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Enterprise and Regulatory Reform Bill (HC Bill 7)

Enterprise and Regulatory Reform BillPage 40

which is the subject of the reference in accordance with the
determination of the CMA (see section 193(6)).

(6) In a case where the Tribunal decides the price control matter in
question otherwise than as mentioned in subsection (5)(b), the CMA
5may make an order under this subsection in respect of the costs
incurred by it in connection with the reference.

(7) Subsections (2) to (4) apply in relation to an order under subsection (6)
as they apply in relation to an order under subsection (1); but for that
purpose the reference in subsection (4)(a) to the determination on the
10reference is to be read as a reference to the decision of the Tribunal
mentioned in subsection (6).

(8) An order under subsection (6) must be made as soon as reasonably
practicable after the decision of the Tribunal mentioned in that
subsection.

(9) 15An amount payable to the CMA by virtue of an order made under this
section is recoverable summarily as a civil debt (but this does not affect
any other method of recovery).

(10) The CMA must pay any sums it receives by virtue of this section into the
Consolidated Fund
.

(11) 20The functions of the CMA under this section, other than those under
subsections (9) and (10), are to be carried out on behalf of the CMA by
the group constituted by the chair of the CMA in relation to the
reference in question.

45 Disclosure etc. of information: offences

25In section 241 of the 2002 Act (disclosure of information for the purpose of
exercise of statutory functions), after subsection (2) insert—

(2A) Information disclosed under subsection (1) so that it is not made
available to the public must not be used by the person to whom it is
disclosed for any purpose other than that mentioned in subsection (1).

46 30Review of certain provisions of Chapters 1 and 2

(1) The Secretary of State must, before the end of each review period—

(a) carry out a review of the provisions of this Part mentioned in
subsection (2), and

(b) prepare and publish a report setting out the conclusions of the review.

(2) 35The provisions of this Part are—

(a) sections 21 and 28 and Schedule 11 (investigation powers: mergers and
markets),

(b) section 22 and Schedule 7 (interim measures and pre-emptive action:
mergers), and

(c) 40sections 24 and 30 and Schedules 8 and 12 (time-limits etc: mergers and
markets).

(3) The report must in particular—

(a) set out the objectives intended to be achieved by the provisions,

(b) assess the extent to which those objectives have been achieved, and

Enterprise and Regulatory Reform BillPage 41

(c) assess whether those objectives remain appropriate and, if so, the
extent to which they could be achieved in another way which imposed
less regulation.

(4) The Secretary of State must lay the report before Parliament.

(5) 5Each of the following is a review period for the purposes of this section—

(a) the period of 5 years beginning with the first day on which any of the
provisions mentioned in subsection (2) comes into force (whether
wholly or partly), and

(b) each successive period of 5 years.

47 10Minor and consequential amendments

Schedule 15 (which makes minor and consequential amendments related to
this Part) has effect.

48 Interpretation

In this Part—

  • 15“the 1998 Act” means the Competition Act 1998;

  • “the 2002 Act” means the Enterprise Act 2002.

Part 5 Reduction of legislative burdens

49 Sunset and review provisions

(1) 20The Interpretation Act 1978 is amended as follows.

(2) After section 14 (implied power to amend) insert—

14A Power to include sunset and review provisions in subordinate
legislation

(1) This section applies where an Act confers a power or a duty on a
25person, other than the Scottish Ministers, to make subordinate
legislation.

(2) The subordinate legislation may include—

(a) provision requiring the person to review the effectiveness of the
legislation within a specified period or at the end of a specified
30period;

(b) provision for the legislation to cease to have effect at the end of
a specified day or a specified period;

(c) if the power or duty is being exercised to amend other
subordinate legislation, provision of the kind mentioned in
35paragraph (a) or (b) in relation to that other legislation.

(a)(a)provision requiring the person to review the effectiveness of the
legislation within a specified period or at the end of a specified
period;

(b) provision for the legislation to cease to have effect at the end of
40a specified day or a specified period;

(c) if the power or duty is being exercised to amend other
subordinate legislation, provision of the kind mentioned in
paragraph (a) or (b) in relation to that other legislation.

(3) The provision that may be made by virtue of subsection (2)(a) includes
45provision requiring the person to consider whether the objectives
which it was the purpose of the legislation to achieve remain
appropriate and, if so, whether they could be achieved in another way.

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(4) Subordinate legislation including provision of a kind mentioned in
subsection (2) may make such provision generally or only in relation to
specified provisions of the legislation or specified cases or
circumstances.

(5) 5Subordinate legislation including provision of a kind mentioned in
subsection (2) may make transitional, consequential, incidental or
supplementary provisions or savings in connection with such
provision.

(6) In this section, “specified” means specified in the subordinate
10legislation.

(3) In paragraph 1 of Schedule 2, after the entry for section 11 insert—

  • Section 14A.

50 Heritage planning regulation

Schedule 16 (heritage planning regulation) has effect.

51 15Commission for Equality and Human Rights

(1) In the Equality Act 2006 omit—

(a) section 3 (general duty);

(b) sections 10 and 19 (groups);

(c) section 27 (conciliation).

(2) 20In section 12(4)(b) of that Act (monitoring progress: reports every three years)
for “three” substitute “five”.

(3) The following subsections amend the Equality Act 2006 in consequence of
subsection (1).

(4) In section 7(3) (Scotland: human rights) omit “or 10”.

(5) 25In section 9(4) and (5) (human rights) omit “or 10”.

(6) In section 12 (monitoring progress)—

(a) in subsection (1)(a) for “the aim specified in section 3” substitute “the
duties specified in sections 8 and 9”;

(b) in subsection (1)(b) for “the development of the society described in
30section 3” substitute “changes in society that are consistent with those
duties”.

(7) In section 13(1) (information, advice etc) for “to 10” substitute “and 9”.

(8) In section 16(1) (inquiries) for “, 9 and 10” substitute “and 9”.

(9) In section 17(1) (grants) for “to 10” substitute “and 9”.

(10) 35In section 35 (general interpretation), omit the definition of “groups”.

(11) In section 39(4) (orders and regulations) for “10(6), 15(6) or 27(10)” substitute
“15(6)”.

(12) In Schedule 1 (the Commission)—

(a) in paragraph 39 omit “or 27”;

(b) 40omit paragraph 52(1)(a)(v) and (vi) and (b);

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(c) for paragraph 52(3)(b) substitute—

(b) section 8, in so far as it relates to disability, and;

(d) in paragraph 52(3)(c) omit “, 27(2) and (3)”.

(13) The following subsections amend the Equality Act 2010 in consequence of
5subsection (1).

(14) In section 118 (time limits)—

(a) in subsection (2) omit “or (4)”;

(b) omit subsection (4).

(15) In Schedule 17 (disabled pupils: enforcement) omit—

(a) 10paragraph 4(2) (time limits where dispute referred to conciliation
under section 27 of the Equality Act 2006);

(b) in paragraph 4(2A), “or for conciliation in pursuance of arrangements
under section 27 of the Equality Act 2006”.

52 Primary authorities

(1) 15Section 22 of the Regulatory Enforcement and Sanctions Act 2008 (scope of Part
2) is amended in accordance with subsections (2) to (5).

(2) Before subsection (1), insert—

(A1) This Part applies in relation to a person if the Secretary of State is
satisfied that the person is within subsection (1) or (1A).

(3) 20In subsection (1), for the words from “This Part” to “a person” substitute “A
person is within this subsection if—

(a) the person.

(4) After subsection (1) insert—

(1A) A person (P) is within this subsection if each of the conditions in
25subsection (1B) is met.

(1B) The conditions are—

(a) that P carries on an activity in relation to which a local authority
exercises a relevant function;

(b) that the effect of arrangements made by P with any organisation
30or other person is that P’s approach to compliance, in respect of
the relevant function, is one that is shared with another person
(Q) who carries on the activity;

(c) that—

(i) at least one of P and Q carries on the activity in the area
35of two or more local authorities, or

(ii) Q carries on the activity in the area of a local authority in
which P does not carry on the activity.

(5) For subsection (2) substitute—

(2) In this Part, references to “the regulated person” are to a person to
40whom this Part applies.

(3) The Secretary of State may from time to time publish guidance about
matters likely to be taken into account for the purposes of subsection
(1B)(b).

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(4) The guidance may be published in such manner as the Secretary of
State considers appropriate.

(6) In section 24 of that Act, after subsection (6) insert—

(7) References in this Part to “the relevant function”, in relation to the
5regulated person, are to the relevant function by reference to which the
Secretary of State is satisfied that the person is within section 22(1) or
(1A).

(7) In section 26(2) of that Act (nomination of primary authorities), for “The
Secretary of State” substitute “Where the Secretary of State has been satisfied
10that the regulated person is within section 22(1), the Secretary of State”.

53 Inspection plans

(1) Section 30 of the Regulatory Enforcement and Sanctions Act 2008 (inspection
plans) is amended as follows.

(2) After subsection (3) insert—

(3A) 15An inspection plan may require a local authority other than the primary
authority, on exercising the function of inspection in relation to the
regulated person, to provide the primary authority with a report on its
exercise of the function.

(3) In subsection (7)—

(a) 20for the words from the beginning to “exercising” substitute “Where the
primary authority exercises”;

(b) after “regulated person” insert “, it”.

(4) After subsection (7) insert—

(7A) A local authority other than the primary authority may not exercise the
25function of inspection in relation to the regulated person otherwise
than in accordance with a plan that has been brought to its notice under
subsection (6), unless—

(a) it has notified the primary authority in writing of the way in
which it proposes to exercise the function in relation to the
30regulated person, and

(b) the primary authority has notified the local authority in writing
that it consents to the authority’s exercising the function in that
way.

(7B) Subsection (7C) applies if a primary authority that has been notified by
35a local authority as described in subsection (7A)(a) fails to notify that
authority in writing, within the notification period, whether it consents
to the authority’s exercising the function of inspection as described in
the notification.

(7C) The primary authority is to be treated for the purposes of this section,
40following the expiry of the notification period, as having given the
notification of consent described in subsection (7A)(b).

(7D) The “notification period”, in subsections (7B) and (7C), is the period of
five working days beginning with the first working day after the day
on which the notification referred to in subsection (7A)(a) is received by
45the primary authority.

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(7E) Where an inspection plan includes a requirement of the type described
in subsection (3A), a local authority exercising the function of
inspection in relation to the regulated person must provide a report to
the primary authority in accordance with the requirement.

(5) 5Omit subsection (8).

(6) In subsection (9) for “(8)” substitute “(7A)(a)”.

(7) After subsection (9) insert—

(9A) A primary authority may, with the consent of the Secretary of State,
revoke a plan made by it under this section.

(9B) 10If a primary authority revokes a plan under subsection (9A), it must
notify the other local authorities with the function of inspection that the
plan is no longer in effect.

(8) In subsection (10), for “(9)” substitute “(9B)”.

(9) After subsection (10) insert—

(11) 15In subsection (7D), “working day” means a day other than—

(a) a Saturday or Sunday,

(b) Christmas Day or Good Friday, or

(c) a day which is a bank holiday under the Banking and Financial
Dealings Act 1971 in—

(i) 20the part of the United Kingdom where the primary
authority is, or

(ii) (if different) the part of the United Kingdom where the
authority is that has given the notification referred to in
subsection (7A)(a).

54 25Unnecessary regulation: miscellaneous

Schedule 17 (unnecessary regulation: miscellaneous) has effect.

Part 6 Miscellaneous and general

Copyright

55 30Exploitation of design derived from artistic work

(1) The Copyright, Designs and Patents Act 1988 is amended as follows.

(2) Omit section 52 (effect of exploitation of design derived from artistic work).

(3) In consequence omit the following—

(a) section 79(4)(g);

(b) 35in Schedule 1 paragraph 20.

56 Power to change exceptions: copyright and rights in performances

(1) The Copyright, Designs and Patents Act 1988 is amended as follows.

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(2) In Chapter 3 (acts permitted in relation to copyright works) after section 28
insert—

28ZA Power to add or remove exceptions to copyright

(1) The Secretary of State may by regulations amend this Chapter to
5provide that any act is or is not an act which may be done in relation to
copyright works notwithstanding the subsistence of copyright.

(2) Regulations under this section may—

(a) make supplementary or transitional provision;

(b) make consequential provision, including provision amending
10any enactment or subordinate legislation passed or made before
this section comes into force.

(3) The power to make regulations under this section is exercisable by
statutory instrument.

(4) A statutory instrument containing regulations under this section may
15not be made unless a draft of the instrument has been laid before and
approved by resolution of each House of Parliament.

(3) In Part 2 (rights in performances) after section 189 (in the provisions about
exceptions to rights conferred) insert—

189A Power to add or remove exceptions to rights in performances

(1) 20The Secretary of State may by regulations amend Schedule 2 to provide
that any act is or is not an act which may be done notwithstanding the
rights conferred by this Chapter.

(2) Regulations under this section may—

(a) make supplementary or transitional provision;

(b) 25make consequential provision, including provision amending
any enactment or subordinate legislation passed or made before
this section comes into force.

(3) The power to make regulations under this section is exercisable by
statutory instrument.

(4) 30A statutory instrument containing regulations under this section may
not be made unless a draft of the instrument has been laid before and
approved by resolution of each House of Parliament.

Directors’ remuneration

57 Directors’ remuneration: effect of remuneration report

35In section 439 of the Companies Act 2006 (quoted companies: approval of
directors’ remuneration report), omit subsection (5).

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General

58 Consequential amendments, repeals and revocations

(1) The Secretary of State may by order made by statutory instrument make such
provision as the Secretary of State considers appropriate in consequence of this
5Act.

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

(a) to make transitional, transitory or saving provision;

(b) to amend, repeal, revoke or otherwise modify any provision made by
or under an enactment (including any enactment passed or made in the
10same Session as this Act).

(3) An order under subsection (1) which makes provision for the transfer of a
function from the Competition Commission or the Office of Fair Trading to the
Competition and Markets Authority in consequence of Part 3 of this Act may
make such modifications to the function as the Secretary of State considers
15appropriate in consequence of the transfer.

(4) The modifications mentioned in subsection (3) may, in particular, alter the
circumstances in which, or the conditions under which, the function is
exercisable.

(5) A statutory instrument containing (whether alone or with other provision) an
20order under this section which amends, repeals or revokes any provision of
primary legislation is not to be made unless a draft of the instrument has been
laid before, and approved by a resolution of, each House of Parliament.

(6) A statutory instrument containing an order under this section which does not
amend, repeal or revoke any provision of primary legislation is subject to
25annulment in pursuance of a resolution of either House of Parliament.

(7) In this section—

  • “enactment” includes an Act of the Scottish Parliament, a Measure or Act
    of the National Assembly for Wales and Northern Ireland legislation;

  • “primary legislation” means—

    (a)

    30an Act of Parliament,

    (b)

    an Act of the Scottish Parliament,

    (c)

    a Measure or Act of the National Assembly for Wales, and

    (d)

    Northern Ireland legislation.

59 Transitional, transitory or saving provision

35The Secretary of State may by order made by statutory instrument make such
transitional, transitory or saving provision as the Secretary of State considers
appropriate in connection with the coming into force of any provision of this
Act.

60 Financial provision

40There is to be paid out of money provided by Parliament

(a) any expenditure incurred under or by virtue of this Act by the Secretary of
State or the Competition and Markets Authority, and

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(b) any increase attributable to this Act in the sums payable under any other Act
out of money so provided.

61 Extent

(1) Part 1 extends to England and Wales, Scotland and Northern Ireland.

(2) 5Part 2 extends only to England and Wales and Scotland, except that the
following provisions of that Part extend also to Northern Ireland—

(a) section 16(1)(c);

(b) paragraph 11 of Schedule 1;

(c) paragraphs 36 to 39 of Schedule 2.

(3) 10Part 3 extends to England and Wales, Scotland and Northern Ireland, except as
follows—

(a) paragraphs 15 to 44, 69 to 84 and 101 to 107 of Schedule 6 extend only
to England and Wales and Scotland;

(b) paragraphs 52 to 68, 96, 108 to 123 and 127 to 139 of that Schedule
15extend only to England and Wales;

(c) paragraphs 9 to 14, 45 to 51, 171 to 180 and 192 to 209 of that Schedule
extend only to Scotland;

(d) paragraphs 149 to 170 and 181 to 191 of that Schedule extend only to
Northern Ireland.

(4) 20Part 4 extends to England and Wales, Scotland and Northern Ireland, except as
follows—

(a) paragraphs 1 to 7 and 11 to 14 of Schedule 14 and paragraphs 2, 3, 7, 13
and 41 of Schedule 15, extend only to England and Wales and Scotland;

(b) paragraphs 8 to 10 and 20 to 22 of Schedule 14, and paragraphs 4 to 6
25and 47 to 49 of Schedule 15, extend only to England and Wales;

(c) paragraphs 23 to 29 of Schedule 14, and paragraphs 53 to 55 of Schedule
15, extend only to Northern Ireland.

(5) Part 5 extends as follows—

(a) sections 49, 52, 53 and Part 1 of Schedule 17 extend to England and
30Wales, Scotland and Northern Ireland,

(b) section 51 extends only to England and Wales and Scotland, and

(c) section 50, Schedule 16 and Parts 2 and 3 of Schedule 17 extend only to
England and Wales.

(6) If a provision repealed by Part 1 of Schedule 17 extends to the Isle of Man or
35any of the Channel Islands, Her Majesty may by Order in Council extend the
repeal there.

(7) This Part extends to England and Wales, Scotland and Northern Ireland.

62 Commencement

(1) Sections 58 to 63 come into force on the day on which this Act is passed.

(2) 40The following provisions come into force at the end of the period of 2 months
beginning with the day on which this Act is passed—

(a) section 51;

(b) paragraphs 7 and 8 of Schedule 16 (and section 50 so far as it relates to
them);

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(c) Parts 1 and 2 of Schedule 17 (and section 54 so far as it relates to them).

(3) The remaining provisions of this Act come into force on such day as the
Secretary of State may by order made by statutory instrument appoint.

(4) An order under subsection (3) may appoint different days for different
5purposes.

63 Short title

This Act may be cited as the Enterprise and Regulatory Reform Act 2012.