TELECOMMUNICATIONS LEGISLATION AMENDMENT (FUTURE PROOFING AND OTHER MEASURES) BILL 2005

i Telecommunications Legislation Amendment (Future Proofing and Other Measures) Bill

2005 No. , 2005

Contents

Short title.......................................................................................1

Commencement .............................................................................1

Schedule(s)....................................................................................2

Schedule 1--Communications Fund and Connect Australia

package

Telecommunications (Consumer Protection and Service Standards)

Act 1999

Schedule 2--Independent reviews of regional

telecommunications etc.

Telecommunications (Consumer Protection and Service Standards)

Act 1999

Schedule 3--Costs of development of consumer-related

industry codes

Telecommunications Act 1997

Schedule 4--Other amendments

Telstra Corporation Act 1991

Telecommunications Legislation Amendment (Future Proofing and Other Measures) Bill 2005

No. , 2005 1

A Bill for an Act to amend the law relating to

telecommunications, and for other purposes

The Parliament of Australia enacts:

1 Short title

This Act may be cited as the Telecommunications Legislation

Amendment (Future Proofing and Other Measures) Act 2005.

2 Commencement

(1) Each provision of this Act specified in column 1 of the table

commences, or is taken to have commenced, in accordance with

column 2 of the table. Any other statement in column 2 has effect

according to its terms.

2 Telecommunications Legislation Amendment (Future Proofing and Other Measures) Bill

2005 No. , 2005

Commencement information

Column 1

Column 2

Column 3

Provision(s)

Commencement

Date/Details

1. Sections 1 to 3

and anything in

this Act not

elsewhere covered

by this table

The day on which this Act receives the

Royal Assent.

2. Schedules 1

and 2

The day on which this Act receives the

Royal Assent.

3. Schedule 3

A single day to be fixed by Proclamation.

However, if any of the provision(s) do not

commence within the period of 6 months

beginning on the day on which this Act

receives the Royal Assent, they commence

on the first day after the end of that period.

4. Schedule 4,

items 1 to 6

The later of:

(a) the start of the day on which this Act

receives the Royal Assent; and

(b) immediately after the commencement of

Part 1 of Schedule 1 to the Telstra

(Transition to Full Private Ownership)

Act 2005.

However, the provision(s) do not commence

at all if the event mentioned in paragraph (b)

does not occur.

5. Schedule 4,

item 7

The day on which this Act receives the

Royal Assent.

Note:

This table relates only to the provisions of this Act as originally

passed by the Parliament and assented to. It will not be expanded to

deal with provisions inserted in this Act after assent.

(2) Column 3 of the table contains additional information that is not

part of this Act. Information in this column may be added to or

edited in any published version of this Act.

3 Schedule(s)

Each Act that is specified in a Schedule to this Act is amended or

repealed as set out in the applicable items in the Schedule

Schedule 1 Communications Fund and Connect Australia package

4 Telecommunications Legislation Amendment (Future Proofing and Other Measures) Bill

2005 No. , 2005

Schedule 1--Communications Fund and

Connect Australia package

Telecommunications (Consumer Protection and Service

Standards) Act 1999

1 Before Part 10

Insert:

Part 9C--Communications Fund

Division 1--Introduction

158ZE Simplified outline

The following is a simplified outline of this Part:

�

This Part sets up the Communications Fund.

�

Money in the Fund will be used to finance the implementation

of the Commonwealth Government's response to the

recommendations of the Regional Telecommunications

Independent Review Committee.

�

Money in the Fund may be invested in financial assets.

158ZF Definitions

In this Part:

debenture has the same meaning as in the Corporations Act 2001.

derivative has the same meaning as in Chapter 7 of the

Corporations Act 2001.

financial asset means:

(a) a debenture, stock or bond issued by a government; or

(b) a share in, or debenture of, a body; or

Communications Fund and Connect Australia package Schedule 1

Telecommunications Legislation Amendment (Future Proofing and Other Measures) Bill 2005

No. , 2005 5

(d) a unit of a debenture, share or interest covered by

paragraph (a), (b) or (c);

and includes:

(e) a derivative; and

(f) an asset (other than tangible property) specified in the

regulations.

Fund means the Communications Fund established by

section 158ZG.

Fund Account means the Communications Fund Special Account

established by section 158ZH.

investment means any mode of application of money or other

property for the purpose of gaining a return (whether by way of

income, capital gain or any other form of return).

investment of the Fund means a financial asset that, under

subsection 158ZK(2), 158ZO(3), 158ZQ(2) or section 158ZR, is

taken to be an investment of the Fund.

managed investment scheme has the same meaning as in the

Corporations Act 2001.

realise includes redeem or dispose of.

responsible Ministers means:

(a) the Minister administering the Financial Management and

Accountability Act 1997; and

(b) the Minister administering this Act.

State includes the Australian Capital Territory and the Northern

Territory.

unit, in relation to a share, debenture or other interest, has the same

meaning as in the Corporations Act 2001.

Division 2--Establishment of the Communications Fund

158ZG Establishment of the Communications Fund

(1) The Communications Fund is established by this section.

Schedule 1 Communications Fund and Connect Australia package

6 Telecommunications Legislation Amendment (Future Proofing and Other Measures) Bill

2005 No. , 2005

(2) The Communications Fund consists of:

(a) the Fund Account; and

(b) the investments of the Fund.

158ZH Establishment of the Communications Fund Special Account

(1) The Communications Fund Special Account is established by this

section.

(2) The Fund Account is a Special Account for the purposes of the

Financial Management and Accountability Act 1997.

158ZI Purposes of the Fund Account

The purposes of the Fund Account are as follows:

(a) the purpose of implementing the Commonwealth

Government's response to any of the recommendations set

out in a report under section 158Q;

(b) a purpose incidental or ancillary to the above purpose;

above purposes.

Note:

Section 158Q deals with reports of reviews by the Regional

Telecommunications Independent Review Committee.

158ZJ Credit of amounts to the Fund Account--Ministerial

determination

(1) The responsible Ministers may, by writing, determine that a

specified amount is to be credited to the Fund Account on a

specified day.

(2) The total of the amounts specified in determinations under

subsection (1) must not exceed $2 billion.

(3) A determination under subsection (1) is not a legislative instrument

for the purposes of the Legislative Instruments Act 2003.

158ZK Transfer of financial assets to the Fund

(1) This section applies to a financial asset of the Commonwealth.

(2) The responsible Ministers may, by writing, determine that:

Communications Fund and Connect Australia package Schedule 1

Telecommunications Legislation Amendment (Future Proofing and Other Measures) Bill 2005

No. , 2005 7

(a) a specified financial asset; or

(b) each of 2 or more specified financial assets;

is taken to be an investment of the Fund.

(3) A determination under subsection (2) has effect accordingly.

(4) A determination under subsection (2) is irrevocable.

(5) If a determination under subsection (2) about a financial asset or

financial assets is in force, this Act does not prevent the realisation

of the asset or assets in accordance with section 158ZP.

(6) A determination under subsection (2) is not a legislative instrument

for the purposes of the Legislative Instruments Act 2003.

(7) To avoid doubt, a determination under subsection (2) is not a

Telstra sale scheme for the purposes of the Telstra Corporation Act

1991.

158ZL Grant of financial assistance to a State

(1) This section applies if:

(a) an amount is to be debited from the Fund Account for the

purpose of making a grant of financial assistance to a State;

and

(b) the grant is covered by paragraph 158ZI(c).

(2) The terms and conditions on which that financial assistance is

granted are to be set out in a written agreement between the

Commonwealth and the State.

(3) An agreement under subsection (2) may be entered into by the

Secretary of the Department on behalf of the Commonwealth.

158ZM Grant of financial assistance to a person other than a State

(1) This section applies if:

(a) an amount is to be debited from the Fund Account for the

purpose of making a grant of financial assistance to a person

other than a State; and

(b) the grant is covered by paragraph 158ZI(c).

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8 Telecommunications Legislation Amendment (Future Proofing and Other Measures) Bill

2005 No. , 2005

(2) The terms and conditions on which that financial assistance is

granted are to be set out in a written agreement between the

Commonwealth and the person.

(3) An agreement under subsection (2) may be entered into by the

Secretary of the Department on behalf of the Commonwealth.

158ZN Delegation by Secretary of the Department

(1) The Secretary of the Department may, by writing, delegate to an

SES employee, or acting SES employee, in the Department all or

any of the powers conferred on the Secretary by this Division.

(2) The delegate is, in the exercise of the power delegated under

subsection (1), subject to the written directions of the Secretary of

the Department.

Division 3--Investment of the Communications Fund

158ZO Investment of the Fund

(1) The responsible Ministers may authorise the investment of money

standing to the credit of the Fund Account in any financial asset.

(2) Investments under subsection (1) are to be made in the name of the

Commonwealth.

(3) Investments under subsection (1) are taken to be investments of the

Fund.

(4) The Consolidated Revenue Fund is appropriated as necessary for

the purposes of this section.

(5) This section does not authorise the acquisition of a derivative.

Note:

For acquisition of derivatives, see section 158ZQ.

158ZP Management of investments of the Fund

(1) Income derived from an investment of the Fund is to be credited to

the Fund Account.

(2) A return of capital, or any other financial distribution, relating to

an investment of the Fund is to be credited to the Fund Account.

Communications Fund and Connect Australia package Schedule 1

Telecommunications Legislation Amendment (Future Proofing and Other Measures) Bill 2005

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(3) Expenses of an investment of the Fund are to be debited from the

Fund Account.

(4) The responsible Ministers may authorise the realisation of an

investment of the Fund.

(5) Upon realisation of an investment of the Fund, the proceeds of the

investment are to be credited to the Fund Account.

(6) At any time before an investment of the Fund matures, the

responsible Ministers may authorise the re-investment of the

proceeds upon maturity in an investment with the same entity.

Note:

The proceeds of investment of the original investment will not become

public money when the investment matures because the proceeds will

not be received by or on behalf of the Commonwealth.

(7) The Consolidated Revenue Fund is appropriated as necessary for

the purposes of this section.

(8) Section 39 of the Financial Management and Accountability Act

1997 does not apply to an investment of the Fund.

158ZQ Derivatives

(1) The responsible Ministers may authorise the acquisition of a

derivative for the purpose of:

(a) enhancing or protecting the value of an investment of the

Fund (other than a derivative); or

(b) enhancing or protecting the return on an investment of the

Fund (other than a derivative).

(2) A derivative acquired under subsection (1) is taken to be an

investment of the Fund.

(3) A derivative acquired under subsection (1) is to be held in the

name of the Commonwealth.

(4) The cost of acquiring a derivative under subsection (1) is to be

debited from the Fund Account.

(5) The Consolidated Revenue Fund is appropriated as necessary for

the purposes of this section.

Schedule 1 Communications Fund and Connect Australia package

10 Telecommunications Legislation Amendment (Future Proofing and Other Measures)

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158ZR Bonus shares etc.

If, as a result of:

(a) the Commonwealth's holding of an investment of the Fund;

(b) the exercise of any rights or powers conferred on the

Commonwealth in its capacity as the holder of an investment

of the Fund;

the Commonwealth becomes the holder of a financial asset, that

financial asset is taken to be an investment of the Fund.

2 After section 159A

Insert:

159B Connect Australia package

(1) The Parliament acknowledges the Commonwealth Government's

intention to introduce legislation to appropriate $1.1 billion for the

Connect Australia package.

Note:

The Connect Australia package was announced by the Minister on

17 August 2005.

(2) The Parliament also acknowledges the Commonwealth

Government's intention that the $1.1 billion for the Connect

Australia package will be in addition to the Communications Fund.

Independent reviews of regional telecommunications etc. Schedule 2

Telecommunications Legislation Amendment (Future Proofing and Other Measures) Bill 2005

No. , 2005 11

Schedule 2--Independent reviews of regional

telecommunications etc.

Telecommunications (Consumer Protection and Service

Standards) Act 1999

1 Subsection 5(2)

Insert:

RTIRC means the Regional Telecommunications Independent

Review Committee established by section 158R.

2 Subsection 5(2)

Insert:

RTIRC Chair means the Chair of the Regional

Telecommunications Independent Review Committee.

3 Subsection 5(2)

Insert:

RTIRC member means a member of the Regional

Telecommunications Independent Review Committee, and

includes the RTIRC Chair.

4 After Part 9A

Insert:

Schedule 2 Independent reviews of regional telecommunications etc.

12 Telecommunications Legislation Amendment (Future Proofing and Other Measures)

Bill 2005 No. , 2005

Part 9B--Independent reviews of regional

telecommunications

Division 1--Independent reviews of regional

telecommunications

158P Reviews of regional telecommunications to be conducted by

the RTIRC

(1) The RTIRC must conduct reviews of the adequacy of

telecommunications services in regional, rural and remote parts of

Australia.

Note:

RTIRC means the Regional Telecommunications Independent Review

Committee established by section 158R.

(2) In determining the adequacy of those services, the RTIRC must

have regard to whether people in regional, rural and remote parts of

Australia have equitable access to telecommunications services

that are:

(a) significant to people in those parts of Australia; and

(b) currently available in one or more urban parts of Australia.

Timing of reviews

(3) The first review must start:

(a) before the end of 2008; or

(b) if, before 31 December 2008, the Minister makes a written

determination specifying an earlier day--as soon as

practicable after that earlier day.

(4) Each subsequent review must start as soon as practicable after the

day notified to the RTIRC by the Minister in relation to that

review. The day notified by the Minister must be within 3 years

after the completion of the previous review. For this purpose, a

review is completed when the report of the review is given to the

Minister under section 158Q.

Consultation

(5) In conducting a review, the RTIRC must make provision for:

(a) public consultation; and

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(b) consultation with people in regional, rural and remote parts

of Australia.

Relevant matters

(6) In conducting a review, the RTIRC must have regard to:

(a) any policies of the Commonwealth Government notified to

the RTIRC by the Minister; and

(b) such other matters as the RTIRC considers relevant.

Determination

(7) Before making a determination under paragraph (3)(b), the

Minister must consult:

(a) the Prime Minister; and

(b) the Treasurer; and

Accountability Act 1997; and

(d) the Minister administering the Urban and Regional

Development (Financial Assistance) Act 1974.

(8) A determination under paragraph (3)(b) is a legislative instrument

for the purposes of the Legislative Instruments Act 2003, but

section 42 of that Act does not apply to the determination.

Australia

(9) Section 11 of the Telecommunications Act 1997 (as applied by

section 7 of this Act) does not apply to a reference in this section to

Australia.

Definitions

(10) In this section:

Australia does not include the eligible Territories.

telecommunications services includes:

(a) carriage services; and

(b) services provided by means of carriage services.

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14 Telecommunications Legislation Amendment (Future Proofing and Other Measures)

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158Q Report of review

(1) The RTIRC must:

(a) prepare a report of a review under section 158P; and

(b) give the report to the Minister.

(2) The Minister must cause copies of the report to be tabled in each

House of the Parliament within 15 sitting days of that House after

receiving the report.

Recommendations

(3) The report may set out recommendations to the Commonwealth

Government.

(4) In formulating a recommendation that the Commonwealth

Government should take particular action, the RTIRC must assess

the costs and benefits of that action.

(5) Subsection (4) does not prevent the RTIRC from taking other

matters into account in formulating a recommendation.

Government response to recommendations

(6) If a report sets out one or more recommendations to the

Commonwealth Government:

(a) as soon as practicable after receiving the report, the Minister

must cause to be prepared a statement setting out the

Commonwealth Government's response to the

recommendations; and

(b) within 6 months after receiving the report, the Minister must

cause copies of the statement to be tabled in each House of

the Parliament.

(7) The Commonwealth Government's response to the

recommendations may have regard to the views of the following:

(a) participants in sections of the telecommunications industry

(within the meaning of Part 6 of the Telecommunications Act

1997);

(b) the ACMA;

(d) the Telecommunications Industry Ombudsman;

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No. , 2005 15

(e) bodies or associations that represent the interests of

consumers;

(f) such other persons as the Minister considers relevant.

Division 2--Regional Telecommunications Independent

Review Committee (RTIRC)

158R

Establishment of the RTIRC

There is to be a Regional Telecommunications Independent

Review Committee.

158S Functions of

the

RTIRC

The RTIRC has the functions that are conferred on it by this Part.

158T Membership of the RTIRC

(1) The RTIRC is to consist of a Chair and at least 2 other members.

(2) A person may only be appointed as an RTIRC member if it appears

to the Minister that the person has knowledge of, or experience in:

(a) matters affecting regional, rural and remote parts of

Australia; or

(b) telecommunications.

(3) The Minister must ensure that:

(a) the RTIRC Chair is not a person covered by subsection (4);

and

(b) a majority of the other RTIRC members are not persons

covered by subsection (4).

(4) This subsection applies to the following persons:

(a) an employee of the Commonwealth;

(b) an employee of an authority of the Commonwealth;

Commonwealth.

(5) The Minister must ensure that no RTIRC member is:

(a) a carriage service provider; or

(b) a partner in a carriage service provider partnership; or

Schedule 2 Independent reviews of regional telecommunications etc.

16 Telecommunications Legislation Amendment (Future Proofing and Other Measures)

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(d) an officer or employee of a carriage service provider; or

(e) an officer or employee of a partner in a carrier partnership; or

(f) an officer or employee of a partner in a carriage service

provider partnership; or

(g) an officer or employee of a body corporate, where a related

body corporate is:

(i) a carrier; or

(ii) a carriage service provider; or

(iii) a partner in a carrier partnership; or

(iv) a partner in a carriage service provider partnership.

(6) Section 11 of the Telecommunications Act 1997 (as applied by

section 7 of this Act) does not apply to a reference in this section to

Australia.

(7) In this section:

Australia does not include the eligible Territories.

carriage service provider partnership means a partnership that is a

carriage service provider.

carrier partnership means a partnership that is a carrier.

related body corporate has the same meaning as in the

Corporations Act 2001.

158U Appointment of RTIRC members

(1) The RTIRC members are to be appointed by the Minister by

written instrument.

(2) An RTIRC member holds office for the period specified in the

instrument of appointment. The period must not exceed 4 years.

(3) An RTIRC member holds office on a part-time basis.

158V Acting appointments--RTIRC Chair

(1) The Minister may appoint an RTIRC member to act as the RTIRC

Chair:

Independent reviews of regional telecommunications etc. Schedule 2

Telecommunications Legislation Amendment (Future Proofing and Other Measures) Bill 2005

No. , 2005 17

(a) during a vacancy in the office of the RTIRC Chair, whether

or not an appointment has previously been made to the

office; or

(b) during any period, or during all periods, when the RTIRC

Chair is absent from duty or from Australia, or is, for any

reason, unable to perform the duties of the office.

(2) Anything done by or in relation to a person purporting to act under

an appointment is not invalid merely because:

(a) the occasion for the appointment had not arisen; or

(b) there was a defect or irregularity in connection with the

appointment; or

(d) the occasion to act had not arisen or had ceased.

158W Procedures

(1) The regulations may prescribe the procedures to be followed at or

in relation to meetings of the RTIRC, including matters relating to

the following:

(a) the convening of meetings of the RTIRC;

(b) the number of RTIRC members who are to constitute a

quorum;

the RTIRC in the absence of the RTIRC Chair;

(d) the manner in which questions arising at a meeting of the

RTIRC are to be decided.

(2) A resolution is taken to have been passed at a meeting of the

RTIRC if:

(a) without meeting, a majority of RTIRC members indicate

agreement with the resolution in accordance with the method

determined by the RTIRC under subsection (3); and

(b) all RTIRC members were informed of the proposed

resolution, or reasonable efforts had been made to inform all

RTIRC members of the proposed resolution.

(3) Subsection (2) applies only if the RTIRC:

(a) determines that it applies; and

(b) determines the method by which RTIRC members are to

indicate agreement with resolutions.

Schedule 2 Independent reviews of regional telecommunications etc.

18 Telecommunications Legislation Amendment (Future Proofing and Other Measures)

Bill 2005 No. , 2005

158X Disclosure of interests

(1) An RTIRC member who has a material personal interest in a

matter being considered by the RTIRC must, as soon as possible

after the relevant facts have come to the member's knowledge,

disclose the nature of the interest at a meeting of the RTIRC.

(2) The disclosure is to be recorded in the minutes of the meeting and,

unless the Minister or the RTIRC otherwise determines, the RTIRC

member must not:

(a) be present during any deliberation by the RTIRC about that

matter; or

(b) take part in any decision of the RTIRC relating to that matter.

(3) For the purposes of the making of a determination by the RTIRC

under subsection (2) in relation to an RTIRC member who has

made a disclosure under subsection (1), an RTIRC member who

has an interest in the matter to which the disclosure relates must

not:

(a) be present during any deliberation of the RTIRC for the

purposes of making the determination; or

(b) take part in the making by the RTIRC of the determination.

158Y Remuneration and allowances

(1) An RTIRC member is to be paid the remuneration that is

determined by the Remuneration Tribunal. If no determination of

that remuneration by the Tribunal is in operation, the member is to

be paid the remuneration that is prescribed.

(2) An RTIRC member is to be paid the allowances that are

prescribed.

(3) This section has effect subject to the Remuneration Tribunal Act

1973.

158Z Leave of absence

(1) The Minister may grant leave of absence to the RTIRC Chair on

the terms and conditions that the Minister determines.

Independent reviews of regional telecommunications etc. Schedule 2

Telecommunications Legislation Amendment (Future Proofing and Other Measures) Bill 2005

No. , 2005 19

(2) The RTIRC Chair may grant leave of absence to an RTIRC

member on the terms and conditions that the RTIRC Chair

determines.

158ZA Resignation

An RTIRC member may resign his or her appointment by giving

the Minister a written resignation.

158ZB Termination of appointment

(1) The Minister may terminate the appointment of an RTIRC member

for misbehaviour or physical or mental incapacity.

(2) The Minister may terminate the appointment of an RTIRC member

if:

(a) the RTIRC member:

(i) becomes bankrupt; or

(ii) applies to take the benefit of any law for the relief of

bankrupt or insolvent debtors; or

(iii) compounds with his or her creditors; or

(iv) makes an assignment of remuneration for the benefit of

his or her creditors; or

(b) the RTIRC member is absent, except on leave of absence, for

3 consecutive meetings of the RTIRC; or

comply with section 158X.

(3) The Minister may terminate the appointment of the RTIRC Chair if

the RTIRC Chair becomes a person covered by subsection

158T(4).

(4) The Minister may terminate the appointment of an RTIRC member

if the RTIRC member becomes a person covered by paragraph

158T(5)(a), (b), (c), (d), (e), (f) or (g).

158ZC Other terms and conditions

An RTIRC member holds office on the terms and conditions (if

any) in relation to matters not covered by this Act that are

determined by the Minister.

Schedule 2 Independent reviews of regional telecommunications etc.

20 Telecommunications Legislation Amendment (Future Proofing and Other Measures)

Bill 2005 No. , 2005

158ZD Assistance to RTIRC

(1) Any or all of the following:

(a) the ACMA;

(b) the ACCC;

(d) any other Department, agency or authority of the

Commonwealth;

may assist the RTIRC in the performance of its functions.

(2) The assistance may include the following:

(a) the provision of information;

(b) the provision of advice;

secretariat services and clerical assistance).

(3) A reference in Parts 26 and 27 of the Telecommunications Act

1997 to the ACMA's telecommunications functions includes a

reference to the function conferred on the ACMA by

subsection (1).

Costs of development of consumer-related industry codes Schedule 3

Telecommunications Legislation Amendment (Future Proofing and Other Measures) Bill 2005

No. , 2005 21

Schedule 3--Costs of development of

consumer-related industry codes

Telecommunications Act 1997

1 After Division 6 of Part 6

Insert:

Division 6A--Reimbursement of costs of development of

consumer-related industry codes

136A Application for eligibility for reimbursement of costs of

development of consumer-related industry code

(1) If a body or association proposes to develop an industry code that:

(a) applies to participants in a particular section of the

telecommunications industry; and

(b) deals with one or more matters relating to the

telecommunications activities of those participants; and

the relationship between carriage service providers and their

retail customers;

the body or association may apply to the ACMA for a declaration

that the body or association is eligible for reimbursement of

refundable costs incurred by it in developing the code.

Note:

For refundable cost, see section 136E.

Form of application etc.

(2) An application must be:

(a) in writing; and

(b) in accordance with the form approved in writing by the

ACMA; and

(i) an estimate of the total of the refundable costs likely to

be incurred by the body or association in developing the

code; and

Schedule 3 Costs of development of consumer-related industry codes

22 Telecommunications Legislation Amendment (Future Proofing and Other Measures)

Bill 2005 No. , 2005

(ii) a statement breaking down that estimate into categories

of refundable costs.

Further information

(3) The ACMA may, within 20 business days after an application is

made, request the applicant to give the ACMA, within the period

specified in the request, further information about the application.

(4) The ACMA may refuse to consider the application until the

applicant gives the ACMA the information.

Definition

(5) In this section:

business day means a day on which the ACMA is open for

business in the Australian Capital Territory and in Victoria.

136B Declaration of eligibility for reimbursement of costs of

development of consumer-related industry code

(1) If a body or association makes an application under subsection

136A(1) for a declaration in relation to a code, the ACMA must

make the declaration if it is satisfied that:

(a) the body or association represents the section of the

telecommunications industry referred to in paragraph

136A(1)(a); and

(b) the code will deal wholly or mainly with one or more matters

relating to the relationship between carriage service providers

and their retail customers; and

application, is likely to ensure that the interests of those retail

customers are adequately represented in relation to the

development of the code; and

(d) the total of the refundable costs likely to be incurred by the

body or association in developing the code, as set out in the

estimate that accompanied the application, is reasonable.

(2) If the ACMA is not satisfied as to the matters set out in

subsection (1), the ACMA must, by written notice given to the

applicant, refuse to make the declaration.

Costs of development of consumer-related industry codes Schedule 3

Telecommunications Legislation Amendment (Future Proofing and Other Measures) Bill 2005

No. , 2005 23

(3) A declaration under this section is irrevocable, and remains in

force for 2 years.

(4) A declaration under this section is not a legislative instrument for

the purposes of the Legislative Instruments Act 2003.

136C Reimbursement of costs of developing consumer-related

industry code

Reimbursement of costs

(1) If:

(a) a section 136B declaration was made in relation to the

development of an industry code by a body or association;

and

(b) when the section 136B declaration was in force, the body or

association gave a copy of the code to the ACMA under

section 117; and

with one or more matters relating to the relationship between

carriage service providers and their retail customers; and

(d) the ACMA is satisfied that the process for the development

of the code ensured that the interests of those retail customers

were adequately represented in relation to the development of

the code; and

(e) the copy of the code was accompanied by:

(i) a written statement itemising one or more costs incurred

by the body or association in developing the code; and

(ii) a written claim for reimbursement of those costs; and

(iii) a written declaration by an approved auditor that he or

she is of the opinion that the subparagraph (i) statement

complies with the approved auditing requirements; and

(iv) a written statement describing the process for the

development of the code; and

(f) the ACMA is satisfied that each of the costs itemised in the

subparagraph (e)(i) statement:

(i) is a refundable cost incurred by the body or association

in developing the code; and

(ii) was incurred when the section 136B declaration was in

force;

Schedule 3 Costs of development of consumer-related industry codes

24 Telecommunications Legislation Amendment (Future Proofing and Other Measures)

Bill 2005 No. , 2005

the ACMA must, by written notice given to the body or

association, determine that the body or association is entitled to be

paid a specified amount.

Note:

For refundable cost, see section 136E.

(2) The specified amount must be equal to whichever is the lesser of

the following:

(a) the total of the costs itemised in the subparagraph (1)(e)(i)

statement;

(b) the estimate that accompanied the application for the

section 136B declaration.

(3) The ACMA, on behalf of the Commonwealth, must pay the

specified amount to the body or association within 30 days after

the day on which the body or association was notified under

subsection (1) of its entitlement to be paid that amount.

(4) The Consolidated Revenue Fund is appropriated for payments

under this section.

Approved auditors and approved auditing requirements

(5) The ACMA may make a written determination specifying:

(a) the persons who are to be approved auditors for the purposes

of this section; and

(b) the requirements that are to be approved auditing

requirements for the purposes of this section.

Note:

For specification by class, see subsection 13(3) of the Legislative

Instruments Act 2003.

(6) A determination under subsection (5) has effect accordingly.

(7) A determination under subsection (5) is a legislative instrument for

the purposes of the Legislative Instruments Act 2003.

136D Costs--transactions between persons not at arm's length

If:

(a) a body or association has incurred a cost in connection with a

transaction where the parties to the transaction are not

dealing with each other at arm's length in relation to the

transaction; and

Costs of development of consumer-related industry codes Schedule 3

Telecommunications Legislation Amendment (Future Proofing and Other Measures) Bill 2005

No. , 2005 25

(b) apart from this section, the cost is counted for the purposes of

the application of this Division to the body or association;

and

the amount of the cost is taken, for the purposes of the application

of this Division in relation to the body or association, to be the

amount that would have been reasonable if the parties were dealing

with each other at arm's length.

136E Refundable cost

(1) For the purposes of this Division, a refundable cost incurred by a

body or association in developing a code is a cost incurred by the

body or association in developing the code other than a cost

specified in a written determination made by the ACMA under this

subsection.

Note:

For specification by class, see subsection 13(3) of the Legislative

Instruments Act 2003.

(2) A determination under subsection (1) is a legislative instrument for

the purposes of the Legislative Instruments Act 2003.

Schedule 4 Other amendments

26 Telecommunications Legislation Amendment (Future Proofing and Other Measures)

Bill 2005 No. , 2005

Schedule 4--Other amendments

Telstra Corporation Act 1991

1 After section 8AK

Insert:

8AKA Authorisation of borrowing--issue of sale-scheme hybrid

securities

To the extent to which the issue of sale-scheme hybrid securities

under a Telstra sale scheme involves a borrowing of money by the

Commonwealth, that borrowing is authorised by this section.

Note:

Section 37 of the Financial Management and Accountability Act 1997

provides that an agreement for the borrowing of money by the

Commonwealth is of no effect unless the borrowing is authorised by

an Act.

2 Subsection 8AL(2)

Omit "costs and expenses", substitute "costs, expenses and obligations".

3 At the end of subsection 8AL(2)

Add:

; (h) calls on guarantees given by the Commonwealth;

(i) obligations to make payments of amounts in relation to

sale-scheme hybrid securities issued by the Commonwealth

(for example, payments of interest).

4 Subsection 8AL(3)

Repeal the subsection.

5 Subsection 8AS(5)

Repeal the subsection.

6 Subsection 8BA(4)

Repeal the subsection.

7 Subsection 8BUA(1)

Commonwealth of Australia Bills

TELECOMMUNICATIONS LEGISLATION AMENDMENT (FUTURE PROOFING AND OTHER MEASURES) BILL 2005