Cities and Local Government Devolution Bill (HC Bill 64)

Cities and Local Government Devolution BillPage 30

(4) The order may provide for the mayor to be treated as a police and
crime commissioner for the purposes of any police and crime
commissioner enactment.

(5) “Police and crime commissioner enactment” means—

(a) 5any enactment that is contained in, or is made under, Part
1 of the 2011 Act, and

(b) any other enactment that has effect in relation to police and
crime commissioners.

(6) In sub-paragraph (5) “enactment” includes an enactment
10whenever passed or made.

(7) Power to make an order under this paragraph is in addition to
(and does not limit) the power to make an order under section 114.

(8) An order under this Schedule may relate to—

(a) a particular mayor in respect of whom an order under
15section 107E(1) has effect, or

(b) all mayors in respect of whom any such order has effect.”

Section 9

SCHEDULE 3 Overview and scrutiny committees and audit committees

This is the Schedule to be inserted as Schedule 5A to the Local Democracy,
20Economic Development and Construction Act 2009—

“Schedule 5A Combined authorities: overview and scrutiny committees and audit
committees

Functions of overview and scrutiny committee

1 (1) A combined authority must arrange for the appointment by the
25authority of one or more committees of the authority (referred to
in this Schedule as overview and scrutiny committees).

(2) The arrangements must ensure that the combined authority’s
overview and scrutiny committee has power (or its overview and
scrutiny committees have power between them)—

(a) 30to review or scrutinise decisions made, or other action
taken, in connection with the discharge of any functions
which are the responsibility of the authority;

(b) to make reports or recommendations to the authority with
respect to the discharge of any functions that are the
35responsibility of the authority;

(c) to make reports or recommendations to the authority on
matters that affect the authority’s area or the inhabitants of
the area.

(3) If the combined authority is a mayoral combined authority, the
40arrangements must also ensure that the combined authority’s

Cities and Local Government Devolution BillPage 31

overview and scrutiny committee has power (or its overview and
scrutiny committees have power between them)—

(a) to review or scrutinise decisions made, or other action
taken, in connection with the discharge by the mayor of
5any general functions;

(b) to make reports or recommendations to the mayor with
respect to the discharge of any general functions;

(c) to make reports or recommendations to the mayor on
matters that affect the authority’s area or the inhabitants of
10the area.

(4) The power of an overview and scrutiny committee under sub-
paragraph (2)(a) and (3)(a) to review or scrutinise a decision made
but not implemented includes—

(a) power to direct that a decision is not to be implemented
15while it is under review or scrutiny by the overview and
scrutiny committee, and

(b) power to recommend that the decision be reconsidered.

(5) An overview and scrutiny committee must publish details of how
it proposes to exercise its powers in relation to the review and
20scrutiny of decisions made but not yet implemented and its
arrangements in connection with the exercise of those powers.

(6) Before complying with sub-paragraph (5) an overview and
scrutiny committee must obtain the consent of the combined
authority to the proposals and arrangements.

(7) 25An overview and scrutiny committee of a combined authority
may not discharge any functions other than the functions
conferred by or under this Schedule.

(8) Any reference in this Schedule to the discharge of any functions
includes a reference to the doing of anything which is calculated
30to facilitate, or is conducive or incidental to, the discharge of those
functions.

Overview and scrutiny committees: supplementary provision

2 (1) An overview and scrutiny committee of a combined authority—

(a) may appoint one or more sub-committees, and

(b) 35may arrange for the discharge of any of its functions by any
such sub-committee.

(2) A sub-committee of an overview and scrutiny committee may not
discharge any functions other than those conferred on it under
sub-paragraph (1)(b).

(3) 40An overview and scrutiny committee of a combined authority
may not include a member of the authority (including, in the case
of a mayoral combined authority, the mayor for the authority’s
area or deputy mayor).

(4) An overview and scrutiny committee of a combined authority is to
45be treated as a committee or sub-committee of a principal council
for the purposes of Part 5A of the Local Government Act 1972

Cities and Local Government Devolution BillPage 32

(access to meetings and documents of certain authorities,
committees and sub-committees).

(5) Subsections (2) to (5) of section 102 of the Local Government Act
1972 apply to an overview and scrutiny committee of a combined
5authority as they apply to a committee appointed under that
section.

(6) An overview and scrutiny committee of a combined authority—

(a) may require the members or officers of the authority to
attend before it to answer questions (including, in the case
10of a mayoral combined authority, the mayor for the
authority’s area and deputy mayor), and

(b) may invite other persons to attend meetings of the
committee.

(7) A person on whom a requirement is imposed under sub-
15paragraph (6)(a) is required to comply with the requirement.

(8) A person is not obliged by sub-paragraph (6) to answer any
question which the person would be entitled to refuse to answer
in or for the purposes of proceedings in a court in England and
Wales.

(9) 20In exercising, or deciding whether to exercise, any of its functions
an overview and scrutiny committee of a combined authority
must have regard to any guidance for the time being issued by the
Secretary of State.

(10) Guidance under sub-paragraph (9) may make different provision
25for different cases or for different descriptions of committee.

(11) In sub-paragraphs (3) to (9) references to an overview and scrutiny
committee of a combined authority include references to any sub-
committee of such a committee.

Power to make further provision about overview and scrutiny committees

3 (1) 30The Secretary of State may by order make further provision about
overview and scrutiny committees of a combined authority.

(2) Provision under sub-paragraph (1) may in particular include
provision—

(a) about the membership of an overview and scrutiny
35committee and the voting rights of such members;

(b) about the person who is to be chair of such a committee;

(c) for the appointment of a person to act as a scrutiny officer
of an overview and scrutiny committee;

(d) about how and by whom matters may be referred to an
40overview and scrutiny committee;

(e) requiring persons (whether members of the authority or
other persons) to respond to reports or recommendations
made by an overview and scrutiny committee;

(f) about the publication of reports, recommendations or
45responses;

Cities and Local Government Devolution BillPage 33

(g) about information which must, or must not, be disclosed to
an overview and scrutiny committee (whether by
members of the authority or by other persons);

(h) as to the minimum or maximum period for which a
5direction under paragraph 1(4)(a) may have effect.

(3) Provision must be made under sub-paragraph (2)(a) so as to
ensure that the majority of members of an overview and scrutiny
committee are members of the combined authority’s constituent
councils.

(4) 10Provision must be made under sub-paragraph (2)(b) so as to
ensure that the chair of an overview and scrutiny committee is—

(a) an independent person (as defined by the order), or

(b) an appropriate person who is a member of one of the
combined authority’s constituent councils.

(5) 15For the purposes of sub-paragraph (4)(b) “appropriate person”—

(a) in relation to a mayoral combined authority, means a
person who is not a member of a registered political party
of which the mayor is a member, and

(b) in relation to any other combined authority, means a
20person who is not a member of the registered political
party which has the most representatives among the
members of the constituent councils (or, if there is no such
party because two or more parties have the same number
of representatives, is not a member of any of those parties).

(6) 25In sub-paragraph (2)(c) the reference to a “scrutiny officer” of an
overview and scrutiny committee is a reference to a person
appointed with the function of—

(a) promoting the role of the committee, and

(b) providing support and guidance—

(i) 30to the committee and its members, and

(ii) to members of the combined authority (so far as
relating to the functions of the committee).

(7) Provision under sub-paragraph (2)(f) may include provision for
descriptions of confidential or exempt information to be excluded
35from the publication of reports, recommendations or responses.

(8) In this paragraph—

  • “constituent council”, in relation to a combined authority,
    means—

    (a)

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

    (b)

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

  • “registered political party” means a party registered under
    Part 2 of the Political Parties, Elections and Referendums
    45Act 2000.

(9) In this paragraph references to an overview and scrutiny
committee include references to any sub-committee of such a
committee.

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Audit committees

4 (1) A combined authority must arrange for the appointment by the
authority of an audit committee.

(2) The functions of the audit committee are to include—

(a) 5reviewing and scrutinising the authority’s financial affairs,

(b) reviewing and assessing the authority’s risk management,
internal control and corporate governance arrangements,

(c) reviewing and assessing the economy, efficiency and
effectiveness with which resources have been used in
10discharging the authority’s functions, and

(d) making reports and recommendations to the combined
authority in relation to reviews conducted under
paragraphs (a), (b) and (c).

(3) The Secretary of State may by order make provision about—

(a) 15the membership of a combined authority’s audit
committee;

(b) the appointment of the members.

(4) Provision must be made under sub-paragraph (3) so as to ensure
that at least one member of an audit committee is an independent
20person (as defined by the order).”

Section 22

SCHEDULE 4 Minor and consequential amendments

Local Government Finance Act 1988

1 In section 143 of the Local Government Finance Act 1988 (orders and
25regulations), after subsection (4A) insert—

(4B) The power to make regulations under section 74 above, so far as they
are made in relation to a combined authority by virtue of subsection
(8) of that section, shall be exercisable by statutory instrument, and
no such regulations shall be made unless a draft of them has been
30laid before and approved by a resolution of each House of
Parliament.”

Local Democracy, Economic Development and Construction Act 2009

2 The Local Democracy, Economic Development and Construction Act 2009 is
amended as follows.

3 35In section 91 (exercise of local authority functions), in subsection (1), after
“an area” insert “all or part of which is”.

4 In section 104 (constitution and functions: transport), after subsection (2)

Cities and Local Government Devolution BillPage 35

insert—

(2A) But in relation to a mayoral combined authority, section 85(4) of that
Act is not to be taken as preventing the mayor from being a voting
member of the authority.

(2B) 5An order under subsection (1)(c) may include provision for a
function exercisable by a local authority in relation to an area all or
part of which is comprised in the combined authority’s area to be
exercisable by the combined authority in relation to the combined
authority’s area.”

5 10In section 106 (changes to boundaries of combined authority’s area), in
subsection (2)—

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

(b) in paragraph (b), after “order” insert , and

(c) in the case of an order made in respect of a mayoral
15combined authority, the mayor for the area of the
authority also consents to the making of the order.”

6 (1) Section 107 (dissolution of combined authority’s area) is amended as
follows.

(2) In subsection (2)—

(a) 20for “only if a majority” substitute only if—

(a) a majority”;

(b) after “the order” insert , and

(b) in the case of an order made in respect of a mayoral
combined authority, the mayor for the area of the
25authority also consents to the making of the order.”

(3) After subsection (4) insert—

(4A) The order—

(a) may transfer functions from the combined authority to any
other public authority;

(b) 30may provide for any function of the combined authority to no
longer be exercisable in relation to the combined authority’s
area.”

7 In section 111 (review by authorities: existing combined authority), in
subsection (3)(a), for “any of sections 104 to 107” substitute “section 104, 105,
35106 or 107”.

8 In section 112 (preparation and publication of scheme: existing combined
authority), in subsection (1), for “sections 104 to 107” substitute “sections
104, 105, 106 and 107”.

9 In section 113A (general power of EPB or combined authority), after
40subsection (3) insert—

(4) This section does not apply in relation to a combined authority in
respect of which an order under section 113D has effect.”

10 (1) Section 114 (incidental etc. provision) is amended as follows.

(2) Omit subsection (2).

Cities and Local Government Devolution BillPage 36

(3) In subsection (3), for “by virtue of subsection (2)” substitute “in an order
under this section by virtue of section 117(5)”.

11 (1) Section 117 (orders) is amended as follows.

(2) After subsection (1) insert—

(1A) 5An order under this Part may make different provision for different
authorities or descriptions of authority or otherwise for different
purposes.”

(3) After subsection (4) insert—

(5) An order under any provision of this Part, other than an order under
10section 116 or an order mentioned in subsection (2A)(a) or (b), may
include provision amending, applying (with or without
modifications), disapplying, repealing or revoking any enactment
whenever passed or made.”

12 (1) In section 120 (interpretation)—

(a) 15after the definition of “combined authority” insert—

  • ““deputy mayor” has the meaning given by section
    107C(7);

  • “general functions” has the meaning given by section
    107D(2);”;

(b) 20after the definition of “local government area” insert—

  • ““mayor”, in relation to the area of a combined
    authority, means the mayor for the area of the
    authority by virtue of an order under section 107A(1);

  • “mayoral combined authority” has the meaning given
    25by section 107A(9);

  • “PCC functions” has the meaning given by section
    107E(3);”.

Localism Act 2011

13 The Localism Act 2011 is amended as follows.

14 (1) 30Section 15 (power to transfer local public functions to permitted authorities)
is amended as follows.

(2) In subsection (1)—

(a) in paragraph (a), for “a permitted authority” substitute “an EPB”;

(b) in paragraph (b), for “permitted authorities” substitute ““EPBs”.

(3) 35Omit subsection (4).

(4) In subsections (6) and (7), for “permitted authority” substitute “EPB”.

(5) In subsection (8), for “a permitted authority” substitute “an EPB”.

15 In section 17 (transfer schemes), in subsection (1), for “permitted authority”
substitute “EPB”.

16 (1) 40Section 18 (duty to consider proposals for exercise of powers under sections
15 and 17) is amended as follows.

(2) In subsection (1)—

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(a) for “a permitted authority” substitute “an EPB”;

(b) in paragraph (b), for “permitted authority” substitute “EPB”.

(3) In subsection (3), in paragraph (a), for “permitted authority” substitute
EPB”.

17 5In section 20 (interpretation) at the appropriate place insert—

  • ““EPB” means an economic prosperity board established under
    section 88 of the Local Democracy, Economic Development
    and Construction Act 2009;”.