Cities and Local Government Devolution Bill (HC Bill 64)

(c) any other evidence or contextual information that the Secretary
of State considers it appropriate to include.

(4) A proposal under subsection (1)(a) may be included in a scheme
prepared and published under section 109 or 112.

(5) 5For the purposes of this section “the appropriate authorities” are—

(a) each county council the whole or any part of whose area is
within the area for which the combined authority is, or is to be,
established,

(b) each district council whose area is within the area for which the
10combined authority is, or is to be, established, and

(c) in the case of an order in relation to an existing combined
authority, the combined authority.””

Combined authorities: accountability etc

9 Overview and scrutiny committees and audit committees

(1) 15In section 104 of the Local Democracy, Economic Development and
Construction Act 2009 (constitution and functions: transport), after subsection
(8) insert—

“(9) Schedule 5A makes provision for combined authorities to have
overview and scrutiny committees and audit committees; and
20provision made in an order under subsection (1) is subject to that
Schedule.””

(2) After Schedule 5 to that Act insert, as Schedule 5A, the Schedule set out in
Schedule 3 to this Act.

10 Funding of combined authorities

(1) 25In section 74 of the Local Government Finance Act 1988 (levies), in subsection
(10)—

(a) for “attributable to” substitute “attributable—

(a) to”;”

(b) after “transport” insert “, or

(b) 30so far as the constituent councils consent, to the exercise
of any other functions.””

(2) After that subsection insert—

“(11) Regulations under this section by virtue of subsection (8) may not make
provision in relation to expenses of a combined authority that are
35attributable to the exercise of mayoral functions.

(12) In subsections (10) and (11)—

• “constituent council” means—

  (a)

  a county council the whole or any part of whose area is
  within the area of the combined authority, or

  (b)

  40a district council whose area is within the area of the
  combined authority;

Cities and Local Government Devolution BillPage 11

• “mayoral functions” has the meaning given by section 107F(7) of
  the Local Democracy, Economic Development and
  Construction Act 2009.””

(3) In section 23 of the Local Government Act 2003 (meaning of “local authority”
5for purposes of Part 1 of that Act), in subsection (5) after “only” insert “or in
relation to any other functions of the authority that are specified for the
purposes of this subsection in regulations made by the Secretary of State.”

(4) After that subsection insert—

“(6) A function of a combined authority may be specified in regulations
10under subsection (5) only with the consent of—

(a) each county council the whole or any part of whose area is
within the area of the authority, and

(b) each district council whose area is within the area of the
authority.

(7) 15The reference in subsection (5) to functions of the authority includes, in
the case of a mayoral combined authority, mayoral functions.

(8) In subsection (7)—

• “mayoral combined authority” has the meaning given by section
  107A(9) of the Local Democracy, Economic Development and
  20Construction Act 2009;

• “mayoral functions” has the meaning given by section 107F(7) of
  that Act.

(9) No regulations under subsection (5) may be made unless a draft of the
statutory instrument containing the regulations (whether containing
25them alone or with other provisions) has been laid before, and
approved by a resolution of, each House of Parliament.””

11 General power of competence

After section 113C of the Local Democracy, Economic Development and
Construction Act 2009 insert—

“113D 30 General power of competence

(1) The Secretary of State may by order provide for Chapter 1 of Part 1 of
the Localism Act 2011 (which confers a general power of competence
on local authorities) to have effect in relation to a combined authority
specified in the order as it has effect in relation to a local authority.

(2) 35An order under this section may be made only with the consent of the
appropriate authorities (as defined by section 107B(6)).

(3) Where an order under subsection (1) is contained in the same
instrument as an order made by virtue of section 107B(3)(b), the non-
consenting constituent council is not to be treated as an appropriate
40authority for the purposes of subsection (2) above.””

Combined authorities and EPBs: areas and procedure

12 Removal of geographical restrictions in relation to EPBs

(1) The Local Democracy, Economic Development and Construction Act 2009 is
amended as follows.

(2) 5Omit subsections (3) and (4) of section 88 (EPBs and their areas).

(3) In section 95(2)(a) (changes to boundaries of an EPB’s area: conditions), for
“conditions A to D” substitute “conditions A and D”.

(4) In section 98(3)(c) (preparation and publication of scheme for new EPB:
conditions) for “conditions A to C” substitute “condition A”.

(5) 10In section 99 (requirements in connection with establishment of EPB), after
subsection (3) insert—

“(3A) Subsection (3B) applies where the Secretary of State is considering
whether to make an order establishing an EPB for an area and—

(a) part of the area is separated from the rest of it by one or more
15local government areas that are not within the area, or

(b) a local government area that is not within the area is
surrounded by local government areas that are within the area.

(3B) In deciding whether to make the order, the Secretary of State must have
regard to the likely effect of the creation of the proposed EPB on
20economic development or regeneration in each local government area
that is next to any part of the proposed EPB area.””

(6) In section 102 (requirements in connection with changes to existing EPB
arrangements), after subsection (2), insert—

“(2A) Subsection (2B) applies where the Secretary of State is considering
25whether to make an order under section 95 and—

(a) part of the area to be created is separated from the rest of it by
one or more local government areas that are not within the area,
or

(b) a local government area that is not within the area to be created
30is surrounded by local government areas that are within the
area.

(2B) In deciding whether to make the order under section 95, the Secretary
of State must have regard to the likely effect of the proposed change to
the EPB’s area on economic development or regeneration in each local
35government area that is next to any part of the area to be created by the
order.””

13 Removal of geographical restrictions in relation to combined authorities

(1) The Local Democracy, Economic Development and Construction Act 2009 is
amended as follows.

(2) 40Omit subsections (3) and (4) of section 103 (combined authorities and their
areas).

(3) In section 106(2)(a) (changes to boundaries of a combined authority’s area:
conditions), for “conditions A to D” substitute “conditions A and D”.

(4) In section 109(3)(c) (preparation and publication of scheme for new combined
authority: conditions), for “conditions A to C” substitute “condition A”.

(5) In section 110 (requirements in connection with establishment of combined
authority), before subsection (4) insert—

“(3A) 5Subsection (3B) applies where the Secretary of State is considering
whether to make an order establishing a combined authority for an area
and—

(a) part of the area is separated from the rest of it by one or more
local government areas that are not within the area, or

(b) 10a local government area that is not within the area is
surrounded by local government areas that are within the area.

(3B) In deciding whether to make the order, the Secretary of State must have
regard to the likely effect of the creation of the proposed combined
authority on the exercise of functions equivalent to those of the
15proposed combined authority’s functions in each local government
area that is next to any part of the proposed combined authority area.””

(6) In section 113 (requirements in connection with changes to existing combined
authorities), after subsection (2) insert—

“(2A) Subsection (2B) applies where the Secretary of State is considering
20whether to make an order under section 106 and—

(a) part of the area to be created is separated from the rest of it by
one or more local government areas that are not within the area,
or

(b) a local government area that is not within the area to be created
25is surrounded by local government areas that are within the
area.

(2B) In deciding whether to make the order under section 106, the Secretary
of State must have regard to the likely effect of the change to the
combined authority’s area on the exercise of functions equivalent to
30those of the combined authority’s functions in each local government
area that is next to any part of the area to be created by the order.””

14 Changes to existing EPB

(1) The Local Democracy, Economic Development and Construction Act 2009 is
amended as follows.

(2) 35In section 100 (review by authorities: existing EPB)—

(a) in subsection (1), for “a review of one or more EPB matters.” substitute
“a review of—

“(a) a matter in relation to which an order may be made
under section 95 or 96;

(b) 40a matter concerning the EPB that the EPB has power to
determine.”;”

(b) omit subsection (3).

(3) In section 101 (preparation and publication of scheme: existing EPB)—

(a) in subsection (1), for “any one or more of sections 89, 91, 92, 95 and 96”
45substitute “section 95 or 96”;

(b) in subsection (2), omit “or powers”.

(4) After section 101, insert—

“101A Application in respect of change to constitution, functions or funding:
existing EPB

(1) Any one or more of the authorities to whom this section applies may,
5in relation to an existing EPB, apply to the Secretary of State in respect
of one or more EPB matters.

(2) This section applies to—

(a) the EPB;

(b) a county council whose area, or part of whose area, is within the
10area of the EPB;

(c) a district council whose area is within the area of the EPB.

(3) For the purposes of this section an “EPB matter” is a matter in relation
to which an order may be made under any of sections 89, 91 and 92.

(4) An application to the Secretary of State under subsection (1) must—

(a) 15be made in writing;

(b) specify how the exercise of the power to make an order under
any one or more of sections 89, 91 and 92 would be likely to
improve—

(i) the exercise of statutory functions relating to economic
20development and regeneration in the area of the EPB, or

(ii) economic conditions in the area of the EPB.

(5) An application may be made under this section only if every authority
to whom this section applies consents to the making of the application.””

(5) In section 102 (requirements in connection with changes to existing EPB
25arrangements)—

(a) in subsection (1), after “section 101” insert “or to an application made
under section 101A”;

(b) in subsection (2)(a), after “section 100(2)” insert “or section 101A(2)”.

15 Requirements in connection with establishment etc. of combined authority

(1) 30The Local Democracy, Economic Development and Construction Act 2009 is
amended as follows.

(2) In section 103, omit subsection (6) (combined authorities: area must have been
included in a scheme under section 109).

(3) In section 110 (requirements in connection with establishment of combined
35authority), for subsections (1) to (3) substitute—

“(1) The Secretary of State may make an order establishing a combined
authority for an area only if—

(a) the Secretary of State considers that to do so is likely to improve
the exercise of statutory functions in the area or areas to which
40the order relates,

(b) the constituent councils consent, and

(c) any consultation required by subsection (2) has been carried
out.

(1A) If a scheme for the establishment of the combined authority has been
prepared and published under section 109 the Secretary of State must
have regard to that scheme in making the order.

(2) The Secretary of State must carry out a public consultation unless—

(a) 5a scheme has been prepared and published under section 109,

(b) the constituent councils carried out a public consultation in
connection with the proposals contained in the scheme and
provided the Secretary of State with a summary of the
consultation responses, and

(c) 10the Secretary of State considers that no further consultation is
necessary.

(3) In this section “constituent council” means—

(a) a county council the whole or any part of whose area is within
the area for which the combined authority is to be established,
15or

(b) a district council whose area is within the area for which the
combined authority is to be established.””

(4) In section 113 (requirements in connection with changes to existing combined
arrangements), for subsections (1) and (2) substitute—

“(1) 20The Secretary of State may make an order under section 104, 105, 106 or
107 in relation to an existing combined authority only if—

(a) the Secretary of State considers that to do so is likely to improve
the exercise of statutory functions in the area or areas to which
the order relates,

(b) 25the constituent councils consent, and

(c) any consultation required by subsection (2) has been carried
out.

(1A) If a scheme has been prepared and published under section 112 the
Secretary of State must have regard to that scheme in making the order.

(2) 30The Secretary of State must carry out a public consultation unless—

(a) a scheme has been prepared and published under section 112,

(b) the authorities that prepared and published the scheme carried
out a public consultation in connection with the proposals
contained in the scheme and provided the Secretary of State
35with a summary of the consultation responses, and

(c) the Secretary of State considers that no further consultation is
necessary.

(2A) In this section “constituent council” means—

(a) a county council the whole or any part of whose area is within
40the area or proposed area of the combined authority, or

(b) a district council whose area is within the area or proposed area
of the combined authority.””

Local authorities: governance, constitution and functions

16 Governance arrangements etc of local authorities in England

(1) 45The Secretary of State may by regulations make provision about—

(a) the governance arrangements of local authorities;

(b) the constitution and membership of local authorities under Part 1 of the
Local Government Act 1972;

(c) the structural and boundary arrangements in relation to local
5authorities under Part 1 of the Local Government and Public
Involvement in Health Act 2007.

(2) In subsection (1) “governance arrangements” means the executive
arrangements, committee system or prescribed arrangements operated by a
local authority under Part 1A of the Local Government Act 2000.

(3) 10Regulations under this section may be made only with the consent of the local
authorities to whom the regulations apply.

(4) The power to make regulations under this section—

(a) is exercisable by statutory instrument;

(b) includes power to make transitional, transitory or saving provision;

(c) 15may, in particular, be exercised by amending, repealing, revoking or
otherwise modifying any provision made by or under an Act passed
before this Act or in the same Session.

(5) A statutory instrument containing regulations under this section may be made
only if a draft of the instrument has been laid before each House of Parliament
20and approved by a resolution of each House.

(6) At the same time as laying a draft of a statutory instrument containing
regulations under this section before Parliament, the Secretary of State must
lay before Parliament a report explaining the effect of the regulations and why
the Secretary of State considers it appropriate to make the regulations.

(7) 25The report must include—

(a) a description of any consultation taken into account by the Secretary of
State,

(b) information about any representations considered by the Secretary of
State in connection with the regulations, and

(c) 30any other evidence or contextual information that the Secretary of State
considers it appropriate to include.

(8) If a draft of regulations under this section would, apart from this subsection, be
treated for the purposes of the standing orders of either House of Parliament
as a hybrid instrument, it is to proceed in that House as if it were not a hybrid
35instrument.

(9) In this section “local authority” means a county council in England, a district
council or a London borough council.

17 Power to transfer etc. public authority functions to certain local authorities

(1) The Secretary of State may by regulations—

(a) 40make provision for a function of a public authority that is exercisable in
relation to a relevant local authority’s area to be a function of the local
authority;

(b) make provision for conferring on a relevant local authority in relation
to its area a function corresponding to a function that a public authority
45has in relation to another area.

(2) Regulations under subsection (1) may include further provision about the
exercise of the function including—

(a) provision for the function to be exercisable by the public authority or
relevant local authority subject to conditions or limitations specified in
5the regulations;

(b) provision as to joint working arrangements between the relevant local
authority and public authority in connection with the function (for
example, provision for the function to be exercised by a joint
committee).

(3) 10The provision that may be included in regulations under subsection (1)(a)
includes, in particular, provision—

(a) for the relevant local authority to have the function instead of the public
authority,

(b) for the function to be exercisable by the relevant local authority
15concurrently with the public authority,

(c) for the function to be exercisable by the relevant local authority and the
public authority jointly, or

(d) for the function to be exercisable by the relevant local authority jointly
with the public authority but also continue to be exercisable by the
20public authority alone.

(4) Regulations under subsection (1)(a) may, in particular, include—

(a) provision for the making of a scheme to transfer property, rights and
liabilities from the public authority to the relevant local authority
(including provision corresponding to any provision made by section
2517(4) to (7) of the Localism Act 2011);

(b) provision to abolish the public authority in a case where, as a result of
the regulations, it will no longer have any functions.

(5) Regulations under this section may not provide for a regulatory function that
is exercisable by a public authority in relation to the whole of England to be
30exercisable by a relevant local authority in relation to its area if the regulated
function is itself exercisable by the relevant local authority by virtue of
regulations under this section.

(6) In this section—

• “function” (except in subsection (4)(b)) does not include a power to make
  35regulations or other instruments of a legislative character;

• “Minister of the Crown” has the same meaning as in the Ministers of the
  Crown Act 1975;

• “public authority” includes a Minister of the Crown or a government
  department;

• 40“regulated function” means the function of carrying out an activity to
  which a regulatory function relates;

• “regulatory function” has the meaning given by section 32 of the
  Legislative and Regulatory Reform Act 2006;

• “relevant local authority” means a county council in England or a district
  45council.

18 Section 17: procedure etc.

(1) The Secretary of State may make regulations under section 17 only if—

(a) the relevant local authority consents, and

(b) the Secretary of State considers that the making of the regulations is
likely to improve the exercise of statutory functions in the local
authority’s area.

(2) The power to make regulations under section 17—

(a) 5is exercisable by statutory instrument;

(b) includes power to make transitional, transitory or saving provision;

(c) may, in particular, be exercised by amending, repealing, revoking or
otherwise modifying any provision made by or under an Act whenever
passed or made.

(3) 10A statutory instrument containing regulations under section 17 may be made
only if a draft of the instrument has been laid before each House of Parliament
and approved by a resolution of each House.

(4) At the same time as laying a draft of a statutory instrument containing
regulations under section 17 before Parliament, the Secretary of State must lay
15before Parliament a report explaining the effect of the regulations and why the
Secretary of State considers it appropriate to make the regulations.

(5) The report must include—

(a) a description of any consultation taken into account by the Secretary of
State,

(b) 20information about any representations considered by the Secretary of
State in connection with the regulations, and

(c) any other evidence or contextual information that the Secretary of State
considers it appropriate to include.

(6) If a draft of regulations under section 17 would, apart from this subsection, be
25treated for the purposes of the standing orders of either House of Parliament
as a hybrid instrument, it is to proceed in that House as if it were not a hybrid
instrument.

19 Devolving health service functions

Notwithstanding the provisions in sections 8, 17 and 18 enabling the Secretary
30of State to transfer health service functions to combined authorities or other
public bodies, the Secretary of State responsible for the health service—

(a) must remain able to fulfil all statutory duties placed on him under
health service legislation in force at the time of transfer;

(b) must not transfer health service regulatory or supervisory functions
35vested in national bodies responsible for such functions; and

(c) must ensure that authorities or bodies to whom health service functions
are transferred adhere to the national service standards and the
national information and accountability obligations placed on all
health service bodies responsible for functions of the kind being
40transferred.

20 Governance arrangements for local government: entitlement to vote

In section 2 of the Representation of the People Act 1983 (local government
electors), in subsection (1)(d) for “18” substitute “16”.

21 Referendums to undo change to mayor and cabinet executive

In the Local Government Act 2000, omit section 9NA (effect of section 9N
order).

Final provisions

22 5Minor and consequential amendments

(1) Schedule 4 contains minor and consequential amendments.

(2) The Secretary of State may by regulations make provision that is consequential
on any provision of this Act.

(3) The power to make regulations under this section—

(a) 10is exercisable by statutory instrument;

(b) includes power to make transitional, transitory or saving provision;

(c) may, in particular, be exercised by amending, repealing, revoking or
otherwise modifying any provision made by or under an Act passed
before this Act or in the same Session.

(4) 15A statutory instrument containing regulations under this section that amend or
repeal any provision of an Act (whether alone or with other provision) may be
made only if a draft of the instrument has been laid before each House of
Parliament and approved by a resolution of each House.

(5) Any other statutory instrument containing regulations under this section is
20subject to annulment in pursuance of a resolution of either House of
Parliament.

23 Extent

This Act extends to England and Wales only.

24 Commencement

(1) 25This section, and sections 23 and 25, come into force on the day on which this
Act is passed.

(2) The other provisions of this Act—

(a) so far as is necessary for the purpose of enabling the exercise, on or after
the day on which this Act is passed, of any power to make provision by
30order or regulations made by statutory instrument, come into force on
the day on which this Act is passed, and

(b) come into force for remaining purposes, at the end of the period of two
months beginning with the day on which this Act is passed.

(3) The Secretary of State may by regulations make saving, transitory or
35transitional provision in connection with the coming into force of any
provision of this Act.

(4) Regulations under this section—

(a) are to be made by statutory instrument;

(b) may make different provision for different purposes.