Overseas Investment (Urgent Measures) Amendment Bill

  • enacted

Hon David Parker

Overseas Investment (Urgent Measures) Amendment Bill

Government Bill

261—2

Contents

Commentary
Key
1Title
2Commencement
Part 1
Amendments to Overseas Investment Act 2005
3Principal Act
4Section 3 amended (Purpose)
5Section 4 amended (Overview)
6Section 6 amended (Interpretation)
7Section 7 amended (Who are overseas persons)
8Section 8 amended (Meaning of associate and associated land)
9Section 12 amended (What are overseas investments in sensitive land)
10Section 13 amended (What are overseas investments in significant business assets)
11Section 15 amended (Who are relevant overseas persons, and individuals with control, for overseas investments)
12Section 16 amended (Criteria for consent for overseas investments in sensitive land)
13Section 16A amended (Benefit to New Zealand test)
14Section 18 replaced (Criteria for overseas investments in significant business assets)
18Criteria for consent for overseas investments in significant business assets
15New section 18A inserted (Investor test)
18AInvestor test
16Section 19 repealed (Applying good character and Immigration Act 2009 criteria)
17New sections 20A to 20G and cross-heading inserted
Transactions of national interest
20ATransactions that are transactions of national interest
20BOther transactions may be transactions of national interest if notice given
20CConsent may be declined if transaction contrary to national interest
20DWho are critical direct suppliers
20EProvisions relating to unpublished CDS
20FStatus of unpublished CDS confidential
20GWhat are media businesses with significant impact
18Section 23 amended (Requirements for application for consent)
19Section 25A amended (Conditions of consent)
20New section 25C inserted (Automatic condition: every transaction of national interest)
25CAutomatic condition: every transaction of national interest
21Section 31 amended (What regulator does)
22Section 32 amended (Delegation by relevant Minister or Ministers)
23Section 34 amended (Ministerial directive letter)
24Section 36 amended (Regulator may issue guidelines)
25New sections 37A and 37B inserted
37ARegulator must publish list of sensitive adjoining land relating to collective group of Māori
37BTime frames
26Section 38 amended (Regulator may require person who is subject to condition to provide information for monitoring purposes)
27Section 39 amended (Regulator may require any person to provide information for statistical or monitoring purposes)
28Section 40 amended (Regulator may require person who is subject to condition to provide statutory declaration as to compliance)
29Section 41 amended (Regulator may require information and documents to be provided for purpose of monitoring compliance, investigating, and enforcing Act and regulations)
30Section 41G amended (Consequences of disposal or retention of property)
31Section 42 amended (Offence of giving effect to overseas investment without consent)
32Section 43 amended (Offence of defeating, evading, or circumventing operation of Act)
33Section 44 amended (Offence of resisting, obstructing, or deceiving)
34Section 46 amended (Offence of false or misleading statement or omission)
35New sections 46A to 46E and cross-heading inserted
Enforceable undertakings
46ARegulator may accept undertakings
46BWhen undertaking is enforceable
46CNotice of decision
46DWithdrawal or variation of enforceable undertaking
46EProceedings for alleged contravention
36New sections 46F and 46G inserted
46FContravention of enforceable undertaking
46GConsiderations for court orders
37Section 47 amended (Court may order disposal of property)
38Section 48 amended (Court may order person in breach or involved in breach to pay civil penalty)
39Section 49 amended (Court may order mortgage to be registered over land)
40Section 50 amended (Court may order interest to be paid)
41Section 51 amended (Court may order compliance with condition of consent, exemption, or exemption certificate)
42New sections 51AAA to 51AAE inserted
51AAACourt may grant injunction
51AABWhen court may grant restraining injunctions
51AACWhen court may grant performance injunctions
51AADUndertaking as to damages not required by regulator
51AAEPublication under this subpart may be deferred or dispensed with
43Section 51A amended (Person who acquires interest in residential land must make and provide statement)
44Section 51C amended (Conveyancer must obtain and keep statement)
45Section 52 amended (Administrative penalties for late filing)
46Section 54 amended (Address for service)
47Section 54A amended (Notices or other documents given, provided, or served by regulator)
48Section 61 amended (Regulations)
49Section 61B amended (Purpose of exemptions)
50Section 61D amended (Minister may grant individual exemptions)
51Section 61F amended (Other provisions applying to all exemptions)
52New Part 3 inserted
Part 3
National security and public order risks management regime
81Purpose of Part
Subpart 1—Call-in transactions during emergency notification regime
Call-in transactions, etc
82What are call-in transactions and overseas investments covered by emergency notification regime
83Who are relevant acquirers
Review of call-in transactions
84Review of call-in transactions
Notification of call-in transactions
85Requirement to notify
86Exemptions from call-in Measures to ensure emergency notification regime no broader than reasonably necessary
87Requirements for notice of call-in transaction
87Requirements for notification of call-in transaction
Subpart 2—Risk management actions
Direction orders
88Direction orders
89Direction orders may be varied by agreement
90Revocation of direction order
91Interim direction orders
Prohibition orders
92Prohibition orders
Disposal orders
93Disposal orders
Statutory management
94Purpose of statutory management
95Statutory management of person who owns sensitive assets and associates
96Recommendation of Minister
97Statutory management of New Zealand business only
98Date and time of appointment
99Considerations affecting exercise of powers by statutory manager
100Role of regulator in statutory management
101Statutory manager may form body corporate to acquire business of branch of persons not incorporated in New Zealand
102Body corporate formed and registered also subject to statutory management
103Statutory manager may sell vested assets
104Statutory manager may terminate contracts or arrangements posing significant risk to national security or public order
105Application of Corporations (Investigation and Management) Act 1989
106Termination of statutory management
107Effect of termination of statutory management
108Powers to obtain documents and information
109Protection from liability and indemnity
110Expenses of statutory management
111Modifications where person under statutory management is regulated by Reserve Bank
Risk management actions and transactions of national interest
112When risk management actions may be taken in connection with consented transactions of national interest
Subpart 3—Protection of classified information
113Application of subpart
114Classified security information and other terms defined
115Obligation to provide court with access to classified security information
116Court orders
117Appointment of special advocate
118Nomination of person for appointment
119Role of special advocates
120Court may provide access to classified security information to special advocate
121Communication between special advocate and other persons
122Protection of special advocates from liability
123Other matters relating to procedure in proceedings involving classified security information
124Nothing in this subpart limits other rules of law that authorise or require withholding of document, etc
125Ancillary general practices and procedures to protect classified security information
Subpart 4—Miscellaneous provisions
126Power to use and disclose information relevant to managing certain risks
127Regulations regarding transactions of national interest and overseas investments in SIB assets
128Giving effect to and unwinding of call-in transactions
129Minister must publish decisions on call-in transactions and transaction of national interest
53Replacement of emergency notification regime with more permanent call-in regime
54Schedule 1AA amended
55Schedule 2 amended
56Schedule 3 amended
Part 2
Amendments to other Acts
Subpart 1—Amendment to Anti-Money Laundering and Countering Financing of Terrorism Act 2009
57Amendment to Anti-Money Laundering and Countering Financing of Terrorism Act 2009
58Section 140 amended (Power to use and disclose information supplied or obtained under other enactments for AML/CFT purposes)
Subpart 2—Amendments to Fisheries Act 1996
59Amendments to Fisheries Act 1996
60Section 57A amended (Interpretation of overseas investment fishing provisions)
61Section 57D amended (What are overseas investments in fishing quota)
62Section 57F amended (Who are relevant overseas persons, and individuals with control, for overseas investments)
63Section 57G amended (Criteria for overseas investments in fishing quota)
Subpart 3—Amendments to Tax Administration Act 1994
64Amendments to Tax Administration Act 1994
65Schedule 7 amended
Schedule
New Parts 3 and 4 inserted into Schedule 1AA of Overseas Investment Act 2005
Legislative history

The Parliament of New Zealand enacts as follows: