Plain language law

New Zealand law explained for everyone

Local Government Act 2002

Preliminary provisions

7: Exempted organisations

You could also call this:

“Some organisations can be excused from following certain rules”

The Governor-General can make certain organisations exempt from some rules. This can only happen if the Minister recommends it. The Minister will only recommend this if the organisation already has to report to someone else and if they think the organisation is as responsible as a council-controlled organisation.

You can also ask your local authority to exempt a small organisation from some rules. The local authority will think about what the organisation does and if exempting them would be good or bad for everyone. If they decide to exempt the organisation, they must check this decision every three years. They can also change their mind at any time.

If the Governor-General exempts an organisation, this decision is called an order. This order is a type of law that has to be published for everyone to see.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM171496.

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Part 1 Preliminary provisions

7Exempted organisations

  1. The Governor-General may, by Order in Council made on the recommendation of the Minister, exempt an organisation for the purposes of section 6(4)(i).

  2. The Minister may make a recommendation only if—

  3. the organisation is subject to monitoring and reporting requirements under an enactment; and
    1. in the Minister's opinion, the organisation's accountability under that enactment is of a similar nature and effect to that required of a council-controlled organisation under this Act.

      1. A local authority may, after having taken account of the matters specified in subsection (5), exempt a small organisation that is not a council-controlled trading organisation, for the purposes of section 6(4)(i).

      2. An exemption must be granted by resolution of the local authority.

      3. The matters are—

      4. the nature and scope of the activities provided by the organisation; and
        1. the costs and benefits, if an exemption is granted, to the local authority, the council-controlled organisation, and the community.

          1. A local authority must review an exemption it has granted—

          2. within 3 years after it is granted; and
            1. after the first review, not more than 3 years following the last review under this section.

              1. A local authority may, at any time, revoke an exemption it has granted.

              2. An order under this section is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).

              Notes
              • Section 7(1): amended, on , by section 5(1) of the Local Government Act 2002 Amendment Act 2006 (2006 No 26).
              • Section 7(2): substituted, on , by section 5(2) of the Local Government Act 2002 Amendment Act 2006 (2006 No 26).
              • Section 7(6)(b): replaced, on , by section 5 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).
              • Section 7(8): inserted, on , by section 3 of the Secondary Legislation Act 2021 (2021 No 7).