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Auckland Regional Amenities Funding Bill Private Bill As reported from the Local Government and Environment Committee Commentary Recommendation The Local Government and Environment Committee has examined the Auckland Regional Amenities Funding Bill and recommends that it be passed with the amendments shown.
Introduction The Auckland Regional Amenities Funding Bill would establish a statutory framework for the secure and sustainable funding of the following organisations providing arts, educational, rescue, or other community facilities or services in the Auckland region: • • • • • • • Auckland Observatory and Planetarium Trust Board Auckland Philharmonia Auckland Regional Rescue Helicopter Trust Auckland Theatre Company Limited Coastguard Northern Region Incorporated New Zealand National Maritime Museum Trust Board New Zealand Opera Limited 151—2 2 Auckland Regional Amenities Funding Bill Commentary Surf Life Saving Northern Region Incorporated The Auckland Festival Trust WaterSafe Auckland Incorporated.
• • • In addition, the bill would enable the Auckland Zoo to receive fund­ ing, subject to its ﬁrst being established as a separate entity.
To achieve its objectives, the bill sets out a mechanism for speciﬁed amenities to apply for and receive regional funding through a levy to be met collectively by the territorial authorities in the Auckland re­ gion, proposes an associated governance structure through the Elect­ oral College and Auckland Regional Amenities Funding Board, and sets out criteria for the inclusion of new organisations in the funding regime.
This commentary discusses the main issues considered by the com­ mittee and explains the signiﬁcant amendments we recommend to the bill.

It does not address minor and technical amendments.

Current funding arrangements We note with disappointment the apparent unfairness and inequity of current funding arrangements.
The organisations covered by the bill are clearly organisations that serve the people of the region without bias, yet the local government contribution to their funding falls dis­ proportionately on the ratepayers of Auckland City.

We acknowledge the support that Auckland City Council has historically provided, and continues to provide, to these groups.

Submissions received We received and considered 505 submissions, which expressed a range of views on the bill.

Submitters fell into four main groups.


Representatives and supporters of the amenities speciﬁed in the bill and other organisations involved in the funding of the amenities were strongly in favour of the bill.

Representatives and supporters of other organisations wishing to be included as speciﬁed amenities also gen­ erally supported the bill, but wanted amendments to Schedule 1 to add other amenities.
The bill’s supporters emphasise the need for Auckland to continue to have services and facilities of a certain standard to retain the city’s character and international appeal.

The organisations that will bene­ Commentary Auckland Regional Amenities Funding Bill 3 ﬁt from the bill currently struggle to survive as they have little or no ongoing and sustainable income.

This bill would provide ﬁnancial security for these organisations, allowing them to plan ahead and to focus on service provision.
Supporters regard the organisations that will beneﬁt as regional, and as such appropriate candidates for fund­ ing from regional sources such as the territorial authorities named in the bill.

Apart from Auckland City Council, the local authorities and commu­ nity boards in the Auckland region opposed the bill, as did various groups and individuals concerned about its potential impact on rates.
While these councils praised the work of the various amenities in­ cluded in the bill, they do not believe that funding should be derived from councils in the way the bill proposes.

They suggested it would be more appropriate for the funding to come from the Auckland Re­ gional Council, rather than the local councils, to make the funding more transparent for ratepayers.
Councils and submitters opposed to the bill also suggested that the requirement for councils to provide up to two percent of rates income to the levy fund would create ﬁnancial hardship at a time when rates and other costs had become signiﬁcant burdens on ratepayers.
Role of the Auckland Regional Council We considered a proposal from the promoters that the bill be amended so that Auckland Regional Council (ARC) would be the agency to collect and distribute the funding levy, rather than another body set up for this speciﬁc purpose.
Under the Local Government Act 2002, the role of the ARC includes giving effect, in its region, to the purpose of enabling democratic local decision­making and promoting the social, economic, environ­ mental, and cultural well­being of communities.

To fulﬁl this pur­ pose, the ARC can make and implement decisions about the funding of regional amenities.
The ARC advised us that they have some con­ cerns about the bill as introduced, and requested that decisions on the funding of regional amenities be deferred until the Royal Commis­ sion of Inquiry into Auckland Governance has reported.

We believe that there is merit in the proposal that the ARC adopt a more active role in the funding of regional amenities, and we note that this view was expressed by a number of submitters.
However, 4 Auckland Regional Amenities Funding Bill Commentary we were advised that an amendment to substitute the ARC as the collecting agency is outside the scope of the bill, as determined by the public notice of intention to introduce this private bill; we therefore do not recommend any substantive amendments to the processes and mechanisms for the collection and distribution of the funding levy.
Royal Commission of Inquiry on Auckland Governance The Royal Commission of Inquiry is due to report by 1 December 2008 on the regional and local governance arrangements needed in the Auckland region in the foreseeable future.

The inquiry has broad terms of reference which could result in recommendations that would affect the funding of regional amenities.
The ARC and some other submitters suggested that it would be ad­ visable to consider funding arrangements for regional organisations in the context of the wider changes to local government that may fol­ low the Royal Commission.

However, we recognise that it is uncertain when the recommenda­ tions of the Royal Commission may be implemented, and whether a timely solution can be found for the funding difﬁculties faced by all the speciﬁed amenities.
We believe that this bill is needed to ensure the continued existence of the amenities.

Funding mechanisms The bill’s proposal for regional funding and associated governance mechanisms is based on equivalent provisions in the Auckland War Memorial Museum Act 1996, and the Museum of Transport and Technology Act 2000.
While the bill’s proposed Electoral College and funding board struc­ ture sits outside the framework and processes of the Local Govern­ ment Act 2002, we believe that there is sufﬁcient commonality be­ tween aspects of the structure and the Act’s processes to ensure ap­ propriate consultation, reporting, and accountability.
Each territorial authority in the Auckland region would be levied on the basis of their rates in the previous ﬁnancial year as a proportion of the total rates for all the territorial authorities in the Auckland re­ gion for that year.
Although the funding formula in the bill could Commentary Auckland Regional Amenities Funding Bill 5 lead to territorial authorities increasing rates, or diverting funding from existing priorities, we believe that these concerns are balanced by the security that statutory funding would offer the speciﬁed amen­ ities.

The bill caps the maximum amount of the levy at no more than two percent of the territorial authorities’ combined rates revenue in the previous ﬁnancial year.
We consider this cap would provide an appropriate safeguard.

Revenue from rates The funding formula in the bill requires the calculation of each contributing authority’s adjusted revenue and total adjusted revenue.

Some submitters suggested that this would raise an equity issue for those councils whose water and wastewater are charged using non­rates mechanisms, and who would therefore pay a proportion­ ately smaller levy than councils who include water and wastewater in their rates.
Accordingly, we recommend that the deﬁnition of “revenue from rates” in clause 4 be amended to exempt any targeted rate, or the part of the revenue from any general rate, that is to be applied to the provision of water or wastewater services.

Administrative bodies Two key administrative bodies, the Auckland Regional Amenities Funding Board, and the Amenities Board, would be established under Part 2 of the bill.
We believe there should be a clear and strong link between the bill’s purpose, the activities of the administrative bodies, and the funding application process and criteria, to ensure a focus on the well­being of the Auckland region, to contribute towards making Auckland a vibrant and attractive place to live in and visit, and to en­ sure that all territorial authorities in the region are part of the funding mechanism and so contribute to the funding of the speciﬁed amen­ ities.
We therefore recommend the insertion of new clause 4A, which requires the funding board and amenities board to act in accordance with the purpose of the bill when performing their functions and du­ ties and exercising their powers.

We note that the bill as introduced does not specify how Māori inter­ ests will be represented.
We believe it would be desirable for the bill to provide for Māori representation on the funding board, and 6 Auckland Regional Amenities Funding Bill Commentary therefore recommend the insertion of new clause 6(3A).

Under this clause, one of the six members appointed by the Electoral College to the funding board must be appropriate to represent Māori interests in the Auckland region.
Addition and removal of speciﬁed amenities Clauses 17 and 18 set out the processes by which the Electoral Col­ lege would decide that a new amenity should be added to the list of speciﬁed amenities, or an existing amenity should be suspended or deleted.

A notice of decision, which would have the status of a regu­ lation, to add or remove a speciﬁed amenity would be required under clause 19 of the bill.
We received advice from the Regulations Review Committee that the addition or removal of a speciﬁed amenity should occur only through amendment to the principal Act.

While we acknowledge the con­ cerns of the Regulations Review Committee, we are satisﬁed that the processes in the bill are appropriate to the bill’s purpose and object­ ives.
The local focus of the bill and the need to provide long­term ﬂexibility for changing speciﬁed amenities mean that it is desirable to have a relatively quick and simple mechanism, as provided in the bill.

We note, too, that there are similar mechanisms, which allow schedules to be amended by Order in Council, in other local and pri­ vate legislation.1 Administrative provisions for funding board The administrative provisions for the funding board are contained in schedule 4 of the bill.
Clause 1 of the schedule states explicitly that the funding board is not a council­controlled organisation for the purposes of the Local Government Act 2002.

We note the view of the bill’s promoters that the specialist role of the board requires tailor­made accountability provisions, and that its composition has been designed to achieve an appropriate balance between the speci­ ﬁed amenities and the territorial authorities.
The promoters do not believe it would be appropriate for territorial authorities to exercise 1 For example, the Waitakere Ranges Heritage Area Act 2008, the Anglican Church Trusts Act 1981, and the Marlborough Harbour Act 1958.

Commentary Auckland Regional Amenities Funding Bill 7 control over the board by means of a statement of intent or other Local Government Act 2002 mechanism.
Clause 6 of schedule 4 sets out the circumstances where a board member’s appointment would cease and an extraordinary vacancy be created.

Under clause 6(1)(k) of the bill as introduced, an extraor­ dinary vacancy would be created if the member became subject to a compulsory treatment order under Part 2 of the Mental Health (Com­ pulsory Assessment and Treatment) Act 1992.
The Attorney­General advised us that this clause appears to be inconsistent with section 5 of the New Zealand Bill of Rights Act 1990, because the bill does not provide any opportunity for a member to resume his or her mem­ bership of the board once the compulsory treatment order has ended.

Therefore, we recommend that clause 6(1)(k) be deleted.

In the bill as introduced, the funding board is required to decide the remuneration for its members.
We consider it inappropriate for the funding board to set the pay for its own members.

Accordingly, we recommend amendments to clause 10 of schedule 4 to provide more accountability and transparency on remuneration matters.

We rec­ ommend providing for the funding board to make recommendations on the appropriate amount to pay its members.
The Electoral Col­ lege would then be required to approve the remuneration for funding board members at an appropriate level, having regard to the pub­ lic purpose of the funding board’s functions and the extent of public funding of its operations.

National Party minority view The background to this bill is the signiﬁcant deﬁciencies in the struc­ ture of local government in Auckland, which does not provide effect­ ively for the provision of Auckland­wide community services.
As a consequence, the funding for a number of important public services covering rescue, water safety, arts, and heritage are in funding crisis.

National considers that the bill does not provide a long­term mech­ anism for funding these services.

The bill imposes a rate by Central Government legislation, which overrides the normal process of local government being accountable for their rates.
The right answer to these problems lies in the reform of Auckland’s local government structures and that is why we have supported the Royal Commission on Auckland Governance.

8 Auckland Regional Amenities Funding Bill Commentary The reality is that any reforms arising from the Royal Commission are some years away and that some interim funding mechanism is required to ensure these amenities and services survive.

That is why National is supporting this bill only as an interim response.
National will only support the bill beyond a second reading on the basis that there is a clear sunset clause no later than 1 July 2012.

Such funding mechanisms are not good public policy and National does not wish this arrangement to have any permanence on New Zealand’s statute books.

Other parties on the committee did not have time to consider this matter in their caucuses.
Commentary Auckland Regional Amenities Funding Bill 9 Appendix Committee process The Auckland Regional Amenities Funding Bill was referred to the committee on 19 September 2007.

The closing date for submissions was 5 November 2007.

We received and considered 505 submissions from interested groups and individuals.

We heard 38 submissions.

Evidence was heard in Auckland.

We received advice from the promoters of the bill, Auckland Re­ gional Council, and the Department of Internal Affairs.
The Regu­ lations Review Committee reported to the committee on the powers contained in clauses 17, 18, and 19.
Committee membership Moana Mackey (Chairperson) (from 7 November 2007) John Carter (Deputy Chairperson) Hon David Benson­Pope (from 7 November 2007) Mark Blumsky (until 30 July 2008) Hon Mark Burton (from 7 November 2007 until 2 April 2008) Hon Steve Chadwick (until 7 November 2007) Jacqui Dean Russell Fairbrother (until 7 November 2007) Martin Gallagher (until 7 November 2007) Hon Marian Hobbs Dr Russel Norman (from 1 July 2008) Su’a William Sio (from 2 April 2008) Hon Dr Nick Smith Mētīria Turei (until 1 July 2008) Nicky Wagner (from 30 July 2008) Auckland Regional Amenities Funding Bill Key to symbols used in reprinted bill As reported from a select committee text inserted unanimously text deleted unanimously Hon Judith Tizard Auckland Regional Amenities Funding Bill Private Bill Contents Preamble Title Commencement Purposes Interpretation 1 2 3 4 Part 1 Preliminary provisions Part 2 Funding mechanism Subpart 1—Administrative bodies 4A Funding Board and Amenities Board and purpose of Act Funding Board Establishment Membership Charitable purposes Powers Administration Amenities Board Function Membership Amenities Board 151—2 Page 3 4 4 5 5 7 7 7 8 8 8 9 9 9 1 Auckland Regional Amenities Funding Bill Subpart 2—Speciﬁed amenities Assessment criteria Assessment criteria Discretion in application of assessment criteria Procedure Organisation applies to be speciﬁed amenity Funding Board assesses application Electoral College decides whether organisation to be speciﬁed amenity Electoral College decides whether organisation to be suspended or cease to be speciﬁed amenity Notices Subpart 3—Funding process Funding principles 20 Funding principles Funding applications Speciﬁed amenity may prepare long­term plan Speciﬁed amenity applies for funding Funding Board assesses application Funding plans Funding Board prepares draft funding plan Funding Board and Electoral College confer over draft funding plan Funding Board consults on draft funding plan Electoral College considers funding
 plan If Electoral College does not approve levy Funding Board adopts funding plan First ﬁnancial year Individual payments for ﬁrst ﬁnancial year Individual levies for ﬁrst ﬁnancial year Contributing authorities pay levies for ﬁrst ﬁnancial year Funding levies Maximum individual and total levies for ﬁnancial years after ﬁrst ﬁnancial year Funding Board resolves to ﬁx individual levies Contributing authorities pay levies for ﬁnancial years after ﬁrst ﬁnancial year Auckland Regional Amenities Funding Bill Preamble 36 If contributing authority’s district changes 37 Funding Board pays funding Funding payments 38 39 40 41 42 43 44 45 46 Subpart 4—Reporting Speciﬁed amenity does annual report Funding Board does annual report Contributing authority’s annual report Subpart 5—Miscellaneous provisions Speciﬁed amenities may seek other funding Auckland Zoo Subpart 6—Transitional provisions Funding Board: ﬁrst appointments Funding Board: ﬁrst actions Amenities Board: ﬁrst actions Termination of contracts or agreements between speciﬁed amenities and contributing authorities Schedule 1 Speciﬁed amenities Schedule 2 Funding for ﬁrst ﬁnancial year Schedule 3 Contributing authorities and differential factors Schedule 4 Administrative provisions for Funding Board 23 24 25 26 27 27 27 28 29 29 29 31 32 33 34 (1) (2) Preamble Several arts, educational, rescue, and community organisa­ tions that are vital to the Auckland region contribute to the well­being of the whole region by providing facilities or ser­ vices to the community: The organisations are an essential part of the fabric of the Auckland region and are necessary to make the region a vi­ brant and attractive place to live in and visit: 5 3 cl 1 Auckland Regional Amenities Funding Bill (4) (3) A signiﬁcant proportion of those who visit or use, or otherwise beneﬁt from, the organisations come from all the
 territorial authority districts in the Auckland region: The organisations currently receive their funding from a range of sources by way of grants made in response to annual or 5 periodic applications.
In particular, they make separate appli­ cations to each of the territorial authorities and various trusts for funding.
The grants resulting from applications are often ad hoc and short term: This process does not provide a secure funding stream for the 10 organisations and it does not necessarily result in all the terri­ torial authorities in the Auckland region making a contribution to the organisations’ funding: (5) (6) A statutory framework is needed to provide adequate and se­ (7) (8) cure funding for the organisations by all the territorial author­ 15 ities in the Auckland region: The existing statutory frameworks for regional funding of the Auckland War Memorial Museum and the Museum of Trans­ port and Technology provide a model for the funding of the organisations: Territorial authorities funding the organisations should have a formal role, through the Electoral College, in the decisions on funding: 20 The Parliament of New Zealand therefore enacts as follows: Title This Act is the Auckland Regional Amenities Funding Act 2007.
25 Commencement This Act comes into force on the day after the date on which it receives the Royal assent.
30 1 2 4 3 (1) (2) 4 Auckland Regional Amenities Funding Bill Part 1 cl 4 Part 1 Preliminary provisions Purposes The ﬁrst purpose of this Act is to establish a mechanism to pro­ vide adequate, sustainable, and secure funding for speciﬁed 5 amenities that, by providing arts, education, rescue, or com­ munity facilities for or services to the Auckland region,— contribute to the well­being of the region; and (a) contribute towards making Auckland a vibrant and at­ (b) tractive place to live in and visit.
10 The second purpose is to ensure that all the territorial local au­ thorities in the Auckland region are part of the mechanism and so contribute towards the funding of the speciﬁed amenities.
15 Interpretation In this Act, unless the context otherwise requires,— adjusted revenue from rates means the revenue from rates of a contributing authority multiplied by the differential factor shown opposite the contributing authority’s name in Sched­ ule 3 advisory ofﬁcer means the advisory ofﬁcer appointed under 20 clause 12 of Schedule 4 Amenities Board means the Amenities Board established by section 10 assessment criteria means the assessment criteria in section 13(1) Auckland region means the region of the Auckland Regional Council contributing authority means a territorial authority listed in the ﬁrst column of Schedule 3 district means,— (a) for the Franklin District Council, that part of the district within the Auckland region; and for every other contributing authority, the district of the contributing authority (b) 30 25 5 Part 1 cl 4 Auckland Regional Amenities Funding Bill 5 Electoral College means the Electoral College of territorial local authority representatives established by section 13(1) of the Auckland War Memorial Museum Act 1996 establishment day means the day 28 days after this Act comes into force ﬁnancial year means the period starting on 1 July and ending with 30 June in the following year that is the ﬁnancial year of the Funding Board ﬁrst ﬁnancial year means the ﬁrst full ﬁnancial year after the commencement of this Act fourth ﬁnancial year means the ﬁnancial year after the third ﬁnancial year Funding Board means the Auckland Regional Amenities Funding Board established by section 5 funding principles means the funding principles in section 15 20 Local Government Commission means the Local Govern­ ment Commission appointed under the Local Government Act 2002 long term plan— (a) means a speciﬁed amenity’s long term plan described in 20 10 (b) section 21; and if the plan has been amended, means the plan as amended public notice means a notice published in 1 or more news­ 25 papers circulating in the Auckland region reorganisation scheme has the meaning given to it by section 5 of the
 Local Government Act 2002 revenue from rates means revenue from all rates set under the Local Government (Rating) Act 2002 except— (aa) 30 the part of the revenue from any general rate set under section 13 of that Act that is to be applied to the provi­ sion of water supply or wastewater services; and any targeted rate for the provision of water or wastew­ ater services set under section 16 of that Act; and any targeted rate for water supply set under section 19 of that Act; and 35 (ab) (a) 6 Auckland Regional Amenities Funding Bill Part 2 cl 6 (b) in the case of the Franklin District Council, any rate set in respect of land outside the Auckland region second ﬁnancial year means the ﬁnancial year after the ﬁrst ﬁnancial year speciﬁed amenity— (a) means an organisation listed in Schedule 1; and (b) includes an organisation that is the subject of a notice under section 17 that has come into force under sec­ tion 19(3); and does not include an organisation described in para­ 10 graph (a) or (b) that is the subject of a notice under section 18(6) that has come into force under section 19(3) (c) 5 third ﬁnancial year means the ﬁnancial year after the second ﬁnancial year.
15 Part 2 Funding mechanism Subpart 1—Administrative bodies 4A Funding Board and Amenities Board and purpose of Act In performing their functions and duties, and exercising their 20 powers, under this Act, the Funding Board and the Amenities Board must act in accordance with the purpose of the Act set out in section 3(1).

Funding Board 5 Establishment This Act establishes the Auckland Regional Amenities Fund­ ing Board.

25 Membership The Funding Board has 10 members.


The Electoral College appoints 5 6 members.

The Amenities Board appoints 5 4 members.

6 (1) (2) (3) (3A) One of the members appointed by the Electoral College must be a person who, in the opinion of the Electoral College, is 30 7 Part 2 cl 7 Auckland Regional Amenities Funding Bill (4) (5) 7 (1) (2) (3) appropriate to represent the interests of Māori in the Auckland region.
The members must be persons who have the management skills, experience, and professional judgment necessary to do the Funding Board’s functions, in the opinion of those 5 appointing them.
The following persons must not be appointed as members: (a) a person who is currently an elected or appointed mem­ ber of a contributing authority; or the chief executive of a contributing authority; or an employee of a contributing authority; or a current board member of a speciﬁed amenity; or a current ofﬁcer or employee of a speciﬁed amenity.

(b) (c) (d) (e) 10 Charitable purposes The Funding Board is established exclusively for charitable 15 purposes within New Zealand.
Every action that the Funding Board does under this Act is done exclusively for charitable purposes within New Zealand.

Every business that the Funding Board carries on under this Act is carried on exclusively for charitable purposes within 20 New Zealand.

(4) No business that the Funding Board carries on under this Act is carried on for the pecuniary gain of any person.
Powers For the purpose of performing its functions under this Act, the 25 Funding Board— has all the necessary rights, powers, and privileges; and (a) (b) may exercise all the necessary rights, powers, and priv­ ileges; and (c) may incur all necessary liabilities and obligations.

30 Administration The administrative provisions applying to the Funding Board are in Schedule 4.
8 9 8 Auckland Regional Amenities Funding Bill Part 2 cl 12 Amenities Board Amenities Board This Act establishes the Amenities Board.

10 Function The Amenities Board’s function is to make the appointments 5 to the Funding Board required by section 6(3).

The Amenities Board must make the appointments by majority vote.

If the votes are equal, the person presiding has a casting vote as well as a deliberative vote.
The person whom the members elect as chairperson must pre­ side at all meetings of the Amenities Board at which he or she is present.

If he or she is absent from a meeting, the members present must appoint one of their number to be the chairperson of the meeting.

The quorum of the Amenities Board is— (a) half of the members if the number of members is even; or (b) a majority of members if the number of members is odd.
The Amenities Board may do its function even if there is a 20 vacancy in its membership.

The Amenities Board must comply with subsections (2) to (6), but otherwise regulates its own proceedings.

15 10 11 (1) (2) (3) (4) (5) (6) (7) 12 Membership (1) Every speciﬁed amenity must appoint 1 representative to the 25 Amenities Board.

(2) An appointment as a speciﬁed amenity’s representative ends when the amenity or the representative ends the appointment.
(3) When an appointment as a speciﬁed amenity’s representative ends, the amenity must appoint another representative.
30 9 Part 2 cl 13 Auckland Regional Amenities Funding Bill Subpart 2—Speciﬁed amenities Assessment criteria 13 (1) Assessment criteria The assessment criteria that the Funding Board and the Elect­ oral College apply under sections 16 to 18 are as follows: (a) whether funding the organisation meets the purposes of this Act; and (c) (b) whether the organisation provides its facilities or ser­ vices to residents of and visitors to the Auckland region; and whether the facilities or services that the organisation provides to residents of and visitors to the Auckland region are facilities or services that are not otherwise generally available; and 5 10 (e) (d) whether the residents of the Auckland region visit or 15 use, or otherwise beneﬁt from, the organisation; and whether, according to independent market research, the residents of the Auckland region perceive the organisa­ tion as a regional one; and whether the organisation has proper governance and 20 management structures; and (f) (g) whether the organisation has structures for ensuring that any funding provided to it under this Act is used pre­ dominantly for the organisation’s facilities or services; and 25 (i) (h) whether the organisation has operated within a properly prepared budget, annual business plan, and long­term plan over the 5 years immediately before the date on which the Funding Board or the Electoral College ap­ plies this criterion; and whether the organisation has audited ﬁnancial accounts covering the 5 years immediately before the date on which the Funding Board or the Electoral College ap­ plies this criterion; and whether the organisation is a registered charitable entity 35 under the Charities Act 2005.
30 (j) The Funding Board must monitor the speciﬁed amenities’ compliance with the assessment criteria.

(2) 10 14 15 (1) (2) (3) Auckland Regional Amenities Funding Bill Part 2 cl 16 Discretion in application of assessment criteria The Funding Board and the Electoral College each has an ab­ solute discretion in deciding— (a) whether or not an organisation satisﬁes an assessment criterion; and the extent to which an organisation satisﬁes an assess­ ment criterion.
(b) 5 Procedure Organisation applies to be speciﬁed amenity The Electoral College may invite organisations to apply to be 10 a speciﬁed amenity.

The invitation must be given by public notice.

The public notice may require that applications be made only— (a) by a particular type of arts, educational, rescue, or com­ 15 munity organisation; or on terms that the Electoral College considers appropri­ ate.
(4) An application must— (b) (a) (b) be in the form that the Electoral College speciﬁes in the 20 notice; and contain, or be accompanied by, any information that the Electoral College speciﬁes in the notice.

16 (1) (2) (3) Funding Board assesses application The Funding Board must assess every application that the 25 Electoral College receives under section 15.

The Funding Board’s procedure for doing its assessments— (a) must be determined by it; and (b) may include hearing an applicant in person.
The Funding Board must give the Electoral College, in writing 30 or electronically,— (a) its assessment of whether an applicant satisﬁes— (i) the requirements in the public notice, if there were any; and the assessment criteria; and (ii) 35 11 Part 2 cl 17 Auckland Regional Amenities Funding Bill (b) (c) its recommendation on whether the applicant should or should not be a speciﬁed amenity; and its reasons for its assessment and recommendation.
Electoral College decides whether organisation to be speciﬁed amenity The Electoral College must— (a) receive the Funding Board’s assessment and recom­ mendation under section 16; and apply the assessment criteria; and decide whether an applicant is to be a speciﬁed amenity; 10 and if an applicant is to be a speciﬁed amenity, give a notice under as described in section 19.
(b) (c) (d) 5 15 Electoral College decides whether organisation to be suspended or cease to be speciﬁed amenity This section applies if the Funding Board considers that a spe­ ciﬁed amenity no longer satisﬁes 1 or more of the assessment criteria.

The Funding Board may give a notice to the speciﬁed amenity requiring it to satisfy the criterion or criteria within such rea­ 20 sonable period as the board Board speciﬁes.
The Funding Board must provide an opportunity for the amenity to be heard in relation to any notice before deciding that the amenity should be suspended or cease to be a speciﬁed amenity.
If the speciﬁed amenity does not satisfy the criterion or criteria within the period speciﬁed by the Funding Board, the Funding Board may give the Electoral College, in writing or electron­ ically,— (a) its recommendation on whether the applicant speciﬁed 30 amenity should be suspended from being or cease to be a speciﬁed amenity; and its reasons for its recommendation.
25 (b) The Electoral College must— (a) (b) receive the Funding Board’s recommendation; and apply the assessment criteria; and 35 17 18 (1) (2) (3) (4) (5) 12 (6) (7) 19 (1) (2) Auckland Regional Amenities Funding Bill Part 2 cl 19 (c) decide whether the speciﬁed amenity should be sus­ pended from being or cease to be a speciﬁed amenity.
If the Electoral College decides that a speciﬁed amenity listed in Schedule 1 should cease to be a speciﬁed amenity, the following provisions apply: (a) 5 the Electoral College must request the Minister of Local Government to recommend to the Governor­General the making of an Order in Council amending Sched­ ule 1 by removing the name of the amenity; and on receiving the request, the Minister may make the 10 recommendation; and on receiving the recommendation, the Governor­Gen­ eral may make the Order in Council; and on the making of the Order in Council, the Electoral College must give notice under as described in section 15 19 that the amenity is no longer a speciﬁed amenity.
(b) (c) (d) If the Electoral College decides that a speciﬁed amenity not listed in Schedule 1 should cease to be a speciﬁed amenity, it must give notice under as described in section 19 that the amenity is no longer a speciﬁed amenity.

Notices The Electoral College gives a notice under section 17 or 18 by publishing it in the Gazette.
The Electoral College must— (a) (b) notify the notice; and send a copy of the notice to each of the contributing authorities and the Amenities Board; and (c) make copies of the notice available for inspection by members of the public free of charge.

20 25 (3) A notice given under section 17 or 18 comes into force— 30 (a) (b) 28 days after the date of the notice’s publication in the Gazette; or a later date speciﬁed in the notice.
(4) A notice given under section 17 that an organisation is a spe­ ciﬁed amenity lasts until a notice is given under section 18 35 that the speciﬁed amenity is to cease to be no longer a speci­ ﬁed amenity.

13 Part 2 cl 20 Auckland Regional Amenities Funding Bill (5) A notice given under section 17 or 18 is a regulation for the purposes of the Interpretation Act 1999, the Acts and Regu­ lations Publication Act 1989, and the Regulations (Disallow­ ance) Act 1989.
Subpart 3—Funding process Funding principles Funding principles The funding principles to which the Funding Board and the Electoral College must have regard under sections 23 and 27 are as follows: (a) 5 10 the primary purpose of the funding is to contribute to the expenses that the speciﬁed amenity must incur to provide its facilities or services; and funding is not available for capital expenditure; and funding is not available for any part of facilities or ser­ 15 vices that the speciﬁed amenity provides outside the Auckland region; and funding is not available for facilities or services that at any time in the 5 years immediately before the date on which the Funding Board or the Electoral College 20 applies this paragraph have been provided funding by— a Crown entity, as deﬁned in section 7(1) of the (i) Crown Entities Act 2004; or a department speciﬁed in Schedule 1 of the State Sector Act 1988; and (ii) 25 funding for the retention and preservation of a speciﬁed amenity’s library or collection takes priority over the amenity’s other expenses; and funding is available only if the speciﬁed amenity has made all reasonable endeavours to maximise its funding 30 from other available funding sources; and total funding for all speciﬁed amenities assessed for a ﬁnancial year must not exceed the maximum total levy for that year under section 33; and any other funding principle that the Electoral College 35 publicly notiﬁes under subsection (3).
(b) (c) (d) (e) (f) (g) (h) 20 (1) 14 Auckland Regional Amenities Funding Bill Part 2 cl 22 (2) (3) The Funding Board may recommend to the Electoral College that it add funding principles to those in subsection (1).

The Electoral College— (a) may receive a recommendation from the Funding Board; and (b) with or without a recommendation, may add funding principles; and (c) must give public notice of the added funding principles.
Funding applications Speciﬁed amenity may prepare long­term plan 21 (1) A speciﬁed amenity may— (a) prepare a plan covering a period of at least 5 years and at most 10 years; and send the plan to the Funding Board.

(b) The Funding Board may consider and approve the plan.

The Funding Board’s approval of a plan is not a commitment by the Funding Board to provide funding for anything in the plan.
5 10 15 Speciﬁed amenity applies for funding This section applies if a speciﬁed amenity seeks funding from 20 the Funding Board for a ﬁnancial year.

The speciﬁed amenity must apply to the Funding Board on or before 30 November in the year before the ﬁnancial year for which funding is sought.
The application must include— (a) 25 a statement of the amount of funding that the speciﬁed amenity seeks from the Funding Board for the ﬁnancial year; and any information that the Funding Board requires to as­ sess the speciﬁed amenity’s satisfaction of the assess­ 30 ment criteria currently and in the future; and a statement of how the application complies with the funding principles; and the speciﬁed amenity’s annual plan for the ﬁnancial year for which funding is sought prepared under subsec­ 35 tions (4) and (5).
(b) (c) (d) 15 (2) (3) 22 (1) (2) (3) Part 2 cl 23 Auckland Regional Amenities Funding Bill The speciﬁed amenity’s annual plan must state the following matters: (a) (b) (c) the speciﬁed amenity’s purpose; and the speciﬁed amenity’s objectives; and the performance targets and other measures by which 5 to assess the speciﬁed amenity’s achievement of the ob­ jectives; and the nature and scope of the facilities or services to be provided by the speciﬁed amenity; and the indicative costs of the activities; and the sources of funds for the activities; and the details of any charges that the speciﬁed amenity pro­ poses to make for the facilities or services.
(d) (e) (f) (g) 10 The plan must state the matters— (a) in particular terms for the ﬁnancial year for which fund­ 15 ing is sought; and in general terms for each of the following 2 ﬁnancial years.

Funding Board assesses application The Funding Board must— (a) assess an application made by a speciﬁed amenity under section 22; and decide provisionally on the amount of funding to be provided to the speciﬁed amenity.
20 The Funding Board may request more information from the 25 speciﬁed amenity for the purpose of making its assessment and provisional decision.

The Funding Board need not include a speciﬁed amenity in the funding plan prepared under section 24 if the amenity does not give the Board the requested information by— (a) 30 November in the year before the ﬁnancial year for which funding is sought; or a later time that the Board speciﬁes.
(b) In making its assessment and provisional decision, the Fund­ ing Board must have regard to— the funding principles; and (a) the speciﬁed amenity’s long term plan, if it— (b) 30 35 (b) (b) (4) (5) 23 (1) (2) (3) (4) 16 Auckland Regional Amenities Funding Bill Part 2 cl 24 (i) (ii) includes the ﬁnancial year for which funding is sought; and has been approved under section 21.
Funding plans Funding Board prepares draft funding plan The Funding Board must prepare a draft funding plan for every ﬁnancial year.
The draft funding plan must state the following matters for the ﬁnancial year: (a) 5 the nature of the facilities or services to be provided by 10 each speciﬁed amenity; and the funding sought by each speciﬁed amenity; and the amount of funding that the Funding Board proposes to grant to each speciﬁed amenity; and any conditions that the Funding Board proposes to im­ 15 pose on the provision of funding to a particular speciﬁed amenity; and the maximum amount of remuneration payable by the Funding Board to its members; and the maximum amount of remuneration payable by the 20 Funding Board to its advisory ofﬁcer; and the maximum amount of the Board’s reasonable admin­ istrative costs; and the total levy that the Funding Board proposes, which may not exceed the maximum total levy calculated 25 under section 33; and any other information that is necessary to enable an in­ formed assessment of the total levy that the Funding Board proposes.
(b) (c) (d) (e) (f) (g) (h) (i) 24 (1) (2) (3) The draft funding plan must state the matters— (a) in particular terms for the ﬁnancial year to which the plan relates; and in general terms for each of the following 2 ﬁnancial years.
(b) 30 (4) The Funding Board must include in the draft funding plan an 35 explanation of any signiﬁcant changes between the total levy 17 Part 2 cl 25 Auckland Regional Amenities Funding Bill it proposes and the levy speciﬁed in the plan adopted for the immediately preceding ﬁnancial year.
25 (1) Funding Board and Electoral College confer over draft funding plan The chairpersons of the Funding Board and the Electoral Col­ 5 lege must decide jointly— (a) whether a meeting of the Electoral College is to be held to consider— (i) the matter of the total levy that the Board pro­ poses in its draft funding plan; or any other matter in the plan; and (ii) if a meeting is to be held, whether it is to be held jointly with the Board or separately from it.
(b) 10 (2) Every meeting of the Electoral College to consider a matter must be held before the draft funding plan is published under 15 section 26(1)(a).

Funding Board consults on draft funding plan 26 (1) When the Funding Board is satisﬁed with its draft funding plan, it must, as soon as is practicable,— (a) (b) publicly notify it; and send it to the Electoral College, the speciﬁed amenities, and the contributing authorities.
20 The Electoral College, a speciﬁed amenity, or any other person may make a written or electronic submission to the Funding Board on any matter in the draft funding plan within 1 month 25 after the day on which the plan is publicly notiﬁed.
(2) (3) A contributing authority— (a) may make a written or electronic submission to the Funding Board on any matter in the draft funding plan within 1 month after the day on which the draft plan is 30 publicly notiﬁed; and (b) must send a copy of the submission to the Electoral Col­ lege.

The Funding Board must give a reasonable opportunity to every person who makes a submission to appear and be heard 35 on the submission.
(4) 18 Auckland Regional Amenities Funding Bill Part 2 cl 28 (6) consider the submissions; and (5) Meetings of the Funding Board, or a committee of the Funding Board, to hear submissions on the draft funding plan must be open to the public.
The Funding Board must— (a) (b) make any modiﬁcations to the draft funding plan that the Board considers appropriate in light of the submis­ sions; and refer the plan to the Electoral College; and request the Electoral College’s approval of the Board’s 10 recommendation on the total levy.
(c) (d) 5 27 28 (1) (2) (3) (4) (5) Electoral College considers funding plan The Electoral College must— (a) consider the Funding Board’s recommendation on the total levy; and decide whether or not to approve the recommended total levy, having regard to the funding principles; and advise the Funding Board of its decision.

15 (b) (c) If Electoral College does not approve levy This section applies if the Electoral College decides not to ap­ 20 prove the recommended total levy under section 27(b).
The dispute must be referred to an independent arbitrator.

The arbitrator must be appointed by— (a) (b) the Electoral College and the Funding Board jointly; or if they are unable to agree on the appointment, the Local 25 Government Commission appointed under the Local Government Act 2002.
The arbitrator must— (a) take into account the submissions of the Funding Board and the Electoral College; and take into account the Funding Board’s duties; and decide on the total levy, which may not exceed the maxi­ mum total levy calculated under section 33.

30 (b) (c) The total levy that the arbitrator decides on is the total levy to be used by the Funding Board for the purpose of ﬁxing the 35 individual levies under section 34.
19 Part 2 cl 29 Auckland Regional Amenities Funding Bill (6) The Funding Board must reconsider its draft funding plan and the amount of funding it provisionally decided to provide to each speciﬁed amenity to take account of the total levy that the arbitrator decides on.

(2) 29 (1) Funding Board adopts funding plan The Funding Board must have a meeting to deliberate on and adopt its funding plan.
The meeting— (a) must be open to the public; and (b) must be held no later than 30 April immediately before 10 the start of the ﬁnancial year to which the plan relates.

(3) Within 20 working days of adopting the funding plan, the 5 Funding Board must— (a) make a copy available for public inspection; and (b) give public notice that a copy is available for public 15 inspection; and send a copy to each contributing authority and each spe­ ciﬁed amenity.
(c) First ﬁnancial year 30 (1) Individual payments for ﬁrst ﬁnancial year The Funding Board must pay each speciﬁed amenity the amount shown opposite the amenity’s name in Schedule 2 for the ﬁrst ﬁnancial year.

20 (2) However, the Funding Board must not pay the amount to Auckland Zoo unless section 42 applies before 1 July in the 25 ﬁrst ﬁnancial year.

The Funding Board must be paid $300,000 for its administra­ tive costs for the ﬁrst ﬁnancial year.
Sections 21 to 29 do not apply in respect of the ﬁrst ﬁnancial year.

30 Individual levies for ﬁrst ﬁnancial year The Funding Board must calculate the individual levy of each contributing authority for the ﬁrst ﬁnancial year using the for­ mula— (3) (4) 31 (1) 20 Auckland Regional Amenities Funding Bill Part 2 cl 33 adjusted revenue × total amount total adjusted revenue (2) The items in the formula are deﬁned in subsections (3) to (5).
(4) (3) Adjusted revenue means the adjusted revenue from rates of the contributing authority in the previous ﬁnancial year.

Total adjusted revenue means the total adjusted revenue from 5 rates of all contributing authorities in the previous ﬁnancial year.

Total amount means the total amount to be paid under sec­ tion 30(1) to (3).

(5) 32 (1) (2) Contributing authorities pay levies for ﬁrst ﬁnancial year This section applies to the individual levy of each contributing authority for the ﬁrst ﬁnancial year.
The contributing authority must pay the amount of the levy— (a) (b) (c) out of its general revenues; and to the Funding Board; and on the next 1 July after the commencement of this Act.
10 15 Funding levies 33 Maximum individual and total levies for ﬁnancial years (1) after ﬁrst ﬁnancial year The Funding Board must calculate the maximum individual 20 levy of each contributing authority for each ﬁnancial year after the ﬁrst ﬁnancial year using the formula— adjusted revenue total adjusted revenue × maximum total levy of contributing authorities (2) The items in the formula are deﬁned in subsections (3) to (5).
(3) Adjusted revenue means the adjusted revenue from rates of 25 (4) the contributing authority in the previous ﬁnancial year.

Total adjusted revenue means the total adjusted revenue from rates of all contributing authorities in the previous ﬁnancial year.
21 Part 2 cl 34 Auckland Regional Amenities Funding Bill (5) Maximum total levy of contributing authorities is,— (a) (b) (c) for the second ﬁnancial year,— (i) (ii) if section 42 applies as at the speciﬁed date, $16 million; or if section 42 does not apply as at the speciﬁed 5 date, $12 million; and for the third ﬁnancial year,— (i) if section 42 applies as at the speciﬁed date, $19 million; or if section 42 does not apply as at the speciﬁed 10 date, $15 million; and (ii) for the fourth ﬁnancial year and each following ﬁnan­ cial year, the amount equal to 2% of the total adjusted revenue from rates of all the contributing authorities in the previous ﬁnancial year.
15 In subsection (5), speciﬁed date means 30 November in the year immediately before the ﬁnancial year for which the maxi­ mum total levy is being calculated.

For each ﬁnancial year after the ﬁrst ﬁnancial year, the indi­ vidual levy of each contributing authority must bear the same 20 proportion to the total of the individual levies of all the con­ tributing authorities as the maximum individual levy of that contributing authority bears to the maximum total levy of the contributing authorities.
Funding Board resolves to ﬁx individual levies This section applies when the Funding Board has the following for a ﬁnancial year after the ﬁrst ﬁnancial year: (a) the Electoral College’s approval of the total levy; or the arbitrator’s decision on the total levy; and either— (i) (ii) an adopted funding plan.

(b) The Funding Board must— (a) ﬁx the amounts of the individual levies of each con­ tributing authority by way of resolution; and send a copy of the resolution to each contributing au­ thority.
(b) 25 30 35 (6) (7) 34 (1) (2) 22 (3) 35 (1) (2) 36 (1) (2) 5 10 15 Auckland Regional Amenities Funding Bill Part 2 cl 36 The Funding Board must comply with subsection (2) on or before 30 April before the ﬁnancial year for which the levy is imposed.

Contributing authorities pay levies for ﬁnancial years after ﬁrst ﬁnancial year This section applies to the individual levy of each contributing authority ﬁxed in the resolution of the Funding Board under section 34(2).
The contributing authority must pay the amount of the levy— (a) (b) (c) out of its general revenues; and to the Funding Board; and on the next 1 July after the resolution.
If contributing authority’s district altered changes This section applies if a contributing authority’s district is al­ tered because any of the following events occurs: (a) the total or partial absorption of the district by another local authority, whether or not the local authority is a contributing authority; or the contributing authority absorbing all or part of an­ other local authority’s district, whether or not the local 20 authority is a contributing authority; or the amalgamation of a contributing authority with an­ other local authority, whether or not the local authority is a contributing authority; or the division of a contributing authority into 2 or more 25 local authorities.
(b) (c) (d) If any of the events occurs a contributing authority’s district changes because an Order in Council gives effect to a reorgan­ isation scheme,— (a) the area that was previously subject to a levy under this 30 Act continues to be subject to a levy; and the previously applicable differential factor continues to apply for the purpose of calculating the adjusted rev­ enue from rates in respect of the land in that area.
(b) (3) However, subsection (2) does not apply if any of subsec­ 35 tions (4) to (8) applies.
23 Part 2 cl 37 Auckland Regional Amenities Funding Bill (4) The If a result of the Order in Council is that a contributing authority absorbs an area from another contributing authority, the Funding Board— (a) must apply the differential factor applicable to the ab­ sorbing contributing authority to an area absorbed from 5 another contributing authority the area absorbed; and (b) must do so for the year after the absorption and all later years.
The Funding Board must not take any account of the fact that the occurrence of an event may result in part only of the district 10 of a local authority being levied.

If a result of the Order in Council is that part only of the district of a local authority is levied, the Funding Board must not take any account of that result.

The Funding Board is not authorised by subsection (4) or 15 (5A) to impose a levy on an area that is outside the contributing authorities’ districts when this Act comes into force.
Subsection (8) applies when the Local Government Com­ mission is exercising its jurisdiction over the constitution, al­ teration, union, or abolition of a territorial authority’s district.
20 The Local Government Commission may— (a) review the effect of subsections (4) and (5) (5A) on the matter before it territorial authorities involved; and if the Commission considers it appropriate, make a de­ cision that— (i) has an effect different from the effect that the subsections have; and applies for the period that the Commission con­ siders appropriate.
(ii) (b) Funding payments Funding Board pays funding This section applies to the funding payable to a speciﬁed amenity under the Funding Board’s approved funding plan for a ﬁnancial year.
The Funding Board must— (a) pay the funding to the speciﬁed amenity; and 25 30 35 (5) (5A) (6) (7) (8) 37 (1) (2) 24 38 (1) (2) Auckland Regional Amenities Funding Bill Part 2 cl 38 (b) (c) do so as soon as is practicable after 12 July and no later than 15 August in the year; and tell the speciﬁed amenity, in writing or electronically, about any conditions in the approved funding plan on the provision of funding.
5 Subpart 4—Reporting Speciﬁed amenity does annual report This section applies to a speciﬁed amenity that has received or is receiving funding under this Act for a ﬁnancial year.
The speciﬁed amenity must prepare a report that— (a) assesses the amenity’s application of the funding against the matters speciﬁed in the amenity’s annual plan for the year under section 22(4); and contains ﬁnancial statements for the year consisting of— (i) (b) 10 15 (ii) (iii) (iv) (v) a statement of ﬁnancial position prepared in ac­ cordance with the New Zealand International Fi­ nancial Reporting Standards; and an overall operating statement; and a statement of cash ﬂows; and any other statements necessary to fairly reﬂect the amenity’s ﬁnancial position, the resources available to it, and the ﬁnancial results of its op­ erations; and any other information reasonably necessary to 25 enable the Funding Board to make an informed assessment of the amenity’s operations for the ﬁ­ nancial year as set out in its annual plan.
20 (3) Where If a speciﬁed amenity has the same ﬁnancial year as the Funding Board, the ﬁnancial statements provided under 30 subsection (2)(b) must be audited and the annual report must contain the auditor’s report.

(4) Where If a speciﬁed amenity has a different ﬁnancial year to from that of the Funding Board, the ﬁnancial statements pro­ vided under subsection (2)(b) need not be audited but sub­ 35 section (5) applies.
(5) Where When subsection (4) applies, the speciﬁed amenity— 25 Part 2 cl 39 Auckland Regional Amenities Funding Bill (6) 39 (1) (a) must prepare audited ﬁnancial statements for the ﬁnan­ (b) cial year for the speciﬁed amenity; and provide those audited ﬁnancial statements and auditor’s report to the Funding Board within three months after the end of the speciﬁed amenity’s ﬁnancial year.
The speciﬁed amenity must prepare the report and send it to the Funding Board within 3 months after the end of the ﬁnancial year to which it relates.
5 Funding Board does annual report The Funding Board must, at the end of every ﬁnancial year, 10 prepare a report that— (a) (b) assesses the Funding Board’s performance; and assesses the performance of each of the speciﬁed amen­ ities, taking into account their annual reports under sec­ tion 38; and contains audited ﬁnancial statements for the year con­ sisting of— (i) 15 (ii) (iii) (iv) a statement of ﬁnancial position of the Funding Board; and an overall operating statement of the Funding 20 Board; and a statement of cash ﬂows of the Funding Board; and any other statements necessary to fairly reﬂect the Board’s ﬁnancial position, available to it, the ﬁnancial results of its oper­ ations, and the ﬁnancial results of the speciﬁed amenities’ operations; and the resources 25 contains the auditor’s report on the ﬁnancial statements; and contains any other information necessary to enable an informed assessment of the operations of the Funding Board and the speciﬁed amenities for the ﬁnancial year as set out in the Board’s funding plan adopted for the ﬁnancial year.
30 35 (c) (d) (e) (2) The Funding Board must adopt the report within 5 months after the end of the ﬁnancial year to which it relates.

26 Auckland Regional Amenities Funding Bill Part 2 cl 42 (3) Within 20 working days of adopting the report, the Funding Board must— (a) make a copy available for public inspection; and (b) give public notice that a copy is available for public inspection; and send a copy to each contributing authority and the Amenities Board.
(c) 5 40 41 (1) (2) (3) 42 (1) (2) Contributing authority’s annual report Every contributing authority must include information about its dealings with, and payments to, the Funding Board in its 10 annual report under section 98 of the Local Government Act 2002.

Subpart 5—Miscellaneous provisions Speciﬁed amenities may seek other funding This section applies to a speciﬁed amenity that has received or 15 is receiving funding under this Act.
The speciﬁed amenity may receive public funding from any other funding agencies or sources, including— a central government agency; and (a) a department speciﬁed in Schedule 1 of the State Sector 20 (b) Act 1988.

The speciﬁed amenity may not receive funding from a con­ tributing authority for expenses that have been or are being funded under this Act.

Auckland Zoo In this section, Auckland Zoo means the Auckland City Coun­ cil undertaking known as the Auckland Zoo or the Auckland Zoological Park.
This section applies if the Auckland Zoo— is established as a legal entity that— (a) (i) carries out the functions of the Auckland Zoo; and (ii) is separate from the Auckland City Council; and is registered as a charitable entity under the Charities Act 2005.
(b) 25 30 35 27 Part 2 cl 43 Auckland Regional Amenities Funding Bill (3) On and from the date of the establishment and registration, the Auckland Zoo On the date on which the Auckland Zoo is both established and registered, the zoo— (a) (b) is treated as if it were listed in Schedule 1; and is subject to this Act.
Subpart 6—Transitional provisions Funding Board: ﬁrst appointments 43 (1) As soon as is practicable after this Act comes into force,— (a) (b) the Electoral College must meet and appoint members of the Funding Board under section 6(2); and the Amenities Board must meet and appoint members of the Funding Board under section 6(3).
5 10 The following provisions apply to the ﬁrst members appointed to the Funding Board: (a) of the 5 6 members appointed under section 6(2), 3 4 15 hold ofﬁce for a term of 2 years and 2 for a term of 3 years; and of the 5 4 members appointed under section 6(3), 2 hold ofﬁce for a term of 2 years and 3 2 for a term of 3 years; and whether a member holds ofﬁce for a term of 2 years or 3 years must be determined by lot, unless the members agree on a different method.
20 (b) (c) The term of ofﬁce of a Funding Board member to whom sub­ section (2) applies ends on the 30 May— (a) in the second year after the member is appointed if the member’s term is 2 years; and in the third year after the member is appointed if the member’s term is 3 years.

(b) 25 If the Funding Board does not have at least 6 members by the 30 establishment day, the Board must not do any function or duty, or exercise any power, under this Act.
Clause 4(6) of Schedule 4 applies to— (a) the ﬁrst Funding Board appointed after the establish­ ment day with 10 members; and every later board Board.

(b) 35 (2) (3) (4) (5) 28 Auckland Regional Amenities Funding Bill Part 2 cl 46 44 (1) (2) Funding Board: ﬁrst actions The chairperson of the Electoral College must call the ﬁrst meeting of the Funding Board as soon as is practicable after the establishment day.
The chairperson of the Electoral College must chair the ﬁrst 5 meeting until the Funding Board’s members elect a chairper­ son.

(3) At its ﬁrst meeting, the Funding Board must— (a) elect 1 of the 5 6 members appointed by the Electoral College under section 6(2) as chairperson; and elect any member as deputy chairperson.

(b) The Funding Board must, as soon as is practicable, adopt ap­ propriate procedural rules to govern its operations and the con­ duct of its meetings.
Section 24(4) does not apply to the ﬁrst draft funding plan 15 that the Funding Board prepares.

10 Amenities Board: ﬁrst actions The ﬁrst appointments to the Amenities Board must be made before the establishment day.

The ﬁrst meeting of the Amenities Board must be held as soon 20 as is practicable after this Act comes into force to appoint members of the Funding Board under section 6(3).

The ﬁrst meeting may be called by any of the Amenities Board’s members.
(4) (5) 45 (1) (2) (3) (4) At its ﬁrst meeting, the Amenities Board must elect one of its 25 members as chairperson.
46 (1) Termination of contracts or agreements between speciﬁed amenities and contributing authorities This section applies to a contract or agreement that— (a) is made between a speciﬁed amenity and a contributing 30 authority; and is made for the purpose of funding the speciﬁed amenity; and is in force on 1 July of the ﬁrst ﬁnancial year after this Act comes into force in which funding is to be received 35 by the speciﬁed amenity under this Act.
(b) (c) 29 Part 2 cl 46 Auckland Regional Amenities Funding Bill (2) The contract or agreement is terminated on the 1 July de­ scribed in subsection (1)(c).
30 Auckland Regional Amenities Funding Bill Schedule 1 Schedule 1 Speciﬁed amenities s 4 Auckland Observatory and Planetarium Trust Board Auckland Philharmonia Auckland Regional Rescue Helicopter Trust Auckland Theatre Company Limited Coast Guard Northern Region Incorporated New Zealand National Maritime Museum Trust Board New Zealand Opera Limited Surf Life Saving Northern Region Incorporated The Auckland Festival Trust Watersafe Auckland Incorporated 5 10 31 Schedule 2 Auckland Regional Amenities Funding Bill Schedule 2 Funding for ﬁrst ﬁnancial year s 21 30 Speciﬁed amenity Amount of funding Auckland Observatory and Planetarium Trust Board Auckland Philharmonia Auckland Regional Rescue Helicopter Trust Auckland Theatre Company Limited Auckland Zoo $500,000 $1,500,000 $1,500,000 $800,000 $4,000,000 Coastguard Northern Region Incorporated $500,000 New Zealand National Maritime Museum Trust Board New Zealand Opera Limited $1,000,000 $500,000 Surf Life Saving Northern Region Incorporated The Auckland Festival Trust Watersafe Auckland Incorporated $700,000 $1,200,000 $500,000 32 Auckland Regional Amenities Funding Bill Schedule 3 Schedule 3 Contributing authorities and differential factors s 4 Territorial authority Auckland City Council Franklin District Council Manukau City Council North Shore City Council Papakura District Council Rodney District Council Waitakere City Council Differential factor 1.0 0.6 1.0 1.0 1.0 0.6 1.0 33 Schedule 4 Auckland Regional Amenities Funding Bill Schedule 4 Administrative provisions for Funding Board s 9 Nature The Funding Board has perpetual succession.
The Funding Board is not a council­controlled organisation for the purposes of the Local Government Act 2002.

5 Independence In doing the functions and duties, and exercising the powers, 10 of the Funding Board, the members must act independently of— (a) (b) (c) In doing the functions and duties, and exercising the powers, of the Funding Board, the member referred to in section 6(3A) must represent the interests of Māori in the Auckland region.
the body that appointed them; and the contributing authorities; and the speciﬁed amenities.

15 No personal liability Funding Board members are not personally liable for acts done 20 or defaults made— (a) (b) (c) in good faith; and in the course of the Funding Board’s operations; and by— (i) (ii) the Funding Board, or a Funding Board member.

Terms of ofﬁce Every Funding Board member is appointed for a term of 3 years starting on the day after the date on which the previous term ends.
Subclause (1) does not apply to members appointed under section 43 or clause 6(3).

Every member is eligible for reappointment.

Subclause (5) applies to a member to whom the following apply: 25 30 35 1 (1) (2) 2 (1) (2) 3 4 (1) (2) (3) (4) 34 Auckland Regional Amenities Funding Bill Schedule 4 his or her term of ofﬁce ends; and (a) he or she has not resigned his or her ofﬁce; and (b) (c) he or she is not in a situation described in clause 6(1).
The member continues to hold ofﬁce by virtue of his or her appointment until— (a) (b) The Funding Board’s functions, duties, and powers are not affected by a vacancy in its membership.

he or she is reappointed; or his or her successor is appointed.

5 (5) (6) Resignations 5 (1) A Funding Board member may resign his or her ofﬁce by giv­ ing a notice in writing or electronically to the advisory ofﬁcer.
(2) A member who resigns his or her ofﬁce on terms that permit him or her to continue in ofﬁce may do so by virtue of his or her appointment until his or her successor is appointed.
10 15 6 (1) Extraordinary vacancies This clause applies if any Funding Board member is in one of the following situations: (a) (b) the member dies; or the member resigns his or her ofﬁce on terms that do not 20 permit his or her continuing to hold ofﬁce; or the member is absent without leave from 2 consecutive Funding Board meetings; or the member becomes an elected or appointed member of a contributing authority; or the member becomes the chief executive of a contribut­ ing authority; or the member becomes an employee of a contributing au­ thority; or the member becomes a board member of a speciﬁed 30 amenity; or the member becomes an employee of a speciﬁed amenity; or the member is declared bankrupt; or the member becomes the subject of an order under sec­ 35 tion 383 of the Companies Act 1993; or 25 (c) (d) (e) (f) (g) (h) (i) (j) 35 Schedule 4 Auckland Regional Amenities Funding Bill (k) (l) (m) (n) the member becomes subject to a compulsory treatment order made under Part 2 of the Mental Health (Compul­ sory Assessment and Treatment) Act 1992; or the member becomes a special patient as deﬁned in sec­ tion 2(1) of the Mental Health (Compulsory Assessment 5 and Treatment) Act 1992; or the member becomes the subject of an order under the Protection of Personal and Property Rights Act 1988; or the member is convicted of an offence punishable by a term of imprisonment of 2 years or more.
10 (2) If a member is in one of these situations,— (a) (b) his or her term of ofﬁce ends; and the vacancy is an extraordinary vacancy.

(3) An extraordinary vacancy must be ﬁlled in the same way as the appointment to the vacant ofﬁce was originally made.

The 15 member appointed holds ofﬁce only for the rest of the vacating member’s term.
If an extraordinary vacancy occurs within 6 months before the date ﬁxed for the next appointment to the ofﬁce that has been vacated, the appointing body may decide not to ﬁll the va­ 20 cancy.

Chairperson and deputy chairperson The Funding Board must annually— (a) elect 1 of the 5 6 members appointed by the Electoral College under section 6(2) as chairperson; and elect any member as deputy chairperson.

(b) The chairperson and deputy chairperson may stand for re­elec­ tion.
The chairperson of the Funding Board— (a) must preside at all meetings of the Funding Board at 30 25 (b) which he or she is present; and has the functions, duties, and powers that the Board delegates to him or her from time to time.

The deputy chairperson must act in place of the chairperson in any case where the chairperson— (a) (b) is absent; or is unable to act for any other reason.
35 (4) 7 (1) (2) (3) (4) 36 Auckland Regional Amenities Funding Bill Schedule 4 8 (1) Meetings If the chairperson and the deputy chairperson are absent from a meeting, the members present must appoint one of their num­ ber to be the chairperson of the meeting.

(2) A quorum for a meeting of the Funding Board is a majority of 5 (3) (4) its members.

The Funding Board must decide every question before it in open voting by a majority of the votes recorded on it.
The person presiding at a meeting of the Funding Board has a deliberative vote and, if the votes are equal, also has a casting 10 vote.

(5) Meetings of the Funding Board must be conducted in public (6) 9 10 (1) (2) (3) (4) unless good grounds exist for excluding the public.

Part 7 of the Local Government Ofﬁcial Information and Meet­ ings Act 1987 applies to the Funding Board as if it were a local 15 authority subject to that Part.
Procedural rules The Funding Board may regulate its own proceedings on mat­ ters not speciﬁcally dealt with in this Act.

Remuneration The Funding Board Electoral College must decide how much to pay its members each member of the Funding Board after considering a recommendation from the Funding Board.
The Funding Board Electoral College must decide to pay an amount that is appropriate having regard to— (a) (b) the public purpose of its the Board’s functions; and the extent of public funding of its the Board’s oper­ ations.

20 25 The Funding Board must not pay a member in a ﬁnancial year an amount Electoral College must not determine a rate of pay 30 for a Funding Board member in a ﬁnancial year greater than that speciﬁed for the payment of a member in the funding plan adopted for the year.
The Funding Board must recommend to the Electoral College how much a member of the Board should be paid in a ﬁnancial 35 year having regard to the matters in subsections (2) and (3).

37 Schedule 4 Auckland Regional Amenities Funding Bill (5) 11 The Funding Board must pay its members the amount deter­ mined by the Electoral College.
Dealings with other bodies The Funding Board may liaise, consult, and, if it considers necessary, enter into agreements with any body that— provides funding to a speciﬁed amenity; or (a) is a potential source of funding for a speciﬁed amenity.

(b) 12 (1) Advisory ofﬁcer The Funding Board may appoint an advisory ofﬁcer to assist it in doing its functions.
(3) (2) However, if the Electoral College requires it, the advisory of­ ﬁcer must be a person seconded for service from one of the contributing authorities.
The advisory ofﬁcer is responsible to the Funding Board for— (a) (b) implementing the Board’s decisions; and ensuring that the Board’s operations are conducted in a transparent and accountable manner; and providing services and advice to Board members; and ensuring the effective, efﬁcient, and economic manage­ ment of the Board’s operations and planning; and doing any other functions that the Board delegates to him or her.

(c) (d) (e) 5 10 15 20 Auditor The Auditor­General is the Funding Board’s auditor.
For the purpose of auditing the Funding Board, the Auditor­ 25 General— (a) has and may do all the Auditor­General’s functions and duties under the Public Audit Act 2001; and has and may exercise all the Auditor­General’s powers under the Public Audit Act 2001.
(b) 30 13 (1) (2) 38 Auckland Regional Amenities Funding Bill Legislative history Introduction (Bill 151–1) First reading and referral to Local Government and Environment Committee 4 September 2007 19 September 2007 12 Published under the authority of the House of Representatives—2008 Wellington, New Zealand: 39