3Who may propose reorganisation initiative or make investigation request

1. A reorganisation initiative may be proposed, or an investigation request may be made, to the Commission by—

2. 1 or more affected local authorities:
3. a group of at least 10% of electors in the affected area:
4. the Minister.

5. The reorganisation initiative or investigation request must be submitted to the chief executive officer of the Commission.

4Contents of reorganisation initiative or investigation request

1. A reorganisation initiative or an investigation request must include the following:

2. the name and address of the person submitting the initiative or request; and
3. if the initiative or request is submitted by a group of electors under clause 3(1)(b),—
   1. evidence that the group comprises at least 10% of electors in the affected area; and
   2. the name and address of the person who is the representative of those persons; and
4. in the case of an initiative, a description of the proposed changes, including (but not limited to)—
   1. which of the matters listed in section 24(1) is being sought; and
   2. a plan or other description sufficient to identify the affected area or affected areas concerned; and
   3. an explanation of the outcome that the proposed changes are seeking to achieve; and
5. in the case of an investigation request, a description of the matter, issue, problem, or opportunity to be investigated.

6. A reorganisation initiative may include—

7. any information requested or recommended in any guidelines issued by the Commission; and
8. any other information that demonstrates that the initiative has community support in the affected area; and
9. any other information that the person submitting the initiative considers relevant to the Commission’s consideration of the initiative.

5Action on receipt of reorganisation initiative or investigation request

1. As soon as practicable after receiving a reorganisation initiative or an investigation request, the Commission must,—

2. if the initiative or request was submitted by a group of electors, confirm that the group comprises at least 10% of electors in the affected area (and, if not, notify the person who submitted the initiative or request that the Commission will not undertake an investigation); and
3. decide whether to undertake an investigation, having regard to the factors listed in clause 6; and
4. notify the person who submitted the initiative or request, or that person’s representative, of its decision; and
5. if the Commission decides not to undertake an investigation, explain the reasons for that decision in the notice under paragraph (c); and
6. if the Commission decides to undertake an investigation, notify the affected local authorities of that decision.

7. Before making a decision under subclause (1)(b), the Commission must consult the local authorities that would be affected by the reorganisation initiative or the requested investigation.

6Factors Commission must have regard to when deciding whether to undertake reorganisation investigation

1. When deciding whether to undertake a reorganisation investigation under clause 5(1)(b), the Commission must have regard to—

2. the purpose of reorganisation set out in section 24AA; and
3. the potential scale and scope of improvements to local governance and services that might result from the investigation; and
4. the potential costs, disruption, and other negative effects on affected local authorities and their communities that may be caused by the investigation; and
5. any time or other constraints that apply to the opportunity to achieve potential improvements to local governance and services; and
6. the need for urgent resolution of any problem identified by the Commission, or in the investigation request or reorganisation initiative; and
7. the resources available to the Commission to undertake the investigation in a timely manner; and
8. the likelihood of significant community opposition to any reorganisation that might result from the investigation.

7Commission must adopt reorganisation investigation process

1. As soon as practicable after it makes a decision under clause 5(1)(b) to undertake a reorganisation investigation, the Commission must determine and adopt a process for the investigation and record that process in writing.

2. The process document must set out how the Commission intends to undertake the investigation, including—

3. the matters to be investigated; and
4. the affected area and the local authorities affected by the investigation; and
5. the procedure and timetable for the investigation; and
6. each affected iwi or hapū, and how and when they will be given an opportunity to engage with the investigation; and
7. the key stakeholders, and how and when they will be given an opportunity to engage with the investigation; and
8. how and when members of the public will be consulted on the investigation and any proposed recommendations or reorganisation plans that may result; and
9. any other matter that the Commission considers relevant.

10. In determining the matters referred to in subclause (2), and in undertaking an investigation, the Commission must have regard to the following principles:

11. early information should be available to the public and stakeholders about the issues to be investigated, the process to be followed, and the opportunities for public input; and
12. the process should be in proportion to the scale, scope, and potential impact of the identified issues and of any reorganisation plan that may result from the investigation; and
13. the process should recognise the relevant evidence and information that the Commission already holds; and
14. the process should recognise and reflect the nature and extent of the interests of affected iwi or hapū in the outcome of the investigation; and
15. the process should provide persons, entities, and organisations who wish to have their views on the subject matter of the investigation considered by the Commission with a reasonable opportunity to present those views to the Commission; and
16. the extent and nature of public and stakeholder engagement should—
    1. reflect the degree of public interest (including of each affected iwi or hapū) in the issues and in any reorganisation plan that may result from the investigation; and
    2. reflect the importance of—
       1. stakeholder input; and
       2. community engagement; and
       3. public acceptance of the process and the potential outcome; and
    3. appropriately balance the costs and benefits of different processes.

17. Before adopting a process document under subclause (1), the Commission must—

18. consult affected local authorities on the proposed process or amendment; and
19. consult all affected iwi or hapū about whether, and how, the proposed reorganisation investigation, or any reorganisation plan that may result from the investigation, may affect their relationship with their ancestral land, water, sites, wāhi tapu, valued flora and fauna, and other taonga, or affect their relationships with local authorities.

20. The Commission may adopt an amendment to a process document under subclause (1) at any time and must do so if there is a significant departure from the process.

21. The Commission must, as soon as practicable after adopting or amending a process document,—

22. publish the process document in full on its Internet site; and
23. give public notice within the affected area of the publication and location of the process document; and
24. notify the following of the publication and location of the process document:
    1. all affected local authorities; and
    2. affected iwi or hapū; and
    4. key stakeholders identified by the Commission.

8Commission may require assistance and undertake inquiries when conducting investigations and preparing reorganisation plan

1. In conducting an investigation or preparing a reorganisation plan, the Commission may require a local authority that is affected by the investigation or the plan to provide information to assist the Commission.

2. In conducting an investigation or preparing a reorganisation plan, the Commission may undertake inquiries and consultation in relation to the investigation or plan with any persons, bodies, and groups that it considers appropriate.

9Commission may issue report

1. The Commission may, at any time during a reorganisation investigation, or at the completion of the investigation, issue a report and make recommendations to any local authority on any matter arising in the course of, or ancillary to, the investigation.

2. Section 26A applies to a report and recommendations under this clause.

10Objectives that Commission must consider in reorganisation investigation

1. In assessing the desirability of options for the reorganisation of local government within the affected area, the Commission must take into account how best to achieve—

2. better fulfilment of the purpose of local government as specified in section 10; and
3. productivity improvements within the affected local authorities; and
4. efficiencies and cost savings; and
5. assurance that any local authority established or changed has the resources necessary to enable it to effectively perform or exercise its responsibilities, duties, and powers; and
6. effective responses to the opportunities, needs, and circumstances of the affected areas; and
7. enhanced effectiveness, efficiency, and sustainability of local government services; and
8. better support for the ability of local and regional economies to develop and prosper; and
9. enhanced ability of local government to meet the changing needs of communities for governance and services into the future; and
10. effective provision for any co-governance and 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.

11Completion of investigation

1. As soon as practicable after completing an investigation, the Commission must—

2. give public notice of the completion of the investigation; and
3. notify all affected local authorities, affected iwi or hapū, and key stakeholders of the completion of the investigation; and
4. record the completion of the investigation on its Internet site.

12Promotion of good local government (Repealed)

13Procedure after preferred option determined (Repealed)

12Commission may adopt reorganisation plan

1. The Commission may, during or at the completion of a reorganisation investigation,—

2. develop 1 or more reorganisation plans; and
3. adopt 1 or more reorganisation plans that meet the requirements of subpart 1A of this Part.

4. In deciding whether to adopt a reorganisation plan, the Commission must have regard to—

5. the scale of the potential benefits of the proposed changes in terms of the objectives set out in clause 10 and the likelihood of those benefits being realised; and
6. the financial, disruption, and opportunity costs of implementing the proposed changes at the proposed time; and
7. the risks and consequences of not implementing the proposed changes at the proposed time; and
8. existing communities of interest and the extent to which the proposed changes will maintain linkages between communities (including iwi and hapū) and sites and resources of significance to them; and
9. the degree and distribution of demonstrable public support for the proposed changes within communities in the affected area; and
10. the degree and distribution of any public opposition to the proposed changes within communities in the affected area.

12. The Commission must not adopt a reorganisation plan under this clause that affects the application of any Act that establishes co-governance or co-management arrangements between local authorities and iwi or Māori organisations (including Treaty of Waitangi claim settlement legislation), without first consulting all iwi or Māori organisations to whom that Act applies, the Attorney-General, and the Minister for Treaty of Waitangi Negotiations.

13. A reorganisation plan to which subclause (3) applies must provide for the same level and scope of participation in decision making by iwi or Māori organisations as the arrangement specified in the Act referred to in that subclause.

14. Repealed

15. Repealed

13Notification of reorganisation plan

1. As soon as practicable after adopting a reorganisation plan, the Commission must—

2. give public notice of the plan and, in the notice, specify where copies of the plan may be inspected; and
3. take any other action that it considers necessary to inform persons, bodies, and groups that the Commission identifies as having an interest in the plan.

4. The Commission must attach to the reorganisation plan a full and detailed statement that—

5. explains how the plan will achieve the objectives set out in clause 10; and
6. provides a balanced assessment of the reorganisation plan and outlines the advantages and disadvantages of the proposal including, but not limited to, the advantages and disadvantages of—
   1. the creation or alteration of any district or region; and
   2. the exclusion of any remaining area of a district or region affected by the proposal; and
   3. any changes to the responsibilities of each affected local authority; and
   4. any change to how a local government service is managed and provided.

14Content of reorganisation plan

1. Before adopting a reorganisation plan under clause 12, the Commission must ensure that the plan complies with the requirements in this clause.

2. The reorganisation plan must describe, for each affected local authority proposed to be continued,—

3. the type of local authority; and
4. the name of the district or region of the local authority; and
5. the nature and extent of any proposed changes to—
   1. the boundaries of the district or region; and
   2. the representation arrangements of the local authority; and
   3. the extent to which the areas of interest of affected iwi or hapū are included in the district or region; and
   4. in the case of a unitary authority, any local board areas and any local boards of the local authority; and
   5. any communities and any community boards of the local authority; and
   6. the committees of the local authority; and
   7. the statutory obligations of the local authority; and
   8. any constraints imposed on the local authority's exercise of the discretion conferred by section 12(2); and
6. any other matters the Commission considers necessary or desirable.

7. The reorganisation plan must describe, for each local authority proposed to be established,—

8. the type of local authority; and
9. the name of the district or region of the local authority; and
10. the boundaries of the district or region; and
11. the representation arrangements of the local authority; and
12. the names and areas of interest of all affected iwi or hapū; and
13. any local board areas and any local boards of the local authority; and
14. any communities and any community boards of the local authority; and
16. any other matters the Commission considers necessary or desirable.

17. However, the Commission may, if it considers it more appropriate to do so, defer including in a reorganisation plan the representation arrangements or community board arrangements, or both, and include them in the reorganisation implementation scheme.

18. Repealed

19. The reorganisation plan must also—

20. contain information about the role, powers, and composition of the transition body, including—
    1. whether the transition body will include a transition board; and
    2. if a transition board will be included in a transition body, how each affected local authority will be represented on the transition board and whether the transition board will include other persons; and
    3. whether an interim chief executive will be appointed for any local authority under clause 38; and
    4. if an interim chief executive will be appointed, which of the powers listed in clause 39(1) may be exercised by the interim chief executive; and
21. have attached to it a full and detailed explanation of the advantages and disadvantages of the plan and of how it will promote good local government.

15Local boards

1. Before adopting a reorganisation plan under clause 12 that proposes the continuation or constitution of a unitary authority, the Commission must ensure that the plan complies with the requirements in this clause.

2. In preparing the reorganisation plan, the Commission may include provisions for 1 or more local boards if it considers that good local government of the district of the unitary authority would be best promoted by providing for local boards in all or part of the district.

3. Provisions for local boards must be consistent with subpart 1A of Part 4 of this Act.

4. If a reorganisation plan includes provision for local boards, that plan must, in addition to the matters specified in clause 14, specify—

5. the number and names of local board areas within the district; and
6. the boundaries of—
   1. each local board area; and
   2. electoral subdivisions, if any, of each local board area; and
7. the number of elected members of the local board for each local board area and, if a local board area is subdivided for electoral purposes, the number of members to be elected by the electors of each subdivision; and
8. whether each local board may include members appointed by the governing body of the unitary authority in accordance with section 48E(b); and
9. for each local board, whether the chairperson of the local board is to be—
   1. elected by the members of the local board from among themselves using one of the systems of voting set out in clause 25(3) and (4) of Schedule 7; or
   2. directly elected to that office by the electors of the local board area.

10. In determining the matters referred to in subclause (4)(a), (b), (c), or (d), the Commission must ensure that—

11. the boundaries of the local board areas will—
    1. enable democratic local decision making by, and on behalf of, communities throughout the district; and
    2. enable equitable provision to be made for the current and future well-being of all communities within the affected area; and
12. the boundaries of local board areas and any subdivisions of those areas coincide with boundaries of the current statistical meshblock areas determined by Statistics New Zealand and used for parliamentary electoral purposes; and
13. so far as is practicable, local board area boundaries coincide with ward boundaries.

14. Clause 14(4) does not apply to a reorganisation plan under subclause (2).

15. To avoid doubt, clauses 14(3)(g) and 19 do not apply to any local board area included in a reorganisation plan under subclause (2).

16Cities

1. A reorganisation plan may not provide that a territorial authority is to be called a city council unless the district of the territorial authority—

2. has a population of not less than 50 000 persons; and
3. is predominantly urban; and
4. is a distinct entity and a major centre of activity.

17Appropriate boundaries

1. In determining boundaries for a reorganisation plan, the Commission must ensure that,—

2. if practicable, the boundaries of regions conform with catchment boundaries; and
3. if practicable, the boundaries of districts conform with the boundaries of regions; and
4. the boundaries of regions and the boundaries of districts conform with the boundaries of statistical meshblock areas determined by Statistics New Zealand and used for parliamentary electoral purposes.

18Representation

1. In determining the representation arrangements of a local authority for a reorganisation plan or (if clause 14(4) applies) a reorganisation implementation scheme, the Commission must—

2. have regard to the existing electoral and representation arrangements of the affected local authorities; and
3. provide fair and effective representation for individuals and communities of the local authority; and
4. comply with the requirements of the Local Electoral Act 2001; and
5. take into account the responsibilities, duties, and powers of the local authority.

19Communities

1. When preparing a reorganisation plan or (if clause 14(4) applies) a reorganisation implementation scheme, the Commission may consider whether good local government of any affected district would be best promoted by—

2. a system of communities and the responsibilities, duties, and powers of the community boards in the district; or
3. an alternative to an existing system of communities; or
4. a change in the responsibilities, duties, and powers of the community boards in the district.

19ATransfer of functions

1. Before adopting a reorganisation plan under clause 12 that proposes the transfer of a responsibility, duty, power, or discretionary function, the Commission must ensure that the plan complies with the requirements in this clause.

2. Without limiting section 24(1)(e), a reorganisation plan may provide for the transfer of a responsibility, duty, power, or discretionary function—

3. from a regional council to a territorial authority or from a territorial authority to a regional council; or
4. from one regional council to another; or
5. from one territorial authority to another.

6. The transfer of a responsibility, duty, power, or discretionary function may apply in respect of all or part of the region or territory of the transferring regional council or territorial authority.

7. Before adopting a reorganisation plan that provides for the transfer of a responsibility, duty, or power, the Commission must consult the Minister responsible for the enactment that confers the responsibility, duty, or power on the affected local authorities.

8. If a reorganisation plan includes the transfer of a discretionary function, the plan may—

9. prohibit the local authority from which the discretionary function is to be transferred from undertaking any specified activity or incurring expenses for any specified purpose; and
10. require the local authority to which the discretionary function is to be transferred to achieve specified service levels in the provision of that function.

11. If the reorganisation plan includes the transfer of a responsibility, duty, power, or discretionary function to a territorial authority or regional council outside the district or region to which the transferred matter relates, the plan must prescribe the constitution of committees or other governance arrangements that will ensure that—

12. persons and communities in each district or region to which the responsibility, duty, power, or discretionary function relates are represented in decision making that relates to that responsibility, duty, power, or discretionary function; and
13. the territorial authority or regional council is accountable to all persons and communities affected by the performance or exercise of the responsibility, duty, or power, or by the provision of the discretionary function.

19BCommittees and joint committees

1. Before adopting a reorganisation plan under clause 12 that proposes the establishment of 1 or more committees of a local authority, or 1 or more joint committees, the Commission must ensure that the plan complies with the requirements in this clause.

2. The reorganisation plan may provide for the establishment of 1 or more—

3. committees and joint committees that are permanent committees; or
4. committees and joint committees that must not be disestablished before a date specified in the plan.

5. The reorganisation plan may specify—

6. the membership of a committee:
7. the terms of reference of a committee:
8. any delegations to the committee:
9. when and how the matters in paragraphs (a) to (c) may be varied.

10. If the reorganisation plan provides for a joint committee of an affected local authority with 1 or more other local authorities or other public bodies, it may specify—

11. the membership of the joint committee:
12. the terms of reference of the joint committee:
13. any delegations to the joint committee by the affected local authority:
14. when and how the matters in paragraphs (a) to (c) may be varied:
15. any other matter relating to the appointment, operation, or responsibilities of the joint committee.

16. The Commission must not adopt a reorganisation plan that includes provision for a joint committee without first obtaining the written agreement of every public body, other than an affected local authority, that is to be a party to the joint committee.

19CLocal authorities with joint roles

1. This clause applies if a reorganisation plan under clause 12 provides for the performance and exercise by a local authority of both—

2. the responsibilities, duties, and powers of a regional council in respect of a region; and
3. the responsibilities, duties, and powers of a territorial authority in respect of a district that constitutes a part only of that region.

4. Before adopting the reorganisation plan, the Commission must ensure that it prescribes the constitution of committees or other governance arrangements that will ensure that—

5. persons and communities in the region and the district to which the roles relate are represented in the performance or exercise of the responsibilities, duties, and powers of the regional council and the territorial authority respectively; and
6. the bodies performing and exercising the responsibilities, duties, and powers of the regional council and territorial authority respectively are each accountable to all affected persons and communities.

20Consultation on proposal (Repealed)

21Decisions on draft proposals (Repealed)

22Notification of final proposal (Repealed)

22ALocal authorities may develop and adopt reorganisation plan

1. One or more local authorities may develop and adopt a reorganisation plan in accordance with this clause.

2. Except as provided in subclause (3), subparts 1 and 1A of this Part apply to every reorganisation plan developed under subclause (1) as if references to the Commission in those subparts were references to the local authority or local authorities developing the plan.

3. Clause 14(4) does not apply to a reorganisation plan under this clause.

4. A local authority intending to develop a reorganisation plan under this clause must ensure that written notice of that intention is given to the Commission as soon as is reasonably practicable.

22BApplication to Commission

1. One or more local authorities may submit a reorganisation plan adopted under clause 22A to the Commission in accordance with this clause (a local authority-led reorganisation application).

2. The reorganisation plan must be accompanied by—

3. a statement that complies with clause 13(2); and
4. a report from each affected local authority, adopted by that local authority, that records—
   1. that local authority’s unconditional support for the plan; and
   2. the public consultation undertaken by that local authority; and
   3. the themes and outcomes of that consultation.

22CCommission review of local authority-led reorganisation application

1. As soon as practicable after receiving a local authority-led reorganisation application submitted in accordance with clause 22B, the Commission must review that application.

2. The Commission must approve the reorganisation plan to which the local authority-led reorganisation application relates unless—

3. the reorganisation plan is not accompanied by the documentation required by clause 22B; or
4. the Commission considers, on reasonable grounds, that—
   1. the provisions in subparts 1 and 1A of this Part were not complied with in developing the plan, as required by clause 22A(2); or
   2. the plan does not have the support of affected communities.

5. The Commission must not approve the reorganisation plan to which the local authority-led reorganisation application relates if subclause (2)(a) or (b) applies.

6. If the Commission approves a reorganisation plan under this clause,—

7. subparts 2 and 3 of this Part do not apply; and
8. Parts 3 and 4 of this schedule apply as if the plan had been adopted under clause 12.

9. As soon as practicable after the Commission approves a reorganisation plan under this clause,—

10. the Commission must notify each affected local authority of its decision; and
11. the Minister must determine whether to recommend the making of an Order in Council under section 25.

12. If the Commission does not approve a reorganisation plan under this clause, the Commission—

13. must notify each affected local authority of its decision and the reasons for it; and
14. may undertake an investigation into any matter related to the content of the local authority-led reorganisation application.

23Application of this subpart

1. This subpart applies to a reorganisation plan adopted under clause 12 that provides for any of the following matters:

2. the union of districts or regions:
3. the constitution of a new district or region, including the constitution of a new local authority for that district or region:
4. the abolition of a district or region, including the dissolution or abolition of the local authority for that district or region:
5. the assumption by a territorial authority of the powers of a regional council as a unitary authority:
6. the transfer from one local authority to another of—
   1. responsibilities, duties, and powers in relation to water services or transport services; or
   2. responsibilities, duties, and powers under the Resource Management Act 1991.

7. Despite subclause (1)(e), this subpart does not apply to a transfer of responsibilities, duties, and powers described in that subclause if the Commission is satisfied, on reasonable grounds, that the transfer—

8. is not a major transfer; or
9. has the support of all affected local authorities.

10. For the purposes of subclause (2), a transfer of responsibilities, duties, and powers is a major transfer if the responsibilities, duties, or powers to be transferred—

11. represent 50% or more of the transferring local authority’s operational expenditure, or assets, or staff, in respect of water services, transport services, or resource management functions (as the case may be); or
12. include responsibility for preparing a policy statement, plan, variation, or plan change under the Resource Management Act 1991.

24Petition to require poll (Repealed)

25Poll to be held

1. A poll of electors on the reorganisation plan must be held in the affected area.

2. Except as otherwise provided in this Part, a poll under this clause must be held under the Local Electoral Act 2001 and the provisions of that Act apply, with any necessary modifications, to the conduct of the poll.

3. The Commission must ensure that 1 electoral officer is designated to conduct the poll and to declare the official result of the poll under clause 27.

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

26Timing of poll

1. A poll required by clause 25 must be held on a date determined by the Commission in accordance with this clause.

2. In determining the date on which a poll is to be held, the Commission must consult the electoral officer required to conduct the poll.

3. The Commission must, as soon as practicable after complying with subclause (2), give written notice of the date determined under subclause (1) to the Secretary, to the chief executive of each affected local authority, and to the electoral officer required to conduct the poll.

4. The electoral officer who receives written notification under subclause (3) must, within 7 days after receiving the notification, give public notice of—

5. the poll; and
6. the place or places at which the reorganisation plan and the explanatory statement may be inspected.

7. The date determined under subclause (1) for the conduct of the poll must,—

8. if written notice under subclause (3) is to be given on or after 28 September and before 21 November in any year, be a day not earlier than 17 February and not later than 24 February in the following year; and
9. if written notice under subclause (3) is to be given on or after 21 November and before 16 December in any year, be a day not earlier than 14 March and not later than 21 March in the following year; and
10. if written notice under subclause (3) is to be given on or after 16 December in any year and before 13 January in the following year, be a day not earlier than 11 April and not later than 18 April in that following year; and
11. in any other case, be a day not later than 89 days after the day on which written notice under subclause (3) is given to the electoral officer.

27Official result of poll

1. The electoral officer must,—

2. when declaring the official result of the poll under section 86 of the Local Electoral Act 2001, include a statement of—
   1. the total number of electors on the roll or rolls compiled for the purpose of the poll; and
   2. the total number of valid votes cast:
3. as soon as practicable after declaring the result, notify the Secretary, the chief executive of each affected local authority, and the Commission of the result.

28Fate of reorganisation plan after poll

1. If more than 50% of the valid votes cast in the poll are for a reorganisation plan then clause 41 applies.

2. In every other case, the reorganisation plan must not proceed.

29Interpretation

1. In this subpart, unless the context otherwise requires,—

   advertising means advertising in any medium

   publish, in relation to advertising,—

   1. means to bring to the notice of a person in any manner, including (but not limited to)—
      1. displaying in any medium:
      2. distributing by any means:
      3. delivering to an address:
      4. leaving at a place:
      5. sending by post or otherwise:
      6. printing in a newspaper or other periodical:
      7. broadcasting by any means:
      8. disseminating by means of the Internet or any other electronic medium:
      9. storing electronically in a way that is accessible to the public:
      10. incorporating in a device for use with a computer:
      11. inserting in a film or video; but
   2. excludes addressing 1 or more persons face to face

   specified period means the period commencing on the day after the date on which public notice of the plan is first given under clause 13 and ending with the close of the day on which the poll is held.

30Advertising in relation to polls

1. A local authority affected by a reorganisation plan may not, at any time in a specified period, do anything (including publishing any advertising) that—

2. involves the expenditure of the authority's money or use of the authority's resources; and
3. promotes or opposes the implementation of the reorganisation plan or a provision of the reorganisation plan.

4. This clause does not apply to—

5. any investigations or research undertaken by, or on behalf of, the local authority that relate to the reorganisation plan or its effects; or
6. the making of submissions or other representations to the Commission by the local authority; or
7. the publication of any news or comment relating to the reorganisation plan or the poll in any medium by any person other than the local authority; or
8. anything done to comply with the requirements of Part 7 of the Local Government Official Information and Meetings Act 1987.

31Provision of referential information

1. Clause 30 does not preclude a local authority affected by a reorganisation plan from publishing material that—

2. does not expressly or impliedly promote or oppose the reorganisation plan; but
3. contains factual or referential material presented—
   1. in a balanced way; and
   2. to assist electors considering voting in a poll to make a better-informed decision.

4. A local authority may (but does not have to) seek a ruling from the Commission that material proposed to be published by the local authority under subclause (1) complies with that subsection.

5. If the Commission provides a ruling that the material complies with subclause (1), then publication of the material by the local authority is to be treated as published in accordance with subclause (1).

32Authorisation of advertising

1. A person may not publish advertising that promotes or opposes the implementation of the reorganisation plan or a provision of the reorganisation plan unless the advertising contains a statement setting out the name and address of the person who initiated or instigated the publication of the advertising.

2. In subclause (1), address means,—

3. in relation to an individual,—
   1. the full street address of the place where the individual usually lives; or
   2. the full street address of any other place where the individual can usually be contacted between the hours of 9 am and 5 pm on any working day:
4. in relation to a body corporate or unincorporated,—
   1. the full street address of the body's principal place of business; or
   2. the full street address of the body's head office.

41Preparation of reorganisation implementation scheme

1. This clause applies in relation to a reorganisation plan that is given effect to by an Order in Council under section 25(1).

2. The Commission must prepare and issue a reorganisation implementation scheme that—

3. sets out the detail of the reorganisation described in the reorganisation plan and describes how it is to be implemented; and
4. is consistent with the reorganisation plan, this Act, and any other enactment; and
5. promotes good local government in a way that meets the needs and preferences of affected communities.

6. In preparing a reorganisation implementation scheme, the Commission—

7. must consult the Secretary; and
8. may consult or make inquiries of any other persons, bodies, or groups that it thinks fit.

9. The Commission may delegate, wholly or in part, to a transition body the responsibility for preparing a reorganisation implementation scheme, but the Commission retains responsibility for ensuring, before the Commission issues it, that the reorganisation implementation scheme complies with subclause (2)(a) to (c).

42Provisions for inclusion in reorganisation implementation scheme

1. In preparing a reorganisation implementation scheme, the Commission—

2. must set out again the matters specified in clause 14(2) and (3); and
3. must include the provisions that are necessary to give effect to the scheme and, in particular, must include—
   1. the provisions specified in clause 43 that are considered necessary or desirable as a consequence of the scheme; and
   2. any provisions considered necessary for—
      1. the purposes of the district or region of an affected local authority; or
      2. the discharge of the responsibilities of an affected local authority; or
      3. any other matter that is necessary or desirable to give effect to the provisions; and
4. may provide that 1 or more of the provisions of clauses 45 and 46—
   1. apply to the scheme with modifications; or
   2. do not apply; and
5. may provide for—
   1. the application, with the modifications that may be necessary or desirable, of any provisions of any Act for the time being in force that are considered appropriate to the particular matter; and
   2. without limiting subparagraph (i), the exercise—
      1. by a territorial authority of any statutory obligation conferred on regional councils by any Act; or
      2. by a regional council of any statutory obligation conferred on territorial authorities by any Act; and
6. may make provision for any arrangements the Commission considers necessary or desirable for the purposes of the reorganisation; and
7. may incorporate any other matters that it considers necessary or appropriate to give effect to the reorganisation plan.

8. If the Commission has, under clause 14(4), deferred including representation arrangements or community board arrangements, or both, in a reorganisation plan, the Commission must include the representation arrangements or community board arrangements, or both, in the reorganisation implementation scheme.

42AContent of reorganisation implementation scheme in respect of local boards

1. Without limiting clause 42, a reorganisation implementation scheme in respect of a reorganisation plan to which clause 15(2) applies—

2. must make, in accordance with section 48L, an initial allocation between the unitary authority’s governing body and the local board of decision-making responsibility for the non-regulatory activities of the unitary authority within each local board area; and
3. may specify delegations to any local board in accordance with clause 36C of Schedule 7.

43Provisions to be included if necessary or desirable

1. If considered necessary or desirable, the following provisions may be included in a reorganisation implementation scheme:

2. provisions necessary for the first or any election or appointment of members of a local authority or community board affected by the scheme:
3. provisions that are necessary for the effective transition and future carrying out of responsibilities, duties, powers, or discretionary functions that are to be transferred—
   1. from one local authority to another local authority; or
   2. from 1 or more local authorities to a joint committee; or
   3. from a joint committee to 1 or more local authorities:
4. provisions dealing with the requirements and application of long-term plans, annual plans, and annual reports as provided for under this enactment:
5. provisions dealing with the requirements in any enactment that relate to plans, programmes, and strategies, including (but not limited to) regional land transport programmes and regional land transport strategies under the Land Transport Management Act 2003:
6. provisions dealing with—
   1. the administration of an existing, proposed, or operative district plan or regional plan under the Resource Management Act 1991:
   2. the administration of any designations, resource consents, and notices of requirement under the Resource Management Act 1991, but subject to sections 81 to 180 of that Act:
7. if an area is included in the district of another territorial authority, provisions that the civil defence emergency management group plan for the district in which the area is included applies to the area so included and is the only operative local civil defence plan to apply in that area:
8. if a new district or region is constituted, provisions that every civil defence emergency management group plan that is in force in respect of any area included in that district or region continues in force until a new plan is prepared and approved for the district under the Civil Defence Emergency Management Act 2002:
9. provisions requiring the establishment, by 1 or more affected local authorities, of a council-controlled organisation, which may specify—
   1. the initial constitution of the council-controlled organisation; and
   2. the objectives and responsibilities of the council-controlled organisation; and
   3. the nature and content of any agreement under section 17A required between the council-controlled organisation and any affected local authority; and
   4. any other matter relating to the establishment of the council-controlled organisation that the Commission considers desirable:
10. provisions for committees for the first term of an affected local authority, which may specify—
    1. the initial membership of a committee; and
    2. the terms of reference of a committee; and
    3. any initial delegations to a committee:
11. provisions for a joint committee of an affected local authority, with 1 or more other local authorities or other public bodies, which may specify—
    1. the initial membership of the committee; and
    2. the terms of reference of the committee; and
    3. any initial delegations to the committee by the affected local authority; and
    4. any other matter relating to the appointment, operation, or responsibilities of the joint committee that the Commission considers desirable:
12. provisions dealing with the apportionment or disposition of the assets and liabilities of all or any of the local authorities affected by the scheme, which provisions may include the date on which any of the apportionment or disposition takes place or may be treated as having taken place:
13. provisions dealing with the transfer, in accordance with clause 49, of employees of the local authorities affected by the scheme:
14. provisions concerning rating in a new district or region, or enlarged district or region, which may—
    1. specify the date by which a single integrated rating system must be adopted in the district or region; and
    2. specify the valuation system for any general rate forming part of the initial integrated rating system; and
    3. specify the basis on which rates may be set and assessed within the district or region between the date the order takes effect and the date specified under subparagraph (i), which may include the use of different rating systems for specified rates, or for specified rates in different parts of the district or region; and
    4. make such other provision for the transition to, or implementation of, the single integrated rating system as the Commission considers desirable:
15. if a district or region is abolished and the whole or any part of it is included in the district or region of another local authority, provisions for the representation of the district or region being abolished or part of it on the other local authority until the next triennial general election of members of the other local authority.

16. The Commission must not include provision for a joint committee in a reorganisation implementation scheme without the written agreement of—

17. every local authority, other than an affected local authority, that is to be a party to the joint committee; and
18. every other public body that is to be a party to the joint committee.

44Application

1. This subpart applies—

2. in relation to a reorganisation on and from the implementation date; and
3. to the extent that the matters in this subpart have not already been provided for in an Order in Council made under section 25(1) giving effect to a reorganisation plan.

4. Repealed

45Provisions that apply to reorganisation unless modified or excluded

1. The following provisions apply to a reorganisation unless amended by a reorganisation order or declared by a reorganisation order not to apply:

2. the local authority that assumes, under the scheme, jurisdiction over an area formerly comprising or forming part of a separate district or region, or that takes over the responsibilities of a local authority, has, and may exercise, and is responsible for,—
   1. all the powers, duties, acts of authority, and responsibilities that were previously exercised by the former local authority, or that would have been exercised by it if it had remained in existence or in control of that area:
   2. all the liabilities, obligations, engagements, and contracts that were previously the responsibility of the former local authority, or that would have been its responsibility if it had remained in existence or in control of that area:
   3. all the actions, suits, and proceedings pending by or against the former local authority, or that would have been its responsibility if it had remained in existence or in control of that area:
3. the responsibilities, duties, and powers of the mayor, chairperson, and chief executive of the former local authority must be exercised by the mayor, chairperson, and chief executive of its successor:
4. all real and personal property vested in an abolished local authority vests in its successor, subject to all existing encumbrances:
5. a local authority that assumes jurisdiction over an area that was formerly part of a separate district or region has, subject to all existing encumbrances, vested in it all the land situated in that area that was vested in the local authority that formerly had jurisdiction over that area:
6. all rates or levies and other money payable in respect of an abolished local authority, or of an area of land included in the district or region of another local authority, are due and payable to the new local authority:
7. if the area of an abolished district or region comprises part only of another district or region,—
   1. any money to the credit of the abolished local authority's accounts must, after all liabilities have been provided for, be expended to the benefit of the residents of that area; and
   2. any money required to be paid into the accounts of the abolished local authority to meet any deficiency must be raised within the area of the abolished local authority:
8. the rights or interests of creditors of a district or region are not affected:
9. the valuation rolls, electoral rolls, and rate records in force in the district or region of an abolished local authority, or in relation to any part of the district or region of a local authority included in the district or region of another local authority, continue in force in the district or region of the new controlling local authority until those rolls or records are made by that local authority, and, until that time, the Local Government (Rating) Act 2002 applies:
10. except in the circumstances specified in clause 1, 2, 4, or 5 of Schedule 7, if part of a district or region is excluded from that district or region and included in another district or region, the members of the local authority of the first-mentioned district or region continue to be members of that district or region as if that part had not been excluded from the district or region.

46Bylaws

1. The provisions of this clause apply unless amended by a reorganisation order or declared by the reorganisation order not to apply.

2. Subclauses (3) to (8) apply to bylaws if—

3. they are in force in all or part of a district or region that, under a reorganisation order, is included in the jurisdiction of a local authority other than the local authority that made them; and
4. they are in force immediately before the implementation date; and
5. they are not excluded from the application of this clause by the reorganisation order.

6. On and from the implementation date, the bylaws are deemed to have been made by the local authority assuming jurisdiction of the area.

7. Each bylaw must be reviewed by the local authority assuming jurisdiction over the area at the time and in accordance with the requirements of any enactment under which it was made, or last reviewed, by the authority that made it.

8. Each bylaw remains in force, in the area to which it applied immediately before the commencement of the reorganisation order, for a period of 5 years, and is then revoked, unless before that period ends—

9. the local authority assuming jurisdiction of the area confirms the bylaw, in which case the confirmed bylaw becomes a bylaw made by that local authority and remains in force until it expires or is revoked; or
10. the local authority assuming jurisdiction of the area amends the bylaw, in which case the bylaw as amended becomes a bylaw made by that local authority and remains in force until it expires or is revoked; or
11. the local authority assuming jurisdiction of the area revokes the bylaw.

12. The local authority assuming jurisdiction of the area must use the special consultative procedure before confirming, amending, or revoking a bylaw under subclause (5)(a), (b), or (c).

13. If section 159 applies to a bylaw confirmed or amended under this clause, for the purposes of that section the date of the confirmation or amendment of the bylaw must be treated as if it were the date of the last review of the bylaw.

14. In this clause, bylaw includes—

15. a set of bylaws; and
16. an individual bylaw in a set of bylaws; and
17. a provision within an individual bylaw.

47No compensation payable if responsibility transferred

1. If provision is made in a reorganisation order for a responsibility, duty, power, or discretionary function to be transferred to, or assumed by, a local authority or joint committee, provision may not be made for the payment of compensation to the local authority from which that responsibility, duty, power, or discretionary function is transferred or assumed.

2. This clause applies subject to clauses 48 and 53.

48Payment if trading undertaking transferred

1. If a reorganisation order provides for the transfer of a trading undertaking from a local authority (the transferor) to any other local authority (the transferee), the transferor may request the Commission to determine whether any payment for the transfer of the trading undertaking should be made by the transferee to the transferor and, if so, the amount of the payment.

2. The Commission may, in considering a request under subclause (1), require the local authorities to each appoint an independent person as an assessor to report to the Commission on whether any payment should be made.

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

4. The Commission may make a determination under this clause subject to any conditions that it considers desirable.

49Employees

1. This clause applies where—

2. a local authority (local authority A) ceases to exist under a reorganisation and its district or region is included in the district or region of another local authority (local authority B); or
3. a reorganisation implementation scheme provides, under clause 43(j) for the transfer of employees from a local authority (local authority A) to another local authority (local authority B).

4. On and from the implementation date, a person who was, immediately before that date, an employee of local authority A becomes an employee of local authority B.

5. For the purposes of every enactment law, award, determination, contract, and agreement relating to the employment of the person,—

6. his or her employment agreement is unbroken; and
7. the period of his or her service with local authority A is to be treated as a period of service with local authority B.

8. The terms and conditions of employment of the person with local authority B are—

9. identical to the terms and conditions of his or her employment with local authority A immediately before the implementation date; and
10. capable of variation in the same manner.

11. The person is not entitled to receive any payment or other benefit because he or she has, under this Act, ceased to be an employee of local authority A and become an employee of local authority B.

50KiwiSaver Act 2006 does not apply to transferred employee

1. The transfer of an employee's employment under clause 49 does not constitute new employment for the purposes of the KiwiSaver Act 2006.

51Certain matters not affected by transfer of responsibilities, duties, or powers

1. A reorganisation order does not—

2. place a local authority or other person in breach of contract or confidence or otherwise make the local authority or other person guilty of a civil wrong; or
3. give rise to a right for a person to terminate or cancel any contract or arrangement, or to accelerate the performance of an obligation; or
4. place a local authority or other person in breach of any enactment or rule of law or contractual provision prohibiting, restricting, or regulating the assignment or transfer of property or the disclosure of information; or
5. release a surety wholly or in part from an obligation; or
6. invalidate or discharge a contract or security.

52Registers

1. The Registrar-General of Land or other person charged with the keeping of books or registers is not required solely by reason of a reorganisation order to change the name of the transferor to that of the transferee in those books or registers or other documents.

2. The presentation to the Registrar-General of Land or other person of an instrument, whether or not comprising an instrument of transfer by the transferee, is, in the absence of proof to the contrary, sufficient evidence that the property is vested in the transferee if the instrument—

3. is executed, or purports to be executed, by the transferee; and
4. is related to property held by the transferor; and
5. contains a recital that the property has become vested in the transferee by virtue of a reorganisation order made under this Act.

53Apportionment of assets and liabilities

1. If a reorganisation order does not make provision for the apportionment of the assets and liabilities of the local authorities affected by the order, the local authorities may, by agreement, determine the manner in which those assets and liabilities must be apportioned.

2. If an agreement is not entered into by the local authorities concerned within 3 months after the date of the coming into force of the reorganisation order, a local authority directly affected may apply to the Commission for an order apportioning assets and liabilities, and the Commission must make an order directing the manner in which assets and liabilities must be apportioned among the local authorities concerned.

3. For the purpose of deciding an application to the Commission under subclause (2), the Commission—

4. must consult the Auditor-General and the local authorities directly affected; and
5. may make the inquiries that it thinks fit; and
6. may obtain advice from any other person who, in the opinion of the Commission, has expert knowledge concerning any aspect of the matter to be decided.

7. In the exercise of its powers under subclause (2), the Commission may identify the assets and liabilities to be transferred, and assets and liabilities to be transferred must include all amounts and items that properly ought to be treated as being of the same character, irrespective of how they may be described in the accounts or records of any local authority.

8. An order of the Commission under subclause (2) may be enforced as if it were an agreement between the local authorities concerned.

9. For the purposes of the Income Tax Act 2007, the Goods and Services Tax Act 1985, and the Accident Compensation Act 2001, a local authority constituted under a reorganisation order is deemed to be the same local authority as each of the local authorities whose district, region, or functions are wholly transferred to that local authority.

54Apportionment of fuel tax revenue

1. Despite Part 11 of the Local Government Act 1974, the local authorities established or affected by a reorganisation order may, by agreement, determine that the proceeds of fuel tax levied under that Part are to be distributed among them other than in accordance with that Part.

2. If agreement under subclause (1) cannot be reached within 3 months after the date on which the reorganisation order comes into force, any of those local authorities may apply to the Commission for an order determining the matter in accordance with clause 53(2) to (5).

3. An agreement under subclause (1), or an order under subclause (2), applies only to the end of the first financial year that commences after the date on which the reorganisation order comes into force.

55Application

1. This subpart applies for the purposes of the Inland Revenue Acts when, in a reorganisation described in section 24 of this Act,—

2. the assets and liabilities of a terminating entity (the transferring entity) become the assets and liabilities of a receiving entity (the receiving entity):
3. some or all of the assets and liabilities of a continuing entity (the transferring entity) become the assets and liabilities of another entity (the receiving entity):
4. the voting interests and market value interests of a notional single person in a local authority (the transferring entity) become the voting interests and market value interests of a notional single person in another entity (the receiving entity).

5. In this clause and in clauses 56 to 61,—

   date of transfer means the date on which assets and liabilities, or voting interests and market value interests, of a transferring entity become assets and liabilities, or voting interests and market value interests, of a receiving entity

   Inland Revenue Acts has the meaning given by section 3(1) of the Tax Administration Act 1994

   transfer means a method of conveying assets and liabilities, or voting interests and market value interests, to a receiving entity so that the assets and liabilities, or voting interests and market value interests, that the transferring entity has before the date on which the conveyance takes place become the assets and liabilities, or voting interests and market value interests, of the receiving entity on and after that date.

6. In this subpart, terms defined in the Inland Revenue Acts have the meanings given by those Acts.

7. If there is a conflict between a provision of this subpart and clause 6 of Schedule 9, the provision in this subpart prevails.

56General treatment

1. For tax purposes, and in relation to a transfer,—

2. a receiving entity is treated from the date of transfer as the same person as the transferring entity:
3. a thing done by a transferring entity before the date of transfer is treated as done by the receiving entity on the date on which it was done by the transferring entity:
4. a receiving entity is treated as having held the voting interests and market value interests without interruption from the date on which the transferring entity acquired them.

57Income and expenditure

1. An amount of income derived or expenditure incurred by a transferring entity before the date of transfer does not become income or expenditure of the receiving entity merely because the assets and liabilities of the transferring entity have become the assets and liabilities of the receiving entity.

58Holding companies

1. When an asset other than shares of a transferring entity becomes the asset of a receiving entity, the difference between the market value of the asset and any attributed liability is available subscribed capital of the receiving entity.

2. An amount arising from a sale or transfer of shares of a transferring entity is not assessable income of the receiving entity when—

3. the shares have become the asset of the receiving entity through a reorganisation under section 24; and
4. the receiving entity—
   1. sells the shares and distributes the proceeds to or through a holding company of the entity; or
   2. transfers the shares to a holding company of the entity.

59Valuation of assets

1. For an asset that is a financial arrangement, trading stock, or revenue account property, the value is established as follows:

2. if income derived from the asset is exempt income of a transferring entity and is not exempt income of a receiving entity, the receiving entity is treated as having acquired the asset on the date of transfer at its market value on that date:
3. if income derived from the asset is not exempt income of a transferring entity and is exempt income of a receiving entity, the transferring entity is treated as having disposed of the asset on the date of transfer at its market value on that date.

4. For an asset that is an item of depreciable property, the value is established as follows:

5. if income derived from the asset is exempt income of a transferring entity and is not exempt income of a receiving entity, the receiving entity is treated as having acquired the property on the date of transfer at its accounting carrying value on that date:
6. if income derived from the asset is not exempt income of a transferring entity and is exempt income of a receiving entity, the transferring entity is treated as having disposed of the property on the date of transfer at its adjusted tax value on that date.

60Apportionment on transfers to multiple receiving entities

1. This clause applies when the assets and liabilities of, or interests in, a transferring entity are transferred to more than 1 receiving entity. For these purposes, a transferring entity that continues in existence after the date of the transfer is treated as a receiving entity.

2. A tax loss, loss balance, or credit in a memorandum account of the transferring entity is apportioned among the receiving entities on the basis of the percentage of assets or interests, as applicable, that are transferred to each receiving entity, measured on the date of transfer.

3. In relation to the grouping of tax losses and credits, the tax loss, loss balance, or credit is treated as arising on the date of transfer.

61Goods and services tax

1. When the assets and liabilities of a transferring entity become the assets and liabilities of a receiving entity, the transfer is treated as a taxable supply of the assets and liabilities that is charged with tax at the rate of 0%.

2. For the purposes of calculating the amount of output tax to be charged or input tax deductible on the date of transfer, the transferring entity and receiving entity are treated for the period up to the date of transfer as if they were the same person.

3. If, in relation to a supply of the assets and liabilities of a transferring entity, it is necessary for a tax invoice, credit note, or debit note to be issued before the date of transfer by or to the transferring entity, the invoice or note may be issued by or to a receiving entity. For this purpose, the transferring entity and the receiving entity are treated as if they were the same person in relation to any requirement that the transferring entity holds, has previously been issued with, or has issued to a person an invoice or note for the supply.

4. If, in relation to a supply of the assets and liabilities of a transferring entity, a document purporting to be a tax invoice, credit note, or debit note is issued by or to a transferring entity in relation to a supply made by or to a receiving entity on or after the date of transfer, the document is treated as if it were a tax invoice, credit note, or debit note, as applicable, that is issued by or to the receiving entity.

62Associated persons

1. A person is not associated with another person for the purposes of sections CB 6A to CB 15 of the Income Tax Act 2007 merely through the application of this subpart.