Local Government (Business Improvement Districts) Act 2006
No. 42 of 2006
An act to provide for the establishment of business improvement districts within the functional areas of rating authorities, to enable schemes under which projects, services and works are carried out for the benefit of those districts, to finance the schemes by providing for the imposition and collection of a levy on rateable properties situated in those districts, to improve local authority funding by providing for the imposition and collection of levies applicable in relation to newly constructed properties, to make new provision in relation to audit committees of local authorities, to amend the local government acts 1925 to 2004 for all such purposes, to amend the valuation act 2001, and to provide for related matters.
In this Act “ Principal Act ” means the Local Government Act 2001 .
2-
Amendment of section 2 (interpretation) of Principal Act
Section 2(1) of the Principal Act is amended by inserting the following after the definition of “local electoral area”:
“ ‘ local fund’ has the meaning given to it by section 97;” .
3-
Amendment of section 97 (the local fund) of Principal Act
Section 97 of the Principal Act is amended in subsections (3) and (4) by inserting “or a BID fund established under section 129K” after “section 109”, wherever it appears.
4-
Amendment of section 121 (consideration of annual financial statement and auditor’s report) of Principal Act
The Principal Act is amended by adding the following subsection to section 121:
“(4)
A local government auditor is entitled to qualified privilege in relation to any statements made by him or her at a meeting referred to in subsection (3).”.
The Principal Act is amended by substituting the following section for section 122:
“Audit committee.
122.
(1)
A local authority shall, within such period as the Minister prescribes by regulations for the purposes of this subsection, establish a committee (in this Chapter referred to as an ‘audit committee’).
(2)
The functions of an audit committee shall be to—
(a)
review financial and budgetary reporting practices and procedures within the local authority that has established it (the ‘authority’),
(b)
foster the development of best practice in the performance by the authority of its internal audit function,
(c)
review any auditor’s report or auditor’s special report in relation to the authority and assess any actions taken by management within the authority in response to either such report,
(d)
assess and promote efficiency and value for money with respect to the authority’s performance of its functions,
(e)
review systems that are operated by the authority for the management of risks, and
(f)
make such recommendations to the authority as the committee considers appropriate in relation to the foregoing matters.
(3)
The Minister may by regulations make provision in respect of all or any of the following matters regarding an audit committee:
(a)
its membership;
(b)
the holding by it of meetings, including the frequency of those meetings and the conduct of them;
(c)
the preparation of reports by it and the furnishing of them to others;
(d)
the performance by it of its functions, whether generally or in particular cases, and the procedures to be followed in relation to that performance; and
(e)
matters incidental to, or consequential on, any of the foregoing matters (including provision for privilege to attach to statements made to it or made by members of it in their capacity as such members).
(f)
(4)
The obligation imposed by subsection (1) applies in relation to a local authority notwithstanding that one or more than one audit committee (a ‘relevant committee’) stands established by the local authority under this section (being this section in the terms as it stood before the amendment of it by section 5 of the Local Government (Business Improvement Districts) Act 2006) and accordingly, on and after the commencement of that section 5 , such a relevant committee shall not constitute an audit committee for the purposes of subsections (1) to (3).”.
‘ annual BID contribution ’ has the meaning assigned to it by section 129L;
‘ annual BID multiplier ’ means the annual BID multiplier determined for a chargeable period under section 129M(2);
‘ BID approval date ’, in relation to a BID scheme, means the date on which the rating authority concerned passes the resolution approving implementation or renewal of the scheme;
‘ BID company ’ has the meaning assigned to it by section 129I;
‘ BID contribution levy ’ has the meaning assigned to it by section 129N;
‘ BID fund ’, in relation to a BID scheme, means the fund established or renewed for that scheme under section 129K;
‘ BID levypayer ’, in relation to rateable property subject to a BID contribution levy, means the person liable to pay the levy in respect of the property under section 129N(5);
‘ BID proponent ’ means a person specified as a proponent of a BID proposal under section 129C(2)(a);
‘ BID proposal ’ has the meaning assigned to it by section 129C;
‘ BID scheme ’ means a scheme approved by a rating authority under section 129B(1)(b);
‘ business improvement district ’ means a business improvement district established under section 129B;
‘ chargeable period ’, in relation to a BID scheme, means each successive 12 month period over which the scheme is to operate, beginning on the scheme commencement date;
‘ rateable property ’ means relevant property that is rateable under the Valuation Act 2001 ;
‘ ratepayer ’, in relation to rateable property, means a person required to pay rates on that property;
‘ ratepayer plebiscite ’ means a plebiscite described in section 129G;
‘ scheme commencement date ’, in relation to a BID scheme, means the date that the scheme comes into force under section 129B(6)(a);
‘ valuation ’ means valuation within the meaning of the Valuation Act 2001 ;
‘ valuation list ’ means a valuation list as defined in the Valuation Act 2001 .
Rating authority approval of a business improvement district scheme.
129B
(1)
Subject to and in accordance with this Part, the rating authority for an administrative area may by resolution—
(a)
specify an area within the administrative area and establish that area as a business improvement district, and
(b)
approve implementation of a scheme (‘BID scheme’) to carry out or provide one or more projects, services or works described in subsection (2) and which scheme is financed in whole or in part by BID contribution levies under this Part.
(2)
The projects, services and works referred to in subsection (1)(b) shall, in the rating authority’s opinion, be—
(a)
for the benefit of the business improvement district and those who live, work or carry on an activity in it, and
(b)
in addition to and not instead of any project, service or work carried out or provided by the rating authority immediately before approval of the scheme.
(3)
Without prejudice to the generality of subsection (2)(a), a BID scheme may include plans or initiatives respecting any of the following projects, services or works:
(a)
the provision, improvement or support in the business improvement district of any of the matters described in Schedule 13;
(b)
the improvement or beautification of streets or footpaths in the business improvement district or any land, buildings or other structures in it;
(c)
the removal of graffiti from streets or footpaths in the business improvement district or any land, buildings or other structures in it;
(d)
the carrying out of studies or making of reports respecting the business improvement district;
(e)
the promotion of tourism in the business improvement district or otherwise marketing or promoting activities, performances, events or use of amenity or facilities in the business improvement district.
(4)
A rating authority may not approve a scheme for implementation under subsection (1)(b) unless—
(a)
the terms of the scheme provide that, subject to section 129S (respecting early termination), the scheme is to operate for at least one year from the time it is to come into force,
(b)
the scheme has been made available to the public in accordance with section 129D and submissions from the public have been invited in accordance with section 129E,
(c)
a ratepayer plebiscite has been held in respect of the scheme and a majority of the ratepayers who vote in the plebiscite vote in favour of its implementation, and
(d)
having regard to submissions referred to in paragraph (b), the rating authority is of the opinion that the scheme is appropriate and does not conflict in a material way with the interests of the local community.
(5)
It is necessary for the passing of a resolution under subsection (1) that at least one-third of the total number of members of the authority concerned vote in favour of the resolution.
(6)
A BID scheme—
(a)
comes into force on the date that—
(i)
is agreed between the rating authority and the BID company responsible for the scheme, and
(ii)
is specified in the resolution approving the scheme under subsection (1),
and
(7)
he 5 year limit in subsection (6)(b) does not prevent a BID scheme being approved under subsection (1) for renewal for one or more further periods, each not exceeding 5 years, provided that the conditions under subsection (4) are met each time the scheme is renewed.
(8)
A rating authority may not do any of the following in respect of a business improvement district for which a BID scheme is in effect:
