Local Transport Act 2008

• Citation: 2008 c. 26
• Sections: 296

Section 1 Traffic areas

(1) Section 3 of the PP VA 1981 (traffic areas) is amended as follows.

(2) After subsection (2) (orders varying traffic areas) insert—

(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.

Section 2 Traffic commissioners

(1) Section 4 of the PPVA 1981 (traffic commissioners) is amended as follows.

(2) For subsections (1) and (2) (commissioner to be appointed for each traffic area etc ) substitute—

(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) In subsection (3) (function of issuing licences) for “The traffic commissioner for each traffic area” substitute “ A traffic commissioner ” .

(4) After subsection (3) insert—

(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.

(5) In subsection (4) (terms of office) in the opening words, for “the traffic commissioner for a traffic area” substitute “ a traffic commissioner ” .

(6) In subsection (5) (declaration of certain financial interests before appointment) for “the traffic commissioner for a traffic area” substitute “ a traffic commissioner ” .

(7) In section 82(1) of the PPVA 1981 (general definitions) insert at the appropriate place—

“ the Scottish traffic commissioner ” is to be read in accordance with section 4(1)(b) (the traffic commissioner for the Scottish Traffic Area);

Section 3 The senior traffic commissioner

(1) After section 4 of the PPVA 1981 (traffic commissioners) insert—

Appointment of senior traffic commissioner

(4A)

(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.

Power of senior traffic commissioner to deploy other commissioners

(4B)

(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.

Power of senior traffic commissioner to give guidance and directions

(4C)

(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.

(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 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.

Guidance to senior traffic commissioner by Secretary of State

(4D)

(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.

(2) In each of the following provisions (which provide for traffic commissioners to act under general directions of the Secretary of State)—

(a) section 4(4)(a) of the PPVA 1981,

(b) section 1(2) of the Goods Vehicles (Licensing of Operators) Act 1995 (c. 23),

for “the general directions of the Secretary of State” substitute “ the general directions of, and shall have regard to any guidance given by, the senior traffic commissioner ” .

(3) In Schedule 2 to the PPVA 1981 (traffic commissioners) in paragraph 8, at the beginning insert “ (1) ” and at the end insert—

(2) There shall be paid to the senior traffic commissioner such additional remuneration in respect of the responsibilities of that office as may be so determined.

(4) The person who, on the date on which section 4A(1) of the PPVA 1981 comes into force, is the person designated by the Secretary of State as senior traffic commissioner—

(a) is to become, on that date, the first holder of the office of senior traffic commissioner, and

(b) is to remain in that office until the expiry of the term for which that person was so designated (but subject to section 4A(3)(b) of, and Schedule 2 to, the PPVA 1981).

Section 4 Amendments of Schedule 2 to the PPVA 1981

(1) Schedule 2 to the PPVA 1981 (traffic commissioners) is amended as follows.

(2) In paragraph 1 (removal of traffic commissioner for inability or misbehaviour) for “for inability or misbehaviour” substitute

on the grounds that the traffic commissioner—

(a) has misbehaved; or

(b) is unable, unfit or unwilling to perform the functions of traffic commissioner to a standard which the Secretary of State considers satisfactory

(3) The amendment made by subsection (2) has effect in relation to traffic commissioners appointed before, as well as traffic commissioners appointed on or after, the day on which that amendment comes into force.

(4) After paragraph 2 insert—

Deputy traffic commissioners for England and Wales

(2A)

(1) The Secretary of State may appoint such number of persons to be deputy traffic commissioners for England and Wales as the Secretary of State thinks fit.

(2) A deputy traffic commissioner for England and Wales—

(a) may exercise any 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.

(3) Appointment as a deputy traffic commissioner for England and Wales shall be upon such terms and conditions, including conditions as to the time to be devoted to the duties of the office, as the Secretary of State may determine.

(4) A deputy traffic commissioner for England and Wales shall carry out such of the functions of that office as the senior traffic commissioner may determine under section 4B of this Act—

(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 so determine.

(5) A deputy traffic commissioner for England and Wales shall carry out such of those functions as the senior traffic commissioner may determine under section 4B of this Act 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 so determine.

(6) In this paragraph “ reserved matters ” means reserved matters within the meaning of the Scotland Act 1998.

(5) In consequence of the amendments made by this section, at the end of the italic heading preceding paragraph 3 there is inserted “ in Scotland ” .

(6) After that heading, insert—

2B Paragraphs 3 to 5 below have effect in relation to the Scottish Traffic Area only. . 7 After paragraph 5 insert— Appointment of acting traffic commissioner during vacancy

(5A)

(1) Where the office of any traffic commissioner for England and Wales becomes vacant, the Secretary of State may appoint a person (whether or not over the age of 65) to act as a traffic commissioner for England and Wales pending the appointment of a new traffic commissioner under section 4 of this Act.

(2) Any person appointed under sub-paragraph (1) 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 (except those of paragraph 9 below) as a traffic commissioner for England and Wales.

(8) In consequence of the amendment made by subsection (7), in paragraph 6(1) (appointment of acting traffic commissioner during vacancy) after “for any traffic area” insert “ in Scotland ” .

(9) In paragraph 9 (principal civil service pension scheme) for “traffic commissioner for each of the traffic areas” substitute “ traffic commissioner for England and Wales or for the Scottish Traffic Area ” .

Section 5 Transitional provision for existing traffic commissioners etc

(1) Any existing traffic commissioner for a traffic area in England and Wales—

(a) on the relevant commencement, becomes instead a traffic commissioner for England and Wales with all the powers and duties of such a commissioner,

(b) holds that office on the terms and conditions that applied to the commissioner immediately before the relevant commencement,

(c) is subject to paragraph 1 of Schedule 2 to the PPVA 1981 (grounds for dismissal), as amended by section 4, as from the coming into force of that amendment.

(2) Any appointment of a person as a deputy traffic commissioner for a traffic area in England and Wales before the relevant commencement—

(a) continues in force notwithstanding the substitution of subsections (1) and (2) of section 4 of the PPVA 1981 effected by section 2,

(b) has effect as from the relevant commencement as an appointment under paragraph 2A of Schedule 2 to that Act as a deputy traffic commissioner for England and Wales with all the powers and duties of such a commissioner,

(c) as from the relevant commencement is held on the terms and conditions that applied to the deputy traffic commissioner immediately before the relevant commencement.

(3) Any appointment of a person as an acting traffic commissioner for a traffic area in England and Wales before the relevant commencement—

(a) continues in force notwithstanding the substitution of subsections (1) and (2) of section 4 of the PPVA 1981 effected by section 2,

(b) has effect as from the relevant commencement as an appointment under paragraph 5A of Schedule 2 to that Act to act as a traffic commissioner for England and Wales with all the powers and duties of such a commissioner,

(c) as from the relevant commencement is held on the terms and conditions that applied to the acting traffic commissioner immediately before the relevant commencement.

(4) Any existing traffic commissioner for the Scottish Traffic Area—

(a) on the relevant commencement, becomes instead the Scottish traffic commissioner with all the powers and duties of that commissioner,

(b) holds that office on the terms and conditions that applied to the traffic commissioner immediately before the relevant commencement, and

(c) is subject to paragraph 1 of Schedule 2 to the PPVA 1981 (grounds for dismissal), as amended by section 4, as from the coming into force of that amendment.

(5) In this section—

“ acting traffic commissioner ” means a person appointed under paragraph 6 of Schedule 2 to the PPVA 1981 to act as a traffic commissioner for a traffic area;

“ deputy traffic commissioner ” means a person appointed under paragraph 3 or 4 of Schedule 2 to the PPVA 1981 to act as deputy to a traffic commissioner for a traffic area;

“ existing traffic commissioner ” means a person—

who is a traffic commissioner for a traffic area immediately before the relevant commencement, and

who would, apart from the amendments made by this Act, have continued as such after the relevant commencement;

“ the relevant commencement ” means—

in relation to an existing traffic commissioner, the coming into force of the substitution of subsections (1) and (2) of section 4 of the PPVA 1981 effected by section 2;

in relation to a deputy traffic commissioner for a traffic area in England and Wales, the coming into force of paragraph 2A of Schedule 2 to the PPVA 1981 (which is inserted by section 4);

in relation to an acting traffic commissioner for a traffic area in England and Wales, the coming into force of paragraph 5A of Schedule 2 to the PPVA 1981 (which is inserted by section 4).

Section 6 Consequential amendments

(1) The Secretary of State may by order make such provision as the Secretary of State may consider necessary or expedient for the purposes of, or in consequence of, or for giving full effect to, any amendment made by sections 2 to 5.

(2) The power conferred by subsection (1) includes—

(a) power to make different provision for different cases or for different areas, and

(b) power to make incidental, consequential, supplemental, or transitional provision, and savings.

(3) The powers conferred by subsections (1) and (2) include 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 any such saving, as is mentioned in either of those subsections.

(4) The only provision that may be made by an order under this section in relation to Scotland is provision relating to reserved matters within the meaning of the Scotland Act 1998 (c. 46).

(5) The power to make an order under this section is exercisable by statutory instrument.

(6) A statutory instrument containing an order under this section may not be made unless a draft of the order has been laid before, and approved by a resolution of, each House of Parliament.

Section 7 Local transport policies

(1) The TA 2000 is amended as follows.

(2) In section 108 (local transport plans) after subsection (4) insert—

(5) In this Part “ local transport policies ” means policies developed under subsection (1)(a).

(3) In section 162(1) (interpretation of Part 2) insert the following definition at the appropriate place—

“ local transport policies ” has the meaning given in section 108(5),

(4) In section 198(1) (interpretation of Part 3) insert the following definition at the appropriate place—

“ local transport policies ” has the meaning given in section 108(5),

(5) Schedule 1 to this Act (which substitutes references to local transport policies for certain references to local transport plans or bus strategies and makes other related amendments) has effect.

Section 8 Nature of duty to develop transport policies

(1) Section 108 of the TA 2000 (local transport plans) is amended as follows.

(2) In subsection (1)(a), omit “facilities and services”.

(3) In subsection (2)—

(a) for the words from the beginning to “are” substitute “ In subsection (1), “ transport ” means ” ,

(b) for “those”, in both places, substitute “ the transport ” ,

(c) for “include” substitute “ includes ” .

(4) After subsection (2) insert—

(2ZA) Each local transport authority whose area is in England must—

(a) in developing policies in accordance with subsection (1)(a), and

(b) in carrying out their functions in accordance with subsection (1)(b),

comply with the duties set out in subsection (2ZB).

(2ZB) The duties are—

(a) to take into account any policies announced by Her Majesty's government, and

(b) to have regard to any guidance issued for the purposes of this paragraph by the Secretary of State,

with respect to mitigation of, or adaptation to, climate change or otherwise with respect to the protection or improvement of the environment.

(2ZC) The power to issue guidance under subsection (2ZB)(b) does not affect the generality of the power to issue guidance under section 112(1).

Section 9 Local transport plans

(1) For subsection (3) of section 108 of the TA 2000 (duty to prepare local transport plan) substitute—

(3) Each local transport authority whose area is in England must prepare a document to be known as (or two or more documents to be known together as) the local transport plan containing—

(a) their policies under subsection (1)(a);

(b) their proposals for the implementation of those policies.

(3A) Each local transport authority whose area is in Wales must prepare a document to be known as the local transport plan containing—

(a) their policies under subsection (1)(a), and

(b) their policies under subsection (2A).

(3B) A local transport authority whose area is in England must, in complying with the duty under subsection (1)(b), have regard to the proposals contained in their plan.

(2) Section 109 of that Act (further provision about plans: England) is amended as follows.

(3) For subsection (2) substitute—

(2) The authority may replace their plan as they think fit.

(4) After subsection (2) insert—

(2A) In preparing their local transport plan, and in keeping it under review, an authority other than an Integrated Transport Authority must consult—

(a) the Secretary of State in relation to functions which the Secretary of State has—

(i) as highway authority by virtue of section 1 of the Highways Act 1980, or

(ii) as traffic authority by virtue of section 121A of the Road Traffic Regulation Act 1984,

(b) if the local transport authority is a county council, the councils of the districts in the county (if any).

(2B) In preparing their local transport plan, and in keeping it under review, an Integrated Transport Authority must consult—

(a) each local traffic authority (within the meaning of the Road Traffic Regulation Act 1984) for any area within the integrated transport area of the Integrated Transport Authority,

(b) the Secretary of State in relation to functions which the Secretary of State has—

(i) as highway authority by virtue of section 1 of the Highways Act 1980, or

(ii) as traffic authority by virtue of section 121A of the Road Traffic Regulation Act 1984,

(c) each county council and each district council for any area within the integrated transport area of the Integrated Transport Authority.

(2C) In preparing their local transport plan, and in keeping it under review, the authority must consult such of the following persons as they consider appropriate—

(a) operators of any network or station, or of any railway services, in their area;

(b) operators or providers of other transport services in their area, or organisations appearing to the authority to be representative of the interests of such persons;

(c) organisations appearing to the authority to be representative of the interests of users of transport services and facilities in their area;

and must also consult any other persons whom they consider appropriate.

(2D) Any expression which is used in subsection (2C)(a) or (b) and in Part 1 of the Railways Act 1993 has the meaning given in that Part, taking “railway” to have its wider meaning (see section 81 of that Act).

(5) Omit subsections (5) and (6).

Section 10 Bus strategies no longer required

(1) The TA 2000 is amended as follows.

(2) Omit sections 110 and 111 (bus strategies).

(3) Section 112 (plans and strategies: supplementary) is amended as follows.

(4) In subsection (1)—

(a) for “sections 108 to 111” substitute “ sections 108 to 109B ” ;

(b) omit “(and bus strategies)” and (in each place) “(and strategies)”.

(5) In subsection (2) omit “and their bus strategy”.

(6) In each of sections 113A(1) and 113B(1) (plans and strategies: Wales) for “sections 108 to 111” substitute “ sections 108 to 109B ” .

(7) In section 162(1) (interpretation) for the definition of “bus services” substitute—

“ bus services ” means services using public service vehicles,

(8) In section 9A of the TA 1968 (general functions of Passenger Transport Areas and Executives), in subsection (7), omit the words from “and to the bus strategy” to the end.

(9) The TA 1985 is amended as follows.

(10) In section 63 (functions of local councils with respect to passenger transport)—

(a) in subsection (8), omit “and to the appropriate bus strategy”;

(b) omit subsection (8A).

(11) In section 89 (obligation to invite tenders for subsidised services) omit subsections (7)(b) and (8).

Section 11 Duty to have regard to transport needs of disabled persons

(1) Section 112 of the TA 2000 (plans and strategies: supplementary) is amended as follows.

(2) In subsection (2) (duty to have regard to needs of certain persons in developing transport policies)—

(a) after “developing” insert “ and implementing ” ;

(b) after “needs of” insert “ disabled persons (within the meaning of the Disability Discrimination Act 1995) and of ” .

Section 12 Development of policies by ITA no longer joint duty with district councils

(1) Section 113 of the TA 2000 (role of metropolitan district councils) is amended as follows.

(2) Omit subsection (1).

(3) For subsection (2) substitute—

(2) The duties imposed on an Integrated Transport Authority for an integrated transport area by—

(a) section 108(1)(b), (2ZA) and (3B), and

(b) section 109(4),

are also duties of each of the councils for the metropolitan districts comprised in the area, subject to the modifications set out in subsection (2A).

(2A) The modifications are—

(a) in section 108(1)(b), the reference to “ those policies ” is a reference to the policies developed by the Integrated Transport Authority for that area;

(b) in section 108(3B), the reference to “ their plan ” is a reference to the local transport plan of the Integrated Transport Authority for that area;

(c) in section 109(4), the reference to “ their local transport plan ” is a reference to the local transport plan of the Integrated Transport Authority for that area.

(4) Omit subsection (3).

(5) In section 162 of that Act (interpretation for the purposes of Part 2) omit subsection (6).

(6) In section 198(2) of that Act (interpretation of certain references to authority's local transport plan)—

(a) for “local transport plan” (in the first place) substitute “ local transport policies ” ;

(b) for “the local transport plan made jointly by” substitute “ the local transport policies of ” ;

(c) omit the words from “and the councils” to the end.

Section 13 Quality partnership schemes

(1) Section 114 of the TA 2000 (quality partnership schemes) is amended as follows.

(2) In subsection (1), for the words from “will to any extent” to the end (which make it a condition that a scheme implement the policies in the authority's bus strategy) substitute “ will contribute to the implementation of their local transport policies ” .

(3) For subsection (3)(a) (authority must be satisfied that scheme will improve quality of local services) substitute—

(a) bring benefits to persons using local services in the whole or any part of their area, or combined area, by improving the quality of those services, or

(4) After subsection (3) insert—

(3A) If the authority or authorities consider that it is necessary or expedient for any restrictions to be imposed on the registration of—

(a) any local services, or

(b) any local services of a particular description,

they may impose those restrictions (“registration restrictions”) by specifying or describing them in the scheme.

(3B) Any restrictions so imposed must be for the purpose of preventing or restricting—

(a) the provision of local services, or

(b) the variation or withdrawal of local services,

in cases where the authority or authorities consider that any such provision, or (as the case may be) variation or withdrawal, of services might be detrimental to the provision of services under the scheme.

(3C) Where a scheme includes any registration restrictions by virtue of subsection (3A), it must also specify the criteria (“registration criteria”) by reference to which the traffic commissioners are to decide whether or not to accept an application for registration.

(3D) In subsections (3A) to (3C) “ registration ”, in relation to any service,—

(a) means registration of prescribed particulars of the service under section 6 of the Transport Act 1985 (registration of local services), and

(b) includes a reference to the variation or cancellation of any such registration.

(5) For subsection (6) substitute—

(6) The standard of services which may be specified in a scheme includes—

(a) requirements which the vehicles being used to provide the services must meet, and

(b) requirements as to frequency or timing of the services,

but the specification of any such requirements is not to prevent operators from providing services in excess of those requirements.

(6) After subsection (6) insert—

(6A) The standard of services which may be specified in a scheme may also include requirements as to the maximum fares that may be charged for particular journeys, or for journeys of particular descriptions, on services to which the scheme applies.

(6B) A scheme may include a requirement falling within subsection (6)(b) or (6A) only if there are no admissible objections to the requirement from relevant operators.

Section 122(3) to (5) makes further provision with respect to such schemes.

(7) After subsection (6B) insert—

(6C) The power to make a quality partnership scheme includes power to provide for different facilities, or different standards of services, to be provided under the scheme as from different dates after the scheme comes into operation.

Section 14 Notice and consultation requirements

(1) Section 115 of the TA 2000 (notice and consultation requirements) is amended as follows.

(2) In subsection (2) (contents of notice etc) after “details of the facilities and standards of services” insert “ , and of any registration restrictions and registration criteria, ” .

(3) In subsection (4) (meaning of “relevant local authorities” for purposes of consultation) for paragraph (b) substitute—

(b) district councils in England,

Section 15 Making a scheme: different dates for different facilities or standards etc

(1) Section 116 of the TA 2000 (making of scheme) is amended as follows.

(2) In subsection (2) (contents of scheme) after “The scheme must specify” insert “ each of the following ” .

(3) After paragraph (b) of that subsection (standards of service) insert—

(bb) any registration restrictions imposed by it and any registration criteria specified in it,

(4) After paragraph (d) of that subsection (duration of scheme) insert—

(e) if any facilities or standards of services are to be provided under the scheme as from a date after the scheme comes into operation, the date as from which they are to be so provided.

(5) For subsections (4) and (5) (earliest date on which scheme may come into operation) substitute—

(4) The date as from which any particular facilities, or any services of a particular standard, are to be provided must not be earlier than—

(a) in the case of facilities, the latest of dates A to C (see subsections (4B) to (4D)),

(b) in the case of services, the later of dates A and D (see subsections (4B) and (4E)),

unless the case falls within subsection (4A).

(4A) If under the scheme—

(a) particular facilities are to be provided by the authority or authorities, and

(b) as from the date by which the facilities are to be provided, services of a particular standard are to be provided by operators of local services when using the facilities,

the date as from which the facilities and the services are to be provided must not be earlier than the latest of dates A to D.

(4B) Date A is the date 3 months after the date on which the scheme is made.

(4C) Date B is the date by which, in the opinion of the authority or authorities, it will be reasonably practicable for the authority or authorities to provide the facilities.

(4D) Date C is the date 3 months after—

(a) the date on which any traffic regulation order required for the provision of any of the facilities is made, or

(b) if more than one such order is required for their provision, the date on which the last of them is made.

(4E) Date D is the date by which, in the opinion of the authority or authorities, it will be reasonably practicable for operators of local services to provide services of the particular standard.

(6) In section 162(4) of that Act (interpretation of references to authorities) for the entry relating to section 116 substitute— “ section 116(2)(a), (4)(a), (4A)(a) and, in the second place, (4C), ” .

Section 16 Postponement of provision of particular facilities or standards of service

(1) In section 117 of the TA 2000 (postponement, for up to 12 months, of date on which scheme comes into operation) for subsection (1) substitute—

(1) If it appears to the authority or authorities appropriate to do so, they may decide that any of the dates specified in subsection (1A) shall be postponed by such period as they think fit.

A date may not be postponed under this subsection by a period or periods which in total exceed 12 months.

(1A) The dates are—

(a) the date on which the scheme is to come into operation,

(b) the date as from which any particular facilities are to be provided under the scheme,

(c) the date as from which any particular services are to be provided to a particular standard under the scheme.

(2) In consequence of the amendment made by subsection (1), the heading to the section becomes “ Postponement of scheme or of provision of particular facilities or standards of service ” .

Section 17 Effect of scheme: different dates for different facilities or standards etc

(1) Section 118 of the TA 2000 (effect of scheme) is amended as follows.

(2) For subsection (1) (facilities to be provided from date on which scheme comes into operation) substitute—

(1) The authority or authorities must—

(a) provide each of the specified facilities not later than the date specified for its provision under the scheme, and

(b) continue to provide it throughout the remainder of the period for which the scheme is in operation.

(3) In subsection (4)(a) (operator of local services to give written undertaking to traffic commissioner) for the words from “that he will” to “when using the facilities” substitute “ that, when using the facilities on any date, he will provide the service to the standard specified in the scheme as it has effect in relation to that date ” .

Section 18 Regulations about schemes which specify frequencies, timings or fares

(1) Section 122 of the TA 2000 (regulations about schemes) is amended as follows.

(2) In subsection (1) after paragraph (a) insert—

(aa) the content or operation of schemes which include a requirement falling within section 114(6)(b) or (6A),

(3) After subsection (2) insert—

(3) As regards schemes which include any requirement mentioned in section 114(6)(b) or (6A), regulations under subsection (1)(a) or (aa) may in particular make provision—

(a) for section 114(6B) not to apply in such circumstances as may be prescribed,

(b) requiring such schemes to include provision falling within subsection (4),

(c) for any requirement as to frequencies, timings or maximum fares to be revised only if there are no admissible objections to the revision from relevant operators,

(d) in prescribed circumstances where such schemes, or any provisions of such schemes, are subject to postponement under section 117, for any such requirement not to take effect unless prescribed conditions are satisfied,

(e) as to the meaning of “ admissible objection ” for the purposes of section 114(6B) and paragraph (c) of this subsection,

(f) as to the meaning of “relevant operator” for those purposes,

(g) as to the determination of any question whether an objection is an admissible objection or an operator is a relevant operator.

(4) The provision referred to in subsection (3)(b) is provision—

(a) as respects the setting of frequencies, timings or maximum fares to which the requirements relate,

(b) for a minimum interval before any requirements as to frequencies, timings or maximum fares may next be reviewed,

(c) for a maximum interval before any such requirements must next be reviewed,

(d) as respects other circumstances in which any such requirements must or may be reviewed,

(e) as respects revision of any such requirements after a review.

(5) Subsections (3)(b) and (4) have effect subject to, and in accordance with, the following provisions—

(a) the revision of requirements as to frequencies, timings or maximum fares under any provision made in accordance with those subsections is not to be regarded as a variation of the scheme for the purposes of section 120 (variation or revocation of scheme), but

(b) nothing in those subsections or in paragraph (a) of this subsection shall be taken to derogate from what may be done under or by virtue of that section.

(6) The provision that may be made by virtue of subsection (3)(g) includes provision for and in connection with—

(a) the appointment of a person (“an adjudicator”) to make such a determination as is mentioned in that paragraph;

(b) the appointment of a person (“an assessor”) to assist an adjudicator in considering any question which appears to arise in relation to such a determination;

(c) the payment—

(i) by the appropriate national authority to an adjudicator, or

(ii) by the appropriate national authority or an adjudicator to an assessor,

of such remuneration as may be determined by or in accordance with the regulations.

Section 19 Quality contracts schemes

(1) Section 124 of the TA 2000 (bus services: quality contracts schemes) is amended as follows.

(2) In subsection (1) (power of local transport authorities etc to make quality contracts schemes if satisfied it is the only way to implement policies in their bus strategies and it is economic etc) for paragraphs (a) and (b) substitute—

(a) the proposed scheme will result in an increase in the use of bus services (see subsection (9B)) in the area to which the proposed scheme relates,

(b) the proposed scheme will bring benefits to persons using local services in the area to which the proposed scheme relates, by improving the quality of those services,

(c) the proposed scheme will contribute to the implementation of the local transport policies of the authority or authorities,

(d) the proposed scheme will contribute to the implementation of those policies in a way which is economic, efficient and effective, and

(e) any adverse effects of the proposed scheme on operators will be proportionate to the improvement in the well-being of persons living or working in the area to which the proposed scheme relates and, in particular, to the achievement of the objectives mentioned in paragraphs (a) to (d).

(3) For subsection (2) (need to comply with notice and consultation requirements and obtain approval of appropriate national authority) substitute—

(2) A quality contracts scheme may not be made unless the authority or authorities—

(a) have complied with the requirements of section 125,

(b) in the case of a scheme for an area in Wales, have obtained the approval of the Welsh Ministers in accordance with section 126, and

(c) in the case of a scheme for an area in England, meet the requirements of subsection (2A).

(2A) The requirements are that the authority or authorities—

(a) have published under section 126C(5) the request which they sent to the QCS board under section 126C(4), and

(b) publish, in accordance with section 127(1A), a response prepared by them to the report published by the QCS board under section 126D(5) in relation to the scheme.

(4) In subsection (3)(b) (under quality contracts scheme local services to be provided only under quality contracts) after “section 127(4)” insert “ and section 132C ” .

(5) After subsection (9) insert—

(9A) The power to make a scheme jointly may be exercised only if—

(a) all the authorities are local transport authorities for areas in England, or

(b) all the authorities are local transport authorities for areas in Wales.

(6) After subsection (9A) insert—

(9B) The reference in subsection (1)(a) to increasing the use of bus services includes a reference to reducing, arresting or reversing decline in the use of bus services.

Section 20 Notice and consultation requirements

(1) Section 125 of the TA 2000 (notice and consultation requirements) is amended as follows.

(2) In subsection (1) for the words from “they must give notice” to the end (which require the authority to give notice of the proposed scheme in a local newspaper) substitute

they must—

(a) publish, in such manner as they think fit, a consultation document complying with subsection (1A),

(b) supply a copy of that document to each of the persons mentioned in subsection (3),

(c) give notice in accordance with subsection (2) of the proposed scheme in at least one newspaper circulating in the area to which it relates, and

(d) if the proposed scheme relates to an area in England, send a copy of that notice to the senior traffic commissioner as soon as reasonably practicable after its publication.

(3) After subsection (1) insert—

(1A) The consultation document mentioned in subsection (1)(a) must include—

(a) a description of the proposed scheme;

(b) a statement of the reasons why the authority or authorities are satisfied that the conditions in subsection (1) or, as the case may be, (1A) of section 124 are met;

(c) a description of any arrangements which the authority or authorities intend to make (including arrangements with other authorities or other persons) for or in connection with the implementation of the scheme;

(d) a statement of how any costs which the authority or authorities expect to incur under the scheme are to be defrayed;

(e) a declaration by the chief finance officer or officers of the authority or authorities that, after taking into account—

(i) any estimated income from fares, and

(ii) any grants from Ministers of the Crown or government departments,

any remaining funding required to implement the scheme can be provided from other resources available to the authority or authorities;

(f) the date by which any written responses to the consultation must be submitted to the authority or authorities.

(1B) The description of the proposed scheme contained in the consultation document in accordance with subsection (1A)(a) must include—

(a) an outline of the local services which are proposed to be provided under it;

(b) a statement of any proposed exclusions from the scheme by virtue of section 127(4).

(1C) In subsection (1A)(e) “ chief finance officer ”, in relation to a local transport authority, means that officer of the authority who is responsible under—

(a) section 151 of the Local Government Act 1972, or

(b) section 73 of the Local Government Act 1985,

for making arrangements for the proper administration of the financial affairs of the authority.

(4) In subsection (2) (contents of notice)—

(a) at the end of paragraph (a) insert “ and ” ;

(b) in paragraph (b) after “a copy of the scheme” insert “ and the consultation document ” ;

(c) omit paragraph (c) and the word “and” preceding it.

(5) In subsection (3) (consultees) at the beginning of paragraph (e) (traffic commissioners for the area of the scheme) insert “ if the proposed scheme relates to an area in Wales, ” .

Section 21 Approval of proposed schemes: required for areas in Wales only

(1) Section 126 of the TA 2000 (approval of proposed scheme) is amended as follows.

(2) Before subsection (1) insert—

(A1) This section has effect in any case where the scheme or proposed scheme relates to an area in Wales.

(3) In subsection (1) (which refers to compliance with section 125) after “complied with” insert “ the requirements of ” .

(4) In subsection (3) (right of person consulted under section 125(3) to make representations) for “consulted” substitute “ who was consulted, or who is aggrieved at not being consulted, ” .

(5) In subsection (4)(a)—

(a) for “paragraphs (a) and (b)” substitute “ paragraphs (a) to (e) ” , and

(b) omit “or (as the case may be) paragraphs (a) to (d) of section 124(1A)”.

(6) The heading to the section accordingly becomes “ Approval of proposed schemes for areas in Wales ” .

Section 22 Boards for proposed schemes for areas in England

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Section 23 Advice by boards or their Commissioners

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Section 24 Consideration of proposed schemes by boards

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Section 25 Practice and procedure of boards

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Section 26 Making of scheme

(1) Section 127 of the TA 2000 (making of scheme) is amended as follows.

(2) For subsection (1) (making of scheme to be not later than 6 months after approval by appropriate national authority) substitute—

(1) The authority or authorities who proposed the scheme may make it—

(a) in the case of a scheme for an area in England, in accordance with the requirements of subsection (1A);

(b) in the case of a scheme for an area in Wales, in accordance with the requirements of subsection (1B).

(1A) If the scheme is for an area in England, the authority or authorities who proposed it—

(a) must not make the scheme until they publish a response prepared by them to the report published by the QCS board under section 126D(5) in relation to the scheme, but

(b) subject to that, may make the scheme at any time not later than 6 months after the publication of that report.

Any such response must state the actions (if any) which the authority or authorities have taken in relation to each of the board's recommendations (if any) under section 126D(2) or (3).

(1B) If—

(a) the scheme is for an area in Wales, and

(b) the Welsh Ministers approve the scheme under section 126,

the authority or authorities who proposed it may make it, as approved, at any time not later than 6 months after the date of the approval.

(3) In subsection (2) (what the scheme must specify) for paragraph (b) (date on which scheme comes into operation etc) substitute—

(b) the date on which it is to come into operation or, if the scheme provides for different provisions to come into operation on different dates, or on different dates for different purposes, those dates in the case of each provision, and

(4) In subsection (2), in paragraph (c) (maximum period for which scheme to remain in operation) after “ten years” insert “ from the earliest date on which the scheme or any of its provisions comes into operation. ” .

(5) After subsection (2) insert—

(2A) No date that is to be specified under subsection (2)(b) may be earlier than 6 months after the scheme is made.

(6) After subsection (3) insert—

(3A) The scheme must specify the date or dates on which it is proposed that the authority or authorities will issue invitations to tender for the provision of any services to which the scheme relates (see section 130).

(7) In subsection (9) (contents of notice under subsection (8)) for paragraph (c) (date on which scheme comes into operation) substitute—

(c) the date or dates on which the scheme, or the different provisions of the scheme, are to come into operation.

(8) For subsection (10) (power by order to vary the period mentioned in subsection (2)(b)) substitute—

(10) The appropriate national authority may by order vary any of the periods mentioned in subsection (1A), (1B) or (2A).

(9) In section 162(4) of the TA 2000 (provisions where references to Passenger Transport Authorities or Integrated Transport Authorities are to be read as references to Passenger Transport Executives) insert at the appropriate place in the list of provisions— “ section 127(3A), ” .

Section 27 Appeals against the making of schemes for areas in England

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Section 28 Postponement of scheme in part

In section 128 of the TA 2000 (postponement of scheme) in subsection (1)—

(a) after “the scheme”, in the second place where those words occur, insert “ , or any particular provision of the scheme, ” ;

(b) after “would otherwise come into operation” insert “ , or come into operation for any particular purpose or purposes, ” .

Section 29 Effect of scheme: different operational dates and excepted services

(1) Section 129 of the TA 2000 (effect of scheme) is amended as follows.

(2) In subsection (1) (consequences for period during which scheme is in operation)—

(a) after “the scheme” insert “ , or (in the case of a scheme which provides for different provisions to come into operation on different dates) any provision of the scheme, ” ;

(b) in paragraph (a), for “the area to which it relates” substitute “ the area to which the scheme, or that provision, relates ” ;

(c) in paragraph (b), after “under a quality contract” insert “ or is an interim service (see section 132C) ” .

(3) In subsection (2) (exception for services excluded from the scheme by virtue of section 127(4)) after “But subsection (1) does not apply” insert

—

(a) so as to prevent the application of sections 6 to 9 of the Transport Act 1985 in relation to any service by virtue or in consequence of section 6B of that Act (application for registration or variation where quality contracts scheme in force),

(b) so as to prevent the provision of any service registered under section 6 of the Transport Act 1985 by virtue of section 6B of that Act, or

(c)

(4) Subsection (4) (tenders to be invited not later than 3 months after the scheme has been made) shall cease to have effect.

Section 30 Extension of maximum period of quality contracts

(1) Section 130 of the TA 2000 (tendering for quality contracts) is amended as follows.

(2) In subsection (1) (authority to tender for provision of services) after “services to which the scheme” insert “ , or each provision of the scheme, ” .

(3) In subsection (2) (period of contract not to exceed five years) for “five” substitute “ 10 ” .

Section 31 Continuation of schemes for further periods

After section 131 of the TA 2000 insert—

Continuation of schemes for further periods

(131A)

(1) If it appears to them appropriate to do so, the authority or authorities who made a quality contracts scheme (other than any to whose area the scheme no longer relates) may decide that the scheme should continue in operation for a further period, with or without modification.

(2) Before making such a decision, they must, unless the proposal that the scheme should continue is an exempt continuation proposal (see section 131B), comply with the requirements of—

(a) section 124(2)(b) (approval by Welsh Ministers), if the scheme is for an area in Wales, or

(b) section 124(2)(c) (publication of request to, and response to report of, QCS board), if the scheme is for an area in England.

(3) Section 125 applies in relation to the continuation of a scheme under this section as it applies in relation to the making of a scheme, but with the following modifications—

(a) any reference to a proposal to make a scheme is to be read as a reference to a proposal for the continuation of a scheme,

(b) any reference to the proposed scheme is to be read as a reference to the scheme as proposed to continue in operation,

and with the further modifications specified in subsections (4) and (5), but this is subject to such modifications or exclusions as may be prescribed by regulations under section 133.

(4) If the proposal is an exempt continuation proposal—

(a) section 125(1)(d) (duty to send copy of notice to senior traffic commissioner if scheme relates to area in England) does not apply, but

(b) section 125(3)(e) (duty to consult traffic commissioners for areas to which scheme relates) applies with the omission of the words “if the proposed scheme relates to an area in Wales,”.

(5) The consultation document that is to be published by virtue of section 125(1)(a), as applied by subsection (3), must (instead of complying with section 125(1A)) include—

(a) a description of the scheme, together with any proposed modifications to it;

(b) a statement of the opinion of the authority or authorities as to the effectiveness of the scheme in achieving the objectives set out in paragraphs (a) to (e) of section 124(1) or, as the case may be, paragraphs (b) and (d) of section 124(1A) up to the date of the report;

(c) a statement of the reasons why they are satisfied that the scheme as proposed to be continued (with any proposed modifications) will meet the conditions in subsection (1) or, as the case may be, (1A) of section 124;

(d) a description of any arrangements which the authority or authorities intend to make (including arrangements with other authorities or other persons) for or in connection with the continuation of the scheme;

(e) a statement of the period for which it is proposed that the scheme should continue in operation, which must not be more than a further 10 years;

(f) if the authority or authorities consider that the proposal for the scheme to continue is an exempt continuation proposal, a statement of that fact;

(g) a statement of how any costs which the authority or authorities expect to incur under the scheme are to be defrayed;

(h) a declaration by the chief finance officer or officers of the authority or authorities that, after taking into account—

(i) any estimated income from fares, and

(ii) any grants from Ministers of the Crown or government departments,

any remaining funding required to continue the scheme in operation can be provided from other resources available to the authority or authorities;

(i) the date by which any written responses to the consultation must be submitted to the authority or authorities.

(6) For the purposes of this section—

(a) subsection (1B) of section 125 (matters to be included in the description of the proposed scheme) applies for the purposes of subsection (5)(a) as it applies for the purposes of subsection (1A)(a) of that section, and

(b) subsection (1C) of that section (meaning of “chief finance officer”) applies for the purposes of subsection (5)(h) as it applies for the purposes of subsection (1A)(e) of that section.

(7) The consultation document mentioned in subsection (5) must be published and supplied in accordance with section 125(1)(a) and (b) (as applied by this section) not less than 12 months before the scheme's expiry date.

(8) For the purposes of this section, a scheme's “expiry date” is the later of the following dates—

(a) the end of the period specified in the scheme in accordance with section 127(2)(c),

(b) if the scheme has been continuing in operation by virtue of the previous application of this section, the end of the period for which it is so continuing in operation.

(9) The period for which a scheme continues in operation by virtue of a decision under subsection (1) may begin—

(a) on such day falling before, on, or immediately after the scheme's expiry date as the authority or authorities decide, or

(b) if the circumstances are such that the continuation of the scheme cannot begin on a day falling within paragraph (a), on such later day as the authority or authorities decide in accordance with regulations made by the appropriate national authority for the purposes of such circumstances.

(10) If the authority or authorities publish and supply a consultation document in accordance with subsection (7), the scheme remains in operation (without any modifications proposed by them under subsection (1)) until—

(a) in a case where the scheme is to continue in operation for a further period, the day before the beginning of that period, or

(b) in any other case, the scheme's expiry date.

(11) Section 130 (tendering) applies to a scheme that continues in operation under this section (whether or not the proposal for the scheme to continue in operation was an exempt continuation proposal) but subject to regulations made by the appropriate national authority under section 133(3).

Section 32 Exempt continuation proposals

(1) After section 131A of the TA 2000 insert—

Meaning of “exempt continuation proposal”

(131B)

(1) For the purposes of this Part a proposal that a quality contracts scheme should continue in operation is an “exempt continuation proposal” if—

(a) any one or more of Conditions 1 to 3 are met and Conditions A and B are met, or

(b) the circumstances are as prescribed in regulations made by the appropriate national authority.

(2) Condition 1 is that it is not proposed that the area to which the continuation scheme relates is to be greater than the area to which the existing scheme relates.

(3) Condition 2 is that it is proposed that the area to which the continuation scheme relates is to be greater than the area to which the existing scheme relates, but—

(a) the additional area proposed to be included falls wholly within the area or combined area of the authority or authorities proposing the continuation of the scheme, and

(b) it is not proposed that under the continuation scheme any descriptions of local services are to be provided under quality contracts in addition to the descriptions of local services so provided under the existing scheme.

(4) Condition 3 is that during the period while the existing scheme has been in force—

(a) there has been a change in the area of the authority, or of any of the authorities, that last made or continued the scheme, or

(b) a different authority has become the local transport authority for some or all of the area to which the scheme relates,

but it is not proposed that under the continuation scheme any descriptions of local services are to be provided under quality contracts in addition to the descriptions of local services so provided under the existing scheme.

(5) Condition A is that it is not proposed under the continuation scheme that any local services which, immediately before the coming into force of that scheme, were unregulated services are under the continuation scheme to be provided under quality contracts.

(6) Condition B is that it is not proposed under the continuation scheme that any services which, immediately before the coming into force of that scheme, were excluded services in the case of the existing scheme are not to be excluded services in the case of the continuation scheme.

(7) In this section—

“ the continuation scheme ” means the scheme as proposed to continue in operation;

“ excluded services ”, in the case of any quality contracts scheme, means any local services, or class of local services, which are excluded from the scheme by virtue of section 127(4);

“ the existing scheme ” means—

the scheme as last continued or varied, or

if the scheme has not previously been continued or varied, the scheme as originally made;

“ unregulated services ” means any local services provided otherwise than—

under a contract with one or more local transport authorities, or

by an authority or authorities acting under section 132C(2) (power to provide interim services in exceptional circumstances);

and any reference to the coming into force of a scheme includes a reference to the coming into force of any particular provision of it.

(8) See also section 131E (which makes provision about appeals relating to exempt continuation proposals).

(2) In section 162 of that Act (interpretation of Part 2) insert the following definition at the appropriate place in subsection (1)—

“ exempt continuation proposal ” is to be read in accordance with section 131B,

Section 33 Continuation of schemes for areas in England: procedure

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Section 34 Continuation of schemes for areas in Wales: procedure

After section 131C of the TA 2000 insert—

Continuation of schemes for areas in Wales: procedure

(131D)

(1) This section has effect with respect to the continuation in operation under section 131A (or the proposed continuation in operation under that section) of a quality contracts scheme for an area in Wales (whether with or without modifications).

(2) Subsections (2) and (3) to (9) of section 127 apply in relation to the continuation of the scheme as they apply in relation to the making of a scheme, but with the modifications in subsection (4).

(3) Unless the proposal for the continuation of the scheme—

(a) is an exempt continuation proposal, or

(b) in a case where the authority or authorities have decided that the scheme should continue, was such a proposal,

subsections (1)(b) and (1B) of section 127 also apply in relation to the continuation of the scheme, and with the modifications in subsection (4).

(4) The modifications are—

(a) any reference to proposing to make a scheme is to be read as a reference to proposing the continuation of a scheme,

(b) any reference to making a scheme is to be read as a reference to deciding that a scheme should continue in operation,

(c) any reference to the proposed scheme is to be read as a reference to the scheme as proposed to continue in operation,

(d) the references in section 127(2)(b) and (9)(c) to the date or dates on which the scheme is, or provisions of the scheme are, to come into operation are to be read as references to the day decided by the authority or authorities by virtue of section 131A(9),

but further or different modifications, or exclusions, may also be made by regulations under section 133(3)(b).

(5) Subsection (6) applies in any case where—

(a) an authority or authorities propose that a quality contracts scheme for an area in Wales should continue in operation (with or without modification) under section 131A, and

(b) the proposal is not an exempt continuation proposal.

(6) In any such case, section 126 (approval by Welsh Ministers of proposed schemes for areas in Wales) applies in relation to a proposal for the continuation of a scheme as it applies in relation to a proposal to make a scheme, but with the modifications set out in subsection (7).

(7) The modifications are—

(a) any reference to a proposed scheme is to be read as a reference to a proposal for a scheme to continue in operation under section 131A;

(b) the reference in section 126(2)(a) to wishing to make a scheme is to be read as a reference to wishing that a scheme should continue in operation;

(c) any reference to any conditions set out in any paragraphs of section 124(1) being met is to be read as a reference to those conditions being met by the scheme as proposed to continue in operation (with any proposed modifications);

(d) any reference to section 125 or any provision of that section is to be read as a reference to that section or provision as it has effect by virtue of section 131A.

(8) If, acting on the basis that the proposal for the continuation of the scheme is an exempt continuation proposal, the authority or authorities decide that the scheme is to continue, they must—

(a) publish in such manner as they think fit, and within the time allowed, a notice announcing their decision on the proposal,

(b) supply a copy of that notice to each of the persons mentioned in section 125(3) as it applies by virtue of section 131A, and

(c) give notice of the decision in accordance with section 127(8) and (9).

(9) For the purposes of subsection (8)(a), the time allowed is the period of 6 months following the date of publication of the consultation document required by section 125(1)(a) as it applies by virtue of section 131A.

Section 35 Appeals where proposed continuation considered exempt

After section 131D of the TA 2000 insert—

Appeals where proposed continuation considered exempt

(131E)

(1) This section applies where an authority or authorities who propose that a quality contracts scheme should continue in operation (with or without modifications) under section 131A—

(a) decide that the proposal is an exempt continuation proposal, and

(b) acting on the basis of that decision, decide that the scheme should so continue in operation.

(2) Any person falling within subsection (3) may appeal to the Transport Tribunal against—

(a) the decision of the authority or authorities that the proposal is an exempt continuation proposal, or

(b) the decision of the authority or authorities that the scheme is to continue in operation (with or without any modifications).

(3) The persons are—

(a) any person who was consulted under section 125(3) (as it applies by virtue of section 131A in a case where the proposal is an exempt proposal),

(b) any person who was not so consulted, but who, in the opinion of the Transport Tribunal, ought to have been so consulted.

(4) An appeal under this section may be—

(a) on a point of law, or

(b) on a question of fact.

(5) On an appeal under this section the Transport Tribunal shall have power—

(a) to make such order as they think fit, or

(b) to remit any matter (with or without directions) to the authority or authorities for their consideration or determination or for such other purposes as the Tribunal may direct.

(6) The powers of the Tribunal on an appeal under this section include power to do any one or more of the following—

(a) dismiss the appeal in whole or in part,

(b) remit the matter to the authority or authorities with one or more directions under subsection (7),

(c) direct the authority or authorities to vary the scheme, as it continues or is to continue in operation, in such manner as the Tribunal may specify in the direction (but see subsection (8)),

(d) quash the whole or any part of the decision of the authority or authorities (but see subsection (9)).

(7) A direction under this subsection is a direction for the authority or authorities to do each of the following—

(a) consider or reconsider such matters as may be specified in the direction,

(b) as respects those matters, consult or further consult the persons mentioned in section 125(3) as it applies by virtue of section 131A in a case where the proposal is an exempt continuation proposal,

(c) make such variations of the scheme, as it continues or is to continue in operation, as may in consequence appear appropriate to the authority or authorities.

(8) The Tribunal may give a direction under this section to vary a scheme by reducing the area to which it relates only if they are of the opinion that the conditions in section 132(3) are met.

(9) The power of the Tribunal under this section to quash a decision of an authority or authorities that a scheme should continue in operation under section 131A is exercisable only if the Tribunal are of the opinion that there are defects in the scheme which are not capable of being remedied by varying the scheme under or by virtue of subsection (6)(b) or (c).

(10) If, on an appeal under paragraph (a) or (b) of subsection (2), the Tribunal decide that the proposal for the scheme to continue in operation was not an exempt continuation proposal—

(a) they must allow the appeal to that extent,

(b) they must remit the matter to the authority or authorities, with or without directions, and

(c) subsections (11) to (14) have effect.

(11) The directions that the Tribunal may give under this section include—

(a) directions to take any action specified in the directions for the purpose of remedying any failure to comply with requirements of this Part that have effect where a proposal for continuation under section 131A is not an exempt continuation proposal,

(b) directions to make variations specified in the directions for the purpose of securing that the condition in paragraph (a) or (b) of subsection (1) of section 131B (meaning of “exempt continuation proposal”) is met in the case of the scheme,

(c) directions authorising the scheme to continue in operation temporarily, with or without variations, for a period specified or described in the directions, but subject to compliance with conditions as to the time within which any particular action specified in directions under this section is to be taken.

(12) Where the Tribunal give directions falling within subsection (11), they may also make provision in the order dispensing with the need to comply with such procedural requirements imposed by or under this Part as they may specify in the order.

(13) If the scheme or proposed scheme relates to an area in Wales, the Tribunal may not make any order which has the effect of—

(a) giving approval under section 126 as it applies by virtue of section 131D, or

(b) dispensing with the need for any such approval,

but this is without prejudice to the temporary provision that may be made in directions falling within subsection (11)(c).

(14) The appropriate national authority may make regulations with respect to the procedure to be followed in relation to a scheme in cases where the Tribunal decide that the proposal for continuation under section 131A was not an exempt continuation proposal.

Section 36 Appeals where proposed continuation considered non-exempt

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

Section 37 Variation or revocation of scheme

(1) Section 132 of the TA 2000 (variation or revocation of scheme) is amended as follows.

(2) In subsection (2) (which refers to the conditions in certain provisions of section 124) for “subsection (1)(a) and (b)” substitute “ subsection (1)(a) to (e) ” .

(3) In subsection (4) (grounds for revocation) for “or” at the end of paragraph (a) substitute—

(aa) if they consider that those conditions would no longer be met with respect to it if they were to act in accordance with a direction given by the Transport Tribunal under this Part, or

(4) In subsection (4A) (which defines the “relevant conditions” according to whether the scheme has been varied or not)—

(a) in paragraph (a), before “varied” insert “ continued in operation under section 131A or ” ,

(b) also in paragraph (a), for “124(1)(a) and (b)” substitute “ 124(1)(a) to (e) ” ,

(c) in paragraph (b), before “varied” insert “ continued in operation under section 131A or ” ,

(d) in paragraph (c), before “varied”, in the first place where it occurs, insert “ continued in operation under section 131A or ” ,

(e) also in paragraph (c), before “varied”, in the second place where it occurs, insert “ continued in operation or ” .

(5) For subsection (5) (procedure for varying or revoking a scheme etc) substitute—

(5) The variation or revocation of a scheme under subsection (1) or (4) is subject to the provisions of—

(a) subsection (6) (revocation: areas in England),

(b) subsection (7) (non-exempt variation: areas in England),

(c) subsection (8) (exempt variation: areas in England), or

(d) subsection (9) (areas in Wales),

except to the extent that section 132B (exemption for specific variations directed by Transport Tribunal on appeal) otherwise provides.

(6) The revocation of a scheme for an area in England is subject to the following requirements—

(a) before deciding to revoke the scheme, the authority or authorities must consult the persons mentioned in section 125(3) and each relevant traffic commissioner,

(b) as soon as reasonably practicable after deciding to revoke the scheme, the authority or authorities must give notice of the decision to each relevant traffic commissioner and must publish the notice in at least one newspaper circulating in the area to which the scheme relates,

(c) the notice must state that the decision has been taken and specify the date on which the revocation is to take effect,

except to the extent that those requirements are modified or excluded by regulations made by the Secretary of State under section 133.

For the purposes of this subsection “ relevant traffic commissioner ” means the traffic commissioner for any traffic area which consists of or includes the whole or any part of the area to which the scheme relates.

(7) The non-exempt variation of a scheme for an area in England is subject to the same procedure as the making of the scheme, except to the extent that that procedure is modified or excluded by regulations made by the Secretary of State under section 133.

(8) The exempt variation of a scheme for an area in England is subject to the same procedure as the making of a scheme, except to the extent that that procedure is modified or excluded by regulations made by the Secretary of State under section 133, but for the purposes of this subsection—

(a) sections 124(2)(c) and (2A), 126A to 126E and 127(1)(a) and (1A) (the QCS board provisions) do not apply;

(b) there is no requirement to give notice to the senior traffic commissioner under section 125(1)(d);

(c) the authority or authorities must consult any traffic commissioner falling within section 125(3)(e) (which accordingly has effect for this purpose with the omission of the words “if the proposed scheme relates to an area in Wales,”);

(d) sections 127A and 127B (appeals to the Transport Tribunal) do not apply;

(e) section 132A (appeals where proposed variation considered exempt) has effect in those cases for which it makes provision.

(9) The variation or revocation of a scheme for an area in Wales—

(a) requires the approval of the Welsh Ministers, except in the case of a variation which is an exempt variation, and

(b) is subject to the same procedure as the making of the scheme, except to the extent that that procedure is modified or excluded by regulations made by the Welsh Ministers under section 133.

(10) Section 130 (tendering) applies to a varied scheme (whether or not the variation is an exempt variation) but subject to regulations made by the appropriate national authority under section 133(3).

(11) A variation of a scheme is an exempt variation for the purposes of this section if the variation is—

(a) a reduction in the area to which the scheme relates,

(b) a reduction in the descriptions of services which are to be provided under quality contracts, or

(c) the provision of new exclusions from the scheme,

and a “non-exempt variation” is any other variation of a scheme.

(6) In consequence of the amendments made by subsection (5), renumber subsection (6) (regulations about revoking schemes before they come into operation) as subsection (12).

Section 38 Appeals where proposed variation considered exempt

After section 132 of the TA 2000 insert—

Appeals where proposed variation considered exempt

(132A)

(1) This section applies where an authority or authorities who propose to vary a quality contracts scheme under section 132—

(a) decide that the proposal is an exempt variation for the purposes of that section, and

(b) acting on the basis of that decision, decide to vary the scheme under that section.

(2) Any person falling within subsection (3) may appeal to the Transport Tribunal against—

(a) the decision of the authority or authorities that the variation is an exempt variation for the purposes of section 132, or

(b) the decision of the authority or authorities as to the variation of the scheme under that section.

(3) The persons are—

(a) any person who was consulted under section 125(3) (as it applies by virtue of subsection (8) or, as the case may be, (9)(b) of section 132 in a case where the variation is an exempt variation for the purposes of section 132),

(b) any person who was not so consulted, but who, in the opinion of the Transport Tribunal, ought to have been so consulted.

(4) An appeal under this section may be—

(a) on a point of law, or

(b) on a question of fact.

(5) On an appeal under this section the Transport Tribunal shall have power—

(a) to make such order as they think fit, or

(b) to remit any matter (with or without directions) to the authority or authorities for their consideration or determination or for such other purposes as the Tribunal may direct.

(6) The powers of the Tribunal on an appeal under this section include power to do any one or more of the following—

(a) dismiss the appeal in whole or in part,

(b) remit the matter to the authority or authorities with one or more directions under subsection (7),

(c) direct the authority or authorities to vary the scheme, to the extent of the variation made by the authority or authorities, in such manner as the Tribunal may specify in the direction (but see subsection (8)),

(d) quash the whole or any part of the decision of the authority or authorities.

(7) A direction under this subsection is a direction for the authority or authorities to do each of the following—

(a) consider or reconsider such matters as may be specified in the direction,

(b) as respects those matters, consult or further consult the persons mentioned in section 125(3) (as it applies by virtue of subsection (8) or, as the case may be, (9)(b) of section 132 in a case where the variation is an exempt variation for the purposes of section 132),

(c) make such variations of the scheme as may in consequence appear appropriate to the authority or authorities.

(8) The Tribunal may give a direction under this section to vary a scheme by reducing the area to which the scheme relates only if they are of the opinion that the conditions in section 132(3) are met.

(9) If, on an appeal under paragraph (a) or (b) of subsection (2), the Tribunal decide that the variation was not an exempt variation for the purposes of section 132—

(a) they must allow the appeal to that extent,

(b) they must remit the matter to the authority or authorities, with or without directions, and

(c) subsections (10) to (13) have effect.

(10) The directions that the Tribunal may give under this section include—

(a) directions to take any action specified in the directions for the purpose of remedying any failure to comply with requirements of this Part that have effect where a proposed variation under section 132 is not an exempt variation,

(b) directions to make variations specified in the directions for the purpose of securing that the condition in paragraph (a), (b) or (c) of section 132(11) (meaning of “exempt variation”) is met in the case of the variation,

(c) directions authorising the scheme to continue in operation temporarily, with or without variations, for a period specified or described in the directions, but subject to compliance with conditions as to the time within which any particular action specified in directions under this section is to be taken.

(11) Where the Tribunal give directions falling within subsection (10), they may also make provision in the order dispensing with the need to comply with such procedural requirements imposed by or under this Part as they may specify in the order.

(12) If the scheme or proposed scheme relates to an area in Wales, the Tribunal may not make any order which has the effect of—

(a) giving approval under section 126 as it applies by virtue of section 132, or

(b) dispensing with the need for any such approval,

but this is without prejudice to the temporary provision that may be made in directions falling within subsection (10)(c).

(13) The appropriate national authority may make regulations with respect to the procedure to be followed in cases where the Tribunal decide that the variation or proposed variation was not an exempt variation for the purposes of section 132.

Section 39 Exemption from s.132 for specific variations directed by Transport Tribunal

After section 132A of the TA 2000 insert—

Exemption from s.132 for specific variations directed by Tribunal

(132B)

(1) This section applies in relation to any of the following appeals—

(a) an appeal under section 127A against a decision to make a scheme,

(b) an appeal under section 131E(2)(a) against a decision that a proposal was an exempt continuation proposal,

(c) an appeal under section 131E(2)(b) against a decision that a scheme should continue in operation,

(d) an appeal under section 131F(2) against a decision that a scheme should continue in operation,

(e) an appeal by virtue of section 132 against a decision to vary a scheme,

(f) an appeal under section 132A(2)(a) against a decision that a variation was an exempt variation for the purposes of section 132,

(g) an appeal under section 132A(2)(b) against a decision as to the variation of a scheme under section 132.

(2) Where—

(a) any such appeal is made to the Transport Tribunal, and

(b) on that appeal, the Tribunal direct the authority or authorities to vary the scheme in the manner specified by the Tribunal in the direction,

nothing in section 132(5) to (9) (procedure for variation of scheme) applies in relation to the varying of the scheme in the manner specified in the direction, unless the Tribunal otherwise direct.

(3) Subsection (2) is without prejudice to any right of appeal against the decision of the Transport Tribunal.

Section 40 Power of authorities to provide services in exceptional circumstances

(1) After section 132B of the TA 2000 insert—

Power of authorities to provide services in exceptional circumstances

(132C)

(1) This section applies where a person who has agreed to provide a service (“the old service”) in accordance with a quality contract ceases to do so before the end of the period for which the contract was intended to have effect.

(2) The authority, or any one of the authorities, who entered into the quality contract may, in accordance with subsections (4) to (8) and section 132D, provide a local service (an “interim service”) in place of the old service or any part of it.

(3) Subsection (2) has effect notwithstanding any prohibition, restriction or limitation contained in any other enactment on the power of the authority to provide local services.

(4) An authority who provide an interim service of any description must hold a PSV operator's licence to which no condition is attached under section 26 of the Transport Act 1985 (power of traffic commissioner to attach conditions to licence) prohibiting the authority from using vehicles under the licence to provide services of that description.

(5) Subsection (6) applies if—

(a) an authority provide an interim service in place of an old service or any part of an old service, and

(b) the authority or authorities who entered into the quality contract for the provision of the old service propose to enter into a quality contract for the provision of a replacement service in place of that service or (as the case may be) that part.

(6) The authority, or the authorities acting jointly, must invite tenders (in accordance with section 130) for the provision of the replacement service—

(a) as soon as reasonably practicable after the authority providing the interim service begin to do so, and

(b) in any event no later than three months after the date on which provision of the old service ceased.

(7) But subsection (6) does not apply if the authority, or the authorities acting jointly, decide to secure the provision of the replacement service under section 131 (circumstances in which quality contracts may be entered into without inviting tenders).

(8) The particulars of an interim service, or of a replacement service, need not be identical to the particulars of the old service, or that part of the old service, which it replaces.

(9) In this section—

“ enactment ” includes an enactment comprised in subordinate legislation (within the meaning of the Interpretation Act 1978);

“ interim service ” has the meaning given by subsection (2);

“ the old service ” has the meaning given by subsection (1);

“ replacement service ” means a local service provided under a quality contract in place of an old service or any part of an old service.

Period for which interim service may be provided

(132D)

(1) This section applies for the purpose of determining the period for which an authority may provide an interim service which is provided in place of—

(a) an old service (“ the relevant service ”), or

(b) part of an old service (“ the relevant part ”).

(2) If the authority do not, within the period of three months beginning with the date on which provision of the relevant service ceased,—

(a) enter into a quality contract to provide a replacement service in place of the relevant service or (as the case may be) the relevant part, or

(b) issue an invitation to tender in pursuance of section 132C(6),

the authority must not provide the interim service after the end of that period.

(3) If the authority enter into a quality contract to provide such a replacement service within the period mentioned in subsection (2), the authority must not provide the interim service after the earlier of the following dates—

(a) the date on which the replacement service is first provided;

(b) the date falling nine months after the date on which the interim service is first provided.

(4) If the authority issue invitations to tender in pursuance of section 132C(6) within the period mentioned in subsection (2) (but do not enter into a quality contract to provide such a replacement service within that period), the authority must not provide the interim service after the earlier of the following dates—

(a) the date on which a replacement service is first provided in place of the relevant service or (as the case may be) the relevant part;

(b) the date determined in accordance with subsection (5).

(5) The date is the later of—

(a) the date falling nine months after the date on which the interim service is first provided;

(b) such date, not later than three months after the date mentioned in paragraph (a), as may be determined by the traffic commissioner on the application of the authority.

(6) The traffic commissioner may determine a date under subsection (5)(b) only if satisfied that there is a realistic prospect that, if the determination is made, a replacement service will be provided in place of the relevant service or (as the case may be) the relevant part on or before that date.

(7) An application under paragraph (b) of subsection (5) must be made—

(a) to the traffic commissioner for the traffic area in which the interim service is provided (or, if the service is provided in more than one such area, to the traffic commissioner for any of those areas), and

(b) not later than one month before the date mentioned in paragraph (a) of that subsection.

(8) The authority must not make more than one application under subsection (5)(b) in respect of any interim service.

(9) In this section—

“interim service” and “replacement service” have the meaning given in section 132C;

“the relevant service” and “the relevant part” have the meaning given in subsection (1);

and, in any case where the authority entered into the quality contract for the provision of the relevant service jointly with one or more other authorities, references in this section to the authority entering into a quality contract for a replacement service, or issuing invitations to tender for such contracts, are references to those authorities acting jointly.

(2) In section 162(4) of the TA 2000 (provisions where references to Passenger Transport Authorities are to be read as references to Passenger Transport Executives) at the appropriate place insert—

section 132C,

section 132D,

(3) In section 66(1) of the TA 1985 (exclusion of powers of certain councils to run bus undertakings) after “subsection (2) below” insert “ and to section 132C of the Transport Act 2000 ” .

Section 41 Regulations about schemes

(1) Section 133 of the TA 2000 (regulations about schemes) is amended as follows.

(2) In subsection (1)(a) (regulations with respect to making, varying or revoking schemes) after “making” insert “ continuing, ” .

(3) In subsection (1)(b) (approvals of schemes) after “schemes” insert “ for areas in Wales ” .

(4) After subsection (1)(b) insert—

(bb) the procedure to be followed by local transport authorities for areas in England when discharging functions that relate to a QCS board,

(bc) the procedure to be followed by QCS boards when discharging functions relating to proposed schemes for areas in England,

(5) In subsection (2) (particular matters for which regulations may provide)—

(a) in paragraph (a) (proposed variations or revocation of schemes) before “variations” insert “ continuations, ” ;

(b) in paragraph (e) (applications for approval of proposals) after “proposals” insert “ for areas in Wales ” ;

(c) after paragraph (e) (form and manner of applications for approval) insert—

(ee) the procedure for determining such applications,

(ef) the form and manner of requests under section 126C(4) relating to proposed schemes for areas in England,

(eg) the form and manner in which copies of proposed schemes for such areas are to be sent to a QCS board under section 126C(5),

(eh) the giving of notice, and the preparation and publication of reports, by QCS boards under section 126D(5),

(ei) the form and manner of responses by local transport authorities to such reports,

(d) in paragraph (f) (form of schemes or variations) after “schemes” insert “ , continuations ” ;

(e) in paragraph (g) (notice of schemes or of their variation or revocation) before “variation” insert “ continuation, ” .

(6) After subsection (2) insert—

(3) The appropriate national authority may also make regulations modifying or excluding the application of provisions of this Part, so far as relating to quality contracts schemes, in cases where a local transport authority, or two or more local transport authorities acting jointly, do any of the following—

(a) by virtue of section 126C(6), send to a QCS board a further request under section 126C(4) and modified proposals under section 126C(5),

(b) propose or decide that a scheme should continue in operation (with or without modification) under section 131A,

(c) propose or decide to vary or revoke a scheme under section 132.

(4) Regulations made by virtue of subsection (3) must not exclude any requirement for the authority or authorities—

(a) under section 126, to obtain the approval of the Welsh Ministers,

(b) under section 127(1A), to publish their response to the report of the QCS board.

Section 42 Power to make transitional provision about schemes

(1) Section 134 of the TA 2000 (transitional provision about schemes) is amended as follows.

(2) In subsection (1)(a) (transitional provision about the coming into operation of quality contracts schemes) after “quality contracts schemes” insert “ or of provisions of such schemes ” .

(3) In subsection (1)(b) (transitional provision in connection with variation of schemes) before “variation” insert “ continuation in operation or ” .

(4) In subsection (2) (application or disapplication, with or without modifications, of sections 6 to 9 of the TA 1985) in paragraph (a), after “(registration of local services)” insert “ , or of sections 89 to 92 of that Act (obligation to invite tenders etc), ” .

(5) At the end of the section insert—

(3) Any regulations made by virtue of paragraph (a) of subsection (1) are not to have effect in the case of any quality contracts scheme as respects any time before the making of the scheme.

Section 43 Guidance about schemes

After section 134 of the TA 2000 insert—

Guidance about schemes

(134A)

(1) The appropriate national authority may issue guidance concerning the performance by local transport authorities of their functions under this Part in relation to quality contracts schemes.

(2) Those authorities must have regard to any such guidance.

Section 44 Quality contracts: application of TUPE

(1) After section 134A of the TA 2000 insert—

Quality contracts: application of TUPE

(134B)

(1) Subsection (3) applies to a situation in which—

(a) on the coming into force of a quality contract, local services cease to be provided by a person (the “former operator”) in the area to which the relevant quality contracts scheme, or (in the case of a scheme which provides for different provisions to come into operation on different dates) the relevant provision of the scheme, relates, in accordance with section 129(1)(b), and

(b) at the same time, a person (the “new operator”) begins to provide local services in that area under that quality contract.

(2) Subsection (3) also applies to a situation in which—

(a) local services which, on the coming into force of a quality contract, a person (the “former operator”) would be required by virtue of section 129(1)(b) to cease providing in the area mentioned in subsection (1)(a) of this section, cease to be provided by the former operator before the coming into force of that quality contract, and

(b) at the same time, a person (the “new operator”) begins to provide local services in that area under an agreement which the authority or authorities who made the relevant quality contracts scheme entered into by reason of the cessation of the local services referred to in paragraph (a).

(3) Any situation to which this subsection applies is to be treated as a relevant transfer for the purposes of the Transfer of Undertakings (Protection of Employment) Regulations 2006 (“TUPE”) (whether or not TUPE would apply apart from this subsection).

(4) For the purposes of TUPE, the organised grouping of employees that is subject to the relevant transfer consists of those employees of the former operator whose employment is principally connected with the provision of the local services referred to in subsection (1)(a) or (as the case may be) the local services referred to in subsection (2)(a).

(5) Any situation which by virtue of this section is treated as a relevant transfer for the purposes of TUPE is also to be treated as a relevant transfer within the meaning of TUPE for the purposes of sections 257 and 258 of the Pensions Act 2004 and any regulations made under section 258 of that Act.

(6) The Secretary of State may make regulations supplementing the provision made by this section.

(7) The provision that may be made by regulations under subsection (6) includes—

(a) provision for determining, for the purposes of subsection (4), whether a person's employment is principally connected with the provision of any particular local services (including provision for or in connection with the appointment of a person to make such determination);

(b) provision for determining, in the case of any particular organised grouping of employees, the particular new operator who is to be the transferee for the purposes of TUPE (including provision for or in connection with the appointment of a person to make such determination);

(c) provision requiring any person operating local services in the area to which a quality contracts scheme relates to provide the authority or authorities who made the scheme with such information as may be prescribed, at such time as may be prescribed, about such of that person's employees as would fall within subsection (4) if the person ceased to provide those services in the circumstances described in subsection (1)(a);

(d) provision requiring the authority or authorities who made a quality contracts scheme to provide all persons operating local services in the area to which the scheme relates with such information as may be prescribed, at such time as may be prescribed, so as to enable such persons to comply with any requirement imposed by virtue of paragraph (c) of this subsection;

(e) provision requiring the authority or authorities who made a quality contracts scheme to ensure that any quality contract entered into with a person under the scheme, or any other agreement made with a person for the provision of local services in the area to which the scheme relates, is made on terms—

(i) that require the person, in the event of there being any transferring employees, to secure pension protection for every transferring employee, or every transferring employee of a prescribed description, who as an employee of the former operator had rights to acquire pension benefits, and

(ii) that, so far as relating to the securing of pension protection for a transferring employee, are enforceable by the employee.

(8) For the purposes of this section—

(a) “ transferring employee ” means an employee of a former operator whose contract of employment becomes, either by virtue of TUPE or by virtue of this section, a contract of employment with a new operator;

(b) “pension protection” is secured for a transferring employee if after the change of employer referred to in paragraph (a)—

(i) the employee has, as an employee of the new operator, rights to acquire pension benefits, and

(ii) those rights are of such description as is prescribed by regulations.

(9) The Secretary of State must exercise the power conferred by this section to make regulations containing provision falling within subsection (7)(e) so as to ensure—

(a) that pension protection is required to be secured for every transferring original employee who, as an employee of the original operator, had rights to acquire pension benefits, and

(b) that the rights to acquire pension benefits which a transferring original employee has as an employee of the new operator by virtue of paragraph (a) are rights which—

(i) are the same as the rights the transferring original employee had as an employee of the original operator, or

(ii) under provision made by regulations, count as being broadly comparable to, or better than, those rights.

(10) For the purposes of subsection (9)—

“ transferring original employee ” means a transferring employee—

who immediately before the relevant date was employed by a person (the “original operator”) providing local services in the area to which the relevant quality contracts scheme relates, and

whose contract of employment—

was, from that date until the change of employer referred to in subsection (8)(a), a contract of employment with the original operator, or

on each occasion when the employee was subject to a relevant transfer became, either by virtue of TUPE or by virtue of this section, a contract of employment with a person providing local services in the area referred to in paragraph (a);

“ relevant date ”, in relation to a quality contracts scheme, means—

the date on which the scheme was made, or

where—

the local services being provided by the original operator were not subject to the scheme when it was made, and

as a result of either the variation of the scheme, or the continuation of the scheme with modifications, those services became subject to the scheme,

the date on which that variation, or (as the case may be) the decision to continue the scheme with those modifications, was made;

“ relevant transfer ” means anything that is, or is to be treated as, a relevant transfer for the purposes of TUPE.

(11) A person is guilty of an offence under this subsection if—

(a) the person provides information in accordance with a requirement imposed by virtue of subsection (7)(c),

(b) the information is false or misleading in a material particular, and

(c) the person knows that it is or is reckless as to whether it is.

(12) A person who is guilty of an offence under subsection (11) is liable on summary conviction to a fine not exceeding level 4 on the standard scale.

(2) In section 26(1) of the TA 1985 (conditions attached to PSV operator's licence) after paragraph (b) insert—

(bza) the operator has failed to comply with a requirement imposed by virtue of section 134B(7)(c) of the Transport Act 2000; or

(3) In section 155(1) of the TA 2000 (penalties) for “or” at the end of paragraph (b) substitute—

(ba) failed to comply with a requirement imposed by virtue of section 134B(7)(c) of this Act, or

Section 45 Power to make traffic regulation orders

(1) Section 1 of the Road Traffic Regulation Act 1984 (c. 27) (traffic regulation orders outside Greater London) is amended as follows.

(2) In subsection (3A) (orders may be made by local traffic authority for the purposes of quality partnership schemes) for “facilities pursuant to a quality partnership scheme under Part II of the Transport Act 2000” substitute “ relevant bus scheme facilities ” .

(3) After subsection (3A) insert—

(3B) In subsection (3A) “ relevant bus scheme facilities ” means—

(a) facilities provided pursuant to a quality partnership scheme under Part 2 of the Transport Act 2000;

(b) facilities provided pursuant to a quality contract within the meaning of that Part (see section 124(4) and (5) of that Act) or otherwise in connection with a quality contracts scheme under that Part.

Section 46 Competition scrutiny of functions and agreements relating to buses

(1) For section 153 of the TA 2000 (competition test for exercise of bus functions (see Schedule 10 to that Act)) substitute—

Competition test: functions and agreements relating to buses

(153)

(1) Schedule 10 contains provision applying competition tests in relation to—

(a) the exercise of functions relating to quality partnership schemes, ticketing schemes and subsidised local services,

(b) voluntary partnership agreements and certain other agreements, decisions and practices relating to bus services.

(2) A voluntary partnership agreement is any voluntary agreement under which—

(a) a local transport authority, or two or more local transport authorities, undertake to provide particular facilities, or to do anything else for the purpose of bringing benefits to persons using local services, within the whole or part of their area, or combined area, and

(b) one or more operators of local services undertake to provide services of a particular standard.

(3) In subsection (2)—

“ facilities ” means—

facilities provided at specific locations along routes served, or proposed to be served, by local services within the area to which the agreement relates, or

facilities which are ancillary to such facilities;

“standard”, in the case of any services, includes—

any requirements which the vehicles being used to provide the services must meet,

any requirements as to frequency or timing of the services,

any requirements as to the maximum fares that may be charged for particular journeys, or for journeys of particular descriptions, on services to which the agreement applies;

“ voluntary agreement ” means an agreement made otherwise than under sections 114 to 123 (quality partnership schemes).

(2) In section 162 of that Act (interpretation of Part 2) after subsection (4) insert—

(4A) Where a reference to an authority in any of the following provisions is to an Integrated Transport Authority, it is to be construed as including a reference to the Passenger Transport Executive for the integrated transport area concerned—

section 153(2)(a),

in Schedule 10, paragraph 17(5)(b) and (8).

(3) Schedule 10 to the TA 2000 (competition test for exercise of bus functions) is amended in accordance with Schedule 2.

Section 47 Detention of certain PSVs used without PSV operators' licences

(1) In the PPVA 1981, after section 12 (PSV operators' licences) insert—

Detention of certain PSVs used without PSV operators' licences

(12A) 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.

(2) After Schedule 2 to that Act insert, as Schedule 2A, the Schedule set out in Schedule 3 to this Act.

Section 48 Determination of applications for registration where restrictions in force

(1) Section 6 of the TA 1985 (registration of local services) is amended as follows.

(2) After subsection (2) (conditions for providing service) insert—

(2A) Where—

(a) any registration restrictions imposed under section 114(3A) of the Transport Act 2000 (quality partnership schemes) are in force, and

(b) an application for registration is made in respect of a service in relation to which those restrictions have effect,

section 6A of this Act has effect in relation to the application.

(3) After section 6 of the TA 1985 insert—

Applications for registration etc where restrictions are in force

(6A)

(1) This section applies in any case where—

(a) any registration restrictions imposed under section 114(3A) of the Transport Act 2000 are in force in the case of a quality partnership scheme (“ the scheme ”);

(b) an application for registration, or for variation or cancellation of registration, is made under section 6 of this Act to a traffic commissioner in respect of a local service in relation to which those restrictions have effect; and

(c) the application is one which would fall to be accepted by the traffic commissioner, apart from this section.

(2) In any such case the traffic commissioner, before deciding whether or not to accept the application, must give to—

(a) each relevant authority, and

(b) each relevant operator,

a notice complying with subsection (3) below.

(3) The notice must—

(a) identify the application and state that it has been made;

(b) provide prescribed particulars of the application;

(c) inform the persons to whom it is required to be sent of the right of each of them to make relevant representations to the traffic commissioner about the application.

(4) If no relevant representations are made, the application is to be accepted.

(5) If any relevant representations are made by a relevant authority or a relevant operator, the traffic commissioner must decide whether the effect of accepting the application would be detrimental to the provision of local services under the scheme.

(6) The traffic commissioner may decide that question only after—

(a) considering those representations;

(b) taking account of any other relevant applications and any relevant representations made in relation to those applications;

(c) holding such inquiries under section 54 of the 1981 Act as the traffic commissioner may think fit; and

(d) applying the registration criteria.

(7) If the traffic commissioner decides that the effect of accepting the application would not be detrimental to the provision of such services, the application is to be accepted.

(8) If subsection (7) above does not apply, the traffic commissioner may do any one or more of the following—

(a) refuse to accept the application;

(b) require the applicant to amend the application in such respects as the traffic commissioner may require before submitting it again;

(c) if the applicant has not given a written undertaking under section 118(4) of the Transport Act 2000 in relation to the scheme, require the applicant to give such an undertaking before the application may be accepted.

(9) An appeal against any decision of a traffic commissioner under this section may be made to the Transport Tribunal by any of the following persons—

(a) the person who made the application;

(b) any relevant authority that made relevant representations against the application;

(c) any relevant operator who made relevant representations against the application.

As respects appeals to the Transport Tribunal, see Schedule 4 to this Act.

(10) An appeal lies (in accordance with paragraph 14 of Schedule 4 to this Act) at the instance of any of the persons mentioned in the paragraphs of subsection (9) above from a decision of the Transport Tribunal on an appeal under that subsection.

(11) Regulations may be made for the purposes of carrying this section into effect; and the provision that may be made by any such regulations includes provision—

(a) as to the procedure for giving notice under subsection (2) above;

(b) prescribing the particulars of the application that are to be provided in such a notice;

(c) as to the procedure for making relevant representations;

(d) as to the procedure to be followed in determining the application.

(12) In this section—

“ quality partnership scheme ” means a scheme under section 114 of the Transport Act 2000;

“ registration criteria ” means the criteria specified in the scheme by virtue of section 114(3C) of the Transport Act 2000;

“ relevant application ” means any application under section 6 of this Act—

which is made in respect of a local service in relation to which the registration restrictions have effect, and

which (whenever made) is awaiting the decision of the traffic commissioner;

“ relevant authority ” means the authority, or any of the authorities, that made the scheme;

“ relevant operator ” means—

any operator of local services who has given an undertaking under section 118(4) of the Transport Act 2000 in respect of the scheme;

any other operator of local services which might be affected if the application were to be accepted;

“ relevant representations ” means representations that the effect of accepting the application would be detrimental to the provision of services under the scheme, having regard to the registration criteria.

Section 49 Applications for registration where quality contracts scheme in force

(1) Section 6 of the TA 1985 (registration of local services) is amended as follows.

(2) After subsection (2A) (which is inserted by section 48) insert—

(2B) Where—

(a) a quality contracts scheme under section 124 of the Transport Act 2000 is in force,

(b) an operator proposes to provide a local service which is to have one or more stopping places within the area to which the scheme relates,

(c) the proposed service is not excluded from the scheme by virtue of section 127(4) of the Transport Act 2000, and

(d) the operator does not propose to provide the service under a quality contract by virtue of the scheme,

section 6B of this Act has effect with respect to registration of that service.

(3) After subsection (7) (variation or revocation of registration) insert—

(7A) Where—

(a) a quality contracts scheme under section 124 of the Transport Act 2000 is in force,

(b) the operator of a local service registered under this section proposes to vary the registration,

(c) the service, as proposed to be varied, is to have one or more stopping places within the area to which the scheme relates,

(d) the service, as proposed to be varied, is not excluded from the scheme by virtue of section 127(4) of the Transport Act 2000, and

(e) the operator does not propose to provide the service, as proposed to be varied, under a quality contract by virtue of the scheme,

section 6B of this Act has effect with respect to the variation of the registration.

(4) In subsection (8) (time when variation etc becomes effective) after “Subject to regulations under this section” insert “ and, in the case of variation, to section 6B of this Act, ” .

(5) After section 6A of the TA 1985 (which is inserted by section 48) insert—

Applications for registration where quality contracts scheme in force

(6B)

(1) This section applies—

(a) by virtue of subsection (2B) of section 6 of this Act (“Case 1”), in relation to registration of the proposed local service mentioned in that subsection;

(b) by virtue of subsection (7A) of that section (“Case 2”), in relation to the proposed variation of the registration mentioned in that subsection.

(2) Where this section applies, the operator may apply to a traffic commissioner—

(a) in Case 1, for registration of the proposed service under section 6 of this Act, or

(b) in Case 2, for variation of the registration under that section,

notwithstanding anything in section 129(1)(a) of the Transport Act 2000 (sections 6 to 9 of this Act not to apply).

(3) The traffic commissioner must not accept the application except in accordance with subsections (4) to (6) below.

(4) On receipt of the application, the traffic commissioner must consult the authority or authorities who made the quality contracts scheme.

(5) If, within the prescribed time, the traffic commissioner receives from the authority or authorities a clearance certificate in respect of the application, the traffic commissioner must—

(a) in Case 1, register the service under section 6 of this Act, or

(b) in Case 2, vary the registration under that section.

(6) If the traffic commissioner does not receive such a certificate within that time, the application must be rejected.

(7) In relation to Case 2, regulations may prescribe cases in which subsections (3) to (6) above do not apply.

(8) In this section—

“ clearance certificate ” means a certificate that the provision—

in Case 1, of the proposed local service, or

in Case 2, of the local service as proposed to be varied,

will not have an adverse effect on local services provided under quality contracts in the area to which the quality contracts scheme relates;

“ prescribed ” means prescribed in regulations;

“ the relevant authority or authorities ” means the authority or authorities—

who last continued the quality contracts scheme in force under section 131A of the Transport Act 2000, or

if the scheme has not been so continued, who made it.

Section 50 Traffic regulation conditions for anticipated traffic problems

(1) Section 7 of the TA 1985 (application of traffic regulation conditions to local services subject to registration under section 6 of that Act) is amended as follows.

(2) In subsection (1) (traffic authority requesting traffic commissioner to exercise powers in relation to a particular traffic problem) after “particular traffic problem” insert “ which has arisen or which the authority reasonably foresees is likely to arise ” .

(3) In subsection (4) (traffic commissioner to be satisfied that the conditions are required for certain purposes) for “are required” substitute “ are, or are likely to be, required ” .