Bus Services Bill (HL Bill 58)

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(2) The authority or authorities who made a scheme may revoke it before
the end of the period for which it would otherwise remain in operation
if all persons who have given an undertaking to provide a service to the
standard specified in the scheme consent to the revocation of the
5scheme; and such consent must not be unreasonably withheld.

(3) If the variation of a scheme under subsection (1) would require the
making of a traffic regulation order, the variation is subject to the same
procedure as the making of a scheme.

(4) Any other variation of a scheme under subsection (1), or the revocation
10of a scheme under subsection (2), is subject to that procedure, except to
the extent that the procedure is modified by regulations made under
section 113N.

113M Variation: supplementary

(1) The relevant references to the authority or authorities in relation to an
15advanced quality partnership scheme—

(a) include a local transport authority if it has been varied so that it
relates to that authority’s area, but

(b) do not include a local transport authority if it has been varied so
that it no longer relates to that authority’s area.

(2) 20But if (although the scheme does not relate to a local transport
authority’s area) it would do by reason of a proposed variation, those
references (apart from those in section 113J) include that authority.

(3) The relevant references (apart from those in section 113C(1) and in the
words before paragraph (a) of section 113C(5)) to the authority or
25authorities in relation to an advanced quality partnership scheme—

(a) include a traffic regulation authority if it has been varied so that
it specifies traffic regulation facilities or traffic regulation
measures, but

(b) do not include a traffic regulation authority if it has been varied
30so that it no longer specifies such facilities or measures.

(4) But if (although the scheme does not specify facilities which are traffic
regulation facilities in relation to a traffic regulation authority or
measures which are traffic regulation measures in relation to a traffic
regulation authority) it would do by reason of a proposed variation,
35those references (apart from those in section 113J) include that
authority.

(5) And if (although the scheme specifies facilities which are traffic
regulation facilities in relation to a traffic regulation authority or
measures which are traffic regulation measures in relation to a traffic
40regulation authority)—

(a) the traffic regulation order, or (where more than one) each of
the traffic regulation orders, required to be made by that
authority for the provision of those facilities or the taking of
those measures has been revoked, and

(b) 45the scheme is proposed to be varied (but not so that it specifies
other facilities which are traffic regulation facilities in relation to
that authority or other measures which are traffic regulation
measures in relation to that authority),

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the relevant references (apart from those in section 113J) do not include
that authority.

(6) For the purposes of this section the relevant references are those in—

(a) section 113C(1) to (7),

(b) 5section 113D, and

(c) sections 113G to 113L,

and paragraph 27(2A) of Schedule 9 to the Road Traffic Regulation Act
1984.

(7) In this section “traffic regulation authority” means—

(a) 10a metropolitan district council, or

(b) the Secretary of State.

(8) For the purposes of this section—

(a) facilities are traffic regulation facilities, in relation to a traffic
regulation authority and an advanced quality partnership
15scheme, if that authority was required to be a maker of the
scheme because it originally specified those facilities or would
have been required to be a maker of it had it done so;

(b) measures are traffic regulation measures, in relation to a traffic
regulation authority and an advanced quality partnership
20scheme, if that authority was required to be a maker of the
scheme because it originally specified those measures or would
have been required to be a maker of it had it done so.

113N Regulations about schemes

(1) The Secretary of State may by regulations make further provision with
25respect to—

(a) the procedure to be followed when making, varying or
revoking advanced quality partnership schemes,

(b) the content or operation of schemes which include—

(i) a requirement falling within section 113E(4)(b) or (5)(a),
30or

(ii) a requirement falling within section 113E(4)(a) or (5)(b)
relating to an undertaking that would fall to be given
under section 113C(4)(b),

(c) the local services or classes of local services which must be, or
35may be, excluded from schemes,

(d) the conditions which must be, or may be, attached to such
exclusions,

(e) the form and manner in which undertakings are to be given to
a traffic commissioner in connection with schemes,

(f) 40the making of traffic regulation orders in connection with
schemes, and

(g) such other incidental matters in connection with advanced
quality partnership schemes as the Secretary of State thinks fit.

(2) The regulations may in particular make provision with respect to—

(a) 45giving notice of proposed schemes or proposed variations or
revocation of schemes,

(b) objections to such proposals,

(c) the holding of inquiries or hearings into objections,

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(d) modifications of such proposals,

(e) the form of schemes or variations, and

(f) giving notice of schemes which have been made or of the
variation or revocation of schemes.

(3) 5As regards schemes which include or would include—

(a) a requirement described in subsection (1)(b)(i), or

(b) a requirement described in subsection (1)(b)(ii),

regulations under subsection (1)(a) or (b) may in particular make the
provision referred to in subsection (4).

(4) 10The provision mentioned in subsection (3) is provision—

(a) for section 113E(7) or (8) not to apply in such circumstances as
may be prescribed,

(b) in prescribed circumstances where such schemes, or any
provisions of such schemes, are subject to postponement under
15section 113I, for any such requirement not to take effect unless
prescribed conditions are satisfied,

(c) as to the meaning of “admissible objection” for the purposes of
section 113E(7) and (8) and subsection (5)(b) of this section,

(d) as to the meaning of “relevant operator” for those purposes, and

(e) 20as to the determination of any question whether an objection is
an admissible objection or an operator is a relevant operator.

(5) As regards schemes which include a requirement described in
subsection (1)(b)(i), regulations under subsection (1)(b) may also make
provision—

(a) 25requiring such schemes to include provision—

(i) as respects the setting of frequencies, timings or
maximum fares to which the requirements relate,

(ii) for a minimum interval before any requirements as to
frequencies, timings or maximum fares may next be
30reviewed,

(iii) for a maximum interval before any such requirements
must next be reviewed,

(iv) as respects other circumstances in which any such
requirements must or may be reviewed, and

(v) 35as respects revision of any such requirements after a
review, and

(b) for any requirement as to frequencies, timings or maximum
fares to be revised only if there are no admissible objections to
the revision from relevant operators.

(6) 40The revision of requirements as to frequencies, timings or maximum
fares under any provision included in a scheme by virtue of regulations
under subsection (5)(a) is not to be regarded as a variation of the
scheme for the purposes of section 113L (variation or revocation of
schemes).

(7) 45Nothing in subsection (5) or (6) is to be taken to derogate from what
may be done under or by virtue of section 113L.

(8) The provision that may be made by virtue of subsection (4)(e) includes
provision for and in connection with—

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(a) the appointment of a person (“an adjudicator”) to make such a
determination as is mentioned in that paragraph;

(b) the appointment of a person (“an assessor”) to assist an
adjudicator in considering any question which appears to arise
5in relation to such a determination;

(c) the payment—

(i) by the Secretary of State to an adjudicator, or

(ii) by the Secretary of State or an adjudicator to an assessor,

of such remuneration as may be determined by or in accordance
10with the regulations.

113O Guidance about schemes

(1) The Secretary of State may issue guidance concerning the carrying out
by local transport authorities whose areas are in England and
metropolitan district councils of their functions under this Part in
15relation to advanced quality partnership schemes.

(2) Those authorities and councils must have regard to any such
guidance.”

2 Further amendments

Schedule 1 contains further amendments relating to advanced quality
20partnership schemes.

3 Transitional provision

(1) Subsection (2) applies in relation to a quality partnership scheme under section
114 of the Transport Act 2000 that—

(a) is in operation, or made but not yet in operation, immediately before
25the commencement date, and

(b) at that time relates only to the areas of one or more local transport
authorities in England.

(2) The scheme is to be treated from the commencement date as if it were an
advanced quality partnership scheme that had been made under section 113C
30of the Transport Act 2000 (inserted by section 1).

(3) Subsection (4) applies in relation to a quality partnership scheme that, as varied
under section 120 of the Transport Act 2000 after the commencement date,
relates only to the areas of one or more local transport authorities in England.

(4) The scheme is to be treated from the date on which the scheme as varied comes
35into operation as if it were an advanced quality partnership scheme that had
been made under section 113C of the Transport Act 2000.

(5) In this section “the commencement date” is the date on which section 1 comes
into force for all purposes.

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Franchising schemes

4 Franchising schemes

In Part 2 of the Transport Act 2000, after section 123 insert—

“Bus services: franchising schemes

123A 5Franchising schemes

(1) A franchising authority, or two or more franchising authorities acting
jointly, may make a franchising scheme covering the whole or any part
of their area, or their combined area.

(2) A franchising scheme may not be made unless the franchising authority
10or authorities have complied with the requirements in sections 123B to
123G.

(3) A franchising scheme is a scheme—

(a) under which the authority or authorities identify the local
services that they consider appropriate to be provided in an
15area under local service contracts,

(b) by virtue of which those local services may only be provided in
that area in accordance with local service contracts (subject to
section 123O),

(c) by virtue of which the authority or authorities may grant service
20permits for other local services which have a stopping place in
that area (subject to section 123H(5)), and

(d) under which the authority or authorities identify additional
facilities that they consider appropriate to provide in that area.

(4) In this Part “franchising authority” means—

(a) 25a mayoral combined authority,

(b) a county council in England for an area for which there are
district councils,

(c) a county council in England for an area for which there is no
district council,

(d) 30a non-metropolitan district council for an area for which there is
no county council,

(e) an Integrated Transport Authority for an integrated transport
area in England, or

(f) a combined authority which is not a mayoral combined
35authority.

But each of paragraphs (b) to (f) has effect only if the Secretary of State
by regulations so provides.

(5) In this Part “local service contract”, in relation to a franchising scheme,
means an agreement that complies with section 123K(1) to (3) under
40which—

(a) the franchising authority or authorities grant to another person
the exclusive right to operate the local services to which the
contract relates, and

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(b) the person undertakes to provide the local services on such
terms (including in particular as to frequency, fares and
standard of service) as may be specified in the agreement.

(6) A local service contract may be made on terms which include provision
5for the making of payments by the authority or authorities to the person
undertaking to provide the local service.

(7) Section 88(1) of the Transport Act 1985 (application to subsidy
agreements of sections 89 to 92 of that Act) does not apply in relation to
local service contracts.

(8) 10A franchising authority’s functions under this Part in relation to a
franchising scheme must be discharged only by the franchising
authority.

123B Assessment of proposed scheme

(1) A franchising authority or authorities that propose to make a
15franchising scheme covering the whole or any part of their area, or
combined area, must prepare an assessment of the proposed scheme.

(2) The assessment must—

(a) describe the effects that the proposed scheme is likely to
produce, and

(b) 20compare making the proposed scheme to one or more other
courses of action.

(3) The assessment must also include consideration of—

(a) whether the proposed scheme would contribute to the
implementation of—

(i) 25the authority’s or authorities’ policies under section
108(1)(a), and

(ii) other policies affecting local services that the authority
or authorities have adopted and published,

(b) whether the proposed scheme would contribute to the
30implementation by neighbouring local transport authorities
of—

(i) those authorities’ policies under section 108(1)(a), and

(ii) other policies affecting local services that those
authorities have adopted and published,

(c) 35how the authority or authorities would make and operate the
proposed scheme,

(d) whether the authority or authorities would be able to afford to
make and operate the scheme,

(e) whether the proposed scheme would represent value for
40money, and

(f) the extent to which the authority or authorities are likely to be
able to secure that local services are operated under local service
contracts.

(4) Subsections (2) and (3) do not prevent inclusion of other matters.

(5) 45The Secretary of State must issue guidance concerning the preparation
of an assessment under this section, and that guidance may, in

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particular, include guidance about methods to be used when assessing
a proposed scheme.

(6) Franchising authorities must have regard to any such guidance.

(7) In this section “relevant local authority” means—

(a) 5a local transport authority,

(b) a London transport authority, or

(c) a council in Scotland.

123C Consent of the Secretary of State and notice

(1) A franchising authority or authorities may not prepare an assessment
10of a proposed franchising scheme under section 123B unless the
Secretary of State consents to their doing so.

(2) The Secretary of State’s consent is not required if the proposed scheme
relates only to—

(a) the area of a mayoral combined authority, or

(b) 15the combined area of two or more mayoral combined
authorities.

(3) The Secretary of State must publish a notice of a consent given under
this section.

(4) Before preparing an assessment of a proposed franchising scheme
20under section 123B, the authority or authorities must publish, in such
manner as they consider appropriate, a notice stating that they intend
to prepare such an assessment.

123D Audit

(1) If, after preparing an assessment of a proposed franchising scheme
25under section 123B, the authority or authorities wish to proceed with
the proposed scheme, they must obtain a report from an auditor on that
assessment.

(2) The auditor’s report must state whether, in the opinion of the auditor—

(a) the information relied on by the authority or authorities in
30considering the matters referred to in section 123B(3)(d) or (e) is
of sufficient quality,

(b) the analysis of that information in the assessment is of sufficient
quality, and

(c) the authority or authorities had due regard to guidance issued
35under section 123B in preparing the assessment.

(3) A person may not act as auditor under this section if the person would
be disqualified from acting as local auditor of the accounts of the
franchising authority, or any of the franchising authorities, under
section 1214 of the Companies Act 2006 as substituted by paragraph 5
40of Schedule 5 to the Local Audit and Accountability Act 2014.

(4) In this section “auditor” means a person or body with a recognised
professional qualification, as that term is defined for the purposes of
Part 42 of the Companies Act 2006 as modified by Schedule 5 to the
Local Audit and Accountability Act 2014.

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123E Consultation

(1) This section applies if, after obtaining an auditor’s report under section
123D, the authority or authorities wish to proceed with the proposed
franchising scheme.

(2) 5The authority or authorities must—

(a) publish a consultation document relating to the proposed
scheme (see section 123F),

(b) publish the assessment of the proposed scheme,

(c) publish the auditor’s report on that assessment, and

(d) 10give notice of the proposed scheme in such manner as the
authority or authorities consider appropriate for bringing it to
the attention of persons in the area to which it relates.

(3) A notice under subsection (2)(d) must—

(a) describe the proposed scheme, and

(b) 15state where copies of the proposed scheme and the documents
mentioned in subsection (2)(a) to (c) may be inspected.

(4) After giving notice under subsection (2)(d), the authority or authorities
must consult—

(a) all persons operating local services in the area or areas to which
20the proposed scheme relates,

(b) all other persons holding a PSV operator’s licence or a
community bus permit who would, in the opinion of the
authority or authorities, be affected by the proposed scheme,

(c) such organisations appearing to the authority or authorities to
25be representative of users of local services as they think fit,

(d) any other relevant local authority any part of whose area
would, in the opinion of the authority or authorities, be affected
by the proposed scheme,

(e) a traffic commissioner, and

(f) 30the chief officer of police for each police area covering the whole
or part of an area to which the proposed scheme relates.

(5) In subsection (4)(d) “relevant local authority” means—

(a) a local transport authority,

(b) a district council,

(c) 35a London transport authority, or

(d) a council in Scotland.

(6) The authority or authorities may modify the proposed scheme after
consulting those persons and organisations.

123F Consultation document

(1) 40A consultation document under section 123E(2)(a) relating to a
proposed franchising scheme must include—

(a) a description of the area to which the proposed scheme relates,

(b) a description of areas within that area for which different
provision is proposed to be made, if such provision is proposed
45to be included in the proposed scheme,

(c) a description of the local services that are proposed to be
provided under local service contracts,

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(d) a description of the local services that are proposed to be
excepted from regulation arising because of the proposed
scheme,

(e) the date on which the scheme is proposed to be made,

(f) 5the date or dates by which it is proposed that local service
contracts first be entered into,

(g) the period or periods it is proposed will expire between the
making of local service contracts and the provision of local
services under such contracts,

(h) 10a statement about how, in conducting the procurement process
for the provision of local services, the authority or authorities
propose to facilitate the involvement of small and medium-
sized operators in the provision of local services, and

(i) the date by which responses to the consultation must be
15received.

(2) The consultation document must also include a summary of the
assessment prepared under section 123B in relation to the proposed
scheme.

123G Response to consultation

(1) 20A franchising authority or authorities that conduct a consultation
under section 123E must publish a report setting out—

(a) the authority’s or authorities’ response to the consultation;

(b) the authority’s or authorities’ decision on whether to make a
franchising scheme covering the whole or any part of their area
25or combined area.

(2) The authority or authorities must give notice of the report to a traffic
commissioner.

(3) If the authority or authorities decide to make a franchising scheme, the
report must set out how, in conducting the procurement process for the
30provision of local services, the authority or authorities will facilitate the
involvement of small and medium-sized operators in the provision of
local services.

(4) If a franchising authority are a mayoral combined authority, the
function of deciding whether to make a proposed franchising scheme is
35a function of the combined authority exercisable only by the mayor
acting on behalf of the combined authority (including in a case where
the decision is to make a scheme jointly with one or more other
franchising authorities).

123H Making and publication of scheme

(1) 40If the authority or authorities publishing a report under section 123G
have decided to make a franchising scheme covering the whole or any
part of their area or combined area, they must make the scheme, and
publish it, at the same time as the report under section 123G.

(2) The scheme must specify—

(a) 45the area to which the scheme relates,

(b) the local services intended to be provided under local service
contracts,

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(c) the date on which local service contracts relating to local
services may first be entered into (subject to subsection (3)(b)),
and

(d) the minimum period that is to expire between the making of a
5local service contract and the provision of a local service under
the contract (subject to subsection (3)(c)).

(3) The scheme may specify—

(a) areas within the area to which the scheme relates (“scheme sub-
areas”),

(b) 10for each scheme sub-area, the date on which a local service
contract to provide a local service in that scheme sub-area may
first be entered into, and

(c) for each scheme sub-area, the minimum period that is to expire
between the making of a local service contract to provide such
15a service and the provision of such a service under the contract.

(4) A scheme may not specify under subsection (2)(d) or (3)(c) a period of
less than six months.

(5) Subject to regulations under section 123U, the scheme may except from
regulation arising because of the scheme—

(a) 20local services specified in the scheme, and

(b) local services of a class specified in the scheme.

(6) If the franchising scheme relates to an area to which a relevant scheme
or plan also relates, the franchising scheme must include—

(a) in a case where the relevant scheme or plan relates only to the
25area to which the franchising scheme relates or a part of that
area, provision revoking the relevant scheme or plan, or

(b) in any other case, provision varying the relevant scheme or plan
so that it ceases to relate to any part of the area to which the
franchising scheme relates.

(7) 30A franchising scheme may not otherwise vary a relevant scheme or
plan.

(8) In subsections (6) and (7)—

  • “relevant plan” means an enhanced partnership plan, and

  • “relevant scheme” means an advanced quality partnership scheme
    35or an enhanced partnership scheme.

(9) If provision is made under subsection (6)(b) to vary an enhanced
partnership plan or scheme so that it ceases to relate to an area, the local
transport authority or authorities to whose area or combined area the
plan or, in the case of a scheme, the related plan continues to relate may
40vary the plan or, as the case may be, the scheme in such manner as they
consider appropriate in consequence of the provision made under
subsection (6)(b).

(10) Section 138K(3) applies, and section 138K(4), (5) and (8) do not apply,
to a variation under subsection (9).

123I 45Postponement of local service contracts

(1) If it appears to the authority or authorities that have made a franchising
scheme appropriate to do so, they may decide that—