Legislation Notes

Crimes Amendment Bill No 6 Passed

This cracks down on hackers by making it illegal to intercept, access, use or damage data held on computers without proper authorisation. People attempting to put an Internet site offline, or to change or delete some else's data, face maximum sentences of seven years' jail.

There are new offences relating to theft and fraud committed through the use of computers, and it is now illegal to sell, distribute or possess computer hacking programs. It is also illegal for unauthorised people to intercept faxes or emails not intended for them. The police may intercept when acting under a warrant, but are required to specify a person, place or specific electronic address, phone number or similar facility, and must observe safeguards to ensure personal privacy is balanced with the rights of the State to protect its citizens.

Thanks to "Law Scene"

Smokefree Bill Passes Second Vote

Legislation banning smoking in bars, restaurants, cafes and all indoor workplaces has passed a second vote in Parliament comfortably. The Smokefree Environments (Enhanced Protection) Amendment Bill passed by 76 votes to 39, with the backing of all Government, Greens and United Future MPs. Three National and four NZ First MPs also supported the legislation.

It was the first time MPs had voted on the bill since a select committee toughened its provisions after hearing public submissions. It now progresses to the next stage where it will be debated clause by clause before a final vote at a later date.

Thanks to "NewsRoom"

FTA Changes Strengthen Commerce Commission

Recent changes to the Fair Trading Act have extended the Commerce Commission's powers to deal with misleading and unfair trading practices by businesses. The amendments, which were passed in Parliament earlier last month, double the maximum penalties for offences from $30,000 to $60,000 for individuals and $100,000 to $200,000 for companies (see July Rural Bulletin for some background information).

The provisions relating to new information gathering powers and the extension of search powers means that the Commission can now, by serving a notice, require businesses to provide information and documents relating to an investigation. In addition, the Commission will be able to use a search warrant to find out the extent of offending, such as the amount of money made from the activity. It will no longer be limited to finding information to establish an offence.

Payments to Local Authorities: GST Clarification

Legislation will be introduced to clarify GST law in relation to certain payments imposed by local authorities under the Resource Management Act (RMA).

Local authorities may seek financial contributions from applicants for resource consent if, for example, development work such as a new subdivision requires them to provide additional new infrastructure under their district plan. These financial contributions should be subject to GST, in the same way that resource consent applications fees are. Although most local authorities have treated financial contributions in this way, the law on this point is not entirely clear. The proposed legislation will clarify that they do indeed attract GST.

Similar clarifications will also ensure that development contributions under the Local Government Act are subject to GST, and that late payment penalties imposed by local authorities under the Local Government (Rating) Act are exempt from GST, both with effect from 1 July 2003.

Proposed Changes to Securities Trading Law

Recently announced proposals to strengthen NZ's securities trading law involve the Government planning to introduce:

  • A New Insider-trading Regime. The new regime would focus on preventing the negative market impact of using inside information rather than focusing on breaching fiduciary duty, as with the current regime. The new regime will cover a wider range of behaviours that are widely acknowledged as being insider trading. The regime will contain some exceptions to ensure that certain types of behaviour, which are necessary for market efficiency, are still allowed to occur. This includes, among others, exceptions for research and analysis, takeovers, underwriters, Chinese walls and transactions where the counter-party to the transaction knows of the inside information.
  • More Prohibitions on Market Manipulation. Including a general ban on misleading or deceptive conduct relating to securities and more specific bans on misleading or deceptive statements and the creation of a false or misleading appearance as to the supply of, or demand for, or the price or value of a security.
  • Amendments to the Law Relating to Investment Advisers. This is to improve the disclosure regime, make the illegal offers of securities an offence, strengthen the enforcement of investment adviser law, include sufficient flexibility to deal with special circumstances and reduce compliance costs and increase certainty.
  • Tougher Penalties and Remedies for Breaching Securities Trading Law. This includes, among other things, introducing criminal and civil penalties and making the remedies available for breaches of the Securities Act and Securities Markets Act consistent across the board. The reforms would also ensure that the Commission has an enforcement role in all breaches of securities law.

Also planned are minor improvements to the Substantial Security Holder regime, and improvements to the application of securities trading law (in the way the law applies to certain financial products and entities).

Ministry of Economic Development officials are now drafting a Securities Trading Law Reform Bill. Targeted consultation will be carried out on the draft Bill later this year before it is introduced to Parliament.

Cabinet papers relating to these decisions can be viewed online at www.med.govt.nz/buslt/bus_pol/bus_law/securities/index.html

Marine Farm Moratorium May Be Extended

The two-year moratorium on new marine farms may have to be extended beyond next March because of the seabed and foreshore ownership controversy. Both aquaculture law reform and seabed and foreshore ownership are about access to coastal space, so there has to be consistency - in terms of any legal structure put in place - between the two. Extending the moratorium would require separate legislation.

The moratorium on consent applications was designed to head off a feared rush for coastal space to beat the tighter controls in the Government's proposed new regime. An aquaculture law reform bill was first due in Parliament in April last year but several delays, including Parliament's Scampi inquiry, moved the target introduction date to this month. Now the Government's decision to legislate to clarify wider ownership and access issues around the seabed and foreshore, following the Court of Appeal case opening the way for Maori to pursue customary title claims, has further delayed the bill.

The new aquaculture law proposes giving regional councils greater power to manage and control marine farms, and will streamline the approval process into a single permit. Aquaculture Management Areas would be established and councils would be able to restrict aquaculture within them. Before the seabed issue arose, the Government and officials had been working on a provision in the bill to give the Conservation Minister power to intervene in Aquaculture Management Areas to protect Maori interests or potential claims without delaying the consent process.

Thanks to "NewsRoom"

Review of Whistleblowers Act

The Protected Disclosures Act came into force on 1 January 2001, and contains a provision for a review of its operation by the end of 2003. The Act provides protection for those in the private or public sector who disclose information about serious wrong-doing, such as fraud, actions causing a serious risk to public health and safety, or to the environment. Mary Scholtens QC has been appointed as reviewer and must report buy 31 October. More information can be found at www.ssc.govt.nz.

Thanks to "Law Scene"

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