Localism Bill (HL Bill 100)

made following an investigation under this section) it may have regard to the
failure in deciding—

(a) whether to take action in relation to the member or co-opted member,
and

(b) 5what action to take.

(5) A relevant authority must publicise its adoption, revision or withdrawal of a
code of conduct in such manner as it considers is likely to bring the adoption,
revision or withdrawal of the code of conduct to the attention of persons who
live in its area.

(6) 10A relevant authority’s function of adopting, revising or withdrawing a code of
conduct under this section may be discharged only by the authority.

(7) Accordingly—

(a) in the case of an authority to whom section 101 of the Local
Government Act 1972 (arrangements for discharge of functions)
15applies, the function is not a function to which that section applies;

(b) in the case of the Greater London Authority, the function is not a
function to which section 35 (delegation of functions by the Greater
London Authority) applies.

29 Register of interests

(1) 20The monitoring officer of a relevant authority must establish and maintain a
register of interests of members and co-opted members of the authority.

(2) Subject to the provisions of this Chapter, it is for a relevant authority to
determine what is to be entered in the authority’s register.

(3) Nothing in this Chapter requires an entry to be retained in a relevant
25authority’s register once the person concerned—

(a) no longer has the interest, or

(b) is (otherwise than transitorily on re-election or re-appointment) neither
a member nor a co-opted member of the authority.

(4) In the case of a relevant authority that is a parish council, references in this
30Chapter to the authority’s monitoring officer are to the monitoring officer of
the parish council’s principal authority.

(5) The monitoring officer of a relevant authority other than a parish council must
secure—

(a) that a copy of the authority’s register is available for inspection at a
35place in the authority’s area at all reasonable hours, and

(b) that the register is published on the authority’s website.

(6) The monitoring officer of a relevant authority that is a parish council must—

(a) secure that a copy of the parish council’s register is available for
inspection at a place in the principal authority’s area at all reasonable
40hours,

(b) secure that the register is published on the principal authority’s
website, and

(c) provide the parish council with any data it needs to comply with
subsection (7).

(7) A parish council must, if it has a website, secure that its register is published
on its website.

(8) Subsections (5) to (7) are subject to section 32(2).

(9) In this Chapter “principal authority”, in relation to a parish council, means—

(a) 5in the case of a parish council for an area in a district that has a district
council, that district council,

(b) in the case of a parish council for an area in a London borough, the
council of that London borough, and

(c) in the case of a parish council for any other area, the county council for
10the county that includes that area.

(10) In this Chapter “register”, in relation to a relevant authority, means its register
under subsection (1).

30 Disclosure of pecuniary interests on taking office

(1) A member or co-opted member of a relevant authority must, before the end of
1528 days beginning with the day on which the person becomes a member or co-
opted member of the authority, notify the authority’s monitoring officer of any
disclosable pecuniary interests which the person has at the time when the
notification is given.

(2) Where a person becomes a member or co-opted member of a relevant authority
20as a result of re-election or re-appointment, subsection (1) applies only as
regards disclosable pecuniary interests not entered in the authority’s register
when the notification is given.

(3) For the purposes of this Chapter, a pecuniary interest is a “disclosable
pecuniary interest” in relation to a person (“M”) if it is of a description specified
25in regulations made by the Secretary of State and either—

(a) it is an interest of M’s, or

(b) it is an interest of—

(i) M’s spouse or civil partner,

(ii) a person with whom M is living as husband and wife, or

(iii) 30a person with whom M is living as if they were civil partners,

and M is aware that that other person has the interest.

(4) Where a member or co-opted member of a relevant authority gives a
notification for the purposes of subsection (1), the authority’s monitoring
officer is to cause the interests notified to be entered in the authority’s register
35(whether or not they are disclosable pecuniary interests).

31 Pecuniary interests in matters considered at meetings or by a single member

(1) Subsections (2) to (4) apply if a member or co-opted member of a relevant
authority—

(a) is present at a meeting of the authority or of any committee, sub-
40committee, joint committee or joint sub-committee of the authority,

(b) has a disclosable pecuniary interest in any matter to be considered, or
being considered, at the meeting, and

(c) is aware that the condition in paragraph (b) is met.

(2) If the interest is not entered in the authority’s register, the member or co-opted
member must disclose the interest to the meeting, but this is subject to section
32(3).

(3) If the interest is not entered in the authority’s register and is not the subject of
5a pending notification, the member or co-opted member must notify the
authority’s monitoring officer of the interest before the end of 28 days
beginning with the date of the disclosure.

(4) The member or co-opted member may not—

(a) participate, or participate further, in any discussion of the matter at the
10meeting, or

(b) participate in any vote, or further vote, taken on the matter at the
meeting,

but this is subject to section 33.

(5) In the case of a relevant authority to which Part 1A of the Local Government
15Act 2000 applies and which is operating executive arrangements, the reference
in subsection (1)(a) to a committee of the authority includes a reference to the
authority’s executive and a reference to a committee of the executive.

(6) Subsections (7) and (8) apply if—

(a) a function of a relevant authority may be discharged by a member of
20the authority acting alone,

(b) the member has a disclosable pecuniary interest in any matter to be
dealt with, or being dealt with, by the member in the course of
discharging that function, and

(c) the member is aware that the condition in paragraph (b) is met.

(7) 25If the interest is not entered in the authority’s register and is not the subject of
a pending notification, the member must notify the authority’s monitoring
officer of the interest before the end of 28 days beginning with the date when
the member becomes aware that the condition in subsection (6)(b) is met in
relation to the matter.

(8) 30The member must not take any steps, or any further steps, in relation to the
matter (except for the purpose of enabling the matter to be dealt with otherwise
than by the member).

(9) Where a member or co-opted member of a relevant authority gives a
notification for the purposes of subsection (3) or (7), the authority’s monitoring
35officer is to cause the interest notified to be entered in the authority’s register
(whether or not it is a disclosable pecuniary interest).

(10) Standing orders of a relevant authority may provide for the exclusion of a
member or co-opted member of the authority from a meeting while any
discussion or vote takes place in which, as a result of the operation of
40subsection (4), the member or co-opted member may not participate.

(11) For the purpose of this section, an interest is “subject to a pending notification”
if—

(a) under this section or section 30, the interest has been notified to a
relevant authority’s monitoring officer, but

(b) 45has not been entered in the authority’s register in consequence of that
notification.

32 Sensitive interests

(1) Subsections (2) and (3) apply where—

(a) a member or co-opted member of a relevant authority has an interest
(whether or not a disclosable pecuniary interest), and

(b) 5the nature of the interest is such that the member or co-opted member,
and the authority’s monitoring officer, consider that disclosure of the
details of the interest could lead to the member or co-opted member, or
a person connected with the member or co-opted member, being
subject to violence or intimidation.

(2) 10If the interest is entered in the authority’s register, copies of the register that are
made available for inspection, and any published version of the register, must
not include details of the interest (but may state that the member or co-opted
member has an interest the details of which are withheld under this
subsection).

(3) 15If section 31(2) applies in relation to the interest, that provision is to be read as
requiring the member or co-opted member to disclose not the interest but
merely the fact that the member or co-opted member has a disclosable
pecuniary interest in the matter concerned.

33 Dispensations from section 31(4)

(1) 20A relevant authority may, on a written request made to the proper officer of the
authority by a member or co-opted member of the authority, grant a
dispensation relieving the member or co-opted member from either or both of
the restrictions in section 31(4) in cases described in the dispensation.

(2) A relevant authority may grant a dispensation under this section only if, after
25having had regard to all relevant circumstances, the authority—

(a) considers that without the dispensation the number of persons
prohibited by section 31(4) from participating in any particular
business would be so great a proportion of the body transacting the
business as to impede the transaction of the business,

(b) 30considers that without the dispensation the representation of different
political groups on the body transacting any particular business would
be so upset as to alter the likely outcome of any vote relating to the
business,

(c) considers that granting the dispensation is in the interests of persons
35living in the authority’s area,

(d) if it is an authority to which Part 1A of the Local Government Act 2000
applies and is operating executive arrangements, considers that
without the dispensation each member of the authority’s executive
would be prohibited by section 31(4) from participating in any
40particular business to be transacted by the authority’s executive, or

(e) considers that it is otherwise appropriate to grant a dispensation.

(3) A dispensation under this section must specify the period for which it has
effect, and the period specified may not exceed four years.

(4) Section 31(4) does not apply in relation to anything done for the purpose of
45deciding whether to grant a dispensation under this section.

34 Offences

(1) A person commits an offence if, without reasonable excuse, the person—

(a) fails to comply with an obligation imposed on the person by section
30(1) or 31(2), (3) or (7),

(b) 5participates in any discussion or vote in contravention of section 31(4),
or

(c) takes any steps in contravention of section 31(8).

(2) A person commits an offence if under section 30(1) or 31(2), (3) or (7) the person
provides information that is false or misleading and the person—

(a) 10knows that the information is false or misleading, or

(b) is reckless as to whether the information is true and not misleading.

(3) A person who is guilty of an offence under this section is liable on summary
conviction to a fine not exceeding level 5 on the standard scale.

(4) A court dealing with a person for an offence under this section may (in
15addition to any other power exercisable in the person’s case) by order
disqualify the person, for a period not exceeding five years, for being or
becoming (by election or otherwise) a member or co-opted member of the
relevant authority in question or any other relevant authority.

(5) A prosecution for an offence under this section is not to be instituted except by
20or on behalf of the Director of Public Prosecutions.

(6) Proceedings for an offence under this section may be brought within a period
of 12 months beginning with the date on which evidence sufficient in the
opinion of the prosecutor to warrant the proceedings came to the prosecutor’s
knowledge.

(7) 25But no such proceedings may be brought more than three years—

(a) after the commission of the offence, or

(b) in the case of a continuous contravention, after the last date on which
the offence was committed.

(8) A certificate signed by the prosecutor and stating the date on which such
30evidence came to the prosecutor’s knowledge is conclusive evidence of that
fact; and a certificate to that effect and purporting to be so signed is to be
treated as being so signed unless the contrary is proved.

(9) The Local Government Act 1972 is amended as follows.

(10) In section 86(1)(b) (authority to declare vacancy where member becomes
35disqualified otherwise than in certain cases) after “2000” insert “or section 34 of
the Localism Act 2011”.

(11) In section 87(1)(ee) (date of casual vacancies)—

(a) after “2000” insert “or section 34 of the Localism Act 2011 or”, and

(b) after “decision” insert “or order”.

(12) 40The Greater London Authority Act 1999 is amended as follows.

(13) In each of sections 7(b) and 14(b) (Authority to declare vacancy where
Assembly member or Mayor becomes disqualified otherwise than in certain
cases) after sub-paragraph (i) insert—

“(ia) under section 34 of the Localism Act 2011,”.

(14) In section 9(1)(f) (date of casual vacancies)—

(a) before “or by virtue of” insert “or section 34 of the Localism Act 2011”,
and

(b) after “that Act” insert “of 1998 or that section”.

35 5Delegation of functions by Greater London Authority

(1) The Mayor of London and the London Assembly, acting jointly, may arrange
for any of the functions conferred on them by or under this Chapter to be
exercised on their behalf by—

(a) a member of staff of the Greater London Authority, or

(b) 10a committee appointed in accordance with provision made by virtue of
this section.

(2) Standing orders of the Greater London Authority may make provision
regulating the exercise of functions by any member of staff of the Authority
pursuant to arrangements under subsection (1).

(3) 15Standing orders of the Greater London Authority may make provision for the
appointment of a committee (“the standards committee”) to exercise functions
conferred on the Mayor of London and the London Assembly by or under this
Chapter in accordance with arrangements under subsection (1).

(4) Standing orders of the Greater London Authority may make provision about
20the membership and procedure of the standards committee.

(5) The provision that may be made under subsection (4) includes—

(a) provision for the standards committee to arrange for the discharge of
its functions by a sub-committee of that committee;

(b) provision about the membership and procedure of such a sub-
25committee.

(6) Subject to subsection (7), the standards committee and any sub-committee of
that committee—

(a) is not to be treated as a committee or (as the case may be) sub-
committee of the London Assembly for the purposes of the Greater
30London Authority Act 1999, but

(b) is a committee or (as the case may be) sub-committee of the Greater
London Authority for the purposes of Part 3 of the Local Government
Act 1974 (investigations by Commission for Local Administration in
England).

(7) 35Sections 6(3)(a) (failure to attend meetings) and 73(6) (functions of monitoring
officer) of the Greater London Authority Act 1999 apply to the standards
committee or any sub-committee of that committee as they apply to a
committee of the London Assembly or any sub-committee of such a committee.

(8) Part 5A of the Local Government Act 1972 (access to meetings and documents)
40applies to the standards committee or any sub-committee of that committee as
if—

(a) it were a committee or (as the case may be) a sub-committee of a
principal council within the meaning of that Part, and

(b) the Greater London Authority were a principal council in relation to
45that committee or sub-committee.

(9) Arrangements under this section for the exercise of any function by—

(a) a member of staff of the Greater London Authority, or

(b) the standards committee,

do not prevent the Mayor of London and the London Assembly from
exercising those functions.

(10) 5References in this section to the functions of the Mayor of London and the
London Assembly conferred by or under this Chapter do not include their
functions under this section.

(11) In this section “member of staff of the Greater London Authority” has the same
meaning as in the Greater London Authority Act 1999 (see section 424(1) of that
10Act).

36 Amendment of section 27 following abolition of police authorities

In section 27(4) (which defines “relevant authority” for the purposes of this
Chapter) omit—

(a) paragraph (f) (the Metropolitan Police Authority), and

(b) 15paragraph (k) (police authorities).

37 Transitional provision

(1) An order under section 239(2) may, in particular, provide for any provision
made by or under Part 3 of the Local Government Act 2000 to have effect with
modifications in consequence of any partial commencement of any of the
20amendments to, or repeals of, provisions of that Part made by Schedule 4.

(2) An order under section 239(2) may, in particular, make provision for an
allegation or a case that is being investigated under Part 3 of the Local
Government Act 2000 by the Standards Board for England or an ethical
standards officer—

(a) 25to be referred to an authority of a kind specified in or determined in
accordance with the order;

(b) to be dealt with in accordance with provision made by the order.

(3) The provision that may be made by virtue of subsection (2)(b) includes—

(a) provision corresponding to any provision made by or under Part 3 of
30the Local Government Act 2000;

(b) provision applying any provision made by or under that Part with or
without modifications.

CHAPTER 8 Pay accountability

38 Pay policy statements

(1) 35A relevant authority must prepare a pay policy statement for the financial year
2012-2013 and each subsequent financial year.

(2) A pay policy statement for a financial year must set out the authority’s policies
for the financial year relating to—

(a) the remuneration of its chief officers,

(b) 40the remuneration of its lowest-paid employees, and

(c) the relationship between—

(i) the remuneration of its chief officers, and

(ii) the remuneration of its employees who are not chief officers.

(3) The statement must state—

(a) 5the definition of “lowest-paid employees” adopted by the authority for
the purposes of the statement, and

(b) the authority’s reasons for adopting that definition.

(4) The statement must include the authority’s policies relating to—

(a) the level and elements of remuneration for each chief officer,

(b) 10remuneration of chief officers on recruitment,

(c) increases and additions to remuneration for each chief officer,

(d) the use of performance related pay for chief officers,

(e) the use of bonuses for chief officers,

(f) the approach to the payment of chief officers on their ceasing to hold
15office under or to be employed by the authority, and

(g) the publication of and access to information relating to remuneration of
chief officers.

(5) A pay policy statement for a financial year may also set out the authority’s
policies for the financial year relating to the other terms and conditions
20applying to the authority’s chief officers.

39 Supplementary provisions relating to statements

(1) A relevant authority’s pay policy statement must be approved by a resolution
of the authority before it comes into force.

(2) The first statement must be prepared and approved before the end of 31st
25March 2012.

(3) Each subsequent statement must be prepared and approved before the end of
the 31st March immediately preceding the financial year to which it relates.

(4) A relevant authority may by resolution amend its pay policy statement
(including after the beginning of the financial year to which it relates).

(5) 30As soon as is reasonably practicable after approving or amending a pay policy
statement, the authority must publish the statement or the amended statement
in such manner as it thinks fit (which must include publication on the
authority’s website).

40 Guidance

(1) 35A relevant authority in England must, in performing its functions under
section 38 or 39, have regard to any guidance issued or approved by the
Secretary of State.

(2) A relevant authority in Wales must, in performing its functions under section
38 or 39, have regard to any guidance issued or approved by the Welsh
40Ministers.

41 Determinations relating to remuneration etc

(1) This section applies to a determination that—

(a) is made by a relevant authority in a financial year beginning on or after
1st April 2012 and

(b) 5relates to the remuneration of or other terms and conditions applying
to a chief officer of the authority.

(2) The relevant authority must comply with its pay policy statement for the
financial year in making the determination.

(3) Any power of a fire and rescue authority within section 43(1)(i) to appoint
10officers and employees is subject to the requirement in subsection (2).

(4) In section 112 of the Local Government Act 1972 (appointment of staff) after
subsection (2) insert—

“(2A) A local authority’s power to appoint officers on such reasonable terms
and conditions as the authority thinks fit is subject to section 41 of the
15Localism Act 2011 (requirement for determinations relating to terms
and conditions of chief officers to comply with pay policy statement).”

42 Exercise of functions

(1) The functions conferred on a relevant authority by this Chapter are not to be
the responsibility of an executive of the authority under executive
20arrangements.

(2) Section 101 of the Local Government Act 1972 (arrangements for discharge of
functions by local authorities) does not apply to the function of passing a
resolution under this Chapter.

(3) The function of a fire and rescue authority within section 43(1)(i) of passing a
25resolution under this Chapter may not be delegated by the authority.

43 Interpretation

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

(a) a county council,

(b) a county borough council,

(c) 30a district council,

(d) a London borough council,

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

(f) the Council of the Isles of Scilly,

(g) 35the London Fire and Emergency Planning Authority,

(h) a metropolitan county fire and rescue authority, or

(i) a fire and rescue authority 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.

(2) 40In this Chapter “chief officer”, in relation to a relevant authority, means each of
the following—

(a) the head of its paid service designated under section 4(1) of the Local
Government and Housing Act 1989;

(b) its monitoring officer designated under section 5(1) of that Act;

(c) a statutory chief officer mentioned in section 2(6) of that Act;

(d) a non-statutory chief officer mentioned in section 2(7) of that Act;

(e) a deputy chief officer mentioned in section 2(8) of that Act.

(3) 5In this Chapter “remuneration”, in relation to a chief officer and a relevant
authority, means—

(a) the chief officer’s salary or, in the case of a chief officer engaged by the
authority under a contract for services, payments made by the
authority to the chief officer for those services,

(b) 10any bonuses payable by the authority to the chief officer,

(c) any charges, fees or allowances payable by the authority to the chief
officer,

(d) any benefits in kind to which the chief officer is entitled as a result of
the chief officer’s office or employment,

(e) 15any increase in or enhancement of the chief officer’s pension
entitlement where the increase or enhancement is as a result of a
resolution of the authority, and

(f) any amounts payable by the authority to the chief officer on the chief
officer ceasing to hold office under or be employed by the authority,
20other than amounts that may be payable by virtue of any enactment.

(4) In this Chapter “terms and conditions”, in relation to a chief officer and a
relevant authority, means the terms and conditions on which the chief officer
holds office under or is employed by the authority.

(5) References in this Chapter to the remuneration of, or the other terms and
25conditions applying to, a chief officer include—

(a) the remuneration that may be provided to, or the terms and conditions
that may apply to, that chief officer in the future, and

(b) the remuneration that is to be provided to, or the terms and conditions
that are to apply to, chief officers of that kind that the authority may
30appoint in the future.

(6) In this Chapter “remuneration”, in relation to a relevant authority and an
employee of its who is not a chief officer, means—

(a) the employee’s salary,

(b) any bonuses payable by the authority to the employee,

(c) 35any allowances payable by the authority to the employee,

(d) any benefits in kind to which the employee is entitled as a result of the
employee’s employment,

(e) any increase in or enhancement of the employee’s pension entitlement
where the increase or enhancement is as a result of a resolution of the
40authority, and

(f) any amounts payable by the authority to the employee on the employee
ceasing to be employed by the authority, other than any amounts that
may be payable by virtue of any enactment.

(7) References in this Chapter to the remuneration of an employee who is not a
45chief officer include—

(a) the remuneration that may be provided to that employee in the future,
and

(b) the remuneration that is to be provided to employees of the same kind
that the authority may employ in the future.