Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698845865223.pdf (New Zealand)
House of Representatives Supplementary Order Paper Tuesday, 27 November 2012 Local Government Act 2002 Amendment Bill Proposed amendments for the consideration of the Committee of the whole House 27—2/SOP No 153 1 Proposed amendments to the Local Government Act 2002 Amendment Bill Key: • • this is inserted text this is deleted text Note: This Supplementary Order Paper shows amendments to the Bill that are being proposed by the Minister for the purposes of consideration in Committee of the whole House.
This document does— • • NOT have official status in terms of unamended text NOT have the status of an as-reported version of the Bill.

2 27—2/SOP No 153 Proposed amendments to the Local Government Act 2002 Amendment Bill Explanatory note This Supplementary Order Paper amends the Local Government Act 2002 Amendment Bill.
The amendments are largely based on the recommendations in the departmental report to the Local Government and Environment Committee that were not agreed to by the Committee when the Bill was reported back to the House.
The amendments fall into 2 main categories: those relating to the replacement of Part 10 of the principal Act, which deals with the powers of the Minister of Local Government to act in relation to local authorities, and those replacing the provisions and Schedule relating to the reorganisation of local government.
Part 10 amendments The most significant amendments relating to the replacement of Part 10 are as follows: • the insertion of new sections 253A and 253B, which provide a guide to and an application provision for new Part 10: the inclusion of a further item in the definition of problem, in relation to a local authority, in new section 254: clarification of the information that the Minister may require a local authority to provide under new section 255: clarification of the grounds on which the Minister may appoint a Crown Review Team, Crown Observer, Crown Manager, or Commission under, respectively, new sections 256(1), 258(1), 258B(1), and 258D(1): clarification of the roles and powers of a Crown Review Team, Crown Observer, Crown Manager, and Commission under, respectively, new sections 256(4) and (4A), 258(4) and (4A), 258B(5) and (5A), and 258D(4) to (5B) and 258F: clarification of the power of the Minister to postpone a triennial general election for members of a local authority where a Commission is appointed to the local authority under new section 258G and also by the insertion of new section 258GA: the insertion of new sections 258KAB and 258KAC, which require the Minister to publish a list of matters relevant to determining what assistance or intervention action, if any, to take in respect of a local authority: 27—2/SOP No 153 3 • • • • • • Proposed amendments to the Local Government Act 2002 Amendment Bill • the insertion of new section 258U, which sets out the legal effect of the decisions and directions of a Crown Manager or Commission after the expiry of a term of appointment.
Reorganisation of local government amendments The main changes to the provisions in the Bill relating to local government reorganisation are— • the replacement of “significant” community support for local government reorganisation with “demonstrable” community support for local government reorganisation in each affected territorial authority: the inclusion of a requirement for the Commission, after it has received a reorganisation application that has demonstrable community support, to seek alternative applications: the introduction of a 2-stage process Commission— • in which the determines the preferred option for local government reorganisation and formulates that into a final proposal which (if no poll is called for or it survives a poll) is given effect to by an Order in Council; and then scheme which implements the final proposal and which is given effect to by Order in Council: reorganisation develops a • a poll on a final proposal can be demanded by 10% or more of affected electors in the district of an affected territorial authority, instead of 10% or more of affected electors across an affected area.
The time for compiling a petition for a poll has been extended to 60 working days.

• • • The process is specified in more detail in the overview clause 1AA inserted at the beginning of new Schedule 3 inserted by Schedule 1 of the Bill.

Miscellaneous amendments The SOP also makes other miscellaneous amendments, the most substantive being the insertion of new clauses 259D to 259J.
These clauses allow for the incorporation of financial reporting standards made under the Financial Reporting Act 1993 into any regulations 4 27—2/SOP No 153 Proposed amendments to the Local Government Act 2002 Amendment Bill New section 259(1(dc) made under new section 259(1)(dc).

authorises the making of regulations to prescribe parameters or benchmarks for assessing whether a local authority is prudently managing its revenues, expenses, assets, liabilities, investments, and general financial dealings.
The Honourable David Carter, in Committee, to propose the amendments shown in the following document.
27—2/SOP No 153 5 8A Hon David Carter Local Government Act 2002 Amendment Bill Government Bill Contents Title Commencement Principal Act Part 1 Amendments to Local Government Act 2002 Section 3 amended (Purpose) Section 5 amended (Interpretation) Section 8 amended (Act binds the Crown) Section 10 amended (Purpose of local government) Section 14 amended (Principles relating to local authorities) Section 16 amended (Significant new activities proposed by regional council) Section 23 amended (Description of local government) 9 10AA New section 24AA inserted (Purpose of local government 10 11 reorganisation) 24AA Purpose of local government reorganisation Section 24 replaced (Reorganisation proposals) 24 Scope of local government reorganisation New section 24A inserted (Transitional modification or suspension of certain statutory requirements after issue of final proposal for reorganisation) 27—2/SOP No 153 Page 11 11 11 11 12 13 13 13 14 14 14 14 15 15 15 7 Proposed amendments to the Local Government Act 2002 Amendment Bill 24A Transitional modification or suspension of certain statutory requirements after issue of final proposal for reorganisation Section 25 replaced (Order in Council to give effect to reorganisation schemes) 25 Order in Council to give effect to final proposals and reorganisation schemes New section 26A inserted (Duties of local authorities in relation to local government reorganisation) 26A Duties of local authorities in relation to local government reorganisation Section 27
 amended (Application to be called city council or district council) New sections 27A and 27B inserted Change of name of unitary authorities 27A Orders in Council to be published in Gazette 27B Section 31 amended (Report to Minister on matters relating to local government) New section 31A inserted (Minister’s expectations of Commission in relation to local government reorganisation) 31A Minister’s expectations of Commission in relation Role and powers of mayors to local government reorganisation Section 40
 amended (Local governance statements) New section 41A inserted (Role and powers of mayors) 41A Section 42 amended (Chief executive) Section 48 amended (Further provisions of Schedule 7) Section 49 amended (Establishment of community boards) Section 77 amended (Requirements in relation to decisions) Section 84 amended (Special consultative procedure in relation to long-term plan) Section 94 amended (Audit of long-term plan) Section 99 amended (Audit of information in annual report and summary) Section 101 amended (Financial management) Section 197 amended (Interpretation) Part 10 replaced 27—2/SOP No 153 12 12A 12B 13 13A 18A 19 19A 19B 19C 20 20A 21 8 15 17 17 19 19 20 20 20 20 20 20 21 21 22 22 23 23 23 23 23 24 24 24 24 25 Proposed amendments to the Local Government Act 2002 Amendment Bill Part 10 Powers of Minister to act in relation to local authorities 253 Outline of Part 253A How this Part works 253B Application of this Part Interpretation 254 Subpart 1—Ministerial powers of assistance and intervention Minister may require information from local authority 255 Minister may require information Minister may appoint Crown Review Team 256 Minister may appoint Crown Review Team How Crown Review Team appointed 257 Minister may appoint Crown Observer 258 Minister may appoint Crown Observer 258A How Crown Observer appointed Minister may appoint Crown Manager 258B Minister may appoint Crown Manager 258C How Crown Manager appointed Minister may appoint
 Commission 258D Minister may appoint Commission 258E How Commission appointed 258F Application of this and other enactments during Commission’s term of appointment 258G Minister may postpone general election when appointing Commission 258GA Timing of election following postponed election 258H Local authority members remain in office but 258I must not act during term of Commission Extraordinary vacancy when Commission appointed or during term of Commission Minister may call general election 258J Minister may
 call general election Subpart 2—General provisions applying to Ministerial powers conferred under subpart 1 258KAA Minister may consult any person 27—2/SOP No 153 25 25 26 26 28 29 30 31 33 33 35 35 37 38 39 40 41 42 43 44 9 Proposed amendments to the Local Government Act 2002 Amendment Bill 258KAB Minister must publish list in Gazette 258KAC Minister must have regard to published list 258K Notice to local authority of proposed appointment of Ministerial body 258L Notice to local authority of proposed general election 258M Notification of appointment of Ministerial body 258N Notification of change of membership of Ministerial body 258O Final report of Ministerial body 258P Remuneration and expenses of Ministerial appointees 258Q Recovery of expenses from local authority 258R Minister may terminate Ministerial body or 258S Ministerial appointee Protection from liability for Ministerial appointees 258T Disclosure of information held by local authority 258U Decisions and directions of Crown Manager or Commission remain in force until local authority decides otherwise Section 259 amended (Regulations) New sections 259C to 259J inserted 259C Auditor-General must report on disclosures made under certain regulations 259D Regulations may incorporate financial reporting standards by reference 259E Effect of amendments to, or replacement of, standards incorporated by reference in regulations Proof of standards incorporated by reference 259F 259G Effect of expiry or revocation
 of standards incorporated by reference 259H Access to standards incorporated by reference 259I Acts and Regulations Publication Act 1989 not applicable to standards incorporated by reference 259J Application of Regulations (Disallowance) Act 1989 to standards incorporated by reference Section 260 amended (Amendment of Schedule 2 by Order in Council) Schedule 2 amended Schedule 3 replaced Schedule 6 amended 27—2/SOP No 153 22 22A 22B 22C 23 23A 10 44 45 45 46 46 47 47 48 48 49 49 49 50 50 51 51 52 52 53 53
 53 54 54 54 54 54 54 Proposed amendments to the Local Government Act 2002 Amendment Bill Part 1 cl 4 24 25 26 Schedule 7 amended Schedule 10 amended Schedule 15 repealed Part 2 Transitional provision and consequential amendments 27AA Commissioners and commissions currently appointed under principal Act Transitional provision relating to reorganisation proposals Consequential amendments 27 28 Schedule 1 Schedule 3 of principal Act replaced Schedule 2 Consequential amendments 55 57 58 58 59 59 60 118 The Parliament of New Zealand enacts as follows: 1 2 (1) (2) 3 4 Title This Act is the Local Government Act 2002 Amendment Act 2012.
Commencement Section 16 comes into force on 12 October 2013.

The rest of this Act comes into force on the day after the date on which it receives the Royal assent.

Principal Act This Act amends the Local Government Act 2002 (the prin- cipal Act).
Part 1 Amendments to Local Government Act 2002 Section 3 amended (Purpose) Replace section 3(d) with: 27—2/SOP No 153 11 Part 1 cl 5 Proposed amendments to the Local Government Act 2002 Amendment Bill “(d) provides for local authorities to play a broad role in meeting the current and future needs of their commu- nities for good-quality local infrastructure, local public services, and performance of regulatory functions.” Section 5 amended (Interpretation) 5 (1AA) In section 5(1), replace the definition of Commission with: “Commission,— “(a) other than in Part 10, means the Local Government Commission continued under section 28: in Part 10, has the meaning given by section 254”.
“(b) (1AB) In section 5(1), definition of community facilities, replace “197” with “197(2)”.

(1AC) In section 5(1), definition of community infrastructure, re- (1) (1A) (1B) (1C) (2) (3) place “197” with “197(2)”.
In section 5(1), replace the definition of community outcomes with: “community outcomes means the outcomes that a local au- thority aims to achieve in meeting the current and future needs of communities for good-quality local infrastructure, local public services, and performance of regulatory functions”.

In section 5(1), definition of development contribution, re- place “197” with “197(2)”.

In section 5(1), definition of development contribution pol- icy, replace “197” with “197(2)”.
In section 5(1), definition of network infrastructure, replace “197” with “197(2)”.

In section 5(1), definition of significance, replace paragraph (a) with: “(a) In section 5(1), insert in their appropriate alphabetical order: “affected,— “(a) in relation to a local authority, means a local authority whose district or region contains an affected area: in relation to a territorial authority, means a territorial authority whose district contains an affected area the district or region:”.
“(b) 12 27—2/SOP No 153 Proposed amendments to the Local Government Act 2002 Amendment Bill Part 1 cl 8 “affected area has the same meaning as in clause 1 of Schedule 3 “good-quality, in relation to local infrastructure, local pub- lic services, and performance of regulatory functions, has the meaning given in section 10(2) “remuneration and employment policy means a policy adopted by a local authority under clause 36A of Schedule 7”.
In section 5(1), repeal the definitions of reorganisation pro- posal and reorganisation scheme.

Section 8 amended (Act binds the Crown) In section 8(2)(c), replace “and Schedule 15 (which relate” with “(which relates”.
Section 10 amended (Purpose of local government) Replace section 10(b) with: “(b) to meet the current and future needs of communities for good-quality local infrastructure, local public services, and performance of regulatory functions in a way that is most cost-effective for households and businesses.” In section 10, insert as subsection (2): In this Act, good-quality, in relation to local infrastructure, local public services, and performance of regulatory functions, means infrastructure, services, and performance that are— “(a) “(b) “(c) efficient; and effective; and appropriate to present and anticipated future circum- stances.” (4) 6 7 (1) (2) “(2) 8 (1) Section 14 amended (Principles relating to local authorities) Replace section 14(1)(c)(iii) with: “(iii) the likely impact of any decision on the interests referred to in subparagraphs (i) and (ii):”.
(2) In section 14(1)(h)(i), replace “well-being” with “interests”.

27—2/SOP No 153 13 Part 1 cl 8A Proposed amendments to the Local Government Act 2002 Amendment Bill (3) In section 14(2), delete “, or any aspects of well-being referred to in section 10, are in”.

8A Section 16 amended (Significant new activities proposed by regional council) In section 16(8)(d), replace “proposal” with “application under Schedule 3”.
9 Section 23 amended (Description of local government) After section 23(3), insert: “(3A) However, a territorial authority created as a unitary authority after the commencement of this subsection 1 July 2013 must be described as ‘[name of city or district] Council’.” 10AA New section 24AA inserted (Purpose of local government reorganisation) In Part 3, after the subpart 2 heading, insert: “24AA Purpose of local government reorganisation The purpose of the local government reorganisation provisions of this Act is to improve the effectiveness and efficiency of local government by— “(a) providing communities with the opportunity to initiate, and participate in considering, alternative local govern- ment arrangements for their area; and requiring the Commission, in consultation with commu- nities, to identify, develop, and implement in a timely manner the option that best promotes good local gov- ernment.” “(b) 10 (1) (2) (3) (4) 14 Section 24 amended (Reorganisation proposals) In the heading to section 24, replace “proposals” with “appli- cations”.
In section 24(1), replace “reorganisation proposal” with “re- organisation application”.

In section 24(2), replace “reorganisation proposals” with “re- organisation applications”.

Repeal section 24(3).
27—2/SOP No 153 Proposed amendments to the Local Government Act 2002 Amendment Bill Part 1 cl 11 10 Section 24 replaced (Reorganisation proposals) Replace section 24 with: Scope of local government reorganisation “24 “(1) Local government reorganisation may provide for 1 or more of the following matters: “(a) “(b) the union of districts or regions: the constitution of a new district or region, including the constitution of a new local authority for that district or region: the abolition of a district or region, including the dissol- ution or abolition of the local authority for that district or region: the alteration of the boundaries of any district or region: the transfer of a statutory obligation from one local au- thority to another: the assumption by a territorial authority of the powers of a regional council.
“(c) “(d) “(e) “(f) “(2) Schedule 3 applies in relation to local government reorgan- isation.” 11 New section 24A inserted (Transitional modification or suspension of certain statutory requirements after issue of final proposal for reorganisation) After section 24, insert: “24A Transitional modification or suspension of certain statutory requirements after issue of final proposal for reorganisation “(1) The purpose of this section is to authorise the extension or postponement of certain statutory requirements after public notice of a final reorganisation proposal relating to local gov- ernment reorganisation is given under clause 19 of Sched- ule 3, but before the fate of the final reorganisation proposal is known.
“(1A) This section applies to a final reorganisation proposal only if the proposal provides for any of the matters specified in sec- tion 24(1)(a), (b), (c), or (f).
“(2) The Governor-General may, by Order in Council, in relation to an affected local authority,— 27—2/SOP No 153 15 Part 1 cl 11 Proposed amendments to the Local Government Act 2002 Amendment Bill “(a) extend, for a period not exceeding 12 months, the time by which the local authority would otherwise have to complete, within the transition specified period, any ac- tion relating to the preparation or adoption of any plan, policy, or strategy required by or under any enactment: “(ab) extend the time by which the local authority would otherwise have to complete anything relating to, and dependent or consequential on, the action in relation to which the period has been extended under paragraph (a): “(b) postpone, to a date not more than 12 months after the date determined under section 10 of the Local Electoral Act 2001, the next triennial general election of members of the local authority.
“(2A) However, the power under subsection (2)(b) may be exer- cised only if the triennial election, or any action or process preliminary to holding it, would otherwise be required to be held or taken in the specified period.
“(3) An Order in Council may be made only— “(a) during a transition the specified period; and “(b) on the recommendation of the Minister; and “(c) if the Minister is satisfied that the Order in Council is— necessary to avoid public confusion or waste of “(i) public resources; or in the interests of the district of the affected local authority; and “(ii) “(4) “(d) with the agreement of— the affected local authority; and the Commission.
“(i) “(ii) In this section,— “affected local authority means a local authority that would be affected if a final reorganisation proposal resulted in a re- organisation scheme “transition specified period means the period— “(a) beginning on the date on which public notice is given of the final proposal under clause 19 of Schedule 3; and 16 27—2/SOP No 153 Proposed amendments to the Local Government Act 2002 Amendment Bill Part 1 cl 12 “(b) ending on the date— close of the date that is 9 months after the day on which public notice is given under clause 19 of Schedule 3.
“(i) by which a petition demanding a poll must be re- ceived by the Commission, if no petition is re- ceived; or “(ii) on which a poll is held, if a petition demanding a poll is received by the Commission in accordance with clause 21 of Schedule 3.” 12 (1) (2) Section 25 amended (Order in Council to give effect to reorganisation schemes) In section 25(3), replace “67” with “34”.

In section 25(4), replace “Clauses 68 to 70” with “Clauses 41 to 43”.
(3) After section 25(5), insert: “(6) An Order in Council giving effect to a reorganisation scheme is not invalid because it is inconsistent with the provisions of the scheme if the inconsistency relates— “(a) to corrections of clerical, grammatical, or typographical errors; or to matters of a formal or referential nature that do not alter the substance or effect of the scheme.” “(b) 12 Section 25 replaced (Order in Council to give effect to reorganisation schemes) Replace section 25 with: “25 Order in Council to give effect to final proposals and reorganisation schemes “(1) A final proposal— is given effect to by Order in Council; and “(a) “(b) has effect on and from the date specified for this purpose by Order in Council.
“(2) An Order in Council made under subsection (1)— “(a) must establish and provide for 1 or more transition bod- ies in accordance with— “(i) clauses 28A to 28H of Schedule 3; and 27—2/SOP No 153 17 Part 1 cl 12 Proposed amendments to the Local Government Act 2002 Amendment Bill “(ii) the provisions in the final proposal relating to transitional matters; and “(b) may, with the agreement of the Commission, suspend any statutory requirement that an affected local author- ity would otherwise be subject to before a final proposal comes into effect, but only if the coming into effect of the final proposal would make compliance with the statutory requirement unnecessary or inappropriate.
“(3) An Order in Council made under subsection (1) may, if ap- propriate, amend Part 1 or Part 2 of Schedule 2.

“(4) A reorganisation scheme— is given effect to by Order in Council; and “(a) “(b) has effect on and from the date specified by Order in Council made under subsection (1)(a).
“(5) An Order in Council giving effect to a final proposal or re- organisation scheme is not invalid because it is inconsistent with the provisions of the final proposal or scheme if the in- consistency relates— “(a) to corrections of clerical, grammatical, or typographical errors; or to matters of a format or referential nature that do not alter the substance or effect of the final proposal or scheme.
“(b) “(6) If a reorganisation scheme does not specifically provide for a matter that the Secretary considers to be necessary, desirable, or incidental as a consequence of the scheme,— “(a) the Secretary must consult with the Commission, and each affected local authority, about the inclusion of the matter in the Order in Council under subsection (4); and the matter may be included in the Order in Council if considered appropriate by the Governor-General in Council.
“(b) “(7) Clauses 34 and 34A of Schedule 3 apply in respect of each reorganisation scheme that is given effect to by Order in Coun- cil, except to the extent that the reorganisation scheme pro- vides that the clauses are— “(a) amended in their application by the reorganisation scheme; or 18 27—2/SOP No 153 Proposed amendments to the Local Government Act 2002 Amendment Bill Part 1 cl 12A “(b) declared not to apply.
“(8) Clauses 37 to 43 of Schedule 3 apply to each reorganisation “(9) scheme that is given effect to by Order in Council.
In this section,— “final proposal means a final proposal to which clause 28A of Schedule 3 applies “reorganisation scheme means a reorganisation scheme pre- pared and issued under clause 29(2) of Schedule 3.” 12A New section 26A inserted (Duties of local authorities in relation to local government reorganisation) After section 26, insert: “26A Duties of local authorities in relation to local government “(1) reorganisation It is the duty of every local authority to co-operate with, give reasonable assistance to, and provide information to the Com- mission to enable it to perform its functions and exercise its powers in relation to local government reorganisation.
“(2) Without limiting subsection (1), an affected local authority must comply with any lawful request by the Commission for information held or reasonably available to the local authority that may be relevant to a proposed reorganisation or to the development of a reorganisation scheme.
“(3) An affected local authority must not make a decision described in subsection (4) at any time after an Order in Council giving effect to a final proposal is made under section 25, without first consulting the Commission.
“(4) Subsection (3) applies to any decision of an affected local authority that may, directly or because of its consequences,— significantly prejudice the implementation of the final “(a) proposal; or significantly constrain the powers or capacity of any local authority to be established or changed under the final proposal, or any subsidiary of any such local au- thority, following the implementation of the final pro- posal; or “(b) 27—2/SOP No 153 19 Part 1 cl 12B Proposed amendments to the Local Government Act 2002 Amendment Bill “(c) have a significant negative impact on the assets or li- abilities that may be transferred to any local authority in the implementation of the final proposal.” 12B Section 27 amended (Application to be called city council or district council) In section 27(1), replace “proposal” with “application under Schedule 3”.
13 New section 27A inserted (Change of name of unitary authorities) sections 27A and 27B inserted After section 27, insert: “27A Change of name of unitary authorities “(1) A unitary authority that is described as a city council or district council may apply to the Minister to change its name to the ‘[name of city or district] Council’.

“(2) The Governor-General may, by Order in Council made on the recommendation of the Minister, give effect to the application.
“(3) The Order in Council may consequentially amend Part 2 of Schedule 2.
“27B Orders in Council to be published in Gazette An Order in Council made under any of sections 24A to 27A must be published in the Gazette.” 13A Section 31 amended (Report to Minister on matters relating to local government) After section 31(1), insert: “(1A) The Commission may consider, report on, and make recom- mendations to the Minister or any relevant local authority, or both, on any matter arising in the performance of its functions and exercise of its powers under Schedule 3.” 14 20 New section 31A inserted (Minister’s expectations of Commission in relation to local government reorganisation) After section 31, insert: 27—2/SOP No 153 Proposed amendments to the Local Government Act 2002 Amendment Bill Part 1 cl 15 “31A Minister’s expectations of Commission in relation to local government reorganisation “(1) The Minister may, by notice in the Gazette writing to the Commission, specify measures and expectations relating to the Commission’s performance of its functions and exercise of its powers under Schedule 3.
“(2) Without limiting subsection (1), the Minister may specify— the time frames within which the Commission is ex- pected to complete specified matters: “(a) “(b) which reorganisation applications are to be regarded by the Commission as having a higher priority.

“(3) The Minister may consult the Commission and any other per- sons and organisations that the Minister considers appropriate to consult before specifying measures and expectations under this section.
“(3) Before specifying measures and expectations under this sec- tion, the Minister— “(a) must consult the Commission; and “(b) may consult any other persons or organisations that the Minister considers appropriate to consult.
“(3A) The Commission must publish, on its Internet site,— “(a) “(b) any measures and expectations given to it by the Min- ister under subsection (1); and a statement of the impact that meeting those measures and expectations will have on the performance of its functions and exercise of its powers under Schedule 3.
“(4) The Commission must, in its report to the Minister under clause 31 of Schedule 4, describe how and the extent to which it has met the measures and expectations specified under subsection (1).” 15 Section 40 amended (Local governance statements) After section 40(1)(j), insert: “(ja) the remuneration and employment policy, if adopted; and”.
27—2/SOP No 153 21 Part 1 cl 16 Proposed amendments to the Local Government Act 2002 Amendment Bill 16 New section 41A inserted (Role and powers of mayors) After section 41, insert: “41A Role and powers of mayors “(1) The role of a mayor is to provide leadership to— “(a) “(b) the other members of the territorial authority; and the people in the district of the territorial authority.
“(2) Without limiting subsection (1), it is the role of a mayor to lead the development of the territorial authority’s plans (in- cluding the long-term plan and the annual plan), policies, and budgets for consideration by the members of the territorial au- thority.
“(3) For the purposes of subsections (1) and (2), a mayor has the following powers: “(a) “(b) “(c) to appoint the deputy mayor: to establish committees of the territorial authority: to appoint the chairperson of each committee estab- lished under paragraph (b), and, for that purpose, a mayor— “(i) may make the appointment before the other members of the committee are determined; and “(ii) may appoint himself or herself.
“(3A) However, nothing in subsection (3) limits or prevents a ter- ritorial authority from— “(a) removing, in accordance with clause 18 of Schedule 7, a deputy mayor appointed by the mayor under subsec- tion (3)(a); or “(b) discharging or reconstituting, in accordance with clause 30 of Schedule 7, a committee established by the mayor under subsection (3)(b); or appointing, in accordance with clause 30 of Schedule 7, 1 or more committees in addition to any established by the mayor under subsection (3)(b); or “(c) “(d) discharging, in accordance with clause 31 of Schedule 7, a chairperson appointed by the mayor under subsec- tion (3)(c).
“(4) A mayor is a member of each committee of a territorial author- ity.

22 27—2/SOP No 153 Proposed amendments to the Local Government Act 2002 Amendment Bill Part 1 cl 19A “(4A) To avoid doubt, a mayor must not delegate any of his or her powers under subsection (3).
“(5) To avoid doubt,— “(a) “(b) clause 17(1) of Schedule 7 does not apply to the election of a deputy mayor of a territorial authority unless the mayor of the territorial authority declines to exercise the power in subsection (3)(a): clauses 25 and 26(3) of Schedule 7 do not apply to the appointment of the chairperson of a committee of a ter- ritorial authority established under subsection (3)(b) unless the mayor of the territorial authority declines to exercise the power in subsection (3)(c) in respect of that committee.” 17 (1) (2) 18 Section 42 amended (Chief executive) In section 42(2)(g), after “staff of the local authority”, insert “(in accordance with any remuneration and employment pol- icy)”.
In section 42(2)(h), after “authority”, insert “(in accordance with any remuneration and employment policy)”.

Section 48 amended (Further provisions of Schedule 7) After section 48(j), insert: “(k) adoption of a remuneration and employment policy.” 18A Section 49 amended (Establishment of community boards) In section 49(1)(a), replace “giving effect to a reorganisation scheme” with “made under section 25”.
19 Section 77 amended (Requirements in relation to decisions) In section 77(1)(b)(i), replace “social, economic, environmen- tal, and cultural well-being” with “interests”.

19A Section 84 amended (Special consultative procedure in relation to long-term plan) In section 84(4), replace “local authority’s auditor” with “Auditor-General”.
27—2/SOP No 153 23 Part 1 cl 19B Proposed amendments to the Local Government Act 2002 Amendment Bill 19B Section 94 amended (Audit of long-term plan) (1) In section 94(1), replace “local authority’s auditor” with “Auditor-General”.

In section 94(2), replace “auditor” with “Auditor-General”.

(2) 19C Section 99 amended (Audit of information in annual report and summary) In section 99(1) and (2), replace “auditor’s” with “Auditor- General’s”.
20 Section 101 amended (Financial management) In section 101(3)(b), delete “current and future social, eco- nomic, environmental, and cultural well-being of the”.

(2) “(2) 20A Section 197 amended (Interpretation) (1) In section 197, repeal the definitions of community facilities, community infrastructure, development contribution, development contribution policy, network infrastructure, and service connection.
In section 197, insert as subsection (2): In this Act, unless the context otherwise requires,— “community facilities means reserves, network infrastruc- ture, or community infrastructure for which development contributions may be required in accordance with section 199 “community infrastructure means— “(a) land, or development assets on land, owned or con- trolled by the territorial authority to provide public amenities; and includes land that the territorial authority will acquire for that purpose “(b) “development contribution means a contribution— “(a) provided for in a development contribution policy of a territorial authority; and calculated in accordance with the methodology; and comprising— “(i) money; or “(ii) land, including a reserve or esplanade reserve (other than in relation to a subdivision consent), “(b) “(c) 24 27—2/SOP No 153 Proposed amendments to the Local Government Act 2002 Amendment Bill Part 1 cl 21 but excluding Māori land within the meaning of Te Ture Whenua Maori Act 1993, unless that Act provides otherwise; or “(iii) both “development contribution policy means the policy on de- velopment contributions adopted under section 102(1) “network infrastructure means the provision of roads and other transport, water, wastewater, and stormwater collection and management “service connection means a physical connection to a service provided by, or on behalf of, a territorial authority.” 21 Part 10 replaced Replace Part 10 with: “Part 10 “Powers of Minister to act in relation to local authorities “253 Outline of Part This Part confers powers on the Minister to— “(a) “(b) assist local authorities in certain situations; and intervene in the affairs of local authorities in certain situations.
“253A How this Part works “(1) This section is a guide to the overall scheme and effect of this Part.

It does not affect the interpretation or application of the other provisions of this Part.

“(2) Subpart 1 of this Part provides the Minister with a range of options in relation to a local authority that has a problem.

The options are available only in relation to the local authority it- self, and not to any entity that the local authority may control or have an interest in.
“(3) The options vary according to the nature and scale of assist- ance or intervention required to address the problem.

“(4) The options are not a hierarchy of actions that the Minister must employ sequentially in relation to a local authority.

27—2/SOP No 153 25 Part 1 cl 21 Proposed amendments to the Local Government Act 2002 Amendment Bill “(5) Accordingly, the Minister may exercise an option in relation to a local authority without having previously exercised 1 or more of the other options.
“(6) Subpart 2 of this Part sets out general provisions applying to all the options the Minister may exercise under subpart 1.

“(7) The provisions in subpart 2 of this Part are largely procedural in nature and cover matters including notification of the as- sistance or intervention, reporting requirements, and payment and protection for the individuals carrying out the assistance or intervention.
“253B Application of this Part The Minister may appoint a Ministerial body under subpart 1 of this Part only to a local authority and not to any entity that the local authority may control or have an interest in, for example, a council-controlled organisation, council-controlled trading organisation, council organisation, or other subsidiary of the local authority.
“254 Interpretation In this Part,— “Commission means a commission appointed under section 258D “Ministerial appointee means a person appointed under sub- part 1 of this Part as a Crown Manager or a Crown Observer, or as a member of a Crown Review Team or of a Commission “Ministerial body means a Crown Review Team, a Crown Observer, a Crown Manager, or a Commission appointed under subpart 1 of this Part “problem, in relation to a local authority,— “(a) means— “(i) a matter or circumstance relating to the manage- ment or governance of the local authority that de- tracts from, or is likely to detract from, its ability to give effect to the purpose of local government within its district or region; or 26 27—2/SOP No 153 Proposed amendments to the Local Government Act 2002 Amendment Bill Part 1 cl 21 “(ii) “(ia) a significant or persistent failure by the local au- thority to perform 1 or more of its functions or duties under any enactment; or the consequences of a state of emergency (within the meaning of section 4 of the Civil Defence Emergency Management Act 2002) affecting, or recently affecting, the local authority’s district or region; and “(b) includes— “(i) a failure by the local authority to demonstrate prudent management of its revenues, expenses, assets, liabilities, investments, or general finan- cial dealings in terms of any parameters or bench- marks prescribed by regulations made under sec- tion 259(1)(dc); and a potential problem within the meaning of para- graph (a)(i) or (ia) subparagraph (i) of
 this paragraph; and “(ii) “(iii) to avoid doubt, 2 or more problems within the meaning of paragraph (a) or subparagraph (i) or (ii) of this paragraph “public notice, in relation to notice given by the Minister, “(a) means a notice published— “(i) in a newspaper circulating in the district or region of the local authority; and “(ii) on the Internet site of the department responsible for the administration of this Act; and “(b) includes any other notice that the Minister thinks desir- able in the circumstances “significant, in relation to a problem of a local authority, means that the problem will have actual or probable adverse consequences for residents and ratepayers within the district or region of the local authority.
27—2/SOP No 153 27 Part 1 cl 21 Proposed amendments to the Local Government Act 2002 Amendment Bill “Subpart 1—Ministerial powers of assistance and intervention “Minister may require information from local authority “255 Minister may require information “(1) The Minister may, by notice in writing, require a local author- ity to provide to him or her information on the nature and ex- tent of a problem and how the local authority is addressing or planning to address the problem if the Minister believes, on reasonable grounds, that— “(a) “(b) a problem relating to the local authority may exist; and the local authority— “(i) has not publicly acknowledged the nature and extent of the problem; or “(ii) may be unable or unwilling to effectively address the problem.
“(1A) The Minister may, by notice in writing, require a local au- thority to provide to him or her information on how the local authority is addressing or planning to address a problem— “(a) after the expiry of the term of a Ministerial body ap- pointed to assist or intervene in relation to the problem; and for the purpose of the Minister assessing whether fur- ther action under this Part is required.
“(b) “(2) A notice under this section must state— “(a) “(b) “(c) “(d) the problem; and the information required by the Minister; and the form in which the information is to be provided; and the date by which the information is to be provided.

“(3) A local authority must respond to a notice received under this section— “(a) “(b) by any other date to which the Minister has agreed.
by the date stated in the notice; or “(4) The Minister may require a local authority to provide informa- tion under this section— “(a) “(b) by instalments at specified intervals.
by instalments at specified dates: 28 27—2/SOP No 153 Proposed amendments to the Local Government Act 2002 Amendment Bill Part 1 cl 21 “(5) The Minister may require a local authority to provide infor- mation under this section in relation to a problem on which in- formation has already been requested and provided under the section.
“Minister may appoint Crown Review Team “256 Minister may appoint Crown Review Team “(1) The Minister may appoint a Crown Review Team to a local authority if— “(a) “(b) “(c) “(c) the local authority has received a notice from the Min- ister under section 255 section 255(1) and, for no good reason, has not provided the information required by the notice by the stated or agreed date; or the Minister concludes, from information provided by the local authority under section 255 or otherwise, that there may be a significant problem that the local author- ity is unable or unwilling to effectively address; or the Minister believes, on reasonable grounds, that— “(i) a significant problem relating to the local author- ity may exist; and the local authority is unable or unwilling to ef- fectively address the problem; or “(ii) the Minister believes, on reasonable grounds, that a sig- nificant problem relating to the local authority may exist and— “(i) the local authority is unable or unwilling to ef- fectively address the problem; or a Ministerial body currently or previously ap- pointed to the local authority has recommended the appointment; or “(ii) “(d) the Minister has received a written request from the local authority to do so.
“(2) Before the review begins, the Minister must give notice of the to the local authority, in writing; and appointment— “(a) “(b) by notice in the Gazette.

; and “(c) by public notice.

“(3) Each notice must comply with section 258M.


27—2/SOP No 153 29 Part 1 cl 21 Proposed amendments to the Local Government Act 2002 Amendment Bill “(4) The A Crown Review Team must, to the extent authorised by its terms of reference,— “(a) investigate and report on the nature and extent of the problem; and “(b) make recommendations to the local authority and the Minister on how the local authority could address the problem.
; and “(c) make recommendations to the Minister on whether the Minister should take further action in relation to the local authority, including whether the Minister should appoint any other Ministerial body to the local author- ity; and ensure, as far as practicable, that the existing organisa- tional capability of the local authority is not diminished.
“(4A) If applicable, and to the extent authorised by its terms of refer- ence, a Crown Review Team must also investigate, and report on, any related matter as recommended by a Ministerial body currently or previously appointed to the local authority.
“(d) “(5) The A local authority must— “(a) “(b) co-operate with the a Crown Review Team so that it may fulfil its terms of reference; and comply with any reasonable request of the Crown Re- view Team to provide any relevant information that the local authority holds.

“(6) The A Crown Review Team must produce a final report that complies with section 258O, as soon as practicable after the a review is completed.

“(7) This section is subject to section 258K.


“257 How Crown Review Team appointed “(1) A Crown Review Team comprises 1 or more members.

“(2) If a Crown Review Team comprises 2 or more members, the Minister must appoint 1 member as the chairperson.

“(3) The Minister must appoint each member of a Crown Review Team by notice in writing.
The notice must include the fol- lowing information: “(a) the terms of reference of the Crown Review Team, in- cluding— 30 27—2/SOP No 153 Proposed amendments to the Local Government Act 2002 Amendment Bill Part 1 cl 21 “(i) an outline of the problem in relation to which it has been appointed; and the extent of its authority; and “(ii) the start and end dates of the member’s appointment; and the start and end dates of the review period.
“(b) “(c) “Minister may appoint Crown Observer “258 Minister may appoint Crown Observer “(1) The Minister may appoint a Crown Observer to a local author- ity if— “(a) “(b) “(b) a Crown Review Team appointed to the local authority has recommended that a Crown Observer be appointed to the local authority; or the Minister believes, on reasonable grounds, that a sig- nificant problem relating to the local authority exists and that the appointment of a Crown Observer is— “(i) necessary to enable, or better enable, the local authority to effectively address the problem; or “(ii) necessary to enable, or better enable, the Min- ister to monitor the local authority’s progress in addressing the problem; or the Minister believes, on reasonable grounds, that a sig- nificant problem relating to the local authority exists and— “(i) the appointment of a Crown Observer is neces- sary to enable, or better enable, the local author- ity to effectively address the problem; or the appointment of a Crown Observer is neces- sary to enable, or better enable, the Minister to monitor the local authority’s progress in address- ing the problem; or “(ii) “(iii) a Ministerial body currently or previously ap- pointed to the local authority has recommended the appointment; or the Minister has received a written request from the local authority to do so.
“(c) “(2) Before the observation period begins, the Minister must give notice of the appointment— 27—2/SOP No 153 31 Part 1 cl 21 Proposed amendments to the Local Government Act 2002 Amendment Bill to the local authority, in writing; and “(a) “(b) by notice in the Gazette.

; and “(c) by public notice.

“(3) Each notice must comply with section 258M.
“(4) A Crown Observer must, to the extent authorised by his or her terms of reference,— “(a) assist the local authority to— “(i) “(ii) address the problem; and implement the recommendations of the Crown Review Team, if applicable; and assist the local authority to address the problem; and “(a) “(b) monitor the local authority’s progress in relation to the problem; and “(d) “(c) make recommendations to the Minister on whether the Minister should take further action in relation to the local authority., including whether the Minister should appoint any other Ministerial body to the local author- ity; and ensure, as far as practicable, that the existing organisa- tional capability of the local authority is not diminished.
“(4A) If applicable, and to the extent authorised by its terms of ref- erence, a Crown Observer must also assist the local author- ity with, and monitor progress on, any related matter as rec- ommended by a Ministerial body currently or previously ap- pointed to the local authority.
“(5) The A local authority must— “(a) “(b) co-operate with the a Crown Observer so that he or she may fulfil his or her terms of reference; and comply with any reasonable request of the Crown Ob- server to provide any relevant information that the local authority holds.

“(6) The A Crown Observer must produce a final report that com- plies with section 258O, as soon as practicable after the an observation period ends.

“(7) This section is subject to section 258K.


32 27—2/SOP No 153 Proposed amendments to the Local Government Act 2002 Amendment Bill Part 1 cl 21 “258A How Crown Observer appointed The Minister must appoint a Crown Observer by notice in writ- ing.
The notice must include the following information: “(a) the terms of reference of the Crown Observer, includ- ing— “(i) an outline of the problem in relation to which the Crown Observer has been appointed; and the extent of his or her authority; and “(ii) the start and end dates of the appointment; and the start and end dates of the observation period.
“(b) “(c) “Minister may appoint Crown Manager “258B Minister may appoint Crown Manager “(1) The Minister may appoint a Crown Manager to a local author- ity if— “(a) “(b) “(c) “(c) a Crown Review Team or a Crown Observer appointed to the local authority has recommended that a Crown Manager be appointed to the local authority; or the Minister believes, on reasonable grounds, that a sig- nificant problem relating to the local authority exists and, for no good reason, the local authority has not ad- equately implemented a recommendation of a Crown Review Team or Crown Observer in relation to the prob- lem; or the Minister believes, on reasonable grounds, that a sig- nificant problem relating to the local authority exists and the nature or extent of the problem is such that the local authority is unlikely to effectively address the problem without the appointment of a Crown Manager; or the Minister believes, on reasonable grounds, that a sig- nificant problem relating to the local authority exists, and— “(i) the nature or extent of the problem is such that the local authority is unlikely to effectively address the problem without the appointment of a Crown Manager; or for no good reason, the local authority has not ad- equately implemented a recommendation of any “(ii) 27—2/SOP No 153 33 Part 1 cl 21 Proposed amendments to the Local Government Act 2002 Amendment Bill other Ministerial body in relation to the problem; or “(iii) a Ministerial body currently or previously ap- pointed to the local authority has recommended the appointment; or the Minister has received a written request from the local authority to do so.
“(d) “(2) To avoid doubt, the Minister may appoint a Crown Manager to a local authority without having first appointed a Crown Review Team or a Crown Observer to the local authority.

“(3) Before the management period begins, the Minister must give to the local authority, in writing; and notice of the appointment— “(a) “(b) by notice in the Gazette.

; and “(c) by public notice.

“(4) Each notice must comply with section 258M.


“(5) A Crown Manager must, to the extent authorised by his or her terms of reference, direct the local authority to act to address the problem.
“(5) A Crown Manager must, to the extent authorised by his or her terms of reference,— “(a) direct the local authority to act to address the problem; and “(d) “(b) make recommendations to the Minister on whether the Minister should take further action in relation to the local authority, including whether the Minister should appoint any other Ministerial body to the local author- ity; and ensure, as far as practicable, that the existing organisa- tional capability of the local authority is not diminished.
“(5A) If applicable, and to the extent authorised by its terms of ref- erence, a Crown Manager must also direct the local authority on any related matter as recommended by a Ministerial body currently or previously appointed to the local authority.

“(6) The local authority must comply with the Crown Manager’s directions and any reasonable request he or she makes to pro- vide any relevant information that the local authority holds.
“(6) A local authority must— 34 27—2/SOP No 153 Proposed amendments to the Local Government Act 2002 Amendment Bill Part 1 cl 21 “(a) “(b) “(c) co-operate with a Crown Manager so that he or she may fulfil his or her terms of reference; and comply with the directions of a Crown Manager; and comply with any reasonable request of a Crown Man- ager to provide any relevant information that the local authority holds.
“(7) The A Crown Manager must produce a final report that com- plies with section 258O, as soon as practicable after the a management period ends.

“(8) This section is subject to section 258K.

“258C How Crown Manager appointed The Minister must appoint a Crown Manager by notice in writ- ing.
The notice must include the following information: “(a) the terms of reference of the Crown Manager, includ- ing— “(i) an outline of the problem in relation to which the Crown Manager has been appointed; and the extent of his or her authority; and “(ii) the start and end dates of the Crown Manager’s appoint- ment; and the start and end dates of the management period.
“(b) “(c) “Minister may appoint Commission “258D Minister may appoint Commission “(1) The Minister may appoint a Commission for to a local author- ity if— “(a) the Minister believes, on reasonable grounds, that— “(i) a significant problem relating to the local author- ity— “(A) is impairing, or likely to impair, the good local government of the local authority’s district or region; or is endangering, or likely to endanger, the public health or safety of the people within the local authority’s district or region; and the local authority is unable or unwilling to ef- fectively address the problem; and “(B) “(ii) 27—2/SOP No 153 35 Part 1 cl 21 Proposed amendments to the Local Government Act 2002 Amendment Bill “(iii) the problem is such that appointing a Crown Re- view Team, a Crown Observer, or a Crown Man- ager to the local authority is unlikely to prevent the consequences described in subparagraph (i); or a Crown Review Team, a Crown Observer, or a Crown Manager appointed to the local authority has recom- mended that a Commission be appointed for the local authority and the Minister is satisfied that the appoint- ment is necessary to effectively address a significant problem; or the local authority refuses or is unable to comply with a direction of a Crown Manager given under section 258B(5); or “(b) “(c) “(ca) the Minister believes, on reasonable grounds, that a significant problem relating to the local authority exists and a Ministerial body currently or previously appointed to the local authority has recommended the appointment; or the Minister has received a written request from the local authority to do so.
“(d) “(2) Before the Commission begins its term, the Minister must give notice of the Commission’s appointment— “(a) to the local authority, in writing; and “(b) by notice in the Gazette.

; and “(c) by public notice.

“(3) Each notice must comply with section 258M.


“(4) A Commission must perform the functions and duties and ex- ercise the powers of the local authority, and its members, under this Act and any other enactment,— “(a) subject only to any limits on its authority set out in the terms of reference; and to the exclusion of the members of the local authority.
“(4) A Commission must perform the functions and duties and ex- ercise the powers of the local authority, and its members, under this Act and any other enactment,— “(a) to the exclusion of the members of the local authority; but subject to— “(b) “(b) 36 27—2/SOP No 153 Proposed amendments to the Local Government Act 2002 Amendment Bill Part 1 cl 21 “(i) “(ii) section 258F; and any limits on its authority set out in the terms of reference.
“(5) To avoid doubt, a Commission— “(a) must perform any functions or exercise any powers di- rectly conferred on the mayor or chairperson, or any other member, of the a local authority by or under any enactment; and “(b) may exercise all the powers of the local authority to set, assess, and collect rates and charges within the district or region and expend their proceeds; and “(c) may appoint members of the local authority to a com- mittee or subcommittee established under Schedule 7 of this Act.
“(5A) A Commission must also, to the extent authorised by its terms of reference,— “(a) make recommendations to the Minister on whether the Minister should take further action in relation to the local authority, including whether the Minister should appoint any other Ministerial body to the local author- ity; and if applicable, implement the recommendations of a Ministerial body currently or previously appointed to the local authority.
“(b) “(5B) A Commission must ensure, as far as practicable, that the existing organisational capability of the local authority is not diminished.

“(6) The A Commission must produce a final report that complies with section 258O, as soon as practicable after the term of the Commission ends.

“(7) This section is subject to section 258K.

“258E How Commission appointed “(1) A Commission comprises 1 or more members.
“(2) If a Commission comprises 2 or more members, the Minister must appoint 1 member as the chairperson.

27—2/SOP No 153 37 Part 1 cl 21 Proposed amendments to the Local Government Act 2002 Amendment Bill “(3) The Minister must appoint each member of a Commission by notice in writing.
The notice must include the following infor- mation: “(a) the terms of reference of the Commission, including— an outline of the problem in relation to which it “(i) has been appointed; and “(ii) any limitations on the extent of its authority; and the start and end dates of the member’s appointment; and the start and end dates of the Commission’s term period in which the Commission is to perform the local author- ity’s functions and duties and exercise its powers.
“(b) “(c) “258F Application of this and other enactments during Commission’s term of appointment “(1) This section applies during the period in which a Commission is appointed for to perform the functions and duties and exer- cise the powers of a local authority under section 258D.

“(2) This Act applies, with any necessary modifications, as if the Commission were the local authority.
“(2) This Act and any other enactment applies, with any necessary modifications, as if the Commission were the governing body of the local authority and responsible for the decision-making of the local authority.

“(2A) Without limiting subsection (2), clauses 31, 32, and 32A of Schedule 7 apply as if the members of the Commission were elected members of the local authority.
“(3) For the purposes of clauses 31, 32, and 32A of Schedule 7, but not otherwise, this Act applies as if members of the Commis- sion were elected members of the local authority.

“(4) A document that is required to be executed under the seal of the local authority may be executed under the seal and verified by the signature of the chairperson of the Commission, or the Commission, if there is no chairperson.
“(5) All acts done by the Commission in the purported exercise of the powers of the local authority under this or any other enactment, whether the powers have been expressly limited in the terms of reference or not, are, except in the case of fraud, 38 27—2/SOP No 153 Proposed amendments to the Local Government Act 2002 Amendment Bill Part 1 cl 21 as valid as if the Commission had not been appointed and the acts had been done by the local authority in the ordinary course of its business.
“258G Minister may postpone general election when appointing Commission “(1) The Minister may, at the same time as appointing a Commis- sion for a local authority under section 258D, postpone the next triennial general election for members of the local author- ity.
“(1) The Minister may postpone the next triennial general election for members of a local authority— “(a) at the same time as appointing a Commission to a local authority under section 258D; or at any time during the period in which the Commission is performing the local authority’s functions and duties and exercising its powers.
“(b) “(3) “(2) Subsection (1) applies only if the term of the Commission extends more than 120 days beyond the date of that election as determined under section 10 of the Local Electoral Act 2001.

If the Minister acts under subsection (1), he or she must, before the term of the Commission ends, call a general election of the local authority by notice in the Gazette.
If the Minister acts under subsection (1), he or she must— “(a) give public notice of the postponement; and “(b) before the term of the Commission ends,— “(3) “(i) call a general election of the local authority by notice in the Gazette; and “(ii) give public notice of the calling of the election.

“(4) The notice must specify the date on which the election is to be held, which must be no later than 7 days before the date on which the term of the Commission ends.
“(4) Each notice given under subsection (3)(b)— “(a) must specify the date on which the election is to be held, which must be no later than 7 days before the date on which the term of the Commission ends; and 27—2/SOP No 153 39 Part 1 cl 21 Proposed amendments to the Local Government Act 2002 Amendment Bill “(b) if section 258GA applies, must include a statement setting out the effect of the Minister’s decision under that section.
“(5) The Local Electoral Act 2001 applies, with any necessary modifications, to the conduct of an election called by the Minister under this section as if the election were a triennial general election.

“(6) Despite subsection (5), the electoral officer responsible for the election must give notice of the election under section 52 of the Local Electoral Act 2001 no later than 7 days after the Minister gives notice of the election under subsection (4).
“(6) Despite subsection (5), the electoral officer responsible for the election must give notice of the election under section 52 of the Local Electoral Act 2001— “(a) no later than 7 days after the Minister gives notice of the election under subsection (3)(b); and if section 258GA applies, must include a statement in the notice setting out the effect of the Minister’s deci- sion under that section.
“(b) “258GA Timing of election following postponed election “(1) This section applies if— “(a) “(b) the Minister postpones a triennial general election for members of a local authority under section 258G; and the date on which the postponed election is subse- quently held is less than 3 years before the date of the next triennial general election for members of the local authority as determined under section 10 of the Local Electoral Act 2001 (the next triennial election).
“(2) The Minister must decide whether the election for members of the local authority following the postponed election must be held on the date of— “(a) “(b) the next triennial election; or the next subsequent triennial general election as deter- mined under section 10 of the Local Electoral Act 2001 (the second triennial election), in which case subsec- tions (3) to (5) apply.
40 27—2/SOP No 153 Proposed amendments to the Local Government Act 2002 Amendment Bill Part 1 cl 21 “(3) A general election for members of the local authority must not be held on the date of the next triennial election.

Instead, the next general election for members of the local authority must be held on the date of the second triennial election.
“(4) A member of the local authority elected at the postponed elec- tion holds office until he or she vacates office, in accordance with section 116 of the Local Electoral Act 2001, for the sec- ond triennial election.

“(5) Subsection (4) applies unless the member sooner vacates his or her office under clause 5 of Schedule 7 of this Act.
“258H Local authority members remain in office but must not act during term of Commission “(1) Subsection (2) applies to each member of a local authority, including the mayor or chairperson, from the date on which a Commission appointed for to the local authority under sec- tion 258D begins its term.
“(2) A member remains in office but must not act, and is not entitled in that capacity to be paid any salary, allowances, or expenses under this Act or any other enactment, but remains in office or to use any property of the local authority, until the earliest of the following events occurs: “(a) “(b) “(c) “(d) the Commission ends its term, in which case the mem- ber resumes full power to act: a triennial general election is held for the local author- ity under section 10 of the Local Electoral Act 2001, in which case the member vacates office in accordance with section 116 of that Act: a general election is held for the local authority under section 258G, in which case the member vacates of- fice on the date that the member would have vacated office in accordance with section 116 of the Local Elect- oral Act 2001 had the triennial general election not been postponed: a general election is held for the local authority under section 258J, in which case the member vacates office in accordance with section 116 of the Local Electoral Act 2001: 27—2/SOP No 153 41 Part 1 cl 21 Proposed amendments to the Local Government Act 2002 Amendment Bill “(e) the member vacates his or her office in accordance with clause 5(1)(a), (b), (c), or (e) of Schedule 7.
“(3) However, if a Commission appoints a member to a committee or subcommittee in accordance with Schedule 7, the person— “(a) may accept the appointment, in the capacity as a person who has the skills, attributes, or knowledge that will assist the work of the committee or subcommittee; and is entitled to receive payment for holding office as a member of the committee or subcommittee in that cap- acity.
“(b) “(4) In subsection (2), act means to exercise or purport to exer- cise a power, right, or entitlement, or perform or purport to perform a function or duty, conferred or imposed on the mem- ber in his or her capacity as a member of the local authority by this Act or any other enactment.
“258I Extraordinary vacancy when Commission appointed or during term of Commission “(1) This section applies if an extraordinary vacancy (within the meaning of clause 5 of Schedule 7) is created during the term that a Commission is appointed to a local authority.
“(1) This section applies if an extraordinary vacancy (within the meaning of clause 5 of Schedule 7)— “(a) exists at the time a Commission is appointed to a local authority; or is created during the term that a Commission is ap- pointed to a local authority.
“(b) “(2) The vacancy is not required to be filled, and any preparations made by any person towards filling the vacancy in accordance with sections 117 to 120 of the Local Electoral Act 2001 must be abandoned, if the Commission’s term ends after the date of— “(a) a triennial general election for the local authority under section 10 of the Local Electoral Act 2001; or a general election for the local authority under section 258G or 258J.
“(b) “(3) The vacancy must be filled in accordance with sections 117 to 120 of the Local Electoral Act 2001 in any other case except 42 27—2/SOP No 153 Proposed amendments to the Local Government Act 2002 Amendment Bill Part 1 cl 21 that if the vacancy occurs more than 90 days before the end of the term of the Commission, the vacancy must be treated as if it occurred on the 90th day before that date.
“Minister may call general election “258J Minister may call general election “(1) The Minister may, by notice in the Gazette, call a general elec- tion of a local authority if the Minister believes, on reasonable grounds, that the membership of the local authority is such that the local authority is unable or unwilling to perform its func- tions and duties and exercise its powers or there is a significant or persistent failure by the local authority to do so in respect of 1 or more of those functions, duties, and powers.
“(2) The notice must specify the date on which the election is to be held, which, to avoid doubt, may be a date that is earlier than the date of the next triennial general election for members of the local authority as determined under section 10 of the Local Electoral Act 2001.

“(3) The Minister must give the local authority a copy of the Gazette notice as soon as practicable after its publication.
“(3) The Minister must— “(a) give the local authority a copy of the Gazette notice, as soon as practicable after its publication; and “(b) give public notice of the calling of the election and the date on which the election is to be held.

“(4) The Local Electoral Act 2001 applies, with any necessary modifications, to the conduct of an election called by the Minister under this section, as if the election were a triennial general election.
“(5) Despite subsection (4), the electoral officer responsible for the election must give notice of the election under section 52 of the Local Electoral Act 2001 no later than 7 days after the Minister gives notice of the election under subsection (1).
27—2/SOP No 153 43 Part 1 cl 21 Proposed amendments to the Local Government Act 2002 Amendment Bill “Subpart 2—General provisions applying to Ministerial powers conferred under subpart 1 “258KAA Minister may consult any person “(1) The Minister may, but is not obliged to, consult any person, organisation, or group— “(a) when determining what action, if any, to take under sub- part 1 of this Part: “(b) when appointing a Ministerial body under subpart 1 of this Part: “(c) when formulating the terms of reference for a Minister- ial body.
“(2) The Minister may, but is not obliged to, consult any person, organisation, or group— “(a) when postponing a general election under section 258G; or “(b) when calling a general election under section 258J.

“258KAB Minister must publish list in Gazette “(1) The Minister must publish in the Gazette, and on the Internet site of the department responsible for the administration of this Act, a list of matters relevant to determining what action, if any, to take under subpart 1 of this Part.
“(2) Without limiting subsection (1), the list must include the fol- lowing matters: “(a) guiding principles that the Minister is likely to adopt when making decisions under this Part: “(b) matters or circumstances relating to the management or governance of local authorities that the Minister consid- ers are likely to detract from the ability of local author- ities to give effect to the purpose of local government within their districts and regions: the types and sources of information that the Minister is likely to consider when making decisions under this Part.
“(c) “(3) The Minister must review the list no later than 5 years after the date on which the list is published and, subsequently, at intervals of no more than 5 years after the most recent review.

“(4) The list must be republished after each review.
44 27—2/SOP No 153 Proposed amendments to the Local Government Act 2002 Amendment Bill Part 1 cl 21 “(5) Before publishing or republishing a list, the Minister must consult Local Government New Zealand and may, but is not obliged to, consult any other person, organisation, or group.

“(6) The first list must be published no later than 31 March 2013.
“258KAC Minister must have regard to published list “(1) The Minister, when determining what action, if any, to take under subpart 1 of this Part, must have regard to the list pub- lished under section 258KAB.

“(2) To avoid doubt, the Minister may act under subpart 1 of this Part and appoint a Ministerial body to a local authority even if the problem in relation to the local authority does not relate to a matter featured in the list.
“258K Notice to local authority of proposed appointment of Ministerial body “(1) Before appointing a Ministerial body, the Minister must— “(a) “(b) “(c) give the local authority concerned written notice that he or she intends to make the appointment; and state in the notice the reasons for the proposed appoint- ment in terms of section 256(1), 258(1), 258B(1), or 258D(1) and the proposed terms of reference; and give the local authority an opportunity to satisfy the Minister of the following matters, as applicable, by a date specified in the notice, being no earlier than 10 working days after the date on which notice is given to the local authority: “(i) the reasons for making the appointment do not exist: the local authority is acting effectively to address the problem: “(ii) “(iii) for any other reason, the appointment should not be made: “(iv) a different Ministerial body should be appointed.
“(2) The Minister must— “(a) “(b) notify the local authority, in writing, if he or she decides not to appoint a Ministerial body; or act under section 256(2), 258(2), 258B(3), or 258D(2) in any other case.
27—2/SOP No 153 45 Part 1 cl 21 Proposed amendments to the Local Government Act 2002 Amendment Bill “(3) This section does not apply if— “(a) “(b) the local authority has requested the Minister to make the appointment; or the problem in relation to which the Minister intends to make the appointment relates to the consequences of a state of emergency and the Minister believes, on reasonable grounds, that the public health or safety of the people within the local authority’s district or region is, or is likely to be, endangered.
“258L Notice to local authority of proposed general election “(1) Before calling a general election under section 258J, the Minister must— “(a) “(b) “(c) give the local authority concerned written notice that he or she intends to call the election; and state in the notice the reasons for the proposed election in terms of section 258J(1); and give the local authority an opportunity to satisfy the Minister of the following matters, as applicable, by a date specified in the notice, being no earlier than 10 working days after the date on which notice is given to the local authority: the reasons for calling the election do not exist: “(i) “(ii) for any reason, the election should not be called: “(iii) a Ministerial body should be appointed instead.
“(2) The Minister must— “(a) “(b) notify the local authority, in writing, if he or she decides not to call the election; or act under section 258J(3).
“258M Notification of appointment of Ministerial body “(1) A notice of appointment of a Ministerial body under section 256(1), 258(1), 258B(1), or 258D(1) must state the follow- ing: “(a) “(b) “(c) that the Minister has appointed a Ministerial body; and the terms of reference of the Ministerial body; and the start and end dates of the Ministerial body’s appoint- ment; and the names of each member of the Ministerial body; and “(d) 46 27—2/SOP No 153 Proposed amendments to the Local Government Act 2002 Amendment Bill Part 1 cl 21 “(e) if applicable, the name of the chairperson of the Minis- terial body.
“(2) Subsection (3) applies if— “(a) “(b) the notice of appointment relates to a Commission; and the Minister has, at the same time, postponed the next triennial general election for members of the local au- thority under section 258G.

“(3) The notice of appointment must also state that the Minister has postponed the next triennial general election for members of the local authority and that the Minister will call a general election, by notice in the Gazette, before the term of the Com- mission ends.
“258N Notification of change of membership of Ministerial body The Minister must notify any change in the membership of a Ministerial body by notice in the Gazette.
“258O Final report of Ministerial body “(1) A final report produced by a Ministerial body must include the following: “(a) a narrative description of the activities of the Ministerial body in relation to its terms of reference; and in respect of the problem in relation to which the Min- isterial body was appointed, an assessment of progress in addressing the problem; and any final recommendations of the Ministerial body to the Minister, the local authority, or both; and limiting paragraph (c), any final recom- mendations of the Ministerial body to the Minister on whether the Minister should take further action in relation to the local authority, including whether the Minister should appoint any other Ministerial body to the local authority; and any other matter required by the Ministerial body’s terms of reference.
“(b) “(c) “(d) “(ca) without “(2) The Minister must, as soon as practicable,— “(a) give a copy of the report to the local authority; and 27—2/SOP No 153 47 Part 1 cl 21 Proposed amendments to the Local Government Act 2002 Amendment Bill “(b) make the report publicly available, excluding any in- formation that it is necessary to withhold for any of the reasons stated in section 6 or 7 of the Local Government Official Information and Meetings Act 1987.
“258P Remuneration and expenses of Ministerial appointees “(1) A Ministerial appointee is entitled— “(a) “(b) to receive remuneration for services as a member of a Ministerial body as determined by the Minister in ac- cordance with the fees framework; and to be reimbursed for actual and reasonable travelling and other expenses incurred in carrying out his or her office as a member in accordance with the fees frame- work.
“(2) In this section, fees framework means the framework deter- mined by the Government from time to time for the classifica- tion and remuneration of statutory and other bodies in which the Crown has an interest.
“258Q Recovery of expenses from local authority “(1) A local authority owes as a debt to the Crown any expenses that the Crown incurs for the appointment of a Crown Man- ager or a Commission to the local authority, including the pay- ment of remuneration and expenses to the Crown Manager or a member of the Commission.
“(2) Any expenses that the Crown incurs for the appointment of a Crown Observer or a Crown Review Team to a local authority, including the payment of remuneration and expenses to the Crown Observer or a member of the Crown Review Team, may be recovered by the Crown from the local authority if— the Minister decides that to do so is reasonable in the “(a) circumstances; and the terms of reference authorise the recovery.

“(b) “(3) The Crown may recover expenses under subsection (2) as a debt to the Crown.
48 27—2/SOP No 153 Proposed amendments to the Local Government Act 2002 Amendment Bill Part 1 cl 21 “258R Minister may terminate Ministerial body or Ministerial appointee “(1AA) The Minister may terminate the appointment of a Minister- ial body at any time by notice in writing.

“(1AB) The Minister must give notice of the termination— to the local authority, in writing; and “(a) “(b) by notice in the Gazette; and “(c) by public notice.
“(1) The Minister may terminate a Ministerial appointee’s appoint- ment at any time by notice in writing, and no compensation is payable to the person as a result of the termination.
“258S Protection from liability for Ministerial appointees “(1) A Ministerial appointee is not liable for any act done or omit- ted to be done by him or her in good faith in the performance or intended performance of his or her functions, responsibilities and duties, or the exercise of his or her powers as a Ministerial appointee.
“(2) To avoid doubt, this includes— “(a) “(b) acts done or omitted to be done by a Crown Manager when directing a local authority to act; and acts done or omitted to be done by a Commission mem- ber when performing the functions and exercising the powers of a local authority or its members.
“258T Disclosure of information held by local authority “(1) For the purposes of this Part, information held by a local au- thority may be disclosed to the Minister or a Ministerial ap- pointee body despite anything to the contrary in the Official Information Act 1982, the Local Government Official Infor- mation and Meetings Act 1987, or the Privacy Act 1993.
“(2) However, the Minister, the Ministerial body, or a Ministerial appointee must not publish or disclose that information to any other person except in accordance with those Acts.

In this section, Minister includes the Minister’s officials and Cabinet.
“(3) 27—2/SOP No 153 49 Part 1 cl 22 Proposed amendments to the Local Government Act 2002 Amendment Bill “258U Decisions and directions of Crown Manager or Commission remain in force until local authority decides otherwise “(1) Subsections (2) and (3) apply to a local authority on and from the expiry of the term of a Crown Manager appointed to the local authority.

“(2) A direction given to the local authority by the Crown Manager ceases to have effect.
“(3) Despite subsection (2), any decision made by the local au- thority giving effect to the direction continues in force unless and until the local authority revokes or amends the decision.

“(4) Subsection (5) applies to a local authority on and from the expiry of the term of a Commission appointed to the local au- thority.
“(5) A decision of the Commission continues in force as if it were a decision made by the local authority unless and until the local authority revokes or amends the decision.” Section 259 amended (Regulations) 22 (1AA) Replace section 259(1)(d)(i) with: “(i) in petitions and polls in relation to final pro- posals for local government reorganisation under Schedule 3:”.
(1) After 259(1)(db), insert: “(dc) prescribing parameters or benchmarks for assessing whether a local authority is prudently managing its revenues, expenses, assets, liabilities, investments, and general financial dealings: “(dd) prescribing the manner in which a local authority must disclose, in 1 or more of its long-term plan, annual plan, and annual report,— “(i) the planned performance of the local authority against parameters and benchmarks prescribed in regulations made under paragraph (dc): the actual performance of the local authority against parameters and benchmarks prescribed in regulations made under paragraph (dc):”.
“(ii) (2) After section 259(2), insert: 50 27—2/SOP No 153 Proposed amendments to the Local Government Act 2002 Amendment Bill Part 1 cl 22A “(3) Regulations made under subsection (1)(dc) may— “(a) “(ii) prescribe parameters or benchmarks in any manner, in- cluding by— “(i) reference to fixed terms (for example, the debt of a local authority in a financial year, generally, should not exceed a fixed sum per resident): the use of ratios, factors, or other relative terms (for example, the expenditure of a local authority in a financial year, generally, should not increase by more than the ratio of population growth multiplied by the rate of increase of the Con- sumers Price Index): “(iii) reference to circumstances, statistics, or other publicly available information, whether only concerning local authorities and their districts and regions or otherwise; and “(c) “(b) prescribe parameters or benchmarks in a way that dif- ferentiates between different types or classes of local authority (for example, regional councils, territorial au- thorities, and local authorities with a population, assets, or an average income of its population over or under a specified figure); and prescribe parameters or benchmarks in a way that in- cludes or excludes subsidiaries, including council-con- trolled organisations, council-controlled trading organ- isations, and council organisations, of a local authority.
“(4) The Minister may recommend the making of regulations under subsection (1)(dc) only if the content of the recommenda- tion has been developed in consultation with the New Zealand Local Government Association Incorporated.” 22A New section 259C inserted (Auditor-General must report on disclosures made under certain regulations) sections 259C to 259J inserted After section 259B, insert: “259C Auditor-General must report on disclosures made under certain regulations “(1) This section applies to the Auditor-General if regulations are made under section 259(1)(dd) that require disclosure of the 27—2/SOP No 153 51 Part 1 cl 22A Proposed amendments to the Local Government Act 2002 Amendment Bill matters set out in that paragraph in a long-term plan or an an- nual report.
“(2) The Auditor-General must report on the completeness and ac- curacy of the disclosures made by each local authority in the report required from him or her under section 84(4), 94(1), or 99(1), as the case may be.

“259D Regulations may incorporate financial reporting standards by reference “(1) Regulations made under section 259(1)(dc) may incorporate financial reporting standards made under the Financial Report- ing Act 1993, as those standards are defined in section 2(1) of that Act.
“(2) Financial reporting standards may be incorporated by refer- ence in the regulations— “(a) “(b) with modifications, additions, or variations specified in in whole or in part; and the regulations.

“(3) Financial reporting standards incorporated by reference in regulations made under section 259(1)(dc) have legal effect as part of those regulations.
“259E Effect of amendments to, or replacement of, standards incorporated by reference in regulations “(1) An amendment to, or replacement of, a financial reporting standard incorporated by reference in regulations made under section 259(1)(dc) (the initial regulations) has legal effect, and commences to apply, as part of the initial regulations on and from the dates referred to in subsection (2) if— “(a) the amendment or replacement is made by the External Reporting Board in accordance with the Financial Re- porting Act 1993; and the amendment or replacement is of the same general character as the standard amended or replaced; and the initial regulations state that amendments or replace- ments have this effect.
“(b) “(c) “(2) An amendment to, or replacement of, a financial reporting standard has legal effect as part of the initial regulations on 52 27—2/SOP No 153 Proposed amendments to the Local Government Act 2002 Amendment Bill Part 1 cl 22A and from the dates on which the amendment or replacement takes effect, and commences to apply, under section 28 of the Financial Reporting Act 1993.
“259F Proof of standards incorporated by reference “(1) A copy of financial reporting standards incorporated by refer- ence in regulations, including any amendment to, or replace- ment of, the standards must be— “(a) “(b) certified as a correct copy by the Secretary; and retained by the Secretary.
“(2) The production in proceedings of a certified copy of the finan- cial reporting standards is, in the absence of evidence to the contrary, sufficient evidence of the incorporation in the regu- lations of the standards.
“259G Effect of expiry or revocation of standards incorporated by reference Financial reporting standards incorporated by reference in regulations made under section 259(1)(dc) that expire or that are revoked or that cease to have effect cease to have legal effect as part of those regulations only if regulations made under that section state that the standards cease to have legal effect.
“259H Access to standards incorporated by reference “(1) The department responsible for the administration of this Act must— “(a) provide electronic access to any financial reporting standards incorporated by reference in regulations made under section 259(1)(dc); and “(b) make the standards available for inspection during working hours, free of charge, at the department’s head office and at any other place that the Secretary determines is appropriate.
“(2) A failure to comply with this section does not invalidate regu- lations that incorporate any financial reporting standards in- corporated by reference in regulations made under section 259(1)(dc).
27—2/SOP No 153 53 Part 1 cl 22B Proposed amendments to the Local Government Act 2002 Amendment Bill “259I Acts and Regulations Publication Act 1989 not applicable to standards incorporated by reference The Acts and Regulations Publication Act 1989 does not apply to— “(a) financial reporting standards incorporated by reference in regulations made under section 259(1)(dc); or an amendment to, or replacement of, those standards.
“(b) “259J Application of Regulations (Disallowance) Act 1989 to standards incorporated by reference “(1) Nothing in section 4 of the Regulations (Disallowance) Act 1989 requires financial reporting standards that are in- corporated by reference in regulations made under section 259(1)(dc) to be presented to the House of Representatives.
“(2) The Regulations (Disallowance) Act 1989, apart from the modification to the application of section 4 of that Act made by subclause (1) of this clause applies to regulations made under section 259(1)(dc) that incorporate financial reporting standards by reference.” 22B Section 260 amended (Amendment of Schedule 2 by Order in Council) In section 260(3), replace “that gives effect to any reorganisa- tion scheme” with “made under section 25”.
22C Schedule 2 amended In Schedule 2, Part 3, clauses 1(4) and 2(4), replace “giving effect to a reorganisation scheme” with “made under section 25”.

23 Schedule 3 replaced Replace Schedule 3 with the Schedule 3 set out in Schedule 1 of this Act.
23A Schedule 6 amended (1) In Schedule 6, clause 6,— (a) replace “clause 3 of Schedule 3” with “clause 16 of Schedule 3”; and 54 27—2/SOP No 153 Proposed amendments to the Local Government Act 2002 Amendment Bill Part 1 cl 24 (b) replace “reorganisation proposals” with “draft propos- als”.

(2) In Schedule 6, clause 9(1)(a), replace “giving effect to a re- organisation scheme” with “made under section 25”.

Schedule 7 amended 24 This section amends Schedule 7 of the principal Act.
(1) Replace clause 6 with: (2) “6 Remuneration Authority to determine remuneration “(1) The Remuneration Authority must determine the remuner- ation, allowances, and expenses payable to— “(a) mayors, deputy mayors, chairpersons, deputy chairper- “(b) “(c) “(d) “(e) “(f) sons, and members of local authorities: chairpersons of committees of local authorities: chairpersons and members of community boards: chairpersons of committees of community boards: chairpersons and members of local boards: chairpersons of committees of local boards.
“(2) The Remuneration Authority may also determine the remu- neration, allowances, and expenses payable to the following persons, if requested to do so by a local authority: “(a) members of the local authority with specified responsi- bilities other than those listed in subclause (1): “(b) members of community boards of the local authority with specified responsibilities other than those referred to in subclause (1): “(c) members of local boards with specified responsibilities other than those listed in subclause (1).
“(3) The Remuneration Authority may do 1 or more of the follow- ing things under subclause (1) or (2): “(a) fix— scales of salaries: scales of allowances: “(i) “(ii) “(iii) ranges of remuneration: “(iv) different forms of remuneration: “(b) prescribe— “(i) rules for the application of those scales, ranges, or different forms of remuneration: 27—2/SOP No 153 55 Part 1 cl 24 Proposed amendments to the Local Government Act 2002 Amendment Bill “(c) “(ii) rules for reimbursing expenses incurred by mem- bers: differentiate— “(i) between persons occupying equivalent positions in different local authorities, community boards, or local boards: “(ii) between persons occupying equivalent positions in the same local authorities, community boards, or local boards: “(d) make determinations that apply to individuals, or “(e) groups, occupying equivalent positions: approve rules proposed by a local authority for reim- bursing expenses incurred by members, subject to any conditions that the Authority thinks fit.
“(4) The Remuneration Authority may direct a local authority to make publicly available any rules it has approved under sub- clause (3)(e).

“(5) The Remuneration Authority may issue separate determin- ations, at different times, for the different positions listed in subclauses (1) and (2).

“(8) “(6) Clause 7A applies to determinations made under this clause.
“(7) A determination by the Remuneration Authority under this clause is a regulation under for the purposes of the Acts and Regulations Publication Act 1989 and the Regulations (Dis- allowance) Act 1989.
In this clause, local boards has the meaning given in section 4(1) of the Local Government (Auckland Council) Act 2009.” Insert after clause 7: (3) “7A Matters applying to determinations “(1) The Remuneration Authority may make a determination be- fore or after the date on which the determination is to come into force.

“(2) However, a determination must not come into force earlier than the expiry date of the determination that it supersedes.

“(3) A determination must specify the date on which it expires.
“(4) Despite the expiry of a determination, it continues in force to the extent that it is not superseded by another determination.

56 27—2/SOP No 153 Proposed amendments to the Local Government Act 2002 Amendment Bill Part 1 cl 25 “(5) The Remuneration Authority may amend a determination while it is in force.
“(6) Despite subclause (5), the Remuneration Authority may amend the expiry date of a determination only if the Authority is satisfied that in all the circumstances there are particular and special reasons that justify a period of less than the term originally set.
(4) “(7) The Remuneration Authority must review and issue a deter- mination for each position listed in clause 6(1) at intervals of no more than 3 years.” In clause 32(1), insert after paragraph (g): “(h) the power to adopt a remuneration and employment pol- icy.” (5) After clause 36, insert: “36A Remuneration and employment policy “(1) A local authority may adopt a policy that sets out the policies of the local authority in relation to— employee staffing levels; and “(a) the remuneration of employees.
“(b) “(2) A local authority must review a policy adopted under this clause at intervals of no more than 3 years.” 25 (1) (2) (3) Schedule 10 amended This section amends Schedule 10 of the principal Act.

In clause 2(1)(c), delete “social, economic, environmental, or cultural well-being of the”.

In clause 23(d), delete “social, economic, environmental, or cultural well-being of the”.
(4) After clause 32, insert: “32A Employee staffing levels and remuneration “(1) An annual report must include a report on the number of em- ployees who were employed by the local authority— “(a) on the last day of the financial year to which the report relates; and “(b) on the last day of the immediately preceding financial year.
27—2/SOP No 153 57 Part 1 cl 26 Proposed amendments to the Local Government Act 2002 Amendment Bill “(2) For each financial year, the report must state, as at the last day of that year,— “(a) “(b) the number of full-time employees; and the full-time equivalent number of all other employees; and the number of employees receiving total annual remu- neration of less than $60,000; and the number of employees receiving total annual remu- neration of $60,000 or more, expressed in bands of $20,000.
“(c) “(d) “(3) However, if the number of employees in any band to which subclause (2)(d) applies is 5 or fewer, the number for that band must be combined with the next-highest band and the statement in the report in relation to that subclause must be adjusted accordingly.

In subclause (2), total annual remuneration includes the value of any non-financial benefit that, during the year, was paid to an employee, or was payable to the an employee, by the local authority.
“(4) “(5) The report requirement in this clause applies to— the financial year ending 30 June 2013; and each following financial year.” “(a) “(b) 26 Schedule 15 repealed Repeal Schedule 15.
Part 2 Transitional provision and consequential amendments 27AA Commissioners and commissions currently appointed under principal Act A Commissioner appointed under section 255 or a commission appointed under clause 14(a) of Schedule 15 of the principal Act and in office immediately before the commencement of this section is, on and from the commencement of this section, deemed to be a Commission appointed under Part 10 of the principal Act (as replaced by section 21 of this Act), and that Part applies with all necessary modifications.
58 27—2/SOP No 153 Proposed amendments to the Local Government Act 2002 Amendment Bill Part 2 cl 28 27 (1) (2) 28 Transitional provision relating to reorganisation proposals This section applies to a reorganisation proposal made under Schedule 3 of the principal Act before the commencement of Part 1 of this Act.

The principal Act continues to apply to the reorganisation pro- posal as if Part 1 of this Act had not been enacted.
Consequential amendments The enactments listed in Schedule 2 are consequentially amended in the manner indicated in that schedule.
27—2/SOP No 153 59 Schedule 1 Proposed amendments to the Local Government Act 2002 Amendment Bill Schedule 1 Schedule 3 of principal Act replaced Schedule 3 Reorganisation of local authorities Contents 1AA Overview 1 Interpretation Part 1 Reorganisation applications Subpart 1—Making reorganisation applications Who may make reorganisation application Prohibition on making certain reorganisation applications Contents of reorganisation application Subpart 2—Commission to decline or assess reorganisation application Action on receipt of application When Commission may decline to assess reorganisation application Community support Commission to seek alternative applications Alternative applications Commission to determine preferred option Promotion of good local government Procedure after preferred option determined Part 2 Reorganisation proposals Subpart 1—Preparation of proposals Development of proposal Local boards Cities Appropriate boundaries Representation Communities Consultation on proposal Decisions on draft proposals Notification of final proposal 27—2/SOP No 153 7A 7B 7C 8 11 12 12A 60 s 23 s 24 Page 62 63 65 66 66 67 68 69 70 71 71 74 75 76 79 81 81 82 82 82 84 85 Proposed amendments to the Local Government Act 2002 Amendment Bill Schedule 1 26 27 27A 28 28A 28B 28C 28D 28E 28F 28G 28H Schedule 3—continued Subpart 2—Polls Application of this subpart Petition to require poll Poll to be held Timing of poll Official result of poll Fate of proposal after
 poll Subpart 3—Advertising Interpretation Advertising in relation to polls Provision of referential information Authorisation of advertising Part 2A Transition bodies Application Establishment and purpose of transition body Composition and membership of a transition body Roles and functions of the transition body Accountability arrangements for the transition body Appointment of interim chief executive Interim chief executive may appoint staff, enter into contracts, and call first meeting of local authority
 Apportionment of transition costs Part 3 Reorganisation schemes Subpart 1—Preparation of reorganisation schemes 29 Preparation of reorganisation scheme Subpart 2—Contents of and provisions that apply to reorganisation schemes Provisions for inclusion in reorganisation schemes Provisions to be included if necessary or desirable Subpart 3—Implementation and effect of reorganisations Application Provisions that apply to reorganisation scheme unless modified or excluded Bylaws No compensation payable if responsibility transferred 30 31 33 34 34A 37 27—2/SOP No 153 87 87 88 89 90 90 90 91 92 93 93 94 95 95 96 97 98 99 100 101 102 105 106 108 110 61 Schedule 1 Proposed amendments to the Local Government Act 2002 Amendment Bill Schedule 3—continued 38 38A 38B 39 40 42 43 Payment if trading undertaking transferred Employees KiwiSaver Act 2006 does not apply to transferred employee Certain matters not affected by transfer of responsibilities, duties, or powers Registers Apportionment of assets and liabilities Apportionment of fuel tax revenue 111 111 112 112 113 114 116 1AA Overview (1) This clause— (a) (b) provides a guide to the scheme of this schedule; and does not affect the interpretation or application of any provision of this schedule.
(2) (3) Clause 1 contains definitions of terms used in this schedule.
Part 1 contains 2 subparts, as follows: (a) subpart 1— (i) (b) subpart 2— (i) provides that any person, body, or group may make a reorganisation application to the Com- mission; and prohibits the making of a reorganisation applica- tion in certain circumstances; and specifies what a reorganisation application must contain; and requires the Commission to decide whether to assess a reorganisation application; and specifies the grounds on which an application may be declined; and requires the Commission to be satisfied that an application has demonstrable community sup- port; and if it has, requires the Commission to give public notice inviting alternative applications; and (ii) (iii) (ii) (iii) (iv) 62 27—2/SOP No 153 Proposed amendments to the Local Government Act 2002 Amendment Bill Schedule 1 Schedule 3—continued (v) then requires the Commission to identify the rea- sonably practicable options for local government of the affected area and select the option that best promotes good local government (the preferred option).
Part 2 contains 3 subparts, as follows: (a) subpart 1— (i) requires the Commission to develop the preferred option into a draft proposal; and provides for consultation by the Commission on the draft proposal; and then provides for the Commission to issue and notify a final proposal; and (ii) (iii) (c) (b) subpart 2 provides for petitions requiring a poll on a final proposal and for the holding of a poll if required; and subpart 3 places restrictions on advertising by a local authority to promote or oppose a final proposal in the period from the issue of the final proposal to when a poll is held (if required) or the close of the day for re- ceiving a petition.
This subpart contains an exception for publication of material that is factual or referential.

Part 2A provides for the establishment of transition bodies and related matters.
Part 3 contains 3 subparts, as follows: (a) subpart 1 requires the Commission to prepare a re- organisation scheme if no poll is required on a final pro- posal or a poll has been held and has not defeated the final proposal; and subpart 2 specifies the matters the Commission must and may include in a reorganisation scheme; and subpart 3 contains provisions that apply to a reorgan- isation scheme unless amended or declared not to apply by the scheme.
(b) (c) (4) (5) (6) 1 Interpretation In this schedule, unless the context otherwise requires,— 27—2/SOP No 153 63 Schedule 1 Proposed amendments to the Local Government Act 2002 Amendment Bill Schedule 3—continued affected local authority, in relation to a reorganisation appli- cation, means a local authority that would be affected if the application resulted in a reorganisation scheme affected area, in relation to a reorganisation application, draft proposal, or final proposal, means— (a) an area that would be included in the district or region of a new or different local authority if local government in relation to the area were to be reorganised in accordance with the reorganisation application, draft proposal, or final proposal: an area that remains in the district or region of a local au- thority, but the local authority’s responsibilities would be changed if local government in relation to the area were to be reorganised in accordance with the reorgan- isation application, draft proposal, or final proposal: an area of the district or region of a local authority, if the Commission has declared it to be an affected area because the operational scale, scope, or capability of the local authority would be materially affected if local gov- ernment in relation to the area were to be reorganised affected elector means— (a) a person who is a residential elector (within the meaning of section 23 of the Local Electoral Act 2001), if the address in respect of which the person is registered is in an affected area: a person who is a ratepayer elector (within the meaning of section 24 of the Local Electoral Act 2001), if the person is qualified as a ratepayer elector in respect of a rating unit in an affected area (b) (c) (b) applicant means the person making a reorganisation applica- tion implementation date means the date specified in an Order in Council made under section 25(1)(b) as the date on which the local government reorganisation described in the final pro- posal takes effect 64 27—2/SOP No 153 Proposed
 amendments to the Local Government Act 2002 Amendment Bill Schedule 1 Schedule 3—continued public notice, in relation to a notice of a reorganisation appli- cation, draft proposal, or final proposal given by the Commis- sion,— (a) means a notice published— (i) in 1 or more newspapers circulating in the af- fected area; and (ii) on the Internet site of the Commission; and includes any other notice that the Commission thinks desirable in the circumstances (b) reorganisation application means an application containing proposals under clause 2 or 7B proposing local government reorganisation and dealing with 1 or more of the matters spe- cified in section 24. significant community support,— (a) in relation to a reorganisation application and a proposal developed under clause 12, means— (i) support from a large proportion of the commu- nity, or of the leaders of the community, for re- form of the current local government arrange- ments; and substantial support within that group for the changes proposed in the reorganisation applica- tion; and (ii) (b) in relation to a final proposal developed under clause 18, means substantial support from a large proportion of the community or the leaders of the community for the changes proposed in the final proposal.
Part 1 Reorganisation applications Subpart 1—Making reorganisation applications Who may make reorganisation application 2 (1) A reorganisation application may be made to the Commission by any person or organisation, body, or group, including (but not limited to)— 27—2/SOP No 153 65 Schedule 1 Proposed amendments to the Local Government Act 2002 Amendment Bill Schedule 3—continued Part 1—continued Subpart 1—continued (a) (b) (c) 1 or more affected local authorities; or any body or group with an interest in the governance of the area or areas that the reorganisation application relates to; or the Minister.
(2) A reorganisation application must be made to the chief execu- tive officer of the Commission.

3 Prohibition on making certain reorganisation applications No person may make a reorganisation application if— (a) the application relates to a local authority that has been the subject of a reorganisation scheme local government reorganisation; and the application, if it were made, would have been made during a period (being not greater than 3 years) specified by the Commission under clause 30 18.
(b) Contents of reorganisation application 4 (1) A reorganisation application must include the following: (a) (b) (c) (ca) the name and address of the person making the applica- tion; and if more than 1 person is making the application, the name and address of the person who is the representa- tive of the applicants; and a description of the proposed changes, including (but not limited to)— (i) which of the matters listed in section 24(1) is being sought; and a plan or other description sufficient to identify the affected area or affected areas concerned; and a full and detailed explanation of what the proposed changes are seeking to achieve and how the changes would be achieved by the approach proposed in the ap- plication; and (ii) 66 27—2/SOP No 153 Proposed amendments to the Local Government Act 2002 Amendment Bill Schedule 1 Schedule 3—continued Part 1—continued Subpart 1—continued (d) (e) a description of the potential improvements that would result from the proposed changes and how they would promote good local government as described in clause 8; and information that shows demonstrates that the applica- tion has significant community support and that it will promote good local government in the district of each affected territorial authority.
(2) A reorganisation application may include— (a) (b) any information requested or recommended in any guidelines issued by the Commission; and any other information that the applicant considers rele- vant to the Commission’s consideration of the applica- tion.

(4) (3) A reorganisation application may be accompanied by a peti- tion of affected electors for the purposes of clause 7(2).
If a reorganisation application is accompanied by a petition, each elector who signed the petition must state, against his or her signature, the person’s name and address in sufficient detail to enable the person to be identified as an elector.
5 Subpart 2—Commission to decline or assess reorganisation application Action on receipt of application As soon as practicable after receiving a reorganisation appli- cation, the Commission must— (a) (b) (ba) decide whether to assess the application; and notify the applicant of its decision; and if the Commission decides to decline to assess the appli- cation, in the notice to the applicant specify the ground or grounds in clause 6 on which the application is de- clined and explain why the ground or grounds apply; and 27—2/SOP No 153 67 Schedule 1 Proposed amendments to the Local Government Act 2002 Amendment Bill Schedule 3—continued Part 1—continued Subpart 2—continued (c) if the Commission decides to assess the application, no- tify the affected local authorities of its decision.
6 When Commission may decline to assess reorganisation application The Commission may decline to assess a reorganisation appli- cation on 1 or more of the following grounds: (a) (b) the application is frivolous: the application does not contain the information re- quired by clause 4(1): the application does contain the information required by clause 4(1), but not in sufficient detail for the Commis- sion to assess the application: (ba) (c) (c) (bb) 1 or more of the aspects that would be essential if the application were implemented are inconsistent with this Act or any other enactment: a substantially similar application has been declined by the Commission and the reasons for declining that ap- plication continue to apply: changes substantially similar to those proposed in the application have been considered by the Commission but were not considered to constitute a reasonably prac- ticable option, and the grounds for that decision con- tinue to apply: the Commission is not or is not likely to be in a position to assess the application during the period in which the information in the application is timely and reliable: the application is received after the date specified under clause 7A as the deadline for the receipt of alternative applications, but before a final decision on a reorganisa- tion of the affected area is made: it is not in the public interest to assess the application.
(d) (e) (f) 68 27—2/SOP No 153 Proposed amendments to the Local Government Act 2002 Amendment Bill Schedule 1 Schedule 3—continued Part 1—continued Subpart 2—continued 7 (1) (2) Assessment: significant Community support If the Commission decides to assess a reorganisation applica- tion, the Commission must first be satisfied that the application has significant there is demonstrable community support in the district of each affected territorial authority for local govern- ment reorganisation in the affected area.
The matters the Commission may consider for the purposes of subclause (1) include (but are not limited to)— a petition or petitions of affected electors: (a) questionnaires or surveys of ratepayers or residents: (b) submissions or other correspondence about existing or (c) proposed local government arrangements: (d) meetings with community members or their representa- tives in which views on the existing or proposed local government arrangements are expressed.
(2A) To avoid doubt, for the purposes of subclause (1),— (3) (a) (b) the Commission may use information that is reasonably available and does not have to (but may) make its own inquiries and conduct its own investigations: the Commission does not need to determine whether the persons who support local government reorganisation are a majority of the persons in an affected area.
If the reorganisation application is accompanied by a peti- tion,— (a) the chief executive officer of the Commission must refer the application to the electoral officers of the affected local authority or local authorities to confirm the names and addresses of electors who signed the petition; and the electoral officers must advise the Commission of the number of qualified electors of each territorial authority district who— (i) (ii) were entitled to sign the petition; and have signed the petition.
(b) 27—2/SOP No 153 69 Schedule 1 Proposed amendments to the Local Government Act 2002 Amendment Bill Schedule 3—continued Part 1—continued Subpart 2—continued (4) If the Commission is not satisfied that a reorganisation appli- cation has significant about community support as required by subclause (1), the Commission may must— (a) decline the application without completing the assess- ment of it; or require the applicant to provide further evidence of community support; or undertake any other investigations it considers appro- priate to determine community support for the applica- tion.
(b) (c) 7A Commission to seek alternative applications (1) If the Commission is satisfied about community support, as required by clause 7, the Commission must give— (a) (b) public notice; and notice to— (i) (ii) the affected local authorities; and each local authority whose district or region ad- joins the district or region of an affected local au- thority; and any other person, body, or group that the Com- mission considers should be notified.
(iii) (2) A notice given under subclause (1) must— (a) (b) (c) (d) state that a reorganisation application has been received by the Commission; and describe the type of reorganisation proposed, the af- fected local authorities, and the extent of the affected area; and indicate where further information about the application can be obtained; and invite persons, bodies, and groups to submit, by a date specified in the notice, alternative applications in rela- tion to the affected area; and 70 27—2/SOP No 153 Proposed amendments to the Local Government Act 2002 Amendment Bill Schedule 1 Schedule 3—continued Part 1—continued Subpart 2—continued (3) (e) indicate that any alternative applications received after the date specified under paragraph (d) may be de- clined.
The date specified by the Commission under subclause (2)(d) for the receipt of alternative applications must not be earlier than 20 working days after the last notice given under subclause (1).

7B Alternative applications (1) An alternative application must comply with clause 4 as if it were a reorganisation application.
(2) However, an alternative application is not required to comply with clause 4(1)(e) in relation to a district of a territorial au- thority in which community support has been demonstrated in the reorganisation application received under clause 2.
(3) (2) 7C Commission to determine preferred option (1) As soon as practicable after the deadline for the receipt of alter- native applications, the Commission must, in accordance with this clause, determine its preferred option for local government of the affected area.

The Commission must first identify the reasonably practicable options for local government of the affected area.
In deciding the extent to which it identifies the reasonably practicable options, the Commission must have regard to— (a) (b) the scale and scope of the changes proposed; and the degree of community support for relevant applica- tions that has been demonstrated to the Commission; and the potential benefits of considering other options; and the desirability of early certainty about local govern- ment arrangements for the affected area.
(c) (d) (4) The reasonably practicable options— (a) must include the existing arrangements for local gov- ernment; and 27—2/SOP No 153 71 Schedule 1 Proposed amendments to the Local Government Act 2002 Amendment Bill Schedule 3—continued Part 1—continued Subpart 2—continued (b) may include— (i) (ii) (iii) (iv) the proposals in the application made under clause 2; or the proposals in an alternative application made under clause 7B; or options, other than those referred to in para- graph (a) and subparagraphs (i) and (ii), for- mulated by the Commission; or a combination of aspects derived from 2 or more of the options referred to in paragraph (a) and subparagraphs (i) to (iii).
(5) (6) The Commission must be satisfied that any local authority pro- posed to be established or changed under a reasonably practic- able option will— (a) have the resources necessary to enable it to carry out effectively its responsibilities, duties, and powers; and have a district or region that is appropriate for the effi- cient performance of its role as specified in section 11; and contain within its district or region 1 or more communi- ties of interest, but only if they are distinct communities of interest; and in the case of a regional council or unitary authority, en- able catchment-based flooding and water management issues to be dealt with effectively by the regional coun- cil or unitary authority.
(b) (c) (d) For the purposes of subclause (5), the Commission must have regard to— (a) the area of impact of the responsibilities, duties, and powers of the local authorities concerned; and the area of benefit of services provided; and the likely effects on a local authority of the exclusion of any area from its district or region; and any other matters that it considers appropriate.
(b) (c) (d) 72 27—2/SOP No 153 (7) (8) 8 (1) Proposed amendments to the Local Government Act 2002 Amendment Bill Schedule 1 Schedule 3—continued Part 1—continued Subpart 2—continued In deciding whether any proposed changes are reasonably practicable, the Commission may— (a) request further information from applicants and affected local authorities; and undertake any investigations and make any inquiries that the Commission considers appropriate.
(b) If the Commission identifies 2 or more reasonably practicable options, the Commission must determine, having regard to the criteria in clause 8, its preferred option, being the option that best promotes good local government.
(b) Assessment: Promotion of good local government If the Commission is satisfied that a reorganisation application has significant community support, the Commission must next be satisfied that the changes proposed in the application will promote good local government by— (a) improving local government in the area or areas that the application relates to; and facilitating, in the affected local authority or local au- thorities,— (i) (ii) efficiencies and cost savings; and productivity improvements, both within the af- fected local authorities and for the businesses and households that interact with those local author- ities; and simplified planning processes within and across the district or region through, for example, the integration of statutory plans or a reduction in the number of plans to be prepared or approved by the local authority; and (iii) (c) ensuring that each local authority proposed to be estab- lished or changed under the application will— (i) have the resources necessary to enable it to carry out effectively its responsibilities, duties, and powers; and 27—2/SOP No 153 73 Schedule 1 Proposed amendments to the Local Government Act 2002 Amendment Bill Schedule 3—continued Part 1—continued Subpart 2—continued (ii) (iii) have a district or region that is appropriate for the efficient performance of its role as specified in section 11; and contain within its district or region 1 or more communities of interest, but only if they are dis- tinct communities of interest; and (d) if the reorganisation application proposes a unitary au- thority, enabling catchment-based flooding and water management issues to be dealt with effectively by the unitary authority.
(2) 8 For the purposes of subclause (1), the Commission must have regard to— (a) the area of impact of the responsibilities, duties, and powers of the local authorities concerned; and the area of benefit of services provided; and the likely effects on a local authority of the exclusion of any area from its district or region; and any other matters that it considers appropriate.
(b) (c) (d) Promotion of good local government For the purposes of clause 7C(8), the Commission must be satisfied that its preferred option— (a) will best promote, in the affected area, the purpose of local government as specified in section 10; and (b) will facilitate, in the affected area, improved economic performance, which may (without limitation) include— (i) (ii) efficiencies and cost savings; and productivity improvements, both within the local authorities and for the businesses and households that interact with those local authorities; and simplified planning processes within and across the affected area through, for example, the inte- gration of statutory plans or a reduction in the number of plans to be prepared or approved by a local authority.
(iii) 74 27—2/SOP No 153 Proposed amendments to the Local Government Act 2002 Amendment Bill Schedule 1 Schedule 3—continued Part 1—continued Subpart 2—continued Commission must consider other options In assessing a reorganisation application, the Commission must consider whether there are options for reorganisation, other than those included in the application, that might have community support and promote, more effectively, good local government.
Other things Commission may do when assessing reorganisation application The Commission may assess a reorganisation application in conjunction with any other reorganisation applications, and may combine proposals from those applications.

The Commission may require a local authority affected by a re- organisation application to provide any information that would assist the Commission to carry out an assessment of the appli- cation.
In assessing a reorganisation application, the Commission may undertake inquiries and consultations in relation to the applica- tion with any persons or organisations it considers appropriate.

The Commission may suspend its assessment of a reorganisa- tion application and return the application to the applicant for further work or information.
If the application is returned to the applicant under subclause (4),— (a) the Commission must identify the aspects that require further work or information; and the applicant must comply with the Commission’s re- quest before resubmitting the application.
(b) 9 10 (1) (2) (3) (4) (5) Procedure after assessment preferred option determined 11 (1) After completing an assessment of a reorganisation applica- tion, the Commission must decide to do 1 of the following: (a) (b) decline the application: proceed to develop a proposal under clause 12 that would give effect to the proposals in the application: 27—2/SOP No 153 75 Schedule 1 Proposed amendments to the Local Government Act 2002 Amendment Bill Schedule 3—continued Part 1—continued Subpart 2—continued (c) proceed to develop a proposal under clause 12 that would give effect to the proposals in— (i) the application as modified by the Commission; or the application and 1 or more other applications considered together; or an option considered under clause 9.
(ii) (iii) (2) (3) The Commission must notify the applicant and all affected local authorities of its decision.

If the Commission declines the application under subclause (1)(a), it must provide the applicant with reasons for its deci- sion.

(1) After determining the preferred option under clause 7C, the Commission must— (a) give notice of its determination and the reasons for it to— (i) (ii) proceed under clause 12 to develop a draft reorganisa- tion proposal to give effect to the preferred option.
each applicant; and every affected local authority; and (b) (2) However, subclause (1)(b) does not apply if the Commis- sion’s preferred option, under clause 7C, is the existing ar- rangements for local government.

Part 2 Reorganisation proposals Subpart 1—Preparation of proposals 12 (1) Development of proposal If the Commission decides to proceed with a reorganisation application under clause 11(1)(b) or (c), the Commission must develop a draft reorganisation proposal (a proposal).
(2) A proposal must describe, for each local authority to be in- cluded in the proposal,— (a) the type of local authority; and 76 27—2/SOP No 153 Proposed amendments to the Local Government Act 2002 Amendment Bill Schedule 1 Schedule 3—continued Part 2—continued Subpart 1—continued (b) (c) (d) (e) (f) (g) the name of the district or region of the local authority; and the boundaries of the district or region; and the representation arrangements of the local authority; and the names and areas of interest of iwi and hapū in the district or region; and any communities and any community boards of the local authority; and any other matters the Commission considers necessary or desirable.
(1) This clause applies to a draft reorganisation proposal devel- oped by the Commission to give effect to its preferred option (draft proposal).
(2) A draft proposal must describe, for each affected local author- (c) ity proposed to continue in existence,— (a) (b) the type of local authority; and the name of the district or region of the local authority; and the nature and extent of any proposed changes to— (i) (ii) the boundaries of the district or region; and the representation arrangements of the local au- thority; and the extent to which the areas of interest of iwi and hapū are included in the district or region; and any communities and any community boards of the local authority; and (iii) (iv) (d) any other matters the Commission considers necessary or desirable.
(2A) A draft proposal must describe, for each local authority pro- posed to be established,— (a) (b) the type of local authority; and the name of the district or region of the local authority; and the boundaries of the district or region; and (c) 27—2/SOP No 153 77 Schedule 1 Proposed amendments to the Local Government Act 2002 Amendment Bill Schedule 3—continued Part 2—continued Subpart 1—continued (d) (e) (f) (g) the representation arrangements of the local authority; and the names and areas of interest of iwi and hapū in the district or region; and any communities and any community boards of the local authority; and any other matters the Commission considers necessary or desirable.
(2B) However, the Commission may decide, if it considers it more appropriate to do so, to defer including in a draft proposal the representation arrangements or community board arrange- ments, or both, and include them in the reorganisation scheme.
(2C) A draft proposal must also— (a) (ii) contain information about the role, powers, and compo- sition of the transition body, including— (i) whether the transition body would include a tran- sition board; and if a transition board would be included in a tran- sition body, how each affected local authority will be represented on the transition board and whether the transition board will include other persons; and (3) (4) (b) have attached to it a full and detailed explanation of the advantages and disadvantages of the draft proposal and of how it will promote good local government.
In preparing a draft proposal, the Commission may require a local authority affected by the proposal to provide information to assist the Commission to prepare the proposal.

In preparing a draft proposal, the Commission may undertake inquiries and consultations in relation to the draft proposal with any persons and organisations, bodies, and groups it con- siders appropriate.
78 27—2/SOP No 153 Proposed amendments to the Local Government Act 2002 Amendment Bill Schedule 1 Schedule 3—continued Part 2—continued Subpart 1—continued (5) In preparing a proposal, the Commission must have regard to the matters specified in clauses 7 and 8 for the purposes of assessing a reorganisation application.
12A Local boards (1) This clause applies if— (a) (b) (ii) the Commission has determined, under clause 7C, that the preferred option for local government of an area is a unitary authority; and the area— (i) will be urban or predominantly urban in nature; and has, or is predicted to have within a period of 5 years after public notice of the draft proposal, a population that exceeds 400 000.
In preparing a draft proposal in relation to the affected area, the Commission may include provisions for local boards if it considers that good local government of the district of the uni- tary authority would be best promoted by providing for local boards.
Provisions for local boards must be consistent with sections 7, 10 to 32B, 97 to 99, 102, and 105 of the Local Government (Auckland Council) Act 2009, and those sections apply in re- lation to the proposed unitary authority as if— (a) every reference to the Council or Auckland Council were a reference to the unitary authority; and every reference to Auckland were a reference to the dis- trict of the unitary authority.
(b) (2) (3) (4) A draft proposal must, in addition to the matters specified in clause 12, specify— (a) the number and names of local board areas within the district; and the boundaries of— (i) each local board area; and (b) 27—2/SOP No 153 79 Schedule 1 Proposed amendments to the Local Government Act 2002 Amendment Bill Schedule 3—continued Part 2—continued Subpart 1—continued (ii) electoral subdivisions, if any, of each local board area; and (c) the number of elected members of the local board for each local board area and, if a local board area is sub- divided for electoral purposes, the number of members to be elected by the electors of each subdivision.
In determining the matters referred to in subclause (4)(a), (b), or (c), the Commission must ensure that— (a) (5) there are no fewer than 4 and no more than 9 members for each local board; and so far as is practicable, the boundaries of local board areas, and any electoral subdivisions, and the number of members to be elected, provide effective representation of communities of interest within the district; and the subdivision of any local board area for electoral pur- poses provides fair representation for the electors of the local board area; and the local board area boundaries, or subdivisions of those areas for electoral purposes, coincide with boundaries of the current statistical meshblock areas determined by Statistics New Zealand and used for parliamentary electoral purposes; and so far as is practicable, local board area boundaries co- incide with ward boundaries.
(b) (c) (d) (e) (6) For the purpose of giving effect to subclause (5)(c), the Com- mission must ensure that the population of each subdivision divided by the number of members to be elected by the sub- division produces a figure no more than 10% greater or smaller than the population of the local board area divided by the total number of elected members of the local board.
(7) However, if the Commission considers that effective represen- tation of communities of interest so requires, subdivisions may be defined, and membership distributed between them, in a way that does not comply with subclause (6).

80 27—2/SOP No 153 Proposed amendments to the Local Government Act 2002 Amendment Bill Schedule 1 Schedule 3—continued Part 2—continued Subpart 1—continued (8) (9) Clause 12(2B) does not apply to a draft proposal under sub- clause (2).
To avoid doubt, clauses 12(2A)(f) and 16 do not apply to a draft proposal under subclause (2).
(10) A reorganisation scheme in respect of a final proposal to which subclause (2) applies must, in addition to the matters spe- cified in section 30, make an initial allocation of decision- making responsibility for the non-regulatory activities of the unitary authority between the authority’s governing body and its local boards in accordance with section 17 of the Local Government (Auckland Council) Act 2009 as applied by sub- clause (3).
13 14 Cities A draft proposal may not provide that a territorial authority is to be called a city council unless the district of the territorial authority— (a) (b) (c) has a population of not less than 50 000 persons; and is predominantly urban; and is a distinct entity and a major centre of activity.
Appropriate boundaries In determining boundaries for a draft proposal, the Commis- sion must ensure that,— (a) if practicable, the boundaries of regions conform with catchment boundaries; and if practicable, the boundaries of districts conform with the boundaries of regions; and the boundaries of regions and the boundaries of districts conform with the boundaries of statistical meshblock areas determined by Statistics New Zealand and used for parliamentary electoral purposes.
(b) (c) 27—2/SOP No 153 81 Schedule 1 Proposed amendments to the Local Government Act 2002 Amendment Bill Schedule 3—continued Part 2—continued Subpart 1—continued 15 16 Representation In determining the representation arrangements of a local au- thority for a draft proposal or (if clause 12(2B) applies) a reorganisation scheme, the Commission must— (aa) have regard to the existing electoral and representation arrangements of the affected local authorities; and provide fair and effective representation for individuals and communities of the local authority; and comply with the requirements of the Local Electoral Act 2001; and take into account powers of the local authority.
the responsibilities, duties, and (a) (b) (c) Communities When preparing a draft proposal or (if clause 12(2B) ap- plies) a reorganisation scheme, the Commission may consider whether good local government of any affected district would be best promoted by— (a) a system of communities and the responsibilities, du- ties, and powers of the community boards in the district; or an alternative to an existing system of communities; or a change in the responsibilities, duties, and powers of the community boards in the district.
(b) (c) Consultation on proposal 17 (1) As soon as practicable after completing a draft proposal, the Commission must— (a) take the action that it considers necessary to ensure that the persons and organisations, bodies, and groups who may be interested in that the draft proposal are informed of the proposal; and give public notice of the draft proposal, which must— (b) 82 27—2/SOP No 153 Proposed amendments to the Local Government Act 2002 Amendment Bill Schedule 1 Schedule 3—continued Part 2—continued Subpart 1—continued (i) (iv) (ii) (iii) specify the location where the draft proposal may be inspected or how a copy of the draft proposal may be obtained; and invite submissions on the draft proposal; and specify the date by which submissions must be made to the Commission; and specify the manner in which submissions are to be made; and seek the views of— (i) (ii) (iii) (iv) the affected local authorities; and the applicant; and the Auditor-General; and the Parliamentary Commissioner for the Envir- onment; and the Secretary; and (v) the Secretary for the Environment; and (vi) (vii) the chief executive of Te Puni Kōkiri; and (viia) the Commissioner of Inland Revenue; and (viib) any other chief executive of a department of State that may, in the opinion of the Commission, have an interest in or be affected by the proposal; and (c) (viii) any affected iwi and Māori organisations identi- (ix) fied by Te Puni Kōkiri; and each local authority whose district or region ad- joins the district or region of an affected local au- thority; and (ixa) any local boards, council-controlled organisa- tions, and community boards of affected local authorities; and any other persons or organisations, bodies, or groups that the Commission considers appropri- ate.
(x) (2) A person or organisation, body, or group that wishes to make a submission on a draft proposal must make the submission to 27—2/SOP No 153 83 Schedule 1 Proposed amendments to the Local Government Act 2002 Amendment Bill Schedule 3—continued Part 2—continued Subpart 1—continued (3) (4) (5) the Commission in the manner and by the date specified by the Commission in the public notice.
The Commission must consider each submission received and may hold hearings of submissions or meet with the persons making submissions or their representatives.

The Commission must grant the opportunity to meet, and be heard by, the Commission on the draft proposal to— (a) (b) the affected local authorities; and each local authority whose district or region adjoins the district or region of an affected local authority; and the applicant.
(c) The Commission may also undertake, in a manner that it thinks fit, inquiries and consultations in relation to the draft proposal with any other persons and organisations, bodies, and groups it considers appropriate.
Decisions on draft proposals 18 (1) After complying with clause 17, the Commission must— (a) (b) (c) develop and issue a final proposal based on a proposal developed under clause 12; or develop and issue a final proposal based on a proposal developed under clause 12 and subsequently modified by the Commission; or decide not to proceed with the proposal and give public notice accordingly.
(1) After complying with clause 17, the Commission must do 1 of the following: (a) (b) (c) (d) issue the draft proposal as a final proposal: issue a modified draft proposal as a final proposal: identify, under clause 7C, another preferred option as the basis for a new draft proposal: decide not to issue a final proposal and give public no- tice of the decision and the reasons for it.
(1A) In making a decision about how to proceed under subclause (1), the Commission must— 84 27—2/SOP No 153 Proposed amendments to the Local Government Act 2002 Amendment Bill Schedule 1 Schedule 3—continued Part 2—continued Subpart 1—continued (a) (b) consider the submissions, views, and any other infor- mation received under clause 17; and have regard to— (i) (ii) (iii) the matters specified in clause 8; and the scale and scope of the changes proposed; and the degree of community support for the draft proposal already demonstrated to the Commis- sion; and the potential benefits and disadvantages of modi- fied proposals or alternative options; and the desirability of early certainty about local gov- ernment organisation in the affected area.
(iv) (v) (1B) The Commission must not issue a final proposal under sub- clause (1)(b) unless the Commission is satisfied that it has sufficient information about the views of the persons referred to in clause 17(1)(c).

(1C) A final proposal must comply with clauses 12(2), (2A), (2B), and (2C)(a) and 13 to 16 as if references in those provisions to a draft proposal were references to a final proposal.

(1D) A final proposal may specify a period for the purpose of (2) (3) clause 3.
Before issuing deciding to issue a final proposal, the Commis- sion must be satisfied that the final proposal is likely to have significant demonstrable community support in the district of each affected territorial authority.

For the purposes of subclause (2), clause 7(2) and (2A)(b) apply in relation to a final proposal.
Notification of final proposal 19 (1) As soon as practicable after issuing a final proposal, the Com- mission must— (a) give public notice of the final proposal and, in the no- tice, specify where copies of the proposal may be in- spected; and 27—2/SOP No 153 85 Schedule 1 Proposed amendments to the Local Government Act 2002 Amendment Bill Schedule 3—continued Part 2—continued Subpart 1—continued (b) (b) take any other action that it considers necessary to ensure that the persons and organisations specified in clause 17(1)(c) are informed of the proposal.
take any other action that it considers necessary to in- form the persons, bodies, and groups who made submis- sions or provided views under clause 17 of the final proposal.

(2) (3) (2) The Commission must attach to a final proposal a statement explaining— (a) how the final proposal will promote good local govern- ment, having regard to the matters specified in clause 8; and (b) the advantages and disadvantages of the final proposal.
The explanatory statement must outline the advantages and disadvantages of the proposal in respect of— (a) (b) a proposed new or altered district or region; and any remaining area of a district or region affected by the proposal; and any changes to the responsibilities of the affected local authorities.
(c) The Commission must attach to a final proposal a full and de- tailed statement that— (a) explains how the final proposal will promote the pur- pose of local government and facilitate economic per- formance, as described in clause 8; and provides a balanced assessment of the final proposal, outlining the advantages and disadvantages of the pro- posal in respect of— (i) (ii) a proposed new or altered district or region; and any remaining area of a district or region affected by the proposal; and any changes to the responsibilities of each af- fected local authority.
(iii) (b) 86 27—2/SOP No 153 Proposed amendments to the Local Government Act 2002 Amendment Bill Schedule 1 Schedule 3—continued Part 2—continued Subpart 2—Polls 20 21 (1) Application of this subpart This subpart applies to a final proposal that provides for any of the matters specified in section 24(1)(a), (b), (c), and (f).
Petition to require poll If a final proposal has been issued under clause 18(1)(a) or (b), affected electors may demand a poll to determine whether or not the final proposal is to proceed and become a reorgan- isation scheme.

(2) A poll may be demanded under subclause (1) by a petition of 10% or more of affected electors enrolled as eligible to vote in the affected area in the district of a territorial authority.

(2A) A petition must be in the prescribed form (if any).
(3) (c) The Commission must, in the public notice of a final proposal under clause 19(1)(a), advise electors of— (a) (b) the opportunity to demand a poll under this clause; and the requirements relating to the submission of a petition under this clause; and the date by which a petition must be received by the Commission, being the close of the 60th working day after the first publication of the notice under clause 19(1)(a); and the affected area.
(d) The date referred to in subclause (3)(c) must be determined by the Commission, but must not be earlier than 40 work- ing days after the first publication of the notice under clause 19(1)(a).

Each person who signs a petition must state, against his or her signature, the person’s name and address in sufficient detail to enable the person to be identified as an elector.
The chief executive officer of the Commission must send a copy of the petition to the electoral officer in of each affected local territorial authority, and the electoral officers must advise (4) (5) (6) 27—2/SOP No 153 87 Schedule 1 Proposed amendments to the Local Government Act 2002 Amendment Bill Schedule 3—continued Part 2—continued Subpart 2—continued (c) (b) the Commission, within the time frame required by the Com- mission, of— (a) the number of affected electors enrolled as eligible to vote in the local authority area district of the territorial authority; and the number of those electors who have signed the peti- tion.
; and whether the number of those electors who signed the petition constitute 10% or more of the affected electors enrolled in the district of the territorial authority.

To avoid doubt, a petition may not be started before a final proposal is issued.
For the purposes of this subpart,— affected area means the area or areas, as determined by the Commission, to which the final proposal applies petition— (a) means 1 or more petitions submitted to the Commission (7) (8) (b) that relate to the same final proposal; and to avoid doubt, includes a petition referred to in sub- clause (7), if the petition demands a poll in relation to the implementation of a reorganisation application deal- ing with the same or substantially the same area as the affected area.
petition means 1 or more petitions submitted to the Commis- sion that relate to the same final proposal.

22 (1) Poll to be held If the Commission receives a petition made in accordance with clause 21, a poll of electors must be held in the affected area.

(1) A poll of electors must be held in the affected area if the Com- mission is satisfied that the petition— (a) (b) is made in accordance with clause 21; and relates to the final proposal.
88 27—2/SOP No 153 Proposed amendments to the Local Government Act 2002 Amendment Bill Schedule 1 Schedule 3—continued Part 2—continued Subpart 2—continued (2) (3) (4) Except as otherwise provided in this Part, a poll under this clause must be held under the Local Electoral Act 2001 and the provisions of that Act apply, with any necessary modifications, to the conduct of the poll.
The Commission must ensure that 1 electoral officer is desig- nated to conduct the poll and to declare the official result of the poll under clause 24.

The costs of the poll are to be apportioned among the affected local authorities on the basis of the number of affected electors on the electoral rolls of the affected local authorities.

Timing of poll 23 (1) A poll required by clause 22 must be held on a date deter- (2) (3) (4) (5) mined by the Commission in accordance with this clause.
In determining the date on which a poll is to be held, the Com- mission must consult the electoral officer required to conduct the poll.

The Commission must, as soon as practicable after complying with subclause (2), give written notice of the date determined under subclause (1) to the Secretary, to the chief executive of each affected local authority, and to the electoral officer required to conduct the poll.
The electoral officer who receives written notification under subclause (3) must, within 7 days after receiving the notifi- cation, give public notice of— (a) (b) the poll; and the place or places at which the final proposal and the explanatory statement may be inspected.
The date determined under subclause (1) for the conduct of the poll must,— (a) if written notice under subclause (3) is to be given on or after 28 September and before 21 November in any year, be a day not earlier than 10 February and not later than 17 February in the following year; and 27—2/SOP No 153 89 Schedule 1 Proposed amendments to the Local Government Act 2002 Amendment Bill Schedule 3—continued Part 2—continued Subpart 2—continued (b) (c) (d) if written notice under subclause (3) is to be given on or after 21 November and before 16 December in any year, be a day not earlier than 7 March and not later than 14 March in the following year; and if written notice under subclause (3) is to be given on or after 16 December in any year and before 13 January in the following year, be a day not earlier than 4 April and not later than 11 April in that following year; and in any other case, be a day not later than 82 days after the day on which written notice under subclause (3) is given to the electoral officer.
24 25 (1) (2) 26 90 Official result of poll The electoral officer must,— (a) when declaring the official result of the poll under sec- tion 86 of the Local Electoral Act 2001, include a state- ment of— (i) the total number of electors on the roll or rolls compiled for the purpose of the poll; and the total number of valid votes cast: (ii) as soon as practicable after declaring the result, notify the Secretary, the chief executive of each affected local authority, and the Commission of the result.
(b) Fate of proposal after poll If more than 50% of the valid votes cast in the poll are for a final proposal, the Commission must prepare a reorganisation scheme to give effect to the proposal then clause 29 applies.

In every other case, the final proposal must not proceed.
Subpart 3—Advertising Interpretation In this subpart, unless the context otherwise requires,— advertising means advertising in any medium 27—2/SOP No 153 Proposed amendments to the Local Government Act 2002 Amendment Bill Schedule 1 Schedule 3—continued Part 2—continued Subpart 3—continued poll period, in relation to a poll under clause 22, means the period commencing on the day after the date on which public notice of the final proposal is first given and ending with the close of the day on which the poll is held publish, in relation to advertising,— (a) means to bring to the notice of a person in any manner, displaying in any medium: distributing by any means: delivering to an address: leaving at a place: sending by post or otherwise: printing in a newspaper or other periodical: including (but not limited to)— (i) (ii) (iii) (iv) (v) (vi) (vii) broadcasting by any means: (viii) disseminating by means of the Internet or any (ix) other electronic medium: storing electronically in a way that is accessible to the public: incorporating in a device for use with a computer: inserting in a film or video; but (x) (xi) excludes addressing 1 or more persons face to face.
(b) specified period means,— (a) if a poll is required to be held under clause 22, the period commencing on the day after the date on which public notice of the final proposal is first given and end- ing with the close of the day on which the poll is held: if a poll is not required to be held under clause 22, the period commencing on the day after the date on which public notice of the final proposal is given and ending with the close of the day specified by the Commission for the purposes of clause 21(3)(c).
(b) Advertising in relation to polls 27 (1) A local authority affected by a final proposal may not, at any time in a poll period, publish any advertising that promotes or 27—2/SOP No 153 91 Schedule 1 Proposed amendments to the Local Government Act 2002 Amendment Bill Schedule 3—continued Part 2—continued Subpart 3—continued opposes the implementation of the final proposal or a provision of the final proposal.
(1) A local authority affected by a final proposal may not, at any time in a specified period, do anything (include publishing any advertising) that— (a) involves the expenditure of the authority’s money or use of the authority’s resources; and promotes or opposes the implementation of the final proposal or a provision of the final proposal.
(b) (2) This clause does not apply to— (a) any investigations or research undertaken by, or on be- half of, the local authority that relate to the final pro- posal or its effects; or the making of submissions or other representations to the Commission by the local authority; or the publication of any news or comment relating to the final proposal or the poll in any medium by any person other than the local authority.
; or anything done to comply with the requirements of Part 7 of the Local Government Official Information and Meetings Act 1987.
(b) (c) (d) 27A Provision of referential information (1) (b) Clause 27 does not preclude a local authority affected by a final proposal from publishing material that— (a) does not expressly or impliedly promote or oppose the final proposal; but contains factual or referential material presented— (i) (ii) in a balanced way; and to assist electors considering promoting or sign- ing a petition for the purposes of subpart 2 or voting in a poll to make a better-informed deci- sion.
(2) A local authority may (but does not have to) seek a ruling from the Commission that material proposed to be published 92 27—2/SOP No 153 Proposed amendments to the Local Government Act 2002 Amendment Bill Schedule 1 Schedule 3—continued Part 2—continued Subpart 3—continued (3) by the local authority under subclause (1) complies with that subsection.
If the Commission provides a ruling that the material complies with subclause (1), then publication of the material by the local authority is to be treated as published in accordance with subclause (1).
Authorisation of advertising 28 (1) A person may not publish advertising that promotes or opposes the implementation of the final proposal or a provision of the final proposal unless the advertising contains a statement set- ting out the name and address of the person who initiated or instigated the publication of the advertising.
In subclause (1), address means,— in relation to an individual,— (a) (i) (2) (ii) the full street address of the place where the in- dividual usually lives; or the full street address of any other place where the individual can usually be contacted between the hours of 9 am and 5 pm on any working day: (b) in relation to a body corporate or unincorporated,— (i) the full street address of the body’s principal place of business; or the full street address of the body’s head office.
(ii) 28A Application Part 2A Transition bodies This subpart applies to a final proposal that is issued under clause 18 and notified under clause 19 and in relation to which— (a) a poll, under clause 22,— (i) has not been held because— 27—2/SOP No 153 93 Schedule 1 Proposed amendments to the Local Government Act 2002 Amendment Bill Schedule 3—continued Part 2A—continued (B) (A) the reorganisation proposal does not in- clude any of the matters specified in sec- tion 24(1)(a), (b), (c), or (f); or the requirements for a petition under clause 21 have not been met; or has been held and more than 50% of the valid votes cast in the poll are for the final proposal; and (ii) (b) an Order in Council giving effect to the final proposal is to be made under section 25(1).
28B Establishment and purpose of transition body (1) This clause applies to a transition body established by an Order in Council giving effect to a final proposal under section 25(1).
The purpose of a transition body is to— (a) work with the Commission on, and facilitate local input into, the development of the reorganisation scheme to complete the final proposal; and provide advice to the Commission and affected local authorities, as appropriate, on practical matters relating to the reorganisation scheme; and do anything else requested by the Commission in rela- tion to the development and implementation of the re- organisation scheme.
(b) (c) (2) (3) The transition body is established and continues in existence during the following periods: (a) between the day on which a final reorganisation pro- posal is given effect to by Order in Council under sec- tion 25(1) and the day on which the reorganisation scheme is given effect to by Order in Council under section 25(4) (phase 1); and between the day on which the reorganisation scheme is given effect to and the implementation date (phase 2).
(b) 94 27—2/SOP No 153 Proposed amendments to the Local Government Act 2002 Amendment Bill Schedule 1 Schedule 3—continued Part 2A—continued (4) To avoid doubt, different arrangements for the roles, functions, membership, and accountability of the transition body may apply during phase 1 and phase 2.

28C Composition and membership of a transition body (1) A transition body— (2) (a) must include an implementation team; and (b) may include a transition board.
In developing a draft proposal, the Commission must deter- mine whether or not a transition board is required by the type and scale of the changes proposed to be made by the reorgan- isation.

(3) However, a transition body must include a transition board if the final proposal involves— (a) (b) the establishment of 1 or more new local authorities; or a significant change to 1 or more of the affected local authorities.

(4) A transition body must be broadly representative of the af- fected area.
(6) (5) Members of the transition body must be appointed by the Commission, which may seek advice or nominations from the affected local authorities.

The Commission must appoint, on such terms and conditions as it thinks fit, a person to be the manager of the implementa- tion team.
If a transition body includes a transition board,— (a) (7) the majority of the members of the transition board must be elected members of the affected local authorities; and persons who are not elected members of affected local authorities may be appointed as non-voting members of the transition board to provide particular expertise that elected members do not have or are unlikely to have.
(b) 28D Roles and functions of the transition body (1) A transition body is responsible for— 27—2/SOP No 153 95 Schedule 1 Proposed amendments to the Local Government Act 2002 Amendment Bill Schedule 3—continued Part 2A—continued (a) (b) (c) undertaking the roles and responsibilities specified in an Order in Council under section 25(1); and preparing and implementing a change management plan to guide the transition to the new arrangements specified in a reorganisation scheme; and carrying out any other actions that the Commission con- siders are necessary or desirable for the transition to the new arrangements.
(2) During phase 1, the role of a transition board may include 1 or more of the following functions: (a) making recommendations to the Commission on mat- (b) (c) ters of policy: providing advice to the Commission: exercising any powers and responsibilities delegated by the Commission to it.

(3) (4) If the appointment of an interim chief executive is provided for in the Order in Council under section 25(1), the transition board must make that appointment.
The role of an implementation team may include 1 or more of the following functions: (a) giving effect to decisions made by— the transition board; and (i) the Commission; and (ii) (iii) affected local authorities: providing advice on technical and operational matters to— (i) (ii) (iii) providing support to the interim chief executive, if an interim chief executive is appointed.
the transition board; and the Commission; and affected local authorities: (b) (c) 28E Accountability arrangements for the transition body (1) During phase 1, the transition body is responsible to the Com- mission for the performance of its role, responsibilities, and functions under clause 28D.
96 27—2/SOP No 153 Proposed amendments to the Local Government Act 2002 Amendment Bill Schedule 1 Schedule 3—continued Part 2A—continued (2) During phase 2,— (a) (b) if a transition body includes a transition board,— (i) members of the transition board are to represent the interests of the communities within the af- fected area; and the manager of the implementation team is re- sponsible to the transition board; and (ii) if a transition body does not include a transition board, the manager of the implementation team is responsible to the chief executive of each of the affected local au- thorities.
28F Appointment of interim chief executive (1) If an Order in Council under section 25(1) provides for the appointment of an interim chief executive for a local authority, the transition board must, as soon as practicable, appoint a chief executive for the local authority.

The term of an interim chief executive’s appointment must end— (a) not earlier than 2 years after the effective date of the appointment; and not later than 3 years after the implementation date spe- cified in the Order in Council.
(b) (b) In making an appointment under subclause (1), the transition board must have regard to— (a) the matters that a local authority must consider in re- lation to appointing an interim chief executive under clause 33 of Schedule 7; and the skills and experience required of a chief executive in order to— (i) prepare for the establishment of the local author- ity on the implementation date; and exercise, to the extent authorised by Order in Council, the powers set out in clause 28G; and (ii) 27—2/SOP No 153 97 (2) (3) Schedule 1 Proposed amendments to the Local Government Act 2002 Amendment Bill Schedule 3—continued Part 2A—continued (iii) provide effective leadership of the staff and man- agement of the systems and resources of the local authority in the early years of its existence.
28G Interim chief executive may appoint staff, enter into contracts, and call first meeting of local authority (1) A chief executive appointed under clause 28F may, if author- ised by the Order in Council,— (a) (b) (c) (d) employ, on behalf of the local authority, staff for the local authority with a start date before the implementa- tion date; and employ, on behalf of the local authority, staff for the local authority with a start date on or after the imple- mentation date; and on behalf of the local authority, enter into contracts, leases, and other agreements to enable the local author- ity to operate efficiently and effectively on and from the implementation date; and exercise the duties of a chief executive under clause 21 of Schedule 7 to call, before the implementation date, the first meeting of the local authority to be held on or after that date.
(2) (3) The chief executive must exercise the powers in subclause (1) in accordance with the change management plan developed under clause 28D(1)(b) and any other protocols or processes developed by the Commission.
For the purposes of this clause, the chief executive must ex- ercise the powers and perform the functions described in this clause as if the local authority were established, and— (a) any appointment under subclause (1)(a) and (b) made by him or her before the implementation date is— (i) deemed to be made with the express authority of the local authority; and valid and enforceable; and (ii) 98 27—2/SOP No 153 Proposed amendments to the Local Government Act 2002 Amendment Bill Schedule 1 Schedule 3—continued Part 2A—continued (b) any contract, lease, or other agreement entered into under subclause (1)(c) by him or her before the implementation date is— (i) deemed to be entered into with the express au- thority of the local authority; and valid and enforceable.
(ii) (4) Despite subclause (3), all costs and other obligations associ- ated with any appointment, contract, lease, or other agreement made by the chief executive under subclause (1) and incurred before the implementation date must be apportioned between the affected local authorities in accordance with the determin- ation of the Commission under clause 28H.
28H Apportionment of transition costs (1) The Commission must, as soon as practicable after an Order in Council is made under section 25(1), determine how the costs associated with the transition will be apportioned be- tween the affected local authorities.

Before making a determination under subclause (1), the Commission must consult every affected local authority.
This clause applies to— (a) the costs associated with— (i) the operation of the transition body or transition bodies; and the appointment and employment of the interim chief executive; and (ii) (b) the costs referred to in clause 28G(4).
27—2/SOP No 153 99 (2) (3) Schedule 1 Proposed amendments to the Local Government Act 2002 Amendment Bill Schedule 3—continued Part 3 Reorganisation schemes Subpart 1—Preparation of reorganisation schemes 29 (1) (1) (2) (3) (4) 100 Preparation of reorganisation scheme This clause applies to a final proposal that is issued under clause 18 and notified under clause 19 and in relation to which— (a) no poll is held because— (i) the reorganisation proposal does not include any of the matters specified in section 24(1)(a), (b), (c), or (f); or the requirements for a petition under clause 21 have not been met; or (ii) (b) a poll has been held and more than 50% of the valid votes cast in the affected area are for the reorganisation proposal.
(b) (a) (b) This clause applies in relation to a final proposal that is given effect to by an Order in Council under section 25(1).

The Commission must prepare and issue a reorganisation scheme that— (a) includes any of the matters appropriate to the scheme that are specified in clause 30; and in the Commission’s opinion will promote good local government.
completes the final proposal; and is consistent with the final proposal, this Act, and any other enactment; and promotes good local government in a way that meets the needs and preferences of affected communities.

In preparing a reorganisation scheme, the Commission— (a) must consult the Secretary; and (b) may consult or make inquiries of any other persons or organisations, bodies, or groups that it thinks fit.
The Commission may delegate, wholly or in part, to a tran- sition body the responsibility for preparing a reorganisation (c) 27—2/SOP No 153 Proposed amendments to the Local Government Act 2002 Amendment Bill Schedule 1 Schedule 3—continued Part 3—continued Subpart 1—continued scheme, but the Commission retains responsibility for ensur- ing, before the Commission issues it, that the reorganisation scheme complies with subclause (2)(a) to (c).
Subpart 2—Contents of and provisions that apply to reorganisation schemes Provisions for inclusion in reorganisation schemes In preparing a reorganisation scheme, the Commission— (a) must include set out again the matters specified in 30 (1) clause 12(2) and (2A); and (ii) (b) must include the provisions that are necessary to give effect to the scheme and, in particular, must include— include the provisions specified in clause 31 (i) that are considered necessary or desirable as a consequence of the scheme; and include any provisions that are considered neces- sary for the purposes of any affected district or re- gion, or for the discharge of the responsibilities of the local authority of any such district or region, or for any other matter that is necessary or desir- able to give effect to the provisions; and any provisions considered necessary for— (A) (ii) the purposes of the district or region of an affected local authority; or the discharge of the responsibilities of an affected local authority; or any other matter that is necessary or desir- able to give effect to the provisions; and (B) (C) (c) may provide that 1 or more of the provisions of clause 34 clauses 34 and 34A— (i) (ii) apply to the scheme with modifications; or do not apply; and (d) may provide for the application, with the modifications that may be necessary or desirable, of any provisions of 27—2/SOP No 153 101 Schedule 1 Proposed amendments to the Local Government Act 2002 Amendment Bill Schedule 3—continued Part 3—continued Subpart
 2—continued (2) 31 any Act for the time being in force that are considered appropriate to the particular matter; and (e) may make provision for any arrangements the Commis- sion considers necessary or desirable to assist in the transition to a new local authority, including but not limited to— for the purposes of the reorganisation; and the establishment of a transition committee or (i) committees under clause 32; and the appointment by a transition committee of an interim chief executive to a new local authority; and (ii) (f) may specify a period for the purposes of clause 3; and (g) may incorporate any other matters that it considers ne- cessary or appropriate to give effect to the proposal.
If the Commission has, under clause 12(2B), deferred includ- ing representation arrangements or community board arrange- ments, or both, in a proposal, the Commission must include the representation arrangements or community board arrange- ments, or both, in the reorganisation scheme.
Provisions to be included if necessary or desirable If considered necessary or desirable, the following provisions may be included in a reorganisation scheme: (a) provisions determining the nature or constitution of a new local authority: provisions necessary for the first or any election or ap- pointment of members of a local authority or commu- nity board affected by the scheme: provisions that are necessary for the effective transition and future carrying out of responsibilities that are to be transferred from one local authority to another local authority: provisions dealing with the requirements and applica- tion of long-term plans, annual plans, and annual reports as provided for under this enactment: (b) (c) (d) 102 27—2/SOP No 153 (e) (f) (g) (h) (i) (j) Proposed amendments to the Local Government Act 2002 Amendment Bill Schedule 1 Schedule 3—continued Part 3—continued Subpart 2—continued provisions dealing with the requirements in any enact- ment that relate to plans, programmes, and strategies, including (but not limited to) regional land transport land transport strategies programmes and regional under the Land Transport Management Act 2003: provisions dealing with— (i) the administration of an existing, proposed, or operative district plan or regional plan under the Resource Management Act 1991: the administration of any designations, resource consents, and notices of requirement under the Resource Management Act 1991, but subject to sections 81 to 180 of that Act: (ii) if an area is included in the district of another territorial authority, provisions that the civil defence emergency management group plan for the district in which the area is included applies to the area so included and is the only operative local civil defence plan to apply in that area: if a new district or region is constituted, provisions that every civil defence emergency management group plan that is in force in respect of any area included in that district or region continues in force until a new plan is prepared and approved
 for the district under the Civil Defence Emergency Management Act 2002: provisions for committees for the first term of the new local authority and membership and responsibilities of those committees: provisions dealing with the apportionment or dispos- ition of the assets and liabilities of all or any of the local authorities affected by the scheme, which provi- sions may include the date on which any of the appor- tionment or disposition takes place or may be treated as having taken place: 27—2/SOP No 153 103 Schedule 1 Proposed amendments to the Local Government Act 2002 Amendment Bill Schedule 3—continued Part 3—continued Subpart 2—continued (ja) (k) provisions dealing with the transfer, in accordance with clause 38A, of employees of the local authorities af- fected by the scheme: provisions concerning rating in a new district or region, or enlarged district or region, which may— (i) (ii) (iii) specify the date by which a single integrated rat- ing system must be adopted in the district or re- gion; and specify the valuation system for any general rate forming part of the initial integrated rating sys- tem; and specify the basis on which rates may be set and assessed within the district or region between the date the order takes effect and the date specified under subparagraph (i), which may include the use of different rating systems for specified rates, or for specified rates in different parts of the dis- trict or region; and (l) (iv) make such other provision for the transition to, or implementation of, the single integrated rating system as the Commission considers desirable: if a district or region is abolished and the whole or any part of it is included in the district or region of another local authority, provisions for the representation of the district or region being abolished or part of it on the other local authority until the next triennial general elec- tion of members of the other local authority.
32 Provisions to enable effective transition If provision is made for the establishment of a committee or committees to assist the transition to a new local authority, the Commission may— (a) determine, or provide for the determination of, membership of each committee: the 104 27—2/SOP No 153 Proposed amendments to the Local Government Act 2002 Amendment Bill Schedule 1 Schedule 3—continued Part 3—continued Subpart 2—continued (b) (c) (d) (e) (f) (g) appoint, or provide for the appointment of, the chairper- son of each committee: determine the functions and powers of each committee: require each committee to take any other steps the Com- mission considers necessary for the transition to the new local authority: apportion costs of the functioning of each committee between the affected local authorities: apportion costs of the appointment of the interim chief executive: take any steps the Commission considers necessary to monitor, and make recommendations in relation to, the transition to the new local authority.
Subpart 3—Implementation and effect of reorganisation schemes reorganisations Application This subpart applies in relation to a reorganisation scheme on and from the date the scheme is given effect to by an Order in Council under section 25.
This subpart applies— (a) in relation to a reorganisation scheme on and from the date the scheme is given effect to by an Order in Council under section 25(4); and to the extent that the matters in this subpart have not already been provided for in an Order in Council made under section 25(1) giving effect to a final proposal.

(b) 33 (1) (2) In this subpart, reorganisation order means an Order in Council made under section 25(4).
27—2/SOP No 153 105 Schedule 1 Proposed amendments to the Local Government Act 2002 Amendment Bill Schedule 3—continued Part 3—continued Subpart 3—continued 34 Provisions that apply to reorganisation scheme unless modified or excluded The following provisions apply to a reorganisation scheme un- less amended by the reorganisation scheme or declared by the reorganisation scheme not to apply: (a) the local authority that assumes, under the scheme, jur- isdiction over an area formerly comprising or forming part of a separate district or region, or that takes over the responsibilities of a local authority, has, and may exer- cise, and is responsible for,— (i) all the powers, duties, acts of authority, and re- sponsibilities that were previously exercised by the former local authority, or that would have been exercised by it if it had remained in exis- tence or in control of that area: all the liabilities, obligations, engagements, and contracts that were previously the responsibility of the former local authority, or that would have been its responsibility if it had remained in exis- tence or in control of that area: all the actions, suits, and proceedings pending by or against the former local authority, or that would have been its responsibility if it had re- mained in existence or in control of that area: (ii) (iii) (b) (c) (d) the responsibilities, duties, and powers of the mayor, chairperson, and chief executive of the former local au- thority must be exercised by the mayor, chairperson, and chief executive of
 its successor: all real and personal property vested in an abolished local authority vests in its successor, subject to all exist- ing encumbrances: a local authority that assumes jurisdiction over an area that was formerly part of a separate district or region has, subject to all existing encumbrances, vested in it all the land situated in that area that was vested in the 106 27—2/SOP No 153 (e) (f) (g) Proposed amendments to the Local Government Act 2002 Amendment Bill Schedule 1 Schedule 3—continued
 Part 3—continued Subpart 3—continued local authority that formerly had jurisdiction over that area: all bylaws in force in the district or region of an abol- ished local authority, or in the part of a district or region included in another district or region, that are applic- able to the altered circumstances of the new controlling local authority are to be treated as the bylaws of that local authority, and those bylaws remain, until revoked or altered by that local authority, in force in the area in which they were in force immediately before the aboli- tion or the alteration of boundaries, and, if those bylaws cannot be restricted to that area, they must be treated as inapplicable and revoked by the abolition or alteration of boundaries: all rates or levies and other money payable in respect of an abolished local authority, or of an area of land in- cluded in the district or region of another local authority, are due and payable to the new local authority: if the area of an abolished district or region comprises part only of another district or region, any money to the credit of the abolished local authority’s accounts must, after all liabilities have been provided for, be ex- pended to the benefit of the residents of that area, and any money required to be paid into the accounts of the abolished local authority to meet any deficiency must be raised within the area of the abolished local author- ity:— (i) any money to the credit of the abolished local au- thority’s accounts must, after all liabilities have been provided for, be expended to the benefit of the residents of that area; and any money required to be paid into the accounts of the abolished local authority to meet any defi- ciency must be raised within the area of the abol- ished local authority: (ii) 27—2/SOP No 153 107 Schedule 1 Proposed amendments to the Local Government Act 2002 Amendment Bill Schedule 3—continued Part 3—continued Subpart 3—continued (h) (i) (j) the rights or interests of creditors
 of a district or region must are not be affected: the valuation rolls, electoral rolls, and rate records in force in the district or region of an abolished local au- thority, or in relation to any part of the district or re- gion of a local authority included in the district or re- gion of another local authority, continue in force in the district or region of the new controlling local authority until those rolls or records are made by that local author- ity, and, until that time, the Local Government (Rating) Act 2002 applies: except in the circumstances specified in clause 1, 2, 4, or 5 of Schedule 7, if part of a district or region is excluded from that district or region and included in another dis- trict or region, the members of the local authority of the first-mentioned district or region continue to be mem- bers of that district or region as if that part had not been excluded from the district or region.
34A Bylaws (1) (2) The provisions of this clause apply unless amended by a re- organisation scheme or declared by the reorganisation scheme not to apply.
Subclauses (3) to (8) apply to bylaws if— (a) they are in force in all or part of a district or region that, under a reorganisation order, is included in the jurisdic- tion of a local authority other than the local authority that made them; and they are in force immediately before the implementa- tion date; and they are not excluded from the application of this clause by the reorganisation order.
(b) (c) (3) On and from the implementation date, the bylaws are deemed to have been made by the local authority assuming jurisdiction of the area.
108 27—2/SOP No 153 Proposed amendments to the Local Government Act 2002 Amendment Bill Schedule 1 Schedule 3—continued Part 3—continued Subpart 3—continued Each bylaw must be reviewed by the local authority assuming jurisdiction over the area at the time and in accordance with the requirements of any enactment under which it was made, or last reviewed, by the authority that made it.
Each bylaw remains in force, in the area to which it applied immediately before the commencement of the reorganisation order, for a period of 5 years, and is then revoked, unless before that period ends— (a) the local authority assuming jurisdiction of the area con- firms the bylaw, in which case the confirmed bylaw be- comes a bylaw made by that local authority and remains in force until it expires or is revoked; or the local authority assuming jurisdiction of the area amends the bylaw, in which case the bylaw as amended becomes a bylaw made by that local authority and remains in force until it expires or is revoked; or the local authority assuming jurisdiction of the area re- vokes the bylaw.
(b) (c) The local authority assuming jurisdiction of the area must use the special consultative procedure before confirming, amend- ing, or revoking a bylaw under subclause (5)(a), (b), or (c).

If section 159 applies to a bylaw confirmed or amended under this clause, for the purposes of that section the date of the con- firmation or amendment of the bylaw must be treated as if it were the date of the last review of the bylaw.
In this clause, bylaw includes— a set of bylaws; and (a) an individual bylaw in a set of bylaws; and (b) a provision within an individual bylaw.
(c) Effect of Order in Council giving effect to reorganisation scheme An Order in Council giving effect to a reorganisation scheme does not affect— 27—2/SOP No 153 109 (4) (5) (6) (7) (8) 35 Schedule 1 Proposed amendments to the Local Government Act 2002 Amendment Bill Schedule 3—continued Part 3—continued Subpart 3—continued (a) (b) any separate rate or special rate, and every such rate continues to be charged on the whole of the area of land on which it was charged before the making of the order and does not, for that reason, become a charge on any additional area; and the area within which, and the purposes for which, any unexpended loan money may be expended.
Power to amend basis of certain rates 36 (1) Despite clause 35, a local authority constituted by an Order in Council giving effect to a reorganisation scheme may, with the approval of the Commission, make and levy a rate for the pur- pose of meeting the annual charges for a special loan (within the meaning of the Local Authorities Loans Act 1956) raised by any of the former authorities.
(2) A rate made and levied under subclause (1) may be made and levied only over the area of the district of the local au- thority (being an area different from that over which the loan is secured) that the Commission agrees is benefiting or will benefit from the undertaking or amenity for which the special loan was raised.

This clause does not authorise any alteration to the area over which any special loan is secured.
(3) 37 (1) (2) 110 No compensation payable if responsibility transferred If provision is made in a reorganisation scheme order for a responsibility to be transferred to, or assumed by, a local au- thority, provision may not be made for the payment of com- pensation to the local authority from which that responsibility is transferred or assumed.

This clause applies subject to clauses 38 and 42.
27—2/SOP No 153 Proposed amendments to the Local Government Act 2002 Amendment Bill Schedule 1 Schedule 3—continued Part 3—continued Subpart 3—continued 38 (1) (2) (3) (4) Payment if trading undertaking transferred If a reorganisation scheme order provides for the transfer of a trading undertaking from a local authority (the transferor) to any other local authority (the transferee), the transferor may request the Commission to determine whether any payment for the transfer of the trading undertaking should be made by the transferee to the transferor and, if so, the amount of the payment.
The Commission may, in considering a request under sub- clause (1), require the local authorities to each appoint an independent person as an assessor to report to the Commis- sion on whether any payment should be made.

The costs incurred by assessors must be met jointly by the local authorities appointing the assessors.

The Commission may make a determination under this clause subject to any conditions that it considers desirable.
38A Employees (1) This clause applies where— (a) a local authority (local authority A) ceases to exist under a reorganisation scheme and its district or region is included in the district or region of another local au- thority (local authority B); or a reorganisation scheme provides, under clause 31(ja) for the transfer of employees from a local authority (local authority A) to another local authority (local au- thority B).
(b) (2) On and from the implementation date, a person who was, im- mediately before that date, an employee of local authority A becomes an employee of local authority B.
For the purposes of every enactment law, award, determin- ation, contract, and agreement relating to the employment of the person,— (a) his or her employment agreement is unbroken; and (3) 27—2/SOP No 153 111 Schedule 1 Proposed amendments to the Local Government Act 2002 Amendment Bill Schedule 3—continued Part 3—continued Subpart 3—continued (b) the period of his or her service with local authority A is to be treated as a period of service with local authority B.
(4) (5) The terms and conditions of employment of the person with local authority B are— (a) identical to the terms and conditions of his or her em- ployment with local authority A immediately before the implementation date; and capable of variation in the same manner.

(b) The person is not entitled to receive any payment or other benefit because he or she has, under this Act, ceased to be an employee of local authority A and become an employee of local authority B.
38B KiwiSaver Act 2006 does not apply to transferred employee The transfer of an employee’s employment under clause 38A does not constitute new employment for the purposes of the KiwiSaver Act 2006.
39 Certain matters not affected by transfer of responsibilities, duties, or powers A reorganisation scheme order does not— (a) place a local authority or other person in breach of con- tract or confidence or otherwise make the local authority or other person guilty of a civil wrong; or give rise to a right for a person to terminate or cancel any contract or arrangement, or to accelerate the per- formance of an obligation; or place a local authority or other person in breach of any enactment or rule of law or contractual provision prohibiting, restricting, or regulating the assignment or transfer of property or the disclosure of information; or release a surety wholly or in part from an obligation; or invalidate or discharge a contract or security.
(b) (c) (d) (e) 112 27—2/SOP No 153 40 (1) (2) 41 (1) (2) Proposed amendments to the Local Government Act 2002 Amendment Bill Schedule 1 Schedule 3—continued Part 3—continued Subpart 3—continued Registers The Registrar-General of Land or other person charged with the keeping of books or registers is not required solely by rea- son of an Order in Council giving effect to a reorganisation scheme a reorganisation order to change the name of the trans- feror to that of the transferee in those books or registers or other documents.
The presentation to the Registrar-General of Land or other per- son of an instrument, whether or not comprising an instrument of transfer by the transferee, is, in the absence of proof to the contrary, sufficient evidence that the property is vested in the transferee if the instrument— (a) is executed, or purports to be executed, by the trans- feree; and is related to property held by the transferor; and contains a recital that the property has become vested in the transferee by virtue of an Order in Council giving effect to a reorganisation scheme a reorganisation order made under this Act.
(b) (c) General This clause applies if, under a reorganisation scheme, a local authority assumes jurisdiction over an area formerly compris- ing a separate district or region, or formerly constituting a de- fined part of the district or region from which it was excluded.
If this clause applies, the local authority— (a) has and may exercise, unless the Order in Council states otherwise, all the powers to raise a loan, or the part of the loan that has not already been raised, that could have been exercised by the local authority that had resolved to raise the loan if it had remained in existence or in control of the part excluded from its district or region; and is subject to the same duties, obligations, and liabilities that were, or would have been, imposed on the local (b) 27—2/SOP No 153 113 Schedule 1 Proposed amendments to the Local Government Act 2002 Amendment Bill Schedule 3—continued Part 3—continued Subpart 3—continued authority that had resolved to raise the loan if it had remained in existence or in control of the part excluded from its district or region if, under the scheme,— (i) 2 or more districts or regions are united, whether or not of the same kind; or a district or region is included in another district or region, or is abolished; or a part of a district or region that is or includes a part of the district or region that is separately defined for the purposes of the loan is excluded from the district or region and is constituted as a new district or included in another district or region; and (ii) (iii) (c) before the union, inclusion, abolition, or exclusion, the local authority of an area formerly comprising a separ- ate district, or of the district or region from which the part was excluded, had resolved to raise a loan, being a loan for the benefit of that defined part, but had not raised the loan, or had raised only part of the loan, and the resolution has not lapsed.
If, on the addition of an area to a district of a territorial author- ity, a liability is imposed on the local authority, a special rate made and levied as security for a loan raised under subclause (2) may be made and levied over the whole district or, if the special order to raise the loan so provides, over the added area.
If part of a district or region is excluded from that district or region and included in another district or region, the remaining part of the first-mentioned district or region continues to be the same district or region.
Apportionment of assets and liabilities If an Order in Council or a reorganisation scheme a reorgan- isation order does not make provision for the apportionment of the assets and liabilities of the local authorities affected by the order, the local authorities may, by agreement, determine 27—2/SOP No 153 (3) (4) 42 (1) 114 Proposed amendments to the Local Government Act 2002 Amendment Bill Schedule 1 Schedule 3—continued Part 3—continued Subpart 3—continued (2) (3) (4) the manner in which those assets and liabilities must be appor- tioned.
If an agreement is not entered into by the local authorities con- cerned within 3 months after the date of the coming into force of the reorganisation order, a local authority directly affected may apply to the Commission for an order apportioning as- sets and liabilities, and the Commission must make an order directing the manner in which assets and liabilities must be ap- portioned among the local authorities concerned.
For the purpose of deciding an application to the Commission under subclause (2), the Commission— (a) must consult the Auditor-General and the local author- ities directly affected; and (b) may make the inquiries that it thinks fit; and (c) may obtain advice from any other person who, in the opinion of the Commission, has expert knowledge con- cerning any aspect of the matter to be decided.
In the exercise of its powers under subclause (2), the Com- mission may identify the assets and liabilities to be transferred, and assets and liabilities to be transferred must include all amounts and items that properly ought to be treated as being of the same character, irrespective of how they may be described in the accounts or records of any local authority.

(6) (5) An order of the Commission under subclause (2) may be en- forced as if it were an agreement between the local authorities concerned.
For the purposes of the Income Tax Act 2007, the Goods and Services Tax Act 1985, and the Accident Compensation Act 2001, a local authority constituted under a reorganisation scheme order is deemed to be the same local authority as each of the local authorities whose district, region, or functions are wholly transferred to that local authority.
27—2/SOP No 153 115 Schedule 1 Proposed amendments to the Local Government Act 2002 Amendment Bill Schedule 3—continued Part 3—continued Subpart 3—continued 43 (1) Apportionment of fuel tax revenue This clause applies if, under an Order in Council giving effect to a reorganisation scheme,— (a) any proceeds of a fuel tax levied under Part 11 of the Local Government Act 1974 are distributed among the component authorities affected by the proposal in ac- cordance with Part 11 of that Act; and either— (i) (b) a new district of a component authority is con- stituted comprising or including only part of an- other such district then existing; or the boundaries of the district of a component au- thority are altered by the inclusion of an area of land forming part of another such district.
(ii) (2) Despite Part 11 of the Local Government Act 1974, the com- ponent authorities whose districts have respectively been in- creased and decreased in area and the component authority for the newly constituted district may, by agreement, determine the basis on which the proceeds of a final tax levied under that Part are distributed among them until the expiration of the year commencing on 1 July on or after the day on which the Order in Council comes into force.
Clause 42(3) to (5) apply as if an order of the Commission under clause 41(2) were an order determining an issue under subclause (2) of this clause.

(3) (4) Nothing in this clause has the effect of altering the provisions of Part 11 of the Local Government Act 1974 in respect of the proportion of the proceeds of any tax distributed under that Part to any constituent authorities whose districts are not altered by the Order in Council or other instrument.
(1) Despite Part 11 of the Local Government Act 1974, the local authorities established or affected by a reorganisation order may, by agreement, determine that the proceeds of fuel tax levied under that Part are to be distributed among them other than in accordance with that Part.
116 27—2/SOP No 153 Proposed amendments to the Local Government Act 2002 Amendment Bill Schedule 1 Schedule 3—continued Part 3—continued Subpart 3—continued (2) If agreement under subclause (1) cannot be reached within 3 months after the date on which the reorganisation order comes into force, any of those local authorities may apply to the Com- mission for an order determining the matter in accordance with clause 42(2) to (5).
(3) An agreement under subclause (1), or an order under sub- clause (2), applies only to the end of the first financial year that commences after the date on which the reorganisation order comes into force.

27—2/SOP No 153 117 Schedule 2 Proposed amendments to the Local Government Act 2002 Amendment Bill Schedule 2 Consequential amendments s 28 Auckland Regional Amenities Funding Act 2008 (2008 No 3 (P)) In section 4, repeal the definition of reorganisation scheme.
Local Electoral Act 2001 (2001 No 35) In section 19W(a), replace “reorganisation proposals” with “local government reorganisation”.

In section 19Z(5)(b), replace “section 255(1)(b) or Schedule 15” with “section 258G or 258J”.

In section 19ZG(2)(c) and (4)(c), replace “section 255(1)(b) or Schedule 15” with “section 258G or 258J”.

In section 24A(3) and (4), replace “section 255(1)(b) or Schedule 15” with “section 258G or 258J”.
In section 24D(3) and (4), replace “section 255(1)(b) or Schedule 15” with “section 258G or 258J”.

In section 27(4)(b), replace “section 255(1)(b) or Schedule 15” with “section 258G or 258J”.

In section 34(1)(c) and (2)(c), replace “section 255(1)(b) or Schedule 15” with “section 258G or 258J”.
Local Government (Auckland Council) Act 2009 (2009 No 32) Replace section 10(b) with: “(b) better enabling the Auckland Council to give effect to the purpose of local government to be given effect to within the local board area.” In section 11(1A)(b), replace “reorganisation proposal” with “local government reorganisation”.

In section 13A(1), replace “proposal” with “application”.

In section 13A(2), replace “26” with “26A”.

In section 13A(2), replace “a proposal” with “an application”.
In section 13A(3), replace “proposal” with “application”.

In section 32A, replace “sections 254 to 257” with “Part 10”.

In section 32A, replace “those sections and Part 1 of Schedule 15 of that Act apply” with “that Part applies”.
118 27—2/SOP No 153 Proposed amendments to the Local Government Act 2002 Amendment Bill Schedule 2 Local Government (Auckland Council) Act 2009 (2009 No 32)—continued In section 32A, insert as subsection (2): “(2) This section applies despite section 253B of that Act.” Repeal Part 3.

Local Government (Auckland Transitional Provisions) Act 2010 (2010 No 37) In section 9(1), after “proposal”, insert “or reorganisation applica- tion”.
Plumbers, Gasfitters, and Drainlayers Act 2006 (2006 No 74) In section 17(1) and (2), replace “giving effect to the relevant re- organisation scheme under” with “under section 25 of”.

Receiverships Act 1993 (1993 No 122) In the Schedule, clause 3, replace “Commissioner appointed under section 255 or section 258 of the Local Government Act 2002 or to a commission appointed under clause 14 of Schedule 15 of that Act” with “Commission appointed under section 258D of the Local Government Act 2002”.
In the Schedule, clause 4, replace “the appointment of a Commis- sioner under section 255 or section 258 of the Local Government Act 2002 or to a commission appointed under clause 14 of Schedule 15 of that Act” with “a Commission appointed under section 258D of the Local Government Act 2002”.

11 Published under the authority of the House of Representatives— Wellington, New Zealand: 27—2/SOP No 153 119