DRAFTING DIVISION - Attorney General's Chambers

The Bill also proposes the establishment of the “Suruhanjaya Perkhidmatan Air NegaraFund”, which shall be administered and controlled by the Commission. The Bill sets out theexpenditure that may be charged to the Fund and also allows the Commission to borrowmoney as well as enables the Commission to invest the moneys of the Commission.WATER SERVICES INDUSTRY BILL 2006The Water Services Industry Bill 2006 provides for and regulates water supply servicesand sewerage services. The objects of the proposed Act are to establish a licensing andregulatory framework for regulatory intervention and to promote the national policy objectivesfor the water supply services and sewerage services industry. The proposed Act does notaffect the general application of existing laws on environmental quality and land mattersand existing State powers over water sources. The proposed Act applies to PeninsularMalaysia and the Federal Territories of Labuan and Putrajaya.The national policy objectives for the water supply services and sewerage services industryinclude the establishment of a transparent and integrated structure for water supply servicesand sewerage services that delivers effective and efficient services to consumers, ensuringlong term availability and sustainability of water supply including the conservation of water,to facilitate the development of competition to promote economy and efficiency in the watersupply services and sewerage services industry, and to establish an effective system ofaccountability and governance between operators in the water services and sewerageservices industry.The proposed Act confers executive authority on the Federal Government for mattersrelating to water supply systems and sewerage systems and water supply services andsewerage services.ATTORNEY GENERAL’S CHAMBERS MALAYSIA REPORT 2005/2006The Bill sets out detailed licensing requirements, where licences are classified into individuallicences or class licences. At the same time, duties and obligations are imposed upon thelicensees. The Bill also contains provisions that deal with the construction and maintenanceof a water supply system and sewerage system. In this respect, the Bill prohibits any personfrom constructing, altering, modifying, disconnecting or closing up a water supply system,sewerage system, septic tank, individual internal sewerage piping or common internalsewerage piping unless the relevant plans and specifications have first been approved bythe Suruhanjaya Perkhidmatan Air Negara. The Bill also requires a developer of a newdevelopment to construct a water supply system and a sewerage system in its developmentin accordance with the requirements set out in any plans and specifications approved bythe Suruhanjaya Perkhidmatan Air Negara.The Bill also empowers the Minister, upon the recommendation of the SuruhanjayaPerkhidmatan Air Negara, to prescribe the rates for water supply services and sewerageservices. The Minister is also empowered to exempt any person or organization fromthe payment of any rates, charges or deposits in relation to water supply services andsewerage services.103