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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(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
required a procedure within the 21-day period if—
(a)
that House resolves within that period that that procedure shall apply;
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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
resolution rejected that recommendation within that period.
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(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
the making of an order pursuant to a draft order laid under section 12 is as
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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.
(3)
For the purposes of subsection (2) an order is made in the terms of a draft order
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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
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(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
resolution of each House of Parliament, the Minister may make an order in the
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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
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(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—
(a)
any representations,
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(b)
any resolution of either House of Parliament, and

Legislative and Regulatory Reform Bill
Part 1 — Power to reform legislation etc
9

(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.
(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
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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.
(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
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before Parliament—
(a)
a revised draft order; and
(b)
a statement giving details of—
(i)
any representations made under subsection (2)(a); and
(ii)
the revisions proposed.
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(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.
(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
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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.
General
17
Calculation of time periods
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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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Combination with powers under European Communities Act 1972
(1)
The power to make an order under section 1 may be exercised together with,
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and by the same instrument as, the power to make an order under section 2(2)
of the European Communities Act 1972 (c. 68).
(2)
Where the powers referred to in subsection (1) are so exercised—
(a)
sections 10(2) to 16 above apply to the order under section 2(2) of the
European Communities Act 1972 as to the order under section 1; and
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(b)
paragraph 2(2) of Schedule 2 to the European Communities Act 1972
does not apply.
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Interpretation of Part 1
In this Part—
“legislation” has the meaning given by section 1(3);
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Legislative and Regulatory Reform Bill
Part 2 — Regulators
10

to “legislate” means to legislate by order, rules, regulations or other
subordinate instrument;
“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);
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“the United Kingdom Law Commissions” has the meaning given by
section 1(4).
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
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
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transparent, accountable, proportionate and consistent;
(b)
regulatory activities should be targeted only at cases in which action is
needed.
(3)
The duty in subsection (1) is subject to any other requirement affecting the
exercise of the regulatory function.
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21
Code of practice
(1)
A Minister of the Crown may issue and from time to time revise a code of
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.
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(3)
The duty in subsection (2) is subject to any other requirement affecting the
exercise of the regulatory function.
(4)
Where—
(a)
a court or tribunal finds that a person has failed to comply with any
requirement, restriction or condition,
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(b)
the duty in subsection (2) applies in relation to the enforcement of that
requirement, restriction or condition, and
(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
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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 21, he shall prepare a draft of the code (or revised code).
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Legislative and Regulatory Reform Bill
Part 2 — Regulators
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(2)
The Minister shall, in preparing the draft, seek to secure that it is consistent
with the principles specified in section 20(2).
(3)
The Minister shall consult the following about the draft—
(a)
persons appearing to him to be representative of persons exercising
regulatory functions;
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(b)
such other persons as he considers appropriate.
(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
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take no further steps in relation to that draft.
(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
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during which Parliament is dissolved or prorogued or during which either
House is adjourned for more than four days.
Supplementary
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Functions to which sections 20 and 21 apply
(1)
Sections 20 and 21 apply to regulatory functions specified under this section.
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(2)
A Minister of the Crown may by order in accordance with this section specify
regulatory functions as functions to which sections 20 and 21 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;
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(b)
a regulatory function so far as exercisable in Northern Ireland, if or to
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
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functions exercisable only in or as regards Wales as functions to which sections
20 and 21 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;
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(b)
the Office of Communications;
(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
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must consult the following—
(a)
any person (other than the authority) whose functions are to be
specified in the order;

Legislative and Regulatory Reform Bill
Part 3 — Legislation relating to the European Communities etc
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(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
enactment) as the authority making it considers appropriate; and may make
different provision for different purposes.
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(8)
An order under this section must be made by statutory instrument.
(9)
A Minister of the Crown may not make a statutory instrument containing an
order under this section unless a draft has been laid before, and approved by
resolution of, each House of Parliament.
(10)
In this section—
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“reserved matter” and “Scotland” have the same meanings as in the
Scotland Act 1998 (c. 46);
“transferred matter” and “Northern Ireland” have the same meanings as
in the Northern Ireland Act 1998 (c. 47);
“Wales” has the same meaning as in the Government of Wales Act 1998
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(c. 38).
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“Regulatory functions”
(1)
In this Part “regulatory function” means—
(a)
a function under any enactment of imposing requirements, restrictions
or conditions in relation to any activity;
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(b)
a function which relates to the securing of compliance with, or the
enforcement of, requirements, restrictions or conditions imposed in
relation to any activity under or by virtue of any enactment.
(2)
In subsection (1)—
(a)
the references to a function include a function exercisable by or on
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behalf of the Crown;
(b)
the references to an activity include—
(i)
providing any goods or services;
(ii)
employing or offering employment to any person.
(3)
The functions referred to in subsection (1)(b) do not include functions of
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conducting criminal or civil proceedings.
Part 3
Legislation relating to the European Communities etc
Interpretation of legislation
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References to Community instruments
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(1)
In the Interpretation Act 1978 (c. 30), after section 20 insert—
“20A
References to Community instruments

Where an Act passed after the commencement of this section refers to
a Community instrument that has been amended, extended or applied
by another such instrument, the reference, unless the contrary intention
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Legislative and Regulatory Reform Bill
Part 3 — Legislation relating to the European Communities etc
13

appears, is a reference to that instrument as so amended, extended or
applied.”
(2)
In that Act, in section 22(1) (application to Acts and Measures), after “passed
after the commencement of this Act” insert “(subject, in the case of section 20A,
to the provision made in that section)”.
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(3)
In that Act, in section 24 (application to Northern Ireland), after subsection (3)
insert—
“(3A)
Section 20A applies to Northern Ireland legislation as it applies to
Acts.”
(4)
In the Scotland Act 1998 (Transitory and Transitional Provisions) (Publication
10
and Interpretation etc of Acts of the Scottish Parliament) Order 1999 (S.I. 1999/
1379), in Schedule 1 (statutory interpretation and operation) at the end insert—
“References to Community instruments
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Where an Act of the Scottish Parliament passed after the
commencement of this paragraph refers to a Community instrument
15
that has been amended, extended or applied by another such
instrument, the reference, unless the contrary intention appears, is a
reference to that instrument as so amended, extended or applied.”
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EEA agreement and EEA state
(1)
In the Interpretation Act 1978 (c. 30), in Schedule 1 (defined expressions), after
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the definition of “Crown Estate Commissioners” insert—

““EEA agreement” means the agreement on the European Economic
Area signed at Oporto on 2nd May 1992, together with the Protocol
adjusting that Agreement signed at Brussels on 17th March 1993, as
from time to time modified or supplemented by or under the
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Community Treaties. [The date of the coming into force of this
paragraph.]

“EEA state”, in relation to any time, means—
(a)
a state which at that time is a member State; or
(b)
any other state which at that time is a party to the EEA
30
agreement. [The date of the coming into force of this
paragraph.]”
(2)
In that Act, in section 24 (application to Northern Ireland), in subsection (4),
after “The Corporation Tax Acts” insert—
“EEA agreement and EEA state;”.
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(3)
In the Scotland Act 1998 (Transitory and Transitional Provisions) (Publication
and Interpretation etc of Acts of the Scottish Parliament) Order 1999 (S.I. 1999/
1379), in Schedule 2 (general definitions), after the definition of “Devolution
issue” insert—

““EEA agreement” means the agreement on the European Economic
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Area signed at Oporto on 2nd May 1992, together with the Protocol
adjusting that Agreement signed at Brussels on 17th March 1993, as
from time to time modified or supplemented by or under the
Community Treaties.

Legislative and Regulatory Reform Bill
Part 3 — Legislation relating to the European Communities etc
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“EEA state”, in relation to any time, means—
(a)
a state which at that time is a member State; or
(b)
any other state which at that time is a party to the EEA
agreement.”
(4)
The amendment made by subsection (3) does not have effect in relation to—
5
(a)
an Act of the Scottish Parliament passed before the commencement of
this section; or
(b)
Scottish subordinate legislation (within the meaning of the Order
referred to in subsection (3)) made before the commencement of this
section.
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Implementation of Community obligations etc
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Power to make orders, rules and schemes
(1)
In section 2 of the European Communities Act 1972 (c. 68) (general
implementation of Treaties)—
(a)
in subsection (2), for “by regulations” substitute “by order, rules,
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regulations or scheme”;
(b)
in subsection (4), for “and regulations” substitute “or orders, rules,
regulations or schemes”.
(2)
In Schedule 2 to that Act (provisions as to subordinate legislation)—
(a)
in paragraph 2, in sub-paragraphs (1) and (2), for “regulations”
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substitute “any order, rules, regulations or scheme”;
(b)
in paragraph 3, for “regulations”, wherever occurring, substitute
“order, rules, regulations or scheme”.
(3)
In section 29 of the Government of Wales Act 1998 (c. 38) (implementation of
Community law) in subsections (2) and (3), for “regulations”, wherever
25
occurring, substitute “any order, rules, regulations or scheme”.
(4)
In Schedule 8 to the Scotland Act 1998 (c. 46), in paragraph 15(3), for
“regulations” substitute “any order, rules, regulations or scheme”.
(5)
Where any enactment passed, or subordinate legislation made, before the
coming into force of this section refers to regulations under subsection (2) of
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section 2 of the European Communities Act 1972, a Minister of the Crown may
by order or regulations amend the enactment or subordinate legislation so that
it includes a reference to any order, rules or scheme under that subsection.
(6)
The powers of a Minister of the Crown under subsection (5)—
(a)
so far as exercisable in relation to a matter the exercise of functions in
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respect of which is within devolved competence (within the meaning of
the Scotland Act 1998), shall also be exercisable by the Scottish
Ministers;
(b)
so far as exercisable in relation to a transferred matter (within the
meaning of the Northern Ireland Act 1998 (c. 47)), shall also be
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exercisable by a Northern Ireland department;
(c)
so far as exercisable in relation to a matter in respect of which functions
are exercisable by the Assembly, shall also be exercisable by the
Assembly.
(7)
The power under subsection (5) to make an order or regulations—
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