The Advanced Research and Invention Agency

1 Establishment of ARIA

(1)A body corporate called the Advanced Research and Invention Agency is
established.

(2)5In this Act that body is referred to as “ARIA”.

(3)Schedule 1 contains further provision about ARIA.

2 ARIA’s functions

(1)ARIA may do, or commission or support others to do, any of the following—

(a)conduct scientific research;

(b)10develop and exploit scientific knowledge;

(c)collect, share, publish and advance scientific knowledge.

(2)In exercising its function of supporting others, ARIA may, in particular—

(a)encourage, facilitate and provide advice;

(b)provide financial support by way of grants, loans, investments in
15companies or other entities, or in any other form (including prizes);

(c)make available rights or other property (including by way of loan,
licence or gift or other transfer).

(3)Where ARIA provides financial support, or makes property available, it may
do so subject to conditions.

(4)The conditions may, in particular, include provision under which—

(a)financial support is to be repaid or otherwise made good (with or
5without payment of interest);

(b)property is to be restored;

(c)financial support provided by ARIA may be treated as convertible to
equity interest in the business entity which has received such support;

(d)for a period of ten years after ARIA has provided financial support, or
10made property available, the business entity which has received such
support must obtain the consent of ARIA before—

(i) transferring specified intellectual property rights from the
United Kingdom to any territory outside the United Kingdom,
or

(ii)15selling or otherwise transferring a controlling interest in that
entity to another entity not resident in the United Kingdom;

(e)information is to be provided to ARIA for the purpose of the exercise of
any of its functions.

(5)The activities which ARIA may do, commission or support in exercising a
20function are not restricted to activities in the United Kingdom.

(6)In exercising its functions, ARIA must have regard to the desirability of doing
so for the benefit of the United Kingdom, through—

(a)contributing to economic growth, or an economic benefit, in the United
Kingdom,

(b)25promoting scientific innovation and invention in the United Kingdom,
or

(c)improving the quality of life in the United Kingdom (or in the United
Kingdom and elsewhere).

3 Ambitious research, development and exploitation: tolerance to failure

30In exercising any of its functions under this Act, ARIA may give particular
weight to the potential for significant benefits to be achieved or facilitated
through scientific research, or the development and exploitation of scientific
knowledge, that carries a high risk of failure.

4 Grants to ARIA from the Secretary of State

(1)35The Secretary of State may make grants to ARIA.

(2)Grants under subsection (1) may be subject to conditions.

(3)The conditions may, in particular, include provision under which sums paid
by the Secretary of State under subsection (1) are to be repaid (with or without
payment of interest).

5 40National security directions

(1)The Secretary of State may give ARIA directions as to the exercise of its
functions if the Secretary of State considers it necessary or expedient in the
interests of national security.

(2)The power to give directions under this section includes power to vary or
revoke a direction.

(3)ARIA must comply with a direction given under this section.

6 Information

(1)5ARIA must provide the Secretary of State with such information as the
Secretary of State may request for the purposes of or in connection with the
Secretary of State’s functions in relation to ARIA.

This is subject to subsections (4) and (5).

(2)Information provided under subsection (1) must be provided in such form as
10the Secretary of State may request.

(3)A disclosure of information required under this section does not breach—

(a)any obligation of confidence owed by ARIA, or

(b)any other restriction on the disclosure of information (however
imposed).

(4)15This section does not require a disclosure of information if the disclosure
would contravene the data protection legislation.

In determining whether a disclosure would do so, the duty imposed by this
section is to be taken into account.

(5)This section does not require the disclosure of anything in respect of which a
20claim to legal professional privilege (or, in Scotland, to confidentiality of
communications) could be maintained in legal proceedings.

(6)In this section “the data protection legislation” has the same meaning as in the
Data Protection Act 2018 (see section 3 of that Act).

7 Transfer schemes

25Schedule 2 contains provision about schemes for the transfer of staff and
property, rights and liabilities to ARIA.

8 Power to dissolve ARIA

(1)The Secretary of State may by regulations make provision for the dissolution
of ARIA.

(2)30Regulations may not be made under this section within ten years after the date
on which this Act is passed.

(3)Before making regulations under this section, the Secretary of State must
consult—

(a)ARIA, and

(b)35such other persons as the Secretary of State considers appropriate.

(4)Regulations under this section may, in particular—

(a)provide for the transfer of property, rights or liabilities of ARIA to the
Secretary of State or any other person;

(b)create or extinguish rights, or impose or extinguish liabilities, in
40connection with provision made under paragraph (a);

(c)make provision about the continuing effect of things done by ARIA;

(d)make provision about the continuation of things (including legal
proceedings) in the process of being done by, on behalf of, or in relation
to, ARIA when a transfer takes effect;

(e)provide for references to ARIA in any instrument or document to be
5treated as references to another person;

(f)make provision about the payment by the Secretary of State or ARIA of
compensation to any person who suffers loss or damage as a result of
the dissolution.

(5)The property, rights or liabilities mentioned in subsection (4)(a) include—

(a)10property, rights or liabilities that could not otherwise be transferred;

(b)property acquired, and rights and liabilities arising, after a transfer;

(c)criminal liabilities.

(6)Regulations under this section—

(a)may transfer rights and liabilities relating to employees, but

(b)15may not affect the operation of the Transfer of Undertakings
(Protection of Employment) Regulations 2006 (S.I. 2006/246).

(7)Consequential provision made under this section by virtue of section 10(2) may
modify any provision, whenever passed or made, of, or made under—

(a)primary legislation, or

(b)20retained direct EU legislation.

(8)In subsection (7)—

• “modify” includes amend, repeal or revoke;

• “primary legislation” means—

  (a)

  an Act (including this Act);

  (b)

  25an Act of the Scottish Parliament;

  (c)

  an Act or Measure of Senedd Cymru;

  (d)

  Northern Ireland legislation.

Consequential amendments

9 Consequential amendments

30Schedule 3 contains consequential amendments.

General

10 Regulations

(1)A power to make regulations under this Act includes power to make—

(a)transitional or saving provision;

(b)35different provision for different purposes.

(2)A power to make regulations under section 8 or paragraph 11 or 18(2) of
Schedule 1 includes power to make consequential, supplementary or
incidental provision.

(3)Regulations under this Act are to be made by statutory instrument.

(4)A statutory instrument containing regulations under section 8 may not be
made unless a draft of the instrument has been laid before and approved by a
resolution of each House of Parliament.

(5)Any other statutory instrument containing regulations under this Act is subject
5to annulment in pursuance of a resolution of either House of Parliament.

(6)This section does not apply to regulations under section 13.

11 Interpretation

(1)In this Act—

• “functions” includes powers and duties;

• 10“scientific knowledge” means knowledge in, or in connection with, any of
  the sciences (including the social sciences) or technology, and includes
  the results of scientific research;

• “scientific research” means research and development in any of the
  sciences (including the social sciences) or in technology.

(2)15In this Act, references to the transfer of property include references to the grant
of a lease.

12 Extent

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

(2)Any amendment made by this Act has the same extent as the provision
20amended.

13 Commencement

(1)Subject to subsection (2), the provisions of this Act come into force on such day
or days as the Secretary of State may by regulations made by statutory
instrument appoint.

(2)25The following provisions come into force on the day on which this Act is
passed—

(a)paragraph 11 of Schedule 1 and section 1(2) and (3) so far as relating to
it;

(b)sections 10 to 12;

(c)30this section;

(d)section 14.

(3)The Secretary of State may by regulations made by statutory instrument make
transitional or saving provision in connection with the coming into force of any
provision of this Act.

14 35Short title

This Act may be cited as the Advanced Research and Invention Agency Act
2022.

SCHEDULES

Section 1

Schedule 1 The Advanced Research and Invention Agency

Status

1(1)5ARIA is not to be regarded—

(a)as the servant or agent of the Crown, or

(b)as enjoying any status, immunity or privilege of the Crown.

(2)ARIA’s property is not to be regarded—

(a)as the property of the Crown, or

(b)10as property held on behalf of the Crown.

Membership

2(1)ARIA is to consist of—

(a)executive members, and

(b)non-executive members.

(2)15The executive members are—

(a)the Chief Executive Officer,

(b)the Chief Finance Officer, and

(c)at least two and not more than five other members.

(3)The non-executive members are—

(a)20a chair appointed by the Secretary of State,

(b)the Government Chief Scientific Adviser, and

(c)such other members as the Secretary of State may appoint.

(4)The Secretary of State must exercise the power in sub-paragraph (3)(c) so as
to secure that the majority of members are non-executive members.

25Executive members: appointment and status

3(1)The first Chief Executive Officer is to be appointed by the Secretary of State.

(2)Subject to sub-paragraph (1), the executive members are to be appointed by
the chair after consulting the other non-executive members.

(3)But the chair may not appoint an executive member without the consent of
30the Secretary of State.

(4)The Secretary of State may refuse consent under sub-paragraph (3) only
where the Secretary of State considers it necessary or expedient in the
interests of national security.

(5)The executive members are to be members of ARIA’s staff.

Executive members: term

4(1)Any appointment of a Chief Executive Officer must be for a fixed term of not
more than five years.

(2)5A person cannot be appointed as the Chief Executive Officer more than
twice.

5(1)An executive member—

(a)ceases to be a member of ARIA upon ceasing to be a member of
ARIA’s staff, and

(b)10may resign from office by notifying the chair.

(2)The Secretary of State may remove a person from office as an executive
member if the Secretary of State considers it necessary or expedient in the
interests of national security.

Non-executive members: tenure

6(1)15Subject to the provisions of this Schedule, a person holds and vacates office
as a non-executive member of ARIA in accordance with that person’s terms
of appointment.

(2)A person may resign from office as a non-executive member by notifying the
Secretary of State.

(3)20The Secretary of State may remove a person from office as a non-executive
member on any of the following grounds—

(a)absence from ARIA’s meetings for a continuous period of more than
six months without ARIA’s permission,

(b)inability or unfitness to carry out the functions of the office, or

(c)25such other grounds as the Secretary of State considers appropriate.

(4)A person ceases to be a non-executive member of ARIA upon becoming a
member of ARIA’s staff.

(5)Nothing in this paragraph applies to the Government Chief Scientific
Adviser.

30Payment of non-executive members

7(1)ARIA must pay its non-executive members such remuneration as the
Secretary of State may determine.

(2)ARIA must pay, or make provision for paying, to or in respect of a person
who is or has been a non-executive member of ARIA, such sums as the
35Secretary of State may determine in respect of allowances or expenses.

(3)Where a person ceases to be a non-executive member of ARIA, ARIA must
pay the person compensation of such amount as the Secretary of State may
determine if the Secretary of State determines that the person should be
compensated because of special circumstances.

(4)40Sub-paragraphs (1) and [Paragraph Removed] do not apply to the
Government Chief Scientific Adviser.

Staffing

8(1)Subject to paragraph 3, ARIA may—

(a)appoint employees, and

(b)make such other arrangements for the staffing of ARIA as it
5considers appropriate, including arrangements for persons to be
seconded to ARIA.

(2)The terms on which executive members are, by virtue of paragraph 3, to
become, or continue to be—

(a)employees of ARIA, or

(b)10persons seconded to ARIA under sub-paragraph (1)(b),

are to be determined in accordance with this paragraph.

(3)The terms of employment of other employees are to be determined in
accordance with this paragraph.

(4)ARIA must pay its employees such remuneration as may be determined in
15accordance with this paragraph.

(5)ARIA must pay, or make provision for paying,—

(a)to or in respect of an executive member of ARIA, such sums in
respect of pensions or gratuities relating to service as an executive
member as may be determined in accordance with this paragraph,
20and

(b)to or in respect of a person who is a member of ARIA’s staff, such
sums in respect of allowances or expenses as may be determined in
accordance with this paragraph.

(6)ARIA may pay, or make provision for paying,—

(a)25to or in respect of an employee of ARIA, such sums in respect of
pensions or gratuities, other than those mentioned in sub-paragraph
(5)(a), as may be determined in accordance with this paragraph, and

(b)to or in respect of a person who has been an employee of ARIA, such
sums in respect of allowances or expenses as may be determined in
30accordance with this paragraph.

(7)A matter is determined in accordance with this paragraph if—

(a)in the case of a matter which relates to the first Chief Executive
Officer, it is determined by the Secretary of State;

(b)in the case of a matter which relates to any other executive member,
35it is determined by the chair with the consent of the Secretary of
State, after consulting the other non-executive members;

(c)in the case of a matter which relates to any other member of ARIA’s
staff, it is determined by ARIA with the consent of the Secretary of
State.

40Committees and sub-committees

9(1)ARIA may establish committees.

(2)A committee established by ARIA may establish sub-committees.

(3)A committee or sub-committee may consist of or include persons who are
neither members of ARIA nor members of ARIA’s staff.

(4)ARIA may pay such allowances and expenses as ARIA may determine with
the consent of the Secretary of State to any person who—

(a)is a member of a committee or sub-committee, but

(b)is not a member of ARIA or a member of ARIA’s staff.

5Procedure

10(1)ARIA may determine its own procedure and the procedure of any
committee or sub-committee.

(2)The quorum for a meeting of ARIA is half the number of its members.

11The Secretary of State may by regulations make provision about the
10procedures to be adopted for dealing with conflicts of interest of members
of ARIA or members of a committee or sub-committee.

12The validity of proceedings of ARIA, or a committee or sub-committee of
ARIA, is not affected by a vacancy or defective appointment.

Delegation of functions by ARIA

13(1)15ARIA may delegate any of its functions to—

(a)a member of ARIA,

(b)a member of ARIA’s staff authorised for that purpose, or

(c)a committee or sub-committee.

(2)A function is delegated under this paragraph to the extent and on the terms
20that ARIA determines.

Accounts and audit

14(1)ARIA must—

(a)keep proper accounts and proper records in relation to them, and

(b)prepare a statement of accounts in respect of each financial year.

(2)25Each statement of accounts must comply with any directions given by the
Secretary of State as to—

(a)its content and form;

(b)the methods and principles to be applied in preparing it.

(3)ARIA must send a copy of each statement of accounts to the Secretary of
30State and the Comptroller and Auditor General as soon as practicable after
the end of the financial year to which the statement relates.

(4)The Comptroller and Auditor General must—

(a)examine, certify and report on each statement of accounts, and

(b)send a copy of each report and certified statement to the Secretary of
35State.

(5)The Secretary of State must lay before Parliament a copy of each such report
and certified statement.

Annual report

15(1)ARIA must prepare a report on the exercise of its functions during each
40financial year.