Localism Bill (HL Bill 90)

(b) as the Regulator of Social Housing by virtue of any other
enactment or instrument.”

9 In section 46 (guidance by the Secretary of State) after subsection (7) insert—

“(8) This section does not apply to the functions conferred on the HCA—

(a) 5as the regulator by virtue of Part 2, or

(b) as the Regulator of Social Housing by virtue of any other
enactment or instrument.”

10 In section 47 (directions by the Secretary of State) after subsection (6) insert—

“(7) This section does not apply to the functions conferred on the HCA—

(a) 10as the regulator by virtue of Part 2, or

(b) as the Regulator of Social Housing by virtue of any other
enactment or instrument.”

11 In the Table in section 58 (Part 1: index of defined expressions) in the entry
for “Regulator of Social Housing” for “Section 81(2)(a)” substitute “Section
1592A(2)”.

12 In the Table in section 60(4) (structural overview of Part 2) for the entry
relating to Chapter 2 substitute—

13 Omit section 78 (the Regulator of Social Housing).

14 30Omit section 81 (the regulator: establishment).

15 Omit section 82 (the regulator: membership).

16 Omit section 83 (the regulator: tenure of office of members).

17 Omit section 84 (the regulator: chief executive).

18 Omit section 85 (the regulator: other staff).

19 35Omit section 86 (the regulator: fundamental objectives).

20 Omit section 87 (the regulator: procedure).

21 Omit section 88 (the regulator: conflict of interest).

22 Omit section 89 (the regulator: committees).

23 Omit section 90 (the regulator: delegation).

24 40Omit section 91 (the regulator: seal).

25 Omit section 92 (the regulator: annual report).

26 After that section insert—

“The regulator and the Regulation Committee

92A Regulation functions of the HCA

(1) In this Part “the regulator” means the HCA.

(2) 5In any other enactment or instrument “the Regulator of Social
Housing” means the HCA.

92B The Regulation Committee

(1) The HCA must establish a committee to be known as the Regulation
Committee.

(2) 10The functions conferred on the HCA as the regulator by virtue of this
Part, or as the Regulator of Social Housing by virtue of any other
enactment or instrument, are exercisable by the HCA acting through
the Regulation Committee.

(3) Those functions are not exercisable by the HCA in any other way.

(4) 15Subsections (2) and (3) are subject to any express provision to the
contrary in this Part or in the enactment or instrument in question.

(5) References in this Part to the functions of the regulator are to the
functions mentioned in subsection (2).

(6) References in any enactment or instrument to the social housing
20functions of the HCA or the Regulator of Social Housing are to the
functions mentioned in subsection (2).

92C Membership of the Regulation Committee

(1) The Regulation Committee is to consist of—

(a) a person appointed by the Secretary of State to chair the
25Committee (“the chair”), and

(b) not less than four and not more than six other members
appointed by the Secretary of State.

(2) The chair of the Committee must not be a member of the HCA
immediately prior to the chair’s appointment as such, but becomes a
30member of the HCA on appointment.

(3) One other member of the Committee may be a member of the HCA.

(4) The member within subsection (3) is referred to in this Part as the
internal member.

(5) The remaining members of the Committee must be neither a member
35nor a member of staff of the HCA.

(6) A member within subsection (5) is referred to in this Part as an
external member.

(7) The Secretary of State must consult the chair before appointing the
other members.

(8) 40In appointing a person to be a member, the Secretary of State must
have regard to the desirability of appointing a person who has

experience of, and has shown some capacity in, a matter relevant to
the exercise of the functions of the regulator.

(9) In appointing a person to be a member, the Secretary of State must
be satisfied that the person will have no financial or other interest
5likely to affect prejudicially the exercise of the person’s functions as
a member.

(10) The Secretary of State may require any person whom the Secretary of
State proposes to appoint as a member to provide such information
as the Secretary of State considers necessary for the purposes of
10subsection (9).

92D Terms of appointment of members

(1) A member of the Regulation Committee holds office in accordance
with the member’s terms of appointment.

(2) A member may resign by serving notice on the Secretary of State.

(3) 15A person ceases to be the chair if the person—

(a) resigns that office by serving notice on the Secretary of State,
or

(b) ceases to be a member of the Committee.

(4) If a person ceases to be the chair, the person—

(a) 20ceases to be a member of the Committee, and

(b) ceases to be a member of the HCA.

(5) A person ceases to be the internal member if the person ceases to be
a member of the HCA.

(6) A person who ceases to be a member or the chair is eligible for
25reappointment (subject to section 92C).

(7) The Secretary of State may remove a member who—

(a) has been absent from meetings of the Committee without its
permission for more than six months,

(b) has become bankrupt or has made an arrangement with the
30member’s creditors,

(c) the Secretary of State thinks has failed to comply with the
member’s terms of appointment, or

(d) the Secretary of State thinks is otherwise unable, unfit or
unsuitable to exercise the functions of that member.

92E 35Remuneration etc of members

(1) The Secretary of State may require the HCA to pay to the chair such
additional remuneration and allowances as the Secretary of State
may decide.

(2) The Secretary of State may require the HCA to pay to the external
40members of the Regulation Committee such remuneration and
allowances as the Secretary of State may decide.

(3) The Secretary of State may require the HCA to—

(a) pay such pensions, allowances or gratuities as the Secretary
of State may decide to or in respect of any external member
or former external member;

(b) pay such sums as the Secretary of State may decide towards
5provision for the payment of pensions, allowances or
gratuities to or in respect of any external member or former
external member.

(4) Subsection (5) applies if—

(a) a person ceases to be an external member, and

(b) 10the Secretary of State considers that there are special
circumstances that make it appropriate for the person to
receive compensation.

(5) The Secretary of State may require the HCA to pay the person such
amount as the Secretary of State may decide.

92F 15Sub-committees of the Regulation Committee

(1) The Regulation Committee may establish one or more sub-
committees.

(2) A sub-committee may include persons who are not members of the
Committee.

(3) 20The Secretary of State may require the HCA to pay such
remuneration and allowances as the Secretary of State may decide to
any person who—

(a) is a member of a sub-committee, but

(b) is not a member of the Committee.

(4) 25The HCA may dissolve a sub-committee.

92G Procedure of the Committee and its sub-committees

(1) The Regulation Committee may decide—

(a) its own procedure, and

(b) the procedure of any of its sub-committees.

(2) 30Subject to subsection (1), a sub-committee may decide its own
procedure.

(3) The validity of proceedings of the Committee or of any of its sub-
committees is not affected by—

(a) any vacancy in its membership,

(b) 35any defect in the appointment of a member, or

(c) any contravention of section 92H (members’ interests).

(4) In this section “procedure” includes quorum.

92H Members’ interests

(1) A member of the Regulation Committee who is directly or indirectly
40interested in any matter arising at a meeting of the Committee must
disclose the nature of that interest to the meeting.

(2) A member of a sub-committee of the Committee who is directly or
indirectly interested in any matter arising at a meeting of the sub-
committee must disclose the nature of that interest to the meeting.

(3) In a case within subsection (1) or (2)—

(a) 5the member must not take part in any deliberation or
decision about the matter if it is a contract or agreement of
any description, but

(b) may otherwise take part in any deliberation or decision about
the matter unless at least one-third of the other members at
10the meeting decide that the interests disclosed might
prejudicially affect the member’s consideration of the matter.

92I Exercise of functions

(1) The Regulation Committee may delegate any of the functions of the
regulator to—

(a) 15any of its members,

(b) any of its sub-committees, or

(c) any member of staff of the HCA.

(2) A sub-committee of the Committee may delegate any function
conferred on it to any member of staff of the HCA.

(3) 20A power of the HCA that is a function of the regulator—

(a) may be exercised separately or together with, or as part of,
another such power;

(b) does not limit the scope of another such power.

92J Recommendations to HCA

(1) 25The Regulation Committee may make recommendations to the HCA
about the exercise of the HCA’s functions.

(2) The HCA must publish, in such manner as it thinks fit—

(a) a recommendation received from the Regulation Committee
under this section, and

(b) 30the HCA’s response to it.

(3) In this section the reference to the HCA’s functions does not include
the functions of the regulator.

Fundamental objectives

92K Fundamental objectives

(1) 35The regulator must perform its functions with a view to achieving (so
far as is possible)—

(a) the economic regulation objective, and

(b) the consumer regulation objective.

(2) The economic regulation objective is—

(a) 40to ensure that registered providers of social housing are
financially viable and properly managed, and perform their
functions efficiently and economically,

(b) to support the provision of social housing sufficient to meet
reasonable demands (including by encouraging and
promoting private investment in social housing),

(c) to ensure that value for money is obtained from public
5investment in social housing,

(d) to ensure that an unreasonable burden is not imposed
(directly or indirectly) on public funds, and

(e) to guard against the misuse of public funds.

(3) The consumer regulation objective is—

(a) 10to support the provision of social housing that is well-
managed and of appropriate quality,

(b) to ensure that actual or potential tenants of social housing
have an appropriate degree of choice and protection,

(c) to ensure that tenants of social housing have the opportunity
15to be involved in its management and to hold their landlords
to account, and

(d) to encourage registered providers of social housing to
contribute to the environmental, social and economic well-
being of the areas in which the housing is situated.

(4) 20The objectives are referred to in this Part as the regulator’s
fundamental objectives.

(5) The regulator must exercise its functions in a way that—

(a) minimises interference, and

(b) (so far as is possible) is proportionate, consistent, transparent
25and accountable.”

27 In section 93(1) (the regulator: general functions) for “conferred on it by this
Part or another enactment” substitute “of the regulator”.

28 Omit section 99 (the regulator: remuneration).

29 In section 100 (charging)—

(a) 30at the beginning insert “(1)”, and

(b) at the end of the subsection (1) so formed insert—

“(2) The functions of billing for and receiving the payment of
charges under this section are exercisable by the HCA rather
than by the HCA acting through its Regulation Committee.”

30 35Omit section 101 (the regulator: assistance by Secretary of State).

31 Omit section 102 (the regulator: borrowing).

32 Omit section 103 (the regulator: accounts).

33 Omit section 104 (the regulator: financial year).

34 Omit section 105 (the regulator: co-operation with the HCA).

35 40Omit section 106 (the regulator: direction to the HCA).

36 In section 112(4) (duty to consult before setting criteria for voluntary
registration) omit paragraph (a).

37 (1) Section 117 (the regulator: fees) is amended as follows.

(2) In subsection (5)(a) after “the performance of” insert “the regulator’s”.

(3) In subsection (9) for “regulator’s” substitute “HCA’s”.

(4) After that subsection insert—

“(10) The functions of billing for and receiving the payment of fees under
5this section are exercisable by the HCA rather than by the HCA
acting through its Regulation Committee.”

38 In section 145 (moratorium) omit subsection (4).

39 (1) Section 146 (duration of moratorium) is amended as follows.

(2) In subsection (4)—

(a) 10at the end of paragraph (a) insert “and”, and

(b) omit paragraph (c).

(3) Omit subsection (8).

40 In section 147(4) (further moratorium)—

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

(b) 15omit paragraph (c).

41 In section 174(5) (procedure for consent to disposal of social housing) omit
paragraph (a).

42 In section 196(1) (consultation on standards and codes of practice) omit
paragraph (f).

43 20In section 197(4) (direction by Secretary of State) omit paragraph (b).

44 In section 202 (inspections: supplemental) after subsection (7) insert—

“(8) The functions of billing for and receiving the payment of fees under
this section are exercisable by the HCA rather than by the HCA
acting through its Regulation Committee.”

45 25In section 216 (consultation on use of intervention powers) omit paragraph
(e).

46 In section 222 (notification of use of enforcement notice) omit paragraph (a).

47 In section 230(2) (pre-penalty warning) omit paragraph (a).

48 Omit section 232 (duty to notify HCA of penalty notice).

49 30In section 242(3) (pre-compensation warning) omit paragraph (a).

50 (1) Section 248 (supplemental provisions about management tenders) is
amended as follows.

(2) In subsection (4) omit paragraph (a).

(3) In subsection (7) omit paragraph (c).

(4) 35In subsection (8) omit paragraph (a).

51 (1) Section 250 (supplemental provisions about management transfers) is
amended as follows.

(2) In subsection (4) omit paragraph (a).

(3) In subsection (7) omit paragraph (c).

(4) In subsection (8) omit paragraph (a).

52 (1) Section 252 (supplemental provisions about appointment of managers) is
amended as follows.

(2) 5In subsection (4) omit paragraph (a).

(3) Omit subsection (7).

53 (1) The Table in section 276 (Part 2: index of defined terms) is amended as
follows.

(2) Omit the entry for “Appointed member”.

(3) 10In the entry for “Fundamental objectives” for “Section 86” substitute “Section
92K”.

(4) In the entry for “The regulator” for “Section 81” substitute “Section 92A”.

(5) In the entry for “The Regulator of Social Housing” for “Section 81” substitute
“Section 92A”.

(6) 15Insert the following entries at the appropriate place—

54 (1) Schedule 1 (constitution of the Homes and Communities Agency) is
20amended as follows.

(2) In paragraph 1 (appointment of membership) after sub-paragraph (4)
insert—

“(5) A person who is an external member of the Regulation Committee
(see section 92C) may not be appointed as a member of the HCA.”

(3) 25After paragraph 17 insert—

“18 The provisions in this Schedule about the HCA’s committees and
their sub-committees do not apply in relation to the Regulation
Committee or its sub-committees (as to which see in particular
sections 92A to 92I).”

30Part 2 Amendments consequential on Part 1

Public Records Act 1958 (c. 51)Public Records Act 1958 (c. 51)

55 In Schedule 1 to the Public Records Act 1958 (definition of public records),
in Part 2 of the Table at the end of paragraph 3 omit the entry for the Office
35for Tenants and Social Landlords.

Parliamentary Commissioner Act 1967 (c. 13)Parliamentary Commissioner Act 1967 (c. 13)

56 In Schedule 2 to the Parliamentary Commissioner Act 1967 (departments etc
subject to investigation) omit the entry for the Office for Tenants and Social
Landlords.

5House of Commons Disqualification Act 1975 (c. 24)House of Commons Disqualification Act 1975 (c. 24)

57 In Part 2 of Schedule 1 to the House of Commons Disqualification Act 1975
(bodies of which all members are disqualified) omit the entry for the Office
for Tenants and Social Landlords.

Race Relations Act 1976 (c. 74)Race Relations Act 1976 (c. 74)

58 10In Schedule 1A to the Race Relations Act 1976 (bodies and other persons
subject to general statutory duty) omit paragraph 52 (the Office for Tenants
and Social Landlords).

Freedom of Information Act 2000 (c. 36)Freedom of Information Act 2000 (c. 36)

59 In Part 6 of Schedule 1 to the Freedom of Information Act 2000 (public
15authorities) omit the entry for the Office for Tenants and Social Landlords.

Part 3 Transfer of property, rights and liabilities

Transfer of property, rights and liabilities

60 (1) The property, rights and liabilities to which the Office is entitled or subject
20immediately before the commencement of this paragraph transfer to and
vest in the HCA.

(2) This paragraph has effect in spite of any provision (of whatever nature) that
would otherwise prevent, penalise or restrict the transfer of the property,
rights or liabilities.

(3) 25In particular, it has effect regardless of a contravention, liability or
interference with an interest or right that would otherwise exist by reason of
such a provision having effect in relation to the terms on which the Office is
entitled to the property or right, or subject to the liability, in question.

(4) A certificate by the Secretary of State that anything specified in the certificate
30has vested in the HCA under this paragraph is conclusive evidence for all
purposes of that fact.

Employment contracts: transfer of rights and liabilities

61 (1) The rights and liabilities transferred by paragraph 60 include rights or
liabilities under a contract of employment.

(2) 35The Transfer of Undertakings (Protection of Employment) Regulations 2006
(S.I. 2006/246S.I. 2006/246) apply to the transfer by virtue of that paragraph of rights or
liabilities under a contract of employment (whether or not it is a relevant
transfer for the purposes of those regulations).

Continuity

62 (1) The transfer of property, rights and liabilities by virtue of paragraph 60 does
not affect the validity of anything done (or having effect as if done) by or in
relation to the Office before the transfer takes effect.

(2) 5Anything that—

(a) is done (or has effect as if done) by or in relation to the Office for the
purposes of, or otherwise in connection with, anything transferred
by paragraph 60, and

(b) has effect immediately before the transfer date,

10is to be treated as done by or in relation to the HCA.

(3) There may be continued by or in relation to the HCA anything (including
legal proceedings) that—

(a) relates to anything transferred under paragraph 60, and

(b) is in the process of being done by or in relation to the Office
15immediately before the transfer date.

(4) Sub-paragraph (5) applies to any document that—

(a) relates to anything transferred under paragraph 60, and

(b) is in effect immediately before the transfer date.

(5) Any references (however expressed) in the document to the Office are to be
20read, so far as is necessary for the purposes of the transfer, as references to
the HCA.

Interpretation

63 In this Part of this Schedule—

• “the Office” means the Office for Tenants and Social Landlords
  25constituted by Chapter 2 of the Housing and Regeneration Act 2008
  as originally enacted;

• “the transfer date” means the date on which paragraph 60 comes into
  force.

Part 4 30Transitional and saving provisions

Final annual report

64 (1) As soon as is reasonably practicable after the abolition date, the HCA must
prepare a report on the performance of the functions of the Office—

(a) in the last financial year to end before the abolition date, and

(b) 35in the period (if any) beginning immediately after the end of that
financial year and ending immediately before the abolition date.

(2) Sub-paragraph (1)(a) does not apply if the Office has already sent a report
under section 92 of the Housing and Regeneration Act 2008 to the Secretary
of State in respect of the financial year.

(3) 40The report must, in particular—