Bus Services Bill (HC Bill 158)

(f) make provision modifying any provision of sections 113G to
113I in relation to schemes which specify existing facilities or
existing measures.

113L Variation or revocation of schemes

(1) 5The authority or authorities who made an advanced quality
partnership scheme may vary the scheme if they decide that it is
appropriate to do so.

(2) The authority or authorities who made a scheme may revoke it before
the end of the period for which it would otherwise remain in operation
10if all persons who have given an undertaking to provide a service to the
standard specified in the scheme consent to the revocation of the
scheme; and such consent must not be unreasonably withheld.

(3) If the variation of a scheme under subsection (1) would require the
making of a traffic regulation order, the variation is subject to the same
15procedure as the making of a scheme.

(4) Any other variation of a scheme under subsection (1), or the revocation
of a scheme under subsection (2), is subject to that procedure, except to
the extent that the procedure is modified by regulations made under
section 113N.

113M 20Variation: supplementary

(1) The relevant references to the authority or authorities in relation to an
advanced quality partnership scheme—

(a) include a local transport authority if it has been varied so that it
relates to that authority’s area, but

(b) 25do not include a local transport authority if it has been varied so
that it no longer relates to that authority’s area.

(2) But if (although the scheme does not relate to a local transport
authority’s area) it would do by reason of a proposed variation, those
references (apart from those in section 113J) include that authority.

(3) 30The relevant references (apart from those in section 113C(1) and in the
words before paragraph (a) of section 113C(5)) to the authority or
authorities in relation to an advanced quality partnership scheme—

(a) include a traffic regulation authority if it has been varied so that
it specifies traffic regulation facilities or traffic regulation
35measures, but

(b) do not include a traffic regulation authority if it has been varied
so that it no longer specifies such facilities or measures.

(4) But if (although the scheme does not specify facilities which are traffic
regulation facilities in relation to a traffic regulation authority or
40measures which are traffic regulation measures in relation to a traffic
regulation authority) it would do by reason of a proposed variation,
those references (apart from those in section 113J) include that
authority.

(5) And if (although the scheme specifies facilities which are traffic
45regulation facilities in relation to a traffic regulation authority or
measures which are traffic regulation measures in relation to a traffic
regulation authority)—

(a) the traffic regulation order, or (where more than one) each of
the traffic regulation orders, required to be made by that
authority for the provision of those facilities or the taking of
those measures has been revoked, and

(b) 5the scheme is proposed to be varied (but not so that it specifies
other facilities which are traffic regulation facilities in relation to
that authority or other measures which are traffic regulation
measures in relation to that authority),

the relevant references (apart from those in section 113J) do not include
10that authority.

(6) For the purposes of this section the relevant references are those in—

(a) section 113C(1) to (7),

(b) section 113D, and

(c) sections 113G to 113L,

15and paragraph 27(2A) of Schedule 9 to the Road Traffic Regulation Act
1984.

(7) In this section “traffic regulation authority” means—

(a) a metropolitan district council, or

(b) the Secretary of State.

(8) 20For the purposes of this section—

(a) facilities are traffic regulation facilities, in relation to a traffic
regulation authority and an advanced quality partnership
scheme, if that authority was required to be a maker of the
scheme because it originally specified those facilities or would
25have been required to be a maker of it had it done so;

(b) measures are traffic regulation measures, in relation to a traffic
regulation authority and an advanced quality partnership
scheme, if that authority was required to be a maker of the
scheme because it originally specified those measures or would
30have been required to be a maker of it had it done so.

113N Regulations about schemes

(1) The Secretary of State may by regulations make further provision with
respect to—

(a) the procedure to be followed when making, varying or
35revoking advanced quality partnership schemes,

(b) the content or operation of schemes which include—

(i) a requirement falling within section 113E(4)(b) or (5)(a),
or

(ii) a requirement falling within section 113E(4)(a) or (5)(b)
40relating to an undertaking that would fall to be given
under section 113C(4)(b),

(c) the local services or classes of local services which must be, or
may be, excluded from schemes,

(d) the conditions which must be, or may be, attached to such
45exclusions,

(e) the form and manner in which undertakings are to be given to
a traffic commissioner in connection with schemes,

(f) the making of traffic regulation orders in connection with
schemes, and

(g) such other incidental matters in connection with advanced
quality partnership schemes as the Secretary of State thinks fit.

(2) The regulations may in particular make provision with respect to—

(a) giving notice of proposed schemes or proposed variations or
5revocation of schemes,

(b) objections to such proposals,

(c) the holding of inquiries or hearings into objections,

(d) modifications of such proposals,

(e) the form of schemes or variations, and

(f) 10giving notice of schemes which have been made or of the
variation or revocation of schemes.

(3) As regards schemes which include or would include—

(a) a requirement described in subsection (1)(b)(i), or

(b) a requirement described in subsection (1)(b)(ii),

15regulations under subsection (1)(a) or (b) may in particular make the
provision referred to in subsection (4).

(4) The provision mentioned in subsection (3) is provision—

(a) for section 113E(7) or (8) not to apply in such circumstances as
may be prescribed,

(b) 20in prescribed circumstances where such schemes, or any
provisions of such schemes, are subject to postponement under
section 113I, for any such requirement not to take effect unless
prescribed conditions are satisfied,

(c) as to the meaning of “admissible objection” for the purposes of
25section 113E(7) and (8) and subsection (5)(b) of this section,

(d) as to the meaning of “relevant operator” for those purposes, and

(e) as to the determination of any question whether an objection is
an admissible objection or an operator is a relevant operator.

(5) As regards schemes which include a requirement described in
30subsection (1)(b)(i), regulations under subsection (1)(b) may also make
provision—

(a) requiring such schemes to include provision—

(i) as respects the setting of frequencies, timings or
maximum fares to which the requirements relate,

(ii) 35for a minimum interval before any requirements as to
frequencies, timings or maximum fares may next be
reviewed,

(iii) for a maximum interval before any such requirements
must next be reviewed,

(iv) 40as respects other circumstances in which any such
requirements must or may be reviewed, and

(v) as respects revision of any such requirements after a
review, and

(b) for any requirement as to frequencies, timings or maximum
45fares to be revised only if there are no admissible objections to
the revision from relevant operators.

(6) The revision of requirements as to frequencies, timings or maximum
fares under any provision included in a scheme by virtue of regulations

under subsection (5)(a) is not to be regarded as a variation of the
scheme for the purposes of section 113L (variation or revocation of
schemes).

(7) Nothing in subsection (5) or (6) is to be taken to derogate from what
5may be done under or by virtue of section 113L.

(8) The provision that may be made by virtue of subsection (4)(e) includes
provision for and in connection with—

(a) the appointment of a person (“an adjudicator”) to make such a
determination as is mentioned in that paragraph;

(b) 10the appointment of a person (“an assessor”) to assist an
adjudicator in considering any question which appears to arise
in relation to such a determination;

(c) the payment—

(i) by the Secretary of State to an adjudicator, or

(ii) 15by the Secretary of State or an adjudicator to an assessor,

of such remuneration as may be determined by or in accordance
with the regulations.

113O Guidance about schemes

(1) The Secretary of State may issue guidance concerning the carrying out
20by local transport authorities whose areas are in England and
metropolitan district councils of their functions under this Part in
relation to advanced quality partnership schemes.

(2) Those authorities and councils must have regard to any such
guidance.””

2 25Further amendments

Schedule 1 contains further amendments relating to advanced quality
partnership schemes.

3 Transitional provision

(1) Subsection (2) applies in relation to a quality partnership scheme under section
30114 of the Transport Act 2000 that—

(a) is in operation, or made but not yet in operation, immediately before
the commencement date, and

(b) at that time relates only to the areas of one or more local transport
authorities in England.

(2) 35The scheme is to be treated from the commencement date as if it were an
advanced quality partnership scheme that had been made under section 113C
of the Transport Act 2000 (inserted by section 1).

(3) Subsection (4) applies in relation to a quality partnership scheme that, as varied
under section 120 of the Transport Act 2000 after the commencement date,
40relates only to the areas of one or more local transport authorities in England.

(4) The scheme is to be treated from the date on which the scheme as varied comes
into operation as if it were an advanced quality partnership scheme that had
been made under section 113C of the Transport Act 2000.

(5) In this section “the commencement date” is the date on which section 1 comes
into force for all purposes.

Franchising schemes

4 Franchising schemes

5In Part 2 of the Transport Act 2000, after section 123 insert—

““Bus services: franchising schemes

123A Franchising schemes

(1) A franchising authority, or two or more franchising authorities acting
jointly, may make a franchising scheme covering the whole or any part
10of their area, or their combined area.

(2) A franchising scheme may not be made unless the franchising authority
or authorities have complied with the requirements in sections 123B to
123G.

(3) A franchising scheme is a scheme—

(a) 15under which the authority or authorities identify the local
services that they consider appropriate to be provided in an
area under local service contracts,

(b) by virtue of which those local services may only be provided in
that area in accordance with local service contracts (subject to
20section 123O),

(c) by virtue of which the authority or authorities may grant service
permits for other local services which have a stopping place in
that area (subject to section 123H(5)), and

(d) under which the authority or authorities identify additional
25facilities that they consider appropriate to provide in that area.

(4) In this Part “franchising authority” means—

(a) a mayoral combined authority,

(b) a county council in England for an area for which there are
district councils,

(c) 30a county council in England for an area for which there is no
district council,

(d) a non-metropolitan district council for an area for which there is
no county council,

(e) an Integrated Transport Authority for an integrated transport
35area in England, or

(f) a combined authority which is not a mayoral combined
authority.

But each of paragraphs (b) to (f) has effect only if the Secretary of State
by regulations so provides.

(5) 40In this Part “local service contract”, in relation to a franchising scheme,
means an agreement that complies with section 123K(1) to (3) under
which—

(a) the franchising authority or authorities grant to another person
the exclusive right to operate the local services to which the
contract relates, and

(b) the person undertakes to provide the local services on such
5terms (including in particular as to frequency, fares and
standard of service) as may be specified in the agreement.

(6) The terms as to standard of service that may be specified include terms
about requirements which vehicles being used to provide the service
must meet, including requirements about emissions or types of fuel or
10power.

(7) A local service contract may be made on terms which include provision
for the making of payments by the authority or authorities to the person
undertaking to provide the local service.

(8) Section 88(1) of the Transport Act 1985 (application to subsidy
15agreements of sections 89 to 92 of that Act) does not apply in relation to
local service contracts.

(9) A franchising scheme must include a description of the franchising
authority’s or authorities’ plans for consulting such organisations
appearing to the authority or authorities to be representative of users of
20local services as they think fit in order to seek their views on how well
the scheme is working.

(10) A franchising authority’s functions under this Part in relation to a
franchising scheme are excluded from the functions to which section
101(1)(b) of the Local Government Act 1972 applies, where the
25franchising authority is a local authority within the meaning of section
101 of the Local Government Act 1972.

123B Assessment of proposed scheme

(1) A franchising authority or authorities that propose to make a
franchising scheme covering the whole or any part of their area, or
30combined area, must prepare an assessment of the proposed scheme.

(2) The assessment must—

(a) describe the effects that the proposed scheme is likely to
produce, and

(b) compare making the proposed scheme to one or more other
35courses of action.

(3) The assessment must also include consideration of—

(a) whether the proposed scheme would contribute to the
implementation of—

(i) the authority’s or authorities’ policies under section
40108(1)(a), and

(ii) other policies affecting local services that the authority
or authorities have adopted and published,

(b) whether the proposed scheme would contribute to the
implementation by neighbouring relevant local authorities of—

(i) 45those authorities’ policies under section 108(1)(a), and

(ii) other policies affecting local services that those
authorities have adopted and published,

(c) how the authority or authorities would make and operate the
proposed scheme,

(d) whether the authority or authorities would be able to afford to
make and operate the scheme,

(e) 5whether the proposed scheme would represent value for
money, and

(f) the extent to which the authority or authorities are likely to be
able to secure that local services are operated under local service
contracts.

(4) 10Subsections (2) and (3) do not prevent inclusion of other matters.

(5) The Secretary of State must issue guidance concerning the preparation
of an assessment under this section, and that guidance may, in
particular, include guidance about methods to be used when assessing
a proposed scheme.

(6) 15Franchising authorities must have regard to any such guidance.

(7) In this section “relevant local authority” means—

(a) a local transport authority,

(b) a London transport authority, or

(c) a council in Scotland.

123C 20Consent of the Secretary of State and notice

(1) A franchising authority or authorities may not prepare an assessment
of a proposed franchising scheme under section 123B unless the
Secretary of State consents to their doing so.

(2) The Secretary of State’s consent is not required if the proposed scheme
25relates only to—

(a) the area of a mayoral combined authority, or

(b) the combined area of two or more mayoral combined
authorities.

(3) The Secretary of State must publish a notice of a consent given under
30this section.

(4) Before preparing an assessment of a proposed franchising scheme
under section 123B, the authority or authorities must publish, in such
manner as they consider appropriate, a notice stating that they intend
to prepare such an assessment.

123D 35Audit

(1) If, after preparing an assessment of a proposed franchising scheme
under section 123B, the authority or authorities wish to proceed with
the proposed scheme, they must obtain a report from an auditor on that
assessment.

(2) 40The auditor’s report must state whether, in the opinion of the auditor—

(a) the information relied on by the authority or authorities in
considering the matters referred to in section 123B(3)(d) or (e) is
of sufficient quality,

(b) the analysis of that information in the assessment is of sufficient
45quality, and

(c) the authority or authorities had due regard to guidance issued
under section 123B in preparing the assessment.

(3) A person may not act as auditor under this section if the person would
be disqualified from acting as local auditor of the accounts of the
5franchising authority, or any of the franchising authorities, under
section 1214 of the Companies Act 2006 as substituted by paragraph 5
of Schedule 5 to the Local Audit and Accountability Act 2014.

(4) In this section “auditor” means a person or body with a recognised
professional qualification, as that term is defined for the purposes of
10Part 42 of the Companies Act 2006 as modified by Schedule 5 to the
Local Audit and Accountability Act 2014.

123E Consultation

(1) This section applies if, after obtaining an auditor’s report under section
123D, the authority or authorities wish to proceed with the proposed
15franchising scheme.

(2) The authority or authorities must—

(a) publish a consultation document relating to the proposed
scheme (see section 123F),

(b) publish the assessment of the proposed scheme,

(c) 20publish the auditor’s report on that assessment, and

(d) give notice of the proposed scheme in such manner as the
authority or authorities consider appropriate for bringing it to
the attention of persons in the area to which it relates.

(3) A notice under subsection (2)(d) must—

(a) 25describe the proposed scheme, and

(b) state where copies of the proposed scheme and the documents
mentioned in subsection (2)(a) to (c) may be inspected.

(4) After giving notice under subsection (2)(d), the authority or authorities
must consult—

(a) 30all persons operating local services in the area or areas to which
the proposed scheme relates,

(b) all other persons holding a PSV operator’s licence or a
community bus permit who would, in the opinion of the
authority or authorities, be affected by the proposed scheme,

(c) 35such persons as appear to the authority or authorities to
represent employees of persons falling within paragraph (a),

(d) such organisations appearing to the authority or authorities to
be representative of users of local services as they think fit,

(e) any other relevant local authority any part of whose area
40would, in the opinion of the authority or authorities, be affected
by the proposed scheme,

(f) a traffic commissioner,

(g) the chief officer of police for each police area covering the whole
or part of an area to which the proposed scheme relates,

(h) 45the Passengers’ Council, and

(i) the Competition and Markets Authority.

(5) In subsection (4)(e) “relevant local authority” means—

(a) a local transport authority,

(b) a district council,

(c) a National Park authority,

(d) the Broads Authority,

(e) 5a London transport authority, or

(f) a council in Scotland.

(6) The authority or authorities may modify the proposed scheme after
consulting those persons and organisations.

123F Consultation document

(1) 10A consultation document under section 123E(2)(a) relating to a
proposed franchising scheme must include—

(a) a description of the area to which the proposed scheme relates,

(b) a description of areas within that area for which different
provision is proposed to be made, if such provision is proposed
15to be included in the proposed scheme,

(c) a description of the local services that are proposed to be
provided under local service contracts,

(d) a description of the local services that are proposed to be
excepted from regulation arising because of the proposed
20scheme,

(e) the date on which the scheme is proposed to be made,

(f) the date or dates by which it is proposed that local service
contracts first be entered into,

(g) the period or periods it is proposed will expire between the
25making of local service contracts and the provision of local
services under such contracts,

(h) a description of the authority’s or authorities’ proposed plans
for consulting in order to seek views on how well the scheme is
working,

(i) 30a statement about how, in conducting the procurement process
for the provision of local services, the authority or authorities
propose to facilitate the involvement of small and medium-
sized operators in the provision of local services, and

(j) the date by which responses to the consultation must be
35received.

(2) The consultation document must also include a summary of the
assessment prepared under section 123B in relation to the proposed
scheme.

123G Response to consultation

(1) 40A franchising authority or authorities that conduct a consultation
under section 123E must publish a report setting out—

(a) the authority’s or authorities’ response to the consultation;

(b) the authority’s or authorities’ decision on whether to make a
franchising scheme covering the whole or any part of their area
45or combined area.

(2) The authority or authorities must give notice of the report to a traffic
commissioner.

(3) If the authority or authorities decide to make a franchising scheme, the
report must set out how, in conducting the procurement process for the
provision of local services, the authority or authorities will facilitate the
involvement of small and medium-sized operators in the provision of
5local services.

(4) If a franchising authority are a mayoral combined authority, the
function of deciding whether to make a proposed franchising scheme is
a function of the combined authority exercisable only by the mayor
acting on behalf of the combined authority (including in a case where
10the decision is to make a scheme jointly with one or more other
franchising authorities).

123H Making and publication of scheme

(1) If the authority or authorities publishing a report under section 123G
have decided to make a franchising scheme covering the whole or any
15part of their area or combined area, they must make the scheme, and
publish it, at the same time as the report under section 123G.

(2) The scheme must specify—

(a) the area to which the scheme relates,

(b) the local services intended to be provided under local service
20contracts,

(c) the date on which local service contracts relating to local
services may first be entered into (subject to subsection (3)(b)),
and

(d) the minimum period that is to expire between the making of a
25local service contract and the provision of a local service under
the contract (subject to subsection (3)(c)).

(3) The scheme may specify—

(a) areas within the area to which the scheme relates (“scheme sub-
areas”),

(b) 30for each scheme sub-area, the date on which a local service
contract to provide a local service in that scheme sub-area may
first be entered into, and

(c) for each scheme sub-area, the minimum period that is to expire
between the making of a local service contract to provide such
35a service and the provision of such a service under the contract.

(4) A scheme may not specify under subsection (2)(d) or (3)(c) a period of
less than six months.

(5) Subject to regulations under section 123U, the scheme may except from
regulation arising because of the scheme—

(a) 40local services specified in the scheme, and

(b) local services of a class specified in the scheme.

(6) If the franchising scheme relates to an area to which a relevant scheme
or plan also relates, the franchising scheme must include—

(a) in a case where the relevant scheme or plan relates only to the
45area to which the franchising scheme relates or a part of that
area, provision revoking the relevant scheme or plan, or