27 Short title

This Act may be cited as the Bus Services Act 2017.

SCHEDULES

Section 2

SCHEDULE 1 Further amendments: advanced quality partnership schemes

Transport Act 1985 (c. 67)Transport Act 1985 (c. 67)

1 5The Transport Act 1985 is amended as follows.

2 (1) Section 6 (registration of local services) is amended as follows.

(2) In subsection (2A), in paragraph (a)—

(a) after “section” insert “113D(1) or”;

(b) for “(quality” substitute “(advanced quality partnership schemes
10and quality”.

3 (1) Section 6A (applications for registration where restrictions are in force) is
amended as follows.

(2) In subsection (1), in paragraph (a)—

(a) after “section” insert “113D(1) or”;

(b) 15after “case of” insert “an advanced quality partnership scheme or”.

(3) In subsection (8), in paragraph (c), after “section” insert “113J(4) or (5) or”.

(4) In subsection (12)—

(a) at the appropriate place insert—

• “““advanced quality partnership scheme” means a
  20scheme under section 113C of the Transport Act
  2000;”;”

(b) for the definition of “registration criteria” substitute—

• “““registration criteria”—

  (a)

  in relation to an advanced quality partnership
  25scheme, means the criteria specified in the
  scheme by virtue of section 113D(3) of the
  Transport Act 2000;

  (b)

  in relation to a quality partnership scheme,
  means the criteria specified in the scheme by
  30virtue of section 114(3C) of the Transport Act
  2000;”;”

(c) in the definition of “relevant operator”, in paragraph (a), after
“section” insert “113J(4) or (5) or”.

4 In section 26 (conditions attached to a PSV operator’s licence), in subsection
35(1), in paragraph (b), after “section or section” insert “113J(4) or (5),”.

5 In section 82 (bus stations: restrictions on discriminatory practices, etc), in
subsection (4A), in the words before paragraph (a), after “to” insert “an
advanced quality partnership scheme or”.

Transport Act 2000 (c. 38)Transport Act 2000 (c. 38)

6 5The Transport Act 2000 (as amended by the Local Transport Act 2008) is
amended as follows.

7 (1) Section 114 (quality partnership schemes) is amended as follows.

(2) In subsection (1), at the end insert “(but this is subject to subsection (1A)).”

(3) After subsection (1) insert—

“(1A) 10A local transport authority whose area is in England may exercise the
power to make a quality partnership scheme only if—

(a) they are acting jointly with one or more other local transport
authorities, and

(b) at least one of those other local transport authorities is an
15authority whose area is in Wales.””

8 (1) Section 153 (competition test: functions and agreements relating to buses) is
amended as follows.

(2) In subsection (1), in paragraph (a), after “to” insert “advanced quality
partnership schemes,”.

(3) 20In subsection (3), in the definition of “voluntary agreement”, after “under”
insert “sections 113C to 113O (advanced quality partnership schemes), or
under”.

9 In section 155 (sanctions), in subsection (1), in paragraph (b), after “section”,
in the second place it occurs, insert “113J(4) or (5),”.

10 25In section 162 (interpretation of Part 2), in subsection (1), at the appropriate
place insert—

• “““advanced quality partnership scheme” is to be construed in
  accordance with section 113C(2),”.”

11 (1) Schedule 10 (competition test: functions and agreements relating to buses) is
30amended as follows.

(2) In paragraph 1 (functions to which Part 1 of Schedule 10 applies)—

(a) in sub-paragraph (1), before paragraph (a) insert—

“(za) making and varying advanced quality partnership
schemes,”;”

(b) 35in sub-paragraph (2), before paragraph (a) insert—

“(za) in the case of the function of making or varying an
advanced quality partnership scheme, once notice
of a proposal to make or vary it has been given
under section 113G(1),”.”

(3) 40In paragraph 12 (enforcement of decisions of Competition and Markets
Authority), in sub-paragraph (2)(b), after “varying” insert “an advanced
quality partnership scheme,”.

(4) In paragraph 17 (interpretation of Part 2 of Schedule 10), in sub-paragraph
(5)(c), at the beginning insert “an advanced quality partnership scheme,”.

Section 6

SCHEDULE 2 Further amendments: franchising schemes

5Transport Act 1985 (c. 67)Transport Act 1985 (c. 67)

1 The Transport Act 1985 is amended as follows.

2 In section 6 (registration of local services)—

(a) in subsection (2B) (registration in quality contract scheme cases), in
paragraph (a), after “force” insert “in relation to an area in Wales”;

(b) 10in subsection (7A) (variation of registration in quality contract
scheme cases), in paragraph (a), after “force” insert “in relation to an
area in Wales”.

3 (1) Section 26 (conditions attached to a PSV operator’s licence) is amended as
follows.

(2) 15In subsection (1) (circumstances in which conditions may be imposed), in
paragraph (b), after “118(4)” insert “, 123J(3)”.

(3) In subsection (1)(bza), after “section” insert “123X(7)(c),”.

(4) In subsection (1), after paragraph (ba) (and the “or” following it) insert—

“(baa) the operator has failed to take all reasonable steps to comply
20with a requirement imposed under section 143A of the
Transport Act 2000; or”.”

4 In section 66 (powers of councils to run bus undertakings), in subsection (1),
for “and to section” substitute “and to sections 123O and”.

Transport Act 2000 (c. 38)Transport Act 2000 (c. 38)

5 25The Transport Act 2000 (as amended by the Local Transport Act 2008) is
amended as follows.

6 In the heading preceding section 124, after “schemes” insert “in Wales”.

7 (1) Section 124 (quality contracts schemes) is amended as follows.

(2) In subsection (1), after “authority”, in the first place it occurs, insert “for an
30area in Wales”.

(3) Omit subsections (1A) and (1B).

(4) In subsection (2)—

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

(b) in paragraph (b), omit “in the case of a scheme for an area in Wales,”;

(c) 35omit paragraph (c) and the “and” preceding it.

(5) Omit subsection (2A).

(6) In subsection (9)—

(a) after “authority”, in the first place it occurs, insert “for an area in
Wales”;

(b) after “another” insert “such”.

(7) Omit subsection (9A).

(8) 5Omit subsections (11) to (13).

8 In section 125 (notice and consultation requirements)—

(a) in subsection (1)—

(i) at the end of paragraph (b), insert “and”;

(ii) omit paragraph (d) and the “and” preceding it;

(b) 10in subsection (1A)(b), omit “or, as the case may be, (1A)”;

(c) in subsection (3)(e), omit “if the proposed scheme relates to an area
in Wales,”.

9 In section 126 (approval of proposed schemes for areas in Wales), omit
subsection (A1).

10 15Omit sections 126A to 126E (QCS boards for schemes for areas in England).

11 In section 127 (making of scheme)—

(a) in subsection (1), omit paragraph (a);

(b) in subsection (1)(b), omit “in the case of a scheme for an area in
Wales,”;

(c) 20omit subsection (1A);

(d) in subsection (1B), omit paragraph (a) and the “and” following it;

(e) in subsection (10), omit “(1A),”.

12 Omit sections 127A and 127B (appeals: schemes for areas in England).

13 In section 131A (continuation of schemes for further periods)—

(a) 25in subsection (2)—

(i) in paragraph (a), omit “, if the scheme is for an area in Wales,
or”;

(ii) omit paragraph (b);

(b) omit subsection (4);

(c) 30in subsection (5)—

(i) in paragraph (b), omit “or, as the case may be, paragraphs (b)
to (d) of section 124(1A)”;

(ii) in paragraph (c), omit “or, as the case may be, (1A)”.

14 Omit section 131C (continuation of schemes for areas in England:
35procedure).

15 In section 131E (appeals where proposed continuation considered exempt),
in subsection (13), omit the words from “If” to “Wales,”.

16 Omit section 131F (appeals where proposed continuation considered non-
exempt).

17 40In section 132 (variation or revocation of scheme)—

(a) in subsection (2), omit “or those set out in subsection (1A)(a) to (d) of
that section”;

(b) in subsection (4A), omit paragraph (b);

(c) in subsection (5), omit paragraphs (a) to (c) and the “or” following
paragraph (c);

(d) omit subsections (6) to (8).

18 In section 132A (appeals where proposed variation considered exempt), in
5subsection (12), omit the words from “If” to “Wales,”.

19 In section 132B (exemption from section 132 for specific variations directed
by Tribunal), omit subsection (1)(a).

20 In section 133 (regulations about schemes)—

(a) in subsection (1)(b), omit “for areas in Wales”;

(b) 10omit subsection (1)(bb) and (bc);

(c) in subsection (2)(e), omit “for areas in Wales”;

(d) omit subsection (2)(ef) to (ei);

(e) omit subsection (3)(a);

(f) omit subsection (4)(b).

21 (1) 15Section 155 (sanctions imposed by traffic commissioners) is amended as
follows.

(2) In subsection (1) (when sanctions may be imposed), in paragraph (ba), after
“section” insert “123X(7)(c),”.

(3) After subsection (1) insert—

“(1ZA) 20Where a traffic commissioner is satisfied that—

(a) a person has operated a local service in contravention of
section 123J(3) of this Act, and

(b) in operating the local service, the person has failed to take all
reasonable precautions and to exercise all due diligence to
25avoid contravening section 123J(3) of this Act,

the traffic commissioner may make one or more orders under
subsection (1A)(a) or (d).””

(4) After subsection (1ZB) (inserted by Schedule 4) insert—

“(1ZC) Where a traffic commissioner is satisfied that the operator of a local
30service has failed to take all reasonable steps to comply with a
requirement imposed under section 143A of this Act, the traffic
commissioner may make one or more orders under subsection
(1A)(a) or (d).””

22 (1) Section 160 (regulations and orders under Part 2) is amended as follows.

(2) 35In subsection (2), after “than” insert “regulations under section 123A(4)”.

(3) After subsection (2) insert—

“(2A) A statutory instrument containing regulations under section 123A(4)
shall not be made unless a draft of the instrument has been laid
before, and approved by a resolution of, each House of Parliament.””

23 (1) 40Section 162 (interpretation of Part 2) is amended as follows.

(2) In subsection (1) (specific terms), at the appropriate place insert—

• “““effective time”, in relation to a local service contract, has the
  meaning given by section 123J(7),”;

Bus Services BillPage 86

• ““franchising authority” has the meaning given by section
  123A(4),”;”

• “““franchising scheme” is to be construed in accordance with
  section 123A(3),”;”

• 5“““interim service” has the meaning given by section 123O,”;”

• “““local service contract” has the meaning given by section
  123A(5),”;”

• “““mayoral combined authority” has the meaning given by
  section 107A of the Local Democracy, Economic
  10Development and Construction Act 2009,”;

• ““scheme sub-area” has the meaning given by section 123H,”;

• ““service permit” has the meaning given by section 123P,”.”

(3) In subsection (1), in the definition of “appropriate national authority”, omit
paragraph (a) (meaning for schemes relating to areas in England).

(4) 15In subsection (1), omit the definition of “QCS board”.

(5) In subsection (4) (interpretation of references to Integrated Transport
Authorities), omit the following entries—

• “section 124(4)(a), (5) and (7),”;

• “section 127(3A),”;

• 20“section 127A(7),”;

• “section 130,”;

• “section 131,”;

• “section 132C,”;

• “section 132D,”.

25Local Transport Act 2008 (c. 26)2008 (c. 26)

24 The Local Transport Act 2008 is amended as follows.

25 Omit sections 22 to 25 (QCS boards in England).

26 Omit section 27 (appeals against making of quality contract schemes in
England).

27 30Omit section 33 (continuation of quality contract schemes for areas in
England).

28 Omit section 36 (appeals where proposed continuation of scheme
considered non-exempt).

Section 8

SCHEDULE 3 35Further amendments: advanced ticketing schemes

Transport Act 1985 (c. 67)Transport Act 1985 (c. 67)

1 The Transport Act 1985 is amended as follows.

2 In section 26 (conditions attached to a PSV operator’s licence), in subsection
(1)(ba), after “section” insert “134F,”.

Transport Act 2000 (c. 38)Transport Act 2000 (c. 38)

3 The Transport Act 2000 (as amended by the Local Transport Act 2008) is
amended as follows.

4 (1) Section 135 (joint and through ticketing schemes) is amended as follows.

(2) 5In subsection (1), at the end insert—

““(but this is subject to subsection (1A)).””

(3) After subsection (1) insert—

“(1A) A local transport authority whose area is in England may exercise the
power to make a ticketing scheme only if—

(a) 10they are acting jointly with one or more other local transport
authorities, and

(b) at least one of those other local transport authorities is an
authority whose area is in Wales.””

5 In section 153 (competition test: functions and agreements relating to buses),
15in subsection (1)(a), after “partnership schemes,” insert “advanced ticketing
schemes,”.

6 In section 155 (sanctions), in subsection (1)(c), after “section” insert “134F,”.

7 (1) Section 162 (interpretation of Part 2) is amended as follows.

(2) In subsection (1), in the definition of “connecting rail or tram service” for
20“service”” substitute “service”—

• “(a)

  in relation to an advanced ticketing scheme, has the
  meaning given by section 134C(3), and

  (ii)

  in relation to a ticketing scheme,”.”

(3) In subsection (1), at the appropriate place insert—

• 25“““advanced ticketing scheme” is to be construed in accordance
  with section 134C(3),”.”

8 (1) Schedule 10 (competition test: functions and agreements relating to buses) is
amended as follows.

(2) In paragraph 1 (functions to which Part 1 of Schedule 10 applies)—

(a) 30in sub-paragraph (1), after paragraph (a) insert—

“(aa) making and varying advanced ticketing schemes,”;”

(b) in sub-paragraph (2), after paragraph (a) insert—

“(aa) in the case of the function of making or varying an
advanced ticketing scheme, once notice of a
35proposal to make or vary it has been given under
section 134D(1),”.”

(3) In paragraph 12 (enforcement of decisions of Competition and Markets
Authority), in sub-paragraph (2)(b), after “partnership scheme” insert “, an
advanced ticketing scheme”.

Section 15

SCHEDULE 4 Further amendments: enhanced partnership plans and schemes

Transport Act 1985 (c. 67)Transport Act 1985 (c. 67)

1 The Transport Act 1985 is amended as follows.

2 (1) 5Section 7 (application of traffic regulation conditions to services registered
under section 6) is amended as follows.

(2) After subsection (3) insert—

“(3A) Traffic regulation conditions may not be expressed to apply to an
area to which an enhanced partnership scheme under section 138A
10of the Transport Act 2000 relates.””

(3) After subsection (14) insert—

“(14A) Where an enhanced partnership scheme under section 138A of the
Transport Act 2000 comes into operation as regards an area, any
traffic regulation condition expressed to apply in an area that
15consists of or includes the area to which the scheme relates ceases at
that time to apply in the area to which the scheme relates.

(14B) A traffic commissioner may accordingly vary or revoke a traffic
regulation condition (without a request being made).””

3 (1) Section 26 (conditions attached to a PSV operator’s licence) is amended as
20follows.

(2) In subsection (1) (when conditions may be attached), in paragraph (b), for
“or 129(1)(b)” substitute “, 129(1)(b) or 138J(9)”.

(3) In subsection (1)(bza), after “134B(7)(c)” insert “or 138S(7)(c)”.

(4) In subsection (1)(baa) (inserted by Schedule 2), after “143A” insert “or 143B”.

25Transport Act 2000 (c. 38)Transport Act 2000 (c. 38)

4 The Transport Act 2000 (as amended by the Local Transport Act 2008) is
amended as follows.

5 In section 153 (competition test: functions and agreements relating to buses),
in subsection (1)(a) (applying tests in relation to the exercise of functions
30relating to quality partnership schemes, etc), after “ticketing schemes” insert
“, enhanced partnership schemes”.

6 (1) Section 155 (sanctions relating to Part 2 of the Act) is amended as follows.

(2) In subsection (1)(b), for “or 129(1)(b)” substitute “, 129(1)(b) or 138J(9)”.

(3) In subsection (1)(ba), after “134B(7)(c)” insert “or 138S(7)(c)”.

(4) 35After subsection (1ZA) (inserted by Schedule 2) insert—

“(1ZB) Where a traffic commissioner is satisfied that—

(a) a person has operated a local service in contravention of
section 138J(9) of this Act, and

(b) in operating the local service, the person has failed to take all
reasonable precautions and to exercise all due diligence to
avoid contravening section 138J(9) of this Act,

the traffic commissioner may make one or more orders under
5subsection (1A)(a) or (d).””

(5) After subsection (1ZC) (inserted by Schedule 2) insert—

“(1ZD) Where a traffic commissioner is satisfied that the operator of a local
service has failed to take all reasonable steps to comply with a
requirement imposed under section 143B the traffic commissioner
10may make one or more orders under subsection (1A)(a) or (d).””

7 (1) Section 160 (regulations and orders under Part 2) is amended as follows.

(2) In subsection (2), after “regulations under section 123A(4)” (inserted by
Schedule 2 to this Act) insert “, 138F(10), 138G(9)”.

(3) In subsection (2A) (inserted by Schedule 2 to this Act), after “regulations
15under section 123A(4)” insert “, 138F(10), 138G(9)”.

8 In section 162 (interpretation of Part 2 of the Act), in subsection (1), at the
appropriate place insert—

• “““enhanced partnership plan” and “enhanced partnership
  scheme” have the meaning given by section 138A,”.”

9 (1) 20Schedule 10 (competition test: functions and agreements relating to buses) is
amended as follows.

(2) In paragraph 1 (functions to which Part 1 of Schedule 10 applies)—

(a) after sub-paragraph (1)(b) (and before the “and”) insert—

“(ba) making and varying enhanced partnership
25schemes,”;”

(b) after sub-paragraph (2)(b) (and before the “and”) insert—

“(ba) in the case of the function of making or varying an
enhanced partnership scheme, once notice of a
proposal to make or vary it has been given under
30section 138F(1) or 138L(1),”.”

(3) In paragraph 12 (enforcement of decisions of Competition and Markets
Authority), in sub-paragraph (2)(b), for “or a ticketing scheme” substitute “,
a ticketing scheme or an enhanced partnership scheme”.

(4) In paragraph 17 (interpretation of Part 2 of Schedule 10), in sub-paragraph
35(5)(c), after “scheme” insert “, an enhanced partnership scheme”.