Digital Economy Bill (HL Bill 80)

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(c) must not be more than £250,000.

(6) OFCOM may withdraw a notice without imposing a penalty, and that
does not affect the power to issue a further notice in relation to the same
information.

(7) 5OFCOM must publish and keep up to date a statement of their
proposed approach to issuing notices and imposing and recovering
penalties under this section (subject to the guidelines published under
section 392).”

(7) The following cease to have effect—

(a) 10in Part 3 of Schedule 1 to the House of Commons Disqualification Act
1975 (offices disqualifying for membership), the entry relating to a
chairman, vice-chairman or ordinary member of the BBC Trust);

(b) section 90A of the Scotland Act 1998 (BBC Trust member for Scotland);

(c) section 16 of the Scotland Act 2012 (which inserts section 90A of the
151998 Act);

(d) in section 77(2)(d) of the Deregulation Act 2015 (review of sanctions in
relation to TV licensing), “and be presented to the BBC Trust”.

77 TV licence fee concessions by reference to age

(1) The Communications Act 2003 is amended as follows.

(2) 20Section 365 (TV licence fees) is amended as follows.

(3) After subsection (1) insert—

(1A) Liability to pay a sum under regulations under subsection (1) is subject
to any concession applying in accordance with a determination by the
BBC under section 365A.”

(4) 25In subsection (4)(a) after “concession” insert “provided for by the regulations”.

(5) In subsection (5) for “The reference to a concession in subsection (4)” substitute
“A reference in this section or section 365A to a concession”.

(6) After subsection (5) insert—

(5A) Regulations under this section may not provide for a concession that
30requires the person to whom the TV licence is issued, or another
person, to be of or above a specified age, unless—

(a) the age specified is below 65, and

(b) the requirement is not satisfied if the person concerned is 65 or
over at the end of the month in which the licence is issued.

(5B) 35Subsection (5A) does not apply to—

(a) the concession provided for by regulation 3(d) of and Schedule
4 to the Communications (Television Licensing) Regulations
2004 (S.I. 2004/692) (accommodation for residential care), or

(b) a concession in substantially the same form.”

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(7) After section 365 insert—

365A TV licence fee concessions by reference to age

(1) For the purposes of section 365(1A) the BBC may determine that a
concession in specified terms is to apply.

(2) 5Any concession under this section must include a requirement that the
person to whom the TV licence is issued, or another person, is of or
above a specified age, which must be 65 or higher, at or before the end
of the month in which the licence is issued.

(3) A determination under this section—

(a) 10may in particular provide for a concession to apply, subject to
subsection (2), in circumstances where a concession has ceased
to have effect by virtue of section 365(5A), but

(b) may not provide for a concession to apply in the same
circumstances as a concession within section 365(5B).

(4) 15A determination under this section may include provision for the
means by which an entitlement to a concession must be established.

(5) A determination under this section—

(a) may make different provision for different cases (including
different provision in respect of different areas);

(b) 20may include transitional provision.

(6) A determination under this section—

(a) must be in writing;

(b) must be published in whatever way the BBC considers
appropriate.

(7) 25The BBC

(a) may vary a determination by a further determination under this
section;

(b) may determine that a concession is to cease to apply (and
accordingly revoke a determination under this section).

(8) 30Before making, varying or revoking a determination the BBC must
consult any persons it considers appropriate.”

OFCOM powers relating to criminal content etc

78 Suspension of radio licences for inciting crime or disorder

(1) In Chapter 2 of Part 3 of the Broadcasting Act 1990 (sound broadcasting
35services), for section 111B (power to suspend licence to provide satellite
service) substitute—

111B Suspension of licences for inciting crime or disorder

(1) OFCOM must serve a notice under subsection (2) on the holder of a
licence granted under this Chapter if they are satisfied that—

(a) 40the licence holder has included in the licensed service one or
more programmes containing material likely to encourage or
incite the commission of crime or to lead to disorder,

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(b) in doing so the licence holder has failed to comply with a
condition included in the licence in compliance with section 263
of the Communications Act 2003, and

(c) the failure would justify the revocation of the licence.

(2) 5A notice under this subsection must—

(a) state that OFCOM are satisfied as mentioned in subsection (1),

(b) specify the respects in which, in their opinion, the licence holder
has failed to comply with the condition mentioned there,

(c) state that OFCOM may revoke the licence after the end of the
10period of 21 days beginning with the day on which the notice is
served on the licence holder, and

(d) inform the licence holder of the right to make representations to
OFCOM in that period about the matters that appear to
OFCOM to provide grounds for revoking the licence.

(3) 15The effect of a notice under subsection (2) is to suspend the licence from
the time when the notice is served on the licence holder until either—

(a) the revocation of the licence takes effect, or

(b) OFCOM decide not to revoke the licence.

(4) If, after considering any representations made to them by the licence
20holder in the 21 day period mentioned in subsection (2)(c), OFCOM are
satisfied that it is necessary in the public interest to revoke the licence,
they must serve on the licence holder a notice revoking the licence.

(5) The revocation of a licence by a notice under subsection (4) takes effect
from whatever time is specified in the notice.

(6) 25That time must not be earlier than the end of the period of 28 days
beginning with the day on which the notice under subsection (4) is
served on the licence holder.

(7) Section 111 does not apply to the revocation of a licence under this
section.”

(2) 30In section 62(10) of the Broadcasting Act 1996 (application of sections 109 and
111 of the 1990 Act to digital sound programme services) for the words from
“section 109” to “1990 Act” substitute “sections 109, 111 and 111B of the 1990
Act (enforcement)”.

(3) In section 250(3) of the Communications Act 2003 (application of sections 109
35to 111A of the 1990 Act to radio licensable content services) for “111A”
substitute “111B”.

79 Digital additional services: seriously harmful extrinsic material

After section 24 of the Broadcasting Act 1996 (digital additional services)
insert—

24A 40Duty to prevent access to seriously harmful extrinsic material

(1) In carrying out their functions, OFCOM must do all that they consider
appropriate to prevent digital additional services from enabling
members of the public to access seriously harmful extrinsic material.

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(2) “Seriously harmful extrinsic material”, in relation to a digital additional
service, means material that—

(a) is not included in the service, and

(b) appears to OFCOM

(i) 5to have the potential to cause serious harm, or

(ii) to be likely to encourage or incite the commission of
crime or lead to disorder.”

On-demand programme services

80 On-demand programme services: specially restricted material

(1) 10Section 368E of the Communications Act 2003 (restrictions on harmful material
contained in on-demand programme services) is amended as follows.

(2) In subsection (5), after paragraph (b) omit “or”.

(3) In that subsection, after paragraph (c) insert—

(d) a video work—

(i) 15in respect of which the video works authority has issued
an 18 certificate, and

(ii) whose nature is such that it is reasonable to assume that
its principal purpose is to cause sexual arousal, or

(e) material whose nature is such that it is reasonable—

(i) 20to assume that its principal purpose is to cause sexual
arousal, and

(ii) to expect that, if the material were contained in a video
work submitted to the video works authority for a
classification certificate, the video works authority
25would issue an 18 certificate.”

(4) In subsection (6), after “(5)(b)” insert “or (e)”.

(5) In subsection (7), after the definition of “the 1984 Act”, insert—

  • ““18 certificate” means a classification certificate which—

    (a)

    contains, pursuant to section 7(2)(b) of the 1984 Act, a
    30statement that the video work is suitable for viewing
    only by persons who have attained the age of 18 and that
    no video recording containing that work is to be
    supplied to any person who has not attained that age,
    and

    (b)

    35does not contain the statement mentioned in section
    7(2)(c) of the 1984 Act that no video recording
    containing the video work is to be supplied other than in
    a licensed sex shop;”.

Direct marketing code

81 40Direct marketing code

(1) The Data Protection Act 1998 is amended as follows.

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(2) After section 52A insert—

52AA Direct marketing code

(1) The Commissioner must prepare a code of practice which contains—

(a) practical guidance in relation to the carrying out of direct
5marketing in accordance with the requirements of this Act and
the Privacy and Electronic Communications (EC Directive)
Regulations 2003 (S.I. 2003/2426), and

(b) such other guidance as the Commissioner considers
appropriate to promote good practice in direct marketing.

(2) 10For this purpose “good practice” means such practice in direct
marketing as appears to the Commissioner to be desirable having
regard to the interests of data subjects and others, and includes (but is
not limited to) compliance with the requirements mentioned in
subsection (1)(a).

(3) 15Before a code is prepared under this section, the Commissioner must
consult such of the following as the Commissioner considers
appropriate—

(a) trade associations (within the meaning of section 51);

(b) data subjects;

(c) 20persons who appear to the Commissioner to represent the
interests of data subjects.

(4) In this section “direct marketing” has the meaning given by section
11(3).”

(3) In section 51(5A) (general duties of Commissioner) at the end insert “or section
2552AA (direct marketing code)”.

(4) In the title of each of sections 52B to 52E for “data-sharing code” substitute
“data-sharing and direct marketing codes”.

(5) In section 52B (procedure for making code)—

(a) in subsection (1) after “52A” insert “or 52AA”;

(b) 30in subsection (6) omit “under section 52A”.

(6) In section 52C (alteration or replacement of code)—

(a) in subsection (1)(a) after “data-sharing code” insert “and the direct
marketing code”;

(b) in subsection (1)(b) for “may prepare an alteration to that code”
35substitute “in either case, may prepare an alteration to the code”;

(c) in subsection (4) after “52A” insert “or 52AA”;

(d) in subsection (5) for “means the code” substitute “and “the direct
marketing code” mean the codes respectively prepared under sections
52A and 52AA and”.

(7) 40In section 52D (publication of code) in subsection (1) for “the code” substitute
“any code”.

(8) In section 52E (effect of code)—

(a) in subsection (1) after “data-sharing code” insert “or the direct
marketing code”;

(b) 45in subsection (2) for “The data-sharing code is” substitute “Those codes
are”;

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(c) in subsection (3) for “the data-sharing code” substitute “those codes”;

(d) in subsection (3)(a) after “Act” insert “or the Privacy and Electronic
Communications (EC Directive) Regulations 2003 (S.I. 2003/2426)”;

(e) in subsection (3)(c) after “Act” insert “or those Regulations”;

(f) 5in subsection (4) for “means the code” substitute “and “the direct
marketing code” mean the codes respectively prepared under sections
52A and 52AA and”.

Other provisions relating to OFCOM

82 OFCOM and Northern Ireland

(1) 10Section 1 of the Office of Communications Act 2002 (the Office of
Communications) is amended as follows.

(2) In subsection (3), before paragraph (b) insert—

(ac) a member appointed by the Minister for the Economy in
Northern Ireland;”.

(3) 15Before subsection (4) insert—

(3C) Before appointing a member under subsection (3)(ac) the Minister for
the Economy must consult the Secretary of State.”

(4) In subsection (5) in the words before paragraph (a), before “and (b),” insert
“, (ac)”.

(5) 20At the end insert—

(13) Paragraphs 1 and 2 of the Schedule apply in relation to the appointment
made under subsection (3)(ac) as if—

(a) any reference to the Secretary of State were to the Minister for
the Economy, and

(b) 25at the end of paragraph 2 there were inserted—

(9) Before the Minister for the Economy removes a person from
office the Minister must consult the Secretary of State.””

(6) The Schedule to the Office of Communications Act 2002 is amended as follows.

(7) In paragraph 11 (accounts and audit)—

(a) 30in sub-paragraph (3)(c) at the end insert “and the Minister for the
Economy in Northern Ireland”;

(b) at the end insert—

(6) The Minister for the Economy in Northern Ireland shall lay a
copy of the statement and report sent to the Minister under
35sub-paragraph (3) before the Northern Ireland Assembly.”

(8) In paragraph 12 (annual report)—

(a) in sub-paragraph (1) before “a report” insert “and the Minister for the
Economy in Northern Ireland”;

(b) at the end insert—

(6) 40The Minister for the Economy in Northern Ireland shall lay a
copy of every report sent to the Minister under this
paragraph before the Northern Ireland Assembly.”

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(9) The following provisions of section 44 of the Northern Ireland Act 1998 (power
of Assembly to call for witnesses and documents: limitation by reference to
transferred matters etc) do not apply in relation to requirements imposed in
connection with the discharge of the functions of the Office of Communications
5in relation to Northern Ireland—

(a) the words after paragraph (b) in subsection (1);

(b) subsections (2), (3) and (5)(b).

83 Retention by OFCOM of amounts paid under Wireless Telegraphy Act 2006

(1) The Communications Act 2003 is amended as follows.

(2) 10In section 400(4)(c) (destination of fees and penalties: account for financial
year), for the words from “of principles” to “subsection (4)” substitute “under
section 401 for meeting the costs set out in the statement in accordance with
subsection (1)(b)”.

(3) In section 401 (retention of amounts by OFCOM), for subsection (1)
15substitute—

(1) OFCOM have power to make a statement setting out—

(a) the principles under which they may retain any or all of the
amounts paid to them—

(i) in pursuance of obligations imposed by or under
20Chapter 1 or 2 of Part 2 of the Wireless Telegraphy Act
2006;

(ii) in respect of fees charged under section 53D of that Act,
and

(b) the costs in respect of which the amounts may be retained
25(which may include costs other than those incurred in the
exercise of their functions under those provisions).”

(4) In subsection (2) of that section, omit “of principles”.

(5) For subsections (3) to (5) of that section substitute—

(3) The provision contained in a statement made by OFCOM under this
30section must be such as appears to them likely to secure, on the basis of
such estimates of the likely costs as it is practicable to make, that the
amounts retained by OFCOM are objectively justifiable and
proportionate to the costs in respect of which they are retained.”

(6) In subsection (6) of that section, omit “the principles contained in”.

(7) 35In subsection (7) of that section, for “of carrying out the functions mentioned in
subsection (4) of this section” substitute “set out in the statement in accordance
with subsection (1)(b)”.

(8) In subsection (8) of that section, omit “of principles”.

(9) In subsection (10) of that section, after “Treasury” insert “and the Secretary of
40State”.

(10) For the heading to that section substitute “Retention by OFCOM of amounts
paid under Wireless Telegraphy Act 2006”.

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84 International recognition of satellite frequency assignments: power of
OFCOM to charge fees

(1) The Communications Act 2003 is amended as follows.

(2) After section 28 (general power of OFCOM to charge for services), and before
5the cross-heading following that section, insert—

28A International recognition of satellite frequency assignments: power to
charge fees

(1) This section applies where functions conferred on OFCOM under
section 22 include functions of the administration of the United
10Kingdom under the ITU Radio Regulations.

(2) OFCOM may require any person to pay them a fee for doing satellite
filing work at the request of that person.

(3) In this section “satellite filing work” means anything connected with
obtaining or maintaining international recognition under the ITU
15Radio Regulations of assignments (or changes in assignments) of radio
frequencies to stations in satellite systems or satellite networks.

(4) OFCOM may vary from time to time the amount of any fee set by them
under this section.

(5) OFCOM may not require a person to pay a fee under this section unless
20they have taken such steps as they consider appropriate to bring the
fact that they charge the fee, and the amount of the fee, to the attention
of those persons who, in their opinion, are likely to be required to pay it.

(6) As soon as reasonably practicable after the end of each reporting year,
OFCOM must publish a statement setting out—

(a) 25the aggregate amount of the fees charged under this section that
have been received by OFCOM during that year;

(b) the aggregate amount of the fees charged under this section
during that year which remain outstanding and are likely to be
paid or recovered; and

(c) 30the total cost to OFCOM of doing the requested satellite filing
work they have done during that year.

(7) If the total of the amounts set out in a statement under subsection (6)(a)
and (b) exceeds the total cost set out under subsection (6)(c), OFCOM
must take this into account with a view to securing that the aggregate
35amount of fees charged under this section in the following reporting
year does not exceed the likely total cost to them of doing requested
satellite filing work during that year.

(8) In this section—

  • “administration”, “assignment” (of a radio frequency), “station”,
    40“satellite system” and “satellite network” have the same
    meanings as in the ITU Radio Regulations;

  • “reporting year” means—

    (a)

    the period beginning with the coming into force of this
    section and ending with the next 31st March, or

    (b)

    45any subsequent period of twelve months beginning
    with 1st April;

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  • “the ITU Radio Regulations” means the radio regulations of the
    International Telecommunication Union.”

(3) In section 38 (annual administrative charge), after subsection (11) insert—

(11A) For the purposes of this section, the cost to OFCOM of carrying out the
5functions mentioned in subsection (5) does not include the cost to
OFCOM of doing anything for which they charge a fee under section
28A.”

(4) Section 28A(2) and (6)(c) of the Communications Act 2003, inserted by
subsection (2), does not apply to any satellite filing work if OFCOM received
10the request to do that work before the coming into force of that section.

Payment and securities settlement systems

85 Power to apply settlement finality regime to payment institutions

In Part 24 of the Financial Services and Markets Act 2000 (insolvency) after
section 379 insert—

15“Settlement finality
379A Power to apply settlement finality regime to payment institutions

(1) The Treasury may by regulations made by statutory instrument
provide for the application to payment institutions, as participants in
payment or securities settlement systems, of provision in subordinate
20legislation—

(a) modifying the law of insolvency or related law in relation to
such systems, or

(b) relating to the securing of rights and obligations.

(2) “Payment institution” means—

(a) 25an authorised payment institution or small payment institution
within the meaning of the Payment Services Regulations 2009
(S.I. 2009/209), or

(b) a person whose head office, registered office or place of
residence, as the case may be, is outside the United Kingdom
30and whose functions correspond to those of an institution
within paragraph (a).

(3) “Payment or securities settlement system” means arrangements
between a number of participants for or in connection with the clearing
or execution of instructions by participants relating to any of the
35following—

(a) the placing of money at the disposal of a recipient;

(b) the assumption or discharge of a payment obligation;

(c) the transfer of the title to, or an interest in, securities.

(4) “Subordinate legislation” has the same meaning as in the Interpretation
40Act 1978.

(5) Regulations under this section may—

(a) make consequential, supplemental or transitional provision;

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(b) amend subordinate legislation.

(6) A statutory instrument containing regulations under this section is
subject to annulment in pursuance of a resolution of either House of
Parliament.”

86 5Bank of England oversight of payment systems

Schedule 4 extends Part 5 of the Banking Act 2009 (Bank of England oversight
of inter-bank payment systems) to other payment systems; and makes
consequential provision.

Qualifications in information technology

87 10Qualifications in information technology: payment of tuition fees

(1) The Apprenticeships, Skills, Children and Learning Act 2009 is amended as
follows.

(2) In section 88(1) (qualifications for persons aged 19 or over: payment of tuition
fees), for “1(a) or (b)” substitute “1(a), (b) or (ba)”.

(3) 15In paragraph 1 of Schedule 5 (qualifications for persons aged 19 or over), after
paragraph (b) insert—

(ba) a specified qualification in making use of information
technology;”.

(4) After paragraph 5 of that Schedule insert—

20“Power to specify qualification in information technology

5A The level of attainment demonstrated by a specified qualification in
making use of information technology must be the level which, in the
opinion of the Secretary of State, is the minimum required in that
respect by persons aged 19 or over in order to be able to operate
25effectively in day-to-day life.”

Part 7 General

88 Financial provisions

The following are to be paid out of money provided by Parliament—

(a) 30any expenditure incurred under or by virtue of this Act by a Minister
of the Crown, a person holding office under Her Majesty or a
government department, and

(b) any increase attributable to this Act in the sums payable under any
other Act out of money so provided.

89 35Commencement

(1) The following come into force on the day on which this Act is passed—

(a) section 76;