Legislative and Regulatory Reform Bill

House of Commons

Session 2005 - 06
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Other Bills before Parliament

Legislative and Regulatory Reform Bill

Legislative and Regulatory Reform Bill
Part 1 — Power to reform legislation etc
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Procedure
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Procedure: introductory
(1)
An order under section 1 must be made by statutory instrument.
(2)
A Minister may not make an order under section 1 unless—
(a)
he has consulted in accordance with section 11;
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(b)
following that consultation, he has laid a draft order and explanatory
document before Parliament in accordance with section 12; and
(c)
the order is made, as determined under section 13, in accordance
with—
(i)
the negative resolution procedure (see section 14);
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(ii)
the affirmative resolution procedure (see section 15); or
(iii)
the super-affirmative resolution procedure (see section 16).
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Consultation
(1)
If a Minister proposes to make an order under section 1 he must—
(a)
consult such organisations as appear to him to be representative of
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interests substantially affected by the proposals,
(b)
where the proposals relate to the functions of one or more statutory
bodies, consult those bodies, or persons appearing to him to be
representative of those bodies,
(c)
consult the Assembly where the proposals, so far as applying in or as
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regards Wales, relate to any matter in relation to which the Assembly
exercises functions (and where the Assembly’s agreement is not
required under section 9),
(d)
where the order is made for the purpose of implementing a
recommendation of any one or more of the United Kingdom Law
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Commissions, consult that Commission or those Commissions, and
(e)
consult such other persons as he considers appropriate.

But this subsection does not apply to the extent that subsection (2) applies.
(2)
To the extent that a Minister proposes to make an order under section 1 for the
purpose of implementing a recommendation of any one or more of the United
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Kingdom Law Commissions without material changes, the Minister must
carry out such consultation as he considers appropriate having regard to the
consultation carried out by that Commission or those Commissions.
(3)
If, as a result of any consultation required by subsection (1) or (2), it appears to
the Minister that it is appropriate to change the whole or any part of his
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proposals, he must undertake such further consultation with respect to the
changes as he considers appropriate.
(4)
If, before the day on which this section comes into force, any consultation was
undertaken which, had it been undertaken after that day, would to any extent
have satisfied the requirements of this section, those requirements shall to that
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extent be taken to have been satisfied.
(5)
Where—
(a)
proposals for an order under section 1 are the same as proposals for an
order under section 1 of the Regulatory Reform Act 2001 (c. 6),

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(b)
consultation has at any time been undertaken in relation to the
proposals under section 5 of that Act, and
(c)
that consultation satisfied the requirements of that section in relation to
the proposals,

the requirements of this section shall be taken to have been satisfied in relation
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to the proposals.
(6)
In subsection (1)(b) “statutory body” means—
(a)
a body established by or under any enactment; or
(b)
the holder of any office so established.
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Draft order and explanatory document laid before Parliament
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(1)
If, after the conclusion of the consultation required by section 11, the Minister
considers it appropriate to proceed with the making of an order under section
1, he must lay before Parliament—
(a)
a draft of the order, together with
(b)
an explanatory document.
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(2)
The explanatory document must—
(a)
explain whether the provision contained in the order is made for the
purpose in section 1(1)(a) or (b) or both;
(b)
introduce and give reasons for the provision;
(c)
explain why the Minister considers that—
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(i)
the conditions in section 3(2) are satisfied (where relevant); or
(ii)
the condition in section 3(4) is satisfied;
(d)
to the extent that it is appropriate to do so having regard to the likely
effect of the order, include an assessment of—
(i)
the savings or the increase in costs likely to result from the
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provision; and
(ii)
the other benefits and disbenefits of the provision;
(e)
identify and give reasons for—
(i)
any powers to legislate conferred by the order; and
(ii)
the procedural requirements attaching to those powers; and
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(f)
give details of—
(i)
any consultation undertaken under section 11;
(ii)
any representations received as a result of the consultation;
(iii)
the changes (if any) made as a result of those representations.
(3)
In the case of any provision contained in the order which is made solely for the
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purpose in section 1(1)(a), if the Minister considers that the provision would
have the effect of—
(a)
simplifying or modernising legislation,
(b)
making the overall effect of legislation less onerous, or
(c)
removing inconsistencies or anomalies in legislation,
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he must under subsection (2)(b) explain why.
(4)
In the case of any provision contained in the order which is made for the
purpose in section 1(1)(b), the explanatory document must under subsection
(2)(b) —
(a)
identify the recommendations being implemented;
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(b)
identify the manner in which the order is intended to implement each
of the recommendations; and
(c)
give details of, and reasons for, any differences between the
recommendations and the Minister’s proposals.
(5)
Where a person making representations in response to consultation under
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section 11 has requested the Minister not to disclose them, the Minister must
not disclose them under subsection (2)(f)(ii) if or to the extent that to do so
would (disregarding any connection with proceedings in Parliament)
constitute a breach of confidence actionable by any person.
(6)
If information in representations made by a person in response to consultation
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under section 11 relates to another person, the Minister need not disclose the
information under subsection (2)(f)(ii) if or to the extent that—
(a)
it appears to the Minister that the disclosure of that information could
adversely affect the interests of that other person; and
(b)
the Minister has been unable to obtain the consent of that other person
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to the disclosure.
(7)
Subsections (5) and (6) do not affect any disclosure that is requested by, and
made to, a committee of either House of Parliament charged with reporting on
the draft order.
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Determination of Parliamentary procedure
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(1)
The explanatory document laid with a draft order under section 12 must
contain a recommendation by the Minister as to which of the following should
apply in relation to the making of an order pursuant to the draft order—
(a)
the negative resolution procedure (see section 14);
(b)
the affirmative resolution procedure (see section 15); or
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(c)
the super-affirmative resolution procedure (see section 16).
(2)
The explanatory document must give reasons for the Minister’s
recommendation.
(3)
Where the Minister’s recommendation is that the negative resolution
procedure should apply, that procedure shall apply unless, within the 21-day
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period—
(a)
either House of Parliament requires that the super-affirmative
resolution procedure shall apply, in which case that procedure shall
apply; or
(b)
in a case not falling within paragraph (a), either House of Parliament
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requires that the affirmative resolution procedure shall apply, in which
case that procedure shall apply.
(4)
Where the Minister’s recommendation is that the affirmative resolution
procedure should apply, that procedure shall apply unless, within the 21-day
period, either House of Parliament requires that the super-affirmative
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resolution procedure shall apply, in which case the super-affirmative
resolution procedure shall apply.
(5)
Where the Minister’s recommendation is that the super-affirmative resolution
procedure should apply, that procedure shall apply.
(6)
For the purposes of this section a House of Parliament shall be taken to have
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required a procedure within the 21-day period if—

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(a)
that House resolves within that period that that procedure shall apply;
or
(b)
in a case not falling within paragraph (a), a committee of that House
charged with reporting on the draft order has recommended within
that period that that procedure should apply and the House has not by
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resolution rejected that recommendation within that period.
(7)
In this section the “21-day period” means the period of 21 days beginning with
the day on which the draft order was laid before Parliament under section 12.
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Negative resolution procedure
(1)
For the purposes of this Part, the “negative resolution procedure” in relation to
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the making of an order pursuant to a draft order laid under section 12 is as
follows.
(2)
The Minister may make an order in the terms of the draft order unless within
the 40-day period either House of Parliament resolves that an order may not be
so made.
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(3)
For the purposes of subsection (2) an order is made in the terms of a draft order
if it contains no material changes to the provisions of the draft order.
(4)
In subsection (2) the “40-day period” means the period of 40 days beginning
with the day on which the draft order was laid before Parliament under section
12.
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Affirmative resolution procedure
(1)
For the purposes of this Part the “affirmative resolution procedure” in relation
to the making of an order pursuant to a draft order laid under section 12 is as
follows.
(2)
If after the expiry of the 40-day period the draft order is approved by a
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resolution of each House of Parliament, the Minister may make an order in the
terms of the draft.
(3)
For the purposes of subsection (2) an order is made in the terms of a draft order
if it contains no material changes to the provisions of the draft order.
(4)
In subsection (2) “the 40-day period” has the meaning given by section 14(4).
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Super-affirmative resolution procedure
(1)
For the purposes of this Part the “super-affirmative resolution procedure” in
relation to the making of an order pursuant to a draft order laid under section
12 is as follows.
(2)
The Minister must have regard to—
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(a)
any representations,
(b)
any resolution of either House of Parliament, and
(c)
any recommendations of a committee of either House of Parliament
charged with reporting on the draft order,

made during the 60-day period with regard to the draft order.
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(3)
If, after the expiry of the 60-day period, the Minister wishes to make an order
in the terms of the draft, he must lay before Parliament a statement giving
details of any representations made under subsection (2)(a).
(4)
The Minister may after the laying of such a statement make an order in the
terms of the draft if it is approved by a resolution of each House of Parliament.
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(5)
If, after the expiry of the 60-day period, the Minister wishes to make an order
consisting of a version of the draft order with material changes, he must lay
before Parliament—
(a)
a revised draft order; and
(b)
a statement giving details of—
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(i)
any representations made under subsection (2)(a); and
(ii)
the revisions proposed.
(6)
The Minister may after laying a revised draft order and statement under
subsection (5) make an order in the terms of the revised draft if it is approved
by a resolution of each House of Parliament.
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(7)
For the purposes of subsections (4) and (6) an order is made in the terms of a
draft order if it contains no material changes to the provisions of the draft
order.
(8)
In this section the “60-day period” means the period of 60 days beginning with
the day on which the draft order was laid before Parliament under section 12.
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General
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Calculation of time periods
In calculating any period of days for the purposes of sections 13 to 16, no
account shall be taken of any time during which Parliament is dissolved or
prorogued or during which either House is adjourned for more than four days.
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18
Interpretation of Part 1
In this Part—
“legislation” has the meaning given by section 1(3);
to “legislate” means to legislate by order, rules, regulations or other
subordinate instrument;
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“restate” means replace with alterations only of form or arrangement (and
for these purposes to remove an ambiguity is to make an alteration
other than one of form or arrangement);
“the United Kingdom Law Commissions” has the meaning given by
section 1(4).
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Legislative and Regulatory Reform Bill
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Part 2
Regulators
Exercise of regulatory functions
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Principles
(1)
Any person exercising a regulatory function to which this section applies must
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have regard to the principles in subsection (2) in the exercise of the function.
(2)
Those principles are that—
(a)
regulatory activities should be carried out in a way which is
transparent, accountable, proportionate and consistent;
(b)
regulatory activities should be targeted only at cases in which action is
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needed.
(3)
The duty in subsection (1) is subject to any other requirement affecting the
exercise of the regulatory function.
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Code of practice
(1)
A Minister of the Crown may issue and from time to time revise a code of
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practice in relation to the exercise of regulatory functions.
(2)
Any person exercising a regulatory function to which this section applies must
have regard to the code in the exercise of the function.
(3)
The duty in subsection (2) is subject to any other requirement affecting the
exercise of the regulatory function.
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(4)
Where—
(a)
a court or tribunal finds that a person has failed to comply with any
requirement, restriction or condition,
(b)
the duty in subsection (2) applies in relation to the enforcement of that
requirement, restriction or condition, and
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(c)
it appears to the court or tribunal that there has been a failure to comply
with that duty,

the court or tribunal may take the failure to comply with the duty under
subsection (2) into account in deciding how to deal with the failure to comply
with the requirement, restriction or condition.
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Code of practice: procedure
(1)
Where a Minister of the Crown proposes to issue or revise a code of practice
under section 20, he shall prepare a draft of the code (or revised code).
(2)
The Minister shall, in preparing the draft, seek to secure that it is consistent
with the principles specified in section 19(2).
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(3)
The Minister shall consult the following about the draft—
(a)
persons appearing to him to be representative of persons exercising
regulatory functions;
(b)
such other persons as he considers appropriate.

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(4)
If the Minister determines to proceed with the draft (either in its original form
or with modifications) he shall lay the draft before Parliament.
(5)
If, within the period of 40 days beginning with the day on which it is laid before
Parliament, either House resolves not to approve the draft, the Minister shall
take no further steps in relation to that draft.
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(6)
If no such resolution is made within that period, the Minister shall issue the
code (or revised code) in the form of the draft, and it shall come into force on
such date as the Minister may by order made by statutory instrument appoint.
(7)
For the purposes of subsection (5), no account shall be taken of any period
during which Parliament is dissolved or prorogued or during which either
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House is adjourned for more than four days.
Supplementary
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Functions to which sections 19 and 20 apply
(1)
Sections 19 and 20 apply to regulatory functions specified under this section.
(2)
A Minister of the Crown may by order in accordance with this section specify
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regulatory functions as functions to which sections 19 and 20 apply.
(3)
A Minister may not under subsection (2) specify—
(a)
a regulatory function so far as exercisable in Scotland, if or to the extent
that the function relates to matters which are not reserved matters;
(b)
a regulatory function so far as exercisable in Northern Ireland, if or to
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the extent that the function relates to matters which are transferred
matters; or
(c)
a regulatory function exercisable only in or as regards Wales.
(4)
The Assembly may by order in accordance with this section specify regulatory
functions exercisable only in or as regards Wales as functions to which sections
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19 and 20 apply.
(5)
An order under this section may not specify regulatory functions conferred on
or exercisable by any of the following—
(a)
the Gas and Electricity Markets Authority;
(b)
the Office of Communications;
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(c)
the Office of Rail Regulation;
(d)
the Postal Services Commission;
(e)
the Water Services Regulation Authority.
(6)
Before making an order under this section, the authority making the order
must consult the following—
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(a)
any person (other than the authority) whose functions are to be
specified in the order;
(b)
such other persons as the authority considers appropriate.
(7)
An order under this section may make such consequential, supplementary,
incidental, or transitional provision (including provision amending any
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enactment) as the authority making it considers appropriate; and may make
different provision for different purposes.
(8)
An order under this section must be made by statutory instrument.