United Kingdom Internal Market Bill (HL Bill 150)

Part 4 continued    

a document or information is to be produced or provided.

(5)A notice under subsection (2) or (3) may require the provision of a legible and
intelligible copy of information which is recorded otherwise than in legible
form.

(6)5A notice under subsection (2) or (3) must—

(a)state the purpose for which the notice is given, including which of the
functions mentioned in subsection (1) is relevant; and

(b)include information about the potential consequences of not complying
with the notice.

(7)10The person to whom any document is produced in accordance with a notice
under subsection (2) or (3) may copy the document.

(8)A notice under subsection (2) or (3) may not require a person—

(a)to produce or provide any document or information which the person
could not be compelled to produce, or give in evidence, in civil
15proceedings before the court; or

(b)to go more than 10 miles from the person’s place of residence, unless
the person’s necessary travelling expenses are paid or offered to them.

(9)In this section “the court” means—

(a)in relation to England and Wales or Northern Ireland, the High Court;
20and

(b)in relation to Scotland, the Court of Session.

(10)In Schedule 14 to the Enterprise Act 2002 (disclosure of information: specified
functions) at the appropriate place insert—

“Part 4 of the United Kingdom Internal Market Act 2020.”.

39 25Enforcement

(1)Where the CMA considers that a person has, without reasonable excuse, failed
to comply with any requirement of a notice under section 38, it may impose a
penalty in accordance with section 40.

(2)Where the CMA considers that a person has intentionally obstructed or
30delayed any person in the exercise of the power under section 38(7), it may
impose a penalty in accordance with section 40.

(3)In deciding whether and, if so, how to proceed under subsection (1) or (2), the
CMA must have regard to the statement of policy which was most recently
published under subsection (6) or (8) at the time the failure or (as the case may
35be) the obstruction or delay concerned occurred.

(4)Subject to subsection (5), no penalty may be imposed by virtue of subsection
(1) or (2) after the end of the period of 4 weeks beginning with—

(a)where the penalty is imposed in connection with the exercise of the
CMA’s functions under section 31—

(i)40if that exercise involves the publication of a report in accordance
with subsection (3) of that section, the day on which the report
is published,

(ii)if that exercise involves arranging for a copy of a report to be
laid in accordance with subsection (7) of that section, the day on

which the laying mentioned in paragraphs (a) to (d) of that
subsection is fully accomplished, or

(iii)in the case of a review under subsection (1) of that section which
does not involve the publication or laying of a report as
5mentioned in sub-paragraph (i) or (ii), the day on which the
review is concluded,

(b)where the penalty is imposed in connection with the exercise of the
CMA’s functions under section 32, the day on which the advice or
report is given or provided in accordance with subsection (1) of that
10section,

(c)where the penalty is imposed in connection with the exercise of the
CMA’s functions under section 33, the day on which the report is
provided in accordance with subsection (1) of that section,

(d)where the penalty is imposed in connection with the exercise of the
15CMA’s functions under section 34, the day on which the report is
provided in accordance with subsection (1) of that section, or

(e)where the penalty is imposed in connection with the exercise of the
CMA’s functions under section 5 of the Enterprise Act 2002 in the
circumstances mentioned in section 38(1)(b), the day on which the
20CMA finally concludes the carrying out of those functions.

(5)Subsection (4) does not apply in relation to any variation or substitution of the
penalty which is permitted by virtue of section 40(11).

(6)The CMA must prepare and publish a statement of policy in relation to the
enforcement of notices given under section 38.

(7)25The statement must include a statement about the considerations relevant to
the determination of the nature and amount of any penalty imposed under
subsection (1) or (2).

(8)The CMA may revise its statement of policy under subsection (6) and, where it
does so, it must publish the revised statement.

(9)30The CMA must consult such persons as it considers appropriate when
preparing or revising its statement of policy under subsection (6) or (8).

(10)Any statement or revised statement published by the CMA under this section
is to be published in such manner as the CMA considers appropriate.

40 Penalties

(1)35A penalty imposed under section 39(1) or (2) may be of such amount as the
CMA considers appropriate.

(2)The amount of a penalty imposed under section 39(1) may be—

(a)a fixed amount,

(b)an amount calculated by reference to a daily rate, or

(c)40a combination of a fixed amount and an amount calculated by reference
to a daily rate.

(3)The amount of a penalty imposed under section 39(2) must be a fixed amount.

(4)A penalty imposed under section 39(1) may not exceed—

(a)in the case of a fixed amount, such amount as the Secretary of State may
45specify in regulations,

(b)in the case of an amount calculated by reference to a daily rate, such
amount per day as the Secretary of State may so specify, and

(c)in the case of a fixed amount and an amount calculated by reference to
a daily rate, such fixed amount and such amount per day as the
5Secretary of State may so specify.

(5)A penalty imposed under section 39(2) may not exceed such amount as the
Secretary of State may specify in regulations.

(6)Regulations under subsection (4) or (5) may not specify—

(a)in the case of a fixed amount, an amount exceeding £30,000,

(b)10in the case of an amount calculated by reference to a daily rate, an
amount per day exceeding £15,000, and

(c)in the case of a fixed amount and an amount calculated by reference to
a daily rate, a fixed amount exceeding £30,000 and an amount per day
exceeding £15,000.

(7)15Regulations under subsection (4) or (5) are subject to negative resolution
procedure.

(8)Before making regulations under subsection (4) or (5) the Secretary of State
must consult—

(a)the CMA, and

(b)20such other persons as the Secretary of State considers appropriate.

(9)In imposing a penalty by reference to a daily rate—

(a)no account is to be taken of any days before the service on the person
concerned of notice of the penalty under section 112 of the Enterprise
Act 2002 (as applied by subsection (11)), and

(b)25unless the CMA determines an earlier date (whether before or after the
penalty is imposed), the amount payable ceases to accumulate at the
beginning of the earliest of the days mentioned in subsection (10).

(10)The days mentioned in subsection (9) are—

(a)the day on which the requirement of the notice concerned under section
3038 is satisfied;

(b)the day referred to in paragraph (a)(i), (a)(ii), or (a)(iii), (b), (c), (d) or (e)
(as the case may be) of section 39(4).

(11)Sections 112 to 115 of the Enterprise Act 2002 (procedural requirements,
appeals etc in relation to penalties) apply in relation to a penalty imposed
35under section 39(1) or (2) as they apply in relation to a penalty imposed under
section 110(1) of that Act.

Interpretation

41 Interpretation of Part 4

(1)This section applies for the purposes of this Part.

(2)40“The CMA” has the meaning given by section 28(10).

(3)References to the “operation of the internal market in the United Kingdom” are
to be read as including a reference to aspects of its operation, for example its
operation in relation to a particular description of goods or services or in a
particular area or region of the United Kingdom.

(4)“Regulatory provision” has the meaning given by section 28(8).

(5)“Relevant competence” means—

(a)in relation to the Scottish Ministers, Scottish devolved competence;

(b)in relation to the Welsh Ministers, Welsh devolved competence;

(c)5in relation to a Northern Ireland department, Northern Ireland
devolved competence;

(d)in relation to a the Secretary of State, reserved competence.

(6)“Relevant national authority” means any of the following—

(a)the Secretary of State;

(b)10the Scottish Ministers;

(c)the Welsh Ministers;

(d)a Northern Ireland department.

(7)“Scottish devolved competence”, “Welsh devolved competence”, “Northern
Ireland devolved competence” and “reserved competence” are to be
15interpreted in accordance with subsections (8) to (11).

(8)A regulatory provision, so far as applying to Scotland—

(a)is within Scottish devolved competence if it—

(i)would be within the legislative competence of the Scottish
Parliament if contained in an Act of that Parliament, or

(ii)20is provision which could be made in subordinate legislation by
the Scottish Ministers, the First Minister or the Lord Advocate
acting alone;

(b)otherwise, is within reserved competence.

(9)A regulatory provision, so far as applying to Wales—

(a)25is within Welsh devolved competence if it—

(i)would be within the legislative competence of Senedd Cymru if
contained in an Act of Senedd Cymru (assuming that any
consent by a Minister of the Crown were given), or

(ii)is provision which could be made in subordinate legislation by
30the Welsh Ministers acting alone;

(b)otherwise, is within reserved competence.

(10)A regulatory provision, so far as applying to Northern Ireland—

(a)is within Northern Ireland devolved competence if it—

(i)would be within the legislative competence of the Northern
35Ireland Assembly, and would not require the consent of the
Secretary of State, if contained in an Act of that Assembly,

(ii)is contained in, or was made under, Northern Ireland
legislation, and would be within the legislative competence of
the Northern Ireland Assembly, and would require the consent
40of the Secretary of State, if contained in an Act of that Assembly,
or

(iii)is provision which could be made in subordinate legislation by
the First Minister and deputy First Minister in Northern Ireland
acting jointly, a Northern Ireland Minister or a Northern Ireland
45department;

(b)otherwise, is within reserved competence.

(11)A regulatory provision, so far as applying to England, is within reserved
competence.

Part 5 Financial assistance powers

42 5Power to provide financial assistance for economic development etc

(1)A Minister of the Crown may, out of money provided by Parliament, provide
financial assistance to any person for, or in connection with, any of the
following purposes—

(a)promoting economic development in the United Kingdom or any area
10of the United Kingdom;

(b)providing infrastructure at places in the United Kingdom (including
infrastructure in connection with any of the other purposes mentioned
in this section);

(c)supporting cultural activities, projects and events that the Minister
15considers directly or indirectly benefit the United Kingdom or
particular areas of the United Kingdom;

(d)supporting activities, projects and events relating to sport that the
Minister considers directly or indirectly benefit the United Kingdom or
particular areas of the United Kingdom;

(e)20supporting international educational and training activities and
exchanges;

(f)supporting educational and training activities and exchanges within
the United Kingdom.

(2)In this section—

• 25“infrastructure” includes—

  (a)

  water, electricity, gas, telecommunications, sewerage or other
  services (for example, the provision of heat),

  (b)

  railway facilities (including rolling stock), roads or other
  transport facilities,

  (c)

  30health, educational, cultural or sports facilities,

  (d)

  court or prison facilities, and

  (e)

  housing;

• “promoting”, in relation to economic development, includes taking any
  measure likely to contribute directly or indirectly to economic
  35development (which might include, for example, measures relating to
  social inclusion);

• “providing”, in relation to infrastructure, includes acquiring, designing,
  constructing, converting, improving, operating and repairing
  infrastructure;

• 40“sport” includes any physical recreation.

43 Financial assistance: supplementary

(1)Financial assistance under section 42—

(a)may be provided by way of grants, loans, guarantees or indemnities or
in any other form;

(b)may be provided subject to conditions (which may include conditions
about repayment with or without interest or other return);

(c)may be provided under a contract;

(d)may be provided to an investment fund for onward investment or
5administrative costs relating to onward investment.

(2)The power to provide financial assistance under section 42 is in addition to
(and does not limit or replace) any other power of a Minister of the Crown to
provide financial assistance.

Part 6 10Final provisions

44 Regulation of distortive or harmful subsidies

(1)In Part 2 of Schedule 5 to the Scotland Act 1998 (specific reservations), under
Head C (trade and industry), at the end insert—

“C16. Distortive or harmful subsidies

15Regulation of the provision of subsidies which are or may be distortive
or harmful by a public authority to persons supplying goods or services
in the course of a business.

Interpretation

• “Public authority” means a person who exercises functions of a
  20public nature.

• “Subsidy” includes assistance provided to a person directly or
  indirectly by way of income or price support, grant, loan,
  guarantee, indemnity, the provision of goods or services and
  any other kind of assistance, whether financial or otherwise and
  25whether actual or contingent.

• A subsidy is provided “by a public authority” if it is provided by
  that authority directly or indirectly.

• A subsidy is “distortive or harmful” if it distorts competition
  between, or otherwise causes harm or injury to, persons
  30supplying goods or services in the course of a business, whether
  or not those persons are established in the United Kingdom.”

(2)In Schedule 2 to the Northern Ireland Act 1998 (excepted matters), after
paragraph 16 insert—

“16ARegulation of the provision of subsidies which are or may be
35distortive or harmful by a public authority to persons supplying
goods or services in the course of a business.

In this paragraph—

• “Public authority” means a person who exercises functions of a
  public nature.

• 40“Subsidy” includes assistance provided to a person directly or
  indirectly by way of income or price support, grant, loan,
  guarantee, indemnity, the provision of goods or services and
  any other kind of assistance, whether financial or otherwise
  and whether actual or contingent.

• A subsidy is provided “by a public authority” if it is provided
  by that authority directly or indirectly.

• A subsidy is “distortive or harmful” if it distorts competition
  between, or otherwise causes harm or injury to, persons
  5supplying goods or services in the course of a business,
  whether or not those persons are established in the United
  Kingdom.”

(3)In Part 2 of Schedule 7A to the Government of Wales Act 2006 (specific
reservations), under Head C (trade and industry), at the end insert—

“C18. 10Distortive or harmful subsidies

Regulation of the provision of subsidies which are or may be distortive
or harmful by a public authority to persons supplying goods or services
in the course of a business.

Interpretation

• 15“Public authority” means a person who exercises functions of a
  public nature.

• “Subsidy” includes assistance provided to a person directly or
  indirectly by way of income or price support, grant, loan,
  guarantee, indemnity, the provision of goods or services and
  20any other kind of assistance, whether financial or otherwise and
  whether actual or contingent.

• A subsidy is provided “by a public authority” if it is provided by
  that authority directly or indirectly.

• A subsidy is “distortive or harmful” if it distorts competition
  25between, or otherwise causes harm or injury to, persons
  supplying goods or services in the course of a business, whether
  or not those persons are established in the United Kingdom.”

45 Protection of Act against modification

(1)In Schedule 4 to the Scotland Act 1998 (enactments etc. protected from
30modification), after paragraph (1)(2)(g) insert “, and

“(h)the United Kingdom Internal Market Act 2020”

(2)In paragraph 5(1) of Schedule 7B to the Government of Wales Act 2006
(protected enactments), in the table after the entry for the European Union
(Withdrawal) Act 2018 insert—

(3)In section 7 of the Northern Ireland Act 1998 (entrenched enactments)—

(a)omit the “and” at the end of paragraph (d), and

(b)after paragraph (e) insert “, and

“(f)the United Kingdom Internal Market Act 2020.”

(4)40No power to make subordinate legislation contained in primary legislation
passed or made before this section comes into force may be exercised so as to
amend, repeal or otherwise modify the operation of this Act.

46 Further provision in connection with the Northern Ireland Protocol

(1)The following provisions cease to have effect when Articles 5 to 10 of the
Northern Ireland Protocol cease to apply—

(a)section 11 and Part [Part removed], and

(b)5section 8C(5A) of the European Union (Withdrawal) Act 2018 (as
inserted by subsection (3)).

(2)Nothing in this Act except the amendment made by subsection (3) (including,
in particular, section 45(4)) limits—

(a)the power to make provision under section 8C of the European Union
10(Withdrawal) Act 2018 (regulations in connection with the Protocol)
(including as that power may be used to modify this Act), or

(b)the effect of any regulations under that section.

(3)In section 8C of the European Union (Withdrawal) Act 2018, after subsection
(5) insert—

“(5A)15Regulations under subsection (1) may not amend, repeal or otherwise
modify the operation of section [Clause removed] of the United
Kingdom Internal Market Act 2020 (“the 2020 Act”), except by
making—

(a)provision of the sort that is contemplated by section [Clause
20removed](2) of the 2020 Act (permitted checks);

(b)provision under subsection (6);

(c)provision of the sort described in paragraph 21(b) of Schedule 7
(supplementary and transitional provision etc) in connection
with—

(i)25provision within either of the preceding paragraphs;

(ii)Articles 5 to 10 of the Northern Ireland Protocol ceasing
to apply (and the resulting operation of section 46(1) of
the 2020 Act).”

47 Regulations: general

(1)30Any power to make regulations under this Act is exercisable by statutory
instrument.

(2)Any power to make regulations under this Act includes power—

(a)to amend, repeal or otherwise modify legislation;

(b)to make different provision for different purposes;

(c)35to make supplementary, incidental, consequential, transitional,
transitory or saving provision (including provision made in reliance on
paragraph (a)).

(3)This section does not apply to regulations under section 50(3).

48 Regulations: references to parliamentary procedures

(1)40Where regulations under this Act are subject to affirmative resolution
procedure, the regulations may not be made unless a draft of the statutory
instrument containing them has been laid before and approved by a resolution
of each House of Parliament.

(2)Where regulations under this Act are subject to made affirmative procedure—

(a)the statutory instrument containing them must be laid before
Parliament as soon as reasonably practicable after being made; and

(b)the regulations cease to have effect at the end of the period of 40 days
beginning with the day on which they are made unless, during that
5period, the instrument is approved by a resolution of each House of
Parliament.

(3)In calculating the period of 40 days, no account is to be taken of any time
during which—

(a)Parliament is dissolved or prorogued, or

(b)10both Houses of Parliament are adjourned for more than 4 days.

(4)Where regulations cease to have effect as a result of subsection (3) that does
not—

(a)affect anything previously done under or by virtue of the regulations,
or

(b)15prevent the making of new regulations.

(5)Subsections (2) to (4) do not apply to regulations if a draft of the statutory
instrument containing them has been laid before, and approved by a resolution
of, each House of Parliament.

(6)Where regulations under this Act are subject to negative resolution procedure
20the statutory instrument containing them is subject to annulment in pursuance
of a resolution of either House of Parliament.

(7)Any provision that may be made by regulations under this Act subject to
negative resolution procedure may be made in regulations subject to
affirmative resolution procedure or made affirmative procedure.

49 25Interpretation: general

In this Act—

• “affirmative resolution procedure” is to be construed in accordance with
  section 48(1);

• “legislation” means primary legislation, subordinate legislation and
  30retained direct EU legislation;

• “made affirmative resolution procedure” is to be construed in accordance
  with section 48(2);

• “Minister of the Crown” has the same meaning as the Ministers of the
  Crown Act 1975 (see section 8(1) of that Act);

• 35“negative resolution procedure” is to be construed in accordance with
  section 48(6);

• “Northern Ireland Protocol” means the Protocol on Ireland/Northern
  Ireland in the EU withdrawal agreement;

• “part of the United Kingdom” means England, Wales, Scotland or
  40Northern Ireland;

• “primary legislation” means—

  (a)

  an Act of Parliament;

  (b)

  an Act of the Scottish Parliament;

  (c)

  an Act or Measure of Senedd Cymru; or

  (d)

  45Northern Ireland legislation;

• “subordinate legislation” means an instrument made under primary
  legislation or retained direct EU legislation

50 Extent, commencement and short title

(1)This Act extends to England and Wales, Scotland and Northern Ireland.

(2)This section comes into force on the day on which this Act is passed.

(3)The other provisions of this Act come into force on such day as the Secretary of
5State may by regulations made by statutory instrument appoint.

(4)A statutory instrument containing regulations under subsection (3) may not
appoint a day for the commencement of section [Clause removed], [Clause
removed] or [Clause removed] unless—

(a)a Minister of the Crown has moved a motion in the House of Commons
10to the effect that sections [Clause removed], [Clause removed] or
[Clause removed] may be commenced on or after a day specified in the
motion (“the specified day”),

(b)the motion has been approved by a resolution of that House,

(c)a motion to the effect that the House of Lords takes note of the specified
15day (or the day which is proposed to be the specified day) has been
tabled in the House of Lords by a Minister of the Crown, and

(d)the day appointed by the regulations is the same as or is after the
specified day.

(5)Regulations under subsection (3) may—

(a)20appoint different days for different purposes;

(b)make transitional or saving provision in connection with the coming
into force of any provision of this Act.

(6)This Act may be cited as the United Kingdom Internal Market Act 2020.