Amendments in Schedules 1 to 17
Organisation of amendments
The amendments set out in Schedules 1 to 17 are arranged by Ministerial portfolio. This approach has been taken to facilitate consideration of the Bill by select committee and the House.
Schedule 1: Biosecurity
Part 1: Amendment to Biosecurity Act 1993
Clause 1 provides that Part 1 amends the Biosecurity Act 1993 (the Act).
The declaration of a restricted place under section 130 of the Act requires physical service. The amendment will allow for notice of the declaration to be delivered by fax or email or by post, in accordance with the procedure for giving directions or making requirements set out in section 164A.
Clause 2 inserts new section 130A into the Act to modify section 130 while the Epidemic Preparedness (COVID-19) Notice 2020 (the epidemic notice) is in force. New section 130A draws on the procedure in section 164A of the Act for giving directions or making requirements under the Act. New section 130A(2) provides that a notice declaring a place to be a restricted place may be given in accordance with section 164A(1), thus including delivery of the notice by fax or email which is unavailable under section 130. New section 130A(3) allows notice to be given by serving a copy on, or by delivering a copy of the notice to, the occupier of a place included in the area of the restricted place, in accordance with section 164A(1). If the occupier cannot be found quickly, with reasonable diligence, new section 130A(4) allows the notification process that is provided in section 164A(2) to be used. New section 130A(5) states that section 164A(3) applies to a written notice that is delivered by post, providing a deemed time when the notice is given or made. New section 130A(6) repeals new section 130A when the epidemic notice expires or is revoked.
Part 2: Amendment to National Animal Identification and Tracing Act 2012
Clause 3 provides that Part 2 amends the National Animal Identification and Tracing Act 2012 (the Act).
This amendment will allow for the service of infringement notices under the Act by more expedient means and reduce health risks to enforcement officers and those being served with the notices.
Infringement notices can currently only be sent via post, which requires the notice to be printed and posted. Emailing the notice is more expedient and will result in less risk for staff (from travel and potential contact with other people) and also for couriers and those being served with notices.
Clause 4 inserts new clause 22A into Schedule 2 of the Act to modify clause 22 of that Schedule while the epidemic notice is in force. New clause 22A(2) allows an infringement notice or a cancellation notice referred to in clause 22(5) to be served by sending it by email or other electronic means to the person, instead of by personal delivery or service by post, as required by clause 22. New clause 22A(3) modifies clause 22(6) to provide, for the purposes of the Summary Proceedings Act 1957, a deemed time of service for an infringement notice or cancellation notice served by sending it by email or other electronic means: the notice is treated as being served on the person at the time the email or other electronic communication first enters an information system that is outside the control of the NAIT officer or NAIT authorised person. New clause 22A(4) repeals new clause 22A when the epidemic notice expires or is revoked.
Schedule 2: Commerce and Consumer Affairs
Part 1: Amendment to Commerce Act 1986
Clause 1 provides that Part 1 amends the Commerce Act 1986 (the Act).
Clause 2 amends the Act to provide, for the duration of the epidemic notice and for the 6 months after the expiry or revocation of the notice, for the following:
The Commerce Commission can grant an authorisation for a contract, arrangement, or understanding that may contain a cartel provision. The Commission would have to be satisfied that the contract, arrangement, or understanding will result, or be likely to result, in such a benefit to the public that it should be authorised.
In relation to an application for an authorisation for a contract, arrangement, or understanding that may contain a cartel provision, or an application made under section 58(1) or (2) of the Act, the Commerce Commission can—
waive the application fee:
determine the application without the usual intermediate step of a draft determination:
grant a provisional authorisation (for example, for the purpose of enabling due consideration to be given to the application).
Part 2: Amendments to Companies Act 1993
Clause 4 provides that Part 2 amends the Companies Act 1993 (the Act).
Subpart 1: Voidable transactions; “safe harbour”
relating to 2 directors’ duties
The amendments in subpart 1 relate to—
voidable transactions in the liquidation of a company or other body corporate to which Part 16 of the Act applies. Similar amendments are also made by this Bill to the provisions in the Insolvency Act 2006 relating to insolvent transactions and charges in bankruptcy:
establishing a “safe harbour”
in respect of 2 directors’ duties for directors of companies affected by COVID-19 (see clause 6). The detailed safe harbour provisions are set out in new Schedule 12 (inserted by clause 11).
Clause 5 expands the definition of director for the purposes of sections 292 and 293 of the Act (which relate to voidable transactions) and the definition of related party in new section 291A.
Clause 6 inserts new section 138B, which establishes the safe harbour provision in new Schedule 12 (inserted by clause 11). New section 138B and new Schedule 12 are repealed on the close of 31 May 2022.
Clause 7 inserts new section 291A, which applies for the purposes of sections 292 and 293 of the Act. New section 291A—
defines who is related to (and a related party of) a company; and
contains the timing rules for determining whether a person is a related party of a company in relation to a transaction or charge. Generally, if a person is related to a company at the time of the making or giving of a transaction or charge, the person is a related party of the company in relation to the transaction or charge (see new section 291A(2)). However, new section 291A(2) is subject to new section 291A(3), which applies in the case of transactions referred to in section 292(4B)(a).
Clause 8 amends section 292 of the Act. Currently, under section 292, transactions that are insolvent transactions and that are entered into by a company within 2 years of liquidation commencing are voidable by the liquidator. The amendments made by clause 8 reduce the 2-year period to 6 months unless the transaction is with a related party of the company (in which case the 2-year period remains).
Clause 9 makes similar amendments to section 293 to reduce the 2-year period to 6 months in relation to voidable charges given to persons who are not related parties of a company.
Clause 10 inserts new Part 3 into Schedule 1AA of the Act, which contains transitional, savings, and related provisions. The effect of the new Part is that the changes made to the 2-year periods in sections 292 and 293 of the Act will not apply to liquidations that commence before these changes come into force.
Clause 11 inserts new Schedule 12 into the Act, which contains the detailed provisions of the “safe harbour”
.
Subpart 2: COVID-19 business debt hibernation scheme
Clause 12 inserts new sections 395A and 395B.
New section 395A establishes a business debt hibernation scheme (BDH). The scheme applies to companies and other entities (including partnerships, limited partnerships, incorporated societies, and other bodies).
New section 395B allows regulations to be made relating to BDH. For example, regulations may provide that BDH does not apply to larger entities.
The detailed provisions of BDH are set out in new Schedule 13 (inserted by clause 13).
Part 3: Amendments to Consumers’ Right to Know (Country of Origin of Food) Act 2018
Clause 15 provides that Part 3 amends the Consumers’ Right to Know (Country of Origin of Food) Act 2018 (the Act).
Clause 16 replaces section 5(6) of the Act. Section 5 of the Act requires the Minister of Commerce and Consumer Affairs to recommend the making of regulations (under section 27 of the Fair Trading Act 1986) prescribing a consumer information standard for the disclosure of a regulated food’s country or place of origin. Existing section 5(6) requires the Minister to make the recommendation as soon as practicable after the commencement of the Act, but no later than 18 months after its commencement, which means before 4 June 2020. New section 5(6) changes the requirement so that the Minister must simply make the recommendation before 4 June 2021, 1 year later than before.
Clause 17 replaces section 6 of the Act. New section 6 provides that the Act is repealed on 4 June 2021, 1 year later than before.
Part 4: Amendment to Contract and Commercial Law Act 2017
Clause 18 provides that Part 4 amends the Contract and Commercial Law Act 2017 (the Act).
Clause 19 inserts new sections 218A to 218D.
New section 218A modifies subpart 3 of Part 4 of the Contract and Commercial Law Act 2017 so that that subpart applies to deeds that create a power of attorney in connection with a security interest. That subpart provides for certain legal requirements relating to documents to be met by electronic means. The effect of the change will be to enable such deeds to be executed remotely without the need for execution in the physical presence of witnesses. New sections 218C to 218D provide for the modification to apply for 6 months initially with the possibility of an extension of up to 6 months. The modification can also be ended early in certain circumstances.
Part 5: Amendment to Credit Contracts and Consumer Finance Act 2003
Clause 20 provides that Part 5 amends the Credit Contracts and Consumer Finance Act 2003 (the Act).
Clause 21 amends section 9H of the Act. The Responsible Lending Code is issued under the Act. Its purpose is to elaborate on lender responsibility principles specified in section 9C(2) of the Act and to offer guidance on how those principles may be implemented by lenders. The effect of section 9H of the Act is that any changes to the Code cannot come into force sooner than 28 days after the changes are notified in the Gazette. In order to give effect to urgent updates to the Code over the next three months, clause 14 amends section 9H with the effect that changes to the Code that are notified in the Gazette on or before 14 August 2020 can come into effect sooner than 28 days after they are notified in the Gazette. After 14 August 2020, the 28-day requirement will apply again.
Part 6: Amendment to Financial Markets (Derivatives Margin and Benchmarking) Reform Amendment Act 2019
Clause 22 provides that Part 6 amends the Financial Markets (Derivatives Margin and Benchmarking) Reform Amendment Act 2019 (the Act).
Part 2 of the Act relates to financial benchmarks. The effect of section 2(4) of that Act is that Part 2 will come into force on a date appointed by Order in Council or, if no Order in Council is made bringing it into force sooner, on 30 August 2020 (the backstop date). Clause 23 amends section 2(4) to defer the backstop date to 30 August 2021. This means that Part 2 will come into force on a date appointed by Order in Council or, if no Order in Council is made bringing it into force sooner, on 30 August 2021.
Part 7: Revocation of Financial Services Legislation Amendment Act Commencement Order 2019
Clause 24 revokes the Financial Services Legislation Amendment Act Commencement Order 2019 (the commencement order). Under section 2 of the Financial Services Legislation Amendment Act 2019 most of the provisions of that Act commence on a date appointed by Order in Council or on 1 May 2021. The commencement order appointed 29 June 2020 as the date on which those provisions come into force. The effect of clause 24 is that the provisions will now come into force on 1 May 2021 unless brought into force sooner by another Order in Council.
Part 8: Amendments to Insolvency Act 2006
Clause 25 provides that Part 8 amends the Insolvency Act 2006 (the Act).
The amendments in Part 8 relate to insolvent transactions and charges in bankruptcy. Similar amendments are also made by this Bill to the provisions in the Companies Act 1993 relating to voidable transactions and charges in liquidation.
Clause 26 inserts new section 193A, which applies for the purposes of subpart 7 of Part 3 of the Act (Irregular transactions before adjudication). New section 193A—
defines who is related to (and a related party of) a bankrupt; and
contains the timing rules for determining whether a person is a related party of a bankrupt in relation to a transaction or charge. Generally, if a person is related to a bankrupt at the time of the making or giving of a transaction or charge, the person is a related party of the bankrupt in relation to the transaction or charge (see new section 193A(2)). However, new section 193A(2) is subject to new section 193A(3), which applies in the case of transactions referred to in section 197(a).
Clause 27 amends section 194 of the Act. Currently, under section 194, transactions that are insolvent transactions and that are entered into by a bankrupt within 2 years of bankruptcy commencing are voidable by the Official Assignee. The amendments made by clause 27 reduce the 2-year period to 6 months unless the transaction is with a related party of the bankrupt (in which case the 2-year period remains).
Clause 28 makes similar amendments to section 198 to reduce the 2-year period to 6 months in relation to insolvent charges given to persons who are not related parties of the bankrupt.
Clauses 29 to 31 make consequential amendments to sections 199, 201, and 203 of the Act.
Clause 32 inserts a new Part into Schedule 1AA of the Act, which contains transitional, savings, and related provisions. The effect of the new Part is that the changes made to the 2-year periods in subpart 7 of Part 3 of the Act will not apply to bankruptcies that commence before these changes come into force.
Part 9: Amendment to Insolvency Practitioners Regulation Act 2019
Clause 33 provides that Part 9 amends the Insolvency Practitioners Regulation Act 2019 (the Act).
Currently, section 2(3) of the Act ensures that all provisions of the Act will commence by 17 June 2020 (the backstop date), if not brought into force earlier by Order in Council. Clause 34 defers the backstop date to 1 June 2021.
Part 10: Amendment to Insolvency Practitioners Regulation (Amendments) Act 2019
Clause 35 provides that Part 10 amends the Insolvency Practitioners Regulation (Amendments) Act 2019 (the Act).
Currently, section 2(3) of the Act ensures that all provisions of the Act will commence by 17 June 2020 (the backstop date), if not brought into force earlier by Order in Council. Clause 36 amends section 2(3) to defer the backstop date to 1 June 2021.
Schedule 3: Commerce and Consumer Affairs: new Schedule 12 inserted into Companies Act 1993
New Schedule 12 contains the detailed provisions of the “safe harbour”
relating to 2 directors’ duties. Broadly,—
the schedule applies to actions and omissions of directors of companies. However, it does not apply to directors of some companies including registered banks or licensed insurers. It does not apply to directors of companies incorporated on or after 25 March 2020. Regulations may also affect the schedule’s application. See new clauses 3 and 8:
for companies incorporated before 1 January 2020, in order for the schedule to apply the company must have been able to pay its debts as they became due in the normal course of business as at 31 December 2019 (or, if regulations prescribe a new safe harbour period, any later date prescribed by the regulations):
if the schedule applies, it applies during a safe harbour period. The initial safe harbour period starts on 3 April 2020 and ends with the close of 30 September 2020. Regulations may extend this period (to end no later than the close of 31 March 2021). Regulations may prescribe a new safe harbour period, of no more than 6 months, that ends no later than the close of 30 September 2021. See new clauses 4 and 9:
if the schedule applies, it applies to directors who hold various opinions in good faith at certain times. The opinions relate to whether the company has, or is likely to have, significant liquidity problems as a result of the effects of COVID-19 and whether the company is more likely than not to be able to pay its due debts on and after 30 September 2021 (or a later date set by regulations). See new clauses 5 and 6:
new clause 5 relates to section 135 of the Act (reckless trading) and provides for protection for a director who holds the required opinions in good faith at the time of agreeing to the business of the company being carried on in any manner, or causing or allowing the business of the company to be carried on in any manner, during a safe harbour period:
new clause 6 relates to section 136 of the Act (duty in relation to obligations) and provides for protection for a director who holds the required opinions in good faith at the time of agreeing to the company incurring an obligation. Both the incurring of the obligation by the company, and the director’s agreement to that, must occur in the safe harbour period:
a person who wishes to rely on a provision of new Schedule 12 in a proceeding for, or in relation to, a breach of section 135 or 136 has the burden of proving that the provision applies (see new clause 7).
Schedule 4: Commerce and Consumer Affairs: new Schedule 13 inserted into Companies Act 1993
Part 1 of new Schedule 13 provides for preliminary matters. In summary,—
the purposes of BDH are to provide for the business, property, and affairs of an entity that is facing significant liquidity problems, or an entity that may in the future face such problems, because of the effects of the outbreak of COVID-19 to operate in a way that maximises the chances of the entity continuing in existence or, if that is not possible, results in a better return for the entity’s creditors and members than would result from an immediate liquidation of the entity:
the schedule applies to companies and a wide range of entities. However, it does not apply to various entities including registered banks or licensed insurers. It also does not apply if the entity is already in liquidation, in voluntary administration, in receivership, or subject to statutory management:
various important terms used in the schedule are defined in clause 4.
Part 2 of new Schedule 13 provides for how an entity may first enter into BDH. In summary,—
the board of an entity may agree to the entity entering into BDH if,—
as at 31 December 2019, the entity was able to pay its debts as they became due; and
at least 80% of the directors of the entity agree; and
those directors each make a statutory declaration that sets out various opinions that are made in good faith. The opinions relate to whether the entity has, or is likely to have, significant liquidity problems as a result of the effects of COVID-19 and the entity is more likely than not to be able to pay its due debts on and after 30 September 2021 (or a later date set by the regulations made under new section 395B); and
the directors are acting in good faith:
the entity enters into BDH (and receives the benefit of the protections in Part 5 of new Schedule 13) when it delivers to the Registrar a notice under new clause 6 of that schedule:
a copy of the notice must be sent to each known creditor. The notice sent to creditors must include various information, including a high-level description of a proposed arrangement to address the entity’s liquidity problems:
the initial period of protection lasts for 1 month. During that period, the entity must develop the proposal for the arrangement with its creditors and send a notice to those creditors. The notice includes a request that the creditors vote on a resolution to approve the proposed arrangement (the resolution). The protections of BDH will cease after 1 month unless the creditors vote to approve the arrangement.
Part 3 of new Schedule 13 provides for when the protections in Part 5 of new Schedule 13 apply as follows:
the protections start to apply (and the entity enters into BDH) when the entity has delivered to the Registrar a notice under new clause 6 of that schedule:
the protections may cease to apply after 1 month. However, if the arrangement is approved by the creditors under new clause 22 of that schedule, the protections last for a further 6 months:
the protections may cease to apply in various circumstances, including if the entity fails to—
comply with conditions of the approval; or
send new declarations about its situation on request from a creditor:
the protections may also cease to apply if the entity subsequently becomes subject to a compromise or enters into voluntary administration:
after the initial 1-month period, the protections do not apply in relation to a secured creditor that has a charge over the whole, or substantially the whole, of the property of the entity:
the protections do not apply to salary or wages owed to employees or to a debt that was incurred on or after the date on which the entity delivers a notice to the Registrar under new clause 6 of that schedule (excluded debts).
Part 4 of new Schedule 13 provides for the process for obtaining approval of a proposed arrangement and the effects of the arrangement as follows:
approval needs a majority in number and value of the creditors to vote in favour:
the votes of creditors that are related to the entity must be disregarded (unless the court orders otherwise):
the board of the entity must ensure that the creditors are notified of the result of the vote. The board must also deliver to the Registrar a notice of the outcome:
the arrangement that is approved by the creditors is binding on the entity and on all creditors to whom notice was sent under new clause 9 of that schedule:
clause 29 of that schedule sets out some restrictions on the effect of an arrangement. In particular, an arrangement is narrower in scope than a compromise under Part 14 of the Companies Act 1993 (the Act):
the court is given various powers. In particular, the court may order that a creditor is not bound by an arrangement if it is satisfied that, for example, there was some material irregularity in obtaining approval of the arrangement or a creditor who voted against the arrangement is unfairly prejudiced by it.
Part 5 of new Schedule 13 sets out the protections of BDH. In summary (and subject to Part 6 of that schedule),—
a mortgage or other charge over the entity’s property is unenforceable:
an owner or a lessor must not recover property used by the entity:
a proceeding in a court, tribunal, or arbitral tribunal must not be begun or continued against the entity:
enforcement processes against the entity are halted:
court officers have certain duties in relation to the entity’s property:
the protections do not trigger the enforcement of a guarantee of liability given by a director or member of the entity or a relative of the director or member.
Part 6 of new Schedule 13 protects certain rights of secured creditors and owners or lessors of property that is used or occupied by, or in the possession of, the entity.
Part 7 of new Schedule 13 provides that the voidable transaction provisions in sections 292 to 296 of the Act, and the prejudicial disposition provisions in subpart 6 of Part 6 of the Property Law Act 2007, do not apply to a transaction by an entity if—
the transaction is carried out by the entity during the protection period or is specifically authorised under an arrangement that has been approved under new clause 22 of that schedule; and
the transaction is entered into by all the parties in good faith and on arm’s length terms.
Part 8 of new Schedule 13 provides for meeting procedures if a meeting of creditors is held.
Part 9 of new Schedule 13 provides for miscellaneous matters, including—
how notices must be sent to creditors:
that acting under the schedule may not be used as evidence that an entity is unable to pay its due debts or is otherwise insolvent:
that an entity that wishes to rely on a protection in Part 5 of that schedule in a proceeding has the burden of proving that the protection applies:
that the Registrar of Companies must register or publicly notify information about certain notices delivered under the schedule:
that the schedule does not prevent a subsequent compromise for, or voluntary administration of, the entity.
Schedule 5: Corrections
Clause 1 provides that Schedule 5 amends the Corrections Act 2004 (the Act).
Clause 2 inserts new section 139A into the Act, which applies while the epidemic notice is in force. New section 139A enables the use of audio links instead of audiovisual links by persons participating in any hearing or application under sections 133 to 138 of the Act.
However, the hearing adjudicator or visiting justice must be satisfied that the use of audio links rather than audiovisual links is not contrary to the interests of justice. This change is to cater for the fact that access to audiovisual links is more constrained during the period while the epidemic notice is in force.
Schedule 6: Courts
Part 1: Amendment to Coroners Act 2006
Clause 1 provides that Part 1 amends the Coroners Act 2006 (the Act).
New section 21B of the Act provides that while the epidemic notice is in force, and for a period of 30 days after that notice expires or is revoked, a preliminary inspection of a body performed under section 21A of the Act must also include the taking and testing of nasopharyngeal and oropharyngeal swabs in any case where the deceased is suspected to have had COVID-19 at the time of death. New section 21B further provides that it is repealed 31 days after the date that the epidemic notice expires or is revoked.
Part 2: Amendments to Courts (Remote Participation) Act 2010
Clause 3 provides that Part 2 amends the Courts (Remote Participation) Act 2010 (the Act).
Clause 4 inserts new section 7A into the Act. New section 7A enables the use of audio links (AL) instead of audiovisual links for participation in civil proceedings while the epidemic notice is in force. A judicial officer or Registrar may determine that audio links be used instead of audiovisual links if the judicial officer or Registrar—
would otherwise determine that audiovisual links be used for participation in civil proceedings; and
considers the criteria in section 5 in determining whether the use of AL in the circumstances would be appropriate; and
determines that the use of AL would not be contrary to the interests of justice.
This change addresses the constraints on participants’ access to audiovisual equipment that exist while the epidemic notice is in force.
Clause 5 inserts new section 8A into the Act. New section 8A enables the use of audio links instead of audiovisual links for participation in criminal procedural and sentencing matters while the epidemic notice is in force. Where the appearance of the defendant in person is not required in a procedural or sentencing matter, a judicial officer or Registrar may determine that audio links be used instead of audiovisual links if the judicial officer or Registrar—
would otherwise determine that audiovisual links be used for participation; and
considers the criteria in sections 5 and 6 in determining whether the use of AL in the circumstances would be appropriate; and
determines that the use of AL would not be contrary to the interests of justice.
This change addresses the constraints on participant’s access to audiovisual equipment that exist while the epidemic notice is in force.
New sections 7A and 8A are repealed on the expiry or revocation of the epidemic notice.
Part 3: Amendments to Epidemic Preparedness Act 2006
Clause 6 provides that Part 3 amends the Epidemic Preparedness Act 2006 (the Act).
Clause 7 inserts new section 4A into the Act, which indicates that transitional, savings, and related provisions are set out in new Schedule 1 (inserted by clause 9).
Clause 8 inserts new section 27 into the Act, which states that provisions regarding COVID-19 are set out in new Schedule 2 (inserted by clause 9). New section 27 provides for the repeal of new section 27 and new Schedule 2 by 31 October 2021.
Clause 9 inserts new Schedules 1 and 2 into the Act. New Schedule 1 creates a place for transitional provisions, and sets out one relating to new Schedule 2. New Schedule 2 provides that courts, including tribunals, may, in relation to proceedings, extend or shorten the time permitted for doing an act or taking a step because of the effects of COVID-19.
Schedule 7: Customs
Clause 1 provides that Schedule 7 amends the Customs and Excise Act 2018 (the Act). The amendments are necessary in order to delay the revocation of the Customs Import Prohibition Order 2017 and the Customs Export Prohibition Order 2017 (the orders). The orders were made under sections 54 and 56 (respectively) of the Act’s predecessor, the Customs and Excise Act 1996 (the 1996 Act).
The 1996 Act was repealed by section 442 of the Act. However, the orders were continued by clause 7(1) of Schedule 1 of the Act. Under clause 7(2) of Schedule 1 of the Act, orders continued under clause 7(1) are revoked at the time at which they would have expired under the 1996 Act (in the case of the orders, on 30 September 2020).
Ordinarily, new orders would be prepared to replace the orders from 1 October 2020. However, due to the effects of COVID-19, it will not be possible to do this. Accordingly, this schedule amends clause 7 of Schedule 1 of the Act so as to delay the revocation of the orders by 12 months.
Schedule 8: Environment
Clause 1 provides that Schedule 8 amends the Resource Management Act 1991 (the Act).
Clause 2 inserts new section 2AC into the Act to provide that, during the COVID-19 response period, certain documents (as defined) must be made available electronically, in addition to being made available for inspection at the place specified in the Act. Copies of documents may also be purchased at a reasonable cost upon request.
The purpose of the amendment is to ensure that the processes under the Act are able to continue through the COVID-19 response period. During this time, documents may only be accessed electronically due to the COVID-19 physical distancing requirements and the temporary closure of libraries and local authority offices.
The provision applies from 25 March 2020, the date on which the epidemic notice took effect.
New section 2AC is repealed on and from 31 October 2021 to provide sufficient time for the amendment to be considered for inclusion in the Act on a permanent basis through a future amendment.
Clause 3 inserts new section 39AA into the Act. New section 39AA will allow hearings to be held by audio link, audiovisual link, or other remote access facility to enable hearings of any kind under the Act to take place despite the restrictions applying during the COVID-19 response period.
New section 39AA requires hearings to be—
recorded or transcribed and, in either case, published online to enable members of the public to view or review proceedings.
New section 39AA does not apply to meetings held under section 47 of the Local Government Official Information and Meetings Act 1987 as those meetings are already authorised to use AVL technology in accordance with section 47A of that Act for the duration of the epidemic notice.
New section 39AA has retrospective effect to provide for hearings that have been conducted using audio link or audiovisual link since 25 March 2020, the date when the COVID-19 physical distancing restrictions came into effect.
New section 39AA is repealed on and from 31 October 2021 to provide sufficient time for the amendment to be considered for inclusion in the Act on a permanent basis through a future amendment.
Schedule 9: Fisheries
Clause 1 provides that Schedule 9 amends the Fisheries Act 1996 (the Act).
Clause 2 amends section 79 of the Act, which currently provides for the automatic suspension of commercial fishing permits when the total amount of deemed values owed by the fisher exceeds $1,000. New subsection (1A) gives the chief executive a discretion to cease the suspension—
if any of the amount owing became due in the period from 20 April 2020 to 30 September 2021; and
on the condition that the commercial fisher enter into a repayment agreement with the chief executive.
New subsection (1B) ensures that amounts covered by a repayment agreement cannot re-trigger suspension of the licence under subsection (1), unless the commercial fisher fails to pay within the time limit specified in the agreement.
New subsection (2A) ensures that a cessation of suspension under new subsection (1A) is notified to the fisher and recorded on the Permit Register.
New subsection (7) repeals the new subsections, including itself, on 1 October 2021.
Clause 3 amends section 79A of the Act, under which the suspension of fishing permits under section 79 can be extended to related persons. New subsection (7A) ensures that a cessation of suspension under new section 79(1A) can also extend to related persons. New subsection (10) repeals new subsection (7A), and itself, on 1 October 2021.
Clause 4 inserts new Part 2 (containing new clause 2) into Schedule 1AA of the Act, which contains transitional, savings, and related provisions. When the new provisions inserted into section 79 by new clause 2 of Schedule 9 are repealed, some repayment agreements may still be in force. The new clause 2 added to the transitional schedule ensures that the necessary consequential amendments to section 79 continue to apply in respect of a repayment agreement until the amounts to which it relates have been paid in full.
Schedule 10: Food Safety
Clause 1 provides that Schedule 10 amends the Food Act 2014 (the Act).
Clause 2 amends Schedule 4 of the Act, which contains miscellaneous provisions relating to registration. Clause 3 of Schedule 4 currently requires registrations to be renewed before they expire. Clause 2 inserts new clause 3A into Schedule 4 to allow registrations to be renewed after they have expired. This exception to the usual rule applies to the registration of a food control plan, the registration of a food business that is subject to a national programme, or the registration of an importer.
New clause 3A—
allows a person whose registration expires during a lockdown period to renew it by paying the renewal fee within 1 month after the lockdown period ends; and
provides a discretion for registration authorities to renew registrations that expire in the 4 weeks immediately following a lockdown, if the renewal fee is paid within 1 month after the expiry date.
New clause 3A provides for its own repeal 2 months after the epidemic notice expires or is revoked.
Schedule 11: Health
Clause 1 provides that Schedule 11 amends the Mental Health (Compulsory Assessment and Treatment) Act 1992. The amendments apply during the response to COVID-19—
to clarify that the use of audiovisual technology is permitted for clinical assessments, examinations, and reviews of patients and proposed patients, and for judicial examinations of patients:
to clarify that Mental Health Review Tribunal reviews can be conducted using remote technology:
to clarify that district inspectors and official visitors are permitted to complete their visitation and inspection duties using remote technology, if the district inspector or official visitor is satisfied that this is appropriate:
to change references to medical practitioner and health practitioner to mental health practitioner and references to medical examination to examination in certain sections to provide more clear and consistent terminology and to facilitate timely assessment of patients and better usage of the health workforce, which is likely to come under pressure during the outbreak of COVID-19.
Schedule 12: Housing
Clause 1 provides that Schedule 12 amends the Unit Titles Act 2010 (the Act).
It is not clear from the provisions of the Act whether members of a body corporate can attend body corporate meetings by audio link or audiovisual link (or whether they have to attend in person). Clause 2 amends section 88 of the Act to clarify that members can attend body corporate meetings (and body corporate committee meetings) by audio or audiovisual link. The amendment will be repealed when the epidemic notice expires or is revoked.
Schedule 13: Internal Affairs
Part 1: Amendment to Fire and Emergency New Zealand Act 2017
Clause 1 provides that Part 1 amends the Fire and Emergency New Zealand Act 2017 (the Act).
Clause 2 amends section 52 of the Act by inserting new subsections (2A) and (2B). Section 52(1)(a) of the Act enables Fire and Emergency New Zealand to prohibit fire in open air in an area if Fire and Emergency New Zealand considers that fire risk conditions exist or are likely to exist in the area and that the prohibition or restriction is necessary or desirable for fire control. New section 52(2A) modifies this provision by enabling Fire and Emergency New Zealand to prohibit the lighting of fires in open air in any area while the epidemic notice is in force. New section 52(2B) repeals itself and new section 52(2A) when the epidemic notice expires or is revoked.
Part 2: Amendment to Gambling Act 2003
Clause 3 provides that Part 2 amends the Gambling Act 2003 (the Act).
Clause 4 inserts new section 4A into the Act, which makes a temporary modification to the definition of remote interactive gambling in section 4(1) of the Act to extend the exemptions from the general prohibition on remote interactive gambling set out in section 9(2)(b) of the Act to include the following class 3 gambling operators:
Countdown Kids Charitable Trust:
National Heart Foundation of New Zealand:
Royal New Zealand Coastguard Incorporated.
Each of those class 3 gambling operators conduct large-scale raffles and rely on face-to-face sales that have been impacted by the outbreak and effects of COVID-19. The effect of new section 4A is that these class 3 operators will be exempt from the prohibition on remote interactive gambling where they offer and receive requests for tickets in a raffle by email or telephone, receive payments for tickets in the raffle via a communication device (for example, online or by telephone), or issue tickets in the raffle electronically, or do a combination of those things. New section 4A is repealed on the close of 31 October 2021.
Schedule 14: Justice
Clause 1 provides that Schedule 14 amends the Property Law Act 2007 (the Act).
Clause 2 inserts new sections 120A to 120E (COVID-19 outbreak extension of remedial period).
New sections 120B to 120E apply to a mortgage over land (new section 120A(1)) in operation in the COVID-19 period (as defined in new section 120A(2)) if—
section 120 applies to the mortgage under sections 75 to 78, 125, and 126; and
the current mortgagor has been in default in that period.
New sections 120B and 120C extend from 20 working days to 40 working days the period (under section 120(1)(c)) within which the current mortgagor must remedy the default or cause it to be remedied.
New sections 120C, 120D, and 120E specify how the extension of that remedial period affects—
existing enforcement action; and
existing and new proceedings.
Clause 3 inserts new sections 129A to 129E (COVID-19 outbreak extension of remedial period).
New sections 129B to 129E apply to a mortgage over goods (new section 129A(1)) in operation in the COVID-19 period (as defined in new section 129A(2)) if—
section 128(1) applies to the mortgage under sections 75 to 78, 135, and 136; and
the current mortgagor has been in default in that period.
New sections 129B and 129C extend from 10 working days to 30 working days the period (under section 129(1)(c)) within which the current mortgagor must remedy the default or cause it to be remedied.
New sections 129C, 129D, and 129E specify how the extension of that remedial period affects—
existing enforcement action; and
existing and new proceedings.
Clause 4 inserts new sections 245A to 245E (COVID-19 outbreak extension of applicable periods).
New sections 245B to 245E apply to a lease (new section 245A(1)) in operation in the COVID-19 period (as defined in new section 245A(2)) if—
section 245 applies to the lease under section 206; and
the rent has been in arrears in that period.
New sections 245B and 245C extend from 10 working days to 30 working days the following applicable periods:
the arrears period in section 245(1)(a):
the notice period in section 245(3)(c).
New sections 245C, 245D, and 245E specify how the extension of those applicable periods affects—
existing enforcement action; and
existing and new proceedings.
Clause 5 repeals the following sections immediately after the expiry of the 6-month period starting on the date on which the Epidemic Preparedness (COVID-19) Notice 2020 expires or is revoked:
new sections 120A to 120E (inserted by clause 2):
new sections 129A to 129E (inserted by clause 3):
new sections 245A to 245E (inserted by clause 4).
Schedule 15: Local Government
Part 1: Amendment to Freedom Camping Act 2011
Clause 1 provides that Part 1 amends the Freedom Camping Act 2011 (the Act).
Clause 2 inserts new section 13A into the Freedom Camping Act 2011. New section 13A will apply in place of current section 13(6) of the Act until new section 13A is repealed on 1 July 2021. The new section will have the effect of postponing the revocation of bylaws that are not reviewed within the specified time frame as a result of the COVID-19 outbreak.
Part 2: Amendments to Local Electoral Act 2001
Clause 3 provides that Part 2 amends the Local Electoral Act 2001 (the Act).
Clause 4 inserts new section 5AA into the Act. New section 5AA provides a temporary definition of public notice that will apply until 1 November 2020. The Act does not currently define this term, but instead relies on the definition in section 29 of the Interpretation Act 1999. The temporary definition aligns with the definitions in other related primary legislation, and also excuses a local authority from publishing a notice in a newspaper if it is not reasonably practicable to do so as a result of the COVID-19 outbreak.
Clause 5 inserts new sections 73AB and 73AC into the Act. New section 73AB allows Orders in Council to be made extending the dates for specified steps in electoral processes to fill extraordinary vacancies in local authorities, or for the conduct of polls, that arise while the epidemic notice is in force. New section 73AC repeals new sections 73AB and 73AC and revokes any orders made under new section 73AB when the epidemic notice expires or is revoked. However, any steps that still need to be taken after any order is revoked may be completed.
Clause 6 inserts new sections 120A to 120C into the Act.
New section 120A makes a change to the voting period for the election underway to fill the current extraordinary vacancy in the Ōtorohanga ward of the Ōtorohanga District Council. The section applies only if a COVID-19 restricted movement period is in existence on the day the section comes into force. The election must take place in a time specified in the clause that is related to the end of the COVID-19 restricted movement period but must not be earlier than 28 May 2020. If any further changes are needed in the future because of further COVID-19 restricted movement periods, the Order in Council mechanism under new section 73AB can be used to make the necessary changes.
New section 120B modifies section 120 of the Act. It allows elections to fill extraordinary vacancies in local authorities to be deferred if these arise while the epidemic notice is in force. This is done by allowing local authority chief executives to defer giving notice of a vacancy to the relevant electoral officer until the chief executive considers it is appropriate to do so but no later than as soon as practicable after the date on which the epidemic notice expires or is revoked.
New section 120C repeals new sections 120A to 120C when the epidemic notice expires or is revoked. However, any steps that still need to be taken under new section 120A or 120B may be completed.
Part 3: Amendments to Local Government Act 2002
Clause 7 provides that Part 3 amends the Local Government Act 2002 (the Act).
Clause 8 inserts new section 5A into the Act. New section 5A provides a temporary definition of public notice that will apply until 1 November 2020, in place of the current definition in section 5(1) of the Act. The temporary definition excuses a local authority from publishing a notice in a newspaper if it is not reasonably practicable to do so as a result of the COVID-19 outbreak.
Clause 9 inserts new sections 83B to 83D into the Act.
Section 83 of the Act sets out a special consultative procedure that a local authority must adopt and use when required under the Act or by other enactments. New section 83B authorises a local authority to use the special consultative procedure with specified modifications. These modifications relate to the timing and manner of consultation steps, and the local authority may use the modified approach if, and only to the extent that, it is satisfied that it is necessary or desirable to support measures taken to contain or mitigate the outbreak of COVID-19 or its effects.
Transitional provisions relating to new section 83B are set out in clause 13.
New section 83C provides that new section 83B does not apply to the use of the special consultative procedure for the long-term plan that the local authority must adopt for the period commencing on 1 July 2021.
New section 83D repeals new sections 83B to 83D on 1 October 2020.
Clause 10 inserts new section 93DA into the Act. Section 93D(4) provides that the consultation document that a local authority uses when consulting about a proposed amendment to its long-term plan must contain a report from the Auditor-General. New section 93DA (which is repealed on 1 August 2020) provides that the consultation document used for amending a local authority’s current long-term plan need not contain the Auditor-General’s report if—
the amendment to the long-term plan is necessary or desirable to support measures taken to contain or mitigate the outbreak of COVID-19 or its effects; and
the local authority is satisfied that obtaining and including the Auditor-General’s report will prevent the authority from amending the long-term plan by 30 June 2020.
Clause 11 inserts new section 94A into the Act. Section 94(1) of the Act provides that a long-term plan must contain a report by the Auditor-General and section 94(2) of the Act provides that an amended long-term plan must contain an Auditor-General report confirming or amending the original report. New section 94A provides that an amended long-term plan amended by using a consultation document that does not contain an Auditor-General’s report due to the operation of new section 93DA need not contain the report required by section 94(2). However, the amended long-term plan must state that the amendment was not audited and state the reasons. This statement must be included in the amended long-term plan immediately before the Auditor-General’s report under section 94(1). Like new section 93DA, new section 94A is repealed on 1 August 2020.
Clause 12 inserts new section 160B into the Act. New section 160B will apply in place of section 160A of the Act until new section 160B is repealed on 1 July 2021. The new section will have the effect of postponing the revocation of bylaws that are not reviewed within the specified time frame as a result of the COVID-19 outbreak.
Clause 13 amends Schedule 1AA of the Act by inserting new Part 4, which contains transitional provisions relating to new section 83B.
New clause 22 applies to a special consultative procedure that commenced before 17 May 2020 and, depending on how far advanced the procedure is, provides whether or not the local authority may use the modifications set out in new section 83B.
New clause 23 makes similar provision for a special consultative procedure that commences before the repeal of new section 83B.
New clause 24 repeals new Part 4 on 1 October 2020.
Part 4: Amendment to Local Government Official Information and Meetings Act 1987
Clause 14 provides that Part 4 amends the Local Government Official Information and Meetings Act 1987 (the Act).
Clause 15 inserts new section 2A into the Act. New section 2A provides a temporary new definition of publicly notified that will apply until 1 November 2020 in place of the current definition in section 2(1) of the Act. The temporary definition excuses a local authority from publishing a notice in a newspaper if it is not reasonably practicable to do so as a result of the COVID-19 outbreak.
Part 5: Amendment to Local Government (Rating) Act 2002
Clause 16 provides that Part 5 amends the Local Government (Rating) Act 2002 (the Act).
Clause 17 inserts new section 5A into the Act. New section 5A provides a temporary new definition of public notice that will apply until 1 November 2020 in place of the current definition in section 5 of the Act. The temporary definition excuses a local authority from publishing a notice in a newspaper if it is not reasonably practicable to do so as a result of the COVID-19 outbreak.
Part 6: Amendment to Waste Minimisation Act 2008
Clause 18 provides that Part 6 amends the Waste Minimisation Act 2008 (the Act).
Clause 19 inserts new section 58A into the Act. New section 58A will apply in place of current section 58(3) of the Act until new section 58A is repealed on 1 July 2021. This amendment is a consequential amendment to the amendment inserting new section 160B into the Local Government Act 2002 (see clause 12). Section 58(3) of the Act applies the bylaw review and revocation requirements in the Local Government Act 2002 to bylaws made under the Act.
Schedule 16: Police
Clause 1 provides that Schedule 16 amends the Arms Act 1983 (the Act).
Clause 2 inserts new section 65I into the Act to extend the duration of existing dealer and firearms licences as, due to the effects of COVID-19, the Police are currently unable to undertake their usual procedures for processing renewal applications. If a licence expired on or before 24 March 2020 and before its expiry the licence holder applied for a new licence, and that application has yet to be determined, the licence is to be treated as continuing in force until that application has been determined (unless the licence is sooner surrendered or revoked). If a licence expires after 24 March 2020 and on or before 25 September 2020, the licence is to be treated as continuing in force for a further 4-month period or, if the licence holder applies for a new licence before the expiry of that extended period, until the licence holder’s application for a new licence has been determined (unless the licence is sooner surrendered or revoked). However, in either case, a licence may not continue in force longer than 12 months after its original expiry date. Any endorsements or conditions on a licence will continue to apply while the licence continues in force. New section 65I is repealed on the close of 25 September 2021.
Schedule 17: Workplace Relations and Safety
Clause 1 provides that Schedule 17 amends the Parental Leave and Employment Protection Act 1987 (the Act).
Clause 2 inserts new Part 3B into the Act. New Part 3B is about workers entitled to parental leave who respond to circumstances related to the outbreak of COVID-19. New Part 3B contains new sections 30JA to 30JR.
New section 30JA provides that new Part 3B is repealed 2 years after the end of the COVID-19 emergency period. That period is defined in new section 30JC and is the period during which New Zealand is responding to the outbreak of COVID-19 (under the Epidemic Preparedness Act 2006).
The reason the amendments are to remain in force for 2 years after the end of the COVID-19 emergency period is because the Act contains rights to parental leave (and payments) for subsequent children. Also, rules in section 42 of the Act relate to how payment is calculated for annual leave accrued while on parental leave. These rights and rules could, potentially, be relevant to a worker for up to 2 years after the COVID-19 emergency period.
New section 30JB allows new Part 3B to apply before it comes into force. That is because the emergency period relating to COVID-19 started on 25 March 2020 (before new Part 3B is to come into force). Workers entitled to parental leave may have returned to work from 25 March 2020, and the policy is to allow workers who are assisting in the response to COVID-19 to be entitled to pause their parental leave payments, and receive them again when they resume parental leave.
New sections 30JC, 30JD, and 30JE set out the definitions for new Part 3B. The key definition is that of COVID-19 response worker. This is a worker who is entitled to parental leave and,—
if employed, has agreed with their employer to temporarily return to work to respond to circumstances related to the outbreak of COVID-19; or
if self-employed, is someone who wants to temporarily return to work for the same reasons.
The worker fulfils the definition if, in circumstances related to the outbreak of COVID-19, their role cannot reasonably be filled by another or there is higher demand than usual for workers doing their role. The way new section 30JD(1) is phrased (speaking of entitlement to parental leave) covers a person taking other paid leave (such as annual leave) before the period of parental leave (as contemplated by section 71K(2) of the Act).
New sections 30JF to 30JL allow COVID-19 response workers to apply to effectively ‘pause’ their parental leave, including all associated payments, rights, and protections, in order to temporarily return to work in response to the outbreak of COVID-19. The effect of this is that the temporary return to work does not end the person’s parental leave entitlement. Under the Act as it currently stands, parental leave payments cease on a return to work.
New section 30JJ provides that the requirement in section 9 of the Act that primary carer leave is taken in 1 continuous period does not apply to a COVID-19 response worker. New section 30JJ provides that the Act applies accordingly so that references to a period of leave must be read as references to periods. An example of such a reference is in section 71K of the Act. The effect of new section 30JJ is that section 71K must be read (in relation to COVID-19 response workers) as referring to periods of parental leave.
New section 30JK provides that the Act’s requirement in sections 71DA(2) (preterm baby payments) and 71J (parental leave payments) that payment be made for 1 continuous period does not apply to a COVID-19 response worker. New section 30JK requires references to a payment period to be read as references to payment periods. Examples of references are in sections 26, 32, and 45 of the Act. The effect of new section 30JK is that those sections must be read (in relation to COVID-19 response workers) as referring to periods of payments.
The temporary return to work for a COVID-19 response worker should be no more than 1 continuous period of 12 weeks. However, Labour Inspectors are given the discretion to allow a longer period if it is reasonable in the circumstances. They are also given the discretion to accept more than 1 temporary return to work if it is reasonable in the circumstances. However, the returns together cannot exceed a period of leave longer than 12 weeks (or any other period allowed by a Labour Inspector). These discretions are created in new section 30JR.
New section 30JQ enables irregularities with an application under new section 30JF to be dealt with in the department’s discretion under section 71IA of the Act. Section 71IA provides for a discretion to approve irregular applications, having regard to the extent of the irregularity (including whether the extent of the irregularity was reasonable in all of the circumstances) and whether the person was acting in good faith. Acceptable situations in which to exercise a discretion include applications made for a return to work that occurred before the commencement of this Bill: see new section 30JQ(d). This allows new Part 3B to apply retrospectively (as empowered under new section 30JB).
A COVID-19 response worker who is entitled to a preterm baby payment is able to make a temporary return to work for COVID-19 response work: new section 30JM. The worker will not receive preterm baby payments in respect of that temporary return, but is entitled to receive them again when on parental leave until the end of what would have been the 36th week of pregnancy.
New section 30JN overrides the effect of section 6 of the Act for COVID-19 response workers. Section 6 prevents parental leave being taken for a subsequent child within 6 months of the end of a previous period of parental leave. The effect of section 6 is overridden if the original period of parental leave that would have applied to the worker (but for the COVID-19 response work) would have finished more than 6 months before parental leave is taken for a subsequent child.
New section 30JO overrides the effect of section 71F of the Act for COVID-19 response workers. This has the effect that COVID-19 response workers do not need to have more than 6 months before parental leave payments for any subsequent children, as long as they would have had more than 6 months between payments but for the COVID-19 response work.
New section 30JP allows regulations to be made under section 73 of the Act prescribing information that must be given in, or documents that must be attached to,—
an application under new section 30JF by a COVID-19 response worker for parental leave payments:
a notice relating to a return to work by a COVID-19 response worker.