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New South Wales
ocal Government Amendment (Early
Intervention) Bill 2013
Contents
Page
1 Name of Act 2
2 Commencement 2
Schedule 1 Amendment of Local Government Act 1993 No 30 3
Schedule 2 Amendment of other legislation 26
b2012-121-40.d10
New South Wales
ocal Government Amendment (Early
Intervention) Bill 2013
No , 2013
A Bill for
An Act to amend the Local Government Act 1993 to improve the performance and
accountability of councils; and for related purposes.
Clause 1 Local Government Amendment (Early Intervention) Bill 2013
The Legislature of New South Wales enacts: 1
1 Name of Act 2
This Act is the Local Government Amendment (Early Intervention) 3
Act 2013. 4
2 Commencement 5
This Act commences on the date of assent to this Act, or on the date of 6
commencement of the Local Government Amendment (Conduct) Act 7
2012, whichever is the later. 8
Page 2
Local Government Amendment (Early Intervention) Bill 2013
Amendment of Local Government Act 1993 No 30 Schedule 1
Schedule 1 Amendment of Local Government Act 1
1993 No 30 2
[1] Section 66 Appointment of administrator 3
Insert "(the appointing Minister)" before "may" in section 66 (1). 4
[2] Section 66 (1A) 5
Insert after section 66 (1): 6
(1A) If more than one administrator is appointed, each administrator 7
has the functions of the council specified in the instrument of 8
appointment. 9
[3] Section 66 (3) 10
Omit "section 740". Insert instead "Part 8 of Chapter 13". 11
[4] Section 66 (4) 12
Omit the subsection. Insert instead: 13
(4) An administrator is to be paid a salary determined by the 14
appointing Minister, with the concurrence of the Minister for 15
Local Government, from the council's funds. 16
[5] Section 66 (5A) 17
Insert after section 66 (5): 18
(5A) If more than one administrator is appointed for a council, the 19
appointing Minister may give directions for the purpose of 20
resolving any issues that arise as a result of there being more than 21
one administrator. 22
[6] Section 234 When does a vacancy occur in a civic office? (as amended 23
by the Local Government Amendment (Conduct) Act 2012) 24
Omit "under section 440I, 482 or 482A" from section 234 (1) (d). 25
Insert instead "under this Act or because the council has been suspended under 26
this Act". 27
[7] Section 248A Annual fees or other remuneration not to be paid during 28
period of suspension 29
Insert "or any expenses," before "to which a councillor". 30
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Local Government Amendment (Early Intervention) Bill 2013
Schedule 1 Amendment of Local Government Act 1993 No 30
[8] Section 248A (b) 1
Omit "any fee or other remuneration". 2
Insert instead "any such fee or other remuneration, or expense," 3
[9] Section 255 Governor may dismiss mayor and councillors 4
Omit "after considering the results of the inquiry," from section 255 (1) (b). 5
[10] Section 255 (1A) 6
Insert after section 255 (1): 7
(1A) The Minister may recommend that the Governor make such a 8
declaration only: 9
(a) after considering the results of the public inquiry, or 10
(b) if the Minister decides to issue a performance 11
improvement order to the council in response to the results 12
of the public inquiry--after issuing the order and 13
considering whether the council has complied with the 14
order. 15
[11] Section 255 (4) 16
Insert after section 255 (3): 17
(4) For the purposes of this Act, a council is dismissed if the 18
Governor declares all civic offices in relation to the council to be 19
vacant. 20
[12] Section 256 Governor may appoint administrator or order fresh election 21
Insert after section 256 (1): 22
(1A) More than one administrator may be appointed (with the same or 23
different functions). 24
[13] Section 257 Declaration of council as non-functioning 25
Omit "under section 255" from section 257 (1). 26
[14] Section 258 Administrator 27
Omit "When the administrator of a council takes office" from section 258 (1). 28
Insert instead "When an administrator of a council appointed under this 29
Division takes office". 30
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Local Government Amendment (Early Intervention) Bill 2013
Amendment of Local Government Act 1993 No 30 Schedule 1
[15] Section 258 (1A) 1
Insert after section 258 (1): 2
(1A) If more than one administrator is appointed, each administrator 3
has the functions of the council specified in the instrument of 4
appointment. 5
[16] Section 258 (2) and (4) 6
Omit "The administrator" wherever occurring. 7
Insert instead "An administrator". 8
[17] Section 258 (2A) 9
Insert after section 258 (2): 10
(2A) If more than one administrator is appointed for a council, the 11
Minister may give directions for the purpose of resolving any 12
issues that arise as a result of there being more than one 13
administrator. 14
[18] Section 258 (3) 15
Omit "the administrator's". Insert instead "an administrator's". 16
[19] Section 277 May the holder of a civic office be re-elected? 17
Insert at the end of the section: 18
(2) The holder of a civic office is not disqualified from being 19
re-elected merely because the holder, or the council, is suspended 20
under this Act. 21
[20] Section 287 When is an ordinary election of councillors held? 22
Omit section 287 (2) (b). Insert instead: 23
(b) the council for the area is dismissed, or 24
[21] Section 290 When is an election of a mayor by the councillors to be held? 25
Insert at the end of the section (after the note): 26
Note. Elections are not held while a council is suspended under Part 7 27
or 8 of Chapter 13. 28
[22] Section 368 What is the quorum for a meeting? 29
Insert at the end of the section: 30
(2) This section does not apply if the quorum is required to be 31
determined in accordance with directions of the Minister in a 32
performance improvement order issued in respect of the council. 33
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Local Government Amendment (Early Intervention) Bill 2013
Schedule 1 Amendment of Local Government Act 1993 No 30
[23] Chapter 13, Introduction 1
Omit the second last paragraph of the introduction to Chapter 13. 2
Insert instead: 3
Councils are accountable to residents and ratepayers in their local 4
government area. They are also accountable to the Minister. The 5
Director-General has power to investigate a council, its work and its 6
activities and report on the investigation to the Minister. The Minister has 7
power to issue a performance improvement order in respect of a council, 8
to suspend a council and to initiate a public inquiry into the operations of 9
a council. 10
[24] Section 429 11
Omit the section. Insert instead: 12
429 Provision of documents or information about council 13
(1) The Minister or Director-General may at any time, by order, 14
direct a council, a councillor or the general manager of a council 15
to provide such documents or information concerning the 16
council, its operations or its activities as the Minister or 17
Director-General specifies in the order. 18
(2) A copy of the order must be served on the council or person 19
required to provide the documents or information. 20
Note. Failure to comply with a direction is an offence under section 661. 21
[25] Section 429A Complaints about councils, councillors, delegates and 22
staff 23
Omit "authorised under section 430" from section 429A (3) (a). 24
Insert instead "under this Division". 25
[26] Section 430 26
Omit the section. Insert instead: 27
430 Director-General may investigate councils 28
The Director-General may, at the request of the Minister or on the 29
Director-General's own initiative, conduct an investigation into 30
any aspect of a council or of its work and activities. 31
[27] Section 431 Powers in connection with investigation 32
Omit "purpose of exercising his or her functions" from section 431 (1). 33
Insert instead "purpose of conducting an investigation under this Division". 34
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Local Government Amendment (Early Intervention) Bill 2013
Amendment of Local Government Act 1993 No 30 Schedule 1
[28] Section 431 1
Omit "a Departmental representative" and "the Departmental representative" 2
wherever occurring. 3
Insert instead "the Director-General". 4
[29] Section 431 (1), note 5
Insert at the end of section 431 (1): 6
Note. Failure to comply with a direction is an offence under section 661. 7
[30] Section 431 (3) 8
Omit "A Departmental representative". Insert instead "The Director-General". 9
[31] Section 432 Entry on to premises 10
Omit ", in relation to the functions of a Departmental representative, to the 11
Director-General and a Departmental representative". 12
Insert instead "to the Director-General when exercising functions in respect of 13
an investigation under this Division". 14
[32] Section 433 Report of investigation 15
Omit section 433 (1) and (2). Insert instead: 16
(1) The Director-General must report to the Minister on the results of 17
an investigation under this Division and must send a copy of the 18
report to the council concerned. 19
(2) The report may comment on any matter that, in the 20
Director-General's opinion, warrants special mention and may 21
contain such recommendations as the Director-General considers 22
appropriate. 23
[33] Section 434 Council's response to report 24
Omit "a Departmental representative's report" from section 434 (1). 25
Insert instead "a report made by the Director-General following an 26
investigation under this Division". 27
[34] Section 434B Expenses of investigation to be borne by council 28
Omit section 434B (1). Insert instead: 29
(1) The Director-General may recover the reasonable expenses 30
incurred by the Director-General in respect of an investigation 31
under this Division if the investigation relates to: 32
(a) the administration of an election by a general manager, or 33
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Local Government Amendment (Early Intervention) Bill 2013
Schedule 1 Amendment of Local Government Act 1993 No 30
(b) a recurring problem with the administration of a council. 1
(1A) A recurring problem with the administration of a council means 2
any facts or circumstances with respect to the council, its work or 3
its activities that have been the subject of previous Ministerial 4
intervention, and that have continued to exist or have recurred, 5
despite that Ministerial intervention. 6
(1B) In this section, Ministerial intervention means: 7
(a) the issue of a performance improvement order, or 8
(b) the temporary suspension of a council under Part 7. 9
[35] Section 434B (6) and (7) 10
Omit section 434B (6). Insert instead: 11
(6) In this section, expenses incurred in respect of an investigation 12
under this Division include: 13
(a) investigation expenses of the Director-General or 14
departmental staff, and 15
(b) remuneration paid to departmental staff assisting with the 16
investigation, and 17
(c) expenses associated with the preparation of a report in 18
respect of the investigation. 19
(7) The Director-General may certify that an investigation under this 20
Division relates to a recurring problem with the administration of 21
a council and that certificate is sufficient evidence, unless the 22
contrary is proved, that the investigation relates to a recurring 23
problem with the administration of the council. 24
[36] Section 434C 25
Insert after section 434B: 26
434C Self-incrimination 27
(1) A person is not excused from a requirement under this Division 28
to provide records or information or to answer a question on the 29
ground that the record, information or answer might incriminate 30
the person or make the person liable to a penalty. 31
(2) However, any information provided or answer given by a natural 32
person in compliance or in purported compliance with a 33
requirement under this Division is not admissible in evidence 34
against the person in criminal proceedings (except proceedings 35
for an offence of failing to comply with the requirement or of 36
providing information that is false or misleading) if the person 37
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Local Government Amendment (Early Intervention) Bill 2013
Amendment of Local Government Act 1993 No 30 Schedule 1
objected at the time to doing so on the ground that it might 1
incriminate the person. 2
(3) Despite any such objection, any answer or information may be 3
used in connection with a public inquiry or an investigation under 4
this Division, or an investigation or the taking of disciplinary 5
action against the person under Division 3 of Part 1 of 6
Chapter 14, and is admissible in proceedings under this Act 7
relating to misconduct. 8
(4) Any record provided by a person in compliance with a 9
requirement under this Division is not inadmissible in evidence 10
against the person in criminal proceedings on the ground that the 11
record might incriminate the person. 12
[37] Section 435 Surcharging by Director-General 13
Omit "a Departmental representative" from section 435 (1). 14
Insert instead "the Director-General". 15
[38] Section 435 (2) 16
Omit "A Departmental representative". Insert instead "The Director-General". 17
[39] Section 435 (3) 18
Omit the subsection. 19
[40] Section 436 Procedure for surcharging 20
Omit "Departmental representative" wherever occurring. 21
Insert instead "Director-General". 22
[41] Chapter 13, Parts 6-9 23
Insert after Part 5: 24
Part 6 Performance management 25
438A Performance improvement order 26
(1) The Minister may issue an order in respect of a council if the 27
Minister reasonably considers that action must be taken to 28
improve the performance of the council. 29
(2) An order issued under this section is a performance 30
improvement order. 31
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Local Government Amendment (Early Intervention) Bill 2013
Schedule 1 Amendment of Local Government Act 1993 No 30
(3) A performance improvement order is to specify: 1
(a) the reasons why the Minister has decided to issue the 2
order, and 3
(b) the actions that the Minister requires to be taken to 4
improve the performance of the council. 5
(4) Actions to improve the performance of a council include any 6
actions the Minister considers necessary to improve or restore the 7
proper or effective functioning of the council. 8
(5) The order may require action to be taken by the council, by 9
individual councillors, or both. 10
(6) A performance improvement order may require the quorum for a 11
meeting of the council to be determined as specified by the 12
Minister in the performance improvement order. 13
(7) A copy of the performance improvement order is to be served on 14
the council. 15
(8) In relation to a performance improvement order, a reference to an 16
action, or the taking of any action, includes a reference to doing 17
any thing or refraining from doing any thing. 18
438B Minister to give notice of intention to issue performance 19
improvement order 20
(1) The Minister is to give a council notice in writing of his or her 21
intention to issue a performance improvement order in respect of 22
the council. 23
(2) The notice is to specify the following: 24
(a) the terms of the proposed performance improvement 25
order, including the period for compliance with the order, 26
(b) the reasons why it is proposed to issue the performance 27
improvement order (including any evidence supporting the 28
Minister's opinion that improvement is required), 29
(c) the actions that may be taken by the Minister if the 30
performance improvement order is not complied with. 31
(3) The notice must invite the council to make submissions in respect 32
of the proposed performance improvement order within a 33
consultation period specified in the notice. 34
(4) The consultation period is to be a period of not less than 21 days 35
from the date the notice is served on the council. 36
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Amendment of Local Government Act 1993 No 30 Schedule 1
(5) The Minister is to have regard to any submissions made by the 1
council during the consultation period in deciding: 2
(a) whether to issue the proposed performance improvement 3
order, and 4
(b) whether any changes should be made to the terms of the 5
proposed performance improvement order. 6
(6) The Minister is not required to give notice to a council of his or 7
her intention to issue a performance improvement order in 8
respect of the council if: 9
(a) the Minister considers that the improvement in the 10
council's performance is required as a matter of urgency, 11
such that consultation must be dispensed with, or 12
(b) the Minister considers that giving notice of the intention to 13
issue the order would serve no useful purpose, or 14
(c) the council is suspended under Part 7, or 15
(d) the order is issued in response to the results of a public 16
inquiry in relation to a council. 17
438C Performance improvement order to be made public 18
(1) The Director-General is to cause any performance improvement 19
order issued by the Minister to be published on the Department's 20
website. 21
(2) A council is to cause any performance improvement order issued 22
in respect of the council to be published on the council's website. 23
438D Compliance with performance improvement order 24
(1) The governing body of a council is responsible for ensuring the 25
council's compliance with a performance improvement order. 26
(2) A council complies with a performance improvement order only 27
if the actions required by the performance improvement order 28
(including any actions required to be taken by individual 29
councillors) are taken to the satisfaction of the Minister. 30
438E Compliance report 31
(1) A council must provide the Minister with a written report on its 32
compliance with a performance improvement order within the 33
time required by the performance improvement order. 34
(2) Such a report is referred to in this Part as a compliance report. 35
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Local Government Amendment (Early Intervention) Bill 2013
Schedule 1 Amendment of Local Government Act 1993 No 30
(3) A compliance report must specify any actions taken that 1
demonstrate compliance with the performance improvement 2
order. 3
(4) A compliance report must comply with any requirements 4
specified in the performance improvement order. 5
438F Appointment of temporary adviser 6
(1) If the Minister issues a performance improvement order in 7
respect of a council, the Minister may appoint one or more 8
persons as a temporary adviser to the council. 9
(2) A temporary adviser may be appointed in the performance 10
improvement order or by subsequent order of the Minister served 11
on the council. 12
(3) A temporary adviser may be appointed on the recommendation of 13
the council or on the Minister's own initiative. 14
(4) The principal functions of a temporary adviser are: 15
(a) to provide advice and assistance to the council for the 16
purpose of ensuring that it complies with the performance 17
improvement order, and 18
(b) to monitor the council's compliance with the performance 19
improvement order. 20
(5) A temporary adviser has such other functions as are specified in 21
the instrument by which he or she is appointed. 22
(6) A temporary adviser is appointed for the term specified in the 23
instrument by which he or she is appointed. The term must not 24
exceed the period for compliance with the performance 25
improvement order. 26
(7) A temporary adviser must be paid a salary from the council's 27
funds determined by the council (in the case of an adviser 28
appointed on the recommendation of the council) or by the 29
Minister (in any other case). 30
(8) The Minister may terminate a temporary adviser's appointment 31
at any time. 32
438G Co-operation with temporary adviser 33
(1) If a temporary adviser is appointed to a council, the council, 34
councillors and members of the staff of the council are required 35
to co-operate with the temporary adviser and to provide any 36
information or assistance the temporary adviser reasonably 37
requires to exercise his or her functions. 38
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Amendment of Local Government Act 1993 No 30 Schedule 1
(2) In particular, the council is to give the temporary adviser an 1
opportunity to review any proposed compliance report at least 2
14 days before it is given to the Minister and is to give the 3
Minister a copy of the temporary adviser's comments (if any) on 4
the compliance report. 5
(3) A contravention of this section is a failure to comply with a 6
performance improvement order. 7
Part 7 Temporary suspension of council 8
438H Power of Minister to suspend council 9
(1) The Minister may, by order published in the Gazette, suspend a 10
council for a period specified in the order if the Minister 11
reasonably believes that the appointment of an interim 12
administrator is necessary to improve or restore the proper or 13
effective functioning of the council. 14
(2) An order under this section is referred to in this Part as a 15
suspension order. 16
438I Minister to give notice of intention to suspend council 17
(1) The Minister is to give a council notice in writing of his or her 18
intention to suspend the council. 19
(2) The notice is to specify: 20
(a) the reasons why it is proposed to suspend the council, and 21
(b) the duration of the proposed suspension. 22
(3) The notice must invite the council to make submissions in respect 23
of the proposed suspension within a consultation period specified 24
in the notice. 25
(4) The consultation period is to be a period of not less than 14 days 26
from the date the notice is served on the council. 27
(5) The Minister is to have regard to any submissions made by the 28
council during the consultation period in deciding whether to 29
suspend the council. 30
(6) The Minister is not required to give notice to a council of his or 31
her intention to suspend the council if the Minister considers that: 32
(a) the suspension is required as a matter of urgency, such that 33
consultation must be dispensed with, or 34
(b) giving notice of the intention to suspend the council would 35
serve no useful purpose. 36
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438J Effect of suspension on councillors 1
(1) During the period in which a council is suspended under this Part, 2
any persons holding civic office in relation to the council are 3
taken also to be suspended from office. 4
(2) A person, while suspended from civic office under this section: 5
(a) is not entitled to exercise any of the functions of the civic 6
office, and 7
(b) is not entitled to any fee or other remuneration, or to the 8
payment of expenses or to the use of any council facilities, 9
to which the person would otherwise be entitled as the 10
holder of the civic office. 11
438K Appointment of interim administrator 12
(1) The Minister must, in a suspension order or by subsequent order 13
published in the Gazette, appoint an administrator of a council 14
that is suspended. 15
(2) The order is to specify the period for which the administrator is 16
appointed, not exceeding the period during which the council is 17
suspended. 18
(3) An administrator appointed under this section is an interim 19
administrator. 20
(4) More than one interim administrator may be appointed for a 21
council (with the same or different functions). 22
(5) An interim administrator of a council has, during the period of 23
appointment as administrator, all the functions of the council, or, 24
if more than one interim administrator is appointed, the functions 25
of the council specified in the instrument of appointment. 26
(6) If more than one interim administrator is appointed for a council, 27
the Minister may give directions for the purpose of resolving any 28
issues that arise as a result of there being more than one interim 29
administrator. 30
(7) An interim administrator must be paid a salary from the council's 31
funds determined by the Minister. 32
(8) The Minister may, by order published in the Gazette, extend the 33
period for which an interim administrator is appointed if the 34
period during which the council is suspended is extended. 35
(9) The Minister may terminate an interim administrator's 36
appointment at any time. 37
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(10) A reference in this or any other Act, or any statutory instrument, 1
to an administrator of a council includes, unless the context 2
otherwise requires, a reference to an interim administrator. 3
438L Report by interim administrator 4
(1) An interim administrator is to give the Minister a written report 5
about his or her administration of the council. 6
(2) The report is to include any recommendations of the interim 7
administrator in relation to improving or restoring the proper and 8
effective functioning of the council. 9
(3) The interim administrator is to provide the report to the Minister 10
no less than 14 days before the end of the initial suspension 11
period of the council. 12
(4) The initial suspension period of the council is the suspension 13
period as initially specified in the suspension order, before any 14
extension of the period by further order. 15
(5) If the Minister amends a suspension order to extend the 16
suspension period of a council, the interim administrator is to 17
prepare a further report under this section in respect of that 18
extended period and give that report to the Minister no less than 19
14 days before the end of the extended suspension period. 20
438M Suspension period 21
(1) The maximum period for which a council can initially be 22
suspended by a suspension order is 3 months. 23
(2) However, the Minister may, by order published in the Gazette on 24
or before the end of the period during which the council is 25
suspended, amend the suspension order to extend or further 26
extend the period during which the council is suspended. 27
(3) A suspension may be extended only if the Minister reasonably 28
believes that an extension is necessary to improve or restore the 29
proper or effective functioning of the council. 30
(4) The maximum total period for which a council can be suspended 31
by a suspension order, as amended under this section, is 32
6 months. 33
(5) The Minister is not required to give notice to the council of his or 34
her intention to extend the period during which a council is 35
suspended. 36
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438N Performance improvement orders during suspension period 1
(1) A performance improvement order may be issued in respect of a 2
council even if it is suspended under this Part. 3
(2) An order issued in such a case may require action to be taken by 4
individual councillors, even though they are suspended by the 5
suspension order. 6
438O Maximum number of suspensions 7
(1) The Minister cannot, during the term of a council, make a 8
suspension order in respect of the council more than twice on the 9
basis of the same facts or circumstances. 10
(2) This section does not limit the power of the Minister under this 11
Part to extend the period during which a council is suspended by 12
a suspension order. 13
438P Ordinary election during suspension period 14
If an ordinary election of councillors of a council is held during 15
the period in which the council is suspended under this Part, a 16
suspension under this Part: 17
(a) is taken to continue after that election, even if it would 18
otherwise have ended, and 19
(b) is taken to end immediately before the first meeting of the 20
council after the election. 21
438Q Election of mayor during suspension period 22
(1) An election of the mayor by councillors is not required to be held 23
during a period in which the council is suspended under this Part. 24
(2) However, any election that would, but for this section, be 25
required to be held during a period in which the council is 26
suspended must instead be held within 14 days after the end of 27
the suspension period. 28
(3) Subsection (2) does not apply if the council is dismissed, or an 29
ordinary election of councillors is held, before the end of the 30
suspension period. 31
Part 8 Public inquiries 32
438R Public inquiries 33
(1) The Governor or the Minister may appoint a person as 34
commissioner, or two or more persons as commissioners, to hold 35
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a public inquiry and to report to the Governor or the Minister with 1
respect to: 2
(a) any matter relating to the carrying out of the provisions of 3
this Act or any other Act conferring or imposing functions 4
on a council, and 5
(b) any act or omission of a member of a council, any 6
employee of a council or any person elected or appointed 7
to any office or position under this or any other Act 8
conferring or imposing functions on a council, being an act 9
or omission relating to the carrying out of the provisions of 10
the Act concerned, or to the office or position held by the 11
member, employee or person under the Act concerned, or 12
to the functions of that office or position. 13
(2) For the purposes of any inquiry under this section, any person 14
appointed to hold the inquiry has the powers, authorities, 15
protections and immunities conferred on a commissioner, as well 16
as the powers, authorities, protections and immunities conferred 17
by Division 1 of Part 2 of the Royal Commissions Act 1923: 18
(a) on a sole commissioner (if the person is the only person 19
appointed to hold the inquiry), or 20
(b) on a chairperson of a commission (if the person is one of 21
two or more persons appointed to hold the inquiry and has 22
been appointed as chairperson of the inquiry). 23
(3) The provisions of section 24 of the Local Court Act 2007 apply 24
to any witness or person summoned by or appearing before the 25
person so appointed in the same way as it applies to witnesses and 26
persons in proceedings under that Act. 27
(4) The provisions of the Royal Commissions Act 1923 (section 13 28
and Division 2 of Part 2 excepted) apply, with any necessary 29
adaptations, to and in respect of any inquiry under this section 30
and to and in respect of any witness or person summoned by or 31
appearing before the person or persons holding the inquiry. 32
(5) The Minister is to cause the report of the person or persons who 33
have held an inquiry under this section to be laid before both 34
Houses of Parliament. If neither House of Parliament is sitting, 35
section 14B of the Royal Commissions Act 1923 applies. 36
438S Expenses of public inquiry to be borne by council in certain 37
circumstances 38
(1) The Director-General, on behalf of the State, may recover the 39
reasonable expenses incurred by the State in holding a public 40
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Schedule 1 Amendment of Local Government Act 1993 No 30
inquiry if the inquiry relates to a recurring problem with the 1
administration of a council. 2
(2) A recurring problem with the administration of a council means 3
any facts or circumstances with respect to the council, its work or 4
its activities that have been the subject of previous Ministerial 5
intervention, and that have continued to exist or have recurred, 6
despite that Ministerial intervention. 7
(3) In this section, Ministerial intervention means: 8
(a) the issue of a performance improvement order, or 9
(b) the temporary suspension of a council under Part 7. 10
(4) The Director-General may make a determination of the amount 11
of the expenses referred to in subsection (1) and serve a notice on 12
the council requiring the amount so determined be paid in 13
recovery of the expenses. 14
(5) An amount equal to the expenses as so determined, unless the 15
Director-General otherwise decides, is payable to the 16
Director-General as a debt by the council concerned. 17
(6) The council may apply to the Administrative Decisions Tribunal 18
for a review of whether any part of the expenses so determined 19
are not reasonable expenses. 20
(7) The Director-General must give effect to any decision of the 21
Tribunal on a review of the determination of the amount of the 22
expenses. 23
(8) In this section, expenses incurred in holding a public inquiry 24
include: 25
(a) remuneration paid to the commissioner or commissioners 26
who hold the public inquiry, and 27
(b) remuneration paid to staff assisting with the inquiry, and 28
(c) expenses associated with the attendance of witnesses or 29
other persons at the inquiry. 30
(9) The Director-General may certify that a public inquiry relates to 31
a recurring problem with the administration of a council and that 32
certificate is sufficient evidence, unless the contrary is proved, 33
that the public inquiry relates to a recurring problem with the 34
administration of the council. 35
438T Suspension of council during public inquiry 36
(1) The Minister may, by order published in the Gazette, suspend a 37
council if a public inquiry relating to the council is held or to be 38
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Amendment of Local Government Act 1993 No 30 Schedule 1
held and the Minister considers it in the public interest to suspend 1
the council. 2
(2) The suspension: 3
(a) starts on the date appointed by the Minister in the order as 4
the start date for the suspension (being a date no earlier 5
than the date the appointment of one or more 6
commissioners to hold the inquiry takes effect), and 7
(b) ends when the suspension is terminated or if the council is 8
dismissed. 9
438U Effect of suspension 10
(1) During the period in which a council is suspended under this Part, 11
any persons holding civic office in relation to the council are 12
taken also to be suspended from office. 13
(2) A person, while suspended from civic office under this section: 14
(a) is not entitled to exercise any of the functions of the civic 15
office, and 16
(b) is not entitled to any fee or other remuneration, or to the 17
payment of expenses or to the use of any council facilities, 18
to which the person would otherwise be entitled as the 19
holder of the civic office. 20
438V Appointment of interim administrator 21
(1) The Minister must, in an order suspending a council under this 22
Part or by subsequent order published in the Gazette, appoint an 23
administrator of a council that is suspended. 24
(2) The order is to specify the period for which the administrator is 25
appointed, not exceeding the period during which the council is 26
suspended. 27
(3) An administrator appointed under this section is an interim 28
administrator. 29
(4) More than one interim administrator may be appointed under this 30
section (with the same or different functions). 31
(5) An interim administrator of a council has, during the period of 32
appointment as administrator, all the functions of the council, or, 33
if more than one interim administrator is appointed, the functions 34
of the council specified in the instrument of appointment. 35
(6) If more than one interim administrator is appointed for a council, 36
the Minister may give directions for the purpose of resolving any 37
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Schedule 1 Amendment of Local Government Act 1993 No 30
issues that arise as a result of there being more than one interim 1
administrator. 2
(7) An interim administrator must be paid a salary from the council's 3
funds determined by the Minister. 4
(8) The Minister may terminate an interim administrator's 5
appointment at any time. 6
(9) A reference in this or any other Act, or any statutory instrument, 7
to an administrator of a council includes, unless the context 8
otherwise requires, a reference to an interim administrator. 9
438W Termination of suspension 10
(1) The Minister may, by order published in the Gazette, terminate 11
the suspension of a council under this Part. 12
(2) The Minister is to terminate the suspension of a council under this 13
Part no later than 30 days after the inquiry report date, unless the 14
council is dismissed on or before that date. 15
(3) However, a failure to terminate the suspension within that 30-day 16
period does not affect the validity of an order terminating the 17
suspension that is made after that 30-day period. 18
(4) For the purposes of this section, the inquiry report date is the date 19
the report of the person or persons who held the public inquiry is 20
provided to the Governor or the Minister, as the case requires. 21
438X Ordinary election during suspension period 22
If an ordinary election of councillors of a council is held during 23
the period in which the council is suspended under this Part, a 24
suspension under this Part: 25
(a) is taken to continue after that election, even if it would 26
otherwise have ended, and 27
(b) is taken to end immediately before the first meeting of the 28
council after the election. 29
438Y Election of mayor during suspension period 30
(1) An election of the mayor by councillors is not required to be held 31
during a period in which the council is suspended under this Part. 32
(2) However, any election that would, but for this section, be 33
required to be held during a period in which the council is 34
suspended must instead be held within 14 days after the 35
suspension ends. 36
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Amendment of Local Government Act 1993 No 30 Schedule 1
(3) Subsection (2) does not apply if the suspension ends because the 1
council is dismissed or if an ordinary election of councillors is 2
held before the suspension ends. 3
438Z Issue of performance improvement orders in response to public 4
inquiry 5
(1) A performance improvement order may be issued in response to 6
the results of a public inquiry in relation to a council. 7
(2) For the purposes of this Act, a performance improvement order is 8
taken to be issued in response to the results of a public inquiry if: 9
(a) a public inquiry in relation to a council is held, and 10
(b) the performance improvement order specifies, in the 11
reasons why the Minister has decided to issue the order, 12
that it has been issued in response to the results of the 13
public inquiry. 14
Note. Under section 255, the Minister may, after considering whether 15
the council has complied with the performance improvement order, 16
recommend that the council be dismissed. 17
Part 9 General 18
438ZA Service of Ministerial and departmental documents 19
(1) Any order, notice or other document that the Minister or 20
Director-General is required to serve on or give to a council or a 21
person under this Chapter may be served on or given to the 22
council or person by electronic means if the council or person has 23
given the Department an email address for the service of 24
documents. 25
(2) Service is effected when a copy of the order, notice or other 26
document is sent to that email address. 27
(3) This section does not prevent service by post or by any other 28
method permitted by or under this Act. 29
[42] Section 440C Temporary suspension from civic office for serious 30
corrupt conduct 31
Insert ", or to the payment of expenses or to the use of council facilities," after 32
"remuneration" in section 440C (2) (b). 33
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Schedule 1 Amendment of Local Government Act 1993 No 30
[43] Section 440K Suspension of a councillor (as substituted by the Local 1
Government Amendment (Conduct) Act 2012) 2
Omit section 440K (1). Insert instead: 3
(1) A councillor, while suspended from office under this Division: 4
(a) is not entitled to exercise any of the functions of the civic 5
office, and 6
(b) is not entitled to any fee or other remuneration, or to the 7
payment of expenses or to the use of council facilities, to 8
which he or she would otherwise be entitled as the holder 9
of the civic office. 10
[44] Section 440L Appeals against disciplinary action (as substituted by the 11
Local Government Amendment (Conduct) Act 2012) 12
Insert ", or expenses," after "remuneration" in section 440L (6). 13
[45] Section 440P 14
Insert after section 440O (as substituted by the Local Government Amendment 15
(Conduct) Act 2012): 16
440P Service of departmental documents 17
(1) Any order, notice or other document that the Director-General is 18
required to serve on or give to a person under this Division may 19
be served on or given to the person by electronic means if the 20
person has given the Department an email address for the service 21
of documents. 22
(2) Service is effected when a copy of the order, notice or other 23
document is sent to that email address. 24
(3) This section does not prevent service by post or by any other 25
method permitted by or under this Act. 26
[46] Section 660 Obstruction 27
Omit the third dot point. 28
[47] Section 660 29
Omit "appointed as referred to in section 256" from the eighth dot point. 30
Insert instead "of a council appointed under this Act". 31
[48] Chapter 18, Introduction 32
Omit the fourth dot point from the introduction to Chapter 18. 33
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Amendment of Local Government Act 1993 No 30 Schedule 1
[49] Section 740 Public inquiries 1
Omit the section. 2
[50] Section 745 Delegation of functions by the Director-General 3
Insert at the end of the section: 4
(2) A delegate may subdelegate to a member of staff of the 5
Department any function delegated by the Director-General if the 6
delegate is authorised in writing to do so by the Director-General. 7
[51] Schedule 8 Savings, transitional and other provisions consequent on 8
the enactment of other Acts 9
Insert at the end of the Part containing provisions consequent on the enactment 10
of the Local Government Amendment (Conduct) Act 2012 with appropriate 11
clause numbering: 12
References to Minister for Primary Industries in sections 57-66 13
(1) A reference to the Minister for Primary Industries in 14
sections 57-66, as amended by the amending Act, is to be 15
construed in the same way as a reference to the Minister for Land 16
and Water Conservation in those sections was required to be 17
construed, immediately before 1 March 2013, as a result of any 18
administrative changes order that had effect before those sections 19
were amended by the amending Act. 20
(2) This clause is taken to have commenced on 1 March 2013. 21
(3) This clause does not affect the operation of any administrative 22
changes order made after 1 March 2013. 23
(4) In this clause: 24
administrative changes order means an order under Part 4.2 of 25
Chapter 4 of the Public Sector Employment and Management Act 26
2002. 27
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Schedule 1 Amendment of Local Government Act 1993 No 30
[52] Schedule 8 1
Insert at the end of the Schedule with appropriate Part and clause numbering: 2
Part Provisions consequent on enactment of 3
Local Government Amendment (Early 4
Intervention) Act 2013 5
Definition 6
In this Part: 7
amending Act means the Local Government Amendment (Early 8
Intervention) Act 2013. 9
Investigations 10
(1) Any investigation the Director-General authorised a person to 11
conduct under section 430, before its substitution by the 12
amending Act, that has not been completed, is taken on that 13
substitution to be an investigation by the Director-General under 14
section 430. 15
(2) A Departmental representative authorised under section 430, 16
before its substitution by the amending Act, to investigate any 17
aspect of a council or of its work and activities and whose 18
authority is in force immediately before that substitution is taken 19
to have been delegated: 20
(a) the functions of the Director-General under sections 431 21
and 432 in connection with the investigation, and 22
(b) the functions of the Director-General under Division 2 of 23
Part 5 of Chapter 13 (Surcharging). 24
(3) The delegation may be varied or revoked by the 25
Director-General. 26
Public inquiries 27
(1) The provisions of sections 255 (1A) and 438Z, as inserted by the 28
amending Act, extend to a public inquiry under section 740 held 29
or commenced before those provisions commenced. 30
(2) Section 740, as in force before its repeal by the amending Act, 31
continues to apply in respect of any inquiry under that section that 32
commenced before that repeal. 33
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Local Government Amendment (Early Intervention) Bill 2013
Amendment of Local Government Act 1993 No 30 Schedule 1
[53] Dictionary 1
Omit the definition of Departmental representative. 2
Insert in alphabetical order: 3
dismissal of a council--see section 255. 4
interim administrator means an interim administrator of a 5
council appointed under Part 7 or 8 of Chapter 13. 6
performance improvement order means an order issued under 7
section 438A. 8
[54] Dictionary, definition of "public inquiry" 9
Omit "section 740". Insert instead "Part 8 of Chapter 13". 10
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Local Government Amendment (Early Intervention) Bill 2013
Schedule 2 Amendment of other legislation
Schedule 2 Amendment of other legislation 1
2.1 Environmental Planning and Assessment Act 1979 No 203 2
Section 117A Inquiry into councils by Director-General of Department of 3
Premier and Cabinet 4
Omit "authorise" from section 117A (1). Insert instead "conduct". 5
2.2 Government Information (Public Access) Regulation 2009 6
Schedule 1 Additional open access information--local authorities 7
Insert after clause 4 (i): 8
(j) performance improvement orders issued to a council under 9
Part 6 of Chapter 13 of the LGA. 10
Page 26
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