissioner, of any amount deemed to be held in trust for the Commissioner under section 41E or 41F.

  “(2) Every employer commits an offence and is liable on conviction to a fine not exceeding $1,000 who dismisses an employee or alters an employee's position in the employer's business or undertaking to the employee's prejudice by reason of a deduction notice having been issued to the employer.

  “Compare: 1957 No 87 s 106A; 1964 No 136 s 86F

“41H Protected earnings

• “(1) Despite anything in sections 41B to 41G, where a deduction notice is issued to an employer of an aided person, the employer must not, in making deductions under the deduction notice, reduce the amount paid to the aided person by way of salary or wages in respect of any week to an amount that is less than 60% of the amount calculated as being the aided person's net ordinary weekly pay for a week.

  “(2) For the purposes of this section, the aided person's net ordinary weekly pay for a week is the balance left after deducting from the aided person's ordinary weekly pay (as defined in section 8 of the Holidays Act 2003) the amount of tax required to be withheld or deducted in accordance with the PAYE rules of the Income Tax Act 2007 if that ordinary weekly pay were the only salary or wages paid to the aided person by the employer in respect of a week.

  “(3) For the purposes of this section, where deductions are required to be made from a payment of a kind described in any of paragraphs (b) to (d) of the definition of payment in section 41A, then—

  • “(a) the payment is deemed to be salary or wages; and

  • “(b) the person required to make the payment is deemed to be the employer of the aided person.

  “Compare: 1964 No 136 s 86G

“41I Penalty for late deductions

• “(1) A third party is liable to pay to the Commissioner a penalty calculated in accordance with subsection (2) if the third party fails wholly or in part to—

  • “(a) deduct the amount required by the notice; or

  • “(b) pay any amount deducted under the notice to the Commissioner by the time specified in the notice.

  “(2) The penalty referred to in subsection (1) must be calculated as follows:

  • “(a) 10% of the amount in default or $5, whichever is the greater:

  • “(b) for each additional month or part of a month in which the amount in default or any part of the amount has not been deducted or, as the case may be, has not been paid to the Commissioner, a further penalty of 2% of that amount or part of the amount or $1, whichever is the greater.

  “(3) The Commissioner may, in his or her discretion, remit the whole or part of a penalty if he or she is satisfied that the failure to make the deduction or the payment was due to circumstances reasonably beyond the third party's control, or that, in all the circumstances, the imposition of that penalty would be inequitable.

  “(4) If the Commissioner decides to remit the whole or part of any penalty and any amount of the penalty has been paid under this section, the Commissioner may refund any excess.

  “(5) An amount payable to the Commissioner under subsection (1) is a debt due to the Commissioner and may be recovered in any court or tribunal of competent jurisdiction.

  “Compare: 1964 No 136 s 86I

“41J Notices given to third parties

• The provisions of section 115 apply to a deduction notice given to a third party under section 41B except that if the third party is an agency, such as a business, government department, Crown entity or other instrument of the Crown, the notice may be left at, or posted to, the head office of the agency or to the office of the agency responsible for making the payment to which the deduction notice relates.

  “Compare: 1964 No 136 s 86J”.

“Decisions not to recover debt, write-offs, and refunds”.

• “(2) In assessing the cost of services for the purposes of subsection (1)(b), any interest paid under section 40 must be disregarded.”

• “(1A) A lead provider whose claim has been declined under section 99(5) may apply in the prescribed manner to the Commissioner for a reconsideration of the decision to decline the claim.”

• “(da) any decision to depart from, or to refuse to depart from, fees prescribed by regulations under section 114(1)(cc):”.

• “(3A) A lead provider may apply to the Tribunal for a review of the Commissioner's reconsideration of a decision referred to in section 51(1A) on the ground that it is—

  • “(a) manifestly unreasonable; or

  • “(b) wrong in law.”

“87A Deputy Review Authority

• “(1) A Deputy Review Authority appointed under section 84(2) has the functions, powers, duties, and immunities of the Review Authority and every reference to the Review Authority in sections 85 to 87 and in Part 3 of Schedule 3 is taken to include a reference to a Deputy Review Authority.

  “(2) This section is subject to section 87B.

“87B Scope of functions of Deputy Review Authority

• “(1) A Deputy Review Authority may review decisions only if—

  • “(a) the Review Authority is absent from duty for any reason; or

  • “(b) there is a vacancy in the office of Review Authority; or

  • “(c) the Review Authority has assigned a decision or a class of decision to the Deputy Review Authority in the interests of avoiding—

    • “(i) delay; or

    • “(ii) the perception of, or any actual, conflict of interest or other impropriety.

  “(2) If there are 2 or more Deputy Review Authorities, the Review Authority must nominate 1 Deputy Review Authority (the nominated deputy) to exercise the power under subsection (1)(c) and that nominated deputy may then exercise that power when the Review Authority is absent from duty (for any reason) or when there is a vacancy in the office of the Review Authority.

  “(3) A nomination—

  • “(a) must be in writing; and

  • “(b) is revocable at any time, in writing, by the person who made it or by his or her successor in office; and

  • “(c) until revoked, continues in force according to its terms even if the person who made it has ceased to hold the office of Review Authority.

  “(4) Despite subsection (1), if, during the absence of the Review Authority from duty (for any reason) or a vacancy in the office of the Review Authority, there are 2 or more Deputy Review Authorities, a Deputy Review Authority may review a decision in accordance with subsection (1) only if—

  • “(a) that Deputy Review Authority is the nominated deputy; or

  • “(b) the decision has been, or is part of a class of decision that has been, assigned to that Deputy Review Authority under subsection (1)(c).

  “(5) The fact that a Deputy Review Authority purports to exercise or perform, or to have exercised or performed, any function, duty, or power under this section or under an assignment under subsection (1)(c) or under a nomination under subsection (2) is, in the absence of proof to the contrary, sufficient evidence of the person’s authority to do so.”

• “(4) The Commissioner must decline—

  • “(a) any claim to the extent that it exceeds the maximum grant specified in the grant; and

  • “(ab) where a claim or part of a claim is for, or is determined by the Commissioner to be for, work of a kind for which a fee is prescribed by regulations pursuant to section 114(1)(ca) or authorised pursuant to section 114(1)(cc), so much of that claim as exceeds the fee so prescribed or authorised; and

  • “(b) any claim to the extent to which it is for a disbursement of a type not approved for payment by the Commissioner; and

  • “(c) any claim or any part of a claim that has been determined to be excessive or inaccurate by an examination under subsection (2); and

  • “(d) if the user charge has not been paid by the aided person, an amount of the claim that is the equivalent of that charge.

• “(5) The Commissioner may decline any claim that was not made in accordance with the time frame referred to in section 98.”

• “(c) the provider takes an unauthorised payment from or in respect of a person in relation to any legal aid service or specified legal service provided to that person:”.

• “(5) In any case where a notice of cancellation is posted to a person at the person's last known place of residence or business in New Zealand and the Secretary knows or believes that the address is no longer current, then—

  • “(a) the notice is not invalid merely because of that knowledge or belief; and

  • “(b) the fact that the person has not received the notice is, despite section 115(2), only relevant if it is proved that the failure occurred through no fault of the person.”

• “(ca) prescribing fees, whether by specifying amounts or providing for 1 or more methods of calculating amounts, for items of work undertaken by providers for the purposes of proceedings (other than victims' claims proceedings) described in the regulations, which fees may differ depending on factors stated in the regulations, including, without limitation, 1 or more of the following:

  • “(i) the subject matter of the proceeding:

  • “(ii) the court or tribunal in which the proceeding or an application or a matter in the proceeding is to be determined:

• “(cb) exempting, in accordance with subsection (8), any class of proceeding from any specified regulation made under paragraph (ca):

• “(cc) providing for the Commissioner to authorise fees that depart from the fees prescribed under paragraph (ca) if, and only if, criteria prescribed under paragraph (cd) apply:

• “(cd) prescribing criteria for the purposes of any authorisation that the Commissioner is empowered to give under paragraph (cc):”.

• “(ea) prescribing the amount of the user charge, including different amounts for user charges relating to different classes of proceeding:”.

• “(ia) specifying kinds of expenses or payments for the purposes of section 33(1)(d):”

• “(k) prescribing the way or ways in which the interest under section 40 is to be calculated and, in particular and without limitation, the rate or rates of interest, the periods during which interest accrues, and the circumstances in which, and the intervals at which, interest is compounded:”.

• “(w) prescribing the time frame or time frames in which claims for payment for legal aid services or specified legal services may be made, and different time frames may be prescribed for different classes, stages, or levels of complexity of services provided:”.

“24 Vacation of office

• “(1) The Review Authority may at any time be removed from office by the Minister for incapacity affecting performance of duty, neglect of duty, or misconduct, proved to the satisfaction of the Minister.

  “(2) The Review Authority may at any time resign by written notice to the Minister.

  “(3) The Review Authority ceases to hold office if he or she is adjudged bankrupt under the Insolvency Act 2006.”