Localism Bill (HL Bill 100)

5 In section 32 (recovery etc of social housing assistance) omit subsection (11).

6 In section 34(2) (determinations under sections 32 and 33)—

(a) omit paragraph (a), and

(b) in paragraph (b) omit “other”.

7 5Omit section 37 (duty to co-operate with Regulator of Social Housing).

8 (1) Section 42 (agency arrangements with UDCs) is amended as follows.

(2) In subsection (2)(a) after “Chapter 3” insert “or the functions to which
subsection (2A) applies”.

(3) After that subsection insert—

“(2A) 10The functions to which this subsection applies are the functions
conferred on the HCA—

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

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

9 15In 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) as the regulator by virtue of Part 2, or

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

10 20In 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) as the regulator by virtue of Part 2, or

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

11 25In 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
92A(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 Omit 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 Omit section 86 (the regulator: fundamental objectives).

20 5Omit 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 Omit section 91 (the regulator: seal).

25 10Omit 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) 15In 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) 20The 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) 25Subsections (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
30functions 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
35Committee (“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
member of the HCA on appointment.

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

(4) 5The 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
nor a member of staff of the HCA.

(6) A member within subsection (5) is referred to in this Part as an
10external member.

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

(8) In appointing a person to be a member, the Secretary of State must
have regard to the desirability of appointing a person who has
15experience 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
likely to affect prejudicially the exercise of the person’s functions as
20a 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
subsection (9).

92D 25Terms 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) A person ceases to be the chair if the person—

(a) 30resigns 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) ceases to be a member of the Committee, and

(b) 35ceases 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
reappointment (subject to section 92C).

(7) 40The 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
member’s creditors,

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

(d) 5the Secretary of State thinks is otherwise unable, unfit or
unsuitable to exercise the functions of that member.

92E Remuneration 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
10may decide.

(2) The Secretary of State may require the HCA to pay to the external
members 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) 15pay 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
provision for the payment of pensions, allowances or
20gratuities 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) the Secretary of State considers that there are special
25circumstances 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 Sub-committees of the Regulation Committee

(1) 30The Regulation Committee may establish one or more sub-
committees.

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

(3) The Secretary of State may require the HCA to pay such
35remuneration 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) The HCA may dissolve a sub-committee.

92G 40Procedure 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) Subject 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) 5any vacancy in its membership,

(b) any 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) 10A member of the Regulation Committee who is directly or indirectly
interested 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-
15committee must disclose the nature of that interest to the meeting.

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

(a) the 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) 20may otherwise take part in any deliberation or decision about
the matter unless at least one-third of the other members at
the meeting decide that the interests disclosed might
prejudicially affect the member’s consideration of the matter.

92I Exercise of functions

(1) 25The Regulation Committee may delegate any of the functions of the
regulator to—

(a) any of its members,

(b) any of its sub-committees, or

(c) any member of staff of the HCA.

(2) 30A sub-committee of the Committee may delegate any function
conferred on it to any member of staff of the HCA.

(3) A 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) 35does not limit the scope of another such power.

92J Recommendations to HCA

(1) The 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) 40a recommendation received from the Regulation Committee
under this section, and

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

(a) 5the economic regulation objective, and

(b) the consumer regulation objective.

(2) The economic regulation objective is—

(a) to ensure that registered providers of social housing are
financially viable and properly managed, and perform their
10functions 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
15investment 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) 20to 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
25to 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) 30The 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
35and 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) 40at 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 45Omit 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 5Omit 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) 10In 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
this section are exercisable by the HCA rather than by the HCA
acting through its Regulation Committee.”

38 15In section 145 (moratorium) omit subsection (4).

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

(2) In subsection (4)—

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

(b) omit paragraph (c).

(3) 20Omit subsection (8).

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

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

(b) omit paragraph (c).

41 In section 174(5) (procedure for consent to disposal of social housing) omit
25paragraph (a).

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

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

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

“(8) 30The 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 In section 216 (consultation on use of intervention powers) omit paragraph
(e).

46 35In 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 In 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) 5In 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) 10In subsection (8) omit paragraph (a).

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

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

(3) Omit subsection (7).

53 (1) 15The Table in section 276 (Part 2: index of defined terms) is amended as
follows.

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

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

(4) 20In 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) Insert the following entries at the appropriate place—

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

(2) In paragraph 1 (appointment of membership) after sub-paragraph (4)
30insert—

“(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) After paragraph 17 insert—

“18 The provisions in this Schedule about the HCA’s committees and
35their 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).”

Part 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),
5in Part 2 of the Table at the end of paragraph 3 omit the entry for the Office
for 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
10Landlords.

House 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.

15Race Relations Act 1976 (c. 74)Race Relations Act 1976 (c. 74)

58 In 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 20In Part 6 of Schedule 1 to the Freedom of Information Act 2000 (public
authorities) omit the entry for the Office for Tenants and Social Landlords.

Housing (Scotland) Act 2010 (asp 17)2010 (asp 17)

60 The Housing (Scotland) Act 2010 is amended as follows.

61 In section 18(2) (co-operation with other regulators: definition of “relevant
25regulators”) in paragraph (a) for “the Office for Tenants and Social
Landlords” substitute “the Regulator of Social Housing”.

62 In section 68(3) (determination of accounting requirements for registered
social landlords: consultation with other bodies) in paragraph (c) for “the
Office for Tenants and Social Landlords” substitute “the Regulator of Social
30Housing”.

Equality Act 2010 (c. 15)2010 (c. 15)

63 In Schedule 19 to the Equality Act 2010 (public authorities) 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

64 (1) The property, rights and liabilities to which the Office is entitled or subject
5immediately 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) 10In 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
15has vested in the HCA under this paragraph is conclusive evidence for all
purposes of that fact.

Employment contracts: transfer of rights and liabilities

65 (1) The rights and liabilities transferred by paragraph 64 include rights or
liabilities under a contract of employment.

(2) 20The 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

66 (1) 25The transfer of property, rights and liabilities by virtue of paragraph 64 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) Anything that—

(a) is done (or has effect as if done) by or in relation to the Office for the
30purposes of, or otherwise in connection with, anything transferred
by paragraph 64, and

(b) has effect immediately before the transfer date,

is 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
35legal proceedings) that—

(a) relates to anything transferred under paragraph 64, and

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

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

(a) 40relates to anything transferred under paragraph 64, and

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