Localism Bill (HL Bill 100)

(8) In this Chapter—

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

• “financial year” means the period of 12 months ending with 31st March in
  5any year.

CHAPTER 9 Commission for Local Administration in England

44 Arrangements for provision of services and discharge of functions

(1) After section 33ZA of the Local Government Act 1974 insert—

“33ZB Arrangements for provision of administrative and other services

(1) 10Arrangements involving the Commission may be entered into by
persons within subsection (4) for the provision of administrative,
professional or technical services by any one or more of the parties for
any one or more of the parties, whether for consideration or otherwise.

(2) For the purposes of subsection (1), arrangements for the provision of
15services involve the Commission if the Commission is one of the parties
to the arrangements and at least one of the following conditions is
met—

(a) the Commission is the party, or one of the parties, by whom the
services are to be provided;

(b) 20the Commission is the party, or one of the parties, to whom the
services are to be provided.

(3) The arrangements that may be entered into under subsection (1)
include arrangements for—

(a) the Commission, or

(b) 25the Commission jointly with any one or more of the parties,

to have the function of discharging, on behalf of a party, any function
of that party which is of an administrative, professional or technical
nature.

(4) The persons within this subsection are—

(a) 30the Commission,

(b) the Parliamentary Commissioner,

(c) the Health Service Commissioner for England, and

(d) the person administering a scheme approved under Schedule 2
to the Housing Act 1996 (scheme for enabling complaints to be
35investigated by a housing ombudsman).”

(2) In paragraph 13 of Schedule 4 to the Local Government Act 1974 (delegation
by Local Commissioners) after sub-paragraph (2) insert—

“(3) Any function of the Commission may be discharged on the
Commission’s behalf—

(a) 40by any person authorised by the Commission to do so, and

(b) to the extent so authorised.

(4) Sub-paragraph (3) does not affect the responsibility of the
Commission for the discharge of the function.”

CHAPTER 10 Miscellaneous repeals

45 Repeal of duties relating to promotion of democracy

5Chapter 1 of Part 1 of the Local Democracy, Economic Development and
Construction Act 2009 (duties relating to promotion of democracy) is repealed.

46 Repeal of provisions about petitions to local authorities

Chapter 2 of Part 1 of the Local Democracy, Economic Development and
Construction Act 2009 (petitions to local authorities) is repealed.

47 10Schemes to encourage domestic waste reduction by payments and charges

The following provisions are repealed—

(a) section 71(1) of, and Schedule 5 to, the Climate Change Act 2008 (which
amend the Environmental Protection Act 1990 to enable waste
collection authorities to make waste reduction schemes, but which have
15never been in force), and

(b) sections 71(2) and (3) and 72 to 75 of that Act (which provide for the
provisions mentioned in paragraph (a) to be piloted and then either
brought into force, with or without amendments, or repealed).

Part 2 20EU fines

48 Power to require public authorities to make payments in respect of certain EU
financial sanctions

(1) A Minister of the Crown may, in accordance with the provisions of this Part,
require public authorities to make payments of amounts determined by a
25Minister of the Crown in respect of an EU financial sanction to which this Part
applies.

(2) A requirement to make a payment under this Part—

(a) may only be imposed on a public authority if—

(i) the authority has been designated under section 52; and

(ii) 30the EU financial sanction concerned is one to which the
designation applies; and

(b) must be imposed by a notice given to the authority under section 56
(referred to in this Part as a final notice).

(3) If a final notice is registered in accordance with rules of court or any practice
35direction, it is enforceable in the same manner as an order of the High Court.

(4) Any sums paid by a public authority under this Part are to be paid into the
Consolidated Fund.

(5) In this Part—

(a) “EU financial sanction” means a sanction consisting of a lump sum or
penalty payment (or both) imposed by the Court of Justice in Article
260(2) proceedings for an infraction of EU law;

(b) 5“infraction of EU law”, in relation to an EU financial sanction, means
the failure to comply with a judgment of the Court of Justice given in
proceedings under Article 258 or 259 of the Treaty on the Functioning
of the European Union; and

(c) “Article 260(2) proceedings” means proceedings under Article 260(2) of
10that Treaty.

49 Duty of the Secretary of State to issue a policy statement

(1) The Secretary of State must publish a statement of policy with respect to—

(a) the designation of public authorities under section 52;

(b) the imposition and variation of requirements to make payments under
15this Part; and

(c) such other matters relating to the operation of the provisions of this
Part as the Secretary of State may think appropriate to include in the
statement.

(2) The Secretary of State may from time to time revise and republish the
20statement of policy required by this section.

(3) A revised statement of policy may include saving or transitional provisions
relating to the continued application for any purpose of any provisions of an
earlier published version of the statement.

(4) The Secretary of State must consult such persons as the Secretary of State
25considers appropriate before publishing, or revising and republishing, the
statement of policy required by this section.

(5) In exercising functions under this Part in relation to an EU financial sanction
which has been or may be imposed on the United Kingdom—

(a) a Minister of the Crown, and

(b) 30a panel established under section 53,

must have regard to the statement of policy most recently published under this
section.

50 The EU financial sanctions to which Part

2

applies

(1) 35This Part applies to any EU financial sanction imposed on the United Kingdom
after the commencement of this Part, subject to subsection (2).

(2) If a Minister of the Crown gives a certificate—

(a) specifying a part of an EU financial sanction, and

(b) stating that this Part is not to apply to that part of the sanction,

40this Part applies to that EU financial sanction as if it did not include that part.

(3) A certificate under subsection (2)—

(a) may make specific provision about the application of this Part to any of
the following—

(i) the lump sum (if any) paid by the United Kingdom;

(ii) any periodic payment due from the United Kingdom under the
terms of the EU financial sanction before the certificate is given;
and

(iii) any subsequent periodic payment that may fall due from the
5United Kingdom under those terms; and

(b) must be given in such form and published in such manner as the
Minister of the Crown giving it thinks fit.

(4) Any provision under subsection (3)(a)(iii) that is made in a certificate under
subsection (2) may be varied (including in relation to its effect in relation to any
10periodic payment that has become due from the United Kingdom since the
earlier certificate) by a further certificate under subsection (2).

51 Meaning of “public authority” and related terms

(1) This section defines various terms used in this Part.

(2) “Public authority” means—

(a) 15a local authority to which subsection (3) applies; or

(b) any other person or body which has any non-devolved functions.

(3) This subsection applies to—

(a) any of the following in England—

(i) a county council, district council or London borough council;

(ii) 20the Common Council of the City of London (in its capacity as a
local authority);

(iii) the Greater London Authority; and

(iv) the Council of the Isles of Scilly;

(b) a council constituted under section 2 of the Local Government etc.
25(Scotland) Act 1994;

(c) a district council within the meaning of the Local Government Act
(Northern Ireland) 1972;

(d) a council of a county or county borough in Wales.

(4) References to functions are to functions of a public nature.

(5) 30References to non-devolved functions are to functions which are not devolved
functions.

(6) References to devolved functions are to—

(a) Scottish devolved functions, that is to say functions the exercise of
which would be within devolved competence (within the meaning of
35section 54 of the Scotland Act 1998);

(b) Northern Ireland devolved functions, that is to say functions which
could be conferred by provision included in an Act of the Northern
Ireland Assembly made without the consent of the Secretary of State
(see sections 6 to 8 of the Northern Ireland Act 1998); or

(c) 40Welsh devolved functions, that is to say functions which are exercisable
in relation to Wales and could be conferred by provision falling within
the legislative competence of the National Assembly for Wales as
defined in section 108 of the Government of Wales Act 2006.

(7) References to a public authority with mixed functions are to a public authority
45which has both non-devolved and devolved functions.

(8) The “appropriate national authority”, in relation to a public authority with
mixed functions, means the following national authority or authorities
(according to whichever one or more of the following paragraphs apply to that
public authority)—

(a) 5the Scottish Ministers, if the public authority has any Scottish devolved
functions;

(b) the relevant Northern Ireland department, if the public authority has
any Northern Ireland devolved functions; and

(c) the Welsh Ministers, if the public authority has any Welsh devolved
10functions.

52 Designation of public authorities

(1) A Minister of the Crown may by order designate a public authority for the
purposes of this Part.

(2) The order must—

(a) 15specify the public authority by name;

(b) identify any EU financial sanction to which the designation applies;
and

(c) describe the activities of the authority which are covered by the
designation.

(3) 20The order may identify an EU financial sanction for the purposes of subsection
(2)(b) by—

(a) specifying an EU financial sanction that has been imposed on the
United Kingdom;

(b) specifying any Article 260(2) proceedings that have been commenced
25and providing that the designation is to apply to any EU financial
sanction that may be imposed on the United Kingdom in those
proceedings;

(c) specifying a judgment of the Court of Justice finding that the United
Kingdom has failed to comply with an EU obligation and providing
30that the designation is to apply to any EU financial sanction that may
be imposed on the United Kingdom for failing to comply with that
judgment; or

(d) specifying or describing any proceedings under Article 258 or 259 of the
Treaty on the Functioning of the European Union that have been or
35may be commenced and providing that the designation is to apply to
any EU financial sanction that may be imposed on the United Kingdom
for failing to comply with a judgment of the Court of Justice given in
those proceedings.

(4) The order may, for the purposes of subsection (3)(d), describe any proceedings
40under Article 258 or 259 that may be commenced by reference to the subject-
matter of—

(a) a Reasoned Opinion addressed to the United Kingdom under Article
258 or 259 (as the case may be); or

(b) any other document sent to the Government of the United Kingdom by
45the Commission of the European Union or by another member State
which gives notice to the Government of the possibility of proceedings
being commenced against the United Kingdom.

(5) The activities described for the purposes of subsection (2)(c) must be activities
of the public authority which—

(a) are carried out in the exercise of non-devolved functions of the public
authority; and

(b) 5take place after the provisions of the order describing the activities
come into force.

(6) The following may not be designated under this section—

(a) the House of Commons, the House of Lords, the Scottish Parliament,
the Northern Ireland Assembly or the National Assembly for Wales;

(b) 10a Minister of the Crown or a United Kingdom government department;

(c) a member of the Scottish Executive;

(d) the First Minister or the deputy First Minister for Northern Ireland, a
Northern Ireland Minister or a Northern Ireland Department;

(e) a member of the Welsh Assembly Government;

(f) 15a court or tribunal.

(7) Before making an order designating a public authority a Minister of the Crown
must consult—

(a) the public authority concerned; and

(b) if it is a public authority with mixed functions, the appropriate national
20authority.

(8) In sections 54 to 56 references to “acts”, in relation to a public authority which
has been designated under this section, are to acts within a description of
activities covered by the designation.

53 Establishment of independent panel

(1) 25This section applies where—

(a) an EU financial sanction to which this Part applies has been imposed by
the Court of Justice; and

(b) at least one public authority has been designated under section 52 and
the EU financial sanction is one to which the designation applies.

(2) 30A Minister of the Crown must establish a panel for the purpose of carrying out
any functions it may be given by or under any provision of this Part in relation
to that EU financial sanction.

(3) The panel must be established before any warning notice is given to a public
authority in relation to that EU financial sanction.

(4) 35The panel is to consist of one or more individuals appointed by a Minister of
the Crown who appear to a Minister of the Crown to have suitable
qualifications, expertise or experience to carry out their duties.

(5) A Minister of the Crown may invite nominations for appointment to the panel
from such organisations as a Minister of the Crown considers appropriate.

(6) 40The validity of any acts of the panel are not affected by a vacancy among its
members.

(7) A Minister of the Crown may pay to a member of the panel such fees,
allowances or expenses as a Minister of the Crown may determine.

(8) A Minister of the Crown may provide such staff, accommodation or other
facilities as a Minister of the Crown may consider necessary to enable the panel
to carry out its functions.

54 Warning notices

(1) 5Before a public authority which has been designated under section 52 can be
required to make any payment under this Part in respect of an EU financial
sanction to which the designation applies—

(a) a Minister of the Crown must give a warning notice under this section
to the public authority;

(b) 10the procedures set out in the warning notice (with any changes made
under subsection (9)) must be followed; and

(c) a Minister of the Crown must determine the matters mentioned in
section 55(4).

(2) A warning notice is a notice stating that a Minister of the Crown, having regard
15to the judgment of the Court of Justice imposing the EU financial sanction,
believes—

(a) that acts of the authority may have caused or contributed to the
infraction of EU law for which the EU financial sanction was imposed,
and

(b) 20that, if acts of the authority did cause or contribute to that infraction of
EU law, it would be appropriate to consider requiring the authority to
make payments under this Part (which may be or include ongoing
payments) in respect of that financial sanction.

(3) The warning notice must also—

(a) 25identify the EU financial sanction to which the notice relates;

(b) specify the total amount of that sanction (see subsection (7));

(c) if that sanction is or includes a penalty payment, specify the amount
and frequency of any periodic payments that fall due from the United
Kingdom under the terms of the penalty payment (see subsection (8));

(d) 30set out the reasons for making the statement required by subsection (2);

(e) set out the proposed procedures and arrangements for determining the
matters mentioned in section 55(4) (which may include arrangements
for securing that matters arising under the notice are dealt together
with matters arising under other warning notices given to other public
35authorities in respect of the same EU financial sanction);

(f) propose a timetable for those procedures and for any steps to be taken
by the panel or a Minister of the Crown before any requirement to make
a payment can be imposed on the authority;

(g) invite the authority to make representations to a Minister of the Crown
40about the matters mentioned in paragraphs (e) and (f);

(h) invite the authority to make representations to the panel (with any
supporting evidence) about anything the authority considers relevant
to the matters mentioned in section 55(4), including its response to any
representations made (and any supporting evidence submitted) to the
45panel —

(i) by a Minister of the Crown or a government department
(whether in relation to matters arising from the notice or
matters arising from any other warning notice given to another
public authority in relation to the same EU financial sanction);

(ii) by another public authority which has been given a warning
notice in relation to the same EU financial sanction; or

(iii) by the appropriate national authority in response to an
invitation under paragraph (j) included in the notice; and

(j) 5if the authority has mixed functions, invite the appropriate national
authority to make representations about anything contained in or
arising from the notice.

(4) The warning notice may contain other such information as the Minister of the
Crown giving it considers appropriate.

(5) 10Before a Minister of the Crown gives a warning notice to the authority, the
Minister of the Crown must consult the panel as to the contents of the notice
(including in particular the proposed procedures and timetable mentioned in
subsection (3)(e) and (f)).

(6) If the authority has mixed functions, a Minister of the Crown must—

(a) 15consult the appropriate national authority before deciding to give a
warning notice to the authority; and

(b) give the appropriate national authority a copy of any warning notice
the Minister of the Crown decides to give.

(7) In subsection (3)(b) the “total amount of the sanction” means the sum of the
20following—

(a) the amount of the lump sum (if any) due from the United Kingdom
under the terms of the EU financial sanction (disregarding any amount
that falls to be excluded from the lump sum by virtue of section 50(2));
and

(b) 25the total amount of the periodic payments (if any) which have fallen
due from the United Kingdom on or before a day specified in the notice
(disregarding any amount that falls to be excluded from any of those
payments by virtue of section 50(2);

and the day specified for the purposes of paragraph (b) must be no later than
30the day on which the warning notice is given to the authority.

(8) The periodic payments to be taken into account for the purposes of subsection
(3)(c) do not include—

(a) any periodic payment taken into account in calculating the total
amount of the sanction for the purposes of subsection (3)(b); or

(b) 35any periodic payment, or any part of a periodic payment, that falls to
be excluded from the EU financial sanction by virtue of section 50(2).

(9) A Minister of the Crown may, after considering any representations made by
the authority under subsection (3)(g) but before the matters mentioned in
section 55(4) are determined, give the authority—

(a) 40a notice stating any changes that the Minister has decided to make to
the procedures or timetable as originally set out in the warning notice
under subsection (3)(e) and (f); and

(b) a copy of the warning notice incorporating those changes.

(10) A Minister of the Crown must consult the panel before making any changes
45under subsection (9).

(11) A warning notice given to a public authority may be withdrawn at any time
before the matters mentioned in section 55(4) are determined, but this does not

prevent another warning notice being given to the authority in relation to the
same EU financial sanction.

(12) In this section and section 55 “the panel” means the panel established under
section 53 to deal with the EU financial sanction to which the notice relates.

55 5Matters to be determined before a final notice is given

(1) This section applies where—

(a) a warning notice has been given to a public authority; and

(b) the panel has considered all representations made to it under the
procedures set out in that notice.

(2) 10The panel must make, to a Minister of the Crown, a report on the matters to
which the representations made to the panel relate.

(3) The report—

(a) may be published by the panel in such manner as the panel thinks fit
and, if not published by the panel, must be published by the Minister
15of the Crown to whom it is made in such manner as the Minister of the
Crown thinks fit;

(b) must include recommendations as to the determination of the matters
mentioned in subsection (4)(a) and (b);

(c) if the authority has made representations to the panel about anything
20the authority considers relevant to any of the matters mentioned in
paragraphs (c) to (e) of subsection (4), must include recommendations
as to the determination of the matters mentioned in those paragraphs;
and

(d) must include the panel’s reasons for any recommendations included in
25the report.

(4) After having had regard to the report, a Minister of the Crown must determine
the following matters—

(a) whether any acts of the authority did cause or contribute to the
infraction of EU law concerned and, in relation to any periodic
30payments mentioned in subsection (3)(c) of section 54, whether those
acts have continued and will continue to do so;

(b) the proportion of—

(i) the total amount of the sanction (as specified under subsection
(3)(b) of that section), and

(ii) 35any periodic payments (as specified under subsection (3)(c) of
that section),

that, in the light of the acts of the authority which are determined to
have had or to be having an effect mentioned in paragraph (a), is to be
regarded as reflecting the authority’s share of the responsibility for the
40infraction of EU law concerned or, in relation to any such periodic
payments, the continuing infraction of EU law concerned;

(c) whether the authority should be required to make any payment or
payments in respect of the EU financial sanction;

(d) if so, what payment or payments the authority should make towards—

(i) 45the total amount of the sanction specified under subsection
(3)(b) of that section; and

(ii) any periodic payments specified under subsection (3)(c) of that
section; and

(e) when any such payment or payments should be made.

(5) In determining the matters mentioned in subsection (4)(c), (d) and (e) the
Minister of the Crown must have regard to—

(a) the effect on the authority’s finances of any amount it may be required
5to pay and in particular, if the authority has mixed functions, the need
to avoid any prejudicial effect on the performance by the authority of
its devolved functions;

(b) the determination under subsection (4)(b); and

(c) any other relevant considerations.

(6) 10Before making a final decision on the matters mentioned in subsection (4)(c),
(d) and (e), the Minister of the Crown must invite—

(a) representations from the authority about the potential effect on its
finances and, if it has mixed functions, the effect on its devolved
functions of any amount it may be required to pay; and

(b) 15if the authority has mixed functions, representations from the
appropriate national authority.

56 Final notices

(1) A Minister of the Crown may give a final notice to a public authority only if a
Minister of the Crown has decided in accordance with section 55 to impose a
20requirement under this Part on the authority.

(2) The final notice must—

(a) identify the EU financial sanction to which the notice relates;

(b) specify the total amount of the sanction (see subsection (3)) and, where
relevant, the amount and frequency of any future periodic payments
25(see subsection (4));

(c) describe the acts of the authority that a Minister of the Crown has under
section 55(4) determined—

(i) caused or contributed to the infraction of EU law concerned, in
relation to the total amount of the sanction; or

(ii) 30are causing or contributing to the continuing infraction of EU
law concerned, in relation to any other periodic payments due
from the United Kingdom;

and set out the reasons for that determination;

(d) summarise the other determinations made by a Minister of the Crown
35under section 55(4) and set out the reasons for making them;

(e) specify the amount required to be paid by the authority towards the
total amount of the sanction and when it is to be paid (and if it is to be
paid in instalments, the instalments and the date on which they become
payable);

(f) 40specify the amount to be paid towards any periodic payment that falls
due from the United Kingdom and the time when that amount is to be
paid (or, if the notice so provides the time when two or more such
amounts are to be paid);

(g) specify how and to whom payments are to be made.

(3) 45In subsection (2)(b), (c) and (e) the “total amount of the sanction” means the
sum of the following—

(a) the amount of the lump sum (if any) due from the United Kingdom
under the terms of the EU financial sanction (disregarding any amount