Water Services Entities Bill

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Hon Nanaia Mahuta

Water Services Entities Bill

Government Bill

136—1

	Explanatory note
1	Title
2	Commencement
	Part 1 Preliminary provisions
3	Purpose
4	Te Tiriti o Waitangi/the Treaty of Waitangi and Te Mana o Te Wai
5	Provisions on Te Tiriti o Waitangi/the Treaty of Waitangi
6	Interpretation
7	Transitional, savings, and related provisions
8	Act binds the Crown
9	Treaty settlement obligations prevail
	Part 2 Water services entities
	Subpart 1—Establishment of water services entities
10	Water services entities established
11	Objectives of water services entities
12	Functions of water services entities
13	Operating principles
14	Duties to provide funding and information
15	Status of water services entities
16	Shares in water services entities
17	Core things water services entities can do
18	Other things water services entities can do
19	Acts must be for purpose of functions
	Subpart 2—Validity of acts
20	Acts in breach of statute are invalid
21	Some natural person acts protected
22	Limits on protection of natural person acts
23	Acts that are not in best interests of water services entity
24	Dealings between water services entities and other persons
25	Interpretation for sections 15 to 24
	Subpart 3—Minister’s role
26	Minister’s role
	Subpart 4—Regional representative groups
	Establishment, role, and decision making of regional representative group
27	Establishment and membership of regional representative group
28	Role of regional representative group
29	Collective duty of regional representative group
30	Decision making by regional representative group
31	Group may regulate its own procedure if none specified
	Appointment of regional representatives
32	Method of appointing territorial authority representatives to regional representative group
33	Method of appointing mana whenua representatives to regional representative group
34	Requirements before appointment as regional representative
35	Validity of regional representatives’ acts
36	Validity of appointments
37	Resignation of regional representatives
	Board appointment committee
38	Regional representative group must appoint board appointment committee
39	Functions of board appointment committee
40	Board appointment committee must prepare board appointment and remuneration policy
	Chairperson and deputy chairperson
41	Appointment of chairperson and deputy chairperson
42	Co-chairpersons and deputy co-chairpersons
	Disputes
43	Disputes between regional representatives
	Official information
44	Application of Local Government Official Information and Meetings Act 1987 to regional representative group
	Subpart 5—Regional advisory panels
	Establishment, role, and decision making of regional advisory panels
45	Establishment and membership of regional advisory panels
46	Role of regional advisory panel
47	Collective duty of regional advisory panel
48	Decision making by regional advisory panel
49	Panel may regulate its own procedure if none specified
	Appointment of regional advisory panel members
50	Method of appointing territorial authority panel members
51	Method of appointing mana whenua panel members
52	Requirements before appointment as regional advisory panel member
	Chairperson and deputy chairperson
53	Appointment of chairperson and deputy chairperson
54	Co-chairpersons and deputy co-chairpersons
	Official information
55	Application of Local Government Official Information and Meetings Act 1987 to regional representative panel
	Subpart 6—Boards of water services entities
	Role, membership, and accountability
56	Board’s role
57	Membership of board
58	Chairperson and deputy chairperson
59	Accountability of board members to regional representative group
	Obligation to hold specified meetings in public
60	Board must hold 2 public meetings each financial year
	Official information
61	Application of Local Government Official Information and Meetings Act 1987 to water services entity
	Appointment, removal, and conditions of board members
62	Method of appointing board members
63	Criteria for appointments by board appointment committee
64	Requirements before appointment as board member
65	Term of office of board members
66	Validity of board members’ acts
67	Validity of appointments of board members
68	Removal of board members
69	Process for removal
70	No compensation for board member’s loss of office
71	Resignation of board members
72	Board members ceasing to hold office
	Collective duties of board
73	Board must act consistently with objectives, functions, operating principles, and statement of intent
74	Collective duties relating to te Tiriti o Waitangi/the Treaty of Waitangi
	Individual duties of board members
75	Duty of board members to comply with relevant legislation
76	Duty of board members to act with honesty and integrity
77	Duty of board members to act in good faith and not at expense of water services entity’s interests
78	Duty of board members to act with reasonable care, diligence, and skill
79	Duty not to disclose information
	Effect of non-compliance with duties
80	Accountability for collective board duties
81	Board member’s liability for breach of collective duty
82	Accountability of board members for individual duties
83	Board member’s liability for breach of individual duty
84	Court actions requiring or restraining board or board members
	Delegation
85	Board’s ability to delegate
86	Powers of delegate
87	Effect of delegation on water services entity or board
88	Revocations of delegations
	Board procedure
89	Board may regulate its own procedure if none specified
	Subpart 7—Constitutions of water services entities
90	Entity must have constitution
91	What constitution must contain
92	Constitution may contain other matters not inconsistent with Act
93	Effect of constitution
94	First constitution of water services entity
95	Process for amending or replacing constitution
96	Minor or technical amendments
	Subpart 8—General provisions relating to regional representatives, regional advisory panel members, and board members
	Qualifications
97	Qualifications of regional representatives, regional advisory panel members, and board members
	Reliance on information and advice
98	When regional representatives, regional advisory panel members, and board members may rely on certain information and advice
	Conflict of interest disclosure rules
99	Water services entity must keep interest registers for entity, regional representative group, and regional advisory panel
100	When person is interested
101	Obligation of board member to disclose interest
102	Obligation of regional representative to disclose interest
103	Obligation of regional advisory panel member to disclose interest
104	What must be disclosed
105	Consequences of being interested in matter
106	Consequences of failing to disclose interest
107	Permission to act despite being interested in matter
108	Permission must be disclosed in annual report
109	Entity may avoid certain acts done in breach of conflict of interest rules
110	What is fair value
111	Onus of proving fair value
112	Effect of avoidance on third parties
	Vacancies in membership
113	Vacancies in membership of board, regional representative group, or regional advisory panel
	Duties to provide funding and information
114	Duties to provide funding and information
	Part 3 Operation of water services entities
	Independence of water services entities
115	Safeguarding independence of water services entities
	Obligation to maintain ownership and control of water services and significant assets
116	Obligation to maintain water services
	Contracting out of water services
117	Contracts relating to provision of water services
118	Joint arrangements for purpose of providing water services
	Employees of water services entities
119	Employment of chief executive
120	Water services entity to be good employer
	Protections from liability
121	Definitions for protections from liability
122	Protections for board members and employees from liabilities of water services entity
123	Immunity from civil liability
124	Indemnities in relation to excluded act or omission
125	Insurance for liability of board member or employee
126	Breach of indemnity and insurance limits
	Dealings with third parties by water services entities
127	Method of contracting
128	Address for service
	Part 4 Financial and accountability matters
	Subpart 1—Government policy statement on water services
129	Minister may issue Government policy statement on water services
130	Purpose and content of Government policy statement
131	Preparation or review of Government policy statement
132	Water services entities to give effect to Government policy statement
133	Amending Government policy statement
134	Obligation to publish and present Government policy statement
	Subpart 2—Regional representative group’s statement of strategic and performance expectations
135	Regional representative group must issue and review, and may replace, statement of strategic and performance expectations
136	Purpose and content of statement of strategic and performance expectations
137	Water services entity to give effect to statement of strategic and performance expectations
138	Obligation to publish statement of strategic and performance expectations
139	Obligation of regional representative group to review board performance
	Subpart 3—Te Mana o te Wai statements for water services
140	Mana whenua may provide Te Mana o te Wai statements for water services
141	Water services entity must respond to Te Mana o te Wai statement for water services
142	Obligation to publish response to Te Mana o te Wai statement for water services
	Subpart 4—Reporting obligations
	Planning: statement of intent
143	Purpose of statement of intent
144	Board must prepare statement of intent
145	Content of statement of intent
146	Board must publish statement of intent
	Planning: asset management plan
147	Board must prepare asset management plan
148	Content of asset management plan
149	Obligation to publish asset management plan
	Planning: funding and pricing plan
150	Board must prepare funding and pricing plan
151	Content of funding and pricing plan
152	Obligation to publish funding and pricing plan
	Planning: infrastructure strategy
153	Board must prepare and adopt infrastructure strategy
154	Content of infrastructure strategy
155	Obligation to publish infrastructure strategy
	Reporting: annual report
156	Obligation to prepare and publish annual report
157	Form and content of annual report
158	Form and content of statement of service delivery performance
159	Annual financial statements
160	Statement of responsibility
161	Audit report
162	Disclosure of payments in respect of board members and employees
163	Information to be prepared in accordance with generally accepted accounting practice
164	Insurance of assets
	Subpart 5—Other provisions for financial management and independence
	Bank accounts
165	Bank accounts of water services entities
	Financial independence
166	Financial independence
	Subpart 6—Accounting records
167	Board must ensure that proper accounting records are kept
	Subpart 7—Borrowing
168	Borrowing in foreign currency
	Part 5 Monitoring
	Subpart 1—Monitor
	Appointment and role of monitor
169	Appointment and role of monitor
	Monitor’s information-gathering power
170	Monitor’s power to request information
171	Good reason for refusing to supply requested information
172	Civil proceedings relating to non-compliance with information request
173	Content of notice
	Subpart 2—Minister’s powers to intervene
174	Meaning of problem for purposes of subpart
	Crown review team
175	Minister may appoint Crown review team
176	Appointment of Crown review team
	Crown observer
177	Minister may appoint Crown observer
178	Appointment of Crown observer
	Crown manager
179	Minister may appoint Crown manager
180	Appointment of Crown manager
	Subpart 3—General provisions applying to Minister’s powers to intervene
181	Application
182	Minister may consult
183	Minister must publish list of matters
184	Minister must have regard to published list
185	Notice of proposed appointment of ministerial body
186	Notice of appointment of ministerial body
187	Information to Minister
188	Final report of ministerial body
189	Remuneration and expenses of ministerial appointees
190	Recovery of expenses from water services entity
191	Minister may terminate appointment of ministerial body or ministerial appointee
192	Protection from liability for ministerial appointees
193	Disclosure of information held by water services entity
194	Decisions and directions of Crown manager remain in force
	Part 6 Miscellaneous provisions
	Subpart 1—Reviews
195	Interim review of governance and accountability arrangements under Act
196	Comprehensive review of water services legislation
197	Reviewer
198	Reviewer’s power to request information
199	Report
200	Repeal of this subpart
	Subpart 2—Rights or interests in water preserved
201	Rights or interests in water preserved
	Subpart 3—Engagement
202	Engagement requirements
	Consumer engagement
203	Consumer forum
204	Consumer engagement stocktake
205	Principles of engagement
	Subpart 4—Regulations
206	Regulations
	Subpart 5—Amendments to other Acts
	Amendments to Goods and Services Tax Act 1985
207	Principal Act
208	Section 2 amended (Interpretation)
209	Section 6 amended (Meaning of term taxable activity)
	Amendments to Income Tax Act 2007
210	Principal Act
211	New section CW 38C inserted (Water services entities)
	CW 38C	Water services entities
212	Section YA 1 amended (Definitions)
	Amendment to Local Government Act 2002
213	Principal Act
214	New section 159A inserted and repealed (Review of water services bylaws may be deferred during transition period)
	159A	Review of water services bylaws may be deferred during transition period
	Amendment to Local Government Official Information and Meetings Act 1987
215	Principal Act
216	Schedule 2 amended
	Amendment to Ombudsmen Act 1975
217	Principal Act
218	Schedule 1 amended
	Amendment to Public Audit Act 2001
219	Principal Act
220	Schedule 1 amended
	Amendment to Public Records Act 2005
221	Principal Act
222	Section 4 amended (Interpretation)
	Schedule 1 Transitional, savings, and related provisions
	Schedule 2 Water services entities and their service areas
	Schedule 3 Preparation of planning documents
	Schedule 4 Divestment proposals

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