Digital Economy Bill (HC Bill 87)

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(b) in subsection (1)(b) for “may prepare an alteration to that code”
substitute “in either case, may prepare an alteration to the code”;

(c) in subsection (4) after “52A” insert “or 52AA”;

(d) in subsection (5) for “means the code” substitute “and “the direct
5marketing code” mean the codes respectively prepared under sections
52A and 52AA and”.

(7) In section 52D (publication of code) in subsection (1) for “the code” substitute
“any code”.

(8) In section 52E (effect of code)—

(a) 10in subsection (1) after “data-sharing code” insert “or the direct
marketing code”;

(b) in subsection (2) for “The data-sharing code is” substitute “Those codes
are”;

(c) in subsection (3) for “the data-sharing code” substitute “those codes”;

(d) 15in subsection (3)(a) after “Act” insert “or the Privacy and Electronic
Communications (EC Directive) Regulations 2003 (S.I. 2003/2426S.I. 2003/2426)”;

(e) in subsection (3)(c) after “Act” insert “or those Regulations”;

(f) in subsection (4) for “means the code” substitute “and “the direct
marketing code” mean the codes respectively prepared under sections
2052A and 52AA and”.

Other provisions relating to OFCOM

80 OFCOM and Northern Ireland

(1) Section 1 of the Office of Communications Act 2002 (the Office of
Communications) is amended as follows.

(2) 25In subsection (3), before paragraph (b) insert—

(ac) a member appointed by the Minister for the Economy in
Northern Ireland;”.

(3) Before subsection (4) insert—

(3C) Before appointing a member under subsection (3)(ac) the Minister for
30the Economy must consult the Secretary of State.”

(4) In subsection (5) in the words before paragraph (a), before “and (b),” insert
“, (ac)”.

(5) At the end insert—

(13) Paragraphs 1 and 2 of the Schedule apply in relation to the appointment
35made under subsection (3)(ac) as if—

(a) any reference to the Secretary of State were to the Minister for
the Economy, and

(b) at the end of paragraph 2 there were inserted—

(9) Before the Minister for the Economy removes a person from
40office the Minister must consult the Secretary of State.””

(6) The Schedule to the Office of Communications Act 2002 is amended as follows.

(7) In paragraph 11 (accounts and audit)—

Digital Economy BillPage 81

(a) in sub-paragraph (3)(c) at the end insert “and the Minister for the
Economy in Northern Ireland”;

(b) at the end insert—

(6) The Minister for the Economy in Northern Ireland shall lay a
5copy of the statement and report sent to the Minister under
sub-paragraph (3) before the Northern Ireland Assembly.”

(8) In paragraph 12 (annual report)—

(a) in sub-paragraph (1) before “a report” insert “and the Minister for the
Economy in Northern Ireland”;

(b) 10at the end insert—

(6) The Minister for the Economy in Northern Ireland shall lay a
copy of every report sent to the Minister under this
paragraph before the Northern Ireland Assembly.”

(9) The following provisions of section 44 of the Northern Ireland Act 1998 (power
15of Assembly to call for witnesses and documents: limitation by reference to
transferred matters etc) do not apply in relation to requirements imposed in
connection with the discharge of the functions of the Office of Communications
in relation to Northern Ireland—

(a) the words after paragraph (b) in subsection (1);

(b) 20subsections (2), (3) and (5)(b).

81 Retention by OFCOM of amounts paid under Wireless Telegraphy Act 2006

(1) The Communications Act 2003 is amended as follows.

(2) In section 400(4)(c) (destination of fees and penalties: account for financial
year), for the words from “of principles” to “subsection (4)” substitute “under
25section 401 for meeting the costs set out in the statement in accordance with
subsection (1)(b)”.

(3) In section 401 (retention of amounts by OFCOM), for subsection (1)
substitute—

(1) OFCOM have power to make a statement setting out—

(a) 30the principles under which they may retain any or all of the
amounts paid to them—

(i) in pursuance of obligations imposed by or under
Chapter 1 or 2 of Part 2 of the Wireless Telegraphy Act
2006;

(ii) 35in respect of fees charged under section 53D of that Act,
and

(b) the costs in respect of which the amounts may be retained
(which may include costs other than those incurred in the
exercise of their functions under those provisions).”

(4) 40In subsection (2) of that section, omit “of principles”.

(5) For subsections (3) to (5) of that section substitute—

(3) The provision contained in a statement made by OFCOM under this
section must be such as appears to them likely to secure, on the basis of
such estimates of the likely costs as it is practicable to make, that the

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amounts retained by OFCOM are objectively justifiable and
proportionate to the costs in respect of which they are retained.”

(6) In subsection (6) of that section, omit “the principles contained in”.

(7) In subsection (7) of that section, for “of carrying out the functions mentioned in
5subsection (4) of this section” substitute “set out in the statement in accordance
with subsection (1)(b)”.

(8) In subsection (8) of that section, omit “of principles”.

(9) In subsection (10) of that section, after “Treasury” insert “and the Secretary of
State”.

(10) 10For the heading to that section substitute “Retention by OFCOM of amounts
paid under Wireless Telegraphy Act 2006”.

82 International recognition of satellite frequency assignments: power of
OFCOM to charge fees

(1) The Communications Act 2003 is amended as follows.

(2) 15After section 28 (general power of OFCOM to charge for services), and before
the cross-heading following that section, insert—

28A International recognition of satellite frequency assignments: power to
charge fees

(1) This section applies where functions conferred on OFCOM under
20section 22 include functions of the administration of the United
Kingdom under the ITU Radio Regulations.

(2) OFCOM may require any person to pay them a fee for doing satellite
filing work at the request of that person.

(3) In this section “satellite filing work” means anything connected with
25obtaining or maintaining international recognition under the ITU
Radio Regulations of assignments (or changes in assignments) of radio
frequencies to stations in satellite systems or satellite networks.

(4) OFCOM may vary from time to time the amount of any fee set by them
under this section.

(5) 30OFCOM may not require a person to pay a fee under this section unless
they have taken such steps as they consider appropriate to bring the
fact that they charge the fee, and the amount of the fee, to the attention
of those persons who, in their opinion, are likely to be required to pay it.

(6) As soon as reasonably practicable after the end of each reporting year,
35OFCOM must publish a statement setting out—

(a) the aggregate amount of the fees charged under this section that
have been received by OFCOM during that year;

(b) the aggregate amount of the fees charged under this section
during that year which remain outstanding and are likely to be
40paid or recovered; and

(c) the total cost to OFCOM of doing the requested satellite filing
work they have done during that year.

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(7) If the total of the amounts set out in a statement under subsection (6)(a)
and (b) exceeds the total cost set out under subsection (6)(c), OFCOM
must take this into account with a view to securing that the aggregate
amount of fees charged under this section in the following reporting
5year does not exceed the likely total cost to them of doing requested
satellite filing work during that year.

(8) In this section—

  • “administration”, “assignment” (of a radio frequency), “station”,
    “satellite system” and “satellite network” have the same
    10meanings as in the ITU Radio Regulations;

  • “reporting year” means—

    (a)

    the period beginning with the coming into force of this
    section and ending with the next 31st March, or

    (b)

    any subsequent period of twelve months beginning
    15with 1st April;

  • “the ITU Radio Regulations” means the radio regulations of the
    International Telecommunication Union.”

(3) In section 38 (annual administrative charge), after subsection (11) insert—

(11A) For the purposes of this section, the cost to OFCOM of carrying out the
20functions mentioned in subsection (5) does not include the cost to
OFCOM of doing anything for which they charge a fee under section
28A.”

(4) Section 28A(2) and (6)(c) of the Communications Act 2003, inserted by
subsection (2), does not apply to any satellite filing work if OFCOM received
25the request to do that work before the coming into force of that section.

Payment and securities settlement systems

83 Power to apply settlement finality regime to payment institutions

In Part 24 of the Financial Services and Markets Act 2000 (insolvency) after
section 379 insert—

30“Settlement finality
379A Power to apply settlement finality regime to payment institutions

(1) The Treasury may by regulations made by statutory instrument
provide for the application to payment institutions, as participants in
payment or securities settlement systems, of provision in subordinate
35legislation—

(a) modifying the law of insolvency or related law in relation to
such systems, or

(b) relating to the securing of rights and obligations.

(2) “Payment institution” means—

(a) 40an authorised payment institution or small payment institution
within the meaning of the Payment Services Regulations 2009
(S.I. 2009/209S.I. 2009/209), or

(b) a person whose head office, registered office or place of
residence, as the case may be, is outside the United Kingdom

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and whose functions correspond to those of an institution
within paragraph (a).

(3) “Payment or securities settlement system” means arrangements
between a number of participants for or in connection with the clearing
5or execution of instructions by participants relating to any of the
following—

(a) the placing of money at the disposal of a recipient;

(b) the assumption or discharge of a payment obligation;

(c) the transfer of the title to, or an interest in, securities.

(4) 10“Subordinate legislation” has the same meaning as in the Interpretation
Act 1978.

(5) Regulations under this section may—

(a) make consequential, supplemental or transitional provision;

(b) amend subordinate legislation.

(6) 15A statutory instrument containing regulations under this section is
subject to annulment in pursuance of a resolution of either House of
Parliament.”

84 Bank of England oversight of payment systems

Schedule 4 extends Part 5 of the Banking Act 2009 (Bank of England oversight
20of inter-bank payment systems) to other payment systems; and makes
consequential provision.

Qualifications in information technology

85 Qualifications in information technology: payment of tuition fees

(1) The Apprenticeships, Skills, Children and Learning Act 2009 is amended as
25follows.

(2) In section 88(1) (qualifications for persons aged 19 or over: payment of tuition
fees), for “1(a) or (b)” substitute “1(a), (b) or (ba)”.

(3) In paragraph 1 of Schedule 5 (qualifications for persons aged 19 or over), after
paragraph (b) insert—

(ba) 30a specified qualification in making use of information
technology;”.

(4) After paragraph 5 of that Schedule insert—

“Power to specify qualification in information technology

5A The level of attainment demonstrated by a specified qualification in
35making use of information technology must be the level which, in the
opinion of the Secretary of State, is the minimum required in that
respect by persons aged 19 or over in order to be able to operate
effectively in day-to-day life.”

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Part 7 General

86 Financial provisions

The following are to be paid out of money provided by Parliament—

(a) 5any expenditure incurred under or by virtue of this Act by a Minister
of the Crown, a person holding office under Her Majesty or a
government department, and

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

87 10Commencement

(1) The following come into force on the day on which this Act is passed—

(a) section 75;

(b) section 83;

(c) sections 86, 88 and 89;

(d) 15this section.

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

(a) section 1;

(b) section 2;

(c) 20section 3;

(d) section 7;

(e) sections 10 to 14;

(f) sections 69 to 73;

(g) sections 77 and 79

(h) 25section 84 and Schedule 4.

(3) Section 76 comes into force on 1 June 2020.

(4) Part 5, except sections 38 and 39, comes into force on whatever day the
Secretary of State or the Minister for the Cabinet Office appoints by regulations
made by statutory instrument.

(5) 30The other provisions of this Act come into force on whatever day the Secretary
of State appoints by regulations made by statutory instrument.

(6) Different days may be appointed for different purposes.

88 Extent

(1) This Act extends to England and Wales, Scotland and Northern Ireland, subject
35to the following provisions of this section.

(2) Sections 30 and 31 extend to England and Wales and Scotland only;

(3) In section 38—

(a) subsections (4) and (5) (and, so far as it relates to them, subsection (2))
of the new section 19AB inserted in the Registration Service Act 1953
40extend to England and Wales, Scotland and Northern Ireland, but

Digital Economy BillPage 86

(b) subject to that, the amendments and repeals made to that Act extend to
England and Wales only.

(4) Section 85 extends to England and Wales only.

(5) Section 47 of the Registered Designs Act 1949 (application to Isle of Man)
5applies to section 27 as it applies to that Act.

(6) An amendment of the following enactments made by this Act may be extended
to any of the Channel Islands or the Isle of Man under the relevant extending
power—

(a) Part 1 of the Copyright, Designs and Patents Act 1988;

(b) 10the Broadcasting Act 1990;

(c) the Broadcasting Act 1996;

(d) the Communications Act 2003;

(e) the Wireless Telegraphy Act 2006.

(7) “Relevant extending power” means—

(a) 15in relation to amendments of Part 1 of the Copyright, Designs and
Patents Act 1988, section 157(2) of that Act;

(b) in relation to amendments of the Broadcasting Act 1990, section 204(6)
of that Act;

(c) in relation to amendments of the Broadcasting Act 1996, section 150(4)
20of that Act;

(d) in relation to amendments of the Communications Act 2003, section
411(6) of that Act;

(e) in relation to amendments of the Wireless Telegraphy Act 2006, section
118(3) of that Act.

(8) 25The power conferred by section 157(2)(c) of the Copyright, Designs and Patents
Act 1988 (power to extend to British overseas territories) is exercisable in
relation to any amendment made by this Act to Part 1 of that Act.

(9) Her Majesty may by Order in Council extend sections 15 to 25, with such
modifications as appear to Her Majesty in Council to be appropriate, to any of
30the Channel Islands or to the Isle of Man.

(10) The power to make an Order in Council under subsection (9) includes power—

(a) to make different provision for different cases (including different
provision in respect of different areas);

(b) to make provision subject to such exemptions and exceptions as Her
35Majesty in Council thinks fit; and

(c) to make such incidental, supplemental, consequential and transitional
provision as Her Majesty in Council thinks fit.

89 Short title

This Act may be cited as the Digital Economy Act 2016.

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SCHEDULES

Section 4

SCHEDULE 1 The electronic communications code

This is the Schedule to be inserted before Schedule 4 to the Communications
5Act 2003—

Section 106

“Schedule 3A The electronic communications code

Part 1 Key concepts

Introductory

1 (1) 10This Part defines some key concepts used in this code.

(2) For definitions of other terms used in this code, see—

(a) paragraph 94 (meaning of “the court”).

(b) paragraph 105 (meaning of “occupier”),

(c) paragraph 108 (general interpretation),

(d) 15section 32 (meaning of electronic communications
networks and services), and

(e) section 405 (general interpretation).

The operator

2 In this code “operator” means—

(a) 20where this code is applied in any person’s case by a
direction under section 106, that person, and

(b) where this code applies by virtue of section 106(3)(b), the
Secretary of State or (as the case may be) the Northern
Ireland department in question.

25The code rights

3 For the purposes of this code a “code right”, in relation to an
operator and any land, is a right for the statutory purposes—

(a) to install electronic communications apparatus on, under
or over the land,

(b) 30to keep installed electronic communications apparatus
which is on, under or over the land,

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(c) to inspect, maintain, adjust, alter, repair, upgrade or
operate electronic communications apparatus which is on,
under or over the land,

(d) to carry out any works on the land for or in connection
5with the installation of electronic communications
apparatus on, under or over the land or elsewhere,

(e) to carry out any works on the land for or in connection
with the maintenance, adjustment, alteration, repair,
upgrading or operation of electronic communications
10apparatus which is on, under or over the land or
elsewhere,

(f) to enter the land to inspect, maintain, adjust, alter, repair,
upgrade or operate any electronic communications
apparatus which is on, under or over the land or
15elsewhere,

(g) to connect to a power supply,

(h) to interfere with or obstruct a means of access to or from
the land (whether or not any electronic communications
apparatus is on, under or over the land), or

(i) 20to lop or cut back, or require another person to lop or cut
back, any tree or other vegetation that interferes or will or
may interfere with electronic communications apparatus.

The statutory purposes

4 In this code “the statutory purposes”, in relation to an operator,
25means—

(a) the purposes of providing the operator’s network, or

(b) the purposes of providing an infrastructure system.

Electronic communications apparatus, lines and structures

5 (1) In this code “electronic communications apparatus” means—

(a) 30apparatus designed or adapted for use in connection with
the provision of an electronic communications network,

(b) apparatus designed or adapted for a use which consists of
or includes the sending or receiving of communications or
other signals that are transmitted by means of an electronic
35communications network,

(c) lines, and

(d) other structures or things designed or adapted for use in
connection with the provision of an electronic
communications network.

(2) 40References to the installation of electronic communications
apparatus are to be construed accordingly.

(3) In this code—

  • “line” means any wire, cable, tube, pipe or similar thing
    (including its casing or coating) which is designed or
    45adapted for use in connection with the provision of any
    electronic communications network or electronic
    communications service;

  • Digital Economy BillPage 89

  • “structure” includes a building only if the sole purpose of that
    building is to enclose other electronic communications
    apparatus.

The operator’s network

6 5In this code “network” in relation to an operator means—

(a) if the operator falls within paragraph 2(a), so much of any
electronic communications network or infrastructure
system provided by the operator as is not excluded from
the application of the code under section 106(5), and

(b) 10if the operator falls within paragraph 2(b), the electronic
communications network which the Secretary of State or
the Northern Ireland department is providing or
proposing to provide.

Infrastructure system

7 (1) 15In this code “infrastructure system” means a system of
infrastructure provided so as to be available for use by providers
of electronic communications networks for the purposes of the
provision by them of their networks.

(2) References in this code to provision of an infrastructure system
20include references to establishing or maintaining such a system.

Part 2 Conferral of code rights and their exercise

Introductory

8 This Part of this code makes provision about—

(a) 25the conferral of code rights,

(b) the persons who are bound by code rights, and

(c) the exercise of code rights.

Who may confer code rights?

9 A code right in respect of land may only be conferred on an
30operator by an agreement between the occupier of the land and
the operator.

Who else is bound by code rights?

10 (1) This paragraph applies if, in accordance with this Part, a code right
is conferred on an operator in respect of land by a person (“O”)
35who is the occupier of the land when the code right is conferred.

(2) If O has an interest in the land when the code right is conferred,
the code right also binds—

(a) the successors in title to that interest,

(b) a person with an interest in the land that is created after the
40right is conferred and is derived (directly or indirectly) out
of—