Public Passenger Vehicles Act 1981

• Citation: 1981 c. 14
• Sections: 155

Section 1 Definition of “public service vehicle”.

(1) Subject to the provisions of this section, in this Act “ public service vehicle ” means a motor vehicle (other than a tramcar) which—

(a) being a vehicle adapted to carry more than eight passengers, is used for carrying passengers for hire or reward; or

(b) being a vehicle not so adapted, is used for carrying passengers for hire or reward at separate fares in the course of a business of carrying passengers.

(2) For the purposes of subsection (1) above a vehicle “is used” as mentioned in paragraph (a) or (b) of that subsection if it is being so used or if it has been used as mentioned in that paragraph and that use has not been permanently discontinued.

(3) A vehicle carrying passengers at separate fares in the course of a business of carrying passengers, but doing so in circumstances in which the conditions set out in Part I, . . . or III of Schedule 1 to this Act are fulfilled, shall be treated as not being a public service vehicle unless it is adapted to carry more than eight passengers.

(4) For the purposes of this section a journey made by a vehicle in the course of which one or more passengers are carried at separate fares shall not be treated as made in the course of a business of carrying passengers if—

(a) the fare or aggregate of the fares paid in respect of the journey does not exceed the amount of the running costs of the vehicle for the journey; and

(b) the arrangements for the payment of fares by the passenger or passengers so carried were made before the journey began;

and for the purposes of paragraph (a) above the running costs of a vehicle for a journey shall be taken to include an appropriate amount in respect of depreciation and general wear.

(5) For the purposes of this section, . . . and Schedule 1 to this Act—

(a) a vehicle is to be treated as carrying passengers for hire or reward if payment is made for, or for matters which include, the carrying of passengers, irrespective of the person to whom the payment is made and, in the case of a transaction effected by or on behalf of a member of any association of persons (whether incorporated or not) on the one hand and the association or another member thereof on the other hand, notwithstanding any rule of law as to such transactions;

(b) a payment made for the carrying of a passenger shall be treated as a fare notwithstanding that it is made in consideration of other matters in addition to the journey and irrespective of the person by or to whom it is made;

(c) a payment shall be treated as made for the carrying of a passenger if made in consideration of a person’s being given a right to be carried, whether for one or more journeys and whether or not the right is exercised.

(6) Where a fare is paid for the carriage of a passenger on a journey by air, no part of that fare shall be treated for the purposes of subsection (5) above as paid in consideration of the carriage of the passenger by road by reason of the fact that, in case of mechanical failure, bad weather or other circumstances outside the operator’s control, part of that journey may be made by road.

Section 3 Traffic areas.

(1) For the purposes of this Act Great Britain shall be divided into the Metropolitan, Northern, Yorkshire, North-Western, West Midland, East Midland, Eastern, South Wales, Western, South-Eastern and Scottish Traffic Areas.

(2) The Secretry of State may from time to time by order vary the provisions of this Act constituting traffic areas, either by altering the limits of an existing traffic area or by increasing or reducing the number of traffic areas or otherwise as he may think fit.

(2A) The power to make an order under subsection (2) above includes power to make—

(a) such incidental, consequential, supplemental or transitional provision, and

(b) such savings,

as the Secretary of State may consider necessary or expedient for the purpose of, or in consequence of, or for giving full effect to, any order under that subsection for varying the number or limits of traffic areas in England and Wales.

(2B) The power conferred by subsection (2A) above includes power to amend or modify any provision of this Act or any other enactment (whenever passed or made) for the purpose of making any such provision or savings.

(2C) The powers conferred by subsections (2A) and (2B) above are without prejudice to what may be done under subsection (3) below.

(3) An order under this section for varying the number or limits of traffic areas may contain such consequential and incidental provisions as appear to the Secretary of State to be necessary or expedient in consequence of the variations of areas to be affected by the order, including provisions—

(a) as to the effect of licences previously issued, and consents previously given, by a traffic commissioner;

(b) as to the effect of applications for licences or consents previously made to a traffic commissioner;

(c) as to the continuance of appeals pending against decisions of a traffic commissioner; and

(d) as to the recovery of any sums due to a traffic commissioner,

in relation to any traffic area abolished or changed.

(4) The power to make orders conferred by this section shall be exercisable by statutory instrument which shall be laid before Parliament after being made, and an order under this section shall not have effect unless and until it has been approved by a resolution of each House of Parliament.

Section 4 Traffic commissioners.

(1) For the purposes of this Act there shall be—

(a) such number of commissioners for England and Wales as the Secretary of State may consider appropriate; and

(b) a single commissioner for the Scottish Traffic Area (the “Scottish traffic commissioner”).

(2) The commissioners shall be appointed by the Secretary of State and shall be known as traffic commissioners.

(3) A traffic commissioner shall be responsible for issuing licences under this Act and shall have such other functions as are given to him by, or in pursuance of, this Act or any other enactment.

(3A) A traffic commissioner for England and Wales—

(a) may exercise the functions of a traffic commissioner in any traffic area in England and Wales; and

(b) may exercise in relation to the Scottish Traffic Area any functions of a traffic commissioner that relate to reserved matters within the meaning of the Scotland Act 1998.

(3B) The Scottish traffic commissioner—

(a) is to exercise the functions of a traffic commissioner in relation to the Scottish Traffic Area; and

(b) may exercise in relation to any traffic area in England and Wales any functions of a traffic commissioner that relate to reserved matters within the meaning of the Scotland Act 1998.

(4) Any person appointed to be a traffic commissioner shall—

(a) act under the general directions of, and shall have regard to any guidance given by, the senior traffic commissioner ; and

(b) vacate his office on attaining the age of 75 , but otherwise hold office during Her Majesty’s pleasure.

(5) Where the Secretary of State proposes to appoint a person to be a traffic commissioner he shall, before making the appointment, require that person to declare if he has any, and if so what, financial interest in any transport undertaking which carries passengers or goods by road within Great Britain.

(6) Schedule 2 to this Act shall have effect with respect to traffic commissioners.

Section 4A Appointment of senior traffic commissioner

(1) One of the traffic commissioners shall be appointed by the Secretary of State to be the senior traffic commissioner.

(2) The senior traffic commissioner shall have such functions as may be conferred or imposed by or under any of the following enactments—

(a) section 4B below (deployment of traffic commissioners),

(b) section 4C below (guidance and general directions),

or any other provision of this Act or any other enactment.

(3) The senior traffic commissioner—

(a) shall hold office for such period as the Secretary of State specifies when making the appointment; but

(b) ceases to hold that office on ceasing to hold office as a traffic commissioner.

(4) A traffic commissioner who has been the senior traffic commissioner is eligible for re-appointment as the senior traffic commissioner.

(5) In the case of illness, incapacity or absence of the senior traffic commissioner, the Secretary of State may appoint another traffic commissioner to act as deputy for the senior traffic commissioner.

(6) Where the office of senior traffic commissioner becomes vacant, the Secretary of State may appoint a person (whether or not over the age of 65) to act as senior traffic commissioner pending the appointment of a new senior traffic commissioner.

(7) Any person appointed under subsection (6) above shall—

(a) hold office for such period as the Secretary of State specifies when making the appointment; and

(b) during that period be treated for all purposes as the senior traffic commissioner.

Section 4B Power of senior traffic commissioner to deploy other commissioners

(1) In this section—

(a) subsections (2) to (4) confer powers on the senior traffic commissioner in relation to traffic commissioners and deputy traffic commissioners for England and Wales; and

(b) subsections (5) to (7) confer powers on the senior traffic commissioner in relation to the Scottish traffic commissioner and any deputy traffic commissioners for the Scottish traffic area.

(2) The senior traffic commissioner may require any traffic commissioner for England and Wales to carry out such of the functions of traffic commissioner for England and Wales as the senior traffic commissioner may determine—

(a) in relation to such matters relating to England and Wales, or

(b) as respects Scotland, in relation to such reserved matters,

as the senior traffic commissioner may determine.

(3) The senior traffic commissioner may require any traffic commissioner for England and Wales to carry out such of those functions as the senior traffic commissioner may determine at such places—

(a) in England and Wales, or

(b) in the case of functions which relate to reserved matters and are exercisable in relation to Scotland, in Scotland,

as the senior traffic commissioner may determine.

(4) Subsections (2) and (3) above also apply in relation to a deputy traffic commissioner for England and Wales as they apply in relation to a traffic commissioner for England and Wales, construing the references to functions accordingly.

(5) The senior traffic commissioner may require the Scottish traffic commissioner to carry out as respects England and Wales such of the functions exercisable by the Scottish traffic commissioner in relation to reserved matters by virtue of section 4(3B)(b) of this Act as the senior traffic commissioner may determine.

(6) The senior traffic commissioner may require the Scottish traffic commissioner to carry out such of those functions as the senior traffic commissioner may determine at such places in England and Wales as the senior traffic commissioner may determine.

(7) Subsections (5) and (6) above also apply in relation to a deputy traffic commissioner for the Scottish Traffic Area as they apply in relation to the Scottish traffic commissioner, construing the references to functions accordingly.

(8) In this section—

“ deputy traffic commissioner for the Scottish Traffic Area ” means any person appointed under paragraph 3 or 4 of Schedule 2 to this Act to act as deputy in the case of the Scottish traffic commissioner;

“ reserved matters ” means reserved matters within the meaning of the Scotland Act 1998.

Section 4C Power of senior traffic commissioner to give guidance and directions

(1) The senior traffic commissioner may give to the traffic commissioners—

(a) guidance, or

(b) general directions,

as to the exercise of their functions under any enactment.

This subsection is subject, in relation to Scotland, to subsection (5) below and, in relation to Wales, to subsection (6) below .

(2) The guidance that may be given under subsection (1)(a) above includes guidance as to—

(a) the meaning and operation of any enactment or instrument relevant to the functions of traffic commissioners;

(b) the circumstances in which, and the manner in which, a traffic commissioner should exercise any power to impose any sanction or penalty;

(c) matters which a traffic commissioner should or should not take into account when exercising any particular function.

(3) The directions that may be given under subsection (1)(b) above include directions as to—

(a) the circumstances in which, and the manner in which, officers or servants of a traffic commissioner may exercise any function for or on behalf of the traffic commissioner, and any conditions which such officers or servants must meet before they may do so;

(b) the information which a traffic commissioner must ask to be supplied in connection with the exercise of any particular function, and the steps which must be taken to verify the accuracy of any information so supplied;

(c) the procedure to be adopted in conducting inquiries under section 54 of this Act, section 35 of the Goods Vehicles (Licensing of Operators) Act 1995 or any other enactment;

(d) the manner in which a traffic commissioner must or may publish his decisions;

(e) circumstances in which a traffic commissioner must consult some, or all, of the other traffic commissioners before exercising any particular function.

(4) The senior traffic commissioner must consult each of the following persons before giving any guidance or directions under subsection (1) above—

(a) the Secretary of State;

(b) the Scottish Ministers, if the senior traffic commissioner considers it appropriate;

(c) the Welsh Ministers, if the senior traffic commissioner considers it appropriate;

(d) such of the other traffic commissioners as the senior traffic commissioner considers appropriate;

(e) such organisations representative of the interests of local government, of London government, of Integrated Transport Authorities , of combined authorities established under section 103 of the Local Democracy, Economic Development and Construction Act 2009, of combined county authorities established under section 9(1) of the Levelling-up and Regeneration Act 2023 and of Passenger Transport Executives as the senior traffic commissioner considers appropriate;

(f) such organisations representative of the interests of users of public passenger transport services as the senior traffic commissioner considers appropriate;

(g) such organisations representative of passenger transport operators, and of road haulage operators, as the senior traffic commissioner considers appropriate;

and such other persons as the senior traffic commissioner considers appropriate.

(5) The only guidance or directions under this section which the senior traffic commissioner may give to the Scottish traffic commissioner are guidance or directions as to the exercise of functions that relate to reserved matters within the meaning of the Scotland Act 1998.

(6) The senior traffic commissioner may not give guidance or directions under this section as to the exercise of a function so far as the function could (apart from paragraph 8 of Schedule 7B to the Government of Wales Act 2006) be conferred or imposed by provision falling within the legislative competence of the National Assembly for Wales.

Section 4D Guidance to senior traffic commissioner by Secretary of State

(1) The Secretary of State may give the senior traffic commissioner guidance as to the exercise of any of the senior traffic commissioner's functions.

(2) The senior traffic commissioner must have regard to any guidance given under subsection (1) above.

Section 5 Publication of information by traffic commissioners.

(1) Every traffic commissioner shall publish, in such form and at such times as may be prescribed, such information with respect to the exercise, or proposed exercise, of any of his functions under this Act or the Transport Act 1985 as may be prescribed.

(2) Where a traffic commissioner publishes information under this section he shall—

(a) send a copy of the publication—

(i) to every chief officer of police, Passenger Transport Executive and local authority whose area the traffic commissioner considers may be affected by the information; and

(ii) if the traffic commissioner considers that the information may affect Greater London, to Transport for London; and

(b) make a copy of it available (by post if required and on payment of such fee as may be prescribed) to anyone who asks for one.

(3) In this section “ local authority ” means—

(a) in England and Wales, the council of any non-metropolitan county, any district or London borough or the Common Council of the City of London; and

(b) in Scotland, any council constituted under section 2 of the Local Government etc. (Scotland) Act 1994.

Section 6 Certificate of initial fitness (or equivalent) required for use as public service vehicles.

(1) Subject to subsection (1ZA) below, A public service vehicle adapted to carry more than eight passengers shall not be used on a road unless—

(a) an examiner appointed under section 66A of the Road Traffic Act 1988 or an authorised inspector has issued a certificate (in this Act referred to as a “certificate of initial fitness”) that the prescribed conditions as to fitness are fulfilled in respect of the vehicle; or

(b) a certificate under section 10 of this Act has been issued in respect of the vehicle; or

(d) one of the following certificates has effect with respect to the vehicle―

(ai) a GB certificate of conformity;

(i) a relevant certificate of conformity ;

(ii) a ... small series certificate of conformity;

(iii) an individual approval certificate.

(1ZA) In the case of a public service vehicle to which subsection (1ZB) below applies, subsection (1) above has effect as if paragraphs (a) and (b) of that subsection were omitted.

(1ZB) This subsection applies to any public service vehicle which, by virtue of regulation 21 of the Approval Regulations , may not—

(a) be granted a first licence under section 21 of the Vehicle Excise and Registration Act 1994, or

(b) be registered before the issue of a first licence under that section,

unless one of the certificates mentioned in paragraph (d) of subsection (1) above has effect with respect to the vehicle.

(1A) Without prejudice to the powers of the Secretary of State under section 7 of this Act in relation to the exercise by certifying officers of their functions, regulations may make provision with respect to the examination of vehicles for the purposes of subsection (1)( a ) above by or under the direction of authorised inspectors and the issue or refusal of certificates of initial fitness by such inspectors on any such examinations.

(2) Subject to section 68(3) of this Act, if a vehicle is used in contravention of subsection (1) above, the operator of the vehicle shall be liable on summary conviction to a fine not exceeding level 4 on the standard scale .

(3) In this section—

“Approval Regulations” means the Road Vehicles (Approval) Regulations 2020;

...

“ GB certificate of conformity ” means—

a GB certificate of conformity within the meaning of Article 3(5B) of the Type Approval Regulation, or

a certificate of conformity issued under section 57(1) of the Road Traffic Act 1988;

“individual approval certificate” means a certificate issued under regulation 18(10) of the Approval Regulations;

...

“ relevant certificate of conformity ” means—

a UK (NI) certificate of conformity, as defined in Article 3(5C) of the Type Approval Regulation, or

in a case where the vehicle—

was in the United Kingdom before IP completion day;

is a qualifying Northern Ireland good, within the meaning of section 47 of the United Kingdom Internal Market Act 2020; or

is approved as a type vehicle under section 55(1A) or (1D) of the Road Traffic Act 1988,

an EU certificate of conformity, as defined in Article 3(5A) of the Type Approval Regulation;

“ small series certificate of conformity ” means a certificate issued under regulation 16(7) of the Approval Regulations;

“ Type Approval Regulation ” means Regulation (EU) 2018/858 of the European Parliament and of the Council of 30 May 2018 on the approval and market surveillance of motor vehicles and their trailers, and of systems, components and separate technical units intended for such vehicles.

Section 8 Powers of, and facilities for, inspection of public service vehicles.

—(1)

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(1A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) The Secretary of State may—

(a) provide and maintain stations where inspections of public service vehicles . . . may be carried out;

(b) designate premises as stations where such inspections may be carried out; and

(c) provide and maintain apparatus for the carrying out of such inspections;

and in this Act “ official PSV testing station ” means a station provided, or any premises for the time being designated, under this subsection.

Section 9A Extension of sections 8 and 9 to certain passenger vehicles other than public service vehicles.

(1) Section 8 of this Act shall apply, . . ., to any motor vehicle (other than a tramcar) which is adapted to carry more than eight passengers but is not a public service vehicle as it applies to a public service vehicle.

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Section 10 Approval of type vehicle and effect thereof.

(1) Where the Secretary of State is satisfied in respect of one vehicle of a particular type that the prescribed conditions as to fitness are fulfilled in respect of the vehicle he may, on payment of the prescribed fee, approve the vehicle as a type vehicle.

(2) Where a type vehicle has been approved under this section and a declaration in the prescribed form has been made by a person authorised by the Secretary of State in that behalf that any other vehicle conforms in design, construction and equipment with the type vehicle, an examiner appointed under section 66A of the Road Traffic Act 1988 may, after examining if he thinks fit that other vehicle, issue a certificate in the prescribed form that the vehicle conforms to the type vehicle.

(3) The Secretary of State may at any time withdraw his approval of a type vehicle and thereafter no certificate that any other vehicle conforms to the type vehicle shall be issued; but as regards any such certificate previously issued, the withdrawal of the approval shall not affect the operation of that certificate for the purposes of section 6 of this Act.

Section 11 Modification of section 6 in relation to experimental vehicles.

(1) Where it appears to the Secretary of State expedient to do so for the purpose of the making of tests or trials of a vehicle or its equipment, he may by order made in respect of that vehicle for the purposes of section 6 of this Act dispense with such of the prescribed conditions as to fitness referred to in subsection (1)(a) of that section as are specified in the order.

(2) While such an order is in force in respect of a vehicle, section 6 of this Act shall have effect in relation to the vehicle as if the prescribed conditions as to fitness referred to in subsection (1)(a) of that section did not include such of those conditions as are dispensed with by the order.

(3) An order under this section shall specify the period for which it is to continue in force, and may contain, or authorise the imposition of, requirements, restrictions or prohibitions relating to the construction, equipment or use of the vehicle to which the order relates.

(4) Where an order under this section in respect of a vehicle is revoked or otherwise ceases to have effect, any certificate of initial fitness issued under section 6 of this Act in respect of the vehicle while the order was in force shall, for the purposes of that section as regards any use of the vehicle after the order has ceased to have effect, be deemed never to have been issued.

Section 12 PSV operators’ licences.

(1) A public service vehicle shall not be used on a road for carrying passengers for hire or reward except under a PSV operator’s licence granted in accordance with the following provisions of this Part of this Act.

(1A) Subsection (1) applies in spite of Article 1.4(b) and (c) of the 2009 Regulation (exemptions unless otherwise provided in national law for certain undertakings engaged in road passenger transport services and for slow vehicles), but is subject to section 46 of this Act and section 18 of the Transport Act 1985

(2) The authority having power to grant a PSV operator’s licence is a traffic commissioner.

(3) A person may hold two or more PSV operator’s licences but shall not at the same time hold more than one such licence in relation to the same traffic area.

(3A) Subject to the provisions of this Part of this Act, a PSV operator’s licence authorises the holder to use anywhere in Great Britain a vehicle which has as its operating centre an operating centre specified in the licence.

(4) An application for a PSV operator’s licence shall be made in such a form as a traffic commissioner may require, and an applicant shall give the traffic commissioner dealing with the application such information as he or another traffic commissioner may reasonably require for disposing of the application.

(5) Subject to section 68(3) of this Act, if a vehicle is used in contravention of subsection (1) above, the operator of the vehicle shall be liable on summary conviction to a fine not exceeding level 4 on the standard scale .

Section 12A Detention of certain PSVs used without PSV operators' licences

Schedule 2A (which relates to the detention, removal and disposal of PSVs which are adapted to carry more than 8 passengers and in respect of which it appears that section 12(1) is contravened) shall have effect.

Section 12B Power to stop

(1) Subsection (2) applies if it appears to a stopping officer that a vehicle is being used in circumstances such that a PSV operator’s licence could be required.

(2) The officer may direct the driver to stop the vehicle for the purpose of enabling checks to be carried out to establish whether the use of the vehicle is in contravention of section 12(1) or 18(1).

(3) In this section a “stopping officer” means an officer appointed under section 66B of the Road Traffic Act 1988.

Section 13 Classification of licences.

(1) A PSV operator’s licence may be either a standard licence or a restricted licence.

(2) A standard licence authorises the use of any description of public service vehicle and may authorise use either—

(a) on both national and international operations; or

(b) on national operations only.

(3) A restricted licence authorises the use (whether on national or international operations) of—

(a) public service vehicles not adapted to carry more than eight passengers; and

(b) public service vehicles not adapted to carry more than sixteen passengers when used—

(ii) otherwise than in the course of a business of carrying passengers; or

(ii) by a person whose main occupation is not the operation of public service vehicles adapted to carry more than eight passengers.

(4) For the purposes of subsection (3)(b)(i) above, a vehicle used for carrying passengers by a local or public authority shall not be regarded as used in the course of a business of carrying passengers unless it is used by the public service vehicle undertaking of that authority.

Section 14 Grant of licences

(1) On an application for a standard licence a traffic commissioner must consider whether the requirements of sections 14ZA and 14ZC are satisfied.

(2) On an application for a restricted licence a traffic commissioner must consider whether the requirements of sections 14ZB and 14ZC are satisfied.

(3) If on an application for a PSV operator’s licence the traffic commissioner determines that the relevant requirements mentioned in subsection (1) or (2) are satisfied the commissioner must, subject to section 16 (conditions attached to licences), grant the licence in accordance with the application.

Section 14A Objections to application for PSV operator’s licence.

(1) Where an application is made for the grant of a PSV operator’s licence under this Act, any chief officer of police or local authority may object to the grant of the licence on the ground that one or more of the requirements mentioned in sections 14ZA to 14ZC of this Act are not satisfied in relation to the application.

(2) An objection under this section shall be made within the prescribed time and in the prescribed manner and shall contain particulars of the ground on which it is made.

(2A) Where a traffic commissioner considers there to be exceptional circumstances that justify his doing so, he may direct that an objection be treated for the purposes of this Part of this Act as duly made under this section, notwithstanding that it was not made within the prescribed time or in the prescribed manner.

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) In this section “ local authority ” means—

(a) in England and Wales, the council of a county, district or London borough or the Common Council of the City of London or a Passenger Transport Executive; and

(b) in Scotland, a council constituted under section 2 of the Local Government etc. (Scotland) Act 1994 .

(5) This section does not apply in relation to any application for a special licence (within the meaning of section 12 of the Transport Act 1985).

Section 14ZA Requirements for standard licences

(1) The requirements of this section are set out in subsections (2) and (3).

(2) The first requirement is that the traffic commissioner is satisfied that the applicant—

(a) has an effective and stable establishment in Great Britain (as determined in accordance with Article 5 of the 2009 Regulation ),

(b) is of good repute (as determined in accordance with paragraph 1 of Schedule 3),

(c) has appropriate financial standing (as determined in accordance with Article 7 of the 2009 Regulation ), and

(d) is professionally competent (as determined in accordance with paragraphs 3, 4 and 6 of Schedule 3).

(3) The second requirement is that the traffic commissioner is satisfied that the applicant has designated a transport manager in accordance with Article 4 of the 2009 Regulation who—

(a) is of good repute (as determined in accordance with paragraph 1 of Schedule 3),

(b) is professionally competent (as determined in accordance with paragraph 6 of Schedule 3), and

(c) in the case of a transport manager designated under Article 4.2 of the 2009 Regulation —

(i) is not prohibited from being so designated by a traffic commissioner, and

(ii) is not designated to act as transport manager for a greater number of road transport operators or in respect of a greater number of vehicles than the traffic commissioner considers appropriate, having regard to the upper limits in Article 4.2(c) of the 2009 Regulation , or such smaller number as the commissioner considers appropriate (see Article 4.3 of the 2009 Regulation ).

Section 14ZB Requirements for restricted licences

The requirement of this section is that the traffic commissioner is satisfied that the applicant —

(a) is of good repute (as determined in accordance with paragraph 1 of Schedule 3), and

(b) has appropriate financial standing (as determined in accordance with paragraph 2 of Schedule 3).

Section 14ZC Requirements for standard and restricted licences

(1) The requirement of this section is that the traffic commissioner is satisfied —

(a) that there will be adequate facilities or arrangements for maintaining in a fit and serviceable condition the vehicles proposed to be used under the licence; and

(b) that there will be adequate arrangements for securing compliance with the requirements of the law relating to the driving and operation of those vehicles.

(2) In considering whether the requirement of this section is satisfied, the traffic commissioner may take into account any undertakings given by the applicant (or procured by the applicant to be given) for the purposes of the application and may assume those undertakings will be fulfilled.

(3) Where the traffic commissioner grants an application for a PSV operator’s licence, any undertakings taken into account by the commissioner under subsection (2) that the commissioner considers to be material to the granting of the application must be recorded in the licence issued to the applicant

Section 15 Duration of licences.

(1) There shall be specified in every PSV operator’s licence the date on which the licence is to come into force .

(2) Subject to its revocation or other termination under any provision of this Act or another statutory provision, a PSV operator’s licence shall continue in force indefinitely.

(3) If the holder of a PSV operator’s licence requests a traffic commissioner to terminate it at any time, he or another traffic commissioner must, subject to subsection (4) below, comply with the request.

(4) A traffic commissioner may refuse to comply with such a request if he or another traffic commissioner is considering taking action in respect of the licence under section 17(1) or (2) of this Act.

Section 16 Conditions attached to licences.

(1) Subject to subsection (1A) below and section 12(7) of the Transport Act 1985 A traffic commissioner on granting a PSV operator’s licence shall attach to it one or more conditions specifying the maximum number of vehicles (being vehicles having their operating centre in the traffic area to which that licence relates ) which the holder of the licence may at any one time use under the licence.

(1A) In the case of a restricted licence, the number specified as the maximum in any condition imposed under subsection (1) above shall not, except in any prescribed case or class of case, exceed two.

(2) Conditions attached under subsection (1) above to a PSV operator’s licence may specify different maximum numbers for different descriptions of vehicle.

(3) A traffic commissioner may attach to a PSV operator’s licence (whether at the time when the licence is granted or at any later time) such conditions or additional conditions as he thinks fit for restricting or regulating the use of vehicles under the licence, being conditions of any prescribed description.

(4) Without prejudice to the generality of the power to prescribe descriptions of conditions for the purposes of subsection (3) above, the descriptions which may be so prescribed include conditions for regulating the places at which vehicles being used under a PSV operator’s licence may stop to take up or set down passengers.

(5) At any time while a PSV operator’s licence is in force, a traffic commissioner may vary the licence by—

(a) altering in such manner as he thinks fit any condition attached under subsection (3) above to the licence; or

(b) removing any condition so attached to the licence.

(6) On the application of the holder of a PSV operator’s licence, a traffic commissioner may at any time while it is in force—

(a) vary the conditions attached under subsection (1) above to the licence; . . .

(b) exercise his powers (whether of alteration or removal) under subsection (5) above; or

(c) vary or remove any undertaking recorded in the licence;

and a person making an application under this subsection shall give to the traffic commissioner dealing with the application such information as he or another traffic commissioner may reasonably require for the discharge of duties of a traffic commissioner in relation to the application.

(6A) In considering whether to grant an application under subsection (6) above, a traffic commissioner may take into account any undertakings given by the applicant (or procured by him to be given) for the purposes of the application, and may assume that those undertakings will be fulfilled.

(6B) In any case where a traffic commissioner grants an application under subsection (6) above, any undertakings taken into account by him under subsection (6A) above that he considers to be material to the granting of the application shall be recorded in the licence as varied.

(7) Subject to section 68(3) of this Act, if a condition attached to a PSV operator’s licence is contravened, the holder of the licence shall be liable on summary conviction to a fine not exceeding level 3 on the standard scale .

(8) Compliance with any condition attached to a PSV operator’s licence . . . (other than a condition so attached under subsection (1A) above) may be temporarily dispensed with by a traffic commissioner if he is satisfied that compliance with the condition would be unduly onerous by reason of circumstances not foreseen when the condition was attached or, if the condition has been altered, when it was last altered.

(9) It is hereby declared that the conditions attached under subsection (1) or (1A) above to a PSV operator’s licence granted in relation to a traffic area do not affect the use by the holder of the licence of a vehicle—

(a) under a PSV operator’s licence granted to the holder of that licence in relation to any other traffic area;

(b) in circumstances such that another person falls to be treated as the operator of the vehicle (for example, by virtue of regulations under section 81(1)(a) of this Act).

Section 16A Conditions as to matters required to be notified.

(1) On issuing a standard licence, a traffic commissioner shall attach to it the following conditions, namely—

(a) a condition requiring the licence-holder to inform a traffic commissioner of any event which could affect the fulfilment by the licence-holder of any of the requirements of section 14ZA(2) of this Act, and to do so within 28 days of the event; and

(b) a condition requiring the licence-holder to inform a traffic commissioner of any event which could affect the fulfilment by a ... transport manager of the requirements mentioned in section 14ZA(3)(a) and (b) of this Act, and to do so within 28 days of the event coming to the licence-holder’s knowledge.

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) Any person who contravenes any condition attached under this section to a licence of which he is the holder is guilty of an offence and liable on summary conviction to a fine not exceeding level 4 on the standard scale.

Section 17 Revocation, suspension etc. of licences.

(1) A traffic commissioner must revoke a standard licence if it appears to the commissioner at any time that—

(a) the holder no longer satisfies the requirements of section 14ZA(2), or

(b) the transport manager designated in accordance with Article 4 of the 2009 Regulation no longer satisfies the requirements of section 14ZA(3).

(1A) Before revoking a standard licence under subsection (1), the traffic commissioner may serve on the holder a notice setting a time limit, in accordance with Article 13.1 of the 2009 Regulation , for the holder to rectify the situation.

(1B) If the holder rectifies the situation within the time limit set under subsection (1A), the traffic commissioner must not revoke the licence

(2) Without prejudice to subsection (1) above, a traffic commissioner may, on any of the grounds specified in subsection (3) below, at any time—

(a) revoke a PSV operator’s licence ;

(b) suspend such a licence for such period as he directs ;

(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(d) vary any condition attached under subsection (1) of section 16 of this Act to such a licence , or attach to such a licence (whether in addition to or in place of any existing condition so attached to it) any such condition as is mentioned in that subsection.

(3) The grounds for action under subsection (2) above are—

(a) that the holder of the licence made or procured to be made for the purposes of his application for the licence, or for the purposes of an application for a variation of the licence, a statement of fact which (whether to his knowledge or not) was false, or a statement of ... expectation which has not been fulfilled;

(aa) that any undertaking recorded in the licence has not been fulfilled;

(b) that there has been a contravention of any condition attached to the licence;

(c) that a prohibition under section 69 of the Road Traffic Act 1988 has been imposed with respect to a vehicle owned or operated by the holder of the licence, or that the holder of the licence has been convicted of an offence under section 71(1)(a) or (b) of that Act arising out of the contravention of such a prohibition ;

(d) in the case of a restricted licence, that the holder no longer satisfies the requirements of section 14ZB ;

(e) that there has been since the licence was granted or varied a material change in any of the circumstances of the holder of the licence which were relevant to the grant or variation of his licence.

(f) the licence is one in relation to which a direction given by a traffic commissioner under section 28(4) of the Transport Act 1985 (power when disqualifying a former licence holder to direct that certain other PSV operators’ licences should be liable to be revoked, suspended, etc. ) has effect

(4) A traffic commissioner shall not take any action under subsection (1) or (2) above in respect of any licence without first holding an inquiry if the holder of the licence requests that an inquiry be held .

(5) Where a traffic commissioner decides to revoke a licence under this section, he may direct that the revocation shall not take effect for such period as appears to him reasonably required to enable the business carried on under the licence to be transferred to another person duly licensed to carry it on.

(5A) Where a licence is suspended under this section, it remains in force during the time of its suspension subject to the limitation that no vehicles are authorised to be used under it.

(5B) Where a licence is suspended under this section, a traffic commissioner may at any time—

(a) cancel the suspension; or

(b) with the consent of the holder of the licence, vary the period for which it is suspended.

(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Section 17A Assessors to assist traffic commissioners.

(1) In considering any financial question which appears to him to arise in relation to the exercise of his functions under section 14, 16 or 17 of this Act or under the 2009 Regulation , a traffic commissioner may be assisted by an assessor drawn from a panel of persons appointed by the Secretary of State for the purposes of this section.

(2) A traffic commissioner shall pay to any such assessor, in respect of his services, such remuneration as may be determined by the Secretary of State with the consent of the Treasury.

Section 18 Duty to exhibit operator’s disc.

(1) Where a vehicle is being used in circumstances such that a PSV operator’s licence is required, there shall be fixed and exhibited on the vehicle in the prescribed manner an operator’s disc issued under this section showing particulars of the operator of the vehicle and of the PSV operator’s licence under which the vehicle is being used.

(2) A traffic commissioner on granting a PSV operator’s licence shall supply the person to whom the licence is granted—

(a) with a number of operators’ discs equal to the maximum number of vehicles that he may use under the licence in accordance with the condition or conditions attached to the licence under section 16(1) of this Act; or

(b) with such lesser number of operators’ discs as he may request.

(2A) Where, in the case of any PSV operator’s licence, the maximum number referred to in subsection (2)(a) above is increased on the variation of one or more of the conditions there referred to, the traffic commissioner on making the variation shall supply the holder of the licence—

(a) with such number of additional operators’ discs as will bring the total number of operators’ discs held by him in respect of the licence to that maximum number, or

(b) with such lesser number of additional operators’ discs as he may request.

(2B) Where the number of operators’ discs currently held in respect of a PSV operator’s licence is less than the maximum number referred to in subsection (2)(a) above, a traffic commissioner shall on the application of the holder of the licence supply him with such number of additional operators’ discs as is mentioned in subsection (2A)(a) or (b) above.

(2C) Where, in accordance with regulations under subsection (3)(aa) below, all the operators’ discs held in respect of a PSV operator’s licence expire at the same time, a traffic commissioner shall supply the holder of the licence with a number of new operators’ discs equal to the number of discs that have expired.

(3) Regulations may make provision—

(a) as to the form of operators’ discs and the particulars to be shown on them;

(aa) as to the expiry of operators’ discs;

(b) with respect to the custody and production of operators’ discs;

(c) for the issue of new operators’ discs in place of those lost, destroyed or defaced;

(d) for the return of operators’ discs on their expiry or otherwise ceasing to have effect, on the revocation or on termination of a PSV operator’s licence or in the event of a variation of one or more conditions attached to a licence under section 16(1) of this Act having the effect of reducing the maximum number of vehicles which may be used under the licence.

(e) for the voluntary return of operators’ discs by the holder of a PSV operator’s licence.

(4) Subject to section 68(3) of this Act, if a vehicle is used in contravention of subsection (1) above, the operator of the vehicle shall be liable on summary conviction to a fine not exceeding level 3 on the standard scale .

Section 19 Duty to inform traffic commissioners of relevant convictions etc.

(1) A person who has applied for a PSV operator’s licence shall forthwith notify the traffic commissioner dealing with the application if, in the interval between the making of the application and the date on which it is disposed of, a relevant conviction occurs of the applicant, or any employee or agent of his, or of any person proposed to be engaged as transport manager whose repute and competence are relied on in connection with the application.

(2) It shall be the duty of the holder of a PSV operator’s licence to give notice in writing to a traffic commissioner of—

(a) any relevant conviction of the holder; and

(b) any relevant conviction of any officer, employee or agent of the holder for an offence committed in the course of the holder’s road passenger transport business,

and to do so within 28 days of the conviction in the case of a conviction of the holder or his transport manager and within 28 days of the conviction coming to the holder’s knowledge in any other case.

(2A) For the purposes of subsections (1) and (2) above the issue to a person of a fixed penalty notice or conditional offer under Part 3 of the Road Traffic Offenders Act 1988 in respect of an offence prescribed for the purposes of this Act is to be treated as if it were a relevant conviction of him.

(3) It shall be the duty of the holder of a PSV operator’s licence within 28 days of the occurrence of—

(a) the bankruptcy or liquidation of the holder, or the sequestration of his estate or the entry into administration of the holder or the appointment of a receiver, manager or trustee of his road passenger transport business; or

(aa) the making of a debt relief order in respect of the holder (under Part 7A of the Insolvency Act 1986); or

(b) any change in the identity of the transport manager of the holder’s road passenger transport business,

to give notice in writing of that event to a traffic commissioner .

(4) On granting or varying a PSV operator’s licence, or at any time after the grant or variation of such a licence, a traffic commissioner may require the holder of the licence to inform a traffic commissioner forthwith, or within a specified period, of any specified material change in any of the holder’s circumstances which were relevant to the grant or variation of the licence.

(4A) In subsection (4) “specified” means specified by the traffic commissioner imposing the requirement to inform.

(5) Subject to section 68(1) of this Act, a person who fails to comply with subsection (1), (2) or (3) above or with any requirement under subsection (4) above shall be liable on summary conviction to a fine not exceeding level 3 on the standard scale .

Section 20 Duty to give traffic commissioners information about vehicles.

(1) It shall be the duty of the holder of a PSV operator’s licence, on the happening to any public service vehicle owned by him of any failure or damage of a nature calculated to affect the safety of occupants of the public service vehicle or of persons using the road, to report the matter as soon as is practicable to the Secretary of State in accordance with regulations made by virtue of subsection (2A) below .

(2) It shall be the duty of the holder of a PSV operator’s licence, on any alteration otherwise than by replacement of parts being made in the structure or fixed equipment of any public service vehicle owned by him, to give notice of the alteration as soon as is practicable to the Secretary of State in accordance with regulations made by virtue of subsection (2A) below .

(2A) Regulations may make provision—

(a) for any report or notice required under subsection (1) or (2) above to be made or given to the Secretary of State or to the prescribed testing authority;

(b) for requiring a public service vehicle to be submitted for examination in the event of any such failure or damage as is mentioned in subsection (1) above or any such alteration as is mentioned in subsection (2) above; and

(c) for the examinations to be carried out under the regulations and, in particular, for authorising any such examination to be carried out by or under the direction of a an examiner appointed under section 66A of the Road Traffic Act 1988 or an authorised inspector.

(3) A traffic commissioner may—

(a) require the holder of a PSV operator’s licence to supply him or another traffic commissioner forthwith or within a specified time with such information as he may reasonably require about the public service vehicles owned by the holder and normally kept at an operating centre within the traffic area to which the licence relates , and to keep up to date information supplied by the holder under this paragraph; or

(b) require the holder or former holder of a PSV operator’s licence to supply him or another traffic commissioner forthwith or within a specified time with such information as he may reasonably require about the public service vehicles owned by the holder or former holder at any material time specified by him which were at that time normally kept at an operating centre within the traffic area to which the licence relates .

In this subsection “ material time ” means a time when the PSV operator’s licence in question was in force.

(4) Subject to section 68(1) of this Act, a person who fails to comply with the provisions of subsection (1) or (2) above or with any requirement under subsection (3) above shall be liable on summary conviction to a fine not exceeding level 3 on the standard scale .

(5) A person who in purporting to comply with any requirement under subsection (3) above supplies any information which he knows to be false or does not believe to be true shall be liable on summary conviction to a fine not exceeding level 4 on the standard scale .

(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Section 21 Certificates of qualification.

(1) A person who wishes to do either of the following things in a member State or in Northern Ireland, namely to carry on a road passenger transport business or to be the transport manager of such a business, may apply to a traffic commissioner for a certificate as to the applicant’s repute and professional competence and, where relevant, his financial standing.

(2) A person applying for a certificate under subsection (1) above shall give to the traffic commissioner dealing with the application such information as he or another traffic commissioner may reasonably require for the discharge of duties of a traffic commissioner in relation to the application.

(3) The traffic commissioner dealing with an application under subsection (1) above shall certify such matters relating to the applicant as—

(a) he is satisfied he may properly certify, and

(b) appear to the commissioner to be of assistance to the applicant in satisfying the requirements of the law of the ... member State in which he wishes to carry on business or to work or, as the case may be, the requirements of the law of Northern Ireland.

Section 22 Drivers’ licences.

(1) A person—

(a) shall not drive a public service vehicle on a road unless he is licensed for the purpose under this section; and

(b) shall not employ a person who is not so licensed for the purpose to drive a public service vehicle on a road.

Notwithstanding section 1(1) of this Act, in this section and in sections 23 to 26 of this Act “ public service vehicle ” shall be construed as meaning a public service vehicle being used on a road for carrying passengers for hire or reward.

(2) The authority having power to grant under this section a licence to a person to drive a public service vehicle shall be— the traffic commissioner for the traffic area in which that person resides at the time when he applies for a licence .

(3) A person shall be disqualified for obtaining a licence to drive a public service vehicle unless he fulfils such conditions as may be prescribed.

(4) A licence to drive a public service vehicle may be limited to such type or types of vehicles as may be specified in the licence.

(5) A licence to drive a public service vehicle may at any time be suspended or revoked by the authority by whom it was granted upon the ground that, by reason of his conduct or physical disability, the holder is not a fit person to hold such a licence; and a licence suspended under this subsection shall during the time of suspension be of no effect.

(6) A licence to drive a public service vehicle shall, unless previously revoked, continue in force for five years from the date on which it is expressed to take effect.

(7) Without prejudice to section 23(3) of this Act if, on the date on which an application is made for a licence to drive a public service vehicle, the applicant is the holder of such a licence, the existing licence shall, notwithstanding anything in subsection (6) above, continue in force until the application is disposed of.

(8) A licence granted under this section to a person resident in any traffic area shall be valid in every other traffic area.

(9) Subject to section 68(1) and (3) of this Act, a person who contravenes subsection (1)(a) or (b) above shall be liable on summary conviction to a fine not exceeding level 4 on the standard scale .

Section 23 Appeals to courts of summary jurisdiction in connection with driver’s licences.

(1) A person who, being the holder of or an applicant for a licence to drive a public service vehicle, feels aggrieved by the refusal or failure of a traffic commissioner . . . to grant, or by the suspension or revocation of, such a licence, or by any limitation imposed thereon, may by notice in writing to the commissioner . . . , require him . . . to reconsider the matter and shall on the reconsideration be entitled to be heard either personally or by his representative.

(2) A person who is so aggrieved or who is dissatisfied with the decision of the commissioner . . . on the reconsideration of the matter may appeal—

(a) if he resides in England or Wales, to a magistrates’ court acting for the petty sessions area in which he resides,

(b) if he resides in Scotland, to the sheriff within whose jurisdiction he resides,

and on any such appeal the court or sheriff may make such order as it or he thinks fit and any order so made shall be binding on the commissioner . . . .

(3) Where the applicant for a licence to drive a public service vehicle, who is at the date of his application the holder of a licence, appeals under this section on the ground of refusal or failure to grant the licence, the existing licence shall, notwithstanding anything in section 22(6) of this Act, continue in force until the appeal has been disposed of.

Section 23A Northern Ireland drivers’ licences.

(1) A licensing authority may, notwithstanding any driving test condition imposed by regulations, grant a licence to an applicant to drive a public service vehicle of any type if the authority is satisfied that the applicant has, within the period of five years ending on the date of the coming into force of the licence, held a licence granted under the law of Northern Ireland to drive a public service vehicle of that type.

(2) In this section—

“ driving test condition ”, in relation to an applicant for a licence to drive a public service vehicle of any type, means a condition as to the provision of facilities for, or the passing of, a practical test of his ability to drive a public service vehicle of that type;

“ licencing authority ” shall be construed in accordance with section 22(2) of this Act.

Section 24 Regulation of conduct of drivers, inspectors and conductors.

(1) Regulations may make provision for regulating the conduct, when acting as such, of—

(a) persons licensed to act as drivers of public service vehicles, and

(b) inspectors and conductors of such vehicles; and

(c) drivers, inspectors and conductors of tramcars.

(2) Subject to section 68(1) of this Act, if a person to whom regulations having effect by virtue of this section apply contravenes, or fails to comply with, any of the provisions of the regulations, he shall be liable on summary conviction to a fine not exceeding level 2 on the standard scale and, in the case of an offence by a person acting as driver of a public service vehicle , the court by which he is convicted may, if it thinks fit, send notice of the particulars of the conviction to the Secretary of State requiring the Secretary of State to endorse them on the person's driving record (within the meaning of section 97A of the Road Traffic Offenders Act 1988) .

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) In this section and in section 25 of this Act “ inspector ”, in relation to a public service vehicle, means a person authorised to act as an inspector by the holder of the PSV operator’s licence under which the vehicle is being used.

(5) Notwithstanding section 1(1) of this Act, in this section and in sections 25 and 26 of this Act “ public service vehicle ” shall be construed as meaning a public service vehicle being used on a road for carrying passengers for hire or reward.

Section 25 Regulation of conduct of passengers.

(1) Regulations may make provision generally as to the conduct of passengers on public service vehicles or tramcars and in particular (but without prejudice to the generality of the foregoing provision) for—

(a) authorising the removal from a public service vehicle or tramcar of a person infringing the regulations by the driver, inspector or conductor of the vehicle or on the request of the driver, inspector or conductor by a police constable;

(b) requiring a passenger in a public service vehicle or tramcar who is reasonably suspected by the driver, inspector or conductor thereof of contravening the regulations to give his name and address to the driver, inspector or conductor on demand;

(c) requiring a passenger to declare, if so requested by the driver, inspector or conductor, the journey he intends to take or has taken in the vehicle, and to pay the fare for the whole of that journey and to accept any ticket provided therefor;

(d) requiring, on demand being made for the purpose by the driver, inspector or conductor, production during the journey and surrender at the end of the journey by the holder thereof of any ticket issued to him;

(e) requiring a passenger, if so requested by the driver, inspector or conductor, to leave the vehicle on the completion of the journey the fare for which he has paid;

(f) requiring the surrender by the holder thereof on the expiry of the period for which it is issued of a ticket issued to him.

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) Subject to section 68(1) of this Act, if a person contravenes, or fails to comply with, a provision of regulations having effect by virtue of this section, he shall be liable on summary conviction to a fine not exceeding level 3 on the standard scale .

(4) In the application of this section to Scotland, subsection (1)(b) shall have effect as if after the word “address” there were inserted the words “to a police constable or”

Section 26 Control of number of passengers.

(1) Regulations may make provision with respect to public service vehicles for—

(a) the determination by or under the regulations of the number of the seated passengers and standing passengers respectively for whom a vehicle is constructed or adapted and fit to carry;

(b) the determination by or under the regulations of the number of such passengers respectively who may be carried in a vehicle;

(c) the marks to be carried on a vehicle showing those numbers and the manner in which those marks are to be carried.

(2) Subject to section 68(1) and (3) of this Act, if a person contravenes, or fails to comply with, a provision of regulations having effect by virtue of this section, he shall be liable on summary conviction to a fine not exceeding level 2 on the standard scale .

Section 29 Avoidance of contracts so far as restrictive of liability in respect of death of or injury to passengers in public service vehicles.

A contract for the conveyance of a passenger in a public service vehicle shall, so far as it purports to negative or to restrict the liability of a person in respect of a claim which may be made against him in respect of the death of, or bodily injury to, the passenger while being carried in, entering or alighting from the vehicle, or purports to impose any conditions with respect to the enforcement of any such liability, be void.

This section does not apply to anything that is governed by Article 6 of the 2011 Regulation .

Section 46 Fare-paying passengers on school buses.

(1) Subject to subsection (2) below, a local authority may—

(a) use a school bus, when it is being used to provide free school transport, to carry as fare-paying passengers persons other than those for whom the free school transport is provided;

(b) use a school bus belonging to the authority, when it is not being used to provide free school transport, to provide a local . . . service;

and sections 6, 8, 9, and 12(1) of this Act shall not apply to a school bus belonging to a local authority in the course of its use by the authority in accordance with this subsection.

(2) Subsection (1) above does not affect the duties of a local authority in relation to the provision of free school transport or authorise a local authority to make any charge for the carriage of a pupil on a journey which he is required to make in the course of his education at a school maintained by such an authority.

(3) In this section—

“ free school transport ” means transport provided by a local authority free of charge—

in pursuance of arrangements under section 508B(1), section 508C(1), section 508F(1), section 509(1) or (1A) or section 509AA(7)(b) or (9)(a) of the Education Act 1996,

in pursuance of arrangements made by the authority in pursuance of a scheme made by them under Schedule 35C to that Act (school travel schemes), or

in pursuance of arrangements under sections 3 or 4 of the Learner Travel (Wales) Measure 2008, or

otherwise, in the exercise of any function of the authority,

for the purpose of facilitating the attendance of persons receiving education or training at any premises;

“local authority” has the meaning given by section 579(1) of the Education Act 1996;

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

“ school bus ”, in relation to a local authority , means a motor vehicle which is used by that authority to provide free school transport.

(4) In the application of this section to Scotland—

(a) for the references to a local authority there shall be substituted references to an education authority;

(b) in subsection (2) above for “maintained by” there shall be substituted “under the management of”; and

(c) in subsection (3) above for the definition of “free school transport” there shall be substituted—

“ free school transport ” means transport between a pupil’s home and place of education provided in pursuance of arrangements under subsection (1)(a) of section 51 of the Education (Scotland) Act 1980 (pupils for whom such transport facilities are necessary) or in pursuance of subsection (2) of that section (other pupils allowed to use vacant seats free of charge)

Section 49A Review of decisions.

(1) Subject to subsection (2) below, a traffic commissioner may review and, if he thinks fit, vary or revoke any decision of his , or of another traffic commissioner —

(a) to grant or refuse an application for a PSV operator’s licence; or

(b) to grant or refuse an application for the variation of a PSV operator’s licence,

if he is satisfied that a procedural requirement imposed by or under this Act has not been complied with in relation to the decision.

(2) A traffic commissioner may only review a decision under subsection (1) above—

(a) if, within such period after the taking of the decision as may be prescribed, he or another traffic commissioner has given to the applicant or (as the case may be) the licence-holder notice of intention to review the decision;

(b) if, within that period, a person who appears to him to have an interest in the decision has requested that the decision be reviewed by a traffic commissioner ; or

(c) where neither paragraph (a) nor paragraph (b) above applies, if he considers there to be exceptional circumstances that justify the review.

(3) Regulations may make provision as to the manner in which notices under subsection (2)(a) above are to be or may be served, including provision as to the circumstances in which and time at which any such notice is to be treated as having been duly served (whether or not it has in fact been served).

(4) The variation or revocation of a decision under this section shall not make unlawful anything done in reliance on the decision before the variation or revocation takes effect.

Section 50 Appeals to the Upper Tribunal

(1) An applicant for the grant of a PSV operator’s licence under this Act may appeal to the Upper Tribunal against any decision of a traffic commissioner —

(a) to refuse to grant the licence in accordance with the application; or

(b) to attach any condition to the licence otherwise than in accordance with the application.

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) Where an application for a PSV operator’s licence is granted under this Act and a person who duly made an objection to the grant under section 14A of this Act is aggrieved by the grant of the licence he may appeal to the Upper Tribunal .

(4) The holder of a PSV operator’s licence may appeal to the Upper Tribunal against any decision of a traffic commissioner —

(a) to refuse his application for the variation or removal of any condition attached to the licence; or any undertaking recorded in it

(b) to vary any such condition, or to attach any new condition to the licence, otherwise than on his application; or

(c) to revoke or suspend the licence ... .

(4A) A person who—

(a) within the prescribed period has made an application for a review under section 49A of this Act; and

(b) has been certified by a traffic commissioner as a person such as is mentioned in subsection (2)(b) of that section,

may appeal to the Upper Tribunal against the refusal of the application.

(5) Where—

(a) the holder of a PSV operator’s licence in respect of which an order or direction has been made or given under section 28 of the Transport Act 1985 (power to disqualify PSV operators); or

(b) any person in respect of whom any such order or direction has been made or given;

is aggrieved by the order or direction he may appeal to the Upper Tribunal .

(5A) A person aggrieved by the refusal of the prescribed testing authority to approve a vehicle as a type vehicle under section 10 of this Act or by the withdrawal by that authority under that section of such approval may appeal to the Secretary of State

(6) A traffic commissioner —

(a) making any such decision with respect to a licence as is mentioned in subsection (4)(b) or (c) above;

(b) making any such order or giving any such direction as is mentioned in subsection (5) above;

may, if the holder of the licence or any such person as is mentioned in subsection (5)(b) above so requests, direct that his decision shall not have effect until the expiration of the period within which an appeal against it may be made to the Upper Tribunal and, if an appeal is made, until it is disposed of.

(6A) A person aggrieved by the refusal of a certifying officer or public service vehicle examiner or by the refusal of an authorised inspector to remove a prohibition under section 9(1) of this Act may appeal to the Secretary of State.

(6B) On any appeal under subsection (5A), (6) or (6A) above the Secretary of State shall cause an examination of the vehicle concerned to be made by an officer of the Secretary of State appointed by him for the purpose and shall make such determination on the basis of the examination as he thinks fit.

(7) Where a traffic commissioner has given a direction under subsection (6) above he or another traffic commissioner may withdraw it at any time.

(8) If a traffic commissioner refuses to give a direction under subsection (6) above or withdraws such a direction, the person requesting it may apply for such a direction to the Upper Tribunal ... .

(9) This section does not apply in relation to conditions attached to a PSV operator’s licence under section 8 of the Transport Act 1985 (enforcement of traffic regulation conditions).

Section 51 Appeals to the Secretary of State.

(1) A person applying for—

(a) a certificate of initial fitness under section 6 of this Act; or

(b) a certificate under section 10 of this Act that a vehicle conforms to a type vehicle;

may appeal to the Secretary of State against the refusal of an examiner to issue such a certificate.

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) An appeal under this section must be made within the prescribed time and in the prescribed manner; and provision may be made by regulations as to the procedure to be followed in connection with such appeals.

(4) On the determination of an appeal under this section, the Secretary of State may confirm, vary or reverse the decision appealed against, and may give such directions as he thinks fit to the examiner for giving effect to his decision; and it shall be the duty of the examiner to comply with any such directions.

Section 52 Fees for grant of licences etc.

(1) Such fees, payable at such times, and whether in one sum or by instalments, as may be prescribed shall be charged—

(a) by a traffic commissioner in respect of—

(i) applications for, and the grant of, PSV operators’ licences ... ;

(ia) applications under section 16(6) of this Act and the grant of such applications;

(ib) the continuation in force of PSV operators’ licences;

(ii) applications for certificates of initial fitness under section 6 of this Act which are required by regulations to be made to a traffic commissioner and the issue of certificates on such applications;

(iii) the issue of operators’ discs under section 18 of this Act;

(iv) applications for, and the issue of, certificates under section 21 of this Act as to repute, professional competence or financial standing; and

(v) applications for, and the issue of, documents required in relation to public service vehicles registered in Great Britain while making journeys to or from places outside Great Britain or in relation to public service vehicles registered outside Great Britain;

(b) by the traffic commissioner for each traffic area ... in respect of—

(i) applications for, and the issue of, licences to drive public service vehicles; and

(ii) the provision by the traffic commissioner ... of facilities for a person to undergo a test of his competence as a driver in connection with an application by him for a licence to drive a public service vehicle, being a test which he is by virtue of regulations required to undergo in that connection.

(2) A traffic commissioner ... may, if any fee or instalment of a fee due in respect thereof has not been paid, decline to proceed with—

(a) any such application as is mentioned in subsection (1) above;

(b) the grant of any PSV operator’s licence or of any application under section 16(6) of this Act;

(bb) the issue of any certificate, disc or other document referred to in subsection (1) above; or

(c) the provision of any such facilities as are mentioned in paragraph (b)(ii) of that subsection,

until the fee or instalment in question has been paid.

(2A) If, in the case of any application for a PSV operator’s licence, any fee or instalment of a fee in respect of the application, the grant of the licence or the issue of operators’ discs under section 18(2) of this Act is not duly paid by the prescribed time—

(a) the application shall be treated as withdrawn at that time;

(b) any decision made on the application ceases to have effect at that time; and

(c) any licence granted in pursuance of such a decision terminates at that time.

(2B) If, in the case of any application under section 16(6) of this Act, any fee or instalment of a fee in respect of the application, the grant of the application or the issue of operators’ discs under section 18(2A) of this Act is not duly paid by the prescribed time—

(a) the application shall be treated as withdrawn at that time;

(b) any decision made on the application, and any variation effected in pursuance of such a decision, ceases to have effect at that time.

(2C) If, in the case of any PSV operator’s licence, any fee or instalment of a fee in respect of—

(a) the continuation in force of the licence; or

(b) the issue of operators’ discs under section 18(2C) of this Act,

is not duly paid by the prescribed time, the licence terminates at that time.

(2D) If any fee or instalment of a fee in respect of any operators’ discs that have been issued under section 18 of this Act is not duly paid by the prescribed time, the discs cease to have effect at that time.

(2E) A traffic commissioner may, if he considers there to be exceptional circumstances that justify his doing so in any case where subsection (2A), (2B), (2C) or (2D) above has applied, direct that as from the time mentioned in that subsection its effect in that case be disregarded.

(2F) Where a traffic commissioner has given a direction under subsection (2E) above in respect of a PSV operator’s licence in a case where subsection (2A) or (2C) above has applied, it shall not for the purposes of section 20(1) or (2) of this Act be regarded as having been practicable for the licence-holder to—

(a) report any matter to the Secretary of State; or

(b) give him notice of any alteration,

during the period beginning with the time mentioned in subsection (2A) or (2C) and ending when the direction came into force.

(3) Any fees received by a traffic commissioner by virtue of this section ... shall be paid into the Consolidated Fund in such manner as the Treasury may direct.

(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Section 53 Payment of expenses.

(1) There shall be paid in every year out of moneys provided by Parliament such sums as the Secretary of State may, with the consent of the Minister for the Civil Service, direct in respect of the salaries, remuneration, establishment charges, and other expenses of . . . traffic commissioners, . . ., and any other officer or servant appointed by the Secretary of State for the purposes of Part I, or II . . . of this Act, including any expenses incurred in connection with the employment of police officers as . . . vehicle examiners.

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Section 54 Inquiries held by traffic commissioners.

(1) A traffic commissioner may, at such places as appear to him to be convenient, hold such inquiries as he thinks fit in connection with the exercise of his functions.

(2) Where, as respects the proposed exercise of his powers on any occasion, a traffic commissioner receives a request for an inquiry from two or more persons a single inquiry may be held in response to those requests.

(3) Subject to any provision made by regulations, any inquiry held under this section shall be public.

(4) Where a traffic commissioner proposes to hold an inquiry for the purpose of considering any application or proposal, he shall publish notice of the inquiry in the prescribed manner.

(5) Where a traffic commissioner holds an inquiry he may, in such circumstances as may be prescribed and subject to any provision made under subsection (6) below, make such order as he thinks fit as to the payment, by such party to the inquiry as he thinks fit, of costs incurred by him or by the Secretary of State in connection with the holding of the inquiry.

(6) Regulations may make provision, in relation to orders under subsection (5) above, as to—

(a) the method of calculating the amount of any costs incurred as mentioned in that subsection; and

(b) the maximum amount which may be ordered to be paid under such an order.

(7) Any amount so ordered to be paid by any person may be recoverable from him—

(a) in England and Wales, as a debt due to the Crown; or

(b) in Scotland, by the Secretary of State.

(8) Information with respect to any particular trade or business which is given at any such inquiry while admission to the inquiry is restricted in accordance with regulations shall not be disclosed, so long as that trade or business continues to be carried on, except—

(a) with the consent of the person for the time being carrying it on;

(b) for the purpose of the discharge by any person of his functions under any enactment mentioned in subsection (9) below or under the 2009 Regulation or the 2011 Regulation ; or

(c) with a view to the institution of, or otherwise for the purposes of, any legal proceedings pursuant to or arising out of any such enactment or the 2009 Regulation or the 2011 Regulation (including proceedings before the Upper Tribunal );

and any person who discloses any information in contravention of this subsection shall be liable on summary conviction to a fine not exceeding level 4 on the standard scale.

(9) The enactments referred to in subsection (8)(b) and (c) above are—

(a) sections 12 to 21 of this Act; ...

(b) sections 24 to 28 of the Transport Act 1985

(c) the Rights of Passengers in Bus and Coach Transport (Exemptions and Enforcement) Regulations 2013.

(10) The Secretary of State may by order made by statutory instrument amend subsection (9) above by adding a reference to an enactment or by removing any such reference; and any statutory instrument made in exercise of the power conferred by this subsection shall be subject to annulment in pursuance of a resolution of either House of Parliament.

Section 55 Annual report of traffic commissioners and metropolitan police commissioner.

Each traffic commissioner shall make an annual report to the Secretary of State on his proceedings containing particulars with respect to such matters as the Secretary of State may direct . . . .

Section 56 Records of licences.

(1) Each traffic commissioner ... shall keep a record in such form and containing such particulars as may be prescribed of all licences granted by ... him under this Act and shall allow the record to be inspected at all reasonable times by members of the public .

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) A record kept under this section shall be admissible in evidence of the matters required under this Act to be entered therein, and a copy of an entry made in such a record in pursuance of this section purporting to be signed by or on behalf of the authority by whom the record is kept and to be certified to be a true copy shall be evidence of the matters stated in that entry without proof of the signature or authority of the person signing the same.

Section 56A Correction of errors

(1) This section applies in any case where it appears to a traffic commissioner that there is a clerical error in a document purporting to record, or which is issued in consequence of, a decision taken by any traffic commissioner in the exercise of his functions.

(2) In any such case, the traffic commissioner may issue a corrected document or a notice in writing that the document is to have effect with such corrections as are stated in the notice.

Section 57 Death, bankruptcy etc. of licence holder.

(1) A PSV operator’s licence ... is not assignable or, subject to the following provisions of this section, transmissible on death or in any other way.

(2) A PSV operator’s licence ... held by an individual terminates if he—

(a) dies, or

(b) is made bankrupt or has a debt relief order (under Part 7A of the Insolvency Act 1986) made in respect of him, or , in Scotland, has his estate sequestrated, or

(c) becomes a person who lacks capacity (within the meaning of the Mental Capacity Act 2005) to use a vehicle under the licence, or , in Scotland, becomes incapable of managing his own affairs.

(3) In relation to a PSV operator’s licence ... held by an individual or by a company, regulations may specify other events relating to the licence-holder on the occurrence of which the licence is to terminate.

(4) A traffic commissioner may—

(a) direct that the termination of a PSV operator’s licence by subsection (2) above, or under subsection (3) above, be deferred for a period not exceeding twelve months or, if it appears to the commissioner that there are special circumstances, eighteen months, and

(b) authorise the business of the licence-holder to be carried on under the licence by some other person during the period of deferment, subject to such conditions as the commissioner may impose.

(5) In the case of a standard licence, subsection (4)(a) is subject to Article 13.1 of the 2009 Regulation (time limits for rectification).

Section 58 Partnerships and related matters.

(1) Provision may be made by regulations for modifying the provisions of this Act, and any other statutory provisions relating to public service vehicles, in their application to the operation of vehicles and the provision of services by persons in partnership.

(2) A PSV operator’s licence . . . shall not be granted to an unincorporated body as such or to more than one person jointly except in cases permitted by regulations under this section.