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LOCAL GOVERNMENT LEGISLATION AMENDMENT ACT 2016 (NO. 26 OF 2016) - SECT 9

9 .         Sections 3.69 to 3.72 inserted

                At the end of Part 3 Division 4 insert:


3.69.         Regional subsidiaries

        (1)         Two or more local governments making arrangements under which they are to provide a service or carry on an activity jointly may, with the Minister’s approval and in accordance with the regulations, form a subsidiary body (called a regional subsidiary ) to provide that service or carry on that activity.

        (2)         If the Minister approves the formation of a regional subsidiary, the Minister must, by notice in the Gazette , declare that the regional subsidiary is established —

            (a)         on the date set out in the notice; and

            (b)         under the name set out in the notice.

        (3)         A regional subsidiary —

            (a)         is a body corporate with perpetual succession and a common seal; and

            (b)         is to have a governing body consisting of members appointed in accordance with the regional subsidiary’s charter (as approved by the Minister in accordance with section 3.70(3)).

        (4)         Without limiting subsection (3)(b), a governing body may consist of or include members who are not council members or employees.

3.70.         Regional subsidiaries to have charter

        (1)         Local governments proposing to form a regional subsidiary must prepare a charter addressing the following matters —

            (a)         the establishment and powers and duties of the regional subsidiary;

            (b)         the process for selecting and appointing members of the regional subsidiary’s governing body;

            (c)         the qualifications that members of the regional subsidiary’s governing body must have;

            (d)         the administration of the regional subsidiary, including the membership and procedures of its governing body, and the fees, allowances and expenses to be paid or reimbursed to the members of its governing body;

            (e)         the financial management, planning, auditing and reporting to be undertaken by the regional subsidiary;

            (f)         the process for amending the charter;

            (g)         the winding up of the regional subsidiary;

            (h)         any other matters required by the regulations to be dealt with in a charter.

        (2)         The local governments must forward the charter to the Minister when applying for approval for the formation of the regional subsidiary.

        (3)         A charter, and an amendment to a charter, are of no effect unless approved by the Minister.

3.71.         Regulations about regional subsidiaries

                Regulations may —

            (a)         regulate the procedure for applying to the Minister for approval for the formation of a regional subsidiary; and

            (b)         require the local governments proposing to form a regional subsidiary to consult with the community in their districts in accordance with the regulations; and

            (c)         provide that a specified provision of this Act applies in relation to a regional subsidiary subject to any prescribed or necessary modifications; and

            (d)         provide for or regulate any other matter that is necessary or convenient to be provided for or regulated in respect of a regional subsidiary.

3.72.         Other provisions and arrangements not affected

        (1)         Section 3.69 has effect in addition to the provisions of this Division relating to regional local governments, and does not derogate from those provisions.

        (2)         Nothing in section 3.69 prevents local governments from making arrangements under which —

            (a)         a local government provides a service or carries on an activity for another local government; or

            (b)         local governments provide a service or carry on an activity jointly without forming a regional subsidiary.




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