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Regulatory Enforcement and Sanctions Bill [HL]


Regulatory Enforcement and Sanctions Bill [HL]
Part 1 — The Local Better Regulation Office

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19      

Dissolution of LBRO: tax

(1)   

Where an order under section 18 makes provision under subsection (2)(a) of

that section, the Treasury may by regulations make provision for varying the

way in which a relevant tax has effect in relation to—

(a)   

the property, rights or liabilities transferred, or

5

(b)   

anything done for the purposes of, or in relation to, the transfer.

(2)   

The provision which may be made under subsection (1)(a) includes in

particular provision for—

(a)   

a tax provision not to apply, or to apply with modifications, in relation

to the property, rights or liabilities transferred;

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(b)   

the property, rights or liabilities transferred to be treated in a specified

way for the purposes of a tax provision;

(c)   

the Secretary of State to be required or permitted, with the consent of

the Treasury, to determine, or specify the method for determining,

anything which needs to be determined for the purposes of any tax

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provision so far as relating to the property, rights or liabilities

transferred.

(3)   

The provision which may be made under subsection (1)(b) includes in

particular provision for—

(a)   

a tax provision not to apply, or to apply with modifications, in relation

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to anything done for the purposes of, or in relation to, the transfer;

(b)   

anything done for the purposes of, or in relation to, the transfer to have

or not have a specified consequence or be treated in a specified way;

(c)   

the Secretary of State to be required or permitted, with the consent of

the Treasury, to determine, or specify the method for determining,

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anything which needs to be determined for the purposes of any tax

provision so far as relating to anything done for the purposes of, or in

relation to, the transfer.

(4)   

In this section—

“relevant tax” means income tax, corporation tax, capital gains tax, stamp

30

duty or stamp duty reserve tax;

“tax provision” means a provision of an enactment about a relevant tax.

20      

Orders under Part 1

(1)   

An order or regulations under this Part must be made by statutory instrument.

(2)   

A statutory instrument containing an order made by the Secretary of State

35

under section 4(7), 7(4) or 15(7) is subject to annulment in pursuance of a

resolution of either House of Parliament.

(3)   

A statutory instrument containing an order made by the Secretary of State

under section 4(4) or 18 may not be made unless a draft of the instrument has

been laid before, and approved by resolution of, each House of Parliament.

40

(4)   

A statutory instrument containing an order made by the Welsh Ministers

under section 7(4) or 16(7) is subject to annulment in pursuance of a resolution

of the National Assembly for Wales.

(5)   

A statutory instrument containing regulations made by the Treasury under

section 19 is subject to annulment in pursuance of a resolution of the House of

45

Commons.

 
 

Regulatory Enforcement and Sanctions Bill [HL]
Part 2 — Co-ordination of regulatory enforcement

11

 

21      

Interpretation of Part 1

In this Part—

“LBRO” has the meaning given in section 1;

“the LBRO company” has the meaning given in section 2;

“local authority” has the meaning given in section 3;

5

“relevant function” has the meaning given in section 4.

Part 2

Co-ordination of regulatory enforcement

Introductory

22      

Scope of Part 2

10

(1)   

This Part applies where—

(a)   

a person carries on an activity in the area of two or more local

authorities, and

(b)   

each of those authorities has the same relevant function in relation to

that activity.

15

(2)   

In this Part “the regulated person” means the person referred to in subsection

(1)(a).

23      

“Local authority”

(1)   

In this Part “local authority” means a local authority in England, Wales,

Scotland or Northern Ireland.

20

(2)   

In this Part references to a local authority in England or Wales have the same

meaning as in Part 1.

(3)   

In this Part references to a local authority in Scotland are to a council

constituted under section 2 of the Local Government etc. (Scotland) Act 1994

(c. 39).

25

(4)   

In this Part references to a local authority in Northern Ireland are to a district

council constituted under section 1 of the Local Government Act (Northern

Ireland) 1972 (c. 9).

24      

“Relevant function”

(1)   

In this Part “relevant function”—

30

(a)   

in relation to a local authority in England or Wales, has the same

meaning as in Part 1;

(b)   

in relation to a local authority in Scotland, means a regulatory function

exercised by that authority and specified for the purposes of this Part

by order made by the Secretary of State;

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(c)   

in relation to a local authority in Northern Ireland, means a regulatory

function exercised by that authority and specified for the purposes of

this Part by order made by the Secretary of State.

(2)   

An order under subsection (1)(b) or (c) may only specify a regulatory

function—

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Regulatory Enforcement and Sanctions Bill [HL]
Part 2 — Co-ordination of regulatory enforcement

12

 

(a)   

which is a relevant function for the purposes of Part 1 in relation to local

authorities in England or Wales or both, or

(b)   

which for the purposes of local authorities in Scotland or Northern

Ireland is equivalent to such a function.

(3)   

An order under subsection (1)(b) may not specify a regulatory function so far

5

as exercisable in Scotland, if or to the extent that the function relates to matters

which are not reserved matters.

(4)   

An order under subsection (1)(c) may not specify 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.

10

(5)   

In subsection (3) “reserved matter” and “Scotland” have the same meanings as

in the Scotland Act 1998 (c. 46).

(6)   

In subsection (4) “transferred matter” and “Northern Ireland” have the same

meanings as in the Northern Ireland Act 1998 (c. 47).

Primary authorities

15

25      

Primary authorities

(1)   

For the purposes of this Part LBRO may nominate a local authority to be the

“primary authority” for the exercise of the relevant function in relation to the

regulated person.

(2)   

Sections 27 to 32 apply in any case where a primary authority is nominated

20

under this section in relation to the regulated person.

26      

Nomination of primary authorities

(1)   

LBRO may only nominate a local authority under section 25(1) in relation to the

regulated person if—

(a)   

the authority and the regulated person have agreed in writing to the

25

nomination, or

(b)   

the regulated person has requested LBRO to make a nomination under

section 25(1) for the exercise of the relevant function in relation to the

regulated person,

   

and LBRO considers the authority suitable for nomination.

30

(2)   

LBRO may in particular consider as suitable for nomination under subsection

(1)—

(a)   

the local authority in whose area the regulated person principally

carries out the activity in relation to which the relevant function is

exercised;

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(b)   

the local authority in whose area the regulated person administers the

carrying out of that activity.

(3)   

Before nominating a local authority under section 25(1) in the case referred to

in subsection (1)(b) LBRO must consult—

(a)   

that authority, and

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(b)   

the regulated person.

(4)   

LBRO must have particular regard to any representations made by a local

authority pursuant to subsection (3) as to the resources available to it.

 
 

Regulatory Enforcement and Sanctions Bill [HL]
Part 2 — Co-ordination of regulatory enforcement

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(5)   

LBRO may at any time revoke a nomination under section 25(1) if—

(a)   

it considers that the authority is no longer suitable for nomination, or

(b)   

it considers it appropriate to do so for any other reason,

   

and subsections (2) to (4) apply in relation to a revocation of a nomination as in

relation to a nomination.

5

(6)   

LBRO must maintain, or cause to be maintained, a register of nominations

under section 25(1).

Functions of primary authorities

27      

Advice and guidance

(1)   

The primary authority has the function of—

10

(a)   

giving advice and guidance to the regulated person in relation to the

relevant function;

(b)   

giving advice and guidance to other local authorities with the relevant

function as to how they should exercise it in relation to the regulated

person.

15

(2)   

The primary authority may make arrangements with the regulated person as

to how it will discharge its function under subsection (1).

28      

Enforcement action

(1)   

Subject as follows, a local authority other than the primary authority (“the

enforcing authority”) must notify the primary authority before taking any

20

enforcement action against the regulated person pursuant to the relevant

function.

(2)   

If the primary authority determines within the relevant period that the

proposed enforcement action is inconsistent with advice or guidance

previously given by the primary authority (generally or specifically), it may

25

within that period direct the enforcing authority not to take the enforcement

action.

(3)   

If the enforcing authority is not directed as specified in subsection (2) and

continues to propose to take the enforcement action, it must inform the

regulated person.

30

(4)   

The enforcing authority may not take the proposed enforcement action—

(a)   

at any time during the relevant period;

(b)   

at any time after the end of that period, if it is directed as specified in

subsection (2).

(5)   

In this Part “enforcement action” means, subject to subsection (6)—

35

(a)   

any action which relates to securing compliance with any restriction,

requirement or condition in the event of breach (or putative breach) of

a restriction, requirement or condition;

(b)   

any action taken with a view to or in connection with the imposition of

any sanction (criminal or otherwise) in respect of an act or omission;

40

(c)   

any action taken with a view to or in connection with the pursuit of any

remedy conferred by an enactment in respect of an act or omission.

 
 

Regulatory Enforcement and Sanctions Bill [HL]
Part 2 — Co-ordination of regulatory enforcement

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(6)   

The Secretary of State may by order with the consent of the Welsh Ministers

specify action which is or is not to be regarded as enforcement action for the

purposes of this Part.

(7)   

Schedule 4 (which makes provision for questions arising under this section to

be referred to LBRO) has effect.

5

(8)   

Where an enactment limits the period within which the enforcing authority

may take the proposed enforcement action, any time during which the

authority is prohibited under this section or Schedule 4 from taking the action

is to be disregarded in calculating that period.

(9)   

For the purposes of this section “relevant period” means—

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(a)   

the period of five working days beginning with the day after that on

which the primary authority is notified under subsection (1), or

(b)   

such longer period beginning with that day as LBRO may direct.

(10)   

In subsection (9)(b) “working day” means a day other than—

(a)   

a Saturday or Sunday,

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(b)   

Christmas Day or Good Friday, or

(c)   

a day which is a bank holiday under the Banking and Financial

Dealings Act 1971 (c. 80) in—

(i)   

the part of the United Kingdom where the primary authority is,

or

20

(ii)   

(if different) the part of the United Kingdom where the

enforcing authority is.

29      

Enforcement action: exclusions

(1)   

The Secretary of State shall by order with the consent of the Welsh Ministers

prescribe circumstances in which section 28(1) to (4) shall not apply.

25

(2)   

Where a local authority other than the primary authority takes enforcement

action against the regulated person in circumstances prescribed under

subsection (1), the authority must inform the primary authority of the

enforcement action it has taken as soon as it reasonably can.

(3)   

The Secretary of State shall in particular under subsection (1) prescribe

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circumstances for the purpose of securing that section 28(1) to (4) shall not

apply—

(a)   

where the enforcement action is required urgently to avoid a significant

risk of serious harm to human health or the environment (including the

health of animals or plants) or the financial interests of consumers;

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(b)   

where the application of section 28(1) to (4) would be wholly

disproportionate.

30      

Inspection plans

(1)   

Where a relevant function consists of or includes a function of inspection, the

primary authority may in accordance with this section make an inspection

40

plan.

(2)   

An “inspection plan” is a plan containing recommendations as to how a local

authority with the function of inspection should exercise it in relation to the

regulated person.

 
 

Regulatory Enforcement and Sanctions Bill [HL]
Part 2 — Co-ordination of regulatory enforcement

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(3)   

An inspection plan may in particular set out—

(a)   

the frequency at which, or circumstances in which, inspections should

be carried out;

(b)   

what an inspection should consist of.

(4)   

Before making an inspection plan the primary authority must consult the

5

regulated person.

(5)   

When making an inspection plan the primary authority must take into account

any relevant recommendations relating to inspections which are published by

any person (other than a local authority) pursuant to a regulatory function.

(6)   

Where a primary authority has made an inspection plan, it must, if LBRO

10

consents to the plan, bring the plan to the notice of the other local authorities

with the function of inspection.

(7)   

A local authority (including the primary authority) exercising the function of

inspection in relation to the regulated person must have regard to a plan to

which consent has been given under subsection (6).

15

(8)   

Before a local authority other than the primary authority exercises the function

of inspection in relation to the regulated person otherwise than in accordance

with a plan to which consent has been given under subsection (6), it must

notify the primary authority.

(9)   

A notification under subsection (8) must include reasons for exercising the

20

function otherwise than in accordance with the plan.

(10)   

A primary authority may from time to time revise a plan made by it under this

section (and subsections (3) to (9) apply in relation to any revision of the plan).

Primary authorities: supplementary

31      

Power to charge

25

The primary authority may charge the regulated person such fees as it

considers to represent the costs reasonably incurred by it in the exercise of its

functions under this Part in relation to the regulated person.

32      

LBRO support

(1)   

LBRO may do anything it considers appropriate for the purpose of supporting

30

the primary authority in the exercise of the authority’s functions under this

Part.

(2)   

That includes making grants to the authority.

General

33      

LBRO guidance

35

(1)   

LBRO may give guidance to any one or more local authorities about the

operation of this Part.

(2)   

The guidance may include, in particular, guidance to local authorities about—

(a)   

arrangements under section 27(2);

 
 

Regulatory Enforcement and Sanctions Bill [HL]
Part 3 — Civil sanctions

16

 

(b)   

notification of inspection plans under section 30(6);

(c)   

the charging of fees under section 31.

(3)   

A local authority must have regard to any guidance given to it under this

section.

(4)   

Before giving guidance under this section LBRO must consult such persons as

5

it considers appropriate.

(5)   

LBRO may not give guidance under subsection (2)(c)—

(a)   

without the consent of the Secretary of State;

(b)   

without having consulted the Welsh Ministers.

(6)   

LBRO must publish (in such manner as it considers appropriate) any guidance

10

given by it under this section.

(7)   

LBRO may at any time vary or revoke any guidance given under this section

by further guidance under this section.

34      

Orders under Part 2

(1)   

An order under this Part is to be made by statutory instrument.

15

(2)   

An order under this Part is subject to annulment in pursuance of a resolution

of either House of Parliament.

35      

Interpretation of Part 2

In this Part—

“enforcement action” has the meaning given in section 28;

20

“LBRO” has the meaning given in section 1;

“local authority” has the meaning given in section 23;

“the regulated person” has the meaning given in section 22(2);

“relevant function” has the meaning given in section 24.

Part 3

25

Civil sanctions

Orders under Part 3: introductory

36      

Power to make orders providing for civil sanctions

(1)   

A Minister of the Crown may by order in accordance with this Part make—

(a)   

the provision specified in section 39 (fixed monetary penalties);

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(b)   

the provision specified in section 42 (discretionary requirements);

(c)   

the provision specified in section 46 (stop notices);

(d)   

the provision specified in section 50 (enforcement undertakings).

(2)   

The Welsh Ministers may by order in accordance with this Part make any such

provision, where the provision relates to a Welsh ministerial matter.

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(3)   

An order under this Part is to be made by statutory instrument.

 
 

 
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