Regulatory Enforcement and Sanctions Bill [HL]

House of Commons

Session 2007 - 08
Internet Publications
Other Bills before Parliament

Regulatory Enforcement and Sanctions Bill [HL]

Regulatory Enforcement and Sanctions Bill [HL]
Part 4 — Regulatory burdens
36

73
Functions to which section 72 applies
(1)
Section 72 applies to the following regulatory functions—
(a)
the regulatory functions specified in subsection (2),
(b)
any regulatory function specified by a Minister of the Crown by order
in accordance with this section, and
5
(c)
any regulatory function specified by the Welsh Ministers by order in
accordance with this section.
(2)
The regulatory functions referred to in subsection (1)(a) are the regulatory
functions exercised by—
(a)
the Gas and Electricity Markets Authority,
10
(b)
the Office of Fair Trading,
(c)
the Office of Rail Regulation,
(d)
the Postal Services Commission, and
(e)
the Water Services Regulation Authority,

other than any function exercised under competition law.
15
(3)
Any reference in subsection (2) to a regulatory function—
(a)
where the function is exercisable in Scotland, does not include the
function if or to the extent that it relates to matters which are not
reserved matters,
(b)
where the function is exercisable in Northern Ireland, does not include
20
the function if or to the extent that it relates to matters which are
transferred matters, and
(c)
where the function is exercisable in Wales, does not include the
function if or to the extent that it relates to a Welsh ministerial matter.
(4)
A Minister of the Crown may not under this section specify—
25
(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
the extent that the function relates to matters which are transferred
matters, or
30
(c)
a regulatory function so far as exercisable in Wales, if or to the extent
that the function relates to a Welsh ministerial matter.
(5)
The Welsh Ministers may only specify under this section a regulatory function
if or to the extent that it relates to a Welsh ministerial matter.
(6)
Before making an order under this section the authority making the order must
35
consult—
(a)
any person whose regulatory functions are to be specified in the order,
and
(b)
such other persons as the authority considers appropriate.
(7)
An order under this section may make such consequential, supplementary,
40
incidental or transitional provision (including provision amending any
enactment) as the authority making it considers appropriate.
(8)
An order under this section is to be made by statutory instrument.
(9)
A statutory instrument containing an order under this section made by a
Minister of the Crown may not be made unless a draft of the instrument has
45
been laid before, and approved by resolution of, each House of Parliament.

Regulatory Enforcement and Sanctions Bill [HL]
Part 5 — General
37

(10)
A statutory instrument containing an order under this section made by the
Welsh Ministers may not be made unless a draft of the instrument has been laid
before, and approved by resolution of, the National Assembly for Wales.
(11)
In subsection (4)—
“reserved matter” and “Scotland” have the same meanings as in the
5
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 2006
(c. 32).
10
Part 5
General
74
General interpretation
In this Act—
“Minister of the Crown” has the same meaning as in the Ministers of the
15
Crown Act 1975 (c. 26);
“regulatory function” has the same meaning as in the Legislative and
Regulatory Reform Act 2006 (c. 51);
“Welsh ministerial matter” means a matter in Wales (within the meaning
of the Government of Wales Act 2006) in respect of which the Welsh
20
Ministers exercise functions.
75
Extent
This Act extends to England and Wales, Scotland and Northern Ireland.
76
Commencement
(1)
Parts 1 to 4 come into force in accordance with provision made by order made
25
by statutory instrument by the Secretary of State.
(2)
This Part comes into force on the day on which this Act is passed.
77
Short title
(1)
This Act may be cited as the Regulatory Enforcement and Sanctions Act 2008.
(2)
Nothing in this Act shall impose any charge on the people or on public
30
funds, or vary the amount or incidence of or otherwise alter any such charge
in any manner, or affect the assessment, levying, administration or
application of any money raised by any such charge.

Regulatory Enforcement and Sanctions Bill [HL]
Schedule 1 — LBRO: supplementary
38

Schedules
Schedule 1
Section 1

LBRO: supplementary
Status
1     (1)
LBRO is not to be regarded as a servant or agent of the Crown or as enjoying
5
any status, immunity or privilege of the Crown.
      (2)
The property of LBRO is not to be regarded as the property of, or property
held on behalf of, the Crown.
Membership
2
LBRO is to consist of ordinary and ex officio members.
10
3     (1)
There are to be at least five and no more than ten ordinary members.
      (2)
One of the ordinary members is to be the chair of LBRO.
      (3)
The chair and other ordinary members are to be appointed by the Secretary
of State after consulting the Welsh Ministers.
      (4)
The Secretary of State must consult the chair before appointing the other
15
ordinary members.
      (5)
LBRO is to pay to or in respect of the ordinary members such sums as the
Secretary of State may determine by way of or in respect of remuneration,
allowances, expenses, pensions or gratuities.
      (6)
If the Secretary of State thinks that there are special circumstances that make
20
it right for a person ceasing to be an ordinary member of LBRO to receive
compensation, LBRO must pay to that person such compensation as the
Secretary of State may determine.
4     (1)
The ex officio members are to be—
(a)
the Chief Executive of LBRO (see paragraph 7), and
25
(b)
such other employees of LBRO as may for the time being be
appointed by the chair after consulting the Chief Executive.
      (2)
The number of ex officio members appointed under sub-paragraph (1)(b)
may not at any time exceed—
(a)
such number as may for the time being be specified by the Secretary
30
of State, or
(b)
half the number of ordinary members.
5
Service as a member of LBRO is not service in the civil service of the State.

Regulatory Enforcement and Sanctions Bill [HL]
Schedule 1 — LBRO: supplementary
39

Tenure
6     (1)
Subject to the other provisions of this Schedule, a person holds and vacates
office as a member of LBRO in accordance with the terms and conditions of
his or her appointment.
      (2)
A person may not be appointed as an ordinary member of LBRO for a term
5
of more than five years.
      (3)
A person may at any time resign as an ordinary member of LBRO by giving
notice in writing to the Secretary of State.
      (4)
The Secretary of State may remove a person as an ordinary member of LBRO
at any time if —
10
(a)
the ordinary member has, at any time, been convicted of a criminal
offence, or
(b)
in the opinion of the Secretary of State—
(i)
the ordinary member has failed to comply with the terms of
his or her appointment, or
15
(ii)
the ordinary member is otherwise unable, unfit or unwilling
to perform his or her functions.
      (5)
A person who has ceased to be an ordinary member is eligible for
reappointment for a further term or terms but the total period of
appointment of an ordinary member (whether or not in consecutive terms)
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may not exceed ten years.
Employees
7     (1)
LBRO is to have a Chief Executive.
      (2)
The Chief Executive is to be an employee of LBRO.
      (3)
The first Chief Executive is to be appointed by the Secretary of State.
25
      (4)
A Chief Executive after the first is to be appointed by LBRO with the
approval of the Secretary of State.
      (5)
LBRO may appoint other employees, subject to the approval of the Secretary
of State as to numbers and terms and conditions of employment.
      (6)
Service as an employee of LBRO is not service in the civil service of the State.
30
      (7)
LBRO may pay to or in respect of an employee sums by way of or in respect
of remuneration, allowances, expenses, pensions, gratuities or
compensation for loss of employment, subject to any conditions imposed by
the Secretary of State under sub-paragraph (5).
      (8)
The Chief Executive may not take part in the determination of the amount of
35
any remuneration, allowance, pension, gratuity or compensation payable to
him or her.
Committees
8     (1)
LBRO may establish one or more committees.
      (2)
A committee established under this paragraph may include persons who are
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neither members nor employees of LBRO.

Regulatory Enforcement and Sanctions Bill [HL]
Schedule 1 — LBRO: supplementary
40

      (3)
A committee established under this paragraph may establish one or more
sub-committees.
      (4)
LBRO may pay sums by way of or in respect of expenses to or in respect of
a person who is a member of a committee or a sub-committee established
under this paragraph but who is not a member or employee of LBRO.
5
Proceedings
9     (1)
Subject to this Schedule, LBRO may regulate—
(a)
its own proceedings (including quorum), and
(b)
the proceedings (including quorum) of any of its committees.
      (2)
A committee of LBRO may regulate the proceedings (including quorum) of
10
any of its sub-committees.
      (3)
The validity of proceedings of LBRO, or of any of its committees or sub-
committees, is not affected by—
(a)
a vacancy, or
(b)
a defective appointment.
15
Delegation
10
LBRO may delegate any of its functions to any of its members, employees,
committees or sub-committees.
Funding
11    (1)
The Secretary of State may make grants to LBRO of such amounts as the
20
Secretary of State thinks fit.
      (2)
A grant under sub-paragraph (1) may be subject to such conditions as the
Secretary of State thinks fit.
      (3)
The Welsh Ministers may make grants to LBRO of such amounts as they
think fit.
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      (4)
A grant under sub-paragraph (3) may be subject to such conditions as the
Welsh Ministers think fit.
Annual report
12    (1)
LBRO must, as soon as practicable after the end of each financial year,
produce a report on the discharge of its functions during that year.
30
      (2)
LBRO must send a copy of the report to—
(a)
the Secretary of State, and
(b)
the Welsh Ministers.
      (3)
The report must be sent under sub-paragraph (2)(a) within such period
beginning with the end of the financial year to which the report relates as the
35
Secretary of State may direct.
      (4)
The report must be sent under sub-paragraph (2)(b) within such period
beginning with the end of the financial year to which the report relates as the
Welsh Ministers may direct.

Regulatory Enforcement and Sanctions Bill [HL]
Schedule 1 — LBRO: supplementary
41

      (5)
The Secretary of State must lay before Parliament a copy of each report
received under sub-paragraph (2)(a).
      (6)
The Welsh Ministers must lay before the National Assembly for Wales a
copy of each report received under sub-paragraph (2)(b).
Accounts
5
13    (1)
LBRO must keep proper accounts and proper records in relation to the
accounts.
      (2)
LBRO must prepare a statement of accounts for each financial year.
      (3)
The statement of accounts must comply with any directions given by the
Secretary of State with the consent of the Treasury as to—
10
(a)
the information to be contained in the statement;
(b)
the form which the statement is to take;
(c)
the manner in which the information is to be presented;
(d)
the methods and principles according to which the statement is to be
prepared.
15
      (4)
LBRO must send copies of the statement of accounts to the Secretary of State
and the Comptroller and Auditor General within such period as the
Secretary of State directs.
      (5)
The Comptroller and Auditor General must—
(a)
examine, certify and report on the statement of accounts received
20
under sub-paragraph (4), and
(b)
send a copy of the certified statement and report to the Secretary of
State as soon as possible.
      (6)
The Secretary of State must lay before Parliament a copy of each certified
statement and report received under sub-paragraph (5)(b).
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      (7)
LBRO must send a copy of the statement of accounts to the Auditor General
for Wales within such period as the Welsh Ministers direct.
Financial year
14    (1)
The financial year of LBRO is the period of twelve months ending on 31
March.
30
      (2)
But the first financial year of LBRO is the period—
(a)
starting on the day on which section 1 comes into force, and
(b)
ending on the following 31 March.
Instruments and authentication
15    (1)
The fixing of the seal of LBRO shall be authenticated by the signature of the
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chair or of another person authorised by LBRO to act for that purpose.
      (2)
A document purporting to be duly executed under the seal of LBRO, or to be
signed on LBRO’s behalf, shall be received in evidence and, unless the
contrary is proved, shall be treated as having been so executed or signed.

Regulatory Enforcement and Sanctions Bill [HL]
Schedule 1 — LBRO: supplementary
42

Records
16
In the Public Records Act 1958 (c. 51), in Schedule 1 (definition of public
records), in Part 2 of the Table at the end of paragraph 3, at the appropriate
place insert—

“Local Better Regulation Office.”
5
Parliamentary disqualification
17
In the House of Commons Disqualification Act 1975 (c. 24), in Schedule 1, in
Part 2 (bodies of which all members are disqualified), at the appropriate
place insert—

“The Local Better Regulation Office.”
10
Investigation
18
In the Parliamentary Commissioner Act 1967 (c. 13), in Schedule 2
(departments etc. subject to investigation), at the appropriate place insert—

“Local Better Regulation Office.”
Freedom of information
15
19
In the Freedom of Information Act 2000 (c. 36), in Schedule 1, in Part 6 (other
public bodies and offices: general), at the appropriate place insert—

“The Local Better Regulation Office.”
Transitional provisions
20    (1)
A person who immediately before the day on which section 1 comes into
20
force is the chair of the LBRO company is to be treated—
(a)
as having been appointed as the chair of LBRO under paragraph 3(3),
and
(b)
as having been so appointed on the day on which, and for the term
for which, that person was appointed as the chair of the LBRO
25
company.
      (2)
A person who immediately before the day on which section 1 comes into
force is a director of the LBRO company is to be treated—
(a)
as having been appointed as an ordinary member of LBRO under
paragraph 3(3), and
30
(b)
as having been so appointed on the day on which, and for the term
for which, that person was appointed as a director of the LBRO
company.
      (3)
A person who is the Chief Executive of the LBRO company immediately
before the day on which section 1 comes into force is to be treated as
35
appointed as the first Chief Executive of LBRO under paragraph 7(3).
      (4)
A committee or sub-committee of the LBRO company which was in
existence immediately before the day on which section 1 comes into force is
to be treated as having been established as a committee or sub-committee of
LBRO under paragraph 8(1) or (3).
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