Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698838094488.pdf (New Zealand)
2011/399 Summary Proceedings (Credit Reporting of Fines) Regulations 2011 Rt Hon Dame Sian Elias, Administrator of the Government Order in Council At Wellington this 31st day of October 2011 Present: Her Excellency the Administrator of the Government in Council Pursuant to section 92I of the Summary Proceedings Act 1957, Her Excellency the Administrator of the Government makes the follow- ing regulations, acting— (a) on the advice and with the consent of the Executive Council; and on the recommendation of the Minister for Courts made in accordance with section 92I(2) of that Act.
(b) Contents 1 2 3 Title Commencement Interpretation Page 3 3 3 1 Summary Proceedings (Credit Reporting of Fines) Regulations 2011 2011/399 Part 1 Recognised users and access to information about default balances Status as recognised user Agencies in specified class have status as recognised users Criteria for authorising agencies as recognised users Termination of status as recognised user Cancellation of access codes Circumstance when access code may be suspended immediately pending proposed cancellation Procedure for cancellation of access code Part 2 Process for disclosure of information about default balances Subpart 1—Submission of fine status queries Collection of certain information for fine status queries Collection of driver licence number and driver licence card number Retention of certain information for fine status queries Restriction on retention of driver licence number and driver licence card number Keeping of consent record Subpart 2—Processing of fine status responses Comparing information for fine status responses Criteria for assessing whether query subject’s identifying particulars correspond with those of recorded defendant Verification of driver licence number and driver licence card number Corresponding identifying particulars: individual Corresponding identifying particulars: non-individual Combining information for fine status responses Combining identifying particulars with fines enforcement records Subpart 3—Disclosure and use of fine status responses How fine status response may be
 disclosed to recognised user, etc Disclosure and use of fine status response by recognised user (1) 2011/399 Summary Proceedings (Credit Reporting of Fines) Regulations 2011 Part 3 Monitoring and audits Recognised users must keep fine status queries for audit purposes Recognised users must submit report to chief executive annually Recognised users must make other records available for audit purposes Timing of audits r 3 16 16 17 18 Regulations Title These regulations are the Summary Proceedings (Credit Re- porting of Fines) Regulations 2011.
Commencement These regulations come into force on 13 February 2012.
Interpretation In these regulations, unless the context otherwise requires,— Act means the Summary Proceedings Act 1957 code means the credit reporting code of practice (as defined in section 92A(1) of the Act) recorded defendant means a defendant who is recorded in the fines enforcement records as having a default balance relevant particulars, for a recorded defendant, means the fol- lowing identifying particulars of the recorded defendant: (a) (b) (c) (d) (e) (f) full name: former names and aliases (if any): date of birth: current address: previous addresses (if any): driver licence number (if any) as defined in the code.
(2) Unless the context otherwise requires, a term that is defined in the Act and used, but not defined, in these regulations has the meaning given to it by the Act.
3 Part 1 r 4 Summary Proceedings (Credit Reporting of Fines) Regulations 2011 2011/399 Part 1 Recognised users and access to information about default balances Status as recognised user 4 (1) (2) Agencies in specified class have status as recognised users The purpose of this regulation is to— (a) specify a class of persons that come within paragraph (b) of the definition of recognised user in section 92A(1) of the Act; and identify agencies that are members of that class as recognised users.
(b) The class referred to in subclause (1) is the class of persons— (a) that— (i) (ii) are subscribers under the code; or could have credit information disclosed to them under rule 11(2)(b) of the code if they enter into a subscriber agreement required by the code; and that require information contained in a fine status re- sponse in order to assess the creditworthiness of any person.
(b) (3) Agencies that are members of the class specified in subclause (2) are recognised users for the purposes of sections 92A to 92I of the Act.

Criteria for authorising agencies as recognised users The purpose of this regulation is to prescribe the criteria that, under paragraph (c) of the definition of recognised user in sec- tion 92A(1) of the Act, the Minister for Courts must take into account in considering an application from an agency (the ap- plicant) to be authorised as a recognised user.
The criteria are as follows: (a) the applicant requires information contained in a fine status response in order to assess the creditworthiness of any person: the applicant has appropriate measures in place for en- suring compliance with the Privacy Act 1993: the applicant is not an undischarged bankrupt or subject to subpart 4 of Part 5 of the Insolvency Act 2006: (b) (c) 5 (1) (2) 4 2011/399 Summary Proceedings (Credit Reporting of Fines) Regulations 2011 Part 1 r 6 (d) (e) (f) (g) the applicant has not been convicted of a crime involv- ing dishonesty (as defined in section 2(1) of the Crimes Act 1961) or of a crime committed overseas that, if com- mitted in New Zealand, would be a crime involving dis- honesty: the applicant has not, within 5 years before the date of the application, been found, in the opinion of the Privacy Commissioner, to have breached the Privacy Act 1993: the applicant has not, within 5 years before the date of the application, breached— (i) any provision of the Act relating to credit report- ing; or any provision of these regulations; or any provision of any other regulations made under section 92I of the Act: (ii) (iii) if the applicant was previously authorised as a recog- nised user, the applicant has not, within 5 years before the date of the application, failed to comply with any conditions or restrictions relating to access codes im- posed under section 92C(2) of the Act.
6 (1) (2) Termination of status as recognised user The purpose of this regulation is to provide for an agency’s status as a recognised user to be terminated by the Minis- ter for Courts in specified circumstances, even though that agency comes within the definition of recognised user in sec- tion 92A(1) of the Act.
The Minister for Courts may terminate an agency’s status as a recognised user if— (a) the Minister is requested to do so in writing by the agency: the access code issued to the agency is cancelled for any reason and the cancellation continues for a period of more than 6 months: the agency— (i) is an individual and ceases to carry on business; or (b) (c) 5 Part 1 r 6 Summary Proceedings (Credit Reporting of Fines) Regulations 2011 2011/399 (ii) is not an individual and is wound up, liquidated, dissolved, or otherwise ceases to exist: the access code issued to the agency is suspended under regulation 7 and is later cancelled.
(d) If the Minister for Courts terminates an agency’s status as a recognised user, he or she must give a written or an electronic notice of the termination to the agency.

The termination of an agency’s status as a recognised user does not affect the agency’s obligations under these regulations that exist immediately before the termination (for example, the obligations relating to the retention or use of information con- tained in fine status responses).
If an agency’s status as a recognised user is terminated under this regulation,— (a) any access code issued to the agency, if not already can- celled, is cancelled as at the date of the written or elec- tronic notice referred to in subclause (3); and the agency must, within 20 working days after the date of that notice, submit to the chief executive the report required under regulation 20.
(b) For the purposes of subclause (5)(b),— (a) regulation 20 applies as if references in that regulation to the applicable period were references to the period beginning on 1 July after the year on which the latest report under that regulation was required and ending on the date of the written or electronic notice referred to in subclause (3); and the following are the persons who must ensure that the report referred to in subclause (5)(b) is submitted: (i) if the agency is an individual who is not deceased, that individual; or if the agency is an individual who is deceased, the executors or administrators of the estate of that individual; or if the agency is a partnership that has been dis- solved, each member of that dissolved partner- ship; or if the agency is a company that has been wound up or liquidated, every person who was an officer (ii) (iii) (iv) (b) (3) (4) (5) (6) 6 2011/399 Summary Proceedings (Credit Reporting of Fines) Regulations 2011 Part 1 r 8 7 (1) (2) (3) (4) 8 (1) of that company at the time it commenced wind- ing up or liquidation.
Cancellation of access codes Circumstance when access code may be suspended immediately pending proposed cancellation The purpose of this regulation is to prescribe the circumstance when an access code may be suspended immediately pending its proposed cancellation under section 92C(3) of the Act.
The circumstance is where the chief executive has reasonable grounds to suspect that a recognised user has breached section 92F of the Act (which sets out restrictions on the disclosure and use by a recognised user of information contained in a fine status response).

If the circumstance in subclause (2) exists, the chief executive may suspend the access code issued to the recognised user immediately.
If the chief executive decides to suspend the access code im- mediately, the chief executive must give the recognised user a written or an electronic notice of the suspension that— specifies the reason for the suspension; and (a) states the date on which the suspension takes effect.
(b) Procedure for cancellation of access code The purpose of this regulation is to prescribe, for the purposes of section 92C(3) of the Act, the procedure for the cancellation of an access code if the chief executive has reasonable grounds to suspect that a recognised user has— (a) breached any provision of the Act relating to credit re- porting or of these regulations or any other regulations made under section 92I of the Act; or failed to comply with any conditions or restrictions im- posed under section 92C(2) of the Act.
(b) (2) The procedure for the cancellation of an access code referred to in subclause (1) is as follows: (a) the chief executive must give the recognised user con- cerned a written or an electronic notice of the proposal 7 Part 1 r 8 Summary Proceedings (Credit Reporting of Fines) Regulations 2011 2011/399 (b) (c) (d) (ii) to cancel the access code issued to the recognised user; and the notice must— (i) specify the chief executive’s reason for proposing to cancel the access code; and state that the cancellation takes effect on a spe- cified date unless the recognised user makes, within 10 working days after receiving the no- tice, written or electronic submissions to the chief executive as to why the recognised user’s access code should not be cancelled; and the chief executive must take into account any written or electronic submissions made by the recognised user within the 10-working-day period referred to in para- graph (b)(ii) in deciding whether or not to cancel the access code; and if the chief executive decides to cancel the access code, the chief executive must give the recognised user a fur- ther written or electronic notice that— (i) (ii) specifies the reason for the cancellation; and states the date on which the cancellation takes effect; and summarises the effect of section 92C(4) of the Act (which states that the chief executive may issue to the recognised user another access code if the chief executive is satisfied that the access code should not have been cancelled or that any breach on the part of the recognised user is un- likely to recur).
(iii) (3) If the chief executive decides not to cancel the access code issued to the recognised user, the chief executive must give the recognised user a further written or electronic notice of that decision.
8 2011/399 Summary Proceedings (Credit Reporting of Fines) Regulations 2011 Part 2 r 9 Part 2 Process for disclosure of information about default balances Subpart 1—Submission of fine status queries Collection of certain information for fine status queries 9 Collection of driver licence number and driver licence card number (2) (1) A recognised user that is a credit reporter must take all rea- sonable steps to ensure that a subscriber complies with the re- quirements in subclause (2) when the subscriber collects an individual’s driver licence number from the individual for dis- closure to the recognised user.
The requirements referred to in subclause (1) are as follows: the subscriber must make it clear to the individual that (a) the provision of the driver licence number is voluntary; and if the individual provides his or her driver licence num- ber, the subscriber must— (i) (b) (ii) (iii) also collect the individual’s driver licence card number; and disclose both the driver licence number and the driver licence card number of the individual to the recognised user; and take all reasonable steps to ensure that the indi- vidual is the individual shown on the driver li- cence if the individual attends in person at the time he or she provides the driver licence num- ber and driver licence card number.
If a recognised user collects an individual’s driver licence number from the individual, the recognised user must take all reasonable steps to comply with the requirements in subclause (4).
The requirements referred to in subclause (3) are as follows: the recognised user must make it clear to the individual (a) that the provision of the driver licence number is volun- tary; and (3) (4) 9 Part 2 r 10 Summary Proceedings (Credit Reporting of Fines) Regulations 2011 2011/399 (b) if the individual provides his or her driver licence num- ber, the recognised user must— (i) also collect the individual’s driver licence card number; and disclose both the driver licence number and the driver licence card number of the individual to the chief executive; and ensure that the individual is the individual shown on the driver licence if the individual attends in person at the time he or she provides the driver licence number and driver licence card number.
(ii) (iii) Retention of certain information for fine status queries 10 Restriction on retention of driver licence number and driver licence card number (1) A recognised user— (a) may retain a driver licence number and driver licence card number only for the purpose of disclosing them to the chief executive; and (b) must not enter the driver licence number and driver li- cence card number into any database (whether in a writ- ten or an electronic form).
(2) As soon as practicable after a recognised user has disclosed a driver licence number and driver licence card number to the chief executive, the recognised user must dispose of them.

(3) Nothing in this regulation prevents a recognised user that is a credit reporter from retaining any information derived from the driver licence number and driver licence card number as credit information under the code.
Keeping of consent record A recognised user must keep each record evidencing the con- sent given by a query subject to the submission of a fine status query for a period of not less than 2 years after the date on which it was given.
11 10 2011/399 Summary Proceedings (Credit Reporting of Fines) Regulations 2011 Part 2 r 13 Subpart 2—Processing of fine status responses Comparing information for fine status responses 12 13 (1) (2) Criteria for assessing whether query subject’s identifying particulars correspond with those of recorded defendant The criteria for assessing whether, under section 92E(1)(c) of the Act, the identifying particulars of a query subject in a fine status query correspond with those of a recorded defendant are as follows: (a) if applicable, the query subject’s driver licence number and driver licence card number have been verified in accordance with the code or with regulation 13; and the query subject’s identifying particulars in the fine sta- tus query and the recorded defendant’s relevant particu- lars shown in the fines enforcement records correspond in the manner described in regulation 14 or 15 (as the case may be).
(b) (b) Verification of driver licence number and driver licence card number This regulation applies if— (a) the chief executive receives a fine status query that includes a query subject’s driver licence number and driver licence card number; and the driver licence number and driver licence card num- ber have not been previously verified in accordance with the code in respect of that fine status query.
The chief executive must take all reasonably practicable steps to verify that— (a) the driver licence number relates to a licence issued by the New Zealand Government; and the driver licence number does not relate to a licence that has been recorded on the national register as lost or stolen; and the driver licence card number is the most recent driver licence card number for the licence.
(b) (c) 11 Part 2 r 14 Summary Proceedings (Credit Reporting of Fines) Regulations 2011 2011/399 The chief executive must hold a query subject’s driver licence number and driver licence card number separate from fines enforcement records.

In subclause (2)(b), national register means the national register of all driver licences maintained under section 199 of the Land Transport Act 1998.
Corresponding identifying particulars: individual For the purposes of section 92E(1)(c) of the Act, the identify- ing particulars of a query subject that is an individual included in a fine status query may be taken to correspond with those of a recorded defendant if, in a case where the details of the defendant’s driver licence are not recorded or do not match,— (a) either of the following applies: (i) the query subject’s full name corresponds with the recorded defendant’s full name, former name, or alias: the query subject’s former name or alias corres- ponds with the recorded defendant’s full name, former name, or alias; and (ii) (b) (c) the query subject’s date of birth corresponds with the recorded defendant’s date of birth; and one of the following applies: (i) (ii) (iii) (iv) the query subject’s current address corresponds with the recorded defendant’s current address: the query subject’s current address corresponds with any of the recorded defendant’s previous addresses: any of the query subject’s previous addresses cor- responds with the recorded defendant’s current address: any of the query subject’s previous addresses cor- responds with any of the recorded defendant’s previous addresses.
For the purposes of section 92E(1)(c) of the Act, the identify- ing particulars of a query subject that is an individual included in a fine status query may be taken to correspond with those of a recorded defendant if, in a case where the details of the defendant’s driver licence are recorded,— (3) (4) 14 (1) (2) 12 2011/399 Summary Proceedings (Credit Reporting of Fines) Regulations 2011 Part 2 r 15 (a) (b) the query subject’s driver licence number matches ex- actly the recorded defendant’s driver licence number; and either of the following applies: (i) the query subject’s full name corresponds with the recorded defendant’s full name, former name, or alias: the query subject’s former name or alias corres- ponds with the recorded defendant’s full name, former name, or alias.
(ii) 15 Corresponding identifying particulars: non-individual For the purposes of section 92E(1)(c) of the Act, the identify- ing particulars of a query subject that is not an individual in- cluded in a fine status query may be taken to correspond with those of a recorded defendant if— (a) either of the following applies: (i) the query subject’s full name corresponds with the recorded defendant’s full name: the query subject’s trading name corresponds with the recorded defendant’s full name; and (ii) (b) one of the following applies: (i) (ii) (iii) (iv) the query subject’s current address corresponds with the recorded defendant’s current address: the query subject’s current address corresponds with any of the recorded defendant’s previous addresses: any of the query subject’s previous addresses cor- responds with the recorded defendant’s current address: any of the query subject’s previous addresses cor- responds with any of the recorded defendant’s previous addresses.
13 Part 2 r 16 Summary Proceedings (Credit Reporting of Fines) Regulations 2011 2011/399 Combining information for fine status responses Combining identifying particulars with fines enforcement records For the purposes of section 92G of the Act, the chief execu- tive may treat the identifying particulars of a query subject as diverging particulars under that section if— (a) identifying particulars of the query subject correspond with those of the recorded defendant under regulation 14 or 15 (as the case may be) or under subclause (2) or (3) (as the case may be); but 1 or more of the identifying particulars of the query subject diverge from those of the recorded defendant.
(b) The identifying particulars of a query subject that is an indi- vidual included in a fine status query may be taken to corres- pond with those of a recorded defendant if— either of the following applies: (a) (i) the query subject’s full name corresponds with the recorded defendant’s full name, former name, or alias: the query subject’s former name or alias corres- ponds with the recorded defendant’s full name, former name, or alias; and (ii) (b) the query subject’s date of birth corresponds with the recorded defendant’s date of birth.
The identifying particulars of a query subject that is not an individual included in a fine status query may be taken to cor- respond with those of a recorded defendant if either of the fol- lowing applies: (a) the query subject’s full name corresponds with the recorded defendant’s full name: the query subject’s trading name corresponds with the recorded defendant’s full name.
(b) 16 (1) (2) (3) 14 2011/399 Summary Proceedings (Credit Reporting of Fines) Regulations 2011 Part 2 r 18 Subpart 3—Disclosure and use of fine status responses 17 (1) (2) 18 How fine status response may be disclosed to recognised user, etc The purpose of this regulation is to prescribe, for the purposes of section 92E of the Act, how the chief executive may— (a) send a fine status response to a recognised user that states that a query subject has a default balance and the amount of that balance; or send a fine status response to a recognised user that states that the identifying particulars of a query sub- ject do not correspond with the relevant particulars of a recorded defendant; or notify a recognised user that a fine status query cannot be processed and ask the recognised user to submit an- other fine status query.
(b) (c) The chief executive may do any of the things set out in sub- clause (1) in writing or electronically.
Disclosure and use of fine status response by recognised user (1) A recognised user that is a credit reporter must, in comply- ing with the requirement in regulation 19 for the retention of information contained in a fine status response for audit pur- poses,— (a) hold that information separate from any other informa- tion; and not combine that information with any other informa- tion (whether in a written or an electronic form in a database).
(b) (2) If a recognised user or a credit reporter discloses information contained in a fine status response under section 92F(1)(a) or (2) of the Act, the recognised user or, as the case may be, the credit reporter must include the date of the fine status response in the information to be disclosed.
15 Part 3 r 19 Summary Proceedings (Credit Reporting of Fines) Regulations 2011 2011/399 Part 3 Monitoring and audits 19 (1) Recognised users must keep fine status queries for audit purposes For the purposes of section 92H of the Act, a recognised user must keep each fine status query that the recognised user sub- mits to the chief executive for a period of not less than 2 years after the date on which it was submitted.
(2) However, a recognised user may dispose of every fine status query retained under subclause (1) after the earlier of— (a) the date on which the period referred to in subclause (1) expires; and the date on which an audit under section 92H of the Act is completed in respect of that fine status query.

(b) (3) Nothing in this regulation prevents a recognised user that is a credit reporter from keeping any identifying particulars con- tained in a fine status query as credit information under the code.
Recognised users must submit report to chief executive annually For the purposes of section 92H of the Act, a recognised user must submit to the chief executive a report by no later than 30 September in each year for the period beginning on 1 July of the previous year and ending on 30 June of the year the report is submitted (the applicable period).
The report must provide a reasonable assurance to the chief executive that, for the applicable period, the recognised user— had policies, internal procedures, and controls in place (a) to give effect to the provisions of the Act relating to credit reporting, and of these regulations and any other regulations made under section 92I of the Act, and re- lating to any conditions imposed under section 92C(2) of the Act in respect of the issue of access codes; and provided information and training to its staff to ensure compliance with the policies, internal procedures, and controls referred to in paragraph (a); and (b) 20 (1) (2) 16 2011/399 Summary Proceedings (Credit Reporting of Fines) Regulations 2011 Part 3 r 21 (c) undertook monitoring activities to ensure its reasonable compliance with the provisions of the Act relating to credit reporting, and of these regulations and any other regulations made under section 92I of the Act, and re- lating to any conditions imposed under section 92C(2) of the Act in respect of the issue of access codes, includ- ing the following: (i) the recognised user followed the policies, inter- nal procedures, and controls referred to in para- graph (a); and information held by the recognised user was pro- tected by reasonable security safeguards; and the recognised user can demonstrate that the method for satisfying itself that the query subject consented to the submission of a fine status query is based on informed consent; and if the recognised user is a credit reporter, the recognised user can demonstrate compliance with section 92F(2) of the Act when disclosing and using information contained in a fine status response; and (ii) (iii) (iv) (d) (e) investigated a breach of any agreement, or the policies, internal procedures, and controls referred to in para- graph (a) if the recognised user identified the breach during its systematic reviews, monitoring activities, or as a result of a complaint and, if appropriate, took prompt remedial action for the breach; and took prompt remedial action, if appropriate, if a defi- ciency was identified in the previous year’s report.
21 Recognised users must make other records available for audit purposes For the purposes of section 92H of the Act, a recognised user must provide all or any of the following to the chief executive if requested to do so by the chief executive: (a) records evidencing the consent given by query subjects to the submission of fine status queries: records of identifying particulars (except those disposed of in accordance with regulation 10(2)): (b) 17 Part 3 r 22 Summary Proceedings (Credit Reporting of Fines) Regulations 2011 2011/399 (c) (d) fine status queries: fine status responses.
22 Timing of audits The chief executive may audit the records of recognised users under section 92H(1)(b) at any time.

Michael Webster, for Clerk of the Executive Council.

Explanatory note This note is not part of the regulations, but is intended to indicate their general effect.
These regulations, which come into force on 13 February 2012, pre- scribe various matters for the purposes of sections 92A to 92I of the Summary Proceedings Act 1957 (the principal Act), as amended by the Summary Proceedings Amendment Act 2011.
Sections 92A to 92I of the principal Act authorise the routine disclos- ure of amounts of overdue penalties (default balances) to recognised users (generally credit reporting agencies) for inclusion in credit re- ports and other documents about the creditworthiness of individuals or organisations.

Section 92B of the principal Act states that the purpose of the disclos- ure is to provide incentives to defendants who have default balances to pay or resolve the required payments in accordance with that Act.
In order to achieve that purpose, sections 92C to 92I of the principal Act authorise, among other things,— • the chief executive of the Ministry of Justice to disclose infor- mation about a person’s default balance to recognised users to enable them to assess the creditworthiness of the person and to protect themselves against the possible subordination of their security interests; and the chief executive of the Ministry of Justice to use informa- tion received from recognised users (for example, updated in- formation about a person’s address, employer, or occupation) • 18 2011/399 Summary Proceedings (Credit Reporting of Fines) Regulations 2011 Explanatory note to enhance the accuracy and completeness of fines enforce- ment records and, therefore, to facilitate the collection of fines.
Sections 92A to 92I of the principal Act underpin the other provisions in the Summary Proceedings Amendment Act 2011 that allow a Dis- trict Court to be given priority over a secured creditor for proceeds from the sale of seized property if the creditor could have used the new credit reporting legislative framework to discover that a default balance was owed by the defendant, before the creditor advanced money to the defendant to finance that property, and some or all of that default balance is still owing by the defendant when the property is seized.
These regulations set out provisions that are required for the proper implementation and operation of the credit reporting measures in the principal Act, including the detailed framework governing the ex- change of information between the Ministry of Justice and the credit industry for credit reporting purposes.

Issued under the authority of the Acts and Regulations Publication Act 1989.

Date of notification in Gazette: 3 November 2011.

These regulations are administered by the Ministry of Justice.
12 Wellington, New Zealand: Published under the authority of the New Zealand Government—2011 19