Local Government Act 2002 Amendment Act 2012

1: Title
This Act is the Local Government Act 2002 Amendment Act 2012.
2: Commencement
1: Section 21
2: The rest of this Act comes into force on the day after the date on which it receives the Royal assent.
3: Principal Act
This Act amends the Local Government Act 2002 principal Act 2012-12-05 Local Government Act 2002 2013-10-12 Local Government Act 2002 section 21
1: Amendments to Local Government Act 2002
4: Section 3 amended (Purpose)
Replace section 3(d)
d: provides for local authorities to play a broad role in meeting the current and future needs of their communities for good-quality local infrastructure, local public services, and performance of regulatory functions.
5: Section 5 amended (Interpretation)
1: In section 5(1) Commission Commission
a: other than in Part 10
b: in Part 10 section 256 .
2: In section 5(1), definition of community facilities 197 197(2)
3: In section 5(1), definition of community infrastructure 197 197(2)
4: In section 5(1), replace the definition of community outcomes community outcomes .
5: In section 5(1), definition of development contribution 197 197(2)
6: In section 5(1), definition of development contribution policy 197 197(2)
7: In section 5(1), definition of network infrastructure 197 197(2)
8: In section 5(1), definition of significance
a: the district or region: .
9: 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:
b: in relation to a territorial authority, means a territorial authority whose district contains an affected area affected area clause 2 of Schedule 3 good-quality section 10(2) remuneration and employment policy clause 36A of Schedule 7 .
10: In section 5(1), repeal the definitions of reorganisation proposal reorganisation scheme
6: Section 8 amended (Act binds the Crown)
In section 8(2)(c) and Schedule 15 (which relate (which relates
7: Section 10 amended (Purpose of local government)
1: Replace section 10(b)
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.
2: In section 10
2: In this Act, good-quality
a: efficient; and
b: effective; and
c: appropriate to present and anticipated future circumstances.
8: Section 14 amended (Principles relating to local authorities)
1: Replace section 14(1)(c)(iii)
iii: the likely impact of any decision on the interests referred to in subparagraphs (i) and (ii): .
2: In section 14(1)(h)(i) well-being interests
3: In section 14(2) , or any aspects of well-being referred to in section 10, are in
9: Section 16 amended (Significant new activities proposed by regional council)
In section 16(8)(d) proposal application under Schedule 3
10: Section 23 amended (Description of local government)
After section 23(3)
3A: However, a territorial authority created as a unitary authority after 1 July 2013 must be described as [ name of city or district
11: New section 24AA inserted (Purpose of local government reorganisation)
In Part 3
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 government arrangements for their area; and
b: requiring the Commission, in consultation with communities, to identify, develop, and implement in a timely manner the option that best promotes good local government.
12: Section 24 replaced (Reorganisation proposals)
Replace section 24
24: Scope of local government reorganisation
1: Local government reorganisation may provide for 1 or more of the following matters:
a: the union of districts or regions:
b: the constitution of a new district or region, including the constitution of a new local authority for that district or region:
c: the abolition of a district or region, including the dissolution or abolition of the local authority for that district or region:
d: the alteration of the boundaries of any district or region:
e: the transfer of a statutory obligation from one local authority to another:
f: the assumption by a territorial authority of the powers of a regional council.
2: Schedule 3
13: New section 24A inserted (Transitional modification or suspension of certain statutory requirements after issue of final proposal for reorganisation)
After section 24
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 proposal relating to local government reorganisation is given under clause 22 of Schedule 3
2: This section applies to a final reorganisation proposal only if the proposal provides for any of the matters specified in section 24(1)(a), (b), (c), or (f)
3: The Governor-General may, by Order in Council, in relation to an affected local authority,—
a: extend, for a period not exceeding 12 months, the time by which the local authority would otherwise have to complete, within the specified period, any action relating to the preparation or adoption of any plan, policy, or strategy required by or under any enactment:
b: 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)
c: 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.
4: However, the power under subsection (3)(c) may be exercised 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.
5: An Order in Council may be made only—
a: during the specified period; and
b: on the recommendation of the Minister; and
c: if the Minister is satisfied that the Order in Council is—
i: necessary to avoid public confusion or waste of public resources; or
ii: in the interests of the district of the affected local authority; and
d: with the agreement of—
i: the affected local authority; and
ii: the Commission.
6: In this section,— specified period
a: beginning on the date on which public notice is given of the final proposal under clause 22 of Schedule 3
b: ending on the close of the date that is 9 months after the day on which public notice is given under clause 22 of Schedule 3
14: Section 25 replaced (Order in Council to give effect to reorganisation schemes)
Replace section 25
25: Order in Council to give effect to final proposals and reorganisation schemes
1: A final proposal—
a: is given effect to by Order in Council; and
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 bodies in accordance with—
i: clauses 33 to 40 of Schedule 3
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 authority 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)
4: A reorganisation scheme—
a: is given effect to by Order in Council; and
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 reorganisation scheme is not invalid because it is inconsistent with the provisions of the final proposal or scheme if the inconsistency relates—
a: to corrections of clerical, grammatical, or typographical errors; or
b: to matters of a format or referential nature that do not alter the substance or effect of the final proposal or scheme.
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)
b: the matter may be included in the Order in Council if considered appropriate by the Governor-General in Council.
7: Clauses 45 and 46 of Schedule 3
a: amended in their application by the reorganisation scheme; or
b: declared not to apply.
8: Clauses 47 to 54 of Schedule 3
9: In this section,— final proposal clause 33 of Schedule 3 reorganisation scheme clause 41(2) of Schedule 3
15: New section 26A inserted (Duties of local authorities in relation to local government reorganisation)
After section 26
26A: Duties of local authorities in relation to local government reorganisation
1: It is the duty of every local authority to co-operate with, give reasonable assistance to, and provide information to the Commission to enable it to perform its functions and exercise its powers in relation to local government reorganisation.
2: Without limiting subsection (1)
3: An affected local authority must not make a decision described in subsection (4) section 25
4: Subsection (3)
a: significantly prejudice the implementation of the final proposal; or
b: 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 authority, following the implementation of the final proposal; or
c: have a significant negative impact on the assets or liabilities that may be transferred to any local authority in the implementation of the final proposal.
16: Section 27 amended (Application to be called city council or district council)
In section 27(1) proposal application under Schedule 3
17: New sections 27A and 27B inserted
After section 27
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
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 Gazette
18: Section 31 amended (Report to Minister on matters relating to local government)
After section 31(1)
1A: The Commission may consider, report on, and make recommendations 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
19: New section 31A inserted (Minister's expectations of Commission in relation to local government reorganisation)
After section 31
31A: Minister's expectations of Commission in relation to local government reorganisation
1: The Minister may, by notice in 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)
a: the time frames within which the Commission is expected to complete specified matters:
b: which reorganisation applications are to be regarded by the Commission as having a higher priority.
3: Before specifying measures and expectations under this section, the Minister—
a: must consult the Commission; and
b: may consult any other persons or organisations that the Minister considers appropriate to consult.
4: The Commission must publish, on its Internet site,—
a: any measures and expectations given to it by the Minister under subsection (1)
b: 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
5: 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)
20: Section 40 amended (Local governance statements)
After section 40(1)(j)
ja: the remuneration and employment policy, if adopted; and .
21: New section 41A inserted (Role and powers of mayors)
After section 41
41A: Role and powers of mayors
1: The role of a mayor is to provide leadership to—
a: the other members of the territorial authority; and
b: the people in the district of the territorial authority.
2: Without limiting subsection (1)
3: For the purposes of subsections (1) and (2)
a: to appoint the deputy mayor:
b: to establish committees of the territorial authority:
c: to appoint the chairperson of each committee established under paragraph (b)
i: may make the appointment before the other members of the committee are determined; and
ii: may appoint himself or herself.
4: However, nothing in subsection (3)
a: removing, in accordance with clause 18 of Schedule 7, a deputy mayor appointed by the mayor under subsection (3)(a)
b: discharging or reconstituting, in accordance with clause 30 of Schedule 7, a committee established by the mayor under subsection (3)(b)
c: 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)
d: discharging, in accordance with clause 31 of Schedule 7, a chairperson appointed by the mayor under subsection (3)(c)
5: A mayor is a member of each committee of a territorial authority.
6: To avoid doubt, a mayor must not delegate any of his or her powers under subsection (3)
7: To avoid doubt,—
a: 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)
b: clauses 25 and 26(3) of Schedule 7 do not apply to the appointment of the chairperson of a committee of a territorial authority established under subsection (3)(b) subsection (3)(c)
22: Section 42 amended (Chief executive)
1: In section 42(2)(g) staff of the local authority (in accordance with any remuneration and employment policy)
2: In section 42(2)(h) authority (in accordance with any remuneration and employment policy)
23: Section 48 amended (Further provisions of Schedule 7)
After section 48(j)
k: adoption of a remuneration and employment policy.
24: Section 49 amended (Establishment of community boards)
In section 49(1)(a) giving effect to a reorganisation scheme made under section 25
25: Section 77 amended (Requirements in relation to decisions)
In section 77(1)(b)(i) social, economic, environmental, and cultural well-being interests
26: Section 84 amended (Special consultative procedure in relation to long-term plan)
In section 84(4) local authority's auditor Auditor-General
27: Section 94 amended (Audit of long-term plan)
1: In section 94(1) local authority's auditor Auditor-General
2: In section 94(2), replace auditor Auditor-General
28: Section 99 amended (Audit of information in annual report and summary)
In section 99(1) and (2) auditor's Auditor-General's
29: Section 101 amended (Financial management)
In section 101(3)(b) current and future social, economic, environmental, and cultural well-being of the
30: Section 197 amended (Interpretation)
1: In section 197 community facilities community infrastructure development contribution development contribution policy network infrastructure service connection
2: In section 197, insert as subsection (2):
2: In this Act, unless the context otherwise requires,— community facilities community infrastructure
a: land, or development assets on land, owned or controlled by the territorial authority to provide public amenities; and
b: includes land that the territorial authority will acquire for that purpose development contribution
a: provided for in a development contribution policy of a territorial authority; and
b: calculated in accordance with the methodology; and
c: comprising—
i: money; or
ii: land, including a reserve or esplanade reserve (other than in relation to a subdivision consent), 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 network infrastructure service connection
31: Part 10 replaced
Replace Part 10
10: Powers of Minister to act in relation to local authorities
253: Outline of Part
This Part confers powers on the Minister to—
a: assist local authorities in certain situations; and
b: intervene in the affairs of local authorities in certain situations.
254: 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
3: The options vary according to the nature and scale of assistance 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.
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 subpart 1
7: The provisions in subpart 2
255: Application of this Part
The Minister may appoint a Ministerial body under subpart 1
256: Interpretation
In this Part,— Commission section 258F Ministerial appointee subpart 1 Ministerial body subpart 1 problem
a: means—
i: a matter or circumstance relating to the management or governance of the local authority that detracts from, or is likely to detract from, its ability to give effect to the purpose of local government within its district or region; or
ii: a significant or persistent failure by the local authority to perform 1 or more of its functions or duties under any enactment; or
iii: 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 financial dealings; and
ii: a potential problem within the meaning of paragraph (a)(i) or (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
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 desirable in the circumstances significant
1: Ministerial powers of assistance and intervention
Minister may require information from local authority
257: Minister may require information
1: The Minister may, by notice in writing, require a local authority to provide to him or her information on the nature and extent 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: a problem relating to the local authority may exist; and
b: 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.
2: The Minister may, by notice in writing, require a local authority 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 appointed to assist or intervene in relation to the problem; and
b: for the purpose of the Minister assessing whether further action under this Part is required.
3: A notice under this section must state—
a: the problem; and
b: the information required by the Minister; and
c: the form in which the information is to be provided; and
d: the date by which the information is to be provided.
4: A local authority must respond to a notice received under this section—
a: by the date stated in the notice; or
b: by any other date to which the Minister has agreed.
5: The Minister may require a local authority to provide information under this section—
a: by instalments at specified dates:
b: by instalments at specified intervals.
6: The Minister may require a local authority to provide information under this section in relation to a problem on which information has already been requested and provided under the section. Minister may appoint Crown Review Team
258: Minister may appoint Crown Review Team
1: The Minister may appoint a Crown Review Team to a local authority if—
a: the local authority has received a notice from the Minister under section 257(1)
b: the Minister believes, on reasonable grounds, that a significant problem relating to the local authority may exist and—
i: the local authority is unable or unwilling to effectively address the problem; or
ii: a Ministerial body currently or previously appointed to the local authority has recommended the appointment; or
c: 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 appointment—
a: to the local authority, in writing; and
b: by notice in the Gazette
c: by public notice.
3: Each notice must comply with section 258S
4: 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 authority; and
d: ensure, as far as practicable, that the existing organisational capability of the local authority is not diminished.
5: If applicable, and to the extent authorised by its terms of reference, 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.
6: A local authority must—
a: co-operate with a Crown Review Team so that it may fulfil its terms of reference; and
b: comply with any reasonable request of the Crown Review Team to provide any relevant information that the local authority holds.
7: A Crown Review Team must produce a final report that complies with section 258U
8: This section is subject to section 258Q
258A: 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 following information:
a: the terms of reference of the Crown Review Team, including—
i: an outline of the problem in relation to which it has been appointed; and
ii: the extent of its authority; and
b: the start and end dates of the member's appointment; and
c: the start and end dates of the review period. Minister may appoint Crown Observer
258B: Minister may appoint Crown Observer
1: The Minister may appoint a Crown Observer to a local authority if—
a: the Minister believes, on reasonable grounds, that a significant problem relating to the local authority exists and—
i: the appointment of a Crown Observer is necessary to enable, or better enable, the local authority to effectively address the problem; or
ii: the appointment of a Crown Observer is necessary to enable, or better enable, the Minister to monitor the local authority's progress in addressing the problem; or
iii: a Ministerial body currently or previously appointed to the local authority has recommended the appointment; or
b: the Minister has received a written request from the local authority to do so.
2: Before the observation period begins, the Minister must give notice of the appointment—
a: to the local authority, in writing; and
b: by notice in the Gazette
c: by public notice.
3: Each notice must comply with section 258S
4: A Crown Observer must, to the extent authorised by his or her terms of reference,—
a: assist the local authority to address the problem; and
b: monitor the local authority's progress in relation to 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 authority; and
d: ensure, as far as practicable, that the existing organisational capability of the local authority is not diminished.
5: If applicable, and to the extent authorised by its terms of reference, a Crown Observer must also assist the local authority with, and monitor progress on, any related matter as recommended by a Ministerial body currently or previously appointed to the local authority.
6: A local authority must—
a: co-operate with a Crown Observer so that he or she may fulfil his or her terms of reference; and
b: comply with any reasonable request of the Crown Observer to provide any relevant information that the local authority holds.
7: A Crown Observer must produce a final report that complies with section 258U
8: This section is subject to section 258Q
258C: How Crown Observer appointed
The Minister must appoint a Crown Observer by notice in writing. The notice must include the following information:
a: the terms of reference of the Crown Observer, including—
i: an outline of the problem in relation to which the Crown Observer has been appointed; and
ii: the extent of his or her authority; and
b: the start and end dates of the appointment; and
c: the start and end dates of the observation period. Minister may appoint Crown Manager
258D: Minister may appoint Crown Manager
1: The Minister may appoint a Crown Manager to a local authority if—
a: the Minister believes, on reasonable grounds, that a significant 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
ii: for no good reason, the local authority has not adequately implemented a recommendation of any other Ministerial body in relation to the problem; or
iii: a Ministerial body currently or previously appointed to the local authority has recommended the appointment; or
b: the Minister has received a written request from the local authority to do so.
2: Before the management period begins, the Minister must give notice of the appointment—
a: to the local authority, in writing; and
b: by notice in the Gazette
c: by public notice.
3: Each notice must comply with section 258S
4: 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
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 authority; and
c: ensure, as far as practicable, that the existing organisational capability of the local authority is not diminished.
5: If applicable, and to the extent authorised by its terms of reference, 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: A local authority must—
a: co-operate with a Crown Manager so that he or she may fulfil his or her terms of reference; and
b: comply with the directions of a Crown Manager; and
c: comply with any reasonable request of a Crown Manager to provide any relevant information that the local authority holds.
7: A Crown Manager must produce a final report that complies with section 258U
8: This section is subject to section 258Q
258E: How Crown Manager appointed
The Minister must appoint a Crown Manager by notice in writing. The notice must include the following information:
a: the terms of reference of the Crown Manager, including—
i: an outline of the problem in relation to which the Crown Manager has been appointed; and
ii: the extent of his or her authority; and
b: the start and end dates of the Crown Manager's appointment; and
c: the start and end dates of the management period. Minister may appoint Commission
258F: Minister may appoint Commission
1: The Minister may appoint a Commission to a local authority if—
a: the Minister believes, on reasonable grounds, that—
i: a significant problem relating to the local authority—
A: is impairing, or likely to impair, the good local government of the local authority's district or region; or
B: is endangering, or likely to endanger, the public health or safety of the people within the local authority's district or region; and
ii: the local authority is unable or unwilling to effectively address the problem; and
iii: the problem is such that appointing a Crown Review Team, a Crown Observer, or a Crown Manager to the local authority is unlikely to prevent the consequences described in subparagraph (i)
b: the local authority refuses or is unable to comply with a direction of a Crown Manager given under section 258D(4)
c: 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
d: the Minister has received a written request from the local authority to do so.
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
c: by public notice.
3: Each notice must comply with section 258S
4: A Commission must perform the functions and duties and exercise 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
b: subject to—
i: section 258H
ii: 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 directly conferred on the mayor or chairperson, or any other member, of 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 committee or subcommittee established under Schedule 7 of this Act.
6: 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 authority; and
b: if applicable, implement the recommendations of a Ministerial body currently or previously appointed to the local authority.
7: A Commission must ensure, as far as practicable, that the existing organisational capability of the local authority is not diminished.
8: A Commission must produce a final report that complies with section 258U
9: This section is subject to section 258Q
258G: 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.
3: The Minister must appoint each member of a Commission by notice in writing. The notice must include the following information:
a: the terms of reference of the Commission, including—
i: an outline of the problem in relation to which it has been appointed; and
ii: any limitations on the extent of its authority; and
b: the start and end dates of the member's appointment; and
c: the start and end dates of the Commission's term.
258H: 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 to perform the functions and duties and exercise the powers of a local authority under section 258F
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.
3: 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.
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, 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.
258I: Minister may postpone general election when appointing Commission
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 258F
b: at any time during the period in which the Commission is performing the local authority's functions and duties and exercising its powers.
2: Subsection (1)
3: If the Minister acts under subsection (1)
a: give public notice of the postponement; and
b: before the term of the Commission ends,—
i: call a general election of the local authority by notice in the Gazette
ii: give public notice of the calling of the election.
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
b: if section 258J
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)
a: no later than 7 days after the Minister gives notice of the election under subsection (3)(b)
b: if section 258J
258J: Timing of election following postponed election
1: This section applies if—
a: the Minister postpones a triennial general election for members of a local authority under section 258I
b: the date on which the postponed election is subsequently 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: the next triennial election; or
b: the next subsequent triennial general election as determined under section 10 of the Local Electoral Act 2001 (the second triennial election subsections (3) to (5)
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 election holds office until he or she vacates office, in accordance with section 116 of the Local Electoral Act 2001, for the second triennial election.
5: Subsection (4)
258K: Local authority members remain in office but must not act during term of Commission
1: Subsection (2) section 258F
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, or to use any property of the local authority, until the earliest of the following events occurs:
a: the Commission ends its term, in which case the member resumes full power to act:
b: a triennial general election is held for the local authority under section 10 of the Local Electoral Act 2001, in which case the member vacates office in accordance with section 116 of that Act:
c: a general election is held for the local authority under section 258I
d: a general election is held for the local authority under section 258M
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
b: is entitled to receive payment for holding office as a member of the committee or subcommittee in that capacity.
4: In subsection (2) act
258L: 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)—
a: exists at the time a Commission is appointed to a local authority; or
b: is created during the term that a Commission is appointed to a local authority.
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
b: a general election for the local authority under section 258I or 258M
3: The vacancy must be filled in accordance with sections 117 to 120 of the Local Electoral Act 2001 in any other case except 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
258M: Minister may call general election
1: The Minister may, by notice in the Gazette
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—
a: give the local authority a copy of the Gazette
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) subsection (1)
2: General provisions applying to Ministerial powers conferred under subpart 1
258N: 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 subpart 1
b: when appointing a Ministerial body under subpart 1
c: when formulating the terms of reference for a Ministerial body.
2: The Minister may, but is not obliged to, consult any person, organisation, or group—
a: when postponing a general election under section 258I
b: when calling a general election under section 258M
258O: Minister must publish list in
Gazette
1: The Minister must publish in the Gazette subpart 1
2: Without limiting subsection (1)
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 considers are likely to detract from the ability of local authorities to give effect to the purpose of local government within their districts and regions:
c: the types and sources of information that the Minister is likely to consider when making decisions under this Part.
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.
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.
258P: Minister must have regard to published list
1: The Minister, when determining what action, if any, to take under subpart 1 section 258O
2: To avoid doubt, the Minister may act under subpart 1
258Q: Notice to local authority of proposed appointment of Ministerial body
1: Before appointing a Ministerial body, the Minister must—
a: give the local authority concerned written notice that he or she intends to make the appointment; and
b: state in the notice the reasons for the proposed appointment and the proposed terms of reference; and
c: 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:
ii: the local authority is acting effectively to address the problem:
iii: for any other reason, the appointment should not be made:
iv: a different Ministerial body should be appointed.
2: The Minister must—
a: notify the local authority, in writing, if he or she decides not to appoint a Ministerial body; or
b: act under section 258(2), 258B(2), 258D(2), or 258F(2)
3: This section does not apply if—
a: the local authority has requested the Minister to make the appointment; or
b: 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.
258R: Notice to local authority of proposed general election
1: Before calling a general election under section 258M
a: give the local authority concerned written notice that he or she intends to call the election; and
b: state in the notice the reasons for the proposed election in terms of section 258M(1)
c: 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 calling the election do not exist:
ii: for any reason, the election should not be called:
iii: a Ministerial body should be appointed instead.
2: The Minister must—
a: notify the local authority, in writing, if he or she decides not to call the election; or
b: act under section 258M(3)
258S: Notification of appointment of Ministerial body
1: A notice of appointment of a Ministerial body under section 258(1), 258B(1), 258D(1), or 258F(1)
a: that the Minister has appointed a Ministerial body; and
b: the terms of reference of the Ministerial body; and
c: the start and end dates of the Ministerial body's appointment; and
d: the names of each member of the Ministerial body; and
e: if applicable, the name of the chairperson of the Ministerial body.
2: Subsection (3)
a: the notice of appointment relates to a Commission; and
b: the Minister has, at the same time, postponed the next triennial general election for members of the local authority under section 258I
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
258T: 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
258U: 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
b: in respect of the problem in relation to which the Ministerial body was appointed, an assessment of progress in addressing the problem; and
c: any final recommendations of the Ministerial body to the Minister, the local authority, or both; and
d: without limiting paragraph (c)
e: any other matter required by the Ministerial body's terms of reference.
2: The Minister must, as soon as practicable,—
a: give a copy of the report to the local authority; and
b: make the report publicly available, excluding any information 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.
258V: Remuneration and expenses of Ministerial appointees
1: A Ministerial appointee is entitled—
a: to receive remuneration for services as a member of a Ministerial body as determined by the Minister in accordance with the fees framework; and
b: 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 framework.
2: In this section, fees framework
258W: 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 Manager or a Commission to the local authority, including the payment 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—
a: the Minister decides that to do so is reasonable in the circumstances; and
b: the terms of reference authorise the recovery.
3: The Crown may recover expenses under subsection (2)
258X: Minister may terminate Ministerial body or Ministerial appointee
1: The Minister may terminate the appointment of a Ministerial body at any time by notice in writing.
2: The Minister must give notice of the termination—
a: to the local authority, in writing; and
b: by notice in the Gazette
c: by public notice.
3: The Minister may terminate a Ministerial appointee's appointment at any time by notice in writing, and no compensation is payable to the person as a result of the termination.
258Y: Protection from liability for Ministerial appointees
1: A Ministerial appointee is not liable for any act done or omitted 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: acts done or omitted to be done by a Crown Manager when directing a local authority to act; and
b: acts done or omitted to be done by a Commission member when performing the functions and exercising the powers of a local authority or its members.
258Z: Disclosure of information held by local authority
1: For the purposes of this Part, information held by a local authority may be disclosed to the Minister or a Ministerial body despite anything to the contrary in the Official Information Act 1982, the Local Government Official Information 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.
3: In this section, Minister
258ZA: Decisions and directions of Crown Manager or Commission remain in force until local authority decides otherwise
1: Subsections (2) and (3)
2: A direction given to the local authority by the Crown Manager ceases to have effect.
3: Despite subsection (2)
4: Subsection (5)
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.
32: Section 259 amended (Regulations)
1: Replace section 259(1)(d)(i)
i: in petitions and polls in relation to final proposals for local government reorganisation under Schedule 3 .
2: After section 259(1)(db)
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)
ii: the actual performance of the local authority against parameters and benchmarks prescribed in regulations made under paragraph (dc) .
3: After section 259(2)
3: Regulations made under subsection (1)(dc)
a: prescribe parameters or benchmarks in any manner, including 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):
ii: 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 Consumers 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
b: prescribe parameters or benchmarks in a way that differentiates between different types or classes of local authority (for example, regional councils, territorial authorities, and local authorities with a population, assets, or an average income of its population over or under a specified figure); and
c: prescribe parameters or benchmarks in a way that includes or excludes subsidiaries, including council-controlled organisations, council-controlled trading organisations, and council organisations, of a local authority.
4: The Minister may recommend the making of regulations under subsection (1)(dc)
33: New sections 259C to 259J inserted
After section 259B
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)
2: The Auditor-General must report on the completeness and accuracy 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)
2: Financial reporting standards may be incorporated by reference in the regulations—
a: in whole or in part; and
b: with modifications, additions, or variations specified in the regulations.
3: Financial reporting standards incorporated by reference in regulations made under section 259(1)(dc)
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) initial regulations subsection (2)
a: the amendment or replacement is made by the External Reporting Board in accordance with the Financial Reporting Act 1993; and
b: the amendment or replacement is of the same general character as the standard amended or replaced; and
c: the initial regulations state that amendments or replacements have this effect.
2: An amendment to, or replacement of, a financial reporting standard has legal effect as part of the initial regulations on 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 reference in regulations, including any amendment to, or replacement of, the standards must be—
a: certified as a correct copy by the Secretary; and
b: retained by the Secretary.
2: The production in proceedings of a certified copy of the financial reporting standards is, in the absence of evidence to the contrary, sufficient evidence of the incorporation in the regulations 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)
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)
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 regulations that incorporate any financial reporting standards incorporated by reference in regulations made under section 259(1)(dc)
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)
b: an amendment to, or replacement of, those standards.
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 incorporated by reference in regulations made under section 259(1)(dc)
2: The Regulations (Disallowance) Act 1989, apart from the modification to the application of section 4 of that Act made by subsection (1) section 259(1)(dc)
34: Section 260 amended (Amendment of Schedule 2 by Order in Council)
In section 260(3) that gives effect to any reorganisation scheme made under section 25
35: Schedule 2 amended
In Schedule 2, Part 3, clauses 1(4) 2(4) giving effect to a reorganisation scheme made under section 25
36: Schedule 3 replaced
Replace Schedule 3 Schedule 3 Schedule 1
37: Schedule 6 amended
1: In Schedule 6, clause 6
a: replace clause 3 of Schedule 3 clause 19 of Schedule 3
b: replace reorganisation proposals draft proposals
2: In Schedule 6, clause 9(1)(a) giving effect to a reorganisation scheme made under section 25
38: Schedule 7 amended
1: This section amends Schedule 7
2: Replace clause 6
6: Remuneration Authority to determine remuneration
1: The Remuneration Authority must determine the remuneration, allowances, and expenses payable to—
a: mayors, deputy mayors, chairpersons, deputy chairpersons, and members of local authorities:
b: chairpersons of committees of local authorities:
c: chairpersons and members of community boards:
d: chairpersons of committees of community boards:
e: chairpersons and members of local boards:
f: chairpersons of committees of local boards.
2: The Remuneration Authority may also determine the remuneration, 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 responsibilities 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 following things under subclause (1) or (2)
a: fix—
i: scales of salaries:
ii: scales of allowances:
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:
ii: rules for reimbursing expenses incurred by members:
c: 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 groups, occupying equivalent positions:
e: approve rules proposed by a local authority for reimbursing 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 subclause (3)(e)
5: The Remuneration Authority may issue separate determinations, at different times, for the different positions listed in subclauses (1) and (2)
6: Clause 7A
7: A determination by the Remuneration Authority under this clause is a regulation for the purposes of the Acts and Regulations Publication Act 1989 and the Regulations (Disallowance) Act 1989.
8: In this clause, local boards
3: Insert after clause 7
7A: Matters applying to determinations
1: The Remuneration Authority may make a determination before 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.
5: The Remuneration Authority may amend a determination while it is in force.
6: Despite subclause (5)
7: The Remuneration Authority must review and issue a determination for each position listed in clause 6(1)
4: In clause 32(1)
h: the power to adopt a remuneration and employment policy.
5: After clause 36
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—
a: employee staffing levels; and
b: the remuneration of employees.
2: A local authority must review a policy adopted under this clause at intervals of no more than 3 years.
39: Schedule 10 amended
1: This section amends Schedule 10
2: In clause 2(1)(c) social, economic, environmental, or cultural well-being of the
3: In clause 23(d) social, economic, environmental, or cultural well-being of the
4: After clause 32
32A: Employee staffing levels and remuneration
1: An annual report must include a report on the number of employees 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.
2: For each financial year, the report must state, as at the last day of that year,—
a: the number of full-time employees; and
b: the full-time equivalent number of all other employees; and
c: the number of employees receiving total annual remuneration of less than $60,000; and
d: the number of employees receiving total annual remuneration of $60,000 or more, expressed in bands of $20,000.
3: However, if the number of employees in any band to which subclause (2)(d)
4: In subclause (2) total annual remuneration
5: The report requirement in this clause applies to—
a: the financial year ending 30 June 2013; and
b: each following financial year.
40: Schedule 15 repealed
Repeal Schedule 15
2: Transitional provision and consequential amendments
41: Commissioners and commissions currently appointed under principal Act
A Commissioner appointed under section 255 clause 14(a) Part 10 section 31
42: Transitional provision relating to reorganisation proposals
1: This section applies to a reorganisation proposal made under Schedule 3 Part 1
2: The principal Act continues to apply to the reorganisation proposal as if Part 1
43: Consequential amendments
The enactments listed in Schedule 2 2012-12-05 Auckland Regional Amenities Funding Act 2008 Local Electoral Act 2001 Local Government (Auckland Council) Act 2009 Local Government (Auckland Transitional Provisions) Act 2010 Plumbers, Gasfitters, and Drainlayers Act 2006 Receiverships Act 1993