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STRATA SCHEMES MANAGEMENT AMENDMENT BILL 2003

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


STRATA SCHEMES MANAGEMENT AMENDMENT BILL 2003





                       New South Wales




Strata Schemes Management
Amendment Bill 2004


Contents

                                                                 Page
          1    Name of Act                                         2
          2    Commencement                                        2
          3    Amendment of Strata Schemes Management Act 1996
               No 138                                              2
           4   Amendment of other Act and Regulations              2
  Schedule 1   Amendment of Strata Schemes Management Act 1996     3
  Schedule 2   Amendment of Act and Regulations                   26
I certify that this PUBLIC BILL, which originated in the LEGISLATIVE ASSEMBLY,
has finally passed the LEGISLATIVE COUNCIL and the LEGISLATIVE ASSEMBLY of
NEW SOUTH WALES.


                                               Clerk of the Legislative Assembly.
                                               Legislative Assembly,
                                               Sydney,                     , 2004




                            New South Wales




Strata Schemes Management
Amendment Bill 2004

Act No       , 2004




An Act to amend the Strata Schemes Management Act 1996 to make
miscellaneous amendments with respect to the functions of owners corporations,
special requirements for the management of large strata schemes and other
matters relating to the management of strata schemes; and for other purposes.




I have examined this Bill, and find it to correspond in all respects with the Bill
as finally passed by both Houses.


                          Chairman of Committees of the Legislative Assembly.
Clause 1     Strata Schemes Management Amendment Bill 2004




The Legislature of New South Wales enacts:
 1    Name of Act
           This Act is the Strata Schemes Management Amendment Act 2004.
 2    Commencement
           This Act commences on a day or days to be appointed by
           proclamation.
 3    Amendment of Strata Schemes Management Act 1996 No 138
           The Strata Schemes Management Act 1996 is amended as set out in
           Schedule 1.
 4    Amendment of other Act and Regulations
           Each Act and Regulation specified in Schedule 2 is amended as set
           out in that Schedule.




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Amendment of Strata Schemes Management Act 1996                      Schedule 1




Schedule 1 Amendment of Strata Schemes
           Management Act 1996
                                                                        (Section 3)

[1]   Section 21 Executive committee's decisions to be decisions of
      owners corporation
      Insert ", subject to subsection (4)" after "owners corporation" in section
      21 (1).
[2]   Section 21 (4)
      Insert after section 21 (3):
            (4)    Despite any other provision of this Act, in the event of a
                   disagreement between the owners corporation and the
                   executive committee, the decision of the owners corporation
                   prevails.
[3]   Section 24 Who can exercise functions relating to the finances
      and accounts of the owners corporation?
      Omit section 24 (d). Insert instead:
                  (d) a member of CPA Australia, or a member of the
                        Institute of Chartered Accountants in Australia,
                        authorised by the owners corporation to exercise the
                        function, or
[4]   Section 27 How is a strata managing agent appointed?
      Insert after section 27 (2):
            (3)    The functions of a strata managing agent of a strata scheme
                   may be transferred to another person by the strata managing
                   agent, but only with the approval of the owners corporation
                   for the strata scheme. A person to whom those functions are
                   transferred is taken to be appointed as a strata managing agent
                   of the strata scheme concerned in accordance with this
                   section.




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[5]   Section 29A
      Insert after section 29:
      29A    Functions that may only be delegated to member of executive
             committee or strata managing agent
             (1)      The following functions of an owners corporation, executive
                      committee, chairperson, secretary or treasurer may not be
                      delegated to or conferred on any other person unless the
                      person is a member of the executive committee or a strata
                      managing agent:
                      (a) the preparation of estimates for the purposes of
                            section 75,
                      (b) the levying of contributions,
                      (c) the receiving of, acknowledging of, banking of or
                            accounting for money paid to the owners corporation,
                      (d) having custody of any money paid to the owners
                            corporation or making payments from any such money,
                      (e) the taking out of insurance required or permitted by this
                            Act,
                       (f) the conduct of meetings of the owners corporation and
                            handling of correspondence,
                      (g) the maintenance of records required to be kept under
                            this Act,
                      (h) such other functions as may be prescribed by the
                            regulations.
             (2)      This section is subject to sections 24 and 32.
                      Note. Section 24 enables some of these functions to be exercised by
                      certain other specified persons.

[6]   Section 43 What can by-laws provide for?
      Omit "This section" from section 43 (2).
      Insert instead "Subsection (1)".
[7]   Section 43 (4)
      Insert after section 43 (3):
             (4)      A by-law has no force or effect to the extent that it is
                      inconsistent with this or any other Act or law.


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 [8]   Section 45 How can an owners corporation enforce the by-laws?
       Insert at the end of the section (but before the note):
             (2)    A notice cannot be issued under this section unless a
                    resolution approving the issue of the notice, or the issue of
                    notices for the type of contravention concerned, has first been
                    passed by the owners corporation or the executive committee
                    of the owners corporation.
             (3)    Subsection (2) does not apply to the issue of a notice under
                    this section by a strata managing agent if that function has
                    been delegated to the strata managing agent in accordance
                    with this Act.
 [9]   Section 51 Application of Division
       Insert "(including, for example, a licence to use the whole or any specified
       part of the common property in a particular manner or for particular
       purposes)" after "common property" in section 51 (1) (b).
[10]   Chapter 3, Part 2, heading and introductory note
       Omit the heading and introductory note. Insert instead:

       Part 2       Maintenance, repairs, alteration and use of
                    common property and fire safety
                    inspections
                    Introductory note. This Part sets out the duties of an owners
                    corporation to maintain and repair the property of a strata scheme and
                    to arrange access for fire safety inspections. Certain powers are given to
                    an owners corporation to recover money for work required to be carried
                    out and to enter property to carry out certain necessary work. The Part
                    also deals with certain powers of an owners corporation in relation to
                    alterations or additions to common property and the granting of licences
                    over common property.

[11]   Sections 65A-65C
       Insert after section 65:
       65A   Owners corporation may make or authorise changes to
             common property
             (1)    For the purpose of improving or enhancing the common
                    property, an owners corporation or an owner of a lot may take
                    any of the following action, but only if a special resolution has


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                      first been passed at a general meeting of the owners
                      corporation that specifically authorises the taking of the
                      particular action proposed:
                      (a) add to the common property,
                      (b) alter the common property,
                      (c) erect a new structure on the common property.
             (2)      A special resolution that authorises action to be taken under
                      subsection (1) in relation to the common property by an owner
                      of a lot may specify whether the ongoing maintenance of the
                      common property once the action has been taken is the
                      responsibility of the owners corporation or the owner.
             (3)      If a special resolution under this section does not specify who
                      has the ongoing maintenance of the common property
                      concerned, the owners corporation has the responsibility for
                      the ongoing maintenance.
             (4)      A special resolution under this section that allows an owner of
                      a lot to take action in relation to certain common property and
                      provides that the ongoing maintenance of that common
                      property after the action is taken is the responsibility of the
                      owner has no effect unless:
                      (a) the owners corporation obtains the written consent of
                             the owner to the making of a by-law to provide for the
                             maintenance of the common property by the owner, and
                      (b) the owners corporation makes such a by-law.
             (5)      A by-law made for the purposes of this section:
                      (a) may require, for the maintenance of the common
                           property, the payment of money by the owner
                           concerned at specified times or as determined by the
                           owners corporation, and
                      (b) must not be amended or repealed unless a special
                           resolution has first been passed at a general meeting of
                           the owners corporation and the owners corporation has
                           obtained the written consent of the owner concerned.
             (6)      The provisions of sections 52 (3), 54 (2) and (3) and 55 apply
                      to a by-law made for the purposes of this section in the same
                      way as those provisions apply to a by-law to which Division 4
                      of Part 5 of Chapter 2 applies.




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     65B    Owners corporation may grant licence to use common
            property
            (1)   An owners corporation may grant a licence to an owner of a
                  lot to use common property in a particular manner or for
                  particular purposes if the owners corporation has approved
                  the granting of the licence by special resolution passed at a
                  general meeting of the owners corporation.
            (2)   A licence may be granted subject to terms and conditions.
                  Note. Division 4 of Part 5 of Chapter 2 enables owners corporations to
                  make by-laws granting exclusive use rights and special privileges
                  (including licences) in relation to common property.

     65C    What are the duties of an owners corporation in relation to fire
            safety inspections
            (1)   A person authorised to carry out an inspection under the
                  Environmental Planning and Assessment Act 1979 of a
                  building or premises for purposes relating to fire safety may
                  give a notice in writing to an owners corporation for a strata
                  scheme requiring the owners corporation to ensure that access
                  is provided, within a period or at a time specified in the notice,
                  to the common property of the strata scheme and, if so
                  specified, some or all of the individual lots in the strata
                  scheme.
            (2)   An owners corporation must comply with a requirement of a
                  notice given to the owners corporation under this section.
                  Maximum penalty: 20 penalty units.
            (3)   It is a defence to a prosecution for an offence against
                  subsection (2) consisting of a failure to ensure that access is
                  provided to a lot in a strata scheme if the owners corporation
                  establishes that the owner or occupier of the lot refused to
                  allow the access or could not be contacted by the owners
                  corporation.
            (4)   For the purposes of the Environmental Planning and
                  Assessment Act 1979, access to a building or premises or part
                  of a building or premises given to a person in accordance with
                  this section, or in accordance with an order of an Adjudicator
                  made under section 145 for the purposes of this section, is
                  taken to be a permission given to that person by the occupier
                  of the building, premises or part to enter the premises and
                  carry out the inspection concerned.



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[12]   Section 72 Distribution of surplus money in administrative fund or
       sinking fund
       Omit "An order" from section 72 (4).
       Insert instead "An application for an order".
[13]   Section 75 Estimates to be prepared of contributions to
       administrative and sinking funds
       Insert after section 75 (3):
              (4)      In estimating amounts to be credited to the sinking fund, an
                       owners corporation that is required to prepare a plan under
                       section 75A is to take into account anticipated major
                       expenditure identified in the plan for the 10-year period to
                       which the plan relates.
              (5)      An owners corporation of a large strata scheme must include
                       in the estimates prepared under this section at an annual
                       general meeting specific amounts in relation to each item or
                       matter on which the owners corporation intends to expend
                       money, or on which the owners corporation is aware money
                       will be likely to be expended, in the period until the next
                       annual general meeting.
[14]   Section 75A
       Insert after section 75:
       75A    Owners corporation to prepare 10-year sinking fund plans
              (1)      This section applies to owners corporations established on or
                       after the commencement of this section.
              (2)      An owners corporation to which this section applies is to
                       prepare a plan of anticipated major expenditure to be met
                       from the sinking fund over the 10-year period commencing on
                       the first annual general meeting of the owners corporation.
              (3)      The initial plan is to be finalised by the end of the second
                       annual general meeting of the owners corporation.
              (4)      The plan is to be reviewed and (if necessary) adjusted no later
                       than at the fifth annual general meeting of the owners
                       corporation.




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             (5)    An owners corporation to which this section applies is to
                    prepare a plan as referred to in subsection (2) for each 10-year
                    period following the period referred to in that subsection and
                    is to finalise and review the plan in accordance with the
                    requirements of subsections (3) and (4) at the corresponding
                    annual general meetings in the relevant 10-year period.
             (6)    An owners corporation may engage expert assistance in the
                    preparation of a plan under this section.
             (7)    The regulations may extend the operation of this section to all
                    owners corporations or to such classes of owners corporations
                    established before the commencement of this section as are
                    specified in the regulations.
             (8)    A regulation referred to in subsection (7) may make necessary
                    modifications to the application of any provision of this
                    section to an owners corporation established before the
                    commencement of this section.
[15]   Chapter 3, Part 3, Division 3
       Insert after section 80:

       Division 3         Restrictions on spending
       80A   Limit on spending by executive committees of large strata
             schemes
             (1)    If a specific amount has been determined as referred to in
                    section 75 (5) for expenditure on any item or matter, the
                    executive committee of the owners corporation concerned
                    must not, in the period until the annual general meeting next
                    occurring after the determination was made, spend on the item
                    or matter an amount greater than that determined amount for
                    expenditure on the item or matter plus 10 per cent.
             (2)    The owners corporation of a large strata scheme may by
                    resolution at a general meeting remove the limitation imposed
                    by subsection (1) generally or in relation to any particular
                    item or matter.




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       80B    Quotations to be obtained for certain items of expenditure by
              large strata schemes
                       An owners corporation of a large strata scheme must obtain at
                       least 2 quotations in relation to proposed expenditure in
                       respect of any one item or matter if the proposed expenditure
                       will exceed an amount prescribed by the regulations for the
                       purposes of this section.
       80C    Exceptions in relation to emergencies
                       Sections 80A (1) and 80B do not apply to expenditure
                       undertaken for emergency purposes, including, for example,
                       expenditure to remedy any of the following:
                       (a) burst or blocked water or sewerage pipes,
                       (b) serious damage caused by fire or by storm or any other
                             natural disaster,
                       (c) unexpected electrical or security system failure,
                       (d) glass breakages that affect the security of any building
                             in the strata scheme or could result in damage to the
                             inside of any such building.
       80D    Legal action to be approved by general meeting
              (1)      An owners corporation or executive committee of an owners
                       corporation must not seek legal advice or the provision of any
                       other legal services, or initiate legal action, for which any
                       payment may be required unless a resolution is passed at a
                       general meeting of the owners corporation approving the
                       seeking of the advice or services or the taking of that action.
              (2)      The regulations may make provision for or with respect to
                       exempting any type of legal service or legal action from the
                       operation of this section.
[16]   Section 87 What other insurance must an owners corporation take
       out?
       Omit "must be taken out with an approved insurer and" from section
       87 (2).




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[17]   Section 88A
       Insert after section 88:
       88A   Insurance must be taken out with approved insurer
                    Any insurance that is taken out in accordance with this
                    Division must be taken out with an approved insurer.
[18]   Section 104 Certain records to be retained for prescribed period
       Omit "the period".
       Insert instead "5 years or such other period as may be".
[19]   Section 107
       Omit the section. Insert instead:
       107   Auditing of accounts and financial statements
             (1)    An owners corporation may determine that the accounts and
                    financial statements of the owners corporation are to be
                    audited.
             (2)    However, the owners corporation of a large strata scheme
                    must ensure that the accounts and financial statements of the
                    owners corporation are audited before presentation to the
                    annual general meeting.
             (3)    Any auditing of the accounts and financial statements of an
                    owners corporation under this section must be carried out in
                    accordance with the Australian Auditing Standards, unless
                    the strata scheme concerned comprises not more than 2 lots.
[20]   Section 108 Inspection of records of owners corporation
       Omit "in writing" from section 108 (1).
[21]   Section 109 Certificate by owners corporation as to financial and
       other matters relating to lot
       Omit "in writing" from section 109 (1).




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[22]    Section 115A
        Insert after section 115:
       115A   Owners corporation to give information on contributions
              payable
                       An owners corporation of a strata scheme for a retirement
                       village (within the meaning of the Retirement Villages
                       Act 1999) must, if requested by the operator of the retirement
                       village, give a statement in writing specifying the amount of
                       current contributions levied on a particular lot in the strata
                       scheme.
[23]    Section 123 What action can be taken if there is a dispute,
        complaint or problem concerning a strata scheme?
        Insert at the end of the section:
              (2)      The regulations may make provision for or with respect to
                       excluding a particular class or classes of strata schemes from
                       any or all of the provisions of this Chapter.
[24]    Section 125 Registrar to be satisfied that mediation has been
        attempted before accepting application
        Omit section 125 (1) and (2). Insert instead:
              (1)      The Registrar must not accept an application for an order
                       under this Chapter unless:
                       (a) mediation under Part 2 or otherwise has been attempted
                             but was unsuccessful, or
                       (b) the Registrar considers that mediation is unnecessary or
                             inappropriate in the circumstances, or
                       (c) the application is for any of the following:
                              (i) an order under section 162 for the appointment of
                                   a strata managing agent,
                             (ii) an interim order under section 170 or stay of the
                                   operation of an order under section 180,
                            (iii) a variation or revocation of an order under section
                                   171 (2), 190 or 191,
                            (iv) an order under section 182 (authorising certain
                                   acts during initial period),




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                          (v)    an order for allocation of unit entitlements under
                                 section 183,
                         (vi)    an order under Part 6.
[25]   Section 131 Agreements and arrangements arising from
       mediation sessions
       Insert after section 131 (2):
           (2A)     Without limiting subsection (1), an Adjudicator may make an
                    order under that subsection that gives effect to the terms of a
                    written agreement signed during a mediation session by
                    persons who were parties to the mediation.
           (2B)     A mediator may request the Registrar to refer a matter to an
                    Adjudicator for the making of an order under this section, but
                    only with the consent of the parties to the mediation.
[26]   Section 138 General power of Adjudicator to make orders to settle
       disputes or rectify complaints
       Insert ", 65A or 65B" after "62 (3)" in section 138 (3) (c).
[27]   Section 145 Order for entry to lot
       Omit section 145 (1). Insert instead:
             (1)    An Adjudicator may make an order requiring the occupier of
                    a lot or part of a lot to allow access to the lot for any of the
                    following purposes:
                    (a) to enable the owners corporation to carry out any work
                           referred to in section 65 (1) or to determine whether
                           such work needs to be carried out,
                    (b) to enable an inspection referred to in section 65C to be
                           carried out.
[28]   Section 162 Order appointing strata managing agent to exercise
       certain functions
       Omit section 162 (3). Insert instead:
             (3)    Order may be made without application in certain
                    circumstances
                    An Adjudicator may make an order under this section,
                    without an application having been made for the order, but
                    only if satisfied that the management structure of a strata
                    scheme the subject of an application under this Chapter is not
                    functioning or is not functioning satisfactorily.
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              (3A)      Order may be made on application in certain
                        circumstances
                        An Adjudicator may make an order under this section, on
                        application, but only if satisfied that:
                        (a) the management structure of a strata scheme the subject
                              of an application under this Chapter is not functioning
                              or is not functioning satisfactorily, or
                        (b) an owners corporation has failed to comply with a
                              requirement imposed on the owners corporation by an
                              order made under this Act, or
                        (c) an owners corporation has failed to perform one or
                              more of its duties, or
                        (d) an owners corporation owes a judgment debt.
[29]   Section 162 (4) (b)
       Omit section 162 (4) (b) and (c). Insert instead:
                   (b) have given consent in writing to the appointment,
                         which consent, in the case of a strata managing agent
                         that is a corporation, may be given by the chief
                         executive officer of the corporation.
[30]   Section 163 Dismissal of application on certain grounds
       Omit section 163 (1).
[31]   Section 163 (2)
       Insert "for an order under this Part" after "application" where firstly
       occurring.
[32]   Section 171 Variation or revocation of order by Adjudicator
       Insert ", whether or not on application," after "varying an order" in section
       171 (2).
[33]   Section 171 (3)
       Insert after section 171 (2):
               (3)      An application under this section may be made by any of the
                        following persons:
                        (a) the owners corporation,



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                    (b)   the lessor of a leasehold strata scheme,
                    (c)   the applicant for the original order,
                    (d)   any person who made a written submission on the
                          application for the original order,
                    (e)   any other person who is required by the original order
                          to do or refrain from doing a specified act.
[34]    Section 183B
        Insert after section 183A:
       183B   Orders for appointment of strata managing agent
              (1)   Order appointing strata managing agent to exercise
                    functions of owners corporation
                    The Tribunal may, on its own motion, make an order
                    appointing a person as a strata managing agent:
                    (a) to exercise all the functions of an owners corporation,
                         or
                    (b) to exercise specified functions of an owners
                         corporation, or
                    (c) to exercise all the functions other than specified
                         functions of an owners corporation.
              (2)   Order may confer other functions on strata managing
                    agent
                    The Tribunal may also order, when appointing a strata
                    managing agent under this section, that the strata managing
                    agent is to have and may exercise:
                    (a) all the functions of the chairperson, secretary, treasurer
                          or executive committee of the owners corporation, or
                    (b) specified functions of the chairperson, secretary,
                          treasurer or executive committee of the owners
                          corporation, or
                    (c) all the functions of the chairperson, secretary, treasurer
                          or executive committee of the owners corporation other
                          than specified functions.




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             (3)      Circumstances in which order may be made
                      The Tribunal may make an order under this section only if
                      satisfied that the management structure of a strata scheme the
                      subject of an application under this Chapter or an appeal to the
                      Tribunal is not functioning or is not functioning satisfactorily.
             (4)      Qualifications of person appointed
                      A person appointed as a strata managing agent under this
                      section must:
                      (a) hold a strata managing agent's licence issued under the
                            Property, Stock and Business Agents Act 2002, and
                      (b) have consented in writing to the appointment, which
                            consent, in the case of a strata managing agent that is a
                            corporation, may be given by the chief executive officer
                            of the corporation.
             (5)      Terms and conditions of appointment
                      A strata managing agent may be appointed under this section
                      on such terms and conditions (including terms and conditions
                      relating to remuneration by the owners corporation and the
                      duration of appointment) as may be specified in the order
                      making the appointment.
             (6)      Revocation of certain appointments
                      An order under this section may be revoked or varied on the
                      application of any of the following persons and, unless sooner
                      revoked, ceases to have effect at the expiration of such period
                      after its making (not exceeding 12 months) as is specified in
                      the order:
                      (a) a person who obtained an order under this Act that
                             imposed a duty on the owners corporation or on its
                             executive committee, chairperson, secretary or
                             treasurer and that has not been complied with,
                      (b) a person having an estate or interest in a lot in the strata
                             scheme concerned or, in the case of a leasehold strata
                             scheme, in a lease of a lot in the scheme,
                      (c) the authority having the benefit of a positive covenant
                             that imposes a duty on the owners corporation,
                      (d) a judgment creditor to whom the owners corporation
                             owes a judgment debt.



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[35]    Section 185 Dismissal of application on certain grounds
        Omit section 185 (1).
[36]    Section 185 (2)
        Insert "for an order under this Part" after "application" where firstly
        occurring.
[37]    Section 190 Tribunal may vary order to correct error, for
        clarification or to extend time limit
        Insert ", whether or not on application," after "vary an order".
[38]    Section 190 (2)
        Insert at the end of section 190:
              (2)   An application under this section may be made by any of the
                    following persons:
                    (a) the owners corporation,
                    (b) the lessor of a leasehold strata scheme,
                    (c) the applicant for the original order,
                    (d) any person who made a written submission on the
                          application for the original order,
                    (e) any other person who is required by the original order
                          to do or refrain from doing a specified act.
[39]    Chapter 7, Part 1A
        Insert after section 230:

        Part 1A         Legal costs
       230A    Disclosure of matters relating to legal costs
                    If a disclosure under Division 2 of Part 11 of the Legal
                    Profession Act 1987 is made to an owners corporation in
                    respect of the costs of legal services to be provided to the
                    owners corporation, the owners corporation must give a copy
                    of the disclosure to each owner and executive committee
                    member within 7 days of the disclosure being made.




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[40]   Section 246 Regulations
       Insert after section 246 (2) (f):
                     (g) the procedure for meetings of the owners corporation of
                           a large strata scheme,
                     (h) the delegation of functions of the owners corporation of
                           a large strata scheme,
                      (i) the decisions or classes of decisions that may or may
                           not be made by the executive committee of a large strata
                           scheme,
                      (j) the functions of office holders of an owners corporation
                           of a large strata scheme,
                     (k) the management of the administrative fund or sinking
                           fund of the owners corporation of a large strata scheme,
                      (l) requiring information and other matters to be brought to
                           the attention of owners and executive committee
                           members in respect of the provision of legal services to
                           an owners corporation.
[41]   Schedule 2 Meetings and procedure of owners corporation
       Insert after clause 3 (b):
                   (b1) in the case of an owners corporation to which section
                           75A applies, to discuss the preparation of the plan
                           required by that section,
[42]   Schedule 2, clause 3 (f1)
       Insert after clause 3 (f):
                    (f1) to decide whether a caretaker should be appointed
                           under section 40A and, if a caretaker is to be appointed,
                           what functions the caretaker should exercise,
[43]   Schedule 2, clause 4 (1) (a)
       Insert "or lessor" after "owner".
[44]   Schedule 2, clause 4 (1) (a1)
       Insert after clause 4 (1) (a):
                    (a1) without limiting paragraph (a), all development
                           consents, complying development certificates and
                           related endorsed plans, "as built" drawings, compliance
                           certificates (within the meaning of the Environmental

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                          Planning and Assessment Act 1979), fire safety
                          certificates and warranties obtained or received by the
                          owner or lessor and relating to the parcel or any
                          building, plant or equipment on the parcel,
[45]   Schedule 2, clause 4 (1) (d)
       Insert after clause 4 (1) (c):
                     (d) any other document or item relating to the parcel or any
                           building, plant or equipment on the parcel that is
                           prescribed by the regulations for the purposes of this
                           subclause.
[46]   Schedule 2, clause 4 (1)
       Omit "10 penalty units". Insert instead "100 penalty units".
[47]   Schedule 2, clause 11 (3)
       Omit the subclause. Insert instead:
             (3)    Proxy to be given to secretary of owners corporation
                    The instrument is ineffective unless it contains the date on
                    which it was made and it is given to the secretary of the
                    owners corporation:
                    (a) in the case of a large strata scheme--at least 24 hours
                         before the first meeting in relation to which the
                         instrument is to operate, or
                    (b) in any other case--at or before the first meeting in
                         relation to which the instrument is to operate.
[48]   Schedule 2, clause 32 (2)
       Insert "or relates to insurance, budgeting or the fixing of a levy that will
       require expenditure above the prescribed amount referred to in the
       definition of priority vote in clause 7 (1)" after "the owners corporation".
[49]   Schedule 2, clause 34
       Insert at the end of clause 34 (f):
                          , and
                    (g)   include a form of motion to decide if any matter or type
                          of matter is to be determined only by the owners
                          corporation in general meeting.


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[50]   Schedule 2, clause 34A
       Insert after clause 34:
       34A     Required items of agenda for annual general meeting
                        The agenda for each annual general meeting must include:
                        (a) an item to decide if any matter or type of matter is to be
                             determined only by the owners corporation in general
                             meeting, and
                        (b) in the case of an owners corporation to which
                             section 75A applies, an item to prepare or review a plan
                             relating to the sinking fund if required to be done at that
                             meeting.
[51]   Schedule 2, Part 3
       Insert after Part 2:

       Part 3              General provisions
        38     Regulations relating to large strata schemes
                        The provisions of this Schedule are subject to the regulations,
                        but only to the extent that the regulations relate to large strata
                        schemes.
[52]   Schedule 3 Constitution of executive committee of the owners
       corporation and meetings of executive committee
       Insert after clause 4 (2):
               (3)      For the avoidance of doubt, a special resolution referred to in
                        subclause (1) (e) may relate to more than one member of an
                        executive committee or to all members of an executive
                        committee.
[53]   Schedule 3, clause 6
       Omit the clause. Insert instead:
           6   Notice of executive committee meetings
               (1)      An executive committee of a large strata scheme must give
                        notice of its intention to hold a meeting at least 72 hours
                        before the time fixed for the meeting:


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                   (a)   by giving written notice (which may be done by
                         electronic means) to each owner and executive
                         committee member, and
                   (b)   if the owners corporation is required by the by-laws to
                         maintain a notice board, by displaying the notice on the
                         notice board.
             (2)   An executive committee of a strata scheme that is not a large
                   strata scheme must give notice of its intention to hold a
                   meeting at least 72 hours before the time fixed for the
                   meeting:
                   (a) by displaying the notice on the notice board, or
                   (b) if the owners corporation is not required by the by-laws
                          to maintain a notice board, by giving written notice
                          (which may be done by electronic means) to each
                          owner and executive committee member.
             (3)   The notice must specify when and where the meeting is to be
                   held and contain a detailed agenda for the meeting.
             (4)   A notice may be given to a person by electronic means only if
                   the person has given the owners corporation an e-mail address
                   for the service of notices under this Act and the notice is sent
                   to that address.
[54]   Schedule 3, clause 16
       Omit the clause. Insert instead:
       16    Display of minutes
             (1)   Within 7 days after a meeting of the executive committee of a
                   large strata scheme, the executive committee must:
                   (a) give each owner and executive committee member a
                         copy of the minutes of the meeting, and
                   (b) if the owners corporation is required by the by-laws to
                         maintain a notice board, cause a copy of the minutes of
                         the meeting to be displayed on the notice board.
             (2)   Within 7 days after the executive committee of a large strata
                   scheme passes a resolution in accordance with this Schedule,
                   the executive committee must:
                   (a) give each owner and executive committee member a
                         copy of the minute of the resolution, and



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                       (b)    if the owners corporation is required by the by-laws to
                              maintain a notice board, cause a copy of the minute of
                              the resolution to be displayed on the notice board.
              (3)      Within 7 days after a meeting of the executive committee of a
                       strata scheme that is not a large strata scheme, the executive
                       committee must:
                       (a) cause a copy of the minutes of the meeting to be
                              displayed on the notice board, or
                       (b) if the owners corporation is not required by the by-laws
                              to maintain a notice board, give each owner and
                              executive committee member a copy of the minutes of
                              the meeting.
              (4)      Within 7 days after the executive committee of a strata
                       scheme that is not a large strata scheme passes a resolution in
                       accordance with this Schedule, the executive committee
                       must:
                       (a) cause a copy of the minute of the resolution to be
                             displayed on the notice board, or
                       (b) if the owners corporation is not required by the by-laws
                             to maintain a notice board, give each owner and
                             executive committee member a copy of the minute of
                             the resolution.
              (5)      A copy of a minute or minutes required to be displayed on a
                       notice board under this clause must be kept displayed on the
                       notice board for a period of not less than 14 days.
[55]   Schedule 3, Part 3
       Insert after Part 2:

       Part 3             General provisions
       18     Regulations relating to large strata schemes
                       The provisions of this Schedule are subject to the regulations,
                       but only to the extent that the regulations relate to large strata
                       schemes.




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[56]   Schedule 4 Savings, transitional and other provisions
       Insert at the end of clause 1 (1):
                    Strata Schemes Management Amendment Act 2004
[57]   Schedule 4, Part 5
       Insert after clause 13:

       Part 5          Provisions consequent on enactment of
                       Strata Schemes Management
                       Amendment Act 2004
       14    Definitions
                    In this Part:
                    amending Act means the Strata Schemes Management
                    Amendment Act 2004.
       15    Exercise of functions
                    Section 29A does not affect the exercise of a function under
                    this Act before the commencement of that section.
       16    Legal action
                    Section 80D applies only to legal advice or legal services
                    sought, or legal action entered into, after the commencement
                    of that section.
       17    Insurance
                    Section 88A does not affect any insurance that was taken out
                    in accordance with the provisions of this Act as in force
                    before the commencement of that section.
       18    Disclosures under Legal Profession Act 1987
                    Section 230A does not apply to a disclosure under Division 2
                    of Part 11 of the Legal Profession Act 1987 made before the
                    commencement of that section.




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       19      Notice of annual general meeting
                        Clause 34 (g) of Schedule 2 does not apply to a notice served
                        before the commencement of that paragraph.
       20      Agenda for annual general meeting
                        Clause 34A of Schedule 2 does not apply to the agenda of a
                        meeting notice of which was served before the
                        commencement of that clause.
       21      Notice of executive committee meetings
                        Clause 6 of Schedule 3, as in force immediately before its
                        substitution by the amending Act, continues to apply to a
                        meeting notice of which was given before the substitution of
                        that clause.
       22      Minutes of executive committee meetings
                        Clause 16 of Schedule 3, as in force immediately before its
                        substitution by the amending Act, continues to apply to a
                        meeting held before the substitution of that clause.
[58]   Dictionary
       Insert in alphabetical order in Part 1:
                        large strata scheme has the meaning given by clause 5 of
                        Part 2.
                        utility lot means a lot designed to be used primarily for
                        storage or accommodation of boats, motor vehicles or goods
                        and not for human occupation as a residence, office, shop or
                        the like.
[59]   Dictionary, Part 2
       Insert after clause 4:
           5   Meaning of "large strata scheme"
               (1)      In this Act, large strata scheme means a strata scheme
                        comprising more than 100 lots or more than such other
                        number of lots as may be prescribed by the regulations for the
                        purposes of this subclause.




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            (2)   When calculating the number of lots in a strata scheme for the
                  purposes of this clause, utility lots and lots used for the
                  purposes of parking are not to be included in the calculation.
            (3)   The regulations may contain provisions of a savings or
                  transitional nature consequent on a change in the number of
                  lots comprising a large strata scheme.
       6    References to strata managing agent's licence
                  A reference in this Act (however expressed) to a strata
                  managing agent's licence under the Property, Stock and
                  Business Agent's Act 2002 includes a reference to a
                  corporation licence under that Act that authorises the holder
                  to act as, or carry on the business of, a strata managing agent.




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               Strata Schemes Management Amendment Bill 2004

Schedule 2     Amendment of Act and Regulations




Schedule 2 Amendment of Act and Regulations
                                                                        (Section 4)

2.1 Conveyancing (Sale of Land) Regulation 2000
[1]   Schedule 1 Prescribed documents
      Insert at the end of clause 5 (b):
                         , and
                   (c)   a copy of any by-law for the strata scheme to which
                         Division 4 of Part 5 of Chapter 2 of the Strata Schemes
                         Management Act 1996 applies.
[2]   Schedule 1, clause 6
      Insert at the end of clause 6 (d):
                         , and
                   (e)   a copy of any by-law for the strata scheme to which
                         Division 4 of Part 5 of Chapter 2 of the Strata Schemes
                         Management Act 1996 applies.
2.2 Retirement Villages Act 1999 No 81
      Section 19 General information about retirement villages
      Insert "and, in the case of a retirement village that is subject to a strata
      scheme, living in a strata scheme" after "industry" in section 19 (1).




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2.3 Retirement Villages Regulation 2000
      Schedule 1 Disclosure statement
      Insert after item 14:
     14A    STRATA CONTRIBUTIONS PAYABLE (Where applicable)
                   The amount of contributions levied under the Strata Schemes
                   Management Act 1996 for the current year in respect of the lot
                   (within the meaning of the Strata Schemes Management
                   Act 1996) are:
                   Note. The amount of contributions to be levied is reviewed at least once
                   each year.




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