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Local Government Act 1974

Divestment of land drainage schemes and water race schemes - Implementation of transfer plan

517Z: Transfer by local authority of scheme assets and scheme liabilities

You could also call this:

"When a council gives a land scheme to someone else, they also give them the scheme's belongings and responsibilities."

Illustration for Local Government Act 1974

When a local authority decides to transfer a land drainage scheme or water race scheme, you need to know what happens next. The local authority must transfer the scheme assets and scheme liabilities to the person or group getting the scheme on the transfer day. This means they give them the things that belong to the scheme, like equipment and land, and also the responsibilities that come with the scheme.

If the scheme is transferred, the local authority might still collect money from the land on behalf of the people using the scheme. In this case, the local authority can take out the costs of collecting the money from the total amount. You can find more information about how this works under section 517Q or section 517X.

Sometimes, the person or group getting the scheme might get special rights to use the land, like leases or permits. They might also be able to apply to be a requiring authority under the Resource Management Act 1991, which means they can make decisions about how the land is used. If they apply, they are considered a requiring authority until their application is decided or until two years have passed, whichever happens first.

The local authority can transfer scheme assets, like equipment, even if they are attached to the land or under it. In this case, the asset and the land are considered separate things that can be owned by different people. Any scheme asset or liability can be transferred, even if other laws or agreements say it can't be.

When a transfer happens, the person in charge of keeping track of the transfers must register it as soon as they get written notice from the local authority.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM421588.

Topics:
Government and voting > Local councilsHousing and property > Land use
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"Council must hand over control of water schemes to users or trustees when asked."

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517ZA: Further provisions relating to transfer of scheme assets and scheme liabilities, or

"Rules about transferring assets and debts to a scheme owner"

Part 29ADivestment of land drainage schemes and water race schemes
Implementation of transfer plan

517ZTransfer by local authority of scheme assets and scheme liabilities

  1. Notwithstanding any Act, rule of law, or agreement, where a transfer proposal becomes a transfer plan under section 517Q or section 517X and that plan is to be given effect to by the transfer of a land drainage scheme or water race scheme, the local authority must on the transfer day—

  2. transfer to the person or group of persons to whom the scheme is transferred, the scheme assets and scheme liabilities; and
    1. vest in the person or group of persons to whom the scheme is transferred any rights conferred by designations under district plans applying to any land transferred pursuant to this Part; and
      1. grant to the person or group of persons to whom the scheme is transferred leases, easements, permits, consents, or rights of any kind in respect of any scheme assets or scheme liabilities as provided for by the transfer proposal, the amended transfer proposal, or the Commission's determination, as the case may be.

        1. Where a local authority continues, on behalf of scheme users, to collect revenue from land vested in the local authority in trust or as an endowment for the purposes of or in relation to a land drainage scheme or water race scheme transferred under this Part, the local authority is entitled to deduct from such revenue all reasonable costs and expenses incurred in the collection of such revenue.

        2. Where any designation is, under subsection (1)(b) vested in a person or group of persons, that person or group of persons may, within the period of 2 years beginning on the transfer day, apply under section 167 of the Resource Management Act 1991 for approval as a requiring authority and is, until that application is disposed of or until that period of 2 years expires, whichever is the sooner, deemed to be a requiring authority within the meaning of that Act.

        3. Scheme assets that are fixed to, or are under or over, any land may be transferred under this Part, whether or not any interest in the land is also transferred. Where any such asset is so transferred, the asset and the land are to be regarded as separate assets each capable of separate ownership.

        4. Any scheme asset or scheme liability may be transferred under this Part, whether or not any Act or agreement relating to the asset or liability permits such transfer or requires any consent to such a transfer.

        5. Where a transfer takes place pursuant to this section and the transfer is registrable, the person responsible for keeping the register must register the transfer forthwith after written notice of the transfer is received by him or her from any person authorised for that purpose by the local authority.

        Notes
        • Section 517Z: inserted, on , by section 11 of the Local Government Amendment Act (No 5) 1999 (1999 No 125).
        • Section 517Z(1)(b): amended, on , by section 6 of the Resource Management (Natural and Built Environment and Spatial Planning Repeal and Interim Fast-track Consenting) Act 2023 (2023 No 68).
        • Section 517Z(3): amended, on , by section 6 of the Resource Management (Natural and Built Environment and Spatial Planning Repeal and Interim Fast-track Consenting) Act 2023 (2023 No 68).