Localism Bill (HL Bill 100)

(b) about the discharge of local public functions that are transferred to
permitted authorities under 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
5made) 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) 10An order under this section may disapply, or modify the application of,
Chapter 4 of Part 1A of the Local Government Act 2000 (changing local
authority governance arrangements) in relation to a county council or district
council to which the order transfers a local public function.

(5) The Secretary of State may not make an order under this section unless the
15Secretary of State considers that it is likely that making the order would—

(a) promote economic development or wealth creation, or

(b) increase local accountability in relation to each local public function
transferred by the order.

(6) For the purposes of subsection (5)(b), in relation to a local public function, local
20accountability is increased if the exercise of the function becomes more
accountable to persons living or working in the area of the permitted authority
to which it is transferred.

(7) The Secretary of State may not make an order under this section unless the
Secretary of State considers that the local public function transferred by the
25order can appropriately be exercised by the permitted authority to which it is
transferred.

(8) The Secretary of State may not make an order under this section transferring a
local public function to a permitted authority unless the authority has
consented to the transfer.

(9) 30Before making an order under this section, the Secretary of State must consult
such persons as the Secretary of State considers appropriate.

16 Delegation of functions by Ministers to permitted authorities

(1) A Minister of the Crown may, to such extent and subject to such conditions as
that Minister thinks fit, delegate to a permitted authority any of the Minister’s
35eligible functions.

(2) A function is eligible for the purposes of subsection (1) 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 Minister of the Crown considers that it can appropriately be
40exercised by the permitted authority.

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

(4) Before delegating a function under subsection (1), the Minister of the Crown
must consult such persons as the Minister considers appropriate.

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

17 Transfer schemes

(1) The Secretary of State may make a scheme for the transfer of property, rights
5or liabilities from the person who, or body which, would have a local public
function but for an order under section 15 to the permitted authority to which
the function is transferred.

(2) A Minister of the Crown may make a scheme for the transfer from the Crown
to a permitted authority of such property, rights or liabilities as the Minister of
10the Crown considers appropriate in consequence of a delegation, or the
variation of a delegation, under section 16 of a function of any Minister of the
Crown to the permitted authority.

(3) A Minister of the Crown may make a scheme for the transfer from a permitted
authority to the Crown of such property, rights or liabilities as the Minister of
15the Crown considers appropriate in consequence of a variation or revocation
of a delegation under section 16 of a function of any Minister of the Crown to
the permitted authority.

(4) The things that may be transferred under a transfer scheme include—

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

(b) 20property acquired, or rights or liabilities arising, after the making of the
order.

(5) A transfer scheme may make consequential, supplementary, incidental and
transitional provision and may in particular make provision—

(a) for a certificate issued by a Minister of the Crown to be conclusive
25evidence that property has been transferred;

(b) creating rights, or imposing liabilities, in relation to property or rights
transferred;

(c) about the continuing effect of things done by or in relation to the
transferor in respect of anything transferred;

(d) 30about the continuation of things (including legal proceedings) in the
process of being done by, on behalf of or in relation to the transferor in
respect of anything transferred;

(e) for references to the transferor in an instrument or other document
relating to anything transferred to be treated as references to the
35transferee;

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

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

(6) A transfer scheme may provide—

(a) 40for modification by agreement;

(b) for modifications to have effect from the date when the original scheme
came into effect.

(7) For the purposes of this section—

(a) an individual who holds employment in the civil service is to be treated
45as 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.

(8) In this section—

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

• “transferee”, in relation to a transfer scheme, means the person to whom
  property, rights or liabilities are transferred by the scheme;

• 5“transferor”, in relation to a transfer scheme, means the person from
  whom property, rights or liabilities are transferred by the scheme;

• “transfer scheme” means a scheme for the transfer of property, rights or
  liabilities under subsection (1), (2) or (3);

• “TUPE regulations” means the Transfer of Undertakings (Protection of
  10Employment) Regulations 2006 (SI 2006/246SI 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.

18 Duty to consider proposals for exercise of powers under sections 15 and 17

(1) 15If the Secretary of State receives a relevant proposal from a permitted
authority, the Secretary of State must—

(a) consider the proposal, and

(b) notify the permitted authority of what action, if any, the Secretary of
State will take in relation to the proposal.

(2) 20The Secretary of State may by regulations specify criteria to which the
Secretary of State must have regard in considering a relevant proposal.

(3) For the purposes of this section, a “relevant proposal” is a proposal—

(a) for the exercise of the Secretary of State’s powers in sections 15 and 17
in relation to the permitted authority, and

(b) 25that is accompanied by such information and evidence as the Secretary
of State may specify by regulations.

(4) Before making regulations under this section, the Secretary of State must
consult such persons as the Secretary of State considers appropriate.

19 Orders under section 15: procedure

(1) 30Before making an order under section 15, the Secretary of State must lay a draft
of the instrument containing the order (the “draft order”) before each House of
Parliament.

(2) The Secretary of State must have regard to—

(a) any representations,

(b) 35any 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 Secretary of State wishes to make
40an order in the terms of the draft order, the Secretary of State 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 Secretary of State may after the laying of such a statement make an order
in the terms of the draft order 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
5order may, at any time after the laying of the 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
10subsection (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 a resolution of that House.

(7) If, after the expiry of the 60-day period, the Secretary of State wishes to make
an order consisting of a version of the draft order with material changes, the
15Secretary of State 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) 20The Secretary of State may after laying a revised draft order and statement
under subsection (7) make an order in the terms of the revised draft order 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
25subsection (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
30in 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
35order.

(12) If a draft of an instrument containing an order under section 15 would, apart
from this subsection, be treated for the purposes of the standing orders of
either House of Parliament as a hybrid instrument, it is to proceed in that
House as if it were not such an instrument.

(13) 40In 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.

(14) In calculating the period mentioned in subsection (13), no account is to be taken
of any time during which Parliament is dissolved or prorogued or during
which either House is adjourned for more than four days.

20 45Interpretation of Chapter

In this Chapter—

Localism BillPage 34

• “enactment” includes an enactment contained in a local Act or comprised
  in subordinate legislation (within the meaning of the Interpretation Act
  1978);

• “Minister of the Crown” has the same meaning as in the Ministers of the
  5Crown Act 1975;

• “local public function”, in relation to a permitted authority, means a
  public function in so far as it relates to—

  (a)

  the permitted authority’s area, or

  (b)

  persons living, working or carrying on activities in that area;

• 10“permitted authority” means—

  (a)

  a county council in England,

  (b)

  a district council,

  (c)

  an economic prosperity board established under section 88 of
  the Local Democracy, Economic Development and
  15Construction Act 2009, or

  (d)

  a combined authority established under section 103 of that Act;

• “public authority” includes a Minister of the Crown or a government
  department;

• “public function” means a function of a public authority that does not
  20consist of a power to make regulations or other instruments of a
  legislative character.

CHAPTER 5 Governance

21 New arrangements with respect to governance of English local authorities

Schedule 2 (new Part 1A of, including Schedule A1 to, the Local Government
25Act 2000) has effect.

22 New local authority governance arrangements: amendments

Schedule 3 (minor and consequential amendments relating to local authority
governance in England) has effect.

23 Changes to local authority governance in England: transitional provision etc

(1) 30The Secretary of State may by order make such transitional, transitory or
saving provision as the Secretary of State considers appropriate in connection
with the coming into force of sections 21 and 22 and Schedules 2 and 3.

(2) An order under subsection (1) may, in particular, include any provision—

(a) relating to local authorities—

(i) 35ceasing to operate executive arrangements or alternative
arrangements under Part 2 of the Local Government Act 2000,
and

(ii) starting to operate executive arrangements or a committee
system under Part 1A of that Act,

(b) 40as to whether, and how, anything done, or in the process of being done,
under any provision of Part 2 of that Act is to be deemed to have been

done, or be in the process of being done, under any provision of Part 1A
of that Act (whether generally or for specified purposes), or

(c) modifying the application of any provision of Chapter 4 of Part 1A of
that Act in relation to a change in governance arrangements by a local
5authority within a specified period.

(3) The reference in subsection (2)(b) to things done includes a reference to things
omitted to be done.

(4) In this section—

• “change in governance arrangements” has the meaning given by section
  109OA of the Local Government Act 2000;

• “local authority” means a county council in England, a district council or
  a London borough council;

• “specified” means specified in an order under this section.

24 Timetables for changing English district councils’ electoral schemes

(1) 15The Local Government and Public Involvement in Health Act 2007 is amended
as follows.

(2) Omit the following provisions (which provide that councils may pass
resolutions to change their electoral schemes only in certain permitted
periods)—

(a) 20section 33(4), (6) and (7) (district councils changing to whole-council
elections),

(b) section 38(4), (6) and (7) (non-metropolitan district councils reverting to
elections by halves), and

(c) section 40(4), (6) and (7) (district councils reverting to elections by
25thirds).

(3) In section 33 (resolution for whole-council elections: requirements) after
subsection (3) insert—

“(3A) The resolution must specify the year for the first ordinary elections of
the council at which all councillors are to be elected.

(3B) 30In the case of a district council for a district in a county for which there
is a county council, the year specified under subsection (3A) may not be
a county-council-elections year; and here “county-council-elections
year” means 2013 and every fourth year afterwards.”

(4) In section 34(2) (years in which whole-council elections to a district council are
35to be held if scheme under section 34 applies) for paragraphs (a) and (b)
substitute—

“(a) the year specified under section 33(3A) in the resolution, and

(b) every fourth year afterwards.”

(5) In section 34 (scheme for whole-council elections) after subsection (4) insert—

“(4A) 40Ordinary elections of councillors of the council under the previous
electoral scheme are to be held in accordance with that scheme in any
year that—

(a) is earlier than the year specified under section 33(3A) in the
resolution for whole-council elections, and

(b) is a year in which, under the previous electoral scheme,
ordinary elections of councillors of the council are due to be
held.

(4B) In subsection (4A) “the previous electoral scheme” means the scheme
5for the ordinary elections of councillors of the council that applied to it
immediately before it passed the resolution for whole-council
elections.”

(6) After section 31 insert—

“31A Minimum period between resolutions to change electoral schemes

10If a council passes a resolution under section 32, 37 or 39 (“the earlier
resolution”) it may not pass another resolution under any of those
sections before the end of five years beginning with the day on which
the earlier resolution is passed.”

(7) In section 57 of the Local Democracy, Economic Development and
15Construction Act 2009 (requests for review of single-member electoral areas by
councils subject to a scheme for whole-council elections) after subsection (4)
(meaning of “subject to a scheme for whole-council elections”) insert—

“(4A) A district council is also “subject to a scheme for whole-council
elections” for those purposes if—

(a) 20section 34 of the Local Government and Public Involvement in
Health Act 2007 (scheme for whole-council elections) applies to
the council, but

(b) by virtue of subsection (4A) of that section (temporary
continuation of previous electoral scheme), not all the members
25of the council are to be elected in a year in which ordinary
elections of members of the council are to be held.”

CHAPTER 6 Predetermination

25 Prior indications of view of a matter not to amount to predetermination etc

(1) Subsection (2) applies if—

(a) 30as a result of an allegation of bias or predetermination, or otherwise,
there is an issue about the validity of a decision of a relevant authority,
and

(b) it is relevant to that issue whether the decision-maker, or any of the
decision-makers, had or appeared to have had a closed mind (to any
35extent) when making the decision.

(2) A decision-maker is not to be taken to have had, or to have appeared to have
had, a closed mind when making the decision just because—

(a) the decision-maker had previously done anything that directly or
indirectly indicated what view the decision-maker took, or would or
40might take, in relation to a matter, and

(b) the matter was relevant to the decision.

(3) Subsection (2) applies in relation to a decision-maker only if that decision-
maker—

(a) is a member (whether elected or not) of the relevant authority, or

(b) is a co-opted member of that authority.

(4) In this section—

• “co-opted member”, in relation to a relevant authority, means a person
  5who is not a member of the authority but who—

  (a)

  is a member of any committee or sub-committee of the
  authority, or

  (b)

  is a member of, and represents the authority on, any joint
  committee or joint sub-committee of the authority,

  10and who is entitled to vote on any question which falls to be decided at
  any meeting of the committee or sub-committee;

• “decision”, in relation to a relevant authority, means a decision made in
  discharging functions of the authority, functions of the authority’s
  executive, functions of a committee of the authority or functions of an
  15officer of the authority (including decisions made in the discharge of
  any of those functions otherwise than by the person to whom the
  function was originally given);

• “elected mayor” has the meaning given by section 9H or 39 of the Local
  Government Act 2000;

• 20“member”—

  (a)

  in relation to the Greater London Authority, means the Mayor
  of London or a London Assembly member, and

  (b)

  in relation to a county council, district council, county borough
  council or London borough council, includes an elected mayor
  25of the council;

• “relevant authority” means—

  (a)

  a county council,

  (b)

  a district council,

  (c)

  a county borough council,

  (d)

  30a London borough Council,

  (e)

  the Common Council of the City of London,

  (f)

  the Greater London Authority,

  (g)

  a National Park authority,

  (h)

  the Broads Authority,

  (i)

  35the Council of the Isles of Scilly,

  (j)

  a parish council, or

  (k)

  a community council.

(5) This section applies only to decisions made after this section comes into force,
but the reference in subsection (2)(a) to anything previously done includes
40things done before this section comes into force.

CHAPTER 7 Standards

26 Amendments of existing provisions

Schedule 4 (which amends the existing provisions relating to the conduct of
local government members and employees in England and makes related
5provision) has effect.

27 Duty to promote and maintain high standards of conduct

(1) A relevant authority must promote and maintain high standards of conduct by
members and co-opted members of the authority.

(2) In this Chapter “co-opted member”, in relation to a relevant authority, means
10a person who is not a member of the authority but who—

(a) is a member of any committee or sub-committee of the authority, or

(b) is a member of, and represents the authority on, any joint committee or
joint sub-committee of the authority,

and who is entitled to vote on any question that falls to be decided at any
15meeting of that committee or sub-committee.

(3) A reference in this Chapter to a joint committee or joint sub-committee of a
relevant authority is a reference to a joint committee on which the authority is
represented or a sub-committee of such a committee.

(4) In this Chapter “relevant authority” means—

(a) 20a county council in England,

(b) a district council,

(c) a London borough council,

(d) a parish council,

(e) the Greater London Authority,

(f) 25the Metropolitan Police Authority,

(g) the London Fire and Emergency Planning Authority,

(h) the Common Council of the City of London in its capacity as a local
authority or police authority,

(i) the Council of the Isles of Scilly,

(j) 30a fire and rescue authority in England constituted by a scheme under
section 2 of the Fire and Rescue Services Act 2004 or a scheme to which
section 4 of that Act applies,

(k) a police authority (in England or in Wales) established under section 3
of the Police Act 1996,

(l) 35a joint authority established by Part 4 of the Local Government Act
1985,

(m) an economic prosperity board established under section 88 of the Local
Democracy, Economic Development and Construction Act 2009,

(n) a combined authority established under section 103 of that Act,

(o) 40the Broads Authority, or

(p) a National Park authority in England established under section 63 of
the Environment Act 1995.

(5) Any reference in this Chapter to a member of a relevant authority—

(a) in the case of a relevant authority to which Part 1A of the Local
Government Act 2000 applies, includes a reference to an elected mayor;

(b) in the case of the Greater London Authority, is a reference to the Mayor
of London or a London Assembly member.

(6) 5Functions that are conferred by this Chapter on a relevant authority to which
Part 1A of the Local Government Act 2000 applies are not to be the
responsibility of an executive of the authority under executive arrangements.

(7) Functions that are conferred by this Chapter on the Greater London Authority
are to be exercisable by the Mayor of London and the London Assembly acting
10jointly on behalf of the Authority.

(8) In this Chapter except section 35—

(a) a reference to a committee or sub-committee of a relevant authority is,
where the relevant authority is the Greater London Authority, a
reference to—

(i) 15a committee or sub-committee of the London Assembly, or

(ii) the standards committee, or a sub-committee of that committee,
established under that section,

(b) a reference to a joint committee on which a relevant authority is
represented is, where the relevant authority is the Greater London
20Authority, a reference to a joint committee on which the Authority, the
London Assembly or the Mayor of London is represented,

(c) a reference to becoming a member of a relevant authority is, where the
relevant authority is the Greater London Authority, a reference to
becoming the Mayor of London or a member of the London Assembly,
25and

(d) a reference to a meeting of a relevant authority is, where the relevant
authority is the Greater London Authority, a reference to a meeting of
the London Assembly;

and in subsection (2)(b) the reference to representing the relevant authority is,
30where the relevant authority is the Greater London Authority, a reference to
representing the Authority, the London Assembly or the Mayor of London.

28 Voluntary codes of conduct

(1) A relevant authority may adopt a code dealing with the conduct that is
expected of members and co-opted members of the authority when they are
35acting in that capacity (referred to in this section as a “code of conduct”).

(2) A relevant authority may—

(a) revise its existing code of conduct,

(b) adopt a code of conduct to replace its existing code of conduct, or

(c) withdraw its existing code of conduct without replacing it.

(3) 40If a written allegation is made to a relevant authority that a member or co-
opted member of the authority has failed, or may have failed, to comply with
its code of conduct, it must—

(a) consider whether it is appropriate to investigate the allegation, and

(b) if it decides that an investigation is appropriate, investigate the
45allegation in such manner as it thinks fit.

(4) If a relevant authority finds that a member or co-opted member of the authority
has failed to comply with its code of conduct (whether or not the finding is