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This is a Bill, not an Act. For current law, see the Acts databases.


WESTERN AUSTRALIAN RESOURCES HERITAGE FUND BILL 2007

                     Western Australia


Western Australian Resources Heritage Fund
                 Bill 2007

                        CONTENTS


  1.    Short title                                         2
  2.    Commencement                                        2
  3.    Terms used in this Act                              2
  4.    Administration                                      3
  5.    Western Australian Resources Heritage Fund
        Board                                               4
  6.    Agent of Crown                                      4
  7.    Membership                                          4
  8.    Constitution and proceedings of Board               5
  9.    Remuneration                                        5
  10.   Common seal, agents, attorneys and facsimiles of
        Board                                               5
  11.   Staff                                               6
  12.   Use of other government staff etc.                  7
  13.   Delegation by Board                                 7
  14.   Protection of members of Board, officers, etc.      8
  15.   Western Australian Resources Heritage Fund          8
  16.   Transfer of non-renewable resource revenue          8
  17.   Credits to the Fund Account                         9
  18.   Investment of moneys in the Fund                    9
  19.   Income of Fund                                      9
  20.   Inflation proofing                                 10
  21.   Operating expenses                                 10
  22.   Financial administration, audit and reporting      11
  23.   Quarterly reporting                                11
  24.   Regulations                                        11




                          197 -- 1                          page i
                           Western Australia


                     LEGISLATIVE ASSEMBLY

                 (Introduced by Hon. John Day, MLA)


  Western Australian Resources Heritage Fund
                   Bill 2007


                               A Bill for


An Act to provide for the establishment of the Western Australian
Resources Heritage Fund to ensure that a proportion of the value of
Western Australia's non-renewable resources is retained for future
generations of Western Australians.



The Parliament of Western Australia enacts as follows:




                                                              page 1
     Western Australian Resources Heritage Fund Bill 2007



     s. 1




     1.       Short title
              This is the Western Australian Resources Heritage Fund Act
              2007.

     2.       Commencement
 5            This Act comes into operation on a date to be fixed by
              proclamation.

     3.       Terms used in this Act
              In this Act unless the contrary intention appears --
              "Board" means the Western Australian Resources Heritage
10                 Fund Board constituted under section 5;
              "Fund" means the Western Australian Resources Heritage
                   Fund established by this Act;
              "Fund Account" means the Western Australian Resources
                   Heritage Fund Account established under section 11;
15            "March CPI", for a relevant financial year, means the index
                   number for the quarter ending on the last 31 March before
                   the financial year commences, as shown in the Consumer
                   Price Index Numbers (All Groups Index) for Perth
                   published by the Commonwealth Statistician under the
20                 Census and Statistics Act 1905 of the Commonwealth;
              "Minister" means the Treasurer of the State;
              "non-renewable resource revenue" means royalties received
                   by the State --
                   (a) royalties received by the State pursuant to regulations
25                        made under section 109 of the Mining Act 1978 in
                          respect of minerals or any class of minerals, obtained
                          from land that is the subject of a mining lease or
                          other mining tenement granted under the Mining Act
                          1978, or that is the subject of an application for the
30                        grant of a mining lease or other mining tenement
                          under the Mining Act 1978;

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                     Western Australian Resources Heritage Fund Bill 2007



                                                                         s. 4



              (b)    royalties received by the State pursuant to the
                     provisions of any agreement to which the State is a
                     party and under which a party to the agreement is
                     authorised or required to carry out any mining
 5                   operations, that is approved or ratified by an Act of
                     Parliament of the State;
               (c)   royalties received by the State from a permittee,
                     lessee or licensee in respect of petroleum recovered
                     in a permit area, lease area or licence area, pursuant
10                   to section 143 of the Petroleum (Submerged Lands)
                     Act 1982;
              (d)    royalties received by the State from a permittee,
                     holder of a drilling reservation, lessee or licensee in
                     respect of petroleum recovered in a permit area,
15                   drilling reservation, lease area or licence area,
                     pursuant to section 142 of the Petroleum Act 1967;
               (e)   royalties received by the State pursuant to the
                     provisions of the agreement between the State and
                     West Australian Petroleum Pty. Limited relating to
20                   Petroleum Lease 1H granted under the Petroleum Act
                     1936, as ratified by the Barrow Island Royalty
                     Variation Agreement Act 1985; and
               (f)   payments received from the Commonwealth pursuant
                     to section 129 of the Petroleum (Submerged Lands)
25                   Act 1967 of the Commonwealth, in respect of
                     royalties received by the Commonwealth under the
                     Petroleum (Submerged Lands) (Royalty) Act 1967 of
                     the Commonwealth.

     4.   Administration
30        Subject to the general direction and control of the Minister, this
          Act shall be administered by the Board.




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     Western Australian Resources Heritage Fund Bill 2007



     s. 5



     5.         Western Australian Resources Heritage Fund Board
          (1)   There is hereby established a body corporate to be called the
                Western Australian Resources Heritage Fund Board.
          (2)   The Board is a body corporate with perpetual succession.
 5        (3)   Proceedings may be taken by or against the Board in its
                corporate name.

     6.         Agent of Crown
                The Board is an agent of the Crown and enjoys the status,
                immunities and privileges of the Crown.

10   7.         Membership
          (1)   The Board consists of the following members --
                 (a) a Chair;
                 (b) 4 other ordinary members.
          (2)   The Chair and the ordinary members of the Board are to be
15              appointed by the Governor in Council.
          (3)   A person is eligible for appointment as the Chair or an ordinary
                member of the Board if the Minister is satisfied that the person
                has --
                  (a) substantial experience or expertise; and
20                (b) professional credibility and significant standing;
                in at least one of the following fields --
                  (c) investing in financial assets;
                  (d) the management of investments in financial assets;
                  (e) corporate governance.
25        (4)   The members of the Board shall be appointed for such term, not
                exceeding 3 years, as is specified in instrument of his or her
                appointment, but may from time to time be reappointed.



     page 4
                            Western Australian Resources Heritage Fund Bill 2007



                                                                                 s. 8



     8.          Constitution and proceedings of Board
                 The constitution and proceedings of the Board shall be as
                 prescribed by regulations.

     9.          Remuneration
 5               There shall be paid out of the funds of the Board to --
                  (a) the Chair; and
                  (b) an ordinary member,
                 of the Board, such remuneration and allowances as are
                 determined in his or her case by the Minister on the
10               recommendation of the Minister for Public Sector Management.

     10.         Common seal, agents, attorneys and facsimiles of Board
           (1)   The common seal of the Board shall --
                  (a) be kept in such custody as the Board directs; and
                  (b) not to be used except as authorised by the Board.
15         (2)   When a document purporting to bear the common seal of the
                 Board is produced before any court, judge or person acting
                 judicially, that court, judge or person shall, unless the contrary
                 is provided, presume that --
                    (a) the document bears that common seal; and
20                 (b) that common seal was duly affixed to that document.
           (3)   The Board may, by writing under its common seal, empower a
                 person, either generally or in respect of a specified matter or
                 specified matters, as its agent or attorney to execute deeds or
                 other instruments on its behalf, and a deed or other instrument
25               executed by such an agent or attorney on behalf of the Board
                 binds the Board and has the same effect as it if it were under the
                 common seal of the Board.




                                                                              page 5
     Western Australian Resources Heritage Fund Bill 2007



     s. 11



           (4)   For the purposes of this Act, the Board may make use of a
                 facsimile of --
                   (a) its common seal; or
                   (b) the signature of an agent or attorney empowered to
 5                       execute deeds or other instruments on its behalf under
                         subsection (3),
                 and a deed or other instrument purporting to evidence
                 indebtedness on the part of the Board and to be endorsed with
                 such a facsimile shall, until the contrary is shown, be deemed to
10               have been sealed by it or signed by the agent or attorney, as the
                 case requires.

     11.         Staff
           (1)   The power to engage and manage the staff of the Board is
                 vested in the Board.
15         (2)   The power conferred by subsection (1) --
                  (a)    includes powers to determine remuneration and other
                         terms and conditions of service and to remove, suspend
                         and discipline members of staff; and
                  (b)    does not preclude the delegation of any matter under
20                       section 13.
           (3)   The remuneration of members of staff and other terms and
                 conditions of employment shall not be less favourable than is
                 provided for in --
                   (a) an applicable award, order or agreement under the
25                       Industrial Relations Act 1979;
                   (b) the Minimum Conditions of Employment Act 1993.
           (4)   Nothing in this section affects the operation of Part VID of the
                 Industrial Relations Act 1979.




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                            Western Australian Resources Heritage Fund Bill 2007



                                                                               s. 12



     12.         Use of other government staff etc.
           (1)   The Board may by arrangement with the relevant employer
                 make use, either full-time or part-time, of the services of any
                 officer or employee --
 5                 (a) in the Public Service;
                   (b) in a State agency or instrumentality; or
                   (c) otherwise in the service of the Crown in right of the
                         State.
           (2)   The Board may by arrangement with --
10                (a) a department of the Public Service; or
                  (b) a State agency or instrumentality,
                 make use of any facilities of the department, agency or
                 instrumentality.
           (3)   An arrangement under subsection (1) or (2) shall be made on
15               such terms as are agreed by the parties.

     13.         Delegation by Board
           (1)   The Board may, either generally or as otherwise provided by the
                 instrument of delegation, delegate all or any of its powers and
                 duties under this Act, other than the power of delegation, to an
20               eligible person.
           (2)   In subsection (1) --
                 "eligible person" means --
                      (a) a person engaged under section 11; or
                      (b) a person whose services the Board is using under
25                          section 12.
           (3)   A person purporting to exercise a power or perform a duty
                 under a delegation under this section is presumed to do so, in
                 the absence of evidence to the contrary, in accordance with the
                 terms of that delegation.


                                                                             page 7
     Western Australian Resources Heritage Fund Bill 2007



     s. 14



     14.         Protection of members of Board, officers, etc.
                 No matter or thing done by any member of the Board or by any
                 officer or other person appointed or employed under the
                 provisions of this Act, if done bona fide in the exercise of
 5               powers conferred by this Act, or in the performance of duties
                 imposed under this or any other Act, shall subject that member,
                 officer or other person to any personal liability.

     15.         Western Australian Resources Heritage Fund
           (1)   For the purposes of this Act there shall be established a fund, to
10               be called "The Western Australian Resources Heritage Fund",
                 which shall be administered by the Board.
           (2)   All moneys from time to time belonging to the Fund shall be
                 credited to an account, to be called "The Western Australian
                 Heritage Resources Fund Account", which shall be kept at
15               Treasury forming part of the Trust Fund constituted under
                 section 10 of the Financial Management Act 2006.
           (3)   The Fund shall consist of --
                   (a)   non-renewable resource revenue transferred to the Fund
                         under section 16;
20                (b)    any money appropriated by Parliament for the purposes
                         of this Act, which has been credited to the Fund
                         Account in accordance with a Ministerial determination
                         under section 17;
                  (c)    income from moneys invested under section 18;
25                (d)    any other money received by the Board to be used for
                         the purposes of Fund.

     16.         Transfer of non-renewable resource revenue
           (1)   Within 28 days after 1 July 2008, and within 28 days of 1 July
                 in each subsequent year, the Minister may transfer an amount
30               from the Consolidated Account to the Fund Account, being a
                 proportion ("relevant proportion") of the total non-renewable


     page 8
                            Western Australian Resources Heritage Fund Bill 2007



                                                                              s. 17



                 resource revenue received by the State for the 12 months
                 immediately preceding 1 July in that year.
           (2)   The Minister must as soon as practicable after transferring an
                 amount in accordance with subsection (1) prepare and cause to
 5               be laid before both Houses of Parliament a report setting out the
                 amount transferred and the relevant proportion.

     17.         Credits to the Fund Account
           (1)   The Minister must, by writing, determine that any amount as
                 may be appropriated by Parliament from time to time for the
10               purpose of being credited to the Fund Account, be credited to
                 the Fund Account on a specified day.
           (2)   A determination under subclause (1) is irrevocable.

     18.         Investment of moneys in the Fund
           (1)   Subject to this section, the Board may invest amounts standing
15               to the credit of the Fund in any financial assets.
           (2)   Investments under subsection (1) are to be made in the name of
                 the Board.
           (3)   Investments under subsection (1) are taken to be investments of
                 the Fund.
20         (4)   Investments made by the Board must be made with the
                 objective of maximizing long-term financial returns.
           (5)   Subject to the regulations, when making investments the Board
                 must adhere to investment and lending policies, standards and
                 procedures that a reasonable and prudent person would apply in
25               respect of a portfolio of investments to avoid undue risk of loss
                 and obtain a reasonable return that will enable the Fund to meet
                 the objective set out in subsection (4).

     19.         Income of Fund
           (1)   The income of the Fund accrues to and forms part of the Fund.


                                                                            page 9
     Western Australian Resources Heritage Fund Bill 2007



     s. 20



           (2)   Subject to section 20, no income or capital amount forming part
                 of the Fund may be transferred or otherwise expended from the
                 Fund before 1 July 2012.
           (3)   Within 28 days after 1 July 2012, and within 28 days of 1 July
 5               in each subsequent year, the Minister may transfer the net
                 income of the Fund for the 12 months immediately preceding
                 1 July in that year less the amount to be retained in the Fund
                 under section 20, from the Fund to the Consolidated Account, to
                 be used by the State for the development of the State or
10               otherwise for the benefit of the people of the State.
           (4)   Any expenditure by the State from the Consolidated Account of
                 any amount transferred from the Fund under subsection (3) must
                 first be approved by a resolution passed by each House of
                 Parliament.

15   20.         Inflation proofing
           (1)   Subject to subsection (3), for the financial year 2012-2013 and
                 each subsequent financial year ("relevant year"), the Board
                 must retain in the Fund a proportion of the income of the Fund
                 for the immediately preceding 12 months calculated in
20               accordance with subsection (2).
           (2)   The amount for the purpose of subsection (1) is an amount equal
                 to equal to the value of the total equity of the Fund as recorded
                 in the financial statements of the Fund as at 31 March of the
                 financial year immediately preceding the relevant year (the
25               "relevant date") multiplied by the percentage variation, if any,
                 in the March CPI for the year ending on the relevant date.
           (3)   If the percentage variation in the March CPI for the purposes of
                 subsection (2) is a negative number, that negative number shall
                 be treated as if it were zero.

30   21.         Operating expenses
                 The Board may pay any operating expenses of the Fund from
                 time to time if, in the opinion of the Board, the expense is

     page 10
                      Western Australian Resources Heritage Fund Bill 2007



                                                                         s. 22



           reasonably necessary for the proper administration and
           management of the Fund.

     22.   Financial administration, audit and reporting
           The provisions of the Financial Management Act 2006
 5         regulating the financial administration, audit and reporting of
           statutory authorities apply to and in respect of the Fund and its
           operations.

     23.   Quarterly reporting
           The Minister must, as soon as practicable after the end of each
10         of the first 3 quarters of every financial year, prepare and cause
           to be laid before both Houses of Parliament a report on the
           activities of the Fund and financial statements for the preceding
           quarter.

     24.   Regulations
15         The Governor may make regulations prescribing all matters that
           are required or permitted by this Act to be prescribed, or are
           necessary or convenient to be prescribed, for giving effect to the
           purposes of this Act.


20




 


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