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Legislative Assembly- PROOF Page 1 Wednesday, 12 May 2021 Legislative Assembly- PROOF Page 1 LEGISLATIVE ASSEMBLY Wednesday, 12 May 2021 The Speaker (The Hon. Jonathan Richard O'Dea) took the chair at 09:30. The Speaker read the prayer and acknowledgement of country. Bills REAL PROPERTY AMENDMENT (CERTIFICATES OF TITLE) BILL 2021 Returned The SPEAKER: I report receipt of a message from the Legislative Council returning the bill without amendment. Announcements PROFESSIONAL DEVELOPMENT BRIEFING The SPEAKER: I remind members, electoral office staff, House department staff and ministerial staff that a professional development briefing will be held in the Preston Stanley Room or online from 12.30 p.m. today. I encourage everyone to attend to find out about some professional development opportunities available to all. Notices PRESENTATION [During the giving of notices of motions] The SPEAKER: Order! I remind members to not interject during the giving of notices of motions. Later, The SPEAKER: The member for Newtown has gone over time in giving notice of her motion. I will stop her off now. Bills BETTER REGULATION LEGISLATION AMENDMENT (MISCELLANEOUS) BILL 2021 First Reading Bill introduced on motion by Mr Kevin Anderson, read a first time and printed. Second Reading Speech Mr KEVIN ANDERSON (Tamworth—Minister for Better Regulation and Innovation) (09:46): I move: That this bill be now read a second time. The Government is pleased to introduce the Better Regulation Legislation Amendment (Miscellaneous) Bill 2021. This bill makes miscellaneous amendments to 14 principal Acts across the Better Regulation portfolio. The bill will ensure these legislative schemes can continue to operate as Parliament intended, by making minor but important amendments to modernise regulatory provisions and administrative processes, ensure the laws remain relevant and fit for purpose, strengthen consumer protection, clarify legal requirements and improve customer outcomes. The amendments contained in this bill are mainly administrative and non-contentious but will implement real positive changes to the way the people of New South Wales interact with laws and government processes. These proposed reforms have been identified through consultation with industry stakeholders, the development of supporting regulations and the day-to-day functions of the various agencies involved. Other amendments have arisen as a result of taking a stewardship approach to the legislation across the Better Regulation portfolio to ensure our legislation remains fit for purpose. This Government has already made significant inroads in modernising legislation, reducing red tape and removing unnecessary regulatory burden. For instance, in the past two years the Parliament has passed the Better Wednesday, 12 May 2021 Legislative Assembly- PROOF Page 2 Regulation Legislation Amendment Act 2019, the Racing Legislation Amendment Act 2019 and the Better Regulation Legislation Amendment Act 2020, which sought to improve the operation of a wide range of legislation in this portfolio. Almost all of the amendments contained in those Acts have commenced and are already improving the effectiveness of the law. These amendment Acts are a testament to my expectations for this bill to further deliver on this Government's commitment to the people and businesses in New South Wales. I will now turn to the amendments in the bill. First, I turn to the amendments in the bill relating to the Associations Incorporation Act 2009. The bill introduces a number of amendments seeking to provide greater flexibility, clarity and certainty for incorporated associations in New South Wales. Associations represent a diverse range of activities, from sporting clubs and music groups to charities, childcare services and migrant support services. By bringing people together for a shared purpose, associations are pivotal in weaving the social and cultural threads of the community, particularly in rural and regional areas. The Associations Incorporation Act regulates the conduct of affairs by associations. That includes the requirement to establish a committee that oversees the management of the affairs of the association. Committee members are elected or appointed by the association and hold office according to the association's constitution. These members are volunteers who offer up their time to contribute to the value of associations in bringing positive outcomes for the local community. Schedule 1.1 to the bill introduces a new provision into the Act that will enable incorporated associations to fill vacancies on their committee if the number of members is less than the number required to establish a quorum. At present, there is a level of uncertainty regarding the validity of actions taken by committee members where there are insufficient numbers to maintain a quorum. The new section 28A will address this concern by clarifying the legal capacity of committees to appoint additional members, where needed. This will strengthen members' confidence in the governance framework and enable them to carry out their day-to-day functions and responsibilities without disruption. When an association ends, the bill also provides members with greater autonomy and choice in the management of leftover assets that have been accumulated over the years using member funds. Section 65 of the Act currently requires surplus property to be distributed in accordance with a special resolution passed by members of the association. However, in many cases a special resolution is not achievable, particularly where an association has dissolved or has had its registration cancelled. The bill will amend section 65 to allow any surplus to be distributed in accordance with the association's constitution or, where the constitution does not include relevant provisions, in accordance with a special resolution or, where a special resolution cannot be passed, in accordance with a direction of the secretary. The bill also will provide greater flexibility for associations to distribute surplus funds or property upon voluntary cancellation of their registration. The Act will be amended to enable surplus funds to be distributed to members or former members of an association where those members are, at the time of distribution, an entity that is prohibited from distributing property to its members. Further, the bill will remove existing penalties in the Act that apply to former committee members or public officers who fail to hand over documents within 14 days after vacating office. The current maximum penalty of $110 does not serve as an effective deterrent against non-compliance with these provisions. Disputes arising from a breach of these requirements are also not capable of resolution by NSW Fair Trading and associations are encouraged to take civil action. By removing the inconsequential penalties, the bill will afford greater clarity to the role of Fair Trading and reduce delays for parties seeking the appropriate dispute resolution pathway. The bill also makes important amendments to the Retirement Villages Act 1999 to strengthen the rights and safeguards for more than 60,000 retirement village residents in New South Wales, while reducing operational uncertainty for the industry. Schedule 1.13 to the bill will insert a new offence provision for operators who fail to comply with current requirements to provide residents with prescribed marketing information. This includes the requirement for operators to notify residents of all offers to purchase their premises and to provide a monthly marketing report upon residents' request. There is, however, no straightforward mechanism currently under the Act to enforce these obligations. As a result, residents must resort to formal dispute resolution pathways in seeking justice, which can be administratively complex and costly. To ensure proper remedy is provided without unnecessary delay, the bill introduces a new offence provision, which will enable NSW Fair Trading to take appropriate enforcement action for non-compliance. The bill will insert also a new regulation-making power, which will provide flexibility for the agency to mandate certain matters that must be contained in a valuer's determination. The particulars will be prescribed on a case-by-case basis following the necessary regulatory impact assessment and stakeholder consultation. The bill also addresses the existing ambiguity in the Act governing the way a former retirement village occupant may apply for an exit entitlement order for the same residential premises. The bill will amend section 182AB (8) of the Act to clarify that only one application may be made following the prescribed period, not within the prescribed period, and only one further application may be made in the following six- or 12 month-period. Wednesday, 12 May 2021 Legislative Assembly- PROOF Page 3 Lastly, the bill will clarify the legal requirements around the distribution of surplus funds in a retirement village's annual account. Current industry practice indicates that residents are typically charged a recurring fee per residence, and not per resident, to cover the village's general expenses. However, the Act currently provides that surplus funds are to be distributed to each resident. The amendment in this bill will secure a fair and equitable distribution of surplus funds by requiring payments to each residence in a retirement village. I now turn to the amendments in the bill relating to the Design and Building Practitioners Act 2020. The Act was enacted to deliver on the Government's promise to provide
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