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Water Services Entities Bill
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Hon Nanaia Mahuta
Water Services Entities Bill
Government Bill
136—1
Contents
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
The Parliament of New Zealand enacts as follows: