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Wales BillPage 20

(a) corresponds to any of the particulars which would be required
under Schedule 2 to the Finance Act 1931, but for section
28(3)(c) of that Act, or

(b) uniquely identifies, or assists in uniquely identifying, any
5person who gives consideration for, or is a party to, the
transaction.

(4) Information is to be provided under subsection (1) in such form as
HMRC may reasonably specify.

(5) Information acquired by HMRC under this section is to be treated, for
10the purposes of the Commissioners for Revenue and Customs Act 2005,
as acquired in connection with a function of theirs.

(6) In this section, “HMRC” means Her Majesty’s Revenue and Customs.

(2) This section has effect in relation to land transactions in relation to which
section 15 has effect.

15Welsh tax on disposals to landfill

17 Welsh tax on disposals to landfill

(1) In Part 4A of GOWA 2006 (as inserted by section 6), after Chapter 3 (inserted
by section 14) insert—

CHAPTER 4 Tax on disposals to landfill
116N 20Tax on disposals to landfill

(1) A tax charged on disposals to landfill made in Wales is a devolved tax.

(2) A disposal is a disposal to landfill if—

(a) it is a disposal of material as waste, and

(b) it is made by way of landfill.

(2) 25A devolved tax specified in section 116N of GOWA 2006 (as inserted by this
section) may not be charged under an Act of the Assembly on a disposal if the
disposal is made before the date appointed under section 18(3) (disapplication
of UK landfill tax).

18 Disapplication of UK landfill tax

(1) 30Part 3 of the Finance Act 1996 (landfill tax) is amended as follows.

(2) In section 40(1) (charge on taxable disposal), omit “and Wales”.

(3) This section has effect in relation to disposals made on or after such date as is
appointed by the Treasury by order under this subsection.

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Borrowing

19 Borrowing by the Welsh Ministers

(1) GOWA 2006 is amended as follows.

(2) Section 121 (borrowing by Welsh Ministers) is amended in accordance with
5subsections (3) to (5).

(3) For subsection (1) substitute—

(1) The Welsh Ministers may borrow from the Secretary of State—

(a) any amounts it appears to them are required by them for the purpose
of meeting a temporary excess of sums paid out of the Welsh
10Consolidated Fund over sums paid into that Fund,

(b) any amounts it appears to them are required by them for the purpose
of providing a working balance in the Welsh Consolidated Fund, and

(c) any amounts which in accordance with rules determined by the
Treasury are required by the Welsh Ministers to meet current
15expenditure because of a shortfall in receipts from devolved taxes, or
from income tax charged by virtue of a Welsh rate resolution, against
forecast receipts.

(1A) The Welsh Ministers may, with the approval of the Treasury, borrow by way
of loan any amounts it appears to them are required by them for the purpose of
20meeting capital expenditure.

(1B) An amount is required for the purpose of meeting capital expenditure if the
expenditure would be capital expenditure for the purposes of accounts under
section 131.

(4) In subsection (2), after “section” insert “from the Secretary of State”.

(5) 25After subsection (3) insert—

(4) The Secretary of State may by order made with the consent of the
Treasury amend subsection (1A) so as to vary the means by which the
Welsh Ministers may borrow money.

(5) No order is to be made under subsection (4) unless a draft of the
30statutory instrument containing it has been laid before, and approved
by a resolution of, the House of Commons.

(6) Section 122 (lending by Secretary of State) is amended in accordance with
subsections (7) to (9).

(7) In subsection (2), for “that section” substitute “section 121(1)”.

(8) 35In subsection (3), omit “greater”.

(9) After subsection (3) insert—

(3A) An amount substituted under subsection (3) may be more or less than the
amount for which it is substituted but may not be less than £500 million.

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(10) After section 122 insert—

122A Lending for capital expenditure

(1) The aggregate at any time outstanding in respect of the principal of amounts
borrowed under section 121(1A) shall not exceed £500 million.

(2) 5The Secretary of State may by order made with the consent of the Treasury
substitute for the amount for the time being specified in subsection (1) such
amount as may be specified in the order.

(3) An amount substituted under subsection (2) may be more or less than the
amount for which it is substituted but may not be less than £500 million.

(4) 10No order is to be made under subsection (2) unless a draft of the
statutory instrument containing it has been laid before, and approved
by a resolution of, the House of Commons.

(5) A person lending money to a member of the Welsh Government—

(a) is not bound to enquire whether the member of the Welsh
15Government has power to borrow the money, and

(b) is not to be prejudiced by the absence of any such power.

(6) The Welsh Ministers may not mortgage or charge any of their property
as security for money which they have borrowed under section
121(1A).

20This is subject to section 121(3) (charging of sums on the Welsh
Consolidated Fund).

This is subject to section 121(3) (charging of sums on the Welsh
Consolidated Fund).

(7) Security given in breach of subsection (6) is unenforceable.

20 25Repeal of existing borrowing power

(1) In Schedule 3 to the Welsh Development Agency Act 1975 (borrowing and
guarantees), the following are repealed—

(a) paragraph 3 (power for Welsh Ministers to borrow money);

(b) paragraph 6 (power for Treasury to guarantee money borrowed under
30paragraph 3).

(2) The repeals made by subsection (1) do not affect—

(a) the liability of the Welsh Ministers to repay any money borrowed
under paragraph 3 of that Schedule before the date when that
subsection comes into force, or

(b) 35any guarantee given under paragraph 6 of that Schedule before that
date.

(3) Subsection (4) applies to the aggregate amount (if any) which, immediately
before subsection (1) comes into force, is outstanding in respect of the principal
of sums borrowed on or after the day on which this Act is passed under
40paragraph 3 of that Schedule for the purpose of meeting capital expenditure.

(4) For the purpose of section 122A(1) of GOWA 2006 (limit on capital borrowing),
that amount is treated as outstanding in respect of the principal of sums
borrowed under section 121(1A) of that Act.

(5) An amount is borrowed for the purpose of meeting capital expenditure if the
45expenditure would be capital expenditure for the purposes of accounts under
section 131 of GOWA 2006.

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Budgetary procedures

21 Budgetary procedures

(1) Schedule 7 to GOWA 2006 (legislative competence to make Acts of the
Assembly) is amended as follows.

(2) 5In Part 1, in paragraph 13 (National Assembly for Wales), at the end insert
“Budgetary procedures.

Budgetary procedures” are procedures for a financial year relating
to—

(a) the authorisation of the amount of resources which may be
10used or retained in that year by relevant persons or pursuant
to a relevant enactment,

(b) the authorisation of the amount which may be paid out of the
Welsh Consolidated Fund in that year to relevant persons or
for use pursuant to a relevant enactment, or

(c) 15the scrutiny of the use of the amounts so authorised under
paragraph (a) or (b) or of the exercise of borrowing powers by
the Welsh Ministers.

The following are “relevant persons”—

(a) the Welsh Ministers,

(b) 20the First Minister,

(c) the Counsel General,

(d) the Assembly Commission,

(e) the Wales Audit Office, and

(f) the Public Service Ombudsman for Wales.

25A “relevant enactment” is an enactment which provides for payment
out of the Welsh Consolidated Fund.

The reference to the use of resources is a reference to their
expenditure, consumption or reduction in value.

(3) In Part 2, in paragraph 5 (provisions of GOWA 2006 which may not be
30modified)—

(a) in sub-paragraph (2), in paragraph (a), after “78,” insert “120(2), 125 to
128,”;

(b) after sub-paragraph (4), insert—

(4A) Sub-paragraph (1), so far as it applies in relation to a
35provision of Part 5 or section 159, does not apply to a
provision of an Act of the Assembly if—

(a) the provision is incidental to, or consequential on, a
provision of an Act of the Assembly relating to
budgetary procedures or devolved taxes, and

(b) 40the Secretary of State consents to the provision.

(4B) In sub-paragraph (4A), “budgetary procedures” has the same
meaning as in paragraph 13 of Part 1 of this Schedule.

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Reports

22 Reports on the implementation and operation of this Part

(1) The Secretary of State must—

(a) make reports on the implementation and operation of this Part (see
5subsection (7)),

(b) lay a copy of each report before each House of Parliament, and

(c) send a copy of each report to the Welsh Ministers, who must lay a copy
of it before the Assembly.

(2) The Welsh Ministers must—

(a) 10make reports on the implementation and operation of this Part (see
subsection (7)),

(b) lay a copy of each report before the Assembly, and

(c) send a copy of each report to the Secretary of State, who must lay a copy
of it before each House of Parliament.

(3) 15A report must be made under each of subsections (1) and (2)—

(a) before the first anniversary of the day on which this Act is passed, and

(b) thereafter, before each subsequent anniversary of that day until the
final reports are made under subsection (4).

(4) Final reports must be made on, or as soon as practicable after, the first
20anniversary of the day on which the last of the provisions of this Part is
implemented (as determined under subsections (5) and (6)).

(5) A provision of this Part is implemented—

(a) if it is expressed as applying in relation to events occurring on or after
a particular day, on that day;

(b) 25if it is expressed as applying in relation to a tax year or financial year,
on the last day of that year;

(c) in any other case, on the day on which it comes into force.

(6) If, in the case of any provision, the application of subsection (5) gives more than
one day, the provision is implemented on the last of them.

(7) 30A report on the implementation and operation of this Part must include—

(a) a statement of the steps that have been taken, whether by the maker of
the report or by others, since the making of the previous report (or, in
the case of the first report, since the passing of this Act) towards
implementation of the provisions of this Part,

(b) 35a statement of the steps that the maker of the report proposes should be
taken, whether by the maker of the report or by others, towards the
implementation of the provisions of this Part,

(c) an assessment of the operation of the provisions of this Part that have
been implemented,

(d) 40an assessment of the operation of any other powers to devolve taxes to
the Assembly or to change the powers of the Welsh Ministers to borrow
money, and of any other changes affecting the provisions inserted or
amended by this Part,

(e) a statement of the effect of this Part on the amount of any payments
45made by the Secretary of State under section 118 of GOWA 2006
(payments into the Welsh Consolidated Fund), and

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(f) any other matters concerning the sources of revenue for the Welsh
Government that the maker of the report considers should be brought
to the attention of Parliament or the Assembly.

(8) Until the majority of the voters in a referendum held by virtue of section 11(1)
5vote in favour of sections 8 and 9 (income tax provisions) coming into force, the
statements required by subsection (7)(a) and (b) do not include steps taken, or
proposed to be taken, towards the implementation of those provisions.

(9) In this section, references to “this Part” do not include—

(a) section 10 (amendments to the definition of a Scottish taxpayer), or

(b) 10section 21 (budgetary procedures).

Part 3 Miscellaneous

23 Local housing authorities: limits on housing revenue account debt

(1) Part 6 of the Local Government and Housing Act 1989 (housing finance) is
15amended as follows.

(2) After section 76 insert—

76A Limits on indebtedness

(1) The Treasury may from time to time make a determination providing
for the maximum amount of housing debt that may be held, in
20aggregate, by local housing authorities in Wales that keep a Housing
Revenue Account.

(2) The Welsh Ministers may from time to time make a determination
providing for the calculation in relation to each such authority of—

(a) the amount of housing debt that, at such time and on such
25assumptions as the Welsh Ministers may determine, is to be
treated as held by the authority, and

(b) the maximum amount of such housing debt that the authority
may hold.

(3) The Welsh Ministers must make a determination under subsection (2)
30in relation to each authority within the period of 6 months beginning
immediately after the day on which the Treasury makes a
determination under subsection (1).

(4) The aggregate of the amounts determined under subsection (2)(b) must
not exceed the amount determined under subsection (1).

(5) 35A local housing authority may not hold debt in contravention of a
determination under subsection (2)(b).

(6) A determination under this section may, in particular, provide for all or
part of an amount to be calculated in accordance with a formula or
formulae.

(7) 40A determination under this section may provide for assumptions to be
made in making a calculation whether or not those assumptions are, or
are likely to be, borne out by events.

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(8) As soon as practicable after making a determination under subsection
(1), the Treasury must—

(a) send a copy of it to the Welsh Ministers, and

(b) lay a copy of it before the House of Commons.

(9) 5For the purposes of this section a debt is a “housing debt”, in relation to
a local housing authority, if—

(a) the debt is held by the authority in connection with the exercise
of its functions relating to houses and other property within its
Housing Revenue Account, and

(b) 10interest and other charges in respect of the debt are required to
be carried to the debit of that account.

76B Power to obtain information

(1) A local housing authority in Wales, and any officer or employee of a
local housing authority in Wales concerned with their housing
15functions, must supply the Welsh Ministers with such information as
the Welsh Ministers may specify, either generally or in any particular
case, for the purpose of enabling the Welsh Ministers to exercise their
functions under section 76A.

(2) A local housing authority must supply the Welsh Ministers with such
20certificates supporting the information required by them as they may
specify.

(3) If a local housing authority, or any officer or employee of a local
housing authority concerned with their housing functions, fails to
comply with subsection (1) or (2) before the end of such period as the
25Welsh Ministers may specify, the Welsh Ministers may exercise their
functions under section 76A on the basis of such assumptions and
estimates as they see fit.

(3) Section 87 (determinations and directions) is amended as follows.

(4) For “the Secretary of State” (in each place) substitute “the appropriate person”.

(5) 30After subsection (1) insert—

(1A) Subsection (1)(b) does not apply to determinations under section
76A(2).

(6) In subsection (2)—

(a) for “him” substitute “that person”;

(b) 35for “he” substitute “the appropriate person”.

24 The work of the Law Commission so far as relating to Wales

(1) The Law Commissions Act 1965 is amended as follows.

(2) In section 3(1) (functions of the Commissions), after paragraph (e) insert—

(ea) in the case of the Law Commission, to provide advice and
40information to the Welsh Ministers;.

(3) In section 3A (reports on implementation of Law Commission proposals), after

Wales BillPage 27

subsection (6) insert—

(7) This section does not require the Lord Chancellor to prepare reports on
Law Commission proposals on which the Welsh Ministers are required
to report (see section 3C).

(4) 5After section 3B insert—

3C Report on implementation of Law Commission proposals: Wales

(1) The Welsh Ministers must prepare a report each year on—

(a) the Law Commission proposals relating to Welsh devolved
matters that have been implemented since the preparation of
10the previous report under this section;

(b) the Law Commission proposals relating to Welsh devolved
matters that have not been implemented as at the preparation of
the report.

(2) The report required under subsection (1)(b) must include—

(a) 15plans for dealing with any of the proposals described in that
paragraph;

(b) any decision not to implement any of those proposals taken
since the preparation of the previous report under this section;

(c) the reasons for any such decision.

(3) 20The Welsh Ministers must lay the report before the National Assembly
for Wales.

(4) The Welsh Ministers must prepare a report under this section—

(a) before the first anniversary of the day on which this section
comes into force, and

(b) 25thereafter, before each subsequent anniversary of that day.

(5) In the case of the first report, the references in subsections (1) and (2) to
the period since the preparation of the previous report are to be read as
references to the period since the coming into force of this section.

(6) If a decision not to implement a Law Commission proposal is dealt with
30in a report under this section, subsection (1)(b) does not require a later
report to deal with the proposal so far as it is covered by that decision.

(7) If a decision not to implement a Law Commission proposal has been
taken before the coming into force of this section, subsection (1)(b) does
not require any report to deal with the proposal so far as it is covered
35by that decision.

(8) In this section—

(a) “Law Commission proposal” means any proposal or
recommendation for the reform of the law that has been
published in a report by the Law Commission, and

(b) 40references to the implementation of a Law Commission
proposal are to its implementation in whole or in part.

(9) Whether a Law Commission proposal relates to Welsh devolved
matters is to be determined in accordance with section 3D(8).

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3D Protocol about the Law Commission’s work: Wales

(1) The Welsh Ministers and the Law Commission may agree for the
purposes of this section a statement (a “protocol”) about the Law
Commission’s work relating to Welsh devolved matters.

(2) 5The protocol may include (among other things) provision about—

(a) the principles and methods to be applied in deciding the work
relating to such matters to be carried out by the Law
Commission and in the carrying out of that work;

(b) the assistance and information that the Welsh Ministers and the
10Law Commission are to give to each other;

(c) the way in which the Welsh Ministers are to deal with Law
Commission proposals so far as they relate to Welsh devolved
matters.

(3) The Welsh Ministers and the Law Commission must from time to time
15review the protocol and may agree to revise it.

(4) The Law Commission must not agree the protocol (or any revision of it)
without the Lord Chancellor’s approval.

(5) The Welsh Ministers must lay the protocol (and any revision of it)
before the National Assembly for Wales.

(6) 20The Welsh Ministers and the Law Commission must have regard to the
protocol.

(7) “Law Commission proposal” has the meaning given in section 3C(8)(a).

(8) In this section and section 3C, the Law Commission’s work (including
any of their proposals) relates to Welsh devolved matters so far as it
25relates to—

(a) any matter provision about which would be within the
legislative competence of the National Assembly for Wales if it
were contained in an Act of the Assembly, or

(b) (so far as it is not within paragraph (a)), any matter functions
30with respect to which are exercisable by the Welsh Ministers,
the First Minister for Wales, the Counsel General to the Welsh
Government or the National Assembly for Wales Commission.

(5) In section 5(4) (expenses to be paid out of money provided by Parliament),
after “Parliament” insert “(except to the extent that those expenses are met by
35the Welsh Ministers)”.

Part 4 General

25 Orders

Any power to make an order under this Act is exercisable by statutory
40instrument.

26 Interpretation

In this Act—

27 Power to make supplementary, consequential, etc provision

(1) 10The Treasury may by order make—

(a) such supplementary, incidental or consequential provision as appears
appropriate in connection with the provisions of Part 2, and

(b) such transitional, transitory or saving provision as appears appropriate
in connection with the coming into force of those provisions.

(2) 15An order under this section may make—

(a) different provision for different cases or classes of case or different
purposes;

(b) provision which applies generally or subject to specified exceptions or
only in relation to specific cases or classes of case.

(3) 20An order under this section may make modifications of this Act or of an
enactment passed or made before the passing of this Act or in the session in
which this Act is passed.

(4) A statutory instrument containing an order under this section which includes
provision modifying any provision of an Act or a Measure or Act of the
25Assembly may not be made unless a draft of the instrument has been laid
before and approved by a resolution of the House of Commons.

(5) Any other statutory instrument containing an order under this section is
subject to annulment in pursuance of a resolution of the House of Commons.

28 Commencement

(1) 30This Part comes into force on the day on which this Act is passed.

(2) The 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) Part 1;

(b) Part 2, except the referendum-related provisions and sections 19 and
3520;

(c) section 24.

(3) Subsection (2)(b) is subject to the provision made in the following sections as
to how those sections have effect—

(a) sections 14, 15 and 16;

(b) 40sections 17 and 18.

(4) The “referendum-related provisions” are sections 8, 9 and 10(5), (6), (7)(a) and
(8)(a); they come into force in accordance with section 13 (commencement if
majority in favour at referendum).

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