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


HOME BUILDING AMENDMENT BILL 2000




                     New South Wales




Home Building Amendment Bill 2000


Contents
                                                               Page

         1 Name of Act                                           2
         2 Commencement                                          2
         3 Amendment of Home Building Act 1989 No 147            2

  Schedule 1 Amendments                                          3
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,                       , 2000




                               New South Wales


Home Building Amendment Bill 2000
Act No     , 2000



An Act to amend the Home Building Act 1989 to clarify the obligations and
entitlements of certain developers and other persons in respect of insurance required
under the Act for residential building work; 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         Home Building Amendment Bill 2000




The Legislature of New South Wales enacts:

  1      Name of Act
             This Act is the Home Building Amendment Act 2000.

  2      Commencement
         (1) Except as provided by subsection (2), this Act commences on a day or
             days to be appointed by proclamation.
         (2) Schedule 1 [5]-[9], and so much of section 3 as relates to those items,
             are taken to have commenced on the day on which the Bill for this Act
             was first introduced into Parliament (whether or not the Act was
             enacted in the form of the Bill as introduced).

  3      Amendment of Home Building Act 1989 No 147
             The Home Building Act 1989 is amended as set out in Schedule 1.




Page 2
Home Building Amendment Bill 2000

Amendments                                                            Schedule 1




Schedule 1         Amendments
                                                                         (Section 3)


 [1]   Section 90 Definitions

       Insert in alphabetical order:
                    developer, in relation to residential building work, means an
                    individual, partnership or corporation (other than a company
                    referred to in section 3A (3)) on whose behalf the work is done
                    in the circumstances set out in section 3A (2).

 [2]   Section 96 Insurance in relation to residential building work not carried
       out under contract

       Insert at the end of section 96 (1):
                    Maximum penalty: 100 penalty units.

 [3]   Section 96 (2A)

       Omit the subsection.

 [4]   Section 96A

       Insert after section 96:

       96A    Obligations of developers in relation to insurance
              (1) A developer must not enter into a contract for the sale of land
                  on which residential building work has been done, or is to be
                  done, on the developer's behalf unless a certificate of insurance
                  evidencing the contract of insurance required under section 92
                  by the person who did or does the work for the developer, in a
                  form prescribed by the regulations, is attached to the contract
                  for sale.
                    Maximum penalty: 100 penalty units.




                                                                            Page 3
                  Home Building Amendment Bill 2000

Schedule 1        Amendments




                (2) Despite anything to the contrary in section 3A, a reference in
                    this Part to a person who does residential building work:
                    (a)    does not include a reference to a developer, and
                    (b)    includes a reference to a person who does the work on
                           behalf of a developer.

 [5]     Section 99 Requirements for insurance for residential building work

         Insert at the end of the section:
                (2) Subsection (1) does not require the following to be insured:
                    (a)   a developer on whose behalf residential building work
                          is being done,
                    (b)   any other person belonging to a class of persons
                          prescribed by the regulations for the purposes of this
                          section.

 [6]     Section 103C Regulations

         Omit section 103C (2) (b). Insert instead:
                      (b)    beneficiaries who must be insured, or persons who are
                             not required to be insured, under a contract of insurance
                             required to be entered into under this Part,

 [7]     Section 103C (3)

         Insert after section 103C (2):
                (3) A provision of a regulation for or with respect to a matter
                    referred to in subsection (2) (b) applies despite any other
                    provision of this Part.

 [8]     Schedule 4 Savings and transitional provisions

         Insert at the end of clause 2 (1):
                      Home Building Amendment Act 2000.




Page 4
Home Building Amendment Bill 2000

Amendments                                                             Schedule 1




 [9]   Schedule 4

       Insert after Part 6:


       Part 7 Provisions consequent on enactment of
              Home Building Amendment Act 2000
        51     Definition
                    In this Part:
                    amending Act means the Home Building Amendment Act 2000.

        52     Validation of insurance exclusions concerning developers
               (1) Any relevant exclusionary provision that would have been a
                   valid provision of a contract of insurance had section 99 (2) of
                   this Act (as inserted by Schedule 1 [5] to the amending Act)
                   been in force at the time the contract was made is taken to have
                   been a valid provision of the contract at the time the contract
                   was made and at all relevant times after the contract was made.
               (2) Subclause (1) applies to proceedings before a court or tribunal
                   that are pending at the commencement of this clause.
                   Accordingly, the rights of the parties to such proceedings are to
                   be determined in accordance with subclause (1).
               (3) Subclause (1) does not affect the judgment of the Supreme
                   Court in HIH v Jones [2000] NSWSC 359, or any other
                   proceedings that have been determined by a court or tribunal
                   before the commencement of this clause, as between the
                   parties to those proceedings.
               (4) In this clause:
                   relevant exclusionary provision means a provision of a
                   contract of insurance in relation to residential building work
                   made during the relevant period in accordance with section 92
                   of the Act that excluded or purported to exclude a developer
                   referred to in section 3A of this Act from making claims under
                   the contract.
                   relevant period means the period commencing on 1 May 1997
                   and ending on the day immediately before the commencement
                   of Schedule 1 [5] to the amending Act, inclusive.


                                                                             Page 5
               Home Building Amendment Bill 2000

Schedule 1     Amendments




         53   Clause 42 of the Home Building Regulation 1997
              (1) A provision of clause 42 of the Home Building Regulation
                  1997 that would have been a valid provision of that Regulation
                  had section 103C (2) (b) and (3) of this Act (as inserted by
                  Schedule 1 [6] and [7] to the amending Act) been in force at
                  the time the provision commenced is taken to have been a valid
                  provision of the Regulation at the time the provision
                  commenced and at all relevant times after it commenced.
              (2) For the avoidance of doubt, it is declared that at the time clause
                  42 (2) of the Home Building Regulation 1997 commenced and
                  at all relevant times after it commenced:
                  (a)      the subclause applied to contracts of insurance required
                           by section 92 or 96 of the Act, and
                  (b)      the reference to a developer who does residential
                           building work in paragraph (a) of that subclause is a
                           reference to an individual, partnership or corporation
                           (other than a company referred to in section 3A (3) of
                           the Act) on whose behalf the work is done in the
                           circumstances set out in section 3A (2) of the Act.
              (3) Subclauses (1) and (2) apply to proceedings before a court or
                  tribunal that are pending at the commencement of this clause.
                  Accordingly, the rights of the parties to such proceedings are to
                  be determined in accordance with subclauses (1) and (2).
              (4) Subclauses (1) and (2) do not affect the judgment of the
                  Supreme Court in HIH v Jones [2000] NSWSC 359, or any
                  other proceedings that have been determined by a court or
                  tribunal before the commencement of this clause, as between
                  the parties to those proceedings.

         54   Offences under amended provisions
              (1) An amended provision as in force immediately before the
                  commencement of a relevant item continues to apply to a
                  relevant offence committed, or alleged to have been committed,
                  before the commencement of that item.
              (2) In this clause:
                  relevant item means an item of Schedule 1 to the amending
                  Act that amends or repeals a provision of this Act that contains
                  an offence.

Page 6
Home Building Amendment Bill 2000

Amendments                                                                    Schedule 1




                   relevant offence means an offence under this Act that is
                   amended or repealed by a relevant item.
                   Note. Section 30 of the Interpretation Act 1987 is a general provision
                   preserving rights accruing and liabilities incurred before an amendment or
                   repeal of a provision of an Act or statutory rule.




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