Local Government Act 2002 Amendment Act 2019

1: Title
This Act is the Local Government Act 2002 Amendment Act 2019.
2: Commencement
This Act comes into force on the day after the date on which it receives the Royal assent.
1: Amendments to Local Government Act 2002
3: Principal Act
This Act amends the Local Government Act 2002 principal Act 2019-10-22 Local Government Act 2002
4: Section 5 amended (Interpretation)
1: In section 5(1) discretionary function permanent committee reorganisation implementation scheme reorganisation plan
2: In section 5(1) unitary authority reorganisation scheme reorganisation plan
5: Section 6 amended (Meaning of council-controlled organisation and council organisation)
Replace section 6(3)﻿(c)
c: shareholders include any persons with an interest or right in the entity that is comparable to the rights of a shareholder in a company, for example, partners, joint venture partners, members, or other persons holding equity securities in relation to that organisation; and
6: Section 16 amended (Significant new activities proposed by regional council)
1: In section 16(1)﻿(c)﻿(ii) or their annual plans
2: In section 16(8)﻿(d) application
3: In section 16(9) affected territorial authority or annual plan
4: In section 16(9) annual plan
7: Section 17 amended (Transfer of responsibilities)
1: After section 17(3)
3A: The terms and conditions agreed under subsection (3) must ensure effective provision for any affected co-governance or co-management arrangements that are established by legislation (including Treaty of Waitangi claim settlement legislation) and that are between local authorities and iwi or Māori organisations.
2: After section 17(4)
4A: In assessing, for the purposes of subsection (4), the benefits and negative impacts of a proposed transfer, a local authority must have regard to the following matters:
a: whether the transfer will promote—
i: better fulfilment of the purpose of local government:
ii: productivity improvements within local authorities and districts or regions:
iii: efficiencies and cost savings:
iv: assurance that the local authorities concerned have the resources necessary to enable them to effectively perform or exercise their responsibilities, duties, and powers:
v: effective responses to the opportunities, needs, and circumstances of the affected area:
vi: enhanced effectiveness, efficiency, and sustainability of local government services:
vii: better support for the ability of local and regional economies to develop and prosper:
viii: enhanced ability of local government to meet the changing needs of communities for governance and services into the future:
b: the scale and probability of the potential benefits of the transfer to users of local government services:
c: the financial, disruption, and opportunity costs of implementing the proposed transfer at the proposed time:
d: the consequences and risks of not implementing the proposed transfer at the proposed time:
e: existing communities of interest, and the extent to which the proposed transfer will maintain linkages between communities (including iwi and hapū) and sites and resources of significance to them.
3: Replace section 17(8)
8: In this section, responsibility
a: means any responsibility, duty, or legal obligation (including a responsibility, duty, or legal obligation that has previously been transferred under this section and a discretionary function), and any powers associated with that responsibility, duty, or legal obligation; but
b: does not include a responsibility, duty, or legal obligation conferred by or under any other Act, unless that Act provides that the responsibility, duty, or legal obligation may be transferred in accordance with this section.
8: Section 24AA replaced (Purpose of local government reorganisation)
Replace section 24AA
24AA: Purpose of local government reorganisation provisions
The purpose of the local government reorganisation provisions of this Act is to promote good local government by enabling and facilitating improvements to local governance.
9: Section 24 replaced (Scope of local government reorganisation)
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 from one local authority to another of—
i: a responsibility, duty, or power conferred by an enactment; or
ii: a discretionary function:
f: the assumption by a territorial authority of the responsibilities, duties, and powers of a regional council as a unitary authority:
g: the performance and exercise by a local authority of both—
i: the responsibilities, duties, and powers of a regional council in respect of a region; and
ii: the responsibilities, duties, and powers of a territorial authority in respect of a district that constitutes a part only of that region:
h: the establishment of 1 or more joint committees and the delegation of responsibilities, duties, and powers to those committees:
i: the establishment of a local board area, including the establishment of a local board for that area:
j: in relation to a local board, other than a local board established under the Local Government (Auckland Council) Act 2009,—
i: the means by which the chairperson is elected; and
ii: whether the local board may include appointed members:
k: the abolition of a local board area:
l: the alteration of the boundaries of a local board area:
m: the union of 2 or more local board areas.
2: Schedule 3 applies in relation to local government reorganisation.
10: Section 24A amended (Transitional modification or suspension of certain statutory requirements after issue of final proposal for reorganisation)
1: In the heading to section 24A final proposal for reorganisation reorganisation plan
2: Replace section 24A(1)
1: The purpose of this section is to authorise the extension or postponement of certain statutory requirements after public notice of a reorganisation plan is given under clause 13 of Schedule 3
3: Replace section 24A(2)
2: This section applies to a reorganisation plan only if the plan provides for any of the matters specified in clause 23(1) of Schedule 3
4: In section 24A(6) specified period specified period
a: beginning on the date on which public notice is given of the reorganisation plan under clause 13 of Schedule 3
b: ending on the close of the date that is 6 months after the date on which that public notice is given.
11: Section 25 replaced (Order in Council to give effect to final proposals and reorganisation schemes)
Replace section 25
25: Order in Council to give effect to reorganisation plan
1: A reorganisation plan to which clause 22C(5)
a: is given effect to by Order in Council made on the recommendation of the Minister; and
b: has effect on and from the date or dates specified for that purpose by that Order in Council (as required by subsection (3)﻿(a)
2: The Minister must recommend the making of an Order in Council under subsection (1)
a: the process followed in developing the reorganisation plan was not in accordance with the requirements of this Act; or
b: the development of the reorganisation plan failed to give proper weight to the relevant principles, considerations, and criteria set out in this Act.
3: An Order in Council made under subsection (1)
a: must specify the date or dates on which its provisions come into effect; and
b: must establish and provide for 1 or more transition bodies in accordance with—
i: clauses 33 to 40 of Schedule 3; and
ii: the provisions in the reorganisation plan relating to transitional matters; and
c: may, with the agreement of the Commission, suspend any statutory requirement that an affected local authority would otherwise be subject to if the reorganisation would make compliance with the statutory requirement unnecessary or inappropriate.
4: An Order in Council made under subsection (1)
5: An Order in Council giving effect to a reorganisation plan is not invalid merely because it is inconsistent with the provisions of the reorganisation plan if the inconsistency relates to—
a: corrections of clerical, grammatical, or typographical errors; or
b: the inclusion of provisions that are necessary to give legal effect to the reorganisation plan; or
c: the omission of explanatory material or other material that is not necessary to give legal effect to the reorganisation plan; or
d: matters of a format or referential nature that do not alter the substance or effect of the reorganisation plan.
25A: Order in Council to give effect to reorganisation implementation scheme
1: A reorganisation implementation scheme prepared and issued under clause 41(2) of Schedule 3—
a: is given effect to by Order in Council made on the recommendation of the Minister; and
b: has effect on and from the date or dates specified for that purpose by that Order in Council (as required by subsection (2)﻿(a)
2: An Order in Council made under subsection (1)
a: the date or dates on which its provisions come into effect; and
b: the date on which the local government reorganisation described in the order takes effect (the implementation date
3: An Order in Council giving effect to a reorganisation implementation scheme is not invalid merely because it is inconsistent with the provisions of the reorganisation plan or the reorganisation implementation scheme if the inconsistency relates to—
a: corrections of clerical, grammatical, or typographical errors; or
b: the inclusion of provisions that are necessary to give legal effect to the reorganisation implementation scheme; or
c: the omission of explanatory material or other material that is not necessary to give legal effect to the reorganisation implementation scheme; or
d: matters of a format or referential nature that do not alter the substance or effect of the reorganisation implementation scheme.
4: If a reorganisation implementation 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 the Commission, and each affected local authority, about the inclusion of the matter in the Order in Council under subsection (1)
b: the matter may be included in the Order in Council if the Minister considers the inclusion is appropriate.
5: Clauses 45 and 46 of Schedule 3 apply in respect of each reorganisation implementation scheme that is given effect to by Order in Council, except to the extent that the Order in Council provides that the clauses are—
a: amended in their application; or
b: declared not to apply.
6: Clauses 47 to 60A
12: Section 26 replaced (Power to amend reorganisation schemes)
Replace section 26
26: Power to amend reorganisation plans and reorganisation implementation schemes
1: A reorganisation plan may be amended by a further reorganisation plan that is developed and adopted in accordance with this Act and that is given effect by an Order in Council under section 25
2: A reorganisation implementation scheme may be amended by a further reorganisation implementation scheme that is developed and adopted in accordance with this Act and that is given effect by an Order in Council under section 25A
13: Section 26A amended (Duties of local authorities in relation to local government reorganisation)
1: In section 26A(2) proposed reorganisation or to the development of a reorganisation scheme reorganisation investigation or to the development of a reorganisation implementation scheme
2: In section 26A(3) final proposal reorganisation plan
3: In section 26A(4)﻿(a) final proposal reorganisation plan
4: After section 26A(4)
5: A local authority that receives a report or recommendation from the Commission under clause 9 of Schedule 3
a: make the report or recommendation publicly available; and
b: consider and respond to the Commission in relation to the report or recommendation; and
c: make the response publicly available.
6: A local authority must comply with subsection (5)
a: within 30 working days after receiving the report or recommendation; or
b: by a later date specified by the Commission in the report or recommendation.
7: Nothing in this section requires a local authority to make publicly accessible any information that may be properly withheld if a request for that information were made under the Local Government Official Information and Meetings Act 1987.
14: Section 27 amended (Application to be called city council or district council)
In section 27(1) , instead of making a reorganisation application under Schedule 3,
15: Section 29 amended (Commission is body corporate with full powers)
After section 29(2)
3: The Commission is a public office for the purposes of the Public Records Act 2005.
16: Section 31 amended (Report to Minister on matters relating to local government)
Repeal section 31(1A)
17: Section 31A amended (Minister’s expectations of Commission in relation to local government reorganisation)
1: In section 31A(1), (3), (4)﻿(a) and (b), and (5) measures and
2: After section 31A(1)
1A: The Minister must state in the notice the Minister’s objectives in respect of the expectations specified in the notice.
18: Section 33 amended (Membership of Commission)
1: In section 33(1) 3 members a minimum of 1 member and a maximum of 3 members
2: Replace section 33(2)
2: If the Commission consists of 2 members or 3 members,—
a: 1 member—
i: must have a knowledge of tikanga Māori; and
ii: must be appointed by the Minister after consultation with the Minister for Māori Development; and
b: 1 member—
i: must have experience as an elected member or the chief executive of a local authority; and
ii: must be appointed by the Minister after consultation with the New Zealand Local Government Association Incorporated.
2A: If the Commission consists of 1 member, that member must be appointed by the Minister, who must—
a: take into consideration whether the member has a knowledge of tikanga Māori or experience as an elected member or the chief executive of a local authority; and
b: consult with—
i: the Minister for Māori Development; and
ii: the New Zealand Local Government Association Incorporated.
19: Section 34 replaced (Commission is Commission of Inquiry)
Replace section 34
34: Additional powers of Commission
1: For the purposes of performing its functions under this Act, the Commission—
a: has the powers of the District Court exercising its civil jurisdiction in respect of citing parties and conducting and maintaining order at any meeting or hearing; and
b: is to be treated as an inquiry for the purposes of sections 14, 19 to 27, 29, 30, and 34 of the Inquiries Act 2013.
2: The chairperson of the Commission, or any other person (being a member of the Commission or an officer of the Public Service) acting by direction or with the authority of the chairperson, may do any act preliminary or incidental to the investigation or consideration of any matter by the Commission.
20: New section 35A inserted (Application of Official Information Act 1982)
After section 35
35A: Application of Official Information Act 1982
1: This section applies to information created or received by the Commission in the course of—
a: the consideration of any matter under section 31:
b: a reorganisation investigation under Part 1 of Schedule 3
c: the review of a local authority-led reorganisation application under clause 22C of Schedule 3
d: the resolution of a dispute by the Commission under this Act or another enactment:
e: the determination of an appeal or objection under section 19R of the Local Electoral Act 2001.
2: Information to which this section applies is not official information for the purposes of the Official Information Act 1982 until the consideration, investigation, resolution, review, or determination has been completed.
21: Section 57 amended (Appointment of directors)
After section 57(2)
3: When identifying the skills, knowledge, and experience required of directors of a council-controlled organisation, the local authority must consider whether knowledge of tikanga Māori may be relevant to the governance of that council-controlled organisation.
22: New section 60A inserted (Significant decisions of council-controlled organisations affecting land or water)
After section 60
60A: Significant decisions of council-controlled organisations affecting land or water
Before a council-controlled organisation makes a decision that may significantly affect land or a body of water, it must take into account the relationship of Māori and their culture and traditions with their ancestral land, water, sites, wāhi tapu, valued flora and fauna, and other taonga.
23: Section 64 and cross-heading replaced
Replace section 64 Council-controlled organisation planning
64: Statements of intent for council-controlled organisations
1: Every council-controlled organisation must prepare and adopt a statement of intent in accordance with Part 1 of Schedule 8
2: The purpose of a statement of intent is to—
a: state publicly the activities and intentions of the council-controlled organisation for the year and the objectives to which those activities will contribute; and
b: provide an opportunity for shareholders to influence the direction of the organisation; and
c: provide a basis for the accountability of the directors to their shareholders for the performance of the organisation.
3: The statement of intent—
a: must not be inconsistent with the constitution of the council-controlled organisation; and
b: may include and apply to 2 or more related council-controlled organisations.
4: Every statement of intent of a council-controlled organisation must comply with Part 2 of Schedule 8
5: Every statement of intent of a council-controlled trading organisation must comply with Part 3 of Schedule 8
6: Every statement of intent of a council-controlled organisation that is not a council-controlled trading organisation must comply with Part 4 of Schedule 8
7: All information that is included in a statement of intent under this section must be prepared in accordance with generally accepted accounting practice if that information is of a form or nature for which generally accepted accounting practice has developed standards.
8: Despite this section, an organisation that becomes a council-controlled organisation not more than 6 months before the end of a financial year is not required to prepare a statement of intent for that financial year.
9: Each shareholding local authority must publish the adopted statement of intent on an Internet site maintained by or on behalf of the local authority within 1 month of adopting it, and must maintain the statement on that site for a period of no less than 7 years.
10: A failure by a council-controlled organisation to comply with any requirement of this section, or with any statement in the organisation’s statement of intent, does not affect the validity or enforceability of any deed, agreement, right, or obligation entered into, obtained, or incurred by that organisation.
64A: Shareholders may require additional plans
1: The shareholders of a council-controlled organisation may require the organisation to prepare and deliver additional plans, including—
a: an asset management plan:
b: a long-term plan:
c: 1 or more thematic plans (for example, a climate change mitigation plan).
2: A requirement to provide a plan must be notified to the council-controlled organisation in writing and must specify—
a: the date by which the plan must be delivered to the shareholders; and
b: the matters to be addressed in the plan; and
c: the time period that the plan is to cover.
3: A requirement to provide a plan may also specify a date or dates by which, or intervals at which, the organisation must report on its progress against the plan.
4: The board of a council-controlled organisation must deliver plans, and reports against those plans, in accordance with the terms of the requirement.
64B: Statement of expectations
1: The shareholders in a council-controlled organisation may prepare a statement of expectations that—
a: specifies how the organisation is to conduct its relationships with—
i: shareholding local authorities; and
ii: the communities of those local authorities, including any specified stakeholders within those communities; and
iii: iwi, hapū, and other Māori organisations; and
b: requires the organisation to act consistently with—
i: the statutory obligations of the shareholding local authorities; and
ii: the shareholders’ obligations pursuant to agreements with third parties (including with iwi, hapū, or other Māori organisations).
2: A statement of expectations may include other shareholder expectations, such as expectations in relation to community engagement and collaboration with shareholders and others in the delivery of services.
3: A statement of expectations must be published on an Internet site maintained by or on behalf of each local authority that is a shareholder of the organisation.
24: Section 66 replaced (Half-yearly report)
Replace section 66
66: Half-yearly or quarterly reports
1: During each financial year, the board of a council-controlled organisation must report on the organisation’s operations to—
a: its shareholders; and
b: in the case of an organisation that is indirectly controlled by 1 or more local authorities (for example, a subsidiary of a holding company owned by a local authority), to each local authority that indirectly controls the organisation.
2: A half-yearly report must be delivered within 2 months after the end of the first half of each financial year.
3: If the shareholders of the council-controlled organisation notify the organisation that they require quarterly reporting, quarterly reports must also be delivered within 2 months after the end of the first and third quarters of each financial year.
4: Each report must include the information required to be included by the council-controlled organisation’s statement of intent.
5: Each local authority that receives a report under this section must publish the report on an Internet site maintained by or on behalf of the local authority within 1 month of receiving it and must maintain the report on that site for a period of no less than 7 years. 1974 No 66 s 594Z
25: Section 67 amended (Annual report)
1: Replace section 67(1)
1: Within 3 months after the end of each financial year, the board of a council-controlled organisation must—
a: complete a report on the organisation’s operations during that year; and
b: deliver the report to its shareholders and, in the case of an organisation that is indirectly controlled by 1 or more local authorities (for example, a subsidiary of a holding company owned by a local authority), to each local authority that indirectly controls the organisation; and
c: make the report available to the public.
2: After section 67(2)
3: If a council-controlled organisation has undertaken to obtain or has obtained compensation from its shareholders in respect of any activity, the undertaking or the amount of compensation obtained must be recorded in the annual report of the council-controlled organisation.
4: Each local authority that receives an annual report under this section must publish the annual report on an Internet site maintained by or on behalf of the local authority within 1 month of receiving it, and must maintain the report on that site for a period of no less than 7 years.
26: Section 71 amended (Protection from disclosure of sensitive information)
In section 71 or half-yearly report half-yearly report, or quarterly report
27: Section 71A amended (Application of Part to listed companies)
In section 71A(2)﻿(b) half-yearly report or quarterly report
28: Section 97 amended (Certain decisions to be taken only if provided for in long-term plan)
Replace section 97(3)
3: Nothing in this section applies to a decision of a local authority—
a: to adopt a local authority-led reorganisation plan under clause 22A of Schedule 3
b: that is required in order to implement a reorganisation in accordance with an Order in Council under section 25 or 25A
c: to fund a capital project by lump sum contributions, if the local authority has complied with section 117B(3)﻿(c)﻿(i) of the Local Government (Rating) Act 2002.
29: Section 259 amended (Regulations)
In section 259(1)﻿(d) petitions and polls in relation to final proposals for local government reorganisation polls in relation to reorganisation plans
30: Schedule 1AA amended
In Schedule 1AA, after clause 15 Part 3 Schedule 1
31: Schedule 3 amended
Amend Schedule 3 Schedule 2
32: Schedule 4 amended
Amend Schedule 4 Schedule 3
33: Schedule 5 amended
In Schedule 5, clause 1(2)﻿(b) section 10 of the Commissions of Inquiry Act 1908 section 34 of the Inquiries Act 2013
34: Schedule 7 amended
1: In Schedule 7, repeal clause 6(8)
2: In Schedule 7, after clause 30A(6)
6A: For the purposes of subclause (6)﻿(b), a mayor who is a member of the committee solely by operation of section 41A(5) is not counted as a member of the committee for the purposes of determining—
a: the number of members required to constitute a quorum; or
b: whether a quorum exists at a meeting.
3: In Schedule 7, clause 30A(7) this clause subclauses (1) to (4)
35: Schedule 8 replaced
Replace Schedule 8 Schedule 8 Schedule 4
36: Schedule 10 amended
Amend Schedule 10 Schedule 5
2: Amendments to other enactments
Amendment to Land Transport Act 1998
37: Amendment to Land Transport Act 1998
Section 38 Land Transport Act 1998 2019-10-22 Land Transport Act 1998
38: New section 210A inserted (Transfer of responsibilities between regional councils and territorial authorities)
After section 210
210A: Transfer of responsibilities between regional councils and territorial authorities
1: A regional council may transfer 1 or more of its responsibilities under this Act to a territorial authority under section 17 of the Local Government Act 2002.
2: A territorial authority may transfer 1 or more of its responsibilities under this Act to a regional council under section 17 of the Local Government Act 2002.
3: In this section, responsibility
a: a responsibility that has previously been transferred under section 17 of the Local Government Act 2002; and
b: any powers associated with the responsibility, duty, or legal obligation. Amendment to Land Transport Management Act 2003
39: Amendment to Land Transport Management Act 2003
Section 40 Land Transport Management Act 2003 2019-10-22 Land Transport Management Act 2003
40: New section 7B inserted (Transfer of responsibilities between regional councils and territorial authorities)
After section 7A
7B: Transfer of responsibilities between regional councils and territorial authorities
1: A regional council may transfer 1 or more of its responsibilities under this Act to a territorial authority under section 17 of the Local Government Act 2002.
2: A territorial authority may transfer 1 or more of its responsibilities under this Act to a regional council under section 17 of the Local Government Act 2002.
3: In this section, responsibility
a: a responsibility that has previously been transferred under section 17 of the Local Government Act 2002; and
b: any powers associated with the responsibility, duty, or legal obligation. Amendment to Local Government Act 1974
41: Amendment to Local Government Act 1974
Section 42 Local Government Act 1974 2019-10-22 Local Government Act 1974
42: New section 318A inserted (Transfer of responsibilities between regional councils and territorial authorities)
After section 318
318A: Transfer of responsibilities between regional councils and territorial authorities
1: A regional council may transfer 1 or more of its responsibilities under this Part to a territorial authority under section 17 of the Local Government Act 2002.
2: A territorial authority may transfer 1 or more of its responsibilities under this Part to a regional council under section 17 of the Local Government Act 2002.
3: In this section, responsibility
a: a responsibility that has previously been transferred under section 17 of the Local Government Act 2002; and
b: any powers associated with the responsibility, duty, or legal obligation. Amendments to other enactments
43: Consequential amendments to other enactments
Amend the enactments specified in Schedule 6 2019-10-22 Freedom Camping Act 2011 Greater Christchurch Regeneration Act 2016 Land Transport Management Act 2003 Local Government Act 1974 Ombudsmen Act 1975 Plumbers, Gasfitters, and Drainlayers Act 2006