Enterprise Bill (HL Bill 63)

authority for the exercise of the function in relation to the
person (“PA2”), and

(b) considers that the proposed enforcement action is inconsistent
with that advice or guidance.

(3) 5If PA1 is of the view that the requirements of subsection (2)(a) and (b)
are met it must, within the relevant period—

(a) refer the proposed enforcement action to PA2, and

(b) notify the enforcing authority and the person that it has done so.

(4) If subsection (3) applies, section 25C(3) to (9) (but not this section)
10applies as if—

(a) PA1 were a qualifying regulator other than the primary
authority, and

(b) the reference of the proposed enforcement action by PA1 to PA2
under subsection (3)(a) were a notification given by the
15enforcing authority to PA2 under section 25C(2)(a).

(5) “Relevant period” in this section has the same meaning as in section
25C (see subsection (9) of that section).

29D Overlapping inspection plans

(1) This section applies if, for a primary authority or another inspecting
20regulator, there is more than one relevant inspection plan in respect of
the exercise of the same inspection function in relation to the same
person.

(2) An inspection plan is “relevant” in relation to an inspecting regulator
if—

(a) 25it is a plan made by it (as a primary authority) to which the
Secretary of State has consented under section 26A(7), or

(b) it is a plan notified to it (as a relevant qualifying regulator)
under section 26A(8)(b).

(3) If—

(a) 30the inspecting regulator is a direct primary authority for the
exercise of the inspection function in relation to the person, and

(b) there is a relevant inspection plan made by the regulator in
relation to the exercise of the function in relation to the person,

section 26B(2) (duty of inspecting regulator to act in accordance with
35plans notified by the primary authority) does not apply in relation to
the inspecting regulator by reason of it being notified of any other
relevant inspection plan under section 26A(8)(b) in relation to the
exercise of the function in relation to the person.

(4) Subsection (5) applies if—

(a) 40the inspecting regulator is a co-ordinated primary authority for
the exercise of the inspection function in relation to the person,
and

(b) there is a relevant inspection plan which is made by a direct
primary authority for the exercise of the function in relation to
45the person and notified to the inspecting regulator under
section 26A(8)(b).

(5) Where this subsection applies—

(a) subsection (1) of section 26B (duty of primary authority to have
regard to its own inspection plan) does not apply to the
inspecting regulator (as primary authority) in relation to any
relevant inspection plan made by it in respect of the exercise of
5the function in relation to the person;

(b) in the application of subsection (2) of that section to the exercise
of the function in relation to the person by the inspecting
regulator, the reference to the inspection plan in that subsection
is to the plan mentioned in subsection (4)(b) only

(6) 10If—

(a) the inspecting regulator is a co-ordinated primary authority for
the exercise of the inspection function in relation to the person,

(b) there is a relevant inspection plan made by the regulator in
respect of the exercise of the function in relation to the person,
15and

(c) subsection (5) does not apply,

subsection (2) of section 26B does not apply in relation to the exercise of
the function by the inspecting regulator in relation to the person.

(7) If none of subsections (3) to (6) apply, but more than one relevant
20inspection plan is notified to the inspecting regulator under section
26A(8)(b) in relation to the exercise of the inspection function in relation
to the person, in section 26B(2) the reference to the plan is to be read—

(a) if one of those plans is made by a direct primary authority for
the exercise of the function in relation to the person, as a
25reference to that plan, and

(b) otherwise, as a reference to any one of the plans notified to the
regulator.

General

30A Guidance and directions

(1) 30The Secretary of State may give guidance to any one or more qualifying
regulators, supporting regulators, complementary regulators or co-
ordinators about the operation of this Part.

(2) The guidance may include, in particular, guidance to qualifying
regulators about—

(a) 35arrangements under section 24A(3) for the giving of advice or
guidance by primary authorities;

(b) enforcement action referred to the Secretary of State under
paragraph 1(1), 2(1), 3(1) or 4(1) of Schedule 4A;

(c) the notification of inspection plans under section 26A(8);

(d) 40the charging of fees under section 27A.

(3) The guidance may include, in particular, guidance to supporting
regulators about—

(a) the circumstances in which a function is relevant to the exercise
of a partnership function for the purposes of section 28A;

(b) 45the charging of fees under section 28A(6).

(4) A qualifying regulator, supporting regulator, complementary regulator
or co-ordinator must have regard to any guidance given to it under this
section.

(5) Before giving guidance under this section the Secretary of State must
5consult such persons as the Secretary of State considers appropriate.

(6) The Secretary of State may not give guidance under subsection (2)(d) or
(3) without consulting the Welsh Ministers.

(7) The Secretary of State may at any time vary or revoke guidance given
under this section.

(8) 10The Secretary of State must publish guidance given under this section
and any variation or revocation of the guidance.

(9) A qualifying regulator must comply with a direction given to it under
this Part.

30B Periods of time under Part 2

15The Secretary of State may by regulations amend any provision of this
Part which specifies a period within which, or a time before which,
anything must, must not or may be done.

30C Regulations under Part 2

(1) Regulations under this Part must be made by statutory instrument.

(2) 20A statutory instrument containing regulations under section 22B,
28B(1)(a) or 30B (whether alone or with other provision) may not be
made unless a draft of the instrument has been laid before, and
approved by resolution of, each House of Parliament.

(3) Any other statutory instrument containing regulations under this Part
25is subject to annulment in pursuance of a resolution of either House of
Parliament.

30D Interpretation of Part 2

(1) In this Part—

• “complementary regulator” means a complementary regulatory
  30under section 28B;

• “co-ordinated primary authority” has the meaning given in
  section 23B(2);

• “co-ordinator” has the meaning given in section 23C(1);

• “direct primary authority” has the meaning given in section
  3523B(1);

• “enforcement action” has the meaning given in section 25A;

• “enforcing authority” has the meaning given in section 25C(2);

• “inspection function” has the meaning given in section 26A(1);

• “inspection plan” has the meaning given in sections 26A(2) and
  4026C(5);

• “inspecting regulator” has the meaning given in section 26A(3);

• “local authority” has the meaning given in section 22B(2) and (3);

• “Northern Ireland” has the same meaning as in the Northern
  Ireland Act 1998;

Enterprise BillPage 33

• “partnership function” has the meaning given in section 23A(2)
  and (7);

• “primary authority” means a qualifying regulator nominated as a
  primary authority under section 23A(1);

• 5“qualifying regulator” has the meaning given in section 22B(1);

• “regulated group” has the meaning given in section 22A(2);

• “regulated person” has the meaning given in section 22A(1);

• “relevant function” has the meaning given in section 22C(1);

• “reserved matter” has the same meaning as in the Scotland Act
  101998;

• “Scotland” has the same meaning as in the Scotland Act 1998;

• “specified regulator” has the meaning given in section 22B(4);

• “supporting regulator” means a supporting regulator under
  section 28A;

• 15“transferred matter” has the same meaning as in the Northern
  Ireland Act 1998;

• “Wales” has the same meaning as in the Government of Wales Act
  2006;

• “working day” has the meaning given in subsection (2).

(2) 20In this Part, “working day” means a day other than—

(a) a Saturday or Sunday,

(b) Christmas Day or Good Friday, or

(c) a day which is a bank holiday under the Banking and Financial
Dealings Act 1971 in the relevant part of the United Kingdom.

(3) 25For the purposes of subsection (2)(c), the “relevant part” of the United
Kingdom is—

(a) in relation to section 23D(5), 28A(8) or 28B(7) (period in which
co-ordinator must make available a list of group members or of
group members to whom an inspection plan may be relevant),
30the part where the co-ordinator of the group is;

(b) in any other case, the part where the primary authority is.””

(2) For Schedule 4 to the Regulatory Enforcement and Sanctions Act 2008
(enforcement action: references to the Secretary of State) substitute Schedule
4A set out in Schedule 3 to this Act.

35Part 4 Apprenticeships

18 Public sector apprenticeship targets

(1) In Chapter A1 of Part 1 of the Apprenticeships, Skills, Children and Learning
Act 2009 (apprenticeships: England), after section A8 insert—

“A9 40Public sector apprenticeship targets

(1) The Secretary of State may by regulations set apprenticeship targets for
prescribed public bodies.

(2) An “apprenticeship target”, in relation to a public body, is a target
relating to the number of persons (“apprentices”) who work for the
body under an apprenticeship agreement.

(3) Public bodies for which apprenticeship targets are set under this
5section must have regard to—

(a) the targets, and

(b) any applicable guidance issued by the Secretary of State in
relation to the targets.

(4) The Secretary of State may require a public body to provide any
10information that the Secretary of State needs for the purpose of
exercising functions under this section.

(5) Regulations under this section may set apprenticeship targets for—

(a) a prescribed public body,

(b) a prescribed part of a public body,

(c) 15a prescribed group of public bodies, or

(d) public bodies of a prescribed description.

A reference in this section to a public body includes a reference to a
prescribed part of a public body or a prescribed group of public bodies.

(6) The regulations must specify the period to which each apprenticeship
20target relates.

(7) In this section—

• “apprenticeship agreement” means—

  (a)

  an approved English apprenticeship agreement;

  (b)

  an apprenticeship agreement within the meaning given
  25in section 32 as it applies in relation to England by virtue
  of provision made under section 115(9) of the
  Deregulation Act 2015;

• “public body” means—

  (a)

  a public authority, or

  (b)

  30a body or other person that is not a public authority but
  has functions of a public nature and is funded wholly or
  partly from public funds.

A10 Further provision about apprenticeship targets

(1) A public body for which an apprenticeship target is set must —

(a) 35publish and send to the Secretary of State the information
specified in subsection (2), and

(b) send to the Secretary of State any other prescribed information,

within six months after the end of each reporting period of the body in
the target period.

(2) 40The information referred to in subsection (1)(a) is—

(a) the number of employees whose employment by the body
began in the reporting period in question (“figure A”);

(b) the number of apprentices who began to work for the body in
that period and whose apprenticeship agreements also began in
45that period (“figure B”);

(c) figure B expressed as a percentage of figure A;

(d) the number of employees that the body has at the end of that
period (“figure C”);

(e) the number of apprentices who work for the body at the end of
that period (“figure D”);

(f) 5figure D expressed as a percentage of figure C;

(g) if that reporting period is the first reporting period in the target
period, the number of apprentices who worked for the body
immediately before that period.

(3) The information that may be prescribed under subsection (1)(b)
10includes—

(a) information about action that the body has taken to meet an
apprenticeship target set for it;

(b) if the public body has failed to meet an apprenticeship target set
for it, an explanation of why the target has not been met;

(c) 15information about action that the body proposes to take to meet
an apprenticeship target set for the body for a period that has
not yet expired (“a future target”);

(d) if the body considers that a future target is not likely to be met,
an explanation of why that is so.

(4) 20Regulations may specify how the information is to be published or sent.

(5) A body’s “reporting periods” in the target period are—

(a) so much of the first financial year of the body to end in the target
period as falls within that period,

(b) each subsequent financial year of the body which falls wholly
25within the target period, and

(c) if the target period ends during a financial year of the body, so
much of that financial year as falls within that period.

(6) But, where the target period in relation to a body does not exceed 12
months, the Secretary of State may direct in writing that for the
30purposes of this section the body is to be treated as having one
reporting period which coincides with the target period.

(7) Where, by virtue of section A9(5)(c) or (d) a target is set for more than
one public body, regulations may specify which body’s financial year
is to be used to determine the reporting periods under subsection (5).

(8) 35In this section—

• “apprenticeship agreement” has the meaning given by section
  A9(7);

• “apprenticeship target” has the meaning given by section A9(2);

• “public body” has the meaning given by section A9(7);

• 40“target period”, in relation to an apprenticeship target, means the
  period specified under section A9(6) as the period to which the
  target relates.””

(2) In section 262(6) of that Act (regulations etc subject to affirmative resolution
procedure), before paragraph (aa) insert—

“(za) 45the first regulations under section A9;

(zb) the first regulations under section A10;”.”

19 Only statutory apprenticeships to be described as apprenticeships

(1) In Chapter A1 of Part 1 of the Apprenticeships, Skills, Children and Learning
Act 2009 (apprenticeships: England), after section A10 (inserted by section 18)
insert—

“A11 5Only statutory apprenticeships to be described as apprenticeships

(1) A person (“P”) providing or offering any course or training that is, or is
to be, undertaken (wholly or partly) in England commits an offence if—

(a) in the course of business P describes the course or training as an
apprenticeship, and

(b) 10the course or training is not a statutory apprenticeship.

(2) No offence is committed under subsection (1) where the course or
training is, or is to be, provided to an individual under or in pursuance
of a contract of employment between the individual and P.

(3) In subsection (1) “statutory apprenticeship” means any course or
15training that is, or is to be, provided under—

(a) an approved English apprenticeship;

(b) an apprenticeship agreement within the meaning given in
section 32;

(c) an arrangement to undertake any other kind of working—

(i) 20in relation to which alternative English completion
conditions apply under section 1(5), and

(ii) in connection with which training is to be provided in
accordance with an apprenticeship framework within
the meaning given in section 12; or

(d) 25arrangements made under—

(i) section 2 of the Employment and Training Act 1973,

(ii) section 17B(1)(a) of the Jobseekers Act 1995,

(iii) section 2(3) of the Enterprise and New Towns (Scotland)
Act 1990, or

(iv) 30section 1 of the Employment and Training Act
(Northern Ireland) 1950,

that are identified by the person making the arrangements as
arrangements for the provision of apprenticeships.

(4) The reference to section 32 in subsection (3)(b) includes a reference to
35that section as it applies in relation to England by virtue of provision
made under section 115(9) of the Deregulation Act 2015; and a reference
to a section in subsection (3)(c) is a reference to the section as it so
applies.

(5) A person guilty of an offence under this section is liable on summary
40conviction to a fine.

(6) Where an offence under this section committed by a body corporate—

(a) is committed with the consent or connivance of an officer of the
body corporate, or

(b) is attributable to neglect on the part of an officer of the body
45corporate,

the officer also commits the offence and is liable to be proceeded
against and punished accordingly.

(7) Every local weights and measures authority in England—

(a) has a duty to enforce the provisions of this section within their
area;

(b) must make to the Secretary of State, whenever he or she so
5directs, a report on the exercise of the authority’s functions
under this section.

A report under paragraph (b) must be in such form, and contain such
particulars, as the Secretary of State may direct.

(8) Proceedings for an offence under this section may be instituted only—

(a) 10by or on behalf of a local weights and measures authority in
England,

(b) by or on behalf of the Secretary of State, or

(c) with the consent of the Director of Public Prosecutions.

(9) In this section—

• 15“contract of employment” has the same meaning as in the
  Employment Rights Act 1996 (see section 230(2) of that Act);

• “offering”, in relation to any course or training, includes offering
  or marketing it to the public generally or to any section of the
  public;

• 20“officer”, in relation to a body corporate, means—

  (a)

  a director, manager, secretary or similar officer of the
  body, or a person purporting to act in such capacity;

  (b)

  a governor of an educational institution conducted by
  the body.

(10) 25The reference in subsection (1) to describing any course or training as
an apprenticeship includes a reference to describing an individual who
undertakes it as an apprentice.””

(2) In Schedule 5 to the Consumer Rights Act 2015 (investigatory powers etc), in
paragraph 10, at the appropriate place insert—

30““section A11(7)(a) of the Apprenticeships, Skills, Children and
Learning Act 2009;”.”

Part 5 Late payment of insurance claims

20 Insurance contracts: implied term about payment of claims

(1) 35After section 13 of the Insurance Act 2015 (remedies for fraudulent claims:
group insurance) insert—

““Part 4A Late payment of claims

13A Implied term about payment of claims

(1) 40It is an implied term of every contract of insurance that if the insured
makes a claim under the contract, the insurer must pay any sums due
in respect of the claim within a reasonable time.

(2) A reasonable time includes a reasonable time to investigate and assess
the claim.

(3) What is reasonable will depend on all the relevant circumstances, but
the following are examples of things which may need to be taken into
5account—

(a) the type of insurance,

(b) the size and complexity of the claim,

(c) compliance with any relevant statutory or regulatory rules or
guidance,

(d) 10factors outside the insurer’s control.

(4) If the insurer shows that there were reasonable grounds for disputing
the claim (whether as to the amount of any sum payable, or as to
whether anything at all is payable)—

(a) the insurer does not breach the term implied by subsection (1)
15merely by failing to pay the claim (or the affected part of it)
while the dispute is continuing, but

(b) the conduct of the insurer in handling the claim may be a
relevant factor in deciding whether that term was breached and,
if so, when.

(5) 20Remedies (for example, damages) available for breach of the term
implied by subsection (1) are in addition to and distinct from—

(a) any right to enforce payment of the sums due, and

(b) any right to interest on those sums (whether under the contract,
under another enactment, at the court’s discretion or
25otherwise).””

(2) In section 22 of that Act (application etc of Parts 2 to 5), after subsection (3)
insert—

“(3A) Part 4A applies only in relation to contracts of insurance entered into
after that Part has come into force, and variations to such contracts.””

21 30Contracting out of the implied term about payment of claims

(1) After section 16 of the Insurance Act 2015 (contracting out: non-consumer
contracts) insert—

“16A Contracting out of the implied term about payment of claims:
consumer and non-consumer insurance contracts

(1) 35A term of a consumer insurance contract, or of any other contract,
which would put the consumer in a worse position as respects any of
the matters provided for in section 13A than the consumer would be in
by virtue of the provisions of that section (so far as relating to consumer
insurance contracts) is to that extent of no effect.

(2) 40A term of a non-consumer insurance contract, or of any other contract,
which would put the insured in a worse position as respects deliberate
or reckless breaches of the term implied by section 13A than the insured
would be in by virtue of that section is to that extent of no effect.

(3) For the purposes of subsection (2) a breach is deliberate or reckless if the
45insurer—

(a) knew that it was in breach, or

(b) did not care whether or not it was in breach.

(4) A term of a non-consumer insurance contract, or of any other contract,
which would put the insured in a worse position as respects any of the
5other matters provided for section 13A than the insured would be in by
virtue of the provisions of that section (so far as relating to non-
consumer insurance contracts) is to that extent of no effect, unless the
requirements of section 17 have been satisfied in relation to the term.

(5) In this section references to a contract include a variation.

(6) 10This section does not apply in relation to a contract for the settlement of
a claim arising under an insurance contract.””

(2) In section 17(1) of that Act (the transparency requirements), after “16(2)” insert
“or 16A(4)”.

Part 6 15Non-domestic rating

22 Disclosure of HMRC information in connection with non-domestic rating

(1) The Local Government Finance Act 1988 is amended as follows.

(2) In Part 3 (non-domestic rating), after section 63 insert—

“63A Disclosure of Revenue and Customs information

(1) 20An officer of the Valuation Office of Her Majesty’s Revenue and
Customs may disclose Revenue and Customs information to a
qualifying person for a qualifying purpose.

(2) Information disclosed to a qualifying person under this section may be
retained and used for any qualifying purpose.

(3) 25Each of the following is a “qualifying person”—

(a) a billing authority;

(b) a major precepting authority;

(c) a person authorised to exercise any function of an authority
within paragraph (a) or (b) relating to non-domestic rating;

(d) 30a person providing services to an authority within paragraph
(a) or (b) relating to non-domestic rating;

(e) the Secretary of State;

(f) the Welsh Ministers;

(g) a prescribed person.

(4) 35Each of the following is a “qualifying purpose”—

(a) enabling or assisting the qualifying person to whom the
disclosure is made, or any other qualifying person, to carry out
any functions conferred by or under this Part which are not
functions of the Secretary of State or the Welsh Ministers;

(b) 40enabling or assisting the Secretary of State or the Welsh
Ministers to carry out functions conferred by or under section
53 or 54 (central non-domestic rating), or by or under Schedule
9 so far as relating to central non-domestic rating lists;