Localism Bill

AMENDMENTS
TO BE MOVED
ON REPORT

After Clause 217

LORD MCKENZIE OF LUTON

LORD BEECHAM

 

Insert the following new Clause—

“CHAPTER 4 Devolution to core cities

Power to transfer functions to permitted authorities

(1) The Secretary of State may by order make provision in relation to a specified permitted authority—

(a) conferring an eligible function on any person or body on the specified permitted authority in relation to a relevant area;

(b) transferring an eligible function from any person or body to the specified permitted authority in relation to a relevant area;

(c) about the discharge of eligible functions that are conferred on, or transferred to, permitted authorities by virtue of this section (including provision enabling the discharge of those functions to be delegated).

(2) An order under this section may modify any enactment (whenever passed or made) for the purpose of making the provision mentioned in subsection (1).

(3) The power to modify an enactment in subsection (2) is a power—

(a) to apply that enactment with or without modifications,

(b) to extend, disapply or amend that enactment, or

(c) to repeal or revoke that enactment with or without savings.

(4) An order under this section shall only be made if the Secretary of State considers that the order would achieve the purpose of the promotion of economic development or wealth creation in the relevant area.

(5) No eligible function may be conferred upon a permitted authority by an order under this section without that authority’s consent.

(6) Section 101 of the Local Government Act 1972 shall apply in relation to functions conferred or transferred under subsection (1).

(7) An order under this section may make provision for and in connection with the transfer of property, rights and liabilities from the person who, or body which, would have an eligible function but for the order (“the transferor”) to the permitted authority by whom the function is made exercisable by virtue of the order.

(8) The things that may be transferred by virtue of provision made under subsection (7) include—

(a) property, rights and liabilities that could not otherwise be transferred;

(b) property acquired, and rights and liabilities arising, after the making of the order.

(9) Provision which may be made under subsection (7) includes, in particular, provision—

(a) for the creation of rights, or the imposition of liabilities, in relation to property or rights transferred;

(b) about the continuing effect of things done by the transferor in respect of anything transferred;

(c) about the continuation of things (including legal proceedings) in the process of being done by, or on behalf of or in relation to the transferor in respect of anything transferred;

(d) for references to the transferor in an instrument or other document relating to anything transferred to be treated as references to the local authority;

(e) for the shared ownership or use of property;

(f) that has the same or similar effect as the TUPE regulations (so far as those regulations do not apply in relation to the transfer);

(g) for the transferor and local authority to be able to modify other provision made in relation to the transfer by agreement;

(h) for any modifications under paragraph (g) to have effect from the date when the transfer had effect under the order.

(10) For the purposes of this section—

(a) an individual who holds employment in the civil service is to be treated as employed by virtue of a contract of employment, and

(b) the terms of the individual’s employment in the civil service are to be regarded as constituting the terms of the contract of employment.

(11) In this section—

“civil service” means the civil service of the State;

“eligible function” means any function or power that:

(a) does not consist of a power to make regulations or other instruments of a legislative character or a power to fix fees or charges; and

(b) the Secretary of State considers can appropriately be exercised by the permitted authority for the purposes set out in subsection (4).

“local authority” means a county council, a unitary authority including a metropolitan borough council, or a non-unitary district council, but does not include any local authority within Greater London;

“permitted authority” means—

(a) a local authority;

(b) a combined authority established pursuant to section 103 of the Local Democracy, Economic Development and Construction Act 2009; or

(c) an economic prosperity board established pursuant to section 88 of the Local Democracy, Economic Development and Construction Act 2009.

“relevant area” means—

(a) the area of the specified permitted authority, or

(b) where the specified permitted authority is a local authority, the area of that local authority and the area of one or more other local authorities provided that:

(i) no part of the total relevant area is separated from the rest of it by one or more local government areas that are not within the area;

(ii) there is no local government area that is surrounded by local government areas that are within the area but that is not itself within the area;

provided that no order under this section shall be made in relation to a local authority area covered part by an existing order made under this section;

“specified” means specified or described in an order made by the Secretary of State under this section;

“TUPE regulations” means the Transfer of Undertakings (Protection of Employment) Regulations 2006 (SI 2006/246);

references to rights and liabilities include rights and liabilities relating to a contract of employment;

references to the transfer of property include the grant of a lease.”

 

Insert the following new Clause—

“Decision by the Secretary of State as to the exercise of powers under section (power to transfer functions to permitted authorities)

(1) If the Secretary of State receives a relevant proposal from any permitted authority, the Secretary of State must—

(a) consider the proposal, and

(b) notify the permitted authority making the proposal and any other permitted authority whose area is included in the relevant area to which the proposal relates of what action, if any, the Secretary of State is to take in relation to the proposal.

(2) For the purposes of subsection (1) a “relevant proposal” is a proposal—

(a) as to how the Secretary of State should exercise the powers in section (Power to transfer functions to permitted authorities) in relation to any area which is a “relevant area” within the meaning set out in section (Power to transfer functions to permitted authorities) (11),

(b) that is accompanied by such information and evidence as the Secretary of State may specify in regulations made under this section.

(3) The Secretary of State shall from time to time specify in criteria in regulations which the Secretary of State shall apply when considering the exercise of the power to make an order under section (Power to transfer functions to permitted authorities) (1). Such criteria shall include criteria which the Secretary of State considers desirable to secure appropriate governance and accountability for the operation of the relevant area to which the order applies.

(4) The Secretary of State shall consult with local authorities, before publishing or amending the criteria and information required by subsections (2)(b) and (3).

(5) Before making, revoking or varying an order under subsection (1), the Secretary of State shall consult such persons as appear to him or her to be affected.”

 

Insert the following new Clause—

“Delegation of functions by Ministers within an area covered by an Order under section (power to transfer functions to permitted authorities)

(1) If an order under section (Power to transfer functions to permitted authorities) (1) is in force a Minister of the Crown may, to such extent and subject to such conditions as that Minister thinks fit, delegate to a permitted authority named in that order any of that Minister’s eligible functions.

(2) A function is eligible for the purposes of subsection (1) above if—

(a) it does not consist of a power to make regulations or other instruments of a legislative character or a power to fix fees or charges, and

(b) the Secretary of State considers that it can appropriately be exercised by the permitted authority.

(3) No delegation under subsection (1) above, and no variation of a delegation under subsection (1) above, may be made without the agreement of the permitted authority.

(4) A delegation under subsection (1) above may be revoked at any time by any Minister of the Crown.

(5) Section 101 of the Local Government Act 1972 shall apply in relation to functions delegated under subsection (1).”

 

Insert the following new Clause—

“Super-affirmative resolution procedure

(1) For the purposes of section (Power to transfer functions to permitted authorities) the “super-affirmative resolution procedure” in relation to the making of an order pursuant to a draft order laid under that section is as follows.

(2) The Minister must have regard to—

(a) any representations,

(b) any resolution of either House of Parliament, and

(c) any recommendations of a committee of either House of Parliament charged with reporting on the draft order,

made during the 60-day period with regard to the draft order.

(3) If, after the expiry of the 60-day period, the Minister wishes to make an order in the terms of the draft, the Minister must lay before Parliament a statement—

(a) stating whether any representations were made under subsection (2)(a); and

(b) if any representations were so made, giving details of them.

(4) The Minister may after the laying of such a statement make an order in the terms of the draft if it is approved by a resolution of each House of Parliament.

(5) However, a committee of either House charged with reporting on the draft order may, at any time after the laying of a statement under subsection (3) and before the draft order is approved by that House under subsection (4), recommend under this subsection that no further proceedings be taken in relation to the draft order.

(6) Where a recommendation is made by a committee of either House under subsection (5) in relation to a draft order, no proceedings may be taken in relation to the draft order in that House under subsection (4) unless the recommendation is, in the same Session, rejected by resolution of that House.

(7) If, after the expiry of the 60-day period, the Minister wishes to make an order consisting of a version of the draft order with material changes, the Minister must lay before Parliament—

(a) a revised draft order; and

(b) a statement giving details of—

(i) any representations made under subsection (2)(a); and

(ii) the revisions proposed.

(8) The Minister may after laying a revised draft order and statement under subsection (7) make an order in the terms of the revised draft if it is approved by a resolution of each House of Parliament.

(9) However, a committee of either House charged with reporting on the revised draft order may, at any time after the revised draft order is laid under subsection (7) and before it is approved by that House under subsection (8), recommend under this subsection that no further proceedings be taken in relation to the revised draft order.

(10) Where a recommendation is made by a committee of either House under subsection (9) in relation to a revised draft order, no proceedings may be taken in relation to the revised draft order in that House under subsection (8) unless the recommendation is, in the same Session, rejected by resolution of that House.

(11) For the purposes of subsections (4) and (8) an order is made in the terms of a draft order if it contains no material changes to the provisions of the draft order.

(12) In this section the “60-day period” means the period of 60 days beginning with the day on which the draft order was laid before Parliament under section (Power to transfer functions to permitted authorities).

(13) In this section “representations” means any representation made to the Minister by any person or body.”

Prepared 27th July 2011