Clause 33
In clause 33(2A), replace new section 61(1)(c)(iii) (page 40, line 28) with:
(iii)
requirements about the non-price terms and conditions on which the land must be offered, with the purpose of ensuring that it is offered to the Crown on terms and conditions that are equivalent to those offered to the overseas person—
(A)
to the extent that the offer to the Crown is equivalent to the offer made to the overseas person; and
(B)
subject to the person making the offer choosing to make the terms and conditions more favourable to the Crown:
In clause 33(3), new section 61(1)(ib), replace “before the commencement of the Overseas Investment Amendment Act 2017”
(page 41, lines 13 and 14) with “before the commencement of section 33 of the Overseas Investment Amendment Act 2017”
.
In clause 33(3), new section 61(1)(ic), replace “before the commencement of the Overseas Investment Amendment Act 2017”
(page 41, lines 20 and 21) with “before the commencement of section 33 of the Overseas Investment Amendment Act 2017”
.
In clause 33(3A), new section 61(1)(ka), replace “that section applies”
(page 41, line 38) with “that section does not apply”
.
Clause 33A
In clause 33A, before new section 61B (page 42, before line 6), insert:
61BA Purpose of exemptions
The purpose of sections 61B and 61C is to—
(a)
provide flexibility where compliance with this Act is impractical, inefficient, or unduly burdensome but where the purpose of this Act can still be substantially achieved through terms and conditions of the exemption; or
(b)
allow for exemptions that are minor or technical; or
(c)
allow for exemptions in respect of all or any of the following matters:
(i)
interests in land to be used for diplomatic or consular purposes:
(ii)
persons registered as a charitable entity under the Charities Act 2005:
(iii)
minor increases in ultimate ownership and control by overseas persons if consent has already been granted for those overseas persons to own or control sensitive assets:
(iv)
security arrangements that are entered into in the ordinary course of business:
(v)
relationship property as defined in section 8 of the Property (Relationships) Act 1976:
(vi)
interests in land acquired for the purpose of providing network utility services.
In clause 33A, replace new section 61D(1)(a) (page 42, lines 25 and 26) with:
(a)
that there are circumstances that mean that it is necessary, appropriate, or desirable to provide an exemption for any of the matters referred to in section 61BA(a) to (c); and
In clause 33A, after new section 61E(2) (page 43, after line 13), insert:
(2A)
Regulations under section 61B may provide, where a person relies on an exemption in the regulations, for the following:
(a)
for conditions of consents, to the extent set out in the regulations, to continue in effect as conditions of the consents but on the basis set out in the regulations (whether or not the person who relies on the exemption is a consent holder):
(b)
for the person who relies on the exemption to be treated as a consent holder to the extent set out in the regulations:
(c)
for consent holders to cease to be subject to the conditions of their consents to the extent set out in the regulations.
In clause 33A, new section 61E(4), replace “appropriate”
(page 43, line 18) with “necessary, appropriate, or desirable”
.
In clause 33A, new section 61E(5), replace “, or need not be published,”
(page 43, line 21) with “or dispensed with”
.
In clause 33A, replace new section 61F(1)(a) (page 43, lines 30 to 34) with:
(a)
1 or more of the following apply:
(i)
a consent holder (A) is subject to 1 or more conditions that apply in connection with property:
(ii)
a person (A) relies on an exemption in, or an exemption granted under, this Act or the regulations that is subject to 1 or more conditions that apply in connection with property:
(iii)
because of the previous operation of this section, a person (A) is treated as being subject to 1 or more conditions that apply in connection with property; and
In clause 33A, delete new section 61F(1)(c) (page 43, line 38).
In clause 33A, after new section 61F(1) (page 44, after line 2), insert:
(1A)
However, this section does not apply in the circumstances prescribed in the regulations (if any).
In clause 33A, replace new section 61F(2) and (3) (page 44, lines 3 to 9) with:
(2)
B must be treated as being subject to the conditions referred to in subsection (1)(a) that are of the class specified in the regulations (and those conditions apply as conditions of a consent or an exemption, as the case may be, with all necessary modifications as if B were the person who was originally subject to the conditions).
(3)
If the conditions that apply to B are conditions of a consent, B must be treated as being a consent holder in respect of the property and in respect of the conditions (for example, B may agree to the variation of the conditions under section 27).
In clause 33A, after new section 61F(5) (page 44, after line 12), insert:
(6)
This section does not limit section 61E(2A).
Schedule 1
In Schedule 1, new Schedule 1AA, after clause 2(1) (page 46, after line 33), insert:
(1A)
However, section 54 (as in force after commencement) does not apply to a holder of an exemption under section 61C if the exemption was continued in force under clause 3(2) of this schedule.
In Schedule 1, new Schedule 1AA, clause 2(2), replace “41B”
(page 46, line 34) with “41AA”
.
In Schedule 1, new Schedule 1AA, replace clause 3(3) (page 47, lines 5 to 7) with:
(3)
However, sections 61BA, 61C(3), 61D, and 61E(4)—
(a)
do not apply to those exemptions as granted; and
(b)
do not apply (other than section 61C(3)) to a minor or technical amendment to those exemptions, or to a replacement of those exemptions with only minor or technical amendments, made after the commencement of section 33 of the Overseas Investment Amendment Act 2017.
In Schedule 1, new Schedule 1AA, clause 4(2), replace “under this Act”
(page 47, line 17) with “for the purposes of section 10(1)(a)”
.
In Schedule 1, new Schedule 1AA, clause 4(2), replace “another”
(page 47, line 20) with “other”
.
In Schedule 1, new Schedule 1AA, clause 6(2), delete “being”
(page 47, line 37).
In Schedule 1, new Schedule 1AA, after clause 7 (page 48, after line 3), insert:
7A Provisions relating to exemptions in clauses 6 and 9 of Schedule 3
(1)
For the purposes of clause 6(4)(b)(i) of Schedule 3, the acquisition (or treated acquisition) of a forestry right by a related forestry investor is to be disregarded if the acquisition (or treated acquisition)—
(a)
was made before commencement; or
(b)
was made on or after commencement but resulted from a transaction referred to in clause 1(2)(aa) of this schedule.
(2)
For the purposes of clause 9(4)(b)(ii) of Schedule 3, it does not matter if a regulated profit à prende was first held (or treated as first held) by a related profit investor—
(b)
on or after commencement as a result of a transaction referred to in clause 1(2)(aa) of this schedule.
(3)
In this clause, commencement means the commencement of clause 1 of this schedule.
Schedule 2
In Schedule 2, new Schedule 2, clause 2, definition of relevant business, after “clause 12(2)”
(page 51, line 4), insert “and (3)”
.
In Schedule 2, new Schedule 2, clause 2, replace the definition of relevant interest (page 51, lines 5 to 8) with:
relevant interest, in relation to residential land, means—
(a)
the interest in the residential land; or
(b)
rights or interests in securities of a person who owns or controls (directly or indirectly) any interest in the residential land
In Schedule 2, new Schedule 2, replace clause 4(4)(b) and (c) (page 52, lines 7 to 10) with:
(b)
either—
(i)
the relevant interest in the residential land will be acquired as relationship property of A and B and regulations exempt B from the requirement for consent under section 10(1)(a); or
(ii)
the interest in the residential land will be acquired by a company that is incorporated in New Zealand and in which all of the securities are wholly owned as relationship property by A and B, on the basis that A is a key individual,—
In Schedule 2, new Schedule 2, after clause 4(4) (page 52, after line 11), insert:
(5)
B (but not A) can also be disregarded for the overseas investment when determining whether the investor test is met if—
(a)
the application for consent is under the commitment to reside in New Zealand test only; and
(b)
the investor test applies (because the relevant land is or includes residential land and land that is sensitive under Part 1 of Schedule 1 for some other reason); and
(c)
the relevant Ministers are satisfied that A is an individual with control of the relevant overseas person (for example, if the relevant overseas person is a company).
In Schedule 2, new Schedule 2, clause 7(1), after “(each, an OP)”
(page 53, line 22), insert “at the date of consent”
.
In Schedule 2, new Schedule 2, clause 7(2), table, item 1, first column (page 54), replace “OP is absent from New Zealand for more than 183 days in any 12-month period beginning on the date of consent or its anniversary in any year, without a waiver”
with “On an anniversary date, OP has been absent from New Zealand for more than 183 days in total in the immediately preceding 12 months without a waiver”
.
In Schedule 2, new Schedule 2, clause 7(2), table, item 1, second column (page 54), replace “in the 12-month period beginning on the date that the trigger event occurs”
with “in total in the 12-month period beginning on the anniversary date”
.
In Schedule 2, new Schedule 2, clause 7(3)(b), replace “but only if the residential land is relationship property of the OP and the OP’s spouse or partner”
(page 54, lines 7 and 8), with “but only if clause 4(4)(b) applies”
.
In Schedule 2, new Schedule 2, after clause 7(5) (page 54, after line 13), insert:
Interpretation
In Schedule 2, new Schedule 2, replace clause 7(7) (page 54, lines 16 and 17) with:
(7)
In this clause,—
anniversary date means the anniversary of the date of consent in any year
prescribed means prescribed by regulations made under section 61(1)(ie)(ii).
In Schedule 2, new Schedule 2, replace clause 8(1) (page 55, lines 2 to 6) with:
(1)
An application may be made, in respect of a person (an OP) in relation to whom a trigger event under item 1 of the table in clause 7(2) may or will occur, or has occurred, for a waiver from the requirement for the consent holder to dispose of all relevant interests in the residential land as a consequence of the trigger event occurring.
In Schedule 2, new Schedule 2, clause 9(b), before “if the relevant Ministers”
(page 55, line 26), insert “only”
.
In Schedule 2, new Schedule 2, clause 13(1)(b), replace “or”
(page 57, line 27) with “nor”
.
In Schedule 2, new Schedule 2, clause 14(4), replace “would, or would likely,”
(page 58, line 40) with “will, or is likely to,”
.
In Schedule 2, new Schedule 2, heading to clause 17, replace “is”
(page 59, line 33) with “are”
.
In Schedule 2, new Schedule 2, clause 19(2), table, item 2, second column (page 62), replace “or held”
with “nor held”
.
In Schedule 2, new Schedule 2, clause 19(2), table, item 3, first column (page 62), replace “whether or not the facility is new or is proposed”
with “whether the facility is existing or is being or proposed”
.
In Schedule 2, new Schedule 2, clause 19(2), table, item 7, second column (page 63), after “dealt with”
, insert “by OP”
.
Schedule 3
In Schedule 3, new Schedule 3, clause 1, after “consent”
(page 66, line 9), insert “for the purposes of section 10(1)(a)”
.
In Schedule 3, new Schedule 3, clause 2(1), after “consent”
(page 67, line 6), insert “for the purposes of section 10(1)(a)”
.
In Schedule 3, new Schedule 3, clause 3(1), after “consent”
(page 67, line 19), insert “for the purposes of section 10(1)(a)”
.
In Schedule 3, new Schedule 3, clause 4(5), after “consent”
(page 68, line 19), insert “for the purposes of section 10(1)(a)”
.
In Schedule 3, new Schedule 3, clause 5(1), after “consent”
(page 69, line 13), insert “for the purposes of section 10(1)(a)”
.
In Schedule 3, new Schedule 3, clause 6(1), after “consent”
(page 70, line 16), insert “for the purposes of section 10(1)(a)”
.
In Schedule 3, new Schedule 3, clause 6(3), after “consent”
(page 70, line 29), insert “for the purposes of section 10(1)(a)”
.
In Schedule 3, new Schedule 3, clause 6(4)(b)(i), after “acquire”
(page 70, line 35), insert “(or are treated as acquiring)”
.
In Schedule 3, new Schedule 3, clause 6(5)(c), after “acquired”
(page 71, line 18), insert “(or treated as acquired)”
.
In Schedule 3, new Schedule 3, clause 7(1), after “consent”
(page 71, line 24), insert “for the purposes of section 10(1)(a)”
.
In Schedule 3, new Schedule 3, replace clause 7(2) (page 72, lines 1 to 8) with:
(2)
For the purposes of subclause (1)(c), a person (A) is related to the licensee if—
(a)
the licensee owns and controls 95% of A; or
(b)
A owns and controls 95% of the licensee; or
(c)
a third person owns and controls 95% of the licensee and of A.
(3)
For the purposes of subclause (2), a person (X) owns and controls 95% of another person (Y) if X has—
(a)
a beneficial entitlement to, or a beneficial interest in, 95% or more of Y’s securities; and
(b)
the power to control the composition of 95% or more of the governing body of Y; and
(c)
the right to exercise, or control the exercise of, 95% or more of the voting power at a meeting of Y.
In Schedule 3, new Schedule 3, delete clause 8 (page 72, line 9 to page 75, line 4).
In Schedule 3, new Schedule 3, clause 9(1), after “consent”
(page 75, line 8), insert “for the purposes of section 10(1)(a)”
.
In Schedule 3, new Schedule 3, clause 9(3), after “consent”
(page 75, line 21), insert “for the purposes of section 10(1)(a)”
.
In Schedule 3, new Schedule 3, clause 9(4)(b)(ii), after “held”
(page 75, line 28), insert “(or treated as held)”
.
In Schedule 3, new Schedule 3, clause 9(5)(d), after “held”
(page 76, line 10), insert “(or treated as first held)”
.