School Standards and Framework Bill - continued        House of Commons

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     1. In this Part of this Schedule-
    "the 1996 Act" means the Education Act 1996;
    "the appointed day" means such day as may be appointed for the purposes of this Schedule by an order made by the Secretary of State.
Continued operation of GMS grants provisions
     2. - (1) Subject to the provisions of this paragraph, the GMS grants provisions shall continue to have effect after the appointed day in relation to-
    (a) any payments of maintenance grant under section 244 or 250 of the 1996 Act in respect of any financial year (or part of such a year) beginning before that day; and
    (b) any payments of capital or special purpose grants under section 245, 246, 251 or 252 of that Act made before that day.
      (2) Regulations may provide-
    (a) for any functions of the funding authority under the GMS grants provisions-
      (i) to be discharged instead by the Secretary of State as from a date specified in the regulations, or
      (ii) to be discharged instead by local education authorities as from the appointed day (either subject to obtaining the Secretary of State's consent or otherwise); and
    (b) for any of those provisions to have effect, for any purposes specified in the regulations, with such modifications as are so specified.
      (3) Regulations under sub-paragraph (2) shall not authorise a local education authority to impose any requirement under section 247(1) of that Act (as it has effect by virtue of sub-paragraph (1)); but the Secretary of State may by order-
    (a) impose such a requirement; or
    (b) waive or remove such a requirement even though a local education authority is by such regulations also authorised to do so.
      (4) In this paragraph "the GMS grants provisions" means sections 244 to 254 and 256 to 258 of the 1996 Act and any regulations in force under any of those provisions immediately before the appointed day.
Existing loans
     3. - (1) Any loan made under section 255 of the 1996 Act (loans to governing bodies) shall not be affected by the repeal of that section by this Act.
      (2) Where such a loan was made by the funding authority, any rights or liabilities of the authority in respect of the loan shall become rights or liabilities of the Secretary of State on the appointed day.
Grants by Secretary of State in respect of planned expenditure
     4. - (1) Regulations may provide for the payment by the Secretary of State of grants to-
    (a) the governing bodies of schools to which this paragraph applies, or
    (b) local education authorities,
  in respect of relevant expenditure incurred or to be incurred by them.
      (2) This paragraph applies to a school if immediately before the appointed day-
    (a) the school was a grant-maintained or grant-maintained special school within the meaning of the 1996 Act, or
    (b) proposals for the establishment of the school fell to be implemented in accordance with section 215 of that Act.
      (3) In this paragraph "relevant expenditure" means such expenditure (being expenditure arising out of an obligation incurred or decision made before the appointed day) as may be prescribed.
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Prepared 4 December 1997