Part 1 Meaning of “charity” and “charitable purpose” CHAPTER 1 General Charity 1Meaning of “charity” (1)For the purposes of the law of England and Wales, “charity” means an institution which— (a)is established for charitable purposes only, and (b)falls to be subject to the control of the High Court in the exercise of its jurisdiction with respect to charities. (2)The definition of “charity” in subsection (1) does not apply for the purposes of an enactment if a different definition of that term applies for those purposes by virtue of that or any other enactment. Charitable purpose 2Meaning of “charitable purpose” (1)For the purposes of the law of England and Wales, a charitable purpose is a purpose which— (a)falls within section 3(1), and (b)is for the public benefit (see section 4). (2)Any reference in any enactment or document (in whatever terms)— (a)to charitable purposes, or (b)to institutions having purposes that are charitable under the law relating to charities in England and Wales,is to be read in accordance with subsection (1). (3)Subsection (2) does not apply where the context otherwise requires. (4)This section is subject to section 11 (which makes special provision for Chapter 2 of this Part onwards). 3Descriptions of purposes (1)A purpose falls within this subsection if it falls within any of the following descriptions of purposes— (a)the prevention or relief of poverty; (b)the advancement of education; (c)the advancement of religion; (d)the advancement of health or the saving of lives; (e)the advancement of citizenship or community development; (f)the advancement of the arts, culture, heritage or science; (g)the advancement of amateur sport; (h)the advancement of human rights, conflict resolution or reconciliation or the promotion of religious or racial harmony or equality and diversity; (i)the advancement of environmental protection or improvement; (j)the relief of those in need because of youth, age, ill-health, disability, financial hardship or other disadvantage; (k)the advancement of animal welfare; (l)the promotion of the efficiency of the armed forces of the Crown or of the efficiency of the police, fire and rescue services or ambulance services; (m)any other purposes— (i)that are not within paragraphs (a) to (l) but are recognised as charitable purposes by virtue of section 5 (recreational and similar trusts, etc.) or under the old law, (ii)that may reasonably be regarded as analogous to, or within the spirit of, any purposes falling within any of paragraphs (a) to (l) or sub-paragraph (i), or (iii)that may reasonably be regarded as analogous to, or within the spirit of, any purposes which have been recognised, under the law relating to charities in England and Wales, as falling within sub-paragraph (ii) or this sub-paragraph. (2)In subsection (1)— (a)in paragraph (c), “religion” includes— (i)a religion which involves belief in more than one god, and (ii)a religion which does not involve belief in a god, (b)in paragraph (d), “the advancement of health” includes the prevention or relief of sickness, disease or human suffering, (c)paragraph (e) includes— (i)rural or urban regeneration, and (ii)the promotion of civic responsibility, volunteering, the voluntary sector or the effectiveness or efficiency of charities, (d)in paragraph (g), “sport” means sports or games which promote health by involving physical or mental skill or exertion, (e)paragraph (j) includes relief given by the provision of accommodation or care to the persons mentioned in that paragraph, and (f)in paragraph (l), “fire and rescue services” means services provided by fire and rescue authorities under Part 2 of the Fire and Rescue Services Act 2004. (3)Where any of the terms used in any of paragraphs (a) to (l) of subsection (1), or in subsection (2), has a particular meaning under the law relating to charities in England and Wales, the term is to be taken as having the same meaning where it appears in that provision. (4)In subsection (1)(m)(i), “the old law” means the law relating to charities in England and Wales as in force immediately before 1 April 2008. 4The public benefit requirement (1)In this Act “the public benefit requirement” means the requirement in section 2(1)(b) that a purpose falling within section 3(1) must be for the public benefit if it is to be a charitable purpose. (2)In determining whether the public benefit requirement is satisfied in relation to any purpose falling within section 3(1), it is not to be presumed that a purpose of a particular description is for the public benefit. (3)In this Chapter any reference to the public benefit is a reference to the public benefit as that term is understood for the purposes of the law relating to charities in England and Wales. (4)Subsection (3) is subject to subsection (2). Recreational trusts and registered sports clubs 5Recreational and similar trusts, etc. (1)It is charitable (and is to be treated as always having been charitable) to provide, or assist in the provision of, facilities for— (a)recreation, or (b)other leisure-time occupation,if the facilities are provided in the interests of social welfare. (2)The requirement that the facilities are provided in the interests of social welfare cannot be satisfied if the basic conditions are not met. (3)The basic conditions are— (a)that the facilities are provided with the object of improving the conditions of life for the persons for whom the facilities are primarily intended, and (b)that— (i)those persons have need of the facilities because of their youth, age, infirmity or disability, poverty, or social and economic circumstances, or (ii)the facilities are to be available to members of the public at large or to male, or to female, members of the public at large. (4)Subsection (1) applies in particular to— (a)the provision of facilities at village halls, community centres and women’s institutes, and (b)the provision and maintenance of grounds and buildings to be used for purposes of recreation or leisure-time occupation,and extends to the provision of facilities for those purposes by the organising of any activity. But this is subject to the requirement that the facilities are provided in the interests of social welfare. (5)Nothing in this section is to be treated as derogating from the public benefit requirement. 6Registered sports clubs (1)A registered sports club established for charitable purposes is to be treated as not being so established, and accordingly cannot be a charity. (2)In subsection (1), “registered sports club” means a registered club within the meaning of Chapter 9 of Part 13 of the Corporation Tax Act 2010 (community amateur sports clubs). Supplementary 7Application of this Chapter in relation to Scotland (1)This Chapter affects the law of Scotland only in so far as it affects the construction of references to— (a)charities, or (b)charitable purposes,in enactments which relate to matters falling within Section A1 of Part 2 of Schedule 5 to the Scotland Act 1998 (reserved matters: fiscal policy etc.). (2)In so far as this Chapter affects the law of Scotland— (a)references in sections 1(1) and 2(1) to the law of England and Wales are to be read as references to the law of Scotland, and (b)the reference in section 1(1) to the High Court is to be read as a reference to the Court of Session. 8Application of this Chapter in relation to Northern Ireland (1)This Chapter affects the law of Northern Ireland only in so far as it affects the construction of references to— (a)charities, or (b)charitable purposes,in enactments which relate to matters falling within paragraph 9 of Schedule 2 to the Northern Ireland Act 1998 (excepted matters: taxes and duties). (2)In so far as this Chapter affects the law of Northern Ireland— (a)references in sections 1(1) and 2(1) to the law of England and Wales are to be read as references to the law of Northern Ireland, and (b)the reference in section 1(1) to the High Court is to be read as a reference to the High Court in Northern Ireland. 9Interpretation (1)In this Chapter “enactment” includes— (a)any provision of subordinate legislation (within the meaning of the Interpretation Act 1978), and (b)a provision of a Measure of the Church Assembly or of the General Synod of the Church of England,and references to enactments include enactments whenever passed or made. (2)In section 2(2) the reference to a document includes a document whenever made. (3)In this Act “institution” means an institution whether incorporated or not, and includes a trust or undertaking. (4)Subsections (1) to (3) apply except where the context otherwise requires. CHAPTER 2 Special provision for this Act 10Ecclesiastical corporations etc. not charities in certain contexts (1)In the rest of this Act, “charity”, except in so far as the context otherwise requires, has the meaning given by section 1(1). (2)But in the rest of this Act (apart from Chapter 3 of Part 17) “charity” is not applicable to— (a)any ecclesiastical corporation in respect of the corporate property of the corporation, except a corporation aggregate having some purposes which are not ecclesiastical in respect of its corporate property held for those purposes, (b)any Diocesan Board of Finance, or any subsidiary of such a Board, in respect of the diocesan glebe land of the diocese, or (c)any trust of property for purposes for which the property has been consecrated. (3)“Ecclesiastical corporation” means any corporation in the Church of England, whether sole or aggregate, which is established for spiritual purposes. (4)“Diocesan Board of Finance”, “subsidiary” and “diocesan glebe land” have the same meaning as in the Endowments and Glebe Measure 1976. 11Charitable purposes In the rest of this Act, “charitable purposes” means, except in so far as the context otherwise requires, purposes which are exclusively charitable purposes (as defined by section 2(1)). 12Directions as to what is (or is not) a separate charity (1)The Commission (see section 13) may direct that for all or any of the purposes of this Act an institution established for any special purposes of or in connection with a charity (being charitable purposes) is to be treated— (a)as forming part of that charity, or (b)as forming a distinct charity. (2)The Commission may direct that for all or any of the purposes of this Act two or more charities having the same charity trustees are to be treated as a single charity. Part 2 The Charity Commission and the Official Custodian for Charities The Commission 13The Charity Commission (1)There continues to be a body corporate known as the Charity Commission for England and Wales (in this Act referred to as “the Commission”). (2)In Welsh the Commission is known as “Comisiwn Elusennau Cymru a Lloegr”. (3)The functions of the Commission are performed on behalf of the Crown. (4)In the exercise of its functions the Commission is not subject to the direction or control of any Minister of the Crown or of another government department. (5)But subsection (4) does not affect— (a)any provision made by or under any enactment; (b)any administrative controls exercised over the Commission’s expenditure by the Treasury. (6)Schedule 1 contains provisions relating to the Commission. 14The Commission’s objectives The Commission has the following objectives— 1.The public confidence objective The public confidence objective is to increase public trust and confidence in charities. 2.The public benefit objective The public benefit objective is to promote awareness and understanding of the operation of the public benefit requirement. 3.The compliance objective The compliance objective is to promote compliance by charity trustees with their legal obligations in exercising control and management of the administration of their charities. 4.The charitable resources objective The charitable resources objective is to promote the effective use of charitable resources. 5.The accountability objective The accountability objective is to enhance the accountability of charities to donors, beneficiaries and the general public. 15The Commission’s general functions (1)The Commission has the following general functions— 1.Determining whether institutions are or are not charities. 2.Encouraging and facilitating the better administration of charities. 3.Identifying and investigating apparent misconduct or mismanagement in the administration of charities and taking remedial or protective action in connection with misconduct or mismanagement in the administration of charities. 4.Determining whether public collections certificates should be issued, and remain in force, in respect of public charitable collections. 5.Obtaining, evaluating and disseminating information in connection with the performance of any of the Commission’s functions or meeting any of its objectives. 6.Giving information or advice, or making proposals, to any Minister of the Crown on matters relating to any of the Commission’s functions or meeting any of its objectives. (2)The Commission may, in connection with its second general function, give such advice or guidance with respect to the administration of charities as it considers appropriate. (3)Any advice or guidance so given may relate to— (a)charities generally, (b)any class of charities, or (c)any particular charity,and may take such form, and be given in such manner, as the Commission considers appropriate. (4)The Commission’s fifth general function includes (among other things) the maintenance of an accurate and up-to-date register of charities under sections 29 (the register) and 34 (removal of charities from register). (5)The Commission’s sixth general function includes (among other things) complying, so far as is reasonably practicable, with any request made by a Minister of the Crown for information or advice on any matter relating to any of its functions. (6)In this section “public charitable collection” and “public collections certificate” have the same meaning as in Chapter 1 of Part 3 of the Charities Act 2006. 16The Commission’s general duties The Commission has the following general duties— 1.So far as is reasonably practicable the Commission must, in performing its functions, act in a way— (a)which is compatible with its objectives, and (b)which it considers most appropriate for the purpose of meeting those objectives. 2.So far as is reasonably practicable the Commission must, in performing its functions, act in a way which is compatible with the encouragement of— (a)all forms of charitable giving, and (b)voluntary participation in charity work. 3.In performing its functions the Commission must have regard to the need to use its resources in the most efficient, effective and economic way. 4.In performing its functions the Commission must, so far as relevant, have regard to the principles of best regulatory practice (including the principles under which regulatory activities should be proportionate, accountable, consistent, transparent and targeted only at cases in which action is needed). 5.In performing its functions the Commission must, in appropriate cases, have regard to the desirability of facilitating innovation by or on behalf of charities. 6.In managing its affairs the Commission must have regard to such generally accepted principles of good corporate governance as it is reasonable to regard as applicable to it. 17Guidance as to operation of public benefit requirement (1)The Commission must issue guidance in pursuance of its public benefit objective (see paragraph 2 of section 14). (2)The Commission may from time to time revise any guidance issued under this section. (3)The Commission must carry out such public and other consultation as it considers appropriate— (a)before issuing any guidance under this section, or (b)(unless it considers that it is unnecessary to do so) before revising any guidance under this section. (4)The Commission must publish any guidance issued or revised under this section in such manner as it considers appropriate. (5)The charity trustees of a charity must have regard to any such guidance when exercising any powers or duties to which the guidance is relevant. 18Supply by Commission of copies of documents The Commission must, at the request of any person, provide that person with copies of, or extracts from, any document in the Commission’s possession which is for the time being open to or available for inspection under any provision of this Act. 19Fees and other amounts payable to Commission (1)The Minister may by regulations require the payment to the Commission of such fees as may be prescribed by the regulations in respect of— (a)the discharge by the Commission of such functions under the enactments relating to charities as may be so prescribed; (b)the inspection of the register of charities or of other material kept by the Commission under those enactments, or the provision of copies of or extracts from documents so kept. (2)Regulations under this section may— (a)confer, or provide for the conferring of, exemptions from liability to pay a prescribed fee; (b)provide for the remission or refunding of a prescribed fee (in whole or in part) in circumstances prescribed by the regulations. (3)The Commission may impose charges of such amounts as it considers reasonable in respect of the supply of any publications produced by it. (4)Any fees and other payments received by the Commission by virtue of this section are to be paid into the Consolidated Fund. 20Incidental powers (1)The Commission may do anything which is calculated to facilitate, or is conducive or incidental to, the performance of any of its functions or general duties. (2)But nothing in this Act authorises the Commission— (a)to exercise functions corresponding to those of a charity trustee in relation to a charity, or (b)otherwise to be directly involved in the administration of a charity. (3)Subsection (2) does not affect the operation of section 84 or 85 (power of Commission to direct specified action to be taken or to direct application of charity property). The official custodian 21The official custodian for charities (1)There continues to be an officer known as the official custodian for charities (in this Act referred to as “the official custodian”). (2)The official custodian’s function is to act as trustee for charities in the cases provided for by this Act. (3)The official custodian is such individual as the Commission may from time to time designate. (4)The official custodian’s duties must be performed in accordance with such general or special directions as may be given by the Commission. (5)Schedule 2 contains provisions relating to the official custodian. Part 3 Exempt charities and the principal regulator Exempt charities 22Meaning of “exempt charity” and Sch.3 (1)In this Act “exempt charity” means any institution, so far as it is a charity, that is within Schedule 3. (2)Subsection (1) is subject to any other enactment by virtue of which a charity is an exempt charity. 23Power to amend Sch.3 so as to add or remove exempt charities (1)The Minister may by order make such amendments of Schedule 3 as the Minister considers appropriate for securing— (a)that (so far as they are charities) institutions of a particular description become or (as the case may be) cease to be exempt charities, or (b)that (so far as it is a charity) a particular institution becomes or (as the case may be) ceases to be an exempt charity. (2)An order under subsection (1) may be made only if the Minister is satisfied that the order is desirable in the interests of ensuring appropriate or effective regulation of the charities or charity concerned in connection with compliance by the charity trustees of the charities or charity with their legal obligations in exercising control and management of the administration of the charities or charity. (3)The Minister may by order make such amendments or other modifications of any enactment as the Minister considers appropriate in connection with— (a)charities of a particular description becoming, or ceasing to be, exempt charities, or (b)a particular charity becoming, or ceasing to be, an exempt charity,as a result of provision made under subsection (1). (4)In subsection (3), “enactment” includes— (a)any provision of subordinate legislation (within the meaning of the Interpretation Act 1978), and (b)a provision of a Measure of the Church Assembly or of the General Synod of the Church of England,and references to enactments include enactments whenever passed or made. 24Power to remove defunct institutions from Sch.3 The Minister may by order make such amendments of Schedule 3 as the Minister considers appropriate for removing from that Schedule an institution that has ceased to exist. The principal regulator 25Meaning of “the principal regulator” In this Act “the principal regulator”, in relation to an exempt charity, means such body or Minister of the Crown as is prescribed as its principal regulator by regulations made by the Minister. 26General duty of principal regulator in relation to exempt charity (1)This section applies to any body or Minister of the Crown who is the principal regulator in relation to an exempt charity. (2)The body or Minister must do all that the body or Minister reasonably can to meet the compliance objective in relation to the charity. (3)The compliance objective is to promote compliance by the charity trustees with their legal obligations in exercising control and management of the administration of the charity. 27Power to make amendments in connection with s.26 (1)Regulations under section 25 may make such amendments or other modifications of any enactment as the Minister considers appropriate for the purpose of facilitating, or otherwise in connection with, the discharge by a principal regulator of the duty under section 26(2). (2)In subsection (1), “enactment” includes— (a)any provision of subordinate legislation (within the meaning of the Interpretation Act 1978), and (b)a provision of a Measure of the Church Assembly or of the General Synod of the Church of England,and references to enactments include enactments whenever passed or made. 28Commission to consult principal regulator Before exercising in relation to an exempt charity any specific power exercisable by it in relation to the charity, the Commission must consult the charity’s principal regulator. Part 4 Registration and names of charities The register 29The register (1)There continues to be a register of charities, to be kept by the Commission in such manner as it thinks fit. (2)The register must contain— (a)the name of every charity registered in accordance with section 30, and (b)such other particulars of, and such other information relating to, every such charity as the Commission thinks fit. (3)In this Act, except in so far as the context otherwise requires, “the register” means the register of charities kept under this section and “registered” is to be read accordingly. Charities required to be registered 30Charities required to be registered: general (1)Every charity must be registered in the register unless subsection (2) applies to it. (2)The following are not required to be registered— (a)an exempt charity (see section 22 and Schedule 3), (b)a charity which for the time being— (i)is permanently or temporarily excepted by order of the Commission, and (ii)complies with any conditions of the exception,and whose gross income does not exceed £100,000, (c)a charity which for the time being— (i)is, or is of a description, permanently or temporarily excepted by regulations made by the Minister, and (ii)complies with any conditions of the exception,and whose gross income does not exceed £100,000, and (d)a charity whose gross income does not exceed £5,000. (3)A charity within— (a)subsection (2)(b) or (c), or (b)subsection (2)(d),must, if it so requests, be registered in the register. (4)In this section any reference to a charity’s gross income is to be read, in relation to a particular time— (a)as a reference to the charity’s gross income in its financial year immediately preceding that time, or (b)if the Commission so determines, as a reference to the amount which the Commission estimates to be the likely amount of the charity’s gross income in such financial year of the charity as is specified in the determination. 31Restrictions on extending the range of excepted charities etc. (1)No order may be made under section 30(2)(b) so as to except any charity that was not excepted immediately before 31 January 2009. (2)Subject to subsection (3), no regulations may be made under section 30(2)(c) so as to except any charity or description of charities that was not excepted immediately before 31 January 2009. (3)Such regulations must be made under section 30(2)(c) as are necessary to secure that any institution ceasing to be an exempt charity by virtue of an order made under section 23 is excepted under section 30(2)(c) (subject to compliance with any conditions of the exception and the financial limit mentioned in section 30(2)(c)). (4)Subsection (1) does not prevent an order which— (a)was in force immediately before 31 January 2009, and (b)has effect (by virtue of paragraph 4 of Schedule 8) as if made under section 30(2)(b),from being varied or revoked. (5)Subsection (2) does not prevent regulations which— (a)were in force immediately before 31 January 2009, and (b)have effect (by virtue of paragraph 4 of Schedule 8) as if made under section 30(2)(c),from being varied or revoked. 32Power to alter sums specified in s.30(2) (1)The Minister may by order amend— (a)section 30(2)(b) and (c), or (b)section 30(2)(d),by substituting a different sum for the sum for the time being specified there. (2)The Minister may only make an order under subsection (1)— (a)so far as it amends section 30(2)(b) and (c), if the Minister considers it expedient to do so with a view to reducing the scope of the exceptions provided by section 30(2)(b) and (c); (b)so far as it amends section 30(2)(d), if the Minister considers it expedient to do so— (i)in consequence of changes in the value of money, or (ii)with a view to extending the scope of the exception provided by section 30(2)(d). (3)No order may be made by the Minister under subsection (1)(a) unless a copy of a report under section 73 of the Charities Act 2006 has been laid before Parliament in accordance with that section. 33Power to repeal provisions relating to excepted charities The following provisions— (a)section 30(2)(b) and (c) and (3)(a), (b)section 31, (c)section 32(1)(a), (2)(a) and (3), and (d)this section,cease to have effect on such day as the Minister may by order appoint for the purposes of this section. Removal of charities from register 34Removal of charities from register (1)The Commission must remove from the register— (a)any institution which it no longer considers is a charity, and (b)any charity which has ceased to exist or does not operate. (2)If the removal of an institution under subsection (1)(a) is due to any change in its trusts, the removal takes effect from the date of the change. (3)A charity which is for the time being registered under section 30(3) (voluntary registration) must be removed from the register if it so requests. Registration: duties of trustees and claims and objections 35Duties of trustees in connection with registration (1)If a charity required to be registered by virtue of section 30(1) is not registered, the charity trustees must— (a)apply to the Commission for the charity to be registered, and (b)supply the Commission with the required documents and information. (2)The required documents and information are— (a)copies of the charity’s trusts or (if they are not set out in any extant document) particulars of them, (b)such other documents or information as may be prescribed by regulations made by the Minister, and (c)such other documents or information as the Commission may require for the purposes of the application. (3)If an institution is for the time being registered, the charity trustees (or the last charity trustees) must— (a)notify the Commission if the institution ceases to exist, or if there is any change in its trusts or in the particulars of it entered in the register, and (b)so far as appropriate, supply the Commission with particulars of any such change and copies of any new trusts or alterations of the trusts. (4)Nothing in subsection (3) requires a person— (a)to supply the Commission with copies of schemes for the administration of a charity made otherwise than by the court, (b)to notify the Commission of any change made with respect to a registered charity by such a scheme, or (c)if the person refers the Commission to a document or copy already in the Commission’s possession, to supply a further copy of the document. 36Claims and objections to registration (1)A person who is or may be affected by the registration of an institution as a charity may, on the ground that it is not a charity— (a)object to its being entered by the Commission in the register, or (b)apply to the Commission for it to be removed from the register. (2)Provision may be made by regulations made by the Minister as to the manner in which any such objection or application is to be made, prosecuted or dealt with. (3)Subsection (4) applies if there is an appeal to the Tribunal against any decision of the Commission— (a)to enter an institution in the register, or (b)not to remove an institution from the register. (4)Until the Commission is satisfied whether the decision of the Commission is or is not to stand, the entry in the register— (a)is to be maintained, but (b)is in suspense and must be marked to indicate that it is in suspense. (5)Any question affecting the registration or removal from the register of an institution— (a)may be considered afresh by the Commission, even though it has been determined by a decision on appeal under Chapter 2 of Part 17 (appeals and applications to Tribunal), and (b)is not concluded by that decision, if it appears to the Commission that— (i)there has been a change of circumstances, or (ii)the decision is inconsistent with a later judicial decision. Effect of registration and right to inspect register 37Effect of registration (1)An institution is, for all purposes other than rectification of the register, conclusively presumed to be or to have been a charity at any time when it is or was on the register. (2)For the purposes of subsection (1) an institution is to be treated as not being on the register during any period when the entry relating to it is in suspense under section 36(4). 38Right to inspect register (1)The register (including the entries cancelled when institutions are removed from the register) must be open to public inspection at all reasonable times. (2)If any information contained in the register is not in documentary form, subsection (1) is to be read as requiring the information to be available for public inspection in legible form at all reasonable times. (3)If the Commission so determines, subsection (1) does not apply to any particular information contained in the register that is specified in the determination. (4)Copies (or particulars) of the trusts of any registered charity as supplied to the Commission under section 35 (duties of trustees in connection with registration) must, so long as the charity remains on the register— (a)be kept by the Commission, and (b)be open to public inspection at all reasonable times. (5)If a copy of a document relating to a registered charity— (a)is not required to be supplied to the Commission as the result of section 35(4), but (b)is in the Commission’s possession,a copy of the document must be open to inspection under subsection (4) as if supplied to the Commission under section 35. Disclosure of registered charity status 39Statement required to be made in official publications etc. (1)This section applies to a registered charity if its gross income in its last financial year exceeded £10,000. (2)If this section applies to a registered charity, the fact that it is a registered charity must be stated in legible characters— (a)in all notices, advertisements and other documents issued by or on behalf of the charity and soliciting money or other property for the benefit of the charity, (b)in all bills of exchange, promissory notes, endorsements, cheques and orders for money or goods purporting to be signed on behalf of the charity, and (c)in all bills rendered by it and in all its invoices, receipts and letters of credit. (3)The statement required by subsection (2) must be in English, except that, in the case of a document which is otherwise wholly in Welsh, the statement may be in Welsh if it consists of or includes “elusen cofrestredig” (the Welsh equivalent of “registered charity”). (4)Subsection (2)(a) has effect— (a)whether the solicitation is express or implied, and (b)whether or not the money or other property is to be given for any consideration. 40Power to alter sum specified in s.39(1) The Minister may by order amend section 39(1) by substituting a different sum for the sum for the time being specified there. 41Offences (1)It is an offence for a person, in the case of a registered charity to which section 39 applies, to issue or authorise the issue of any document falling within section 39(2)(a) or (c) which does not contain the statement required by section 39(2). (2)It is an offence for a person, in the case of a registered charity to which section 39 applies, to sign any document falling within section 39(2)(b) which does not contain the statement required by section 39(2). (3)A person guilty of an offence under subsection (1) or (2) is liable on summary conviction to a fine not exceeding level 3 on the standard scale. Power to require charity’s name to be changed 42Power to require name to be changed (1)If this subsection applies to a charity, the Commission may give a direction requiring the name of the charity to be changed, within such period as is specified in the direction, to such other name as the charity trustees may determine with the approval of the Commission. (2)Subsection (1) applies to a charity if— (a)it is a registered charity and its name (“the registered name”)— (i)is the same as, or (ii)is in the opinion of the Commission too like,the name, at the time when the registered name was entered in the register in respect of the charity, of any other charity (whether registered or not), (b)the name of the charity is in the opinion of the Commission likely to mislead the public as to the true nature of— (i)the purposes of the charity as set out in its trusts, or (ii)the activities which the charity carries on under its trusts in pursuit of those purposes, (c)the name of the charity includes any word or expression for the time being specified in regulations made by the Minister and the inclusion in its name of that word or expression is in the opinion of the Commission likely to mislead the public in any respect as to the status of the charity, (d)the name of the charity is in the opinion of the Commission likely to give the impression that the charity is connected in some way with Her Majesty’s Government or any local authority, or with any other body of persons or any individual, when it is not so connected, or (e)the name of the charity is in the opinion of the Commission offensive. (3)Any direction given by virtue of subsection (2)(a) must be given within 12 months of the time when the registered name was entered in the register in respect of the charity. (4)In subsection (2) any reference to the name of a charity is, in relation to a registered charity, a reference to the name by which it is registered. (5)Any direction given under this section with respect to a charity must be given to the charity trustees. 43Duty of charity trustees on receiving direction under s.42 (1)On receiving a direction under section 42 the charity trustees must give effect to it regardless of anything in the trusts of the charity. (2)If the name of any charity is changed by virtue of section 42, the charity trustees must without delay notify the Commission of— (a)the charity’s new name, and (b)the date on which the change occurred. (3)Subsection (2) does not affect section 35(3) (duty of charity trustees to notify changes in registered particulars). 44Change of name not to affect existing rights and obligations etc. A change of name by a charity by virtue of section 42 does not affect any rights or obligations of the charity; and any legal proceedings that might have been continued or commenced by or against it in its former name may be continued or commenced by or against it in its new name. 45Change of name where charity is a company (1)In relation to a charitable company, any reference in section 42 or 43 to the charity trustees of a charity is to be read as a reference to the directors of the company. (2)Subsections (3) to (5) apply if a direction is given under section 42 with respect to a charitable company. (3)The direction is to be treated as requiring the name of the company to be changed by resolution of the directors of the company. (4)Where a resolution of the directors is passed in accordance with subsection (3), the company must give notice of the change to the registrar of companies. (5)Where the name of the company is changed in compliance with the direction, the registrar of companies must— (a)if satisfied that the new name complies with the requirements of Part 5 of the Companies Act 2006, enter the new name on the register of companies in place of the former name, and (b)issue a certificate of incorporation altered to meet the circumstances of the case;and the change of name has effect from the date on which the altered certificate is issued. Part 5 Information powers Inquiries instituted by Commission 46General power to institute inquiries (1)The Commission may from time to time institute inquiries with regard to charities or a particular charity or class of charities, either generally or for particular purposes. (2)But no such inquiry is to extend to any exempt charity except where this has been requested by its principal regulator. (3)The Commission may— (a)conduct such an inquiry itself, or (b)appoint a person to conduct it and make a report to the Commission. (4)This section and sections 47 to 49 (obtaining evidence and search warrants) have effect in relation to a body entered in the Scottish Charity Register which is managed or controlled wholly or mainly in or from England or Wales as they have effect in relation to a charity. 47Obtaining evidence etc. for purposes of inquiry (1)In this section “inquiry” means an inquiry under section 46. (2)For the purposes of an inquiry, the Commission, or a person appointed by the Commission to conduct it, may direct any person— (a)if a matter in question at the inquiry is one on which the person has or can reasonably obtain information— (i)to provide accounts and statements in writing with respect to the matter, or to return answers in writing to any questions or inquiries addressed to the person on the matter, and (ii)to verify any such accounts, statements or answers by statutory declaration; (b)to provide copies of documents which are in the custody or under the control of the person and which relate to any matter in question at the inquiry, and to verify any such copies by statutory declaration; (c)to attend at a specified time and place and give evidence or produce any such documents.But this is subject to the provisions of this section. (3)For the purposes of an inquiry— (a)evidence may be taken on oath, and the person conducting the inquiry may for that purpose administer oaths, or (b)the person conducting the inquiry may instead of administering an oath require the person examined to make and subscribe a declaration of the truth of the matters about which that person is examined. (4)The Commission may pay to any person attending to give evidence or produce documents for the purpose of an inquiry the necessary expenses of doing so. (5)A direction under subsection (2)(c) may not require a person to go more than 10 miles from the person’s place of residence unless those expenses are paid or tendered to the person. 48Power to obtain search warrant for purposes of inquiry (1)A justice of the peace may issue a warrant under this section if satisfied, on information given on oath by a member of the Commission’s staff, that there are reasonable grounds for believing that each of the conditions in subsection (2) is satisfied. (2)The conditions are— (a)that an inquiry has been instituted under section 46, (b)that there is on the premises to be specified in the warrant any document or information relevant to that inquiry which the Commission could require to be produced or provided under section 52(1), and (c)that, if the Commission were to make an order requiring the document or information to be so produced or provided— (i)the order would not be complied with, or (ii)the document or information would be removed, tampered with, concealed or destroyed. (3)A warrant under this section is a warrant authorising the member of the Commission’s staff who is named in it (“P”)— (a)to enter and search the premises specified in it; (b)to take such other persons with P as the Commission considers are needed to assist P in doing anything that P is authorised to do under the warrant; (c)to take possession of any documents which appear to fall within subsection (2)(b), or to take any other steps which appear to be necessary for preserving, or preventing interference with, any such documents; (d)to take possession of any computer disk or other electronic storage device which appears to contain information falling within subsection (2)(b), or information contained in a document so falling, or to take any other steps which appear to be necessary for preserving, or preventing interference with, any such information; (e)to take copies of, or extracts from, any documents or information falling within paragraph (c) or (d); (f)to require any person on the premises to provide an explanation of any such document or information or to state where any such documents or information may be found; (g)to require any such person to give P such assistance as P may reasonably require for the taking of copies or extracts as mentioned in paragraph (e). 49Execution of search warrant (1)Entry and search under a warrant under section 48 must be at a reasonable hour and within one month of the date of its issue. (2)The member of the Commission’s staff who is authorised under such a warrant (“P”) must, if required to do so, produce— (a)the warrant, and (b)documentary evidence that P is a member of the Commission’s staff,for inspection by the occupier of the premises or anyone acting on the occupier’s behalf. (3)P must make a written record of— (a)the date and time of P’s entry on the premises, (b)the number of persons (if any) who accompanied P on to the premises and the names of any such persons, (c)the period for which P (and any such persons) remained on the premises, (d)what P (and any such persons) did while on the premises, and (e)any document or device of which P took possession while there. (4)If required to do so, P must give a copy of the record to the occupier of the premises or someone acting on the occupier’s behalf. (5)Unless it is not reasonably practicable to do so, P must before leaving the premises comply with— (a)the requirements of subsection (3), and (b)any requirement made under subsection (4) before P leaves the premises. (6)Where possession of any document or device is taken under section 48— (a)the document may be retained for so long as the Commission considers that it is necessary to retain it (rather than a copy of it) for the purposes of the relevant inquiry under section 46, or (b)the device may be retained for so long as the Commission considers that it is necessary to retain it for the purposes of that inquiry,as the case may be. (7)Once it appears to the Commission that the retention of any document or device has ceased to be so necessary, it must arrange for the document or device to be returned as soon as is reasonably practicable— (a)to the person from whose possession it was taken, or (b)to any of the charity trustees of the charity to which it belonged or related.For the purposes of this subsection as it has effect by virtue of section 46(4), the reference in paragraph (b) to the charity trustees of the charity is to be read as a reference to the persons having the general control and management of the administration of the body entered in the Scottish Charity Register. (8)It is an offence for a person intentionally to obstruct the exercise of any rights conferred by a warrant under section 48. (9)A person guilty of an offence under subsection (8) is liable on summary conviction— (a)to imprisonment for a term not exceeding 51 weeks, or (b)to a fine not exceeding level 5 on the standard scale,or to both. 50Publication of results of inquiries (1)This section applies where an inquiry has been held under section 46. (2)The Commission may— (a)cause the report of the person conducting the inquiry, or such other statement of the results of the inquiry as the Commission thinks fit, to be printed and published, or (b)publish any such report or statement in some other way which is calculated in the Commission’s opinion to bring it to the attention of persons who may wish to make representations to the Commission about the action to be taken. 51Contributions by local authorities to inquiries into local charities (1)A council may contribute to the expenses of the Commission in connection with inquiries under section 46 into local charities in the council’s area. (2)In subsection (1) “council” means— (a)a district council; (b)a county council; (c)a county borough council; (d)a London borough council; (e)the Common Council of the City of London. Power to call for documents and search records 52Power to call for documents (1)The Commission may by order— (a)require any person to provide the Commission with any information which is in that person’s possession and which— (i)relates to any charity, and (ii)is relevant to the discharge of the functions of the Commission or of the official custodian; (b)require any person who has custody or control of any document which relates to any charity and is relevant to the discharge of the functions of the Commission or of the official custodian— (i)to provide the Commission with a copy of or extract from the document, or (ii)to transmit the document itself to the Commission for its inspection (unless the document forms part of the records or other documents of a court or of a public or local authority). (2)The Commission is entitled without payment to keep any copy or extract provided to it under subsection (1). (3)If a document transmitted to the Commission under subsection (1) for it to inspect— (a)relates only to one or more charities, and (b)is not held by any person entitled as trustee or otherwise to the custody of it,the Commission may keep it or may deliver it to the charity trustees or to any other person who may be so entitled. (4)This section has effect in relation to any body entered in the Scottish Charity Register which is managed or controlled wholly or mainly in or from England or Wales as it has effect in relation to a charity. 53Power to search records (1)Any member of the staff of the Commission, if so authorised by it, is entitled without payment to inspect and take copies of or extracts from the records or other documents of— (a)any court, or (b)any public registry or office of records,for any purpose connected with the discharge of the functions of the Commission or of the official custodian. (2)The reference in subsection (1) to a member of the staff of the Commission includes the official custodian even if not a member of the staff of the Commission. (3)The rights conferred by subsection (1), in relation to information recorded otherwise than in legible form, include the right to require the information to be made available in legible form— (a)for inspection, or (b)for a copy or extract to be made of or from it. Disclosure of information 54Disclosure to Commission: general (1)A relevant public authority may disclose information to the Commission if the disclosure is made for the purpose of enabling or assisting the Commission to discharge any of its functions. (2)Subsection (1) is subject to section 55. (3)In this section “relevant public authority” means— (a)any government department (including a Northern Ireland department), (b)any local authority, (c)any constable, and (d)any other body or person discharging functions of a public nature (including a body or person discharging regulatory functions in relation to any description of activities). 55Disclosure to Commission: Revenue and Customs information (1)Revenue and Customs information may be disclosed under section 54(1) only if it relates to an institution, undertaking or body falling within one (or more) of the following paragraphs— (a)a charity; (b)an institution which is established for charitable, benevolent or philanthropic purposes; (c)an institution by or in respect of which a claim for tax exemption has at any time been made; (d)a subsidiary undertaking of a charity; (e)a body entered in the Scottish Charity Register which is managed or controlled wholly or mainly in or from England or Wales. (2)In subsection (1)(d) “subsidiary undertaking of a charity” means an undertaking (as defined by section 1161(1) of the Companies Act 2006) in relation to which— (a)a charity is (or is to be treated as) a parent undertaking in accordance with the provisions of section 1162 of, and Schedule 7 to, the Companies Act 2006, or (b)two or more charities would, if they were a single charity, be (or be treated as) a parent undertaking in accordance with those provisions. (3)For the purposes of the references to a parent undertaking— (a)in subsection (2), and (b)in section 1162 of, and Schedule 7 to, the Companies Act 2006 as they apply for the purposes of subsection (2),“undertaking” includes a charity which is not an undertaking as defined by section 1161(1) of that Act. (4)In this section “Revenue and Customs information” means information held as mentioned in section 18(1) of the Commissioners for Revenue and Customs Act 2005. (5)For the purposes of subsection (1)(c), “claim for tax exemption” means— (a)a claim for exemption under section 505(1) of the Income and Corporation Taxes Act 1988, (b)a claim for exemption under Part 10 of the Income Tax Act 2007, or (c)a claim for exemption under Part 11 of the Corporation Tax Act 2010, if it is not— (i)a claim for exemption under section 475, 476 or 477 (reliefs for eligible bodies and scientific research organisations), or (ii)a claim made by virtue of section 490 or 491 (application of exemptions to eligible bodies and scientific research organisations). 56Disclosure by Commission: general (1)The Commission may disclose to any relevant public authority any information received by the Commission in connection with any of the Commission’s functions if— (a)the disclosure is made for the purpose of enabling or assisting the relevant public authority to discharge any of its functions, or (b)the information so disclosed is otherwise relevant to the discharge of any of the functions of the relevant public authority. (2)Subsection (1) is subject to subsection (3) and section 57(1) and (2). (3)In the case of information disclosed to the Commission under section 54(1), the Commission’s power to disclose the information under subsection (1) is exercisable subject to any express restriction subject to which the information was disclosed to the Commission. (4)In this section “relevant public authority” has the same meaning as in section 54, except that it also includes any body or person within section 54(3)(d) in a country or territory outside the United Kingdom. 57Disclosure by Commission: Revenue and Customs information (1)Section 56(3) does not apply in relation to Revenue and Customs information disclosed to the Commission under section 54(1). (2)But any such information may not be further disclosed (whether under section 56(1) or otherwise) except with the consent of the Commissioners for Her Majesty’s Revenue and Customs. (3)It is an offence for a responsible person to disclose information in contravention of subsection (2). (4)A person guilty of an offence under subsection (3) is liable— (a)on summary conviction, to imprisonment for a term not exceeding 12 months or to a fine not exceeding the statutory maximum, or both; (b)on conviction on indictment, to imprisonment for a term not exceeding 2 years or to a fine, or both. (5)It is a defence, where a responsible person is charged with an offence under subsection (3) of disclosing information, to prove that that person reasonably believed— (a)that the disclosure was lawful, or (b)that the information had already and lawfully been made available to the public. (6)In the application of this section to Northern Ireland, the reference to 12 months in subsection (4) is to be read as a reference to 6 months. (7)In this section “Revenue and Customs information” means information held as mentioned in section 18(1) of the Commissioners for Revenue and Customs Act 2005. (8)In this section “responsible person” means a person who is or was— (a)a member of the Commission, (b)a member of the staff of the Commission, (c)a person acting on behalf of— (i)the Commission, or (ii)a member of the staff of the Commission, or (d)a member of a committee established by the Commission. 58Disclosure to and by principal regulators of exempt charities (1)Sections 54 to 57 apply with the modifications in subsections (2) to (4) in relation to the disclosure of information to or by the principal regulator of an exempt charity. (2)References in those sections to the Commission or to any of its functions are to be read as references to the principal regulator of an exempt charity or to any of the functions of that body or person as principal regulator in relation to the charity. (3)Section 55 has effect as if for subsections (1) and (2) there were substituted— “(1)Revenue and Customs information may be disclosed under section 54(1) only if it relates to— (a)the exempt charity in relation to which the principal regulator has functions as such, or (b)a subsidiary undertaking of the exempt charity. (2)In subsection (1)(b) “subsidiary undertaking of the exempt charity” means an undertaking (as defined by section 1161(1) of the Companies Act 2006) in relation to which— (a)the exempt charity is (or is to be treated as) a parent undertaking in accordance with the provisions of section 1162 of, and Schedule 7 to, the Companies Act 2006, or (b)the exempt charity and one or more other charities would, if they were a single charity, be (or be treated as) a parent undertaking in accordance with those provisions.” (4)Section 57 has effect as if for the definition of “responsible person” in subsection (8) there were substituted a definition specified by regulations under section 25 (meaning of “principal regulator”). (5)Regulations under section 25 may also make such amendments or other modifications of any enactment as the Minister considers appropriate for securing that any disclosure provisions that would otherwise apply in relation to the principal regulator of an exempt charity do not apply in relation to that body or person as principal regulator. (6)In subsection (5) “disclosure provisions” means provisions having effect for authorising, or otherwise in connection with, the disclosure of information by or to the principal regulator concerned. (7)In subsection (5) “enactment” includes— (a)any provision of subordinate legislation (within the meaning of the Interpretation Act 1978), and (b)a provision of a Measure of the Church Assembly or of the General Synod of the Church of England,and references to enactments include enactments whenever passed or made. 59Disclosure: supplementary Nothing in sections 54 to 57 (or in those sections as applied by section 58(1) to (4)) authorises the making of a disclosure which— (a)contravenes the Data Protection Act 1998, or (b)is prohibited by Part 1 of the Regulation of Investigatory Powers Act 2000. Supply of false or misleading information to Commission etc. 60Supply of false or misleading information to Commission etc. (1)It is an offence for a person knowingly or recklessly to provide the Commission with information which is false or misleading in a material particular if the information is provided— (a)in purported compliance with a requirement imposed by or under this Act, or (b)otherwise than as mentioned in paragraph (a) but in circumstances in which the person providing the information— (i)intends, or (ii)could reasonably be expected to know,that it would be used by the Commission for the purpose of discharging its functions under this Act. (2)It is an offence for a person wilfully to alter, suppress, conceal or destroy any document which the person is or is liable to be required, by or under this Act, to produce to the Commission. (3)A person guilty of an offence under this section is liable— (a)on summary conviction, to a fine not exceeding the statutory maximum; (b)on conviction on indictment, to imprisonment for a term not exceeding 2 years or to a fine, or both. (4)In this section references to the Commission include references to any person conducting an inquiry under section 46. Part 6 Cy-près powers and assistance and supervision of charities by court and Commission Cy-près powers and variation of charters 61Duty of trustees in relation to application of property cy-près It is hereby declared that a trust for charitable purposes places a trustee under a duty, where the case permits and requires the property or some part of it to be applied cy-près, to secure its effective use for charity by taking steps to enable it to be so applied. 62Occasions for applying property cy-près (1)Subject to subsection (3), the circumstances in which the original purposes of a charitable gift can be altered to allow the property given or part of it to be applied cy-près are— (a)where the original purposes, in whole or in part— (i)have been as far as may be fulfilled, or (ii)cannot be carried out, or not according to the directions given and to the spirit of the gift, (b)where the original purposes provide a use for part only of the property available by virtue of the gift, (c)where— (i)the property available by virtue of the gift, and (ii)other property applicable for similar purposes,can be more effectively used in conjunction, and to that end can suitably, regard being had to the appropriate considerations, be made applicable to common purposes, (d)where the original purposes were laid down by reference to— (i)an area which then was but has since ceased to be a unit for some other purpose, or (ii)a class of persons or an area which has for any reason since ceased to be suitable, regard being had to the appropriate considerations, or to be practical in administering the gift, or (e)where the original purposes, in whole or in part, have, since they were laid down— (i)been adequately provided for by other means, (ii)ceased, as being useless or harmful to the community or for other reasons, to be in law charitable, or (iii)ceased in any other way to provide a suitable and effective method of using the property available by virtue of the gift, regard being had to the appropriate considerations. (2)In subsection (1) “the appropriate considerations” means— (a)(on the one hand) the spirit of the gift concerned, and (b)(on the other) the social and economic circumstances prevailing at the time of the proposed alteration of the original purposes. (3)Subsection (1) does not affect the conditions which must be satisfied in order that property given for charitable purposes may be applied cy-près except in so far as those conditions require a failure of the original purposes. (4)References in subsections (1) to (3) to the original purposes of a gift are to be read, where the application of the property given has been altered or regulated by a scheme or otherwise, as referring to the purposes for which the property is for the time being applicable. (5)The court may by scheme made under the court’s jurisdiction with respect to charities, in any case where the purposes for which the property is held are laid down by reference to any such area as is mentioned in column 1 in Schedule 4, provide for enlarging the area to any such area as is mentioned in column 2 in the same entry in that Schedule. (6)Subsection (5) does not affect the power to make schemes in circumstances falling within subsection (1). 63Application cy-près: donor unknown or disclaiming (1)Property given for specific charitable purposes which fail is applicable cy-près as if given for charitable purposes generally, if it belongs— (a)to a donor who after— (i)the prescribed advertisements and inquiries have been published and made, and (ii)the prescribed period beginning with the publication of those advertisements has ended,cannot be identified or cannot be found, or (b)to a donor who has executed a disclaimer in the prescribed form of the right to have the property returned. (2)Where the prescribed advertisements and inquiries have been published and made by or on behalf of trustees with respect to any such property, the trustees are not liable to any person in respect of the property if no claim by that person to be interested in it is received by them before the end of the period mentioned in subsection (1)(a)(ii). (3)Where property is applied cy-près by virtue of this section, all the donor’s interest in it is treated as having been relinquished when the gift was made. (4)But where property is so applied as belonging to donors who cannot be identified or cannot be found, and is not so applied by virtue of section 64 (donors treated as unidentifiable)— (a)the scheme must specify the total amount of that property, (b)the donor of any part of that amount is entitled, on making a claim within the time limit, to recover from the charity for which the property is applied a sum equal to that part, less any expenses properly incurred by the charity trustees after the scheme’s date in connection with claims relating to the donor’s gift, and (c)the scheme may include directions as to the provision to be made for meeting any claims made in accordance with paragraph (b). (5)For the purposes of subsection (4)(b)— (a)a claim is made within the time limit only if it is made no later than 6 months after the date on which the scheme is made, and (b)“the scheme’s date” means the date on which the scheme is made. (6)Subsection (7) applies if— (a)any sum is, in accordance with any directions included in the scheme under subsection (4)(c), set aside for meeting claims made in accordance with subsection (4)(b), but (b)the aggregate amount of any such claims actually made exceeds the relevant amount;and for this purpose “the relevant amount” means the amount of the sum so set aside after deduction of any expenses properly incurred by the charity trustees in connection with claims relating to the donors’ gifts. (7)If the Commission so directs, each of the donors in question is entitled only to such proportion of the relevant amount as the amount of the donor’s claim bears to the aggregate amount referred to in subsection (6)(b). 64Donors treated as unidentifiable (1)For the purposes of section 63 property is conclusively presumed (without any advertisement or inquiry) to belong to donors who cannot be identified, in so far as it consists of— (a)the proceeds of cash collections made— (i)by means of collecting boxes, or (ii)by other means not adapted for distinguishing one gift from another, or (b)the proceeds of any lottery, competition, entertainment, sale or similar money-raising activity, after allowing for property given to provide prizes or articles for sale or otherwise to enable the activity to be undertaken. (2)The court or the Commission may by order direct that property not falling within subsection (1) is for the purposes of section 63 to be treated (without any advertisement or inquiry) as belonging to donors who cannot be identified if it appears to the court or the Commission— (a)that it would be unreasonable, having regard to the amounts likely to be returned to the donors, to incur expense with a view to returning the property, or (b)that it would be unreasonable, having regard to the nature, circumstances and amounts of the gifts, and to the lapse of time since the gifts were made, for the donors to expect the property to be returned. 65Donors treated as disclaiming (1)This section applies to property given— (a)for specific charitable purposes, and (b)in response to a solicitation within subsection (2). (2)A solicitation is within this subsection if— (a)it is made for specific charitable purposes, and (b)it is accompanied by a statement to the effect that property given in response to it will, in the event of those purposes failing, be applicable cy-près as if given for charitable purposes generally, unless the donor makes a relevant declaration at the time of making the gift. (3)A relevant declaration is a declaration in writing by the donor to the effect that, in the event of the specific charitable purposes failing, the donor wishes to be given the opportunity by the trustees holding the property to request the return of the property in question (or a sum equal to its value at the time of the making of the gift). (4)Subsections (5) and (6) apply if— (a)a person has given property as mentioned in subsection (1), (b)the specific charitable purposes fail, and (c)the donor has made a relevant declaration. (5)The trustees holding the property must take the prescribed steps for the purpose of— (a)informing the donor of the failure of the purposes, (b)enquiring whether the donor wishes to request the return of the property (or a sum equal to its value), and (c)if within the prescribed period the donor makes such a request, returning the property (or such a sum) to the donor. (6)If those trustees have taken all appropriate prescribed steps but— (a)they have failed to find the donor, or (b)the donor does not within the prescribed period request the return of the property (or a sum equal to its value),section 63(1) applies to the property as if it belonged to a donor within section 63(1)(b) (application of property where donor has disclaimed right to return of property). (7)If— (a)a person has given property as mentioned in subsection (1), (b)the specific charitable purposes fail, and (c)the donor has not made a relevant declaration,section 63(1) similarly applies to the property as if it belonged to a donor within section 63(1)(b). (8)For the purposes of this section— (a)“solicitation” means a solicitation made in any manner and however communicated to the persons to whom it is addressed, (b)it is irrelevant whether any consideration is or is to be given in return for the property in question, and (c)where any appeal consists of— (i)solicitations that are accompanied by statements within subsection (2)(b), and (ii)solicitations that are not so accompanied,a person giving property as a result of the appeal is to be presumed, unless the contrary is proved, to have responded to the former solicitations and not the latter. 66Unknown and disclaiming donors: supplementary (1)For the purposes of sections 63 and 65, charitable purposes are to be treated as failing if any difficulty in applying property to those purposes makes that property or the part not applicable cy-près available to be returned to the donors. (2)In sections 63 to 65 and this section— (a)references to a donor include persons claiming through or under the original donor, and (b)references to property given include the property for the time being representing the property originally given or property derived from it. (3)Subsection (2) applies except in so far as the context otherwise requires. (4)In sections 63 and 65 “prescribed” means prescribed by regulations made by the Commission. (5)Any such regulations are to be published by the Commission in such manner as it thinks fit. (6)Any such regulations may, as respects the advertisements which are to be published for the purposes of section 63(1)(a), make provision as to the form and content of such advertisements as well as the manner in which they are to be published. 67Cy-près schemes (1)The power of the court or the Commission to make schemes for the application of property cy-près must be exercised in accordance with this section. (2)Where any property given for charitable purposes is applicable cy-près, the court or the Commission may make a scheme providing for the property to be applied— (a)for such charitable purposes, and (b)(if the scheme provides for the property to be transferred to another charity) by or on trust for such other charity,as it considers appropriate, having regard to the matters set out in subsection (3). (3)The matters are— (a)the spirit of the original gift, (b)the desirability of securing that the property is applied for charitable purposes which are close to the original purposes, and (c)the need for the relevant charity to have purposes which are suitable and effective in the light of current social and economic circumstances.The “relevant charity” means the charity by or on behalf of which the property is to be applied under the scheme. (4)If a scheme provides for the property to be transferred to another charity, the scheme may impose on the charity trustees of that charity a duty to secure that the property is applied for purposes which are, so far as is reasonably practicable, similar in character to the original purposes. (5)In this section references to property given include the property for the time being representing the property originally given or property derived from it. (6)In this section references to the transfer of property to a charity are references to its transfer— (a)to the charity, (b)to the charity trustees, (c)to any trustee for the charity, or (d)to a person nominated by the charity trustees to hold it in trust for the charity,as the scheme may provide. (7)In this section references to the original purposes of a gift are to be read, where the application of the property given has been altered or regulated by a scheme or otherwise, as referring to the purposes for which the property is for the time being applicable. 68Charities governed by charter, or by or under statute (1)Subsection (2) applies where a Royal charter establishing or regulating a body corporate is amendable by the grant and acceptance of a further charter. (2)A scheme relating to the body corporate or to the administration of property held by the body (including a scheme for the cy-près application of any such property)— (a)may be made by the court under the court’s jurisdiction with respect to charities even though the scheme cannot take effect without the alteration of the charter, but (b)must be so framed that the scheme, or such part of it as cannot take effect without the alteration of the charter, does not purport to come into operation unless or until Her Majesty thinks fit to amend the charter in such manner as will permit the scheme or that part of it to have effect. (3)Subsection (4) applies where, under— (a)the court’s jurisdiction with respect to charities or the corresponding jurisdiction of a court in Northern Ireland, or (b)powers conferred by this Act or by any Northern Ireland legislation relating to charities,a scheme is made with respect to a body corporate and it appears to Her Majesty expedient, having regard to the scheme, to amend any Royal charter relating to that body. (4)Her Majesty may, on the application of the body corporate, amend the charter accordingly by Order in Council in any way in which the charter could be amended by the grant and acceptance of a further charter; and any such Order in Council may be revoked or varied in the same manner as the charter it amends. (5)The jurisdiction of the court with respect to charities is not excluded or restricted in the case of a charity of a description mentioned in Schedule 5 by the operation of the enactments or instruments there mentioned in relation to that description. (6)A scheme established for a charity of a description mentioned in Schedule 5— (a)may modify or supersede in relation to it the provision made by any such enactment or instrument as if made by a scheme of the court, and (b)may also make any such provision as is authorised by that Schedule. Powers of Commission to make schemes etc. 69Commission’s concurrent jurisdiction with High Court for certain purposes (1)The Commission may by order exercise the same jurisdiction and powers as are exercisable by the High Court in charity proceedings for the following purposes— (a)establishing a scheme for the administration of a charity; (b)appointing, discharging or removing a charity trustee or trustee for a charity, or removing an officer or employee; (c)vesting or transferring property, or requiring or entitling any person to call for or make any transfer of property or any payment. (2)Subsection (1) is subject to the provisions of this Act. (3)If the court directs a scheme for the administration of a charity to be established— (a)the court may by order refer the matter to the Commission for it to prepare or settle a scheme in accordance with such directions (if any) as the court sees fit to give, and (b)any such order may provide for the scheme to be put into effect by order of the Commission as if prepared under subsection (1) and without any further order of the court. 70Restrictions on Commission’s concurrent jurisdiction (1)The Commission does not have jurisdiction under section 69 to try or determine— (a)the title at law or in equity to any property as between— (i)a charity or trustee for a charity, and (ii)a person holding or claiming the property or an interest in it adversely to the charity, or (b)any question as to the existence or extent of any charge or trust. (2)Subject to the following subsections, the Commission must not exercise its jurisdiction under section 69 as respects any charity except— (a)on the application of the charity, (b)on an order of the court under section 69(3), or (c)on the application of the Attorney General. (3)In the case of a charity whose gross income does not exceed £500 a year, the Commission may exercise its jurisdiction under section 69 on the application of— (a)any one or more of the charity trustees, (b)any person interested in the charity, or (c)any two or more inhabitants of the area of the charity if it is a local charity. (4)Subsection (5) applies where in the case of a charity, other than an exempt charity, the Commission— (a)is satisfied that the charity trustees— (i)ought in the interests of the charity to apply for a scheme, but (ii)have unreasonably refused or neglected to do so, and (b)has given the charity trustees an opportunity to make representations to it. (5)The Commission— (a)may proceed as if an application for a scheme had been made by the charity, but (b)may not, where it acts by virtue of this subsection, alter the purposes of a charity unless 40 years have elapsed from the date of the charity’s foundation. (6)Where— (a)a charity cannot apply to the Commission for a scheme because of any vacancy among the charity trustees or the absence or incapacity of any of them, but (b)such an application is made by such number of the charity trustees as the Commission considers appropriate in the circumstances of the case,the Commission may nevertheless proceed as if the application were an application made by the charity. (7)The Commission may on the application of any charity trustee or trustee for a charity exercise its jurisdiction under section 69 for the purpose of discharging the applicant from trusteeship. (8)The Commission must not exercise its jurisdiction under section 69 in any case (not referred to it by order of the court) which— (a)because of its contentious character, or any special question of law or of fact which it may involve, or (b)for other reasons,the Commission may consider more fit to be adjudicated on by the court. 71Exercise of Commission’s concurrent jurisdiction: notice (1)Before exercising any jurisdiction under section 69 otherwise than on an order of the court, the Commission must give notice of its intention to do so to each of the charity trustees except any— (a)that cannot be found or has no known address in the United Kingdom, or (b)who is party or privy to an application for the exercise of the jurisdiction. (2)Any such notice— (a)may be given by post, and (b)if given by post, may be addressed to the recipient’s last known address in the United Kingdom. 72Power to alter sum specified in s.70(3) If the Minister thinks it expedient to do so— (a)in consequence of changes in the value of money, or (b)with a view to increasing the number of charities in respect of which the Commission may exercise its jurisdiction under section 69 in accordance with section 70(3),the Minister may by order amend section 70(3) by substituting a different sum for the sum for the time being specified there. 73Powers to make schemes altering provision made by Acts, etc. (1)If it appears to the Commission that a scheme should be established for the administration of a charity, but also— (a)that it is necessary or desirable for the scheme— (i)to alter the provision made by an Act establishing or regulating the charity, or (ii)to make any other provision which goes or might go beyond the powers exercisable by the Commission apart from this section, or (b)that it is for any reason proper for the scheme to be subject to parliamentary review,the Commission may (subject to subsection (7)) settle a scheme accordingly with a view to its being given effect under this section. (2)A scheme settled by the Commission under this section may be given effect by order of the Minister. (3)Subject to subsections (4) and (6), an order under subsection (2) is subject to annulment in pursuance of a resolution of either House of Parliament. (4)In the case of a scheme which goes beyond the powers exercisable apart from this section in altering a statutory provision contained in or having effect under any public general Act, no order may be made unless a draft of the order has been laid before and approved by a resolution of each House of Parliament. (5)Subject to subsection (6), any provision of a scheme brought into effect under this section may be modified or superseded by the court or the Commission as if it were a scheme brought into effect by order of the Commission under section 69. (6)Where subsection (4) applies to a scheme, the order giving effect to it— (a)may direct that the scheme must not be modified or superseded by a scheme brought into effect otherwise than under this section, and (b)may also direct that subsection (4) is to apply to any scheme modifying or superseding the scheme to which the order gives effect. (7)The Commission must not proceed under this section without the same application, and the same notice to the charity trustees, as would be required if the Commission was proceeding (without an order of the court) under section 69. (8)But on any application for a scheme, or in a case where it acts by virtue of section 70(5) or (6), the Commission may proceed under this section or section 69 as appears to it appropriate. 74Restriction on expenditure on promoting Bills (1)No expenditure incurred in preparing or promoting a Bill in Parliament is to be defrayed without the consent of the court or the Commission out of any money applicable for the purposes of a charity. (2)Subsection (1) applies regardless of anything in the trusts of a charity. 75Further powers to alter application of charitable property (1)Subsection (2) applies where the Commission is satisfied that— (a)the whole of the income of a charity cannot in existing circumstances be effectively applied for the purposes of the charity, (b)if those circumstances continue, a scheme might be made for applying the surplus cy-près, and (c)it is for any reason not yet desirable to make such a scheme. (2)The Commission may by order authorise the charity trustees at their discretion (but subject to any conditions imposed by the order) to apply any accrued or accruing income for any purposes for which it might be made applicable by such a scheme. (3)Any application of accrued or accruing income authorised by an order under subsection (2) is to be treated as being within the purposes of the charity. (4)An order under subsection (2) must not extend— (a)to more than £300 out of income accrued before the date of the order, (b)to income accruing more than 3 years after that date, or (c)to more than £100 out of the income accruing in any of those 3 years. Powers of Commission to act for protection of charities etc. 76Suspension of trustees etc. and appointment of interim managers (1)Subsection (3) applies where, at any time after it has instituted an inquiry under section 46 with respect to any charity, the Commission is satisfied— (a)that there is or has been any misconduct or mismanagement in the administration of the charity, or (b)that it is necessary or desirable to act for the purpose of— (i)protecting the property of the charity, or (ii)securing a proper application for the purposes of the charity of that property or of property coming to the charity. (2)The reference in subsection (1) to misconduct or mismanagement extends (regardless of anything in the trusts of the charity) to the employment— (a)for the remuneration or reward of persons acting in the affairs of the charity, or (b)for other administrative purposes,of sums which are excessive in relation to the property which is or is likely to be applied or applicable for the purposes of the charity. (3)The Commission may of its own motion do one or more of the following— (a)by order suspend any person who is a trustee, charity trustee, officer, agent or employee of the charity from office or employment pending consideration being given to the person’s removal (whether under section 79 or 80 or otherwise); (b)by order appoint such number of additional charity trustees as it considers necessary for the proper administration of the charity; (c)by order— (i)vest any property held by or in trust for the charity in the official custodian, (ii)require the persons in whom any such property is vested to transfer it to the official custodian, or (iii)appoint any person to transfer any such property to the official custodian; (d)order any person who holds any property on behalf of the charity, or of any trustee for it, not to part with the property without the approval of the Commission; (e)order any debtor of the charity not to make any payment in or towards the discharge of the debtor’s liability to the charity without the approval of the Commission; (f)by order restrict (regardless of anything in the trusts of the charity) the transactions which may be entered into, or the nature or amount of the payments which may be made, in the administration of the charity without the approval of the Commission; (g)by order appoint (in accordance with section 78) an interim manager, to act as receiver and manager in respect of the property and affairs of the charity. (4)The Commission may not make an order under subsection (3)(a) so as to suspend a person from office or employment for a period of more than 12 months. (5)But any order under subsection (3)(a) made in the case of any person (“P”) may make provision, as respects the period of P’s suspension for matters arising out of it, and in particular— (a)for enabling any person to execute any instrument in P’s name or otherwise act for P, and (b)in the case of a charity trustee, for adjusting any rules governing the proceedings of the charity trustees to take account of the reduction in the number capable of acting.This does not affect the generality of section 337(1) and (2). (6)The Commission— (a)must, at such intervals as it thinks fit, review any order made by it under paragraph (a), or any of paragraphs (c) to (g), of subsection (3), and (b)if on any such review it appears to the Commission that it would be appropriate to discharge the order in whole or in part, must so discharge it (whether subject to any savings or other transitional provisions or not). 77Offence of contravening certain orders under s.76 (1)It is an offence for a person to contravene an order under— (a)section 76(3)(d) (order prohibiting person from parting with property), (b)section 76(3)(e) (order prohibiting debtor of charity from discharging liability), or (c)section 76(3)(f) (order restricting transactions or payments). (2)A person guilty of an offence under subsection (1) is liable on summary conviction to a fine not exceeding level 5 on the standard scale. (3)This section is not to be treated as precluding the bringing of proceedings for breach of trust against any charity trustee or trustee for a charity in respect of a contravention of an order under section 76(3)(d) or (f) (whether or not proceedings in respect of the contravention are brought against the trustee under this section). 78Interim managers: supplementary (1)The Commission may under section 76(3)(g) appoint to be interim manager in respect of a charity such person (other than a member of its staff) as it thinks fit. (2)An order made by the Commission under section 76(3)(g) may make provision with respect to the functions to be discharged by the interim manager appointed by the order.This does not affect the generality of section 337(1) and (2). (3)Those functions are to be discharged by the interim manager under the supervision of the Commission. (4)In connection with the discharge of those functions, an order under section 76(3)(g) may provide— (a)for the interim manager appointed by the order to have such powers and duties of the charity trustees of the charity concerned (whether arising under this Act or otherwise) as are specified in the order; (b)for any powers or duties specified by virtue of paragraph (a) to be exercisable or performed by the interim manager to the exclusion of those trustees. (5)Where a person has been appointed interim manager by any such order— (a)section 110 (power to give advice and guidance) applies to the interim manager and the interim manager’s functions as it applies to a charity trustee of the charity concerned and to the charity trustee’s duties as such, and (b)the Commission may apply to the High Court for directions in relation to any particular matter arising in connection with the discharge of those functions. (6)The High Court may on an application under subsection (5)(b)— (a)give such directions, or (b)make such orders declaring the rights of any persons (whether before the court or not),as it thinks just. (7)The costs of an application under subsection (5)(b) must be paid by the charity concerned. (8)Regulations made by the Minister may make provision with respect to— (a)the appointment and removal of persons appointed in accordance with this section; (b)the remuneration of such persons out of the income of the charities concerned; (c)the making of reports to the Commission by such persons. (9)Regulations under subsection (8) may, in particular, authorise the Commission— (a)to require security for the due discharge of the functions of a person so appointed to be given by that person; (b)to determine the amount of such a person’s remuneration; (c)to disallow any amount of remuneration in such circumstances as are prescribed by the regulations. 79Removal of trustee or officer etc. for protective etc. purposes (1)Subsection (2) applies where, at any time after it has instituted an inquiry under section 46 with respect to any charity, the Commission is satisfied both as mentioned in section 76(1)(a) (misconduct or mismanagement etc.) and as mentioned in section 76(1)(b) (need to protect property etc.). (2)The Commission may of its own motion do either or both of the following— (a)by order remove any trustee, charity trustee, officer, agent or employee of the charity— (i)who has been responsible for or privy to the misconduct or mismanagement, or (ii)whose conduct contributed to it or facilitated it; (b)by order establish a scheme for the administration of the charity. 80Other powers to remove or appoint charity trustees (1)The Commission may remove a charity trustee by order made of its own motion if— (a)within the last 5 years, the trustee— (i)having previously been adjudged bankrupt, has been discharged, or (ii)having previously made a composition or arrangement with, or granted a trust deed for, creditors, has been discharged in respect of it; (b)the trustee is a corporation in liquidation; (c)the trustee is incapable of acting because of mental disorder within the meaning of the Mental Health Act 1983; (d)the trustee has not acted, and will not make a declaration of willingness or unwillingness to act; (e)the trustee— (i)is outside England and Wales or cannot be found, or (ii)does not act,and the trustee’s absence or failure to act impedes the proper administration of the charity. (2)The Commission may by order made of its own motion appoint a person to be a charity trustee— (a)in place of a charity trustee removed by the Commission under section 79 or subsection (1) or otherwise; (b)if there are no charity trustees, or if because of vacancies in their number or the absence or incapacity of any of their number the charity cannot apply for the appointment; (c)if there is a single charity trustee who is not a corporation aggregate and the Commission is of opinion that it is necessary to increase the number for the proper administration of the charity; (d)if the Commission is of opinion that it is necessary for the proper administration of the charity to have an additional charity trustee because one of the existing charity trustees who ought nevertheless to remain a charity trustee— (i)is outside England and Wales or cannot be found, or (ii)does not act. (3)In subsection (1)(a)(i), the reference to the trustee having been adjudged bankrupt includes a reference to the trustee’s estate having been sequestrated. (4)This section does not apply in relation to an exempt charity except at a time after the Commission has instituted an inquiry under section 46 with respect to it. 81Removal or appointment of charity trustees etc.: supplementary (1)The powers of the Commission under sections 76, 79 and 80 to remove or appoint charity trustees of its own motion include power to make any such order with respect to the vesting in or transfer to the charity trustees of any property as the Commission could make on the removal or appointment of a charity trustee by it under section 69 (Commission’s concurrent jurisdiction with High Court for certain purposes). (2)Any order under any of those sections or this section— (a)for the removal or appointment of a charity trustee or trustee for a charity, or (b)for the vesting or transfer of any property,has the same effect as an order made under section 69. (3)Subsection (1) does not apply in relation to an exempt charity except at a time after the Commission has instituted an inquiry under section 46 with respect to it. 82Removal of trustees etc.: notice (1)Before exercising any jurisdiction by virtue of section 79 or 80, the Commission must give notice of its intention to do so to each of the charity trustees, except any that cannot be found or has no known address in the United Kingdom. (2)Any such notice— (a)may be given by post, and (b)if given by post, may be addressed to the recipient’s last known address in the United Kingdom. 83Power to suspend or remove trustees etc. from membership of charity (1)Subsection (2) applies where— (a)the Commission makes an order under section 76(3) suspending from office or employment a person who is a trustee, charity trustee, officer, agent or employee of a charity, and (b)the person is a member of the charity. (2)The Commission may also make an order suspending the person’s membership of the charity for the period for which the person is suspended from office or employment. (3)Subsection (4) applies where— (a)the Commission makes an order under section 79(2) removing from office or employment a person who is an officer, agent or employee of a charity, and (b)the person is a member of the charity. (4)The Commission may also make an order— (a)terminating the person’s membership of the charity, and (b)prohibiting the person from resuming membership of the charity without the Commission’s consent. (5)If an application for the Commission’s consent under subsection (4)(b) is made 5 years or more after the order was made, the Commission must grant the application unless satisfied that, because of any special circumstances, it should be refused. 84Power to direct specified action to be taken (1)This section applies where, at any time after the Commission has instituted an inquiry under section 46 with respect to any charity, it is satisfied either as mentioned in section 76(1)(a) (misconduct or mismanagement etc.) or as mentioned in section 76(1)(b) (need to protect property etc.). (2)The Commission may by order direct— (a)the charity trustees, (b)any trustee for the charity, (c)any officer or employee of the charity, or (d)(if a body corporate) the charity itself,to take any action specified in the order which the Commission considers to be expedient in the interests of the charity. (3)An order under this section— (a)may require action to be taken whether or not it would otherwise be within the powers exercisable by the person or persons concerned, or by the charity, in relation to the administration of the charity or to its property, but (b)may not require any action to be taken which is prohibited by any Act or expressly prohibited by the trusts of the charity or is inconsistent with its purposes. (4)Anything done by a person or body under the authority of an order under this section is to be treated as properly done in the exercise of the powers mentioned in subsection (3)(a). (5)Subsection (4) does not affect any contractual or other rights arising in connection with anything which has been done under the authority of such an order. 85Power to direct application of charity property (1)This section applies where the Commission is satisfied— (a)that a person or persons in possession or control of any property held by or on trust for a charity is or are unwilling to apply it properly for the purposes of the charity, and (b)that it is necessary or desirable to make an order under this section for the purpose of securing a proper application of that property for the purposes of the charity. (2)The Commission may by order direct the person or persons concerned to apply the property in such manner as is specified in the order. (3)An order under this section— (a)may require action to be taken whether or not it would otherwise be within the powers exercisable by the person or persons concerned in relation to the property, but (b)may not require any action to be taken which is prohibited by any Act or expressly prohibited by the trusts of the charity. (4)Anything done by a person under the authority of an order under this section is to be treated as properly done in the exercise of the powers mentioned in subsection (3)(a). (5)Subsection (4) does not affect any contractual or other rights arising in connection with anything which has been done under the authority of such an order. 86Copy of certain orders, and reasons, to be sent to charity (1)Where the Commission makes an order under a provision mentioned in subsection (2) it must send the documents mentioned in subsection (3)— (a)to the charity concerned (if a body corporate), or (b)(if not) to each of the charity trustees. (2)The provisions are— section 76 (suspension of trustees etc. and appointment of interim managers); section 79 (removal of trustee or officer etc. for protective etc. purposes); section 80 (other powers to remove or appoint charity trustees); section 81 (removal or appointment of charity trustees etc.: supplementary); section 83 (power to suspend or remove trustees etc. from membership of charity); section 84 (power to direct specified action to be taken); section 85 (power to direct application of charity property). (3)The documents are— (a)a copy of the order, and (b)a statement of the Commission’s reasons for making it. (4)The documents must be sent to the charity or charity trustees as soon as practicable after the making of the order. (5)The Commission need not comply with subsection (4) in relation to the documents, or (as the case may be) the statement of its reasons, if it considers that to do so— (a)would prejudice any inquiry or investigation, or (b)would not be in the interests of the charity;but, once the Commission considers that this is no longer the case, it must send the documents, or (as the case may be) the statement, to the charity or charity trustees as soon as practicable. (6)Nothing in this section requires any document to be sent to a person who— (a)cannot be found, or (b)has no known address in the United Kingdom. (7)Any documents required to be sent to a person under this section may be sent to, or otherwise served on, the person in the same way as an order made by the Commission under this Act could be served on the person in accordance with section 339. 87Supervision by Commission of certain Scottish charities (1)Sections 76 to 82 (except section 79(2)(b)) and sections 84 to 86 have effect in relation to any body which— (a)is entered in the Scottish Charity Register, and (b)is managed or controlled wholly or mainly in or from England or Wales,as they have effect in relation to a charity. (2)Subsection (3) applies where— (a)a body entered in the Scottish Charity Register is managed or controlled wholly or mainly in or from Scotland, but (b)any person in England and Wales holds any property on behalf of the body or of any person concerned in its management or control. (3)If the Commission is satisfied, on the basis of such information as may be supplied to it by the Scottish Charity Regulator, as to the matters mentioned in subsection (4), it may make an order requiring the person holding the property not to part with it without the Commission’s approval. (4)The matters are— (a)that there has been any misconduct or mismanagement in the administration of the body, and (b)that it is necessary or desirable to make an order under subsection (3) for the purpose of protecting the property of the body or securing a proper application of such property for the purposes of the body. (5)Subsection (6) applies where— (a)any person in England and Wales holds any property on behalf of a body entered in the Scottish Charity Register or of any person concerned in the management or control of such a body, and (b)the Commission is satisfied (whether on the basis of such information as may be supplied to it by the Scottish Charity Regulator or otherwise)— (i)that there has been any misconduct or mismanagement in the administration of the body, and (ii)that it is necessary or desirable to make an order under subsection (6) for the purpose of protecting the property of the body or securing a proper application of such property for the purposes of the body. (6)The Commission may by order— (a)vest the property in such body or charity as is specified in the order in accordance with subsections (7) and (8), (b)require any persons in whom the property is vested to transfer it to any such body or charity, or (c)appoint any person to transfer the property to any such body or charity. (7)The Commission may specify in an order under subsection (6)— (a)such other body entered in the Scottish Charity Register, or (b)such charity,as it considers appropriate, if the purposes of the body or charity are, in the opinion of the Commission, as similar in character to those of the body referred to in subsection (5)(a) as is reasonably practicable. (8)But the Commission must not so specify any body or charity unless it has received from— (a)the persons concerned in the management or control of the body, or (b)(as the case may be) the charity trustees of the charity,written confirmation that they are willing to accept the property. Publicity relating to schemes and orders 88Publicity relating to schemes (1)The Commission may not— (a)make any order under this Act to establish a scheme for the administration of a charity, or (b)submit such a scheme to the court or the Minister for an order giving it effect,unless, before doing so, the Commission has complied with the publicity requirements in subsection (2). This is subject to any disapplication of those requirements under subsection (4). (2)The publicity requirements are— (a)that the Commission must give public notice of its proposals, inviting representations to be made to it within a period specified in the notice, and (b)that, in the case of a scheme relating to a local charity (other than an ecclesiastical charity) in a parish, or in a community in Wales, the Commission must communicate a draft of the scheme to— (i)the parish council or, if the parish has no council, the chairman of the parish meeting, or (ii)the community council or, if the community has no council, the county council or county borough council. (3)The time when any such notice is given or any such communication takes place is to be decided by the Commission. (4)The Commission may determine that either or both of the publicity requirements is or are not to apply in relation to a particular scheme if it is satisfied that— (a)because of the nature of the scheme, or (b)for any other reason,compliance with the requirement or requirements is unnecessary. (5)Where the Commission gives public notice of any proposals under this section— (a)it must take into account any representations made to it within the period specified in the notice, and (b)it may (without further notice) proceed with the proposals either without modifications or with such modifications as it thinks desirable. (6)Where the Commission makes an order under this Act to establish a scheme for the administration of a charity, a copy of the order must be available, for at least a month after the order is published, for public inspection at all reasonable times— (a)at the Commission’s office, and (b)if the charity is a local charity, at some convenient place in the area of the charity. (7)Subsection (6)(b) does not apply if the Commission is satisfied that for any reason it is unnecessary for a copy of the scheme to be available locally. (8)Any public notice of any proposals which is to be given under this section— (a)is to contain such particulars of the proposals, or such directions for obtaining information about them, as the Commission thinks sufficient and appropriate, and (b)is to be given in such manner as the Commission thinks sufficient and appropriate. 89Publicity for orders relating to trustees or other individuals (1)The Commission may not make any order under this Act to appoint, discharge or remove a charity trustee or trustee for a charity, other than— (a)an order relating to the official custodian, or (b)an order under section 76(3)(b) (appointment of additional charity trustees),unless, before doing so, the Commission has complied with the publicity requirement in subsection (2). This is subject to any disapplication of that requirement under subsection (4). (2)The publicity requirement is that the Commission must give public notice of its proposals, inviting representations to be made to it within a period specified in the notice. (3)The time when any such notice is given is to be decided by the Commission. (4)The Commission may determine that the publicity requirement is not to apply in relation to a particular order if it is satisfied that for any reason compliance with the requirement is unnecessary. (5)Before the Commission makes an order under this Act to remove a person who is— (a)a charity trustee or trustee for a charity, or (b)an officer, agent or employee of a charity,without the person’s consent, the Commission must give the person not less than one month’s notice of its proposals, inviting representations to be made to it within a period specified in the notice. This does not apply if the person cannot be found or has no known address in the United Kingdom. (6)Where the Commission gives notice of any proposals under this section— (a)it must take into account any representations made to it within the period specified in the notice, and (b)it may (without further notice) proceed with the proposals either without modifications or with such modifications as it thinks desirable. (7)Any notice of any proposals which is to be given under this section— (a)is to contain such particulars of the proposals, or such directions for obtaining information about them, as the Commission thinks sufficient and appropriate, and (b)(in the case of a public notice) is to be given in such manner as the Commission thinks sufficient and appropriate. (8)Any notice to be given under subsection (5)— (a)may be given by post, and (b)if given by post, may be addressed to the recipient’s last known address in the United Kingdom. Property vested in official custodian 90Entrusting charity property to official custodian, and termination of trust (1)The court may by order— (a)vest in the official custodian any land held by or in trust for a charity, (b)authorise or require the persons in whom any such land is vested to transfer it to the official custodian, or (c)appoint any person to transfer any such land to the official custodian. (2)But subsection (1) does not apply to any interest in land by way of mortgage or other security. (3)Where property is vested in the official custodian in trust for a charity, the court may make an order discharging the official custodian from the trusteeship as respects all or any of that property. (4)Where— (a)the official custodian is discharged from the trusteeship of any property, or (b)the trusts on which the official custodian holds any property come to an end,the court may make such vesting orders and give such directions as may seem to the court to be necessary or expedient in consequence. (5)No person is liable for any loss occasioned by— (a)acting in conformity with an order under this section, or (b)giving effect to anything done in pursuance of such an order. (6)No person is excused from— (a)acting in conformity with an order under this section, or (b)giving effect to anything done in pursuance of such an order,because the order has been in any respect improperly obtained. 91Supplementary provisions as to property vested in official custodian (1)Subject to the provisions of this Act, where property is vested in the official custodian in trust for a charity, the official custodian— (a)must not exercise any powers of management, but (b)as trustee of any property— (i)has all the same powers, duties and liabilities, (ii)is entitled to the same rights and immunities, and (iii)is subject to the control and orders of the court in the same way,as a corporation appointed custodian trustee under section 4 of the Public Trustee Act 1906. (2)Subsection (1) does not confer on the official custodian a power to charge fees. (3)Subject to subsection (4), where any land is vested in the official custodian in trust for a charity, the charity trustees may, in the name and on behalf of the official custodian, execute and do all assurances and things which they could properly execute or do in their own name and on their own behalf if the land were vested in them. (4)If any land is so vested in the official custodian by virtue of an order under section 76(3)(c), the power conferred on the charity trustees by subsection (3) is not exercisable by them in relation to any transaction affecting the land, unless the transaction is authorised by order of the court or of the Commission. (5)Where any land is vested in the official custodian in trust for a charity— (a)the charity trustees have the same power to make obligations entered into by them binding on the land as if it were vested in them, and (b)any covenant, agreement or condition which is enforceable by or against the official custodian because the land is vested in the official custodian is enforceable by or against the charity trustees as if the land were vested in them. (6)In relation to a corporate charity, subsections (3) to (5) apply with the substitution of references to the charity for references to the charity trustees. (7)Subsections (3) to (5) do not authorise any charity trustees or charity to impose any personal liability on the official custodian. (8)Where the official custodian is entitled as trustee for a charity to the custody of securities or documents of title relating to the trust property, the official custodian may permit them to be in the possession or under the control of the charity trustees without incurring any liability by doing so. Official custodian and Reverter of Sites Act 1987 92Divestment of official custodian where 1987 Act due to operate (1)Subsection (2) applies where— (a)any land is vested in the official custodian in trust for a charity, and (b)it appears to the Commission that section 1 of the 1987 Act (right of reverter replaced by trust) will, or is likely to, operate in relation to the land at a particular time or in particular circumstances. (2)The jurisdiction which, under section 69, is exercisable by the Commission for the purpose of discharging a trustee for a charity may, at any time before section 1 of the 1987 Act operates in relation to the land, be exercised by the Commission of its own motion for the purpose of— (a)making an order discharging the official custodian from the trusteeship of the land, and (b)making such vesting orders and giving such directions as appear to the Commission to be necessary or expedient in consequence. (3)In this section and sections 93 to 95— (a)“the 1987 Act” means the Reverter of Sites Act 1987, and (b)any reference to section 1 of the 1987 Act operating in relation to any land is a reference to a trust arising in relation to the land under that section. 93Divestment of official custodian where 1987 Act has operated (1)Subsection (2) applies where— (a)section 1 of the 1987 Act has operated in relation to any land which, immediately before the time when that section so operated, was vested in the official custodian in trust for a charity, and (b)the land remains vested in the official custodian but on the trust arising under that section. (2)The court or the Commission (of its own motion) may— (a)make an order discharging the official custodian from the trusteeship of the land, and (b)(subject to sections 94 and 95) make such vesting orders and give such directions as appear to it to be necessary or expedient in consequence. 94Vesting of land in relevant charity trustees following divestment (1)Subsection (2) applies where an order discharging the official custodian from the trusteeship of any land— (a)is made by— (i)the court under section 90(3), or (ii)the Commission under section 69,on the ground that section 1 of the 1987 Act will, or is likely to, operate in relation to the land, or (b)is made by the court or the Commission under section 93. (2)The persons in whom the land is to be vested on the discharge of the official custodian are the relevant charity trustees, unless the court or (as the case may be) the Commission is satisfied that it would be appropriate for it to be vested in some other persons. (3)In subsection (2) “the relevant charity trustees” means— (a)in relation to an order made as mentioned in subsection (1)(a), the charity trustees of the charity in trust for which the land is vested in the official custodian immediately before the time when the order takes effect, or (b)in relation to an order made under section 93, the charity trustees of the charity in trust for which the land was vested in the official custodian immediately before the time when section 1 of the 1987 Act operated in relation to the land. 95Supplementary provisions in connection with 1987 Act (1)Subsection (2) applies where— (a)section 1 of the 1987 Act has operated in relation to any such land as is mentioned in section 93(1)(a), and (b)the land remains vested in the official custodian as mentioned in section 93(1)(b). (2)Subject to subsection (3)— (a)all the powers, duties and liabilities that would, apart from this section, be those of the official custodian as trustee of the land are instead to be those of the charity trustees of the charity concerned, and (b)those trustees may, in the name and on behalf of the official custodian, execute and do all assurances and things which they could properly execute or do in their own name and on their own behalf if the land were vested in them. (3)Subsection (2) is not to be treated as requiring or authorising those trustees to sell the land at a time when it remains vested in the official custodian. (4)Where— (a)the official custodian has been discharged from the trusteeship of any land by an order under section 93, and (b)the land has, in accordance with section 94, been vested in the charity trustees concerned or (as the case may be) in any persons other than those trustees,the land is to be held by those trustees, or (as the case may be) by those persons, as trustees on the terms of the trust arising under section 1 of the 1987 Act. (5)The official custodian is not liable to any person in respect of any loss or misapplication of any land vested in the official custodian in accordance with section 1 of the 1987 Act unless it is occasioned by or through any wilful neglect or default of— (a)the official custodian, or (b)any person acting for the official custodian. (6)But the Consolidated Fund is liable to make good to any person any sums for which the official custodian may be liable because of any such neglect or default. Establishment of common investment or deposit funds 96Power to make common investment schemes (1)The court or the Commission may by order make and bring into effect schemes for the establishment of common investment funds under trusts which provide— (a)for property transferred to the fund by or on behalf of a charity participating in the scheme to be invested under the control of trustees appointed to manage the fund, and (b)for the participating charities to be entitled (subject to the provisions of the scheme) to the capital and income of the fund in shares determined by reference to the amount or value of the property transferred to it by or on behalf of each of them and to the value of the fund at the time of the transfers. (2)In this section and sections 97 to 99 “common investment scheme” means a scheme under subsection (1). (3)The court or the Commission may make a common investment scheme on the application of any two or more charities. 97Bodies which may participate in common investment schemes (1)A common investment scheme— (a)may be made in terms admitting any charity to participate, or (b)may restrict the right to participate in any manner. (2)A common investment scheme may provide for appropriate bodies to be admitted to participate in the scheme (in addition to the participating charities) to such extent as the trustees appointed to manage the fund may determine. (3)In this section “appropriate body” means— (a)a Scottish recognised body, or (b)a Northern Ireland charity,and, in the application of the relevant provisions in relation to a scheme which contains provisions authorised by subsection (2), “charity” includes an appropriate body. (4)The relevant provisions are— (a)section 96(1) (power to make common investment schemes), (b)section 98 (provisions which may be included in common investment schemes), (c)section 99(1) (provisions relating to rights of participating charity etc.), and (d)(in relation only to a Northern Ireland charity) section 99(2) (power to participate in common investment schemes). 98Provisions which may be included in common investment schemes (1)A common investment scheme may make provision for, and for all matters connected with, the establishment, investment, management and winding up of the common investment fund, and may in particular include provision— (a)for remunerating persons appointed trustees to hold or manage the fund or any part of it, with or without provision authorising a person to receive the remuneration even though the person is also a charity trustee of or trustee for a participating charity; (b)for restricting the size of the fund, and for regulating as to time, amount or otherwise the right to transfer property to or withdraw it from the fund, and for enabling sums to be advanced out of the fund by way of loan to a participating charity pending the withdrawal of property from the fund by the charity; (c)for enabling income to be withheld from distribution with a view to avoiding fluctuations in the amounts distributed, and generally for regulating distributions of income; (d)for enabling money to be borrowed temporarily for the purpose of meeting payments to be made out of the funds; (e)for enabling questions arising under the scheme as to the right of a charity to participate, or as to the rights of participating charities, or as to any other matter, to be conclusively determined by the decision of the trustees managing the fund or in any other manner; (f)for regulating the accounts and information to be supplied to participating charities. (2)A common investment scheme, in addition to the provision for property to be transferred to the fund on the basis that the charity is to be entitled to a share in the capital and income of the fund, may include provision for enabling sums to be deposited by or on behalf of a charity on the basis that (subject to the provisions of the scheme) the charity is to be entitled— (a)to repayment of the sums deposited, and (b)to interest on them at a rate determined by or under the scheme. (3)Where a scheme makes any such provision it must also provide for excluding from the amount of capital and income to be shared between charities participating otherwise than by way of deposit such amounts (not exceeding the amounts properly attributable to the making of deposits) as are from time to time reasonably required in respect of the liabilities of the fund— (a)for the repayment of deposits, and (b)for the interest on deposits,including amounts required by way of reserve. 99Further provisions relating to common investment schemes and funds (1)Except in so far as a common investment scheme provides to the contrary— (a)the rights under it of a participating charity are not capable of being assigned or charged; (b)a trustee or other person concerned in the management of the common investment fund is not required or entitled to take account of any trust or other equity affecting a participating charity or its property or rights. (2)The powers of investment of every charity include power to participate in common investment schemes unless the power is excluded by a provision specifically referring to common investment schemes in the trusts of the charity. (3)A common investment fund is to be treated for all purposes as being a charity. (4)Subsection (3) applies not only to common investment funds established under section 96, but also to any similar fund established for the exclusive benefit of charities by or under any enactment relating to any particular charities or class of charities. 100Power to make common deposit schemes (1)The court or the Commission may by order make and bring into effect schemes for the establishment of common deposit funds under trusts which provide— (a)for sums to be deposited by or on behalf of a charity participating in the scheme and invested under the control of trustees appointed to manage the fund, and (b)for any such charity to be entitled (subject to the provisions of the scheme) to repayment of any sums so deposited and to interest on them at a rate determined under the scheme. (2)In this section and sections 101 to 103 “common deposit scheme” means a scheme under subsection (1). (3)The court or the Commission may make a common deposit scheme on the application of any two or more charities. 101Bodies which may participate in common deposit schemes (1)A common deposit scheme— (a)may be made in terms admitting any charity to participate, or (b)may restrict the right to participate in any manner. (2)A common deposit scheme may provide for appropriate bodies to be admitted to participate in the scheme (in addition to the participating charities) to such extent as the trustees appointed to manage the fund may determine. (3)In this section “appropriate body” means— (a)a Scottish recognised body, or (b)a Northern Ireland charity,and, in the application of the relevant provisions in relation to a scheme which contains provisions authorised by subsection (2), “charity” includes an appropriate body. (4)The relevant provisions are— (a)section 100(1) (power to make common deposit schemes), (b)section 102 (provisions which may be included in common deposit schemes), (c)section 103(1) (provisions relating to rights of participating charity etc.), and (d)(in relation only to a Northern Ireland charity) section 103(2) (power to participate in common deposit schemes). 102Provisions which may be included in common deposit schemes A common deposit scheme may make provision for, and for all matters connected with, the establishment, investment, management and winding up of the common deposit fund, and may in particular include provision— (a)for remunerating persons appointed trustees to hold or manage the fund or any part of it, with or without provision authorising a person to receive the remuneration even though the person is also a charity trustee of or trustee for a participating charity; (b)for regulating as to time, amount or otherwise the right to repayment of sums deposited in the fund; (c)for authorising a part of the income for any year to be credited to a reserve account maintained for the purpose of counteracting any losses accruing to the fund, and generally for regulating the manner in which the rate of interest on deposits is to be determined from time to time; (d)for enabling money to be borrowed temporarily for the purpose of meeting payments to be made out of the funds; (e)for enabling questions arising under the scheme as to the right of a charity to participate, or as to the rights of participating charities, or as to any other matter, to be conclusively determined by the decision of the trustees managing the fund or in any other manner; (f)for regulating the accounts and information to be supplied to participating charities. 103Further provisions relating to common deposit schemes and funds (1)Except in so far as a common deposit scheme provides to the contrary— (a)the rights under it of a participating charity are not capable of being assigned or charged; (b)a trustee or other person concerned in the management of the common deposit fund is not required or entitled to take account of any trust or other equity affecting a participating charity or its property or rights. (2)The powers of investment of every charity include power to participate in common deposit schemes unless the power is excluded by a provision specifically referring to common deposit schemes in the trusts of the charity. (3)A common deposit fund is to be treated for all purposes as being a charity. (4)Subsection (3) applies not only to common deposit funds established under section 100, but also to any similar fund established for the exclusive benefit of charities by or under any enactment relating to any particular charities or class of charities. 104Meaning of “Scottish recognised body” and “Northern Ireland charity” (1)In sections 97 and 101 “Scottish recognised body” means a body– (a)established under the law of Scotland, or (b)managed or controlled wholly or mainly in or from Scotland,to which HMRC have given intimation, which has not subsequently been withdrawn, that tax relief is due in respect of income of the body which is applicable and applied to charitable purposes only. (2)In sections 97 and 101 “Northern Ireland charity” means an institution— (a)which is a charity under the law of Northern Ireland, and (b)to which HMRC have given intimation, which has not subsequently been withdrawn, that tax relief is due in respect of income of the institution which is applicable and applied to charitable purposes only. (3)For the purposes of this section— “HMRC” means the Commissioners for Her Majesty’s Revenue and Customs; “tax relief” means relief under— (a)Part 10 of the Income Tax Act 2007, or (b)any provision of Part 11 of the Corporation Tax Act 2010 other than sections 480 (exemption for profits of small-scale trades) and 481 (exemption from charges under provisions to which section 1173 applies). Power to authorise dealings with charity property, ex gratia payments etc. 105Power to authorise dealings with charity property etc. (1)Subject to the provisions of this section, where it appears to the Commission that any action proposed or contemplated in the administration of a charity is expedient in the interests of the charity, the Commission may by order sanction that action, whether or not it would otherwise be within the powers exercisable by the charity trustees in the administration of the charity. (2)Anything done under the authority of an order under this section is to be treated as properly done in the exercise of those powers. (3)An order under this section— (a)may be made so as to authorise a particular transaction, compromise or the like, or a particular application of property, or so as to give a more general authority, and (b)may authorise a charity to use common premises, or employ a common staff, or otherwise combine for any purpose of administration, with any other charity.Paragraph (b) does not affect the generality of subsection (1). (4)An order under this section may give directions— (a)as to the manner in which any expenditure is to be borne, and (b)as to other matters connected with or arising out of the action authorised by the order. (5)Where anything is done in pursuance of an authority given by an order under this section, any directions given in connection with that authority— (a)are binding on the charity trustees for the time being as if contained in the trusts of the charity, but (b)may on the application of the charity be modified or superseded by a further order. (6)The directions which may be given by an order under this section in particular include directions— (a)for meeting any expenditure out of a specified fund, (b)for charging any expenditure to capital or to income, (c)for requiring expenditure charged to capital to be recouped out of income within a specified period, (d)for restricting the costs to be incurred at the expense of the charity, or (e)for the investment of money arising from any transaction.This does not affect the generality of subsection (4). (7)An order under this section may authorise any act even though— (a)it is prohibited by the Ecclesiastical Leases Act 1836, or (b)the trusts of the charity provide for the act to be done by or under the authority of the court. (8)But an order under this section may not— (a)authorise the doing of any act expressly prohibited by any Act other than the Ecclesiastical Leases Act 1836, or by the trusts of the charity, or (b)extend or alter the purposes of the charity. (9)In the case of a charitable company, an order under this section may authorise an act even though it involves the breach of a duty imposed on a director of the company under Chapter 2 of Part 10 of the Companies Act 2006 (general duties of directors). (10)An order under this section does not confer any authority in relation to a building which has been consecrated and of which the use or disposal is regulated, and can be further regulated, by a scheme having effect or treated as having effect under or by virtue of the Mission and Pastoral Measure 2011. (11)The reference in subsection (10) to a building is to be treated as including— (a)part of a building, and (b)any land which under such a scheme is to be used or disposed of with a building to which the scheme applies. 106Power to authorise ex gratia payments etc. (1)Subject to subsection (5), the Commission may by order exercise the same power as is exercisable by the Attorney General to authorise the charity trustees of a charity to take any action falling within subsection (2)(a) or (b) in a case where the charity trustees— (a)(apart from this section) have no power to take the action, but (b)in all the circumstances regard themselves as being under a moral obligation to take it. (2)The actions are— (a)making any application of property of the charity, or (b)waiving to any extent, on behalf of the charity, its entitlement to receive any property. (3)The power conferred on the Commission by subsection (1) is exercisable by the Commission under the supervision of, and in accordance with such directions as may be given by, the Attorney General. (4)Any such directions may in particular require the Commission, in such circumstances as are specified in the directions— (a)to refrain from exercising the power conferred by subsection (1), or (b)to consult the Attorney General before exercising it. (5)Where— (a)an application is made to the Commission for it to exercise the power conferred by subsection (1) in a case where it is not precluded from doing so by any such directions, but (b)the Commission considers that it would nevertheless be desirable for the application to be entertained by the Attorney General rather than by the Commission,the Commission must refer the application to the Attorney General. (6)It is hereby declared that where— (a)an application is made to the Commission as mentioned in subsection (5)(a), and (b)the Commission determines the application by refusing to authorise charity trustees to take any action falling within subsection (2)(a) or (b),that refusal does not preclude the Attorney General, on an application subsequently made to the Attorney General by the charity trustees, from authorising them to take that action. Power to give directions about dormant bank accounts of charities 107Power to direct transfer of credits in dormant bank accounts (1)The Commission may give a direction under subsection (2) where— (a)it is informed by a relevant institution— (i)that it holds one or more accounts in the name of or on behalf of a particular charity (“the relevant charity”), and (ii)that the account, or (if it so holds two or more accounts) each of the accounts, is dormant, and (b)it is unable, after making reasonable inquiries, to locate that charity or any of its trustees. (2)A direction under this subsection is a direction which— (a)requires the institution concerned to transfer the amount, or (as the case may be) the aggregate amount, standing to the credit of the relevant charity in the account or accounts in question to such other charity as is specified in the direction in accordance with subsection (3), or (b)requires the institution concerned to transfer to each of two or more other charities so specified in the direction such part of that amount or aggregate amount as is there specified in relation to that charity. (3)The Commission— (a)may specify in a direction under subsection (2) such other charity or charities as it considers appropriate, having regard, in a case where the purposes of the relevant charity are known to the Commission, to those purposes and to the purposes of the other charity or charities, but (b)must not so specify any charity unless it has received from the charity trustees written confirmation that those trustees are willing to accept the amount proposed to be transferred to the charity. (4)Any amount received by a charity by virtue of this section is to be received by the charity on terms that— (a)it is to be held and applied by the charity for the purposes of the charity, but (b)as property of the charity, it is nevertheless subject to any restrictions on expenditure to which it was subject as property of the relevant charity. (5)The receipt of any charity trustees or trustee for a charity in respect of any amount received from a relevant institution by virtue of this section is a complete discharge of the institution in respect of that amount. 108Accounts which cease to be dormant before transfer (1)This section applies where— (a)the Commission has been informed as mentioned in section 107(1)(a) by any relevant institution, and (b)before any transfer is made by the institution in pursuance of a direction under section 107(2), the institution has, by reason of any circumstances, cause to believe that the account, or (as the case may be) any of the accounts, held by it in the name of or on behalf of the relevant charity is no longer dormant. (2)The institution must without delay notify those circumstances in writing to the Commission. (3)If it appears to the Commission that the account or accounts in question is or are no longer dormant, it must revoke any direction under section 107(2) which has previously been given by it to the institution with respect to the relevant charity. 109Dormant bank accounts: supplementary (1)No obligation as to secrecy or other restriction on disclosure (however imposed) precludes a relevant institution from disclosing any information to the Commission for the purpose of enabling the Commission to discharge its functions under sections 107 and 108. (2)For the purposes of sections 107 and 108 and this section, an account is dormant if no transaction, other than— (a)a transaction consisting in a payment into the account, or (b)a transaction which the institution holding the account has itself caused to be effected,has been effected in relation to the account within the period of 5 years immediately preceding the date when the Commission is informed as mentioned in section 107(1)(a). (3)For the purposes of sections 107 and 108 and this section, a “relevant institution” means— (a)the Bank of England, (b)a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits, (c)an EEA firm of the kind mentioned in paragraph 5(b) of Schedule 3 to that Act which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12(1) of that Schedule) to accept deposits, or (d)such other person who may lawfully accept deposits in the United Kingdom as may be prescribed by the Minister. (4)In subsection (3), paragraphs (b) to (d) are to be read with— (a)section 22 of the Financial Services and Markets Act 2000, (b)any relevant order under that section, and (c)Schedule 2 to that Act. (5)For the purposes of sections 107 and 108, references to the transfer of any amount to a charity are references to its transfer— (a)to the charity trustees, or (b)to any trustee for the charity,as the charity trustees may determine (and any reference to any amount received by a charity is to be read accordingly). (6)For the purpose of determining the matters in respect of which any of the powers conferred by sections 46 to 53 (inquiries and searches) may be exercised it is to be assumed that the Commission has no functions under section 107 or 108 in relation to accounts to which this subsection applies.(This has the result that, for example, a relevant institution is not, in connection with the Commission’s functions under sections 107 and 108, required under section 47(2)(a) to provide any statements, or answer any questions or inquiries, with respect to any such accounts held by the institution.) (7)Subsection (6) applies to accounts which— (a)are dormant accounts by virtue of subsection (2), but (b)would not be dormant accounts if subsection (2)(a) were omitted. Additional powers of Commission 110Power to give advice (1)The Commission may, on the written application of any charity trustee or trustee for a charity, give the applicant its opinion or advice in relation to any matter— (a)relating to the performance of any duties of the applicant, as such a trustee, in relation to the charity concerned, or (b)otherwise relating to the proper administration of the charity. (2)A person (“P”) who— (a)is a charity trustee or trustee for a charity, and (b)acts in accordance with any opinion or advice given by the Commission under subsection (1) (whether to P or another trustee),is to be treated, as regards P’s responsibility for so acting, as having acted in accordance with P’s trust. (3)But subsection (2) does not apply to P if, when so acting— (a)P knows or has reasonable cause to suspect that the opinion or advice was given in ignorance of material facts, or (b)a decision of the court or the Tribunal has been obtained on the matter or proceedings are pending to obtain one. 111Power to determine membership of charity (1)The Commission may— (a)on the application of a charity, or (b)at any time after the institution of an inquiry under section 46 with respect to a charity,determine who are the members of the charity. (2)The Commission’s power under subsection (1) may also be exercised by a person appointed by the Commission for the purpose. (3)In a case within subsection (1)(b) the Commission may, if it thinks fit, so appoint the person appointed to conduct the inquiry. 112Power to order assessment of solicitor’s bill (1)The Commission may order that a solicitor’s bill of costs for business done for a charity, or for charity trustees or trustees for a charity, is to be assessed, together with the costs of the assessment— (a)by a costs officer in such division of the High Court as may be specified in the order, or (b)by the costs officer of any other court having jurisdiction to order the assessment of the bill. (2)On any order under this section for the assessment of a solicitor’s bill— (a)the assessment is to proceed, (b)the costs officer has the same powers and duties, and (c)the costs of the assessment are to be borne,as if the order had been made, on the application of the person chargeable with the bill, by the court in which the costs are assessed. (3)No order under this section for the assessment of a solicitor’s bill is to be made after payment of the bill, unless the Commission is of opinion that it contains exorbitant charges. (4)No order under this section is to be made in any case where the solicitor’s costs are not subject to assessment on an order of the High Court because of— (a)an agreement as to the solicitor’s remuneration, or (b)the lapse of time since payment of the bill. Legal proceedings relating to charities 113Petitions for winding up charities under Insolvency Act (1)This section applies where a charity may be wound up by the High Court under the Insolvency Act 1986. (2)A petition for the charity to be wound up under the 1986 Act by any court in England or Wales having jurisdiction may be presented by the Attorney General, as well as by any person authorised by that Act. (3)Such a petition may also be presented by the Commission if, at any time after it has instituted an inquiry under section 46 with respect to the charity, it is satisfied either as mentioned in section 76(1)(a) (misconduct or mismanagement etc.) or as mentioned in section 76(1)(b) (need to protect property etc.). (4)The power exercisable by the Commission by virtue of this section is exercisable— (a)by the Commission of its own motion, but (b)only with the agreement of the Attorney General on each occasion. 114Proceedings by the Commission (1)Subject to subsection (2), the Commission may exercise the same powers with respect to— (a)the taking of legal proceedings with reference to charities or the property or affairs of charities, or (b)the compromise of claims with a view to avoiding or ending such proceedings,as are exercisable by the Attorney General acting ex officio. (2)Subsection (1) does not apply to the power of the Attorney General under section 113(2) to present a petition for the winding up of a charity. (3)The practice and procedure to be followed in relation to any proceedings taken by the Commission under subsection (1) are the same in all respects (and in particular as regards costs) as if they were proceedings taken by the Attorney General acting ex officio. (4)No rule of law or practice is to be treated as requiring the Attorney General to be a party to any such proceedings. (5)The powers exercisable by the Commission by virtue of this section are exercisable— (a)by the Commission of its own motion, but (b)only with the agreement of the Attorney General on each occasion. 115Proceedings by other persons (1)Charity proceedings may be taken with reference to a charity by— (a)the charity, (b)any of the charity trustees, (c)any person interested in the charity, or (d)if it is a local charity, any two or more inhabitants of the area of the charity,but not by any other person. (2)Subject to the following provisions of this section, no charity proceedings relating to a charity are to be entertained or proceeded with in any court unless the taking of the proceedings is authorised by order of the Commission. (3)The Commission must not, without special reasons, authorise the taking of charity proceedings where in its opinion the case can be dealt with by the Commission under the powers of this Act other than those conferred by section 114. (4)This section does not require an order for the taking of proceedings— (a)in a pending cause or matter, or (b)for the bringing of any appeal. (5)Where subsections (1) to (4) require the taking of charity proceedings to be authorised by an order of the Commission, the proceedings may nevertheless be entertained or proceeded with if, after the order had been applied for and refused, leave to take the proceedings was obtained from one of the judges of the High Court attached to the Chancery Division. (6)Nothing in subsections (1) to (5) applies— (a)to the taking of proceedings by the Attorney General, with or without a relator, or (b)to the taking of proceedings by the Commission in accordance with section 114. (7)If it appears to the Commission, on an application for an order under this section or otherwise, that it is desirable— (a)for legal proceedings to be taken with reference to any charity or its property or affairs, and (b)for the proceedings to be taken by the Attorney General,the Commission must so inform the Attorney General and send the Attorney General such statements and particulars as the Commission thinks necessary to explain the matter. (8)In this section “charity proceedings” means proceedings in any court in England or Wales brought under— (a)the court’s jurisdiction with respect to charities, or (b)the court’s jurisdiction with respect to trusts in relation to the administration of a trust for charitable purposes. Supplementary 116Effect of provisions relating to vesting or transfer of property No vesting or transfer of any property in pursuance of any provision of this Part operates as a breach of a covenant or condition against alienation or gives rise to a forfeiture. Part 7 Charity land Restrictions on dispositions of land in England and Wales 117Restrictions on dispositions of land: general (1)No land held by or in trust for a charity is to be conveyed, transferred, leased or otherwise disposed of without an order of— (a)the court, or (b)the Commission.But this is subject to the following provisions of this section, sections 119 to 121 (further provisions about restrictions on dispositions) and section 127 (release of charity rentcharges). (2)Subsection (1) does not apply to a disposition of such land if— (a)the disposition is made to a person who is not— (i)a connected person (as defined in section 118), or (ii)a trustee for, or nominee of, a connected person, and (b)the requirements of— (i)section 119(1) (dispositions other than certain leases), or (ii)section 120(2) (leases which are for 7 years or less etc.),have been complied with in relation to it. (3)The restrictions on disposition imposed by this section and sections 119 to 121 apply regardless of anything in the trusts of a charity; but nothing in this section or sections 119 to 121 applies to— (a)any disposition for which general or special authority is expressly given (without the authority being made subject to the sanction of an order of the court) by— (i)any statutory provision contained in or having effect under an Act, or (ii)any scheme legally established, (b)any disposition for which the authorisation or consent of the Secretary of State is required under the Universities and College Estates Act 1925, (c)any disposition of land held by or in trust for a charity which— (i)is made to another charity otherwise than for the best price that can reasonably be obtained, and (ii)is authorised to be so made by the trusts of the first-mentioned charity, or (d)the granting, by or on behalf of a charity and in accordance with its trusts, of a lease to any beneficiary under those trusts where the lease— (i)is granted otherwise than for the best rent that can reasonably be obtained, and (ii)is intended to enable the demised premises to be occupied for the purposes, or any particular purposes, of the charity. (4)Nothing in this section or sections 119 to 121 applies to— (a)any disposition of land held by or in trust for an exempt charity, (b)any disposition of land by way of mortgage or other security, or (c)any disposition of an advowson. 118Meaning of “connected person” in s.117(2) (1)In section 117(2) “connected person”, in relation to a charity, means any person who falls within subsection (2)— (a)at the time of the disposition in question, or (b)at the time of any contract for the disposition in question. (2)The persons are— (a)a charity trustee or trustee for the charity, (b)a person who is the donor of any land to the charity (whether the gift was made on or after the establishment of the charity), (c)a child, parent, grandchild, grandparent, brother or sister of any such trustee or donor, (d)an officer, agent or employee of the charity, (e)the spouse or civil partner of any person falling within any of paragraphs (a) to (d), (f)a person carrying on business in partnership with any person falling within any of paragraphs (a) to (e), (g)an institution which is controlled— (i)by any person falling within any of paragraphs (a) to (f), or (ii)by two or more such persons taken together, or (h)a body corporate in which— (i)any connected person falling within any of paragraphs (a) to (g) has a substantial interest, or (ii)two or more such persons, taken together, have a substantial interest. (3)Sections 350 to 352 (meaning of child, spouse and civil partner, controlled institution and substantial interest) apply for the purposes of subsection (2). 119Requirements for dispositions other than certain leases (1)The requirements mentioned in section 117(2)(b) are that the charity trustees must, before entering into an agreement for the sale, or (as the case may be) for a lease or other disposition, of the land— (a)obtain and consider a written report on the proposed disposition from a qualified surveyor instructed by the trustees and acting exclusively for the charity, (b)advertise the proposed disposition for such period and in such manner as is advised in the surveyor’s report (unless it advises that it would not be in the best interests of the charity to advertise the proposed disposition), and (c)decide that they are satisfied, having considered the surveyor’s report, that the terms on which the disposition is proposed to be made are the best that can reasonably be obtained for the charity. (2)Subsection (1) does not apply where the proposed disposition is the granting of such a lease as is mentioned in section 120(1). (3)For the purposes of subsection (1) a qualified surveyor is a person who— (a)is a fellow or professional associate of the Royal Institution of Chartered Surveyors or satisfies such other requirement or requirements as may be prescribed by regulations made by the Minister, and (b)is reasonably believed by the charity trustees to have ability in, and experience of, the valuation of land of the particular kind, and in the particular area, in question. (4)Any report prepared for the purposes of subsection (1) must contain such information, and deal with such matters, as may be prescribed by regulations made by the Minister. 120Requirements for leases which are for 7 years or less etc. (1)Subsection (2) applies where the proposed disposition is the granting of a lease for a term ending not more than 7 years after it is granted (other than one granted wholly or partly in consideration of a fine). (2)The requirements mentioned in section 117(2)(b) are that the charity trustees must, before entering into an agreement for the lease— (a)obtain and consider the advice on the proposed disposition of a person who is reasonably believed by the trustees to have the requisite ability and practical experience to provide them with competent advice on the proposed disposition, and (b)decide that they are satisfied, having considered that person’s advice, that the terms on which the disposition is proposed to be made are the best that can reasonably be obtained for the charity. 121Additional restrictions where land held for stipulated purposes (1)Subsection (2) applies where— (a)any land is held by or in trust for a charity, and (b)the trusts on which it is so held stipulate that it is to be used for the purposes, or any particular purposes, of the charity. (2)The land must not be conveyed, transferred, leased or otherwise disposed of unless the charity trustees have before the relevant time— (a)given public notice of the proposed disposition, inviting representations to be made to them within a time specified in the notice, which must be not less than one month from the date of the notice, and (b)taken into consideration any representations made to them within that time about the proposed disposition. (3)Subsection (2)— (a)is subject to subsections (5) and (6), and (b)does not affect the operation of sections 117 to 120. (4)In subsection (2) “the relevant time” means— (a)where the charity trustees enter into an agreement for the sale, or (as the case may be) for the lease or other disposition, the time when they enter into that agreement, and (b)in any other case, the time of the disposition. (5)Subsection (2) does not apply to any such disposition of land as is there mentioned if— (a)the disposition is to be effected with a view to acquiring by way of replacement other property which is to be held on the trusts referred to in subsection (1)(b), or (b)the disposition is the granting of a lease for a term ending not more than 2 years after it is granted (other than one granted wholly or partly in consideration of a fine). (6)The Commission may, if the condition in subsection (7) is met, direct— (a)that subsection (2) is not to apply to dispositions of land held by or in trust for a charity or class of charities (whether generally or only in the case of a specified class of dispositions or land, or otherwise as may be provided in the direction), or (b)that subsection (2) is not to apply to a particular disposition of land held by or in trust for a charity. (7)The condition is that the Commission, on an application made to it in writing by or behalf of the charity or charities in question, is satisfied that it would be in the interests of the charity or charities for the Commission to give the direction. 122Instruments concerning dispositions of land: required statements, etc. (1)Subsection (2) applies to any of the following instruments— (a)a contract for the sale, or for a lease or other disposition, of land which is held by or in trust for a charity, and (b)a conveyance, transfer, lease or other instrument effecting a disposition of such land. (2)An instrument to which this subsection applies must state— (a)that the land is held by or in trust for a charity, (b)whether the charity is an exempt charity and whether the disposition is one falling within section 117(3)(a), (b), (c) or (d), and (c)if it is not an exempt charity and the disposition is not one falling within section 117(3)(a), (b), (c) or (d), that the land is land to which the restrictions on disposition imposed by sections 117 to 121 apply. (3)Where any land held by or in trust for a charity is conveyed, transferred, leased or otherwise disposed of by a disposition to which section 117(1) or (2) applies, the charity trustees must certify in the instrument by which the disposition is effected— (a)(where section 117(1) applies) that the disposition has been sanctioned by an order of the court or of the Commission (as the case may be), or (b)(where section 117(2) applies) that the charity trustees have power under the trusts of the charity to effect the disposition and have complied with sections 117 to 121 so far as applicable to it. (4)Where subsection (3) has been complied with in relation to any disposition of land, then in favour of a person who (whether under the disposition or afterwards) acquires an interest in the land for money or money’s worth, it is conclusively presumed that the facts were as stated in the certificate. (5)Subsection (6) applies where— (a)any land held by or in trust for a charity is conveyed, transferred, leased or otherwise disposed of by a disposition to which section 117(1) or (2) applies, but (b)subsection (3) has not been complied with in relation to the disposition. (6)In favour of a person who (whether under the disposition or afterwards) in good faith acquires an interest in the land for money or money’s worth, the disposition is valid whether or not— (a)the disposition has been sanctioned by an order of the court or of the Commission, or (b)the charity trustees have power under the trusts of the charity to effect the disposition and have complied with sections 117 to 121 so far as applicable to it. (7)Subsection (8) applies to any of the following instruments— (a)a contract for the sale, or for a lease or other disposition, of land which will, as a result of the disposition, be held by or in trust for a charity, and (b)a conveyance, transfer, lease or other instrument effecting a disposition of such land. (8)An instrument to which this subsection applies must state— (a)that the land will, as a result of the disposition, be held by or in trust for a charity, (b)whether the charity is an exempt charity, and (c)if it is not an exempt charity, that the restrictions on disposition imposed by sections 117 to 121 will apply to the land (subject to section 117(3)). (9)In this section and section 123 references to a disposition of land do not include references to— (a)a disposition of land by way of mortgage or other security, (b)any disposition of an advowson, or (c)any release of a rentcharge falling within section 127(1). 123Charity land and land registration (1)Where the disposition to be effected by any such instrument as is mentioned in section 122(1)(b) or (7)(b) will be— (a)a registrable disposition, or (b)a disposition which triggers the requirement of registration,the statement which, by virtue of section 122(2) or (8), is to be contained in the instrument must be in such form as may be prescribed by land registration rules. (2)Where the registrar approves an application for registration of— (a)a disposition of registered land, or (b)a person’s title under a disposition of unregistered land,and the instrument effecting the disposition contains a statement complying with section 122(8) and subsection (1), the registrar must enter in the register a restriction reflecting the limitation under sections 117 to 121 on subsequent disposal. (3)Where— (a)any such restriction is entered in the register in respect of any land, and (b)the charity by or in trust for which the land is held becomes an exempt charity,the charity trustees must apply to the registrar for the removal of the entry. (4)On receiving any application duly made under subsection (3) the registrar must remove the entry. (5)Where— (a)any registered land is held by or in trust for an exempt charity and the charity ceases to be an exempt charity, or (b)any registered land becomes, as a result of a declaration of trust by the registered proprietor, land held in trust for a charity (other than an exempt charity),the charity trustees must apply to the registrar for such a restriction as is mentioned in subsection (2) to be entered in the register in respect of the land. (6)On receiving any application duly made under subsection (5) the registrar must enter such a restriction in the register in respect of the land. Restrictions on mortgages of land in England and Wales 124Restrictions on mortgages (1)Subject to subsection (2), no mortgage of land held by or in trust for a charity is to be granted without an order of— (a)the court, or (b)the Commission. (2)Subsection (1) does not apply to a mortgage of any such land if the charity trustees have, before executing the mortgage, obtained and considered proper advice, given to them in writing, on the relevant matters or matter mentioned in subsection (3) or (4) (as the case may be). (3)In the case of a mortgage to secure the repayment of a proposed loan or grant, the relevant matters are— (a)whether the loan or grant is necessary in order for the charity trustees to be able to pursue the particular course of action in connection with which they are seeking the loan or grant, (b)whether the terms of the loan or grant are reasonable having regard to the status of the charity as the prospective recipient of the loan or grant, and (c)the ability of the charity to repay on those terms the sum proposed to be paid by way of loan or grant. (4)In the case of a mortgage to secure the discharge of any other proposed obligation, the relevant matter is whether it is reasonable for the charity trustees to undertake to discharge the obligation, having regard to the charity’s purposes. (5)Subsection (3) or (as the case may be) subsection (4) applies in relation to such a mortgage as is mentioned in that subsection whether the mortgage— (a)would only have effect to secure the repayment of the proposed loan or grant or the discharge of the proposed obligation, or (b)would also have effect to secure the repayment of sums paid by way of loan or grant, or the discharge of other obligations undertaken, after the date of its execution. (6)Subsection (7) applies where— (a)the charity trustees of a charity have executed a mortgage of land held by or in trust for a charity in accordance with subsection (2), and (b)the mortgage has effect to secure the repayment of sums paid by way of loan or grant, or the discharge of other obligations undertaken, after the date of its execution. (7)In such a case, the charity trustees must not after that date enter into any transaction involving— (a)the payment of any such sums, or (b)the undertaking of any such obligations,unless they have, before entering into the transaction, obtained and considered proper advice, given to them in writing, on the matters or matter mentioned in subsection (3)(a) to (c) or (4) (as the case may be). (8)For the purposes of this section proper advice is the advice of a person— (a)who is reasonably believed by the charity trustees to be qualified by ability in and practical experience of financial matters, and (b)who has no financial interest in relation to the loan, grant or other transaction in connection with which the advice is given;and such advice may constitute proper advice for those purposes even though the person giving it does so in the course of employment as an officer or employee of the charity or of the charity trustees. (9)This section applies regardless of anything in the trusts of a charity; but nothing in this section applies to any mortgage— (a)for which general or special authority is given as mentioned in section 117(3)(a), or (b)for which the authorisation or consent of the Secretary of State is required as mentioned in section 117(3)(b). (10)Nothing in this section applies to an exempt charity. 125Mortgages: required statements, etc. (1)Any mortgage of land held by or in trust for a charity must state— (a)that the land is held by or in trust for a charity, (b)whether the charity is an exempt charity and whether the mortgage is one falling within section 124(9), and (c)if it is not an exempt charity and the mortgage is not one falling within section 124(9), that the mortgage is one to which the restrictions imposed by section 124 apply. (2)Where section 124(1) or (2) applies to any mortgage of land held by or in trust for a charity, the charity trustees must certify in the mortgage— (a)(where section 124(1) applies) that the mortgage has been sanctioned by an order of the court or of the Commission (as the case may be), or (b)(where section 124(2) applies) that the charity trustees have power under the trusts of the charity to grant the mortgage, and have obtained and considered such advice as is mentioned in section 124(2). (3)Where subsection (2) has been complied with in relation to any mortgage, then in favour of a person who (whether under the mortgage or afterwards) acquires an interest in the land in question for money or money’s worth, it is conclusively presumed that the facts were as stated in the certificate. (4)Subsection (5) applies where— (a)section 124(1) or (2) applies to any mortgage of land held by or in trust for a charity, but (b)subsection (2) has not been complied with in relation to the mortgage. (5)In favour of a person who (whether under the mortgage or afterwards) in good faith acquires an interest in the land for money or money’s worth, the mortgage is valid whether or not— (a)the mortgage has been sanctioned by an order of the court or of the Commission, or (b)the charity trustees have power under the trusts of the charity to grant the mortgage and have obtained and considered such advice as is mentioned in section 124(2). (6)Where section 124(7) applies to any mortgage of land held by or in trust for a charity, the charity trustees must certify in relation to any transaction falling within section 124(7) that they have obtained and considered such advice as is mentioned in section 124(7). (7)Where subsection (6) has been complied with in relation to any transaction, then, in favour of a person who (whether under the mortgage or afterwards) has acquired or acquires an interest in the land for money or money’s worth, it is conclusively presumed that the facts were as stated in the certificate. 126Mortgages of charity land and land registration (1)Where the mortgage referred to in section 125(1) will be a registrable disposition, the statement required by section 125(1) must be in such form as may be prescribed by land registration rules. (2)Where any such mortgage will be one to which section 4(1)(g) of the Land Registration Act 2002 applies— (a)the statement required by section 125(1) must be in such form as may be prescribed by land registration rules, and (b)if the charity is not an exempt charity, the mortgage must also contain a statement, in such form as may be prescribed by land registration rules, that the restrictions on disposition imposed by sections 117 to 121 apply to the land (subject to section 117(3)). (3)Where— (a)the registrar approves an application for registration of a person’s title to land in connection with such a mortgage as is mentioned in subsection (2), (b)the mortgage contains statements complying with section 125(1) and subsection (2), and (c)the charity is not an exempt charity,the registrar must enter in the register a restriction reflecting the limitation under sections 117 to 121 on subsequent disposal. (4)Subsections (3) and (4) of section 123 (removal of entry) apply in relation to any restriction entered under subsection (3) as they apply in relation to any restriction entered under section 123(2). Release of charity rentcharges 127Release of charity rentcharges (1)Section 117(1) does not apply to the release by a charity of a rentcharge which it is entitled to receive if the release is given in consideration of the payment of an amount which is not less than 10 times the annual amount of the rentcharge. (2)Where a charity which is entitled to receive a rentcharge releases it in consideration of the payment of an amount not exceeding £1,000, any costs incurred by the charity in connection with proving its title to the rentcharge are recoverable by the charity from the person or persons in whose favour the rentcharge is being released. (3)Neither section 117(1) nor subsection (2) of this section applies where a rentcharge which a charity is entitled to receive is redeemed under sections 8 to 10 of the Rentcharges Act 1977. 128Power to alter sum specified in s.127(2) The Minister may by order amend section 127(2) by substituting a different sum for the sum for the time being specified there. Interpretation 129Interpretation (1)In sections 117 to 126 “land” means land in England and Wales. (2)In sections 124 to 126 “mortgage” includes a charge. (3)Sections 123 and 126 are to be construed as one with the Land Registration Act 2002. Part 8 Charity accounts, reports and returns CHAPTER 1 Individual accounts 130Accounting records (1)The charity trustees of a charity must ensure that accounting records are kept in respect of the charity which are sufficient to show and explain all the charity’s transactions, and which are such as to— (a)disclose at any time, with reasonable accuracy, the financial position of the charity at that time, and (b)enable the trustees to ensure that, where any statements of accounts are prepared by them under section 132(1), those statements of accounts comply with the requirements of regulations under section 132(1). (2)The accounting records must in particular contain— (a)entries showing from day to day all sums of money received and expended by the charity, and the matters in respect of which the receipt and expenditure takes place, and (b)a record of the assets and liabilities of the charity. 131Preservation of accounting records (1)The charity trustees of a charity must preserve any accounting records made for the purposes of section 130 in respect of the charity for at least 6 years from the end of the financial year of the charity in which they are made. (2)Subsection (3) applies if a charity ceases to exist within the period of 6 years mentioned in subsection (1) as it applies to any accounting records. (3)The obligation to preserve the accounting records in accordance with subsection (1) must continue to be discharged by the last charity trustees of the charity, unless the Commission consents in writing to the records being destroyed or otherwise disposed of. 132Preparation of statement of accounts (1)The charity trustees of a charity must (subject to section 133) prepare in respect of each financial year of the charity a statement of accounts complying with such requirements as to its form and contents as may be prescribed by regulations made by the Minister. (2)Regulations under subsection (1) may in particular make provision— (a)for any such statement to be prepared in accordance with such methods and principles as are specified or referred to in the regulations; (b)as to any information to be provided by way of notes to the accounts. (3)Regulations under subsection (1) may also make provision for determining the financial years of a charity for the purposes of this Act and any regulations made under it. (4)But regulations under subsection (1) may not impose on the charity trustees of a charity that is a charitable trust created by any person (“the settlor”) any requirement to disclose, in any statement of accounts prepared by them under subsection (1)— (a)the identities of recipients of grants made out of the funds of the charity, or (b)the amounts of any individual grants so made,if the disclosure would fall to be made at a time when the settlor or any spouse or civil partner of the settlor was still alive. 133Account and statement an option for lower-income charities If a charity’s gross income in any financial year does not exceed £250,000, the charity trustees may, in respect of that year, elect to prepare— (a)a receipts and payments account, and (b)a statement of assets and liabilities,instead of a statement of accounts under section 132(1). 134Preservation of statement of accounts or account and statement (1)The charity trustees of a charity must preserve— (a)any statement of accounts prepared by them under section 132(1), or (b)any account and statement prepared by them under section 133,for at least 6 years from the end of the financial year to which any such statement relates or (as the case may be) to which any such account and statement relate. (2)Subsection (3) applies if a charity ceases to exist within the period of 6 years mentioned in subsection (1) as it applies to any statement of accounts or account and statement. (3)The obligation to preserve the statement or account and statement in accordance with subsection (1) must continue to be discharged by the last charity trustees of the charity, unless the Commission consents in writing to the statement or account and statement being destroyed or otherwise disposed of. 135Charitable companies Nothing in sections 130 to 134 (preparation and preservation of individual accounts) applies to a charitable company. 136Exempt charities (1)Nothing in sections 130 to 134 (preparation and preservation of individual accounts) applies to an exempt charity. (2)But the charity trustees of an exempt charity— (a)must keep proper books of account with respect to the affairs of the charity, and (b)if not required by or under the authority of any other Act to prepare periodical statements of account must prepare consecutive statements of account consisting on each occasion of— (i)an income and expenditure account relating to a period of not more than 15 months, and (ii)a balance sheet relating to the end of that period. (3)The books of accounts and statements of account relating to an exempt charity must be preserved for a period of at least 6 years unless— (a)the charity ceases to exist, and (b)the Commission consents in writing to their being destroyed or otherwise disposed of. CHAPTER 2 Group accounts 137Accounting records (1)The charity trustees of a parent charity or of any charity which is a subsidiary undertaking must ensure that the accounting records kept in respect of the charity under— (a)section 130(1) (individual accounts: accounting records), or (b)(as the case may be) section 386 of the Companies Act 2006 (duty to keep accounting records),are such as to enable the charity trustees of the parent charity to ensure that, where any group accounts are prepared by them under section 138(2), those accounts comply with the requirements of regulations under section 142. (2)The duty in subsection (1) is in addition to the duty to ensure that the accounting records comply with the requirements of— (a)section 130(1), or (b)section 386 of the Companies Act 2006. (3)Subsection (4) applies if a parent charity has a subsidiary undertaking in relation to which the requirements of— (a)section 130(1), or (b)section 386 of the Companies Act 2006,do not apply. (4)The charity trustees of the parent charity must take reasonable steps to secure that the undertaking keeps such accounting records as to enable the trustees to ensure that, where any group accounts are prepared by them under section 138(2), those accounts comply with the requirements of regulations under section 142. 138Preparation of group accounts (1)This section applies in relation to a financial year of a charity if— (a)the charity is a parent charity at the end of that year, and (b)(where it is a company) it is not required to prepare consolidated accounts for that year under section 399 of the Companies Act 2006 (duty to prepare group accounts), whether or not such accounts are in fact prepared. (2)The charity trustees of the parent charity must prepare group accounts in respect of that year. (3)If the requirement in subsection (2) applies to the charity trustees of a parent charity (other than a parent charity which is a company) in relation to a financial year— (a)that requirement so applies in addition to the requirement in section 132(1) (statement of accounts), and (b)the option of preparing the documents mentioned in section 133 (account and statement) is not available in relation to that year (whatever the amount of the charity’s gross income for that year). (4)If— (a)the requirement in subsection (2) applies to the charity trustees of a parent charity in relation to a financial year, and (b)the charity is a company,that requirement so applies in addition to the requirement in section 394 of the Companies Act 2006 (duty to prepare individual accounts). (5)Subsection (2) is subject to section 139. 139Exceptions to requirement to prepare group accounts (1)The requirement in section 138(2) does not apply to the charity trustees of a parent charity in relation to a financial year if at the end of that year it is itself a subsidiary undertaking in relation to another charity. (2)The requirement in section 138(2) does not apply to the charity trustees of a parent charity in relation to a financial year if the aggregate gross income of the group for that year does not exceed such sum as is specified in regulations made by the Minister. (3)Regulations made by the Minister may prescribe circumstances in which a subsidiary undertaking may or (as the case may be) must be excluded from group accounts required to be prepared under section 138(2) for a financial year. (4)Where, by virtue of such regulations, each of the subsidiary undertakings which are members of a group is— (a)permitted to be excluded from any such group accounts for a financial year, or (b)required to be so excluded,the requirement in section 138(2) does not apply to the charity trustees of the parent charity in relation to that year. 140Preservation of group accounts (1)The charity trustees of a charity must preserve any group accounts prepared by them under section 138(2) for at least 6 years from the end of the financial year to which the accounts relate. (2)Subsection (3) applies if a charity ceases to exist within the period of 6 years mentioned in subsection (1) as it applies to any group accounts. (3)The obligation to preserve the accounts in accordance with subsection (1) must continue to be discharged by the last charity trustees of the charity, unless the Commission consents in writing to the accounts being destroyed or otherwise disposed of. 141“Parent charity”, “subsidiary undertaking” and “group” (1)This section applies for the purposes of this Part. (2)A charity is a parent charity if it is (or is to be treated as) a parent undertaking in relation to one or more other undertakings in accordance with the provisions of section 1162 of, and Schedule 7 to, the Companies Act 2006. (3)Each undertaking in relation to which a parent charity is (or is to be treated as) a parent undertaking in accordance with those provisions is a subsidiary undertaking in relation to the parent charity. (4)But subsection (3) does not have the result that any of the following is a subsidiary undertaking— (a)any special trusts of a charity, (b)any institution which, by virtue of a direction under section 12(1), is to be treated as forming part of a charity for the purposes of this Part, or (c)any charity to which a direction under section 12(2) applies for the purposes of this Part. (5)“The group”, in relation to a parent charity, means that charity and its subsidiary undertaking or undertakings, and any reference to the members of the group is to be read accordingly. (6)For the purposes of this section and the operation for those purposes of section 1162 of, and Schedule 7 to, the Companies Act 2006 “undertaking” means— (a)an undertaking as defined by section 1161(1) of the 2006 Act, or (b)a charity which is not an undertaking as so defined. 142“Group accounts” (1)For the purposes of this Part, “group accounts” means consolidated accounts— (a)relating to the group, and (b)complying with such requirements as to their form and contents as may be prescribed by regulations made by the Minister. (2)Regulations under subsection (1) may in particular make provision— (a)for any such accounts to be prepared in accordance with such methods and principles as are specified or referred to in the regulations; (b)for dealing with cases where the financial years of the members of the group do not all coincide; (c)as to any information to be provided by way of notes to the accounts. (3)Regulations under subsection (1) may also make provision— (a)for determining the financial years of subsidiary undertakings for the purposes of this Part; (b)for imposing on the charity trustees of a parent charity requirements with respect to securing that such financial years coincide with that of the charity. 143Exempt charities Nothing in sections 137 to 142 (preparation and preservation of group accounts) applies to an exempt charity. CHAPTER 3 Audit or examination of accounts Audit or examination of individual accounts 144Audit of accounts of larger charities (1)Subsection (2) applies to a financial year of a charity if— (a)the charity’s gross income in that year exceeds £500,000, or (b)the charity’s gross income in that year exceeds the accounts threshold and at the end of the year the aggregate value of its assets (before deduction of liabilities) exceeds £3.26 million.“The accounts threshold” means the sum for the time being specified in section 133 (account and statement an option for lower-income charities). (2)If this subsection applies to a financial year of a charity, the accounts of the charity for that year must be audited by a person who— (a)is eligible for appointment as a statutory auditor under Part 42 of the Companies Act 2006, or (b)is a member of a body for the time being specified in regulations under section 154 and is under the rules of that body eligible for appointment as auditor of the charity. 145Examination of accounts an option for lower-income charities (1)If section 144(2) does not apply to a financial year of a charity but its gross income in that year exceeds £25,000, the accounts of the charity for that year must, at the election of the charity trustees, be— (a)examined by an independent examiner, that is, an independent person who is reasonably believed by the trustees to have the requisite ability and practical experience to carry out a competent examination of the accounts, or (b)audited by a person within section 144(2)(a) or (b). (2)Subsection (1) is subject to— (a)subsection (3), and (b)any order under section 146(1). (3)If subsection (1) applies to the accounts of a charity for a year and the charity’s gross income in that year exceeds £250,000, a person qualifies as an independent examiner for the purposes of subsection (1)(a) if (and only if) the person is independent and— (a)a member of one of the bodies listed in subsection (4), or (b)a Fellow of the Association of Charity Independent Examiners. (4)The bodies referred to in subsection (3)(a) are— (a)the Institute of Chartered Accountants in England and Wales; (b)the Institute of Chartered Accountants of Scotland; (c)the Institute of Chartered Accountants in Ireland; (d)the Association of Chartered Certified Accountants; (e)the Association of Authorised Public Accountants; (f)the Association of Accounting Technicians; (g)the Association of International Accountants; (h)the Chartered Institute of Management Accountants; (i)the Institute of Chartered Secretaries and Administrators; (j)the Chartered Institute of Public Finance and Accountancy. (5)The Commission may— (a)give guidance to charity trustees in connection with the selection of a person for appointment as an independent examiner; (b)give such directions as it thinks appropriate with respect to the carrying out of an examination in pursuance of subsection (1)(a);and any such guidance or directions may either be of general application or apply to a particular charity only. (6)The Minister may by order— (a)amend subsection (3) by adding or removing a description of person to or from the list in that subsection or by varying any entry for the time being included in that list; (b)amend subsection (4) by adding or removing a body to or from the list in that subsection or by varying any entry for the time being included in that list. 146Commission’s powers to order audit (1)The Commission may by order require the accounts of a charity for a financial year to be audited by a person within section 144(2)(a) or (b) if it appears to the Commission that— (a)section 144(2), or (as the case may be) section 145(1), has not been complied with in relation to that year within 10 months from the end of that year, or (b)although section 144(2) does not apply to that year, it would nevertheless be desirable for the accounts of the charity for that year to be audited by a person within section 144(2)(a) or (b). (2)If the Commission makes an order under subsection (1) with respect to a charity, the auditor must be a person appointed by the Commission unless— (a)the order is made by virtue of subsection (1)(b), and (b)the charity trustees themselves appoint an auditor in accordance with the order. (3)The expenses of any audit carried out by an auditor appointed by the Commission under subsection (2), including the auditor’s remuneration, are recoverable by the Commission— (a)from the charity trustees of the charity concerned, who are personally liable, jointly and severally, for those expenses, or (b)to the extent that it appears to the Commission not to be practical to seek recovery of those expenses in accordance with paragraph (a), from the funds of the charity. 147Accounts required to be audited under Companies Act (1)Nothing in sections 144 to 146 applies in relation to the accounts of a charitable company for a financial year if those accounts are required to be audited in accordance with Part 16 of the Companies Act 2006 (“Part 16 accounts”). (2)In the case of a charitable company, the Commission may by order require that the condition and Part 16 accounts of the company for such period as the Commission thinks fit are to be investigated and audited by an auditor who— (a)is eligible for appointment as a statutory auditor under Part 42 of the Companies Act 2006, and (b)is appointed by the Commission. (3)An auditor acting under subsection (2)— (a)has a right of access to all books, accounts and documents relating to the company which are in the possession or control of the charity trustees or to which the charity trustees have access; (b)is entitled to require from any charity trustee, past or present, and from any past or present officer or employee of the company such information and explanation as the auditor thinks necessary for the performance of the auditor’s duties; (c)must at the conclusion or during the progress of the audit make such reports to the Commission about the audit or about the accounts or affairs of the company as the auditor thinks the case requires, and must send a copy of any such report to the charity trustees. (4)The expenses of any audit under subsection (2) including the remuneration of the auditor, are to be paid by the Commission. (5)If any person fails to afford an auditor any facility to which the auditor is entitled under subsection (3), the Commission may by order give to that person or to the charity trustees for the time being such directions as the Commission thinks appropriate for securing that the default is made good. 148NHS charities: general Nothing in sections 144 to 146 applies in relation to a financial year of a charity where, at any time in the year, it is— (a)an English NHS charity (as defined in section 149), or (b)a Welsh NHS charity (as defined in section 150). 149Audit or examination of English NHS charity accounts (1)This section applies in relation to a financial year of a charity where, at any time in the year, it is an English NHS charity. (2)If section 144(1)(a) or (b) is satisfied in relation to that financial year of the charity, the accounts of the charity for that year must be audited by a person appointed by the Audit Commission. (3)In any other case, the accounts of the charity for that financial year must, at the election of the Audit Commission, be— (a)audited by a person appointed by the Audit Commission, or (b)examined by a person so appointed. (4)Section 3 of the Audit Commission Act 1998 applies in relation to any appointment under subsection (2) or (3)(a). (5)The Charity Commission may give such directions as it thinks appropriate with respect to the carrying out of an examination in pursuance of subsection (3)(b); and any such directions may either be of general application or apply to a particular charity only. (6)The Comptroller and Auditor General may at any time examine and inspect— (a)the accounts of the charity for the financial year, (b)any records relating to those accounts, and (c)any report of a person appointed under subsection (2) or (3) to audit or examine those accounts. (7)In this section, “English NHS charity” means a charitable trust, the trustees of which are— (a)a Strategic Health Authority, (b)a Primary Care Trust, (c)a National Health Service trust all or most of whose hospitals, establishments and facilities are situated in England, (d)trustees appointed in pursuance of paragraph 10 of Schedule 4 to the National Health Service Act 2006 for a National Health Service trust falling within paragraph (c), (e)special trustees appointed in pursuance of section 29(1) of the National Health Service Reorganisation Act 1973, section 95(1) of the National Health Service Act 1977 and section 212(1) of the National Health Service Act 2006 for such a National Health Service trust, or (f)trustees for a Primary Care Trust appointed in pursuance of paragraph 12 of Schedule 3 to the National Health Service Act 2006. (8)In this Chapter “the Audit Commission” means the Audit Commission for Local Authorities and the National Health Service in England. 150Audit or examination of Welsh NHS charity accounts (1)This section applies in relation to a financial year of a charity where, at any time in the year, it is a Welsh NHS charity. (2)If section 144(1)(a) or (b) is satisfied in relation to that financial year of the charity, the accounts of the charity for that year must be audited by the Auditor General for Wales. (3)In any other case, the accounts of the charity for that financial year must, at the election of the Auditor General for Wales, be audited or examined by the Auditor General for Wales. (4)In this section “Welsh NHS charity” means a charitable trust, the trustees of which are— (a)a Local Health Board, (b)a National Health Service trust all or most of whose hospitals, establishments and facilities are situated in Wales, (c)trustees appointed in pursuance of paragraph 10 of Schedule 3 to the National Health Service (Wales) Act 2006 for a National Health Service trust falling within paragraph (b), or (d)special trustees appointed in pursuance of section 29(1) of the National Health Service Reorganisation Act 1973, section 95(1) of the National Health Service Act 1977 and section 160(1) of the National Health Service (Wales) Act 2006 for such a National Health Service trust. (5)References in this Act to an auditor or an examiner have effect in relation to this section as references to the Auditor General for Wales acting under this section as an auditor or examiner. Audit or examination of group accounts 151Audit of accounts of larger groups (1)This section applies where group accounts are prepared for a financial year of a parent charity under section 138(2) and— (a)the aggregate gross income of the group in that year exceeds the relevant income threshold (see section 176(1)), or (b)the aggregate gross income of the group in that year exceeds the relevant income threshold and at the end of the year the aggregate value of the assets of the group (before deduction of liabilities) exceeds the relevant assets threshold (see section 176(2)). (2)This section also applies where— (a)group accounts are prepared for a financial year of a parent charity under section 138(2), and (b)the appropriate audit provision applies in relation to the parent charity’s own accounts for that year. (3)In this section “the appropriate audit provision”, in relation to a financial year of a parent charity, means— (a)(subject to paragraph (b), (c) or (d)) section 144(2) (audit of accounts of larger charities); (b)if section 149 (audit or examination of English NHS charity accounts) applies in relation to that year, section 149(2); (c)if section 150 (audit or examination of Welsh NHS charity accounts) applies in relation to that year, section 150(2); (d)if the parent charity is a company— (i)section 144(2), or (ii)(as the case may be) Part 16 of the Companies Act 2006. (4)If this section applies in relation to a financial year of a parent charity by virtue of subsection (1) or (2), the group accounts for that year must be audited— (a)(subject to paragraph (b) or (c)) by a person within section 144(2)(a) or (b); (b)if section 149 applies in relation to that year, by a person appointed by the Audit Commission; (c)if section 150 applies in relation to that year, by the Auditor General for Wales. (5)If this section applies in relation to a financial year of a parent charity by virtue of subsection (1)— (a)(subject to paragraph (b)) the appropriate audit provision applies in relation to the parent charity’s own accounts for that year (whether or not it would otherwise so apply); (b)if the parent charity is a company and its own accounts for that year are not required to be audited in accordance with Part 16 of the Companies Act 2006, section 144(2) applies in relation to those accounts (whether or not it would otherwise so apply). (6)Subsections (4) and (6) of section 149 apply in relation to any appointment under subsection (4)(b) as they apply in relation to an appointment under section 149(2). (7)References in this Act to an auditor have effect in relation to subsection (4)(c) as references to the Auditor General for Wales acting under subsection (4)(c) as an auditor. 152Examination of accounts an option for smaller groups (1)This section applies if— (a)group accounts are prepared for a financial year of a parent charity under section 138(2), and (b)section 151 (audit of accounts of larger groups) does not apply in relation to that year. (2)If— (a)this section applies in relation to a financial year of a parent charity, (b)the aggregate gross income of the group in that year exceeds the sum specified in section 145(1), and (c)subsection (6) or (7) (NHS charity: group accounts) does not apply in relation to it,the group accounts for that year must, at the election of the charity trustees of the parent charity, be examined by an independent examiner (as defined in section 145(1)(a)) or audited by a person within section 144(2)(a) or (b). (3)Subsection (2) is subject to— (a)subsection (4), and (b)any order under section 153(1). (4)If subsection (2) applies to the group accounts for a year and the aggregate gross income of the group in that year exceeds the sum specified in section 145(3), a person qualifies as an independent examiner for the purposes of subsection (2) if (and only if) the person is independent and meets the requirements of section 145(3)(a) or (b). (5)The Commission may— (a)give guidance to charity trustees of a parent charity in connection with the selection of a person for appointment as an independent examiner; (b)give such directions as it thinks appropriate with respect to the carrying out of an examination in pursuance of subsection (2);and any such guidance or directions may either be of general application or apply to a particular charity only. (6)If— (a)this section applies in relation to a financial year of a parent charity, and (b)section 149 (audit or examination of English NHS charity accounts) also applies in relation to that year,the group accounts for that year must at the election of the Audit Commission be audited by a person appointed by the Audit Commission or examined by a person so appointed. Subsections (4) to (6) of section 149 apply for the purposes of this subsection as they apply for the purposes of section 149(3). (7)If— (a)this section applies in relation to a financial year of a parent charity, and (b)section 150 (audit or examination of Welsh NHS charity accounts) also applies in relation to that year,the group accounts for that year must, at the election of the Auditor General for Wales, be audited or examined by the Auditor General for Wales. References in this Act to an auditor or an examiner have effect in relation to this subsection as references to the Auditor General for Wales acting under this subsection as an auditor or examiner. (8)If the group accounts for a financial year of a parent charity are to be examined or audited in accordance with subsection (2), section 145(1) applies in relation to the parent charity’s own accounts for that year (whether or not it would otherwise so apply). (9)Nothing in subsection (6) or (7) affects the operation of section 149(3) to (6) or (as the case may be) section 150(3) in relation to the parent charity’s own accounts for the financial year in question. 153Commission’s powers to order audit of group accounts (1)The Commission may by order require the group accounts of a parent charity for a financial year to be audited by a person within section 144(2)(a) or (b) if it appears to the Commission that— (a)section 151(4)(a), or (as the case may be) section 152(2), has not been complied with in relation to that year within 10 months from the end of that year, or (b)although section 151(4)(a) does not apply to that year, it would nevertheless be desirable for the group accounts for that year to be audited by a person within section 144(2)(a) or (b).But this subsection does not apply if section 149 or 150 (audit or examination of NHS charity accounts) applies in relation to the parent charity for that year. (2)If the Commission makes an order under subsection (1) with respect to group accounts, the auditor must be a person appointed by the Commission unless— (a)the order is made by virtue of subsection (1)(b), and (b)the charity trustees of the parent charity themselves appoint an auditor in accordance with the order. (3)The expenses of any audit carried out by an auditor appointed by the Commission under subsection (2), including the auditor’s remuneration, are recoverable by the Commission— (a)from the charity trustees of the parent charity, who are personally liable, jointly and severally, for those expenses, or (b)to the extent that it appears to the Commission not to be practical to seek recovery of those expenses in accordance with paragraph (a), from the funds of the parent charity. Regulations relating to audits and examinations 154Regulations relating to audits and examinations (1)The Minister may by regulations make provision— (a)specifying one or more bodies for the purposes of section 144(2)(b); (b)with respect to the duties of an auditor carrying out an audit of individual or group accounts, including provision with respect to the making by the auditor of a report on— (i)the statement of accounts prepared for the financial year in question under section 132(1), (ii)the account and statement so prepared under section 133, (iii)the accounts so prepared under section 394 of the Companies Act 2006 (duty to prepare individual accounts), or (iv)group accounts so prepared under section 138(2),as the case may be; (c)with respect to the making of a report in respect of an examination of individual or group accounts by the independent examiner or examiner who has carried out the examination; (d)conferring on an auditor or on an independent examiner or examiner a right of access with respect to books, documents and other records (however kept) which relate to— (i)the charity (if the audit or examination is of individual accounts), or (ii)any member of the group (if the audit or examination is of group accounts); (e)entitling an auditor or an independent examiner or examiner to require information and explanations from— (i)past or present charity trustees or trustees for, or past or present officers or employees of, the charity (if the audit or examination is of individual accounts), or (ii)past or present charity trustees or trustees for, or past or present officers or employees of, any member of the group (if the audit or examination is of group accounts); (f)enabling the Commission, in circumstances specified in the regulations, to dispense with the requirements of section 144(2), 145(1), 151(4)(a) or 152(2)— (i)in the case of a particular charity, or (ii)in the case of any particular financial year of a charity. (2)Regulations under subsection (1)(e) may in particular make, in relation to audits or examinations of group accounts, provision corresponding or similar to any provision made by section 499 or 500 of the Companies Act 2006 in connection with the rights exercisable by an auditor of a company in relation to a subsidiary undertaking of the company. (3)In this section— “audit of individual or group accounts” means an audit under— (a)section 144, 145, 146, 149 or 150 (individual accounts), or (b)section 151, 152 or 153 (group accounts); “examination of individual or group accounts” means an examination under— (a)section 145, 149 or 150 (individual accounts), or (b)section 152 (group accounts); and the references in this section and section 155 to an audit or examination of individual accounts and to an audit or examination of group accounts are to be read accordingly. 155Power of Commission to direct compliance with certain regulations If any person fails to afford an auditor or an independent examiner or examiner any facility to which the auditor, independent examiner or examiner is entitled by virtue of section 154(1)(d) or (e), the Commission, for securing that the default is made good, may by order give such directions as it thinks appropriate— (a)to that person, (b)if the audit or examination is of individual accounts, to the charity trustees for the time being of the charity concerned, or (c)if the audit or examination is of group accounts, to the charity trustees for the time being of such member of the group as the Commission thinks appropriate. Duty of auditors etc. to report matters to Commission 156Duty of auditors etc. to report matters to Commission (1)This section applies to a person (“P”) who— (a)is acting as an auditor or independent examiner appointed by or in relation to a charity under sections 144 to 146 (audit or examination of individual accounts), (b)is acting as an auditor or examiner appointed under section 149(2) or (3) (audit or examination of English NHS charity accounts), or (c)is the Auditor General for Wales acting under section 150(2) or (3) (audit or examination of Welsh NHS charity accounts). (2)If, in the course of acting in the capacity mentioned in subsection (1), P becomes aware of a matter— (a)which relates to the activities or affairs of the charity or of any connected institution or body, and (b)which P has reasonable cause to believe is likely to be of material significance for the purposes of the exercise by the Commission of its functions under the provisions mentioned in subsection (3),P must immediately make a written report on the matter to the Commission. (3)The provisions are— (a)sections 46, 47 and 50 (inquiries by Commission); (b)sections 76 and 79 to 82 (Commission’s powers to act for protection of charities). (4)If, in the course of acting in the capacity mentioned in subsection (1), P becomes aware of any matter— (a)which does not appear to P to be one that P is required to report under subsection (2), but (b)which P has reasonable cause to believe is likely to be relevant for the purposes of the exercise by the Commission of any of its functions,P may make a report on the matter to the Commission. (5)Where the duty or power under subsection (2) or (4) has arisen in relation to P when acting in the capacity mentioned in subsection (1), the duty or power is not affected by P’s subsequently ceasing to act in that capacity. (6)Where P makes a report as required or authorised by subsection (2) or (4), no duty to which P is subject is to be regarded as contravened merely because of any information or opinion contained in the report. 157Meaning of “connected institution or body” in s.156(2) (1)In section 156(2) “connected institution or body”, in relation to a charity, means— (a)an institution which is controlled by, or (b)a body corporate in which a substantial interest is held by,the charity or any one or more of the charity trustees acting as such. (2)Sections 351 and 352 (meaning of controlled institution and substantial interest) apply for the purposes of subsection (1). 158Application of duty in relation to auditors etc. of group accounts (1)Subsections (2) to (6) of section 156 (duty of auditors etc. of individual accounts to report matters to Commission) apply in relation to a person appointed to audit, or report on, any group accounts under sections 151 to 153 as they apply in relation to the person referred to in section 156 as “P”. (2)In section 156(2)(a), as it applies in accordance with subsection (1), the reference to the charity or any connected institution or body is to be read as a reference to the parent charity or any of its subsidiary undertakings. 159Application of duty in relation to Companies Act auditors (1)Sections 156(2) to (6) and 157 (duty of auditors etc. of individual accounts to report matters to Commission) apply in relation to a person acting as a Companies Act auditor of a charitable company as they apply in relation to the person referred to in section 156 as “P”, but reading any reference to P’s acting in the capacity mentioned in section 156(1) as a reference to the person acting as a Companies Act auditor. (2)In subsection (1), “Companies Act auditor” means an auditor appointed under Chapter 2 of Part 16 of the Companies Act 2006 (appointment of auditors). Exempt and excepted charities 160Exempt charities (1)Nothing in sections 144 to 155 (audit or examination of accounts) applies to an exempt charity. (2)Sections 156(2) to (6) and 157 (duty of auditors etc. of individual accounts to report matters to Commission) apply in relation to a person appointed to audit, or report on, the accounts of an exempt charity which is not a company as they apply in relation to the person referred to in section 156 as “P”, but reading— (a)any reference to P’s acting in the capacity mentioned in section 156(1) as a reference to the person acting as a person so appointed, and (b)any reference to the Commission or to any of its functions as a reference to the charity’s principal regulator or to any of the latter’s functions as principal regulator in relation to the charity. (3)Nothing in section 158 (duty of auditors etc. in relation to group accounts) applies to an exempt charity. 161Excepted charities (1)Nothing in sections 144 to 146 (audit or examination of individual accounts) applies to any charity which— (a)falls within section 30(2)(d) (whether or not it also falls within section 30(2)(b) or (c)), and (b)is not registered. (2)Except in accordance with subsections (3) and (4), nothing in— (a)section 154 or 155 (regulations relating to audits and examinations), or (b)section 156 or 157 (duty of auditors etc. to report matters to Commission),applies to a charity mentioned in subsection (1). (3)Sections 154 to 157 apply to a charity mentioned in subsection (1) which is also— (a)an English NHS charity (as defined in section 149), or (b)a Welsh NHS charity (as defined in section 150). (4)Sections 156 and 157 apply in accordance with section 160(2) to a charity mentioned in subsection (1) which is also an exempt charity. CHAPTER 4 Annual reports and returns and public access to accounts etc. Annual reports etc. 162Charity trustees to prepare annual reports (1)The charity trustees of a charity must prepare in respect of each financial year of the charity an annual report containing— (a)such a report by the trustees on the activities of the charity during that year, and (b)such other information relating to the charity or to its trustees or officers,as may be prescribed by regulations made by the Minister. (2)Regulations under subsection (1) may in particular make provision— (a)for any such report as is mentioned in subsection (1)(a) to be prepared in accordance with such principles as are specified or referred to in the regulations; (b)enabling the Commission to dispense with any requirement prescribed by virtue of subsection (1)(b)— (i)in the case of a particular charity or a particular class of charities, or (ii)in the case of a particular financial year of a charity or of any class of charities. 163Transmission of annual reports to Commission in certain cases (1)Where a charity’s gross income in any financial year exceeds £25,000, a copy of the annual report required to be prepared under section 162 in respect of that year must be transmitted to the Commission by the charity trustees within— (a)10 months from the end of that year, or (b)such longer period as the Commission may for any special reason allow in the case of that report. (2)Where a charity’s gross income in any financial year does not exceed £25,000, a copy of the annual report required to be prepared under section 162 in respect of that year must, if the Commission so requests, be transmitted to it by the charity trustees— (a)in the case of a request made before the end of 7 months from the end of the financial year to which the report relates, within 10 months from the end of that year, and (b)in the case of a request not so made, within 3 months from the date of the request,or, in either case, within such longer period as the Commission may for any special reason allow in the case of that report. (3)In the case of a charity which is constituted as a CIO— (a)the requirement imposed by subsection (1) applies whatever the charity’s gross income is, and (b)subsection (2) does not apply. 164Documents to be transmitted with annual report (1)Subject to subsection (3), any copy of an annual report transmitted to the Commission under section 163 must have attached to it— (a)a copy of the statement of accounts prepared for the financial year in question under section 132(1), or (b)(as the case may be) a copy of the account and statement so prepared under section 133,and a copy of the relevant auditor’s or examiner’s report. (2)In subsection (1), “the relevant auditor’s or examiner’s report” means— (a)if the accounts of the charity for that year have been audited under section 144, 145, 146, 149 or 150, the report made by the auditor on that statement of accounts or (as the case may be) on that account and statement; (b)if the accounts of the charity for that year have been examined under section 145, 149 or 150, the report made by the person carrying out the examination. (3)Subsections (1) and (2) do not apply to a charitable company, and any copy of an annual report transmitted by the charity trustees of a charitable company under section 163 must have attached to it— (a)a copy of the company’s annual accounts prepared for the financial year in question under Part 15 of the Companies Act 2006, and (b)a copy of the relevant auditor’s or examiner’s report. (4)In subsection (3), “the relevant auditor’s or examiner’s report” means— (a)if the accounts of the company for that year have been audited under Part 16 of the Companies Act 2006, the report made by the auditor on those accounts; (b)if the accounts of the company for that year have been audited under section 144, 145 or 146, the report made by the auditor on those accounts; (c)if the accounts of the company for that year have been examined under section 145, the report made by the person carrying out the examination. 165Preservation of annual reports etc. (1)Any copy of an annual report transmitted to the Commission under section 163, together with the documents attached to it, is to be kept by the Commission for such period as it thinks fit. (2)The charity trustees of a charity must preserve for at least 6 years from the end of the financial year to which it relates an annual report prepared by them under section 162(1) if they have not been required to transmit a copy of it to the Commission. (3)Subsection (4) applies if a charity ceases to exist within the period of 6 years mentioned in subsection (2) as it applies to any annual report. (4)The obligation to preserve the annual report in accordance with subsection (2) must continue to be discharged by the last charity trustees of the charity, unless the Commission consents in writing to the annual report being destroyed or otherwise disposed of. 166Annual reports and group accounts (1)This section applies where group accounts are prepared for a financial year of a parent charity under section 138(2). (2)The annual report prepared by the charity trustees of the parent charity in respect of that year under section 162 must include— (a)such a report by the trustees on the activities of the charity’s subsidiary undertakings during that year, and (b)such other information relating to any of those undertakings,as may be prescribed by regulations made by the Minister. (3)Regulations under subsection (2) may in particular make provision— (a)for any such report as is mentioned in subsection (2)(a) to be prepared in accordance with such principles as are specified or referred to in the regulations; (b)enabling the Commission to dispense with any requirement prescribed by virtue of subsection (2)(b) in the case of— (i)a particular subsidiary undertaking, or (ii)a particular class of subsidiary undertakings. (4)Section 163 (transmission of annual report to Commission in certain cases) applies in relation to the annual report referred to in subsection (2) as if any reference to the charity’s gross income in the financial year in question were a reference to the aggregate gross income of the group in that year. (5)When transmitted to the Commission in accordance with subsection (4), the copy of the annual report must have attached to it both a copy of the group accounts prepared for that year under section 138(2) and— (a)a copy of the report made by the auditor on those accounts, or (b)if those accounts have been examined under section 152, a copy of the report made by the person carrying out the examination. (6)The requirements in this section are in addition to those in sections 162 to 165. 167Exempt charities Nothing in sections 162 to 166 (annual reports etc.) applies to any exempt charity. 168Excepted charities (1)Nothing in sections 162 to 165 (annual reports etc.) applies to any charity which— (a)falls within section 30(2)(d) (whether or not it also falls within section 30(2)(b) or (c)), and (b)is not registered. (2)Except in accordance with subsection (5), nothing in sections 162 to 165 applies to any charity which— (a)falls within section 30(2)(b) or (c) but does not fall within section 30(2)(d), and (b)is not registered. (3)If requested to do so by the Commission, the charity trustees of any such charity as is mentioned in subsection (2) must prepare an annual report in respect of such financial year of the charity as is specified in the Commission’s request. (4)Any report prepared under subsection (3) must contain— (a)such a report by the charity trustees on the activities of the charity during the year in question, and (b)such other information relating to the charity or to its trustees or officers,as may be prescribed by regulations made under section 162(1) in relation to annual reports prepared under section 162(1). (5)The following provisions apply in relation to any report required to be prepared under subsection (3) as if it were an annual report required to be prepared under section 162(1)— (a)section 163(1) (transmission of annual report in certain cases), with the omission of the words preceding “a copy of the annual report”, and (b)sections 164 (documents to be transmitted with annual report) and 165(1) (preservation of annual reports etc.). (6)Subsections (7) and (8) apply where— (a)a charity is required to prepare an annual report in respect of a financial year by virtue of subsection (3), (b)the charity is a parent charity at the end of the year, and (c)group accounts are prepared for that year under section 138(2) by the charity trustees of the charity. (7)When transmitted to the Commission in accordance with subsection (5), the copy of the annual report must have attached to it both a copy of the group accounts and— (a)a copy of the report made by the auditor on those accounts, or (b)if those accounts have been examined under section 152, a copy of the report made by the person carrying out the examination. (8)The requirement in subsection (7) is in addition to that in subsection (4). Annual returns 169Annual returns by registered charities (1)Subject to subsection (2), every registered charity must prepare in respect of each of its financial years an annual return in such form, and containing such information, as may be prescribed by regulations made by the Commission. (2)Subsection (1) does not apply in relation to any financial year of a charity in which the charity’s gross income does not exceed £10,000 (but this subsection does not apply if the charity is constituted as a CIO). (3)Any such return must be transmitted to the Commission by the date by which the charity trustees are, by virtue of section 163(1), required to transmit to the Commission the annual report required to be prepared in respect of the financial year in question. (4)The Commission may dispense with the requirements of subsection (1)— (a)in the case of a particular charity or a particular class of charities, or (b)in the case of a particular financial year of a charity or of any class of charities. Availability of documents to public 170Public inspection of annual reports etc. kept by Commission Any document kept by the Commission in pursuance of section 165(1) (preservation of annual reports etc.) must be open to public inspection at all reasonable times— (a)during the period for which it is so kept, or (b)if the Commission so determines, during such lesser period as it may specify. 171Supply by charity trustees of copy of most recent annual report (1)This section applies if an annual report has been prepared in respect of any financial year of a charity in pursuance of section 162(1) or 168(3). (2)If the charity trustees of a charity— (a)are requested in writing by any person to provide that person with a copy of its most recent annual report, and (b)are paid by that person such reasonable fee (if any) as they may require in respect of the costs of complying with the request,they must comply with the request within the period of 2 months beginning with the date on which it is made. (3)The reference in subsection (2) to a charity’s most recent annual report is a reference to the annual report prepared in pursuance of section 162(1) or 168(3) in respect of the last financial year of the charity in respect of which an annual report has been so prepared. 172Supply by charity trustees of copy of most recent accounts (1)If the charity trustees of a charity— (a)are requested in writing by any person to provide that person with a copy of the charity’s most recent accounts, and (b)are paid by that person such reasonable fee (if any) as they may require in respect of the costs of complying with the request,they must comply with the request within the period of 2 months beginning with the date on which it is made. (2)The reference in subsection (1) to a charity’s most recent accounts is— (a)in the case of a charity other than one falling within paragraph (b) or (c), a reference to— (i)the statement of accounts prepared in pursuance of section 132(1), or (ii)the account and statement prepared in pursuance of section 133,in respect of the last financial year of the charity in respect of which a statement of accounts or account and statement has or have been so prepared; (b)in the case of a charitable company, a reference to the most recent annual accounts of the company prepared under Part 16 of the Companies Act 2006 in relation to which any of the following conditions is satisfied— (i)they have been audited, (ii)they have been examined by an independent examiner under section 145(1)(a), or (iii)they relate to a year in respect of which the company is exempt from audit under Part 16 of the Companies Act 2006 and neither section 144(2) nor section 145(1) applied to them, and (c)in the case of an exempt charity, a reference to the accounts of the charity most recently audited in pursuance of any statutory or other requirement or, if its accounts are not required to be audited, the accounts most recently prepared in respect of the charity. (3)In subsection (1), the reference to a charity’s most recent accounts includes, in relation to a charity whose charity trustees have prepared any group accounts under section 138(2), the group accounts most recently prepared by them. Offences 173Offences of failing to supply certain documents (1)If any requirement within subsection (2) is not complied with, each person who immediately before the specified date for compliance was a charity trustee of the charity is guilty of an offence. (2)A requirement is within this subsection if it is imposed— (a)by section 163 or by virtue of section 166(4) (requirements to transmit annual report to Commission), taken with sections 164, 166(5) and 168(7) (documents to be supplied with annual report), as applicable, (b)by section 169(3) (requirement to transmit annual return to Commission), (c)by section 171(2) (supply by charity trustees of copy of most recent annual report), or (d)by section 172(1) or by virtue of section 172(3) (supply by charity trustees of copy of most recent accounts);and in subsection (1) “the specified date for compliance” means the date for compliance specified in the section in question. (3)It is a defence, where a person is charged with an offence under subsection (1), to prove that the person took all reasonable steps for securing that the requirement in question would be complied with in time. (4)A person guilty of an offence under subsection (1) is liable on summary conviction to— (a)a fine not exceeding level 4 on the standard scale, and (b)for continued contravention, a daily default fine not exceeding 10% of level 4 on the standard scale for so long as the person in question remains a charity trustee of the charity. CHAPTER 5 Powers to set financial thresholds 174Powers to alter certain sums specified in this Part (1)The Minister may by order amend any provision listed in subsection (2)— (a)by substituting a different sum for the sum for the time being specified in that provision, or (b)if the provision specifies more than one sum, by substituting a different sum for any sum specified in that provision. (2)The provisions are— section 133 (gross income in connection with option to prepare account and statement instead of statement of accounts); section 144(1)(a) or (b) (gross income and value of assets in connection with requirements as to audit of larger charities); section 145(1) (gross income in connection with option to have accounts examined instead of audited); section 145(3) (gross income in connection with requirements as to qualifications of independent examiner); section 163(1) or (2) (gross income in connection with requirements to transmit annual report to Commission); section 169(2) (gross income in connection with requirement to prepare annual return). 175Aggregate gross income of group The Minister may by regulations make provision for determining for the purposes of this Part the amount of the aggregate gross income for a financial year of a group consisting of a parent charity and its subsidiary undertaking or undertakings. 176Larger groups: “relevant income threshold” and “relevant assets threshold” (1)The reference to the relevant income threshold in paragraph (a) or (b) of section 151(1) is a reference to the sum prescribed as the relevant income threshold for the purposes of that paragraph. (2)The reference to the relevant assets threshold in paragraph (b) of section 151(1) is a reference to the sum prescribed as the relevant assets threshold for the purposes of that paragraph. (3)“Prescribed” means prescribed by regulations made by the Minister. Part 9 Charity trustees, trustees and auditors etc. Meaning of “charity trustees” 177Meaning of “charity trustees” In this Act, except in so far as the context otherwise requires, “charity trustees” means the persons having the general control and management of the administration of a charity. Disqualification of charity trustees and trustees 178Persons disqualified from being charity trustees or trustees of a charity (1)A person (“P”) is disqualified from being a charity trustee or trustee for a charity in the following cases— Case A P has been convicted of any offence involving dishonesty or deception. Case B P has been adjudged bankrupt or sequestration of P’s estate has been awarded and (in either case)— (a)P has not been discharged, or (b)P is the subject of a bankruptcy restrictions order or an interim order. Case C P has made a composition or arrangement with, or granted a trust deed for, creditors and has not been discharged in respect of it. Case D P has been removed from the office of charity trustee or trustee for a charity by an order made— (a)by the Commission under section 79(2)(a) or by the Commission or the Commissioners under a relevant earlier enactment (as defined by section 179(5)), or (b)by the High Court, on the ground of any misconduct or mismanagement in the administration of the charity for which P was responsible or to which P was privy, or which P’s conduct contributed to or facilitated. Case E P has been removed, under section 34(5)(e) of the Charities and Trustee Investment (Scotland) Act 2005 (asp 10) (powers of the Court of Session) or the relevant earlier legislation (as defined by section 179(6)), from being concerned in the management or control of any body. Case F P is subject to— (a)a disqualification order or disqualification undertaking under the Company Directors Disqualification Act 1986 or the Company Directors Disqualification (Northern Ireland) Order 2002 (S.I. 2002/3150 (N.I.4)), or (b)an order made under section 429(2) of the Insolvency Act 1986 (disabilities on revocation of county court administration order). (2)Subsection (1) is subject to sections 179 to 181. 179Disqualification: pre-commencement events etc. (1)Case A— (a)applies whether the conviction occurred before or after the commencement of section 178(1), but (b)does not apply in relation to any conviction which is a spent conviction for the purposes of the Rehabilitation of Offenders Act 1974. (2)Case B applies whether the adjudication of bankruptcy or the sequestration or the making of a bankruptcy restrictions order or an interim order occurred before or after the commencement of section 178(1). (3)Case C applies whether the composition or arrangement was made, or the trust deed was granted, before or after the commencement of section 178(1). (4)Cases D to F apply in relation to orders made and removals effected before or after the commencement of section 178(1). (5)In Case D— (a)“the Commissioners” means the Charity Commissioners for England and Wales, and (b)“relevant earlier enactment” means— (i)section 18(2)(i) of the Charities Act 1993 (power to act for protection of charities), (ii)section 20(1A)(i) of the Charities Act 1960, or (iii)section 20(1)(i) of the 1960 Act (as in force before the commencement of section 8 of the Charities Act 1992). (6)In Case E, “the relevant earlier legislation” means section 7 of the Law Reform (Miscellaneous Provisions) (Scotland) Act 1990 (powers of Court of Session to deal with management of charities). 180Disqualification: exceptions in relation to charitable companies (1)Where (apart from this subsection) a person (“P”) is disqualified under Case B from being a charity trustee or trustee for a charitable company, P is not so disqualified if leave has been granted under section 11 of the Company Directors Disqualification Act 1986 (undischarged bankrupts) for P to act as director of the company. (2)Similarly, a person (“P”) is not disqualified under Case F from being a charity trustee or trustee for a charitable company if, in a case set out in the first column of the table, leave has been granted as mentioned in the second column for P to act as director of the company— P is subject to a disqualification order or disqualification undertaking under the Company Directors Disqualification Act 1986. Leave has been granted for the purposes of section 1(1)(a) or 1A(1)(a) of the 1986 Act. P is subject to a disqualification order or disqualification undertaking under the Company Directors Disqualification (Northern Ireland) Order 2002 (S.I. 2002/3150 (N.I.4)). Leave has been granted by the High Court in Northern Ireland. P is subject to an order under section 429(2) of the Insolvency Act 1986. Leave has been granted by the court which made the order. 181Power to waive disqualification (1)This section applies where a person (“P’) is disqualified under section 178(1). (2)The Commission may, if P makes an application under this subsection, waive P’s disqualification— (a)generally, or (b)in relation to a particular charity or a particular class of charities. (3)If— (a)P is disqualified under Case D or E and makes an application under subsection (2) 5 years or more after the date on which the disqualification took effect, and (b)the Commission is not prevented from granting the application by subsection (5),the Commission must grant the application unless satisfied that, because of any special circumstances, it should be refused. (4)Any waiver under subsection (2) must be notified in writing to P. (5)No waiver may be granted under subsection (2) in relation to any charitable company if— (a)P is for the time being prohibited from acting as director of the company, by virtue of— (i)a disqualification order or disqualification undertaking under the Company Directors Disqualification Act 1986, or (ii)a provision of the 1986 Act mentioned in subsection (6), and (b)leave has not been granted for P to act as director of any other company. (6)The provisions of the 1986 Act are— section 11(1) (undischarged bankrupts); section 12(2) (failure to pay under county court administration order); section 12A (Northern Irish disqualification orders); section 12B (Northern Irish disqualification undertakings). 182Records of persons removed from office (1)For the purposes of sections 178 to 181 the Commission must keep, in such manner as it thinks fit, a register of all persons who have been removed from office as mentioned in Case D— (a)by an order of the Commission or the Commissioners made before or after the commencement of section 178(1), or (b)by an order of the High Court made after the commencement of section 45(1) of the Charities Act 1992;and, where any person is so removed from office by an order of the High Court, the court must notify the Commission of the person’s removal. (2)The entries in the register kept under subsection (1) must be available for public inspection in legible form at all reasonable times. (3)In this section “the Commissioners” means the Charity Commissioners for England and Wales. 183Criminal consequences of acting while disqualified (1)Subject to subsection (2), it is an offence for any person to act as a charity trustee or trustee for a charity while disqualified from being such a trustee by virtue of section 178. (2)Subsection (1) does not apply if— (a)the charity concerned is a company, and (b)the disqualified person is disqualified by virtue only of Case B or F. (3)A person guilty of an offence under subsection (1) is liable— (a)on summary conviction, to imprisonment for a term not exceeding 12 months or to a fine not exceeding the statutory maximum, or both; (b)on conviction on indictment, to imprisonment for a term not exceeding 2 years or to a fine, or both. 184Civil consequences of acting while disqualified (1)Any acts done as charity trustee or trustee for a charity by a person disqualified from being such a trustee by virtue of section 178 are not invalid merely because of that disqualification. (2)Subsection (3) applies if the Commission is satisfied that any person— (a)has acted as charity trustee or trustee for a charity while disqualified from being such a trustee by virtue of section 178, and (b)while so acting, has received from the charity any sums by way of remuneration or expenses, or any benefit in kind, in connection with acting as charity trustee or trustee for the charity. (3)The Commission may by order direct the person— (a)to repay to the charity the whole or part of any such sums, or (b)(as the case may be) to pay to the charity the whole or part of the monetary value (as determined by the Commission) of any such benefit. (4)Subsection (3) does not apply to any sums received by way of remuneration or expenses in respect of any time when the person concerned was not disqualified from being a charity trustee or trustee for the charity. Remuneration of charity trustees and trustees etc. 185Remuneration of charity trustees or trustees etc. providing services to charity (1)This section applies to remuneration for services provided by a person (“P”) to or on behalf of a charity where— (a)P is a charity trustee or trustee for the charity, or (b)P is connected with a charity trustee or trustee for the charity and the remuneration might result in that trustee obtaining any benefit.This is subject to subsection (3). (2)If Conditions A to D are met in relation to remuneration within subsection (1), P is entitled to receive the remuneration out of the funds of the charity. Condition A Condition A is that the amount or maximum amount of the remuneration— (a)is set out in an agreement in writing between the charity or its charity trustees (as the case may be) and P under which P is to provide the services in question to or on behalf of the charity, and (b)does not exceed what is reasonable in the circumstances for the provision by P of the services in question. Condition B Condition B is that, before entering into that agreement, the charity trustees decided that they were satisfied that it would be in the best interests of the charity for the services to be provided by P to or on behalf of the charity for the amount or maximum amount of remuneration set out in the agreement. Condition C Condition C is that if immediately after the agreement is entered into there is, in the case of the charity, more than one person who is a charity trustee and is— (a)a person in respect of whom an agreement within Condition A is in force, (b)a person who is entitled to receive remuneration out of the funds of the charity otherwise than by virtue of such an agreement, or (c)a person connected with a person falling within paragraph (a) or (b), the total number of them constitute a minority of the persons for the time being holding office as charity trustees of the charity. Condition D Condition D is that the trusts of the charity do not contain any express provision that prohibits P from receiving the remuneration. (3)Nothing in this section applies to— (a)any remuneration for services provided by a person in the person’s capacity as a charity trustee or trustee for a charity or under a contract of employment, or (b)any remuneration not within paragraph (a) which a person is entitled to receive out of the funds of a charity by virtue of— (i)any provision contained in the trusts of the charity; (ii)any order of the court or the Commission; (iii)any statutory provision contained in or having effect under an Act other than this section. (4)Before entering into an agreement within Condition A the charity trustees must have regard to any guidance given by the Commission concerning the making of such agreements. (5)The duty of care in section 1(1) of the Trustee Act 2000 applies to a charity trustee when making such a decision as is mentioned in Condition B. (6)For the purposes of Condition C an agreement within Condition A is in force so long as any obligations under the agreement have not been fully discharged by a party to it. (7)Sections 187 and 188 (interpretation) apply for the purposes of this section. 186Disqualification of charity trustee or trustee receiving remuneration under s.185 (1)This section applies to any charity trustee or trustee for a charity— (a)who is or would be entitled to remuneration under an agreement or proposed agreement within Condition A, or (b)who is connected with a person who is or would be so entitled. (2)The charity trustee or trustee for a charity is disqualified from acting as such in relation to any decision or other matter connected with the agreement. (3)But if an act is done by a person who is disqualified from doing it by virtue of subsection (2), the act is not invalid merely because of that disqualification. (4)If the Commission is satisfied— (a)that a person (“P”) has done any act which P was disqualified from doing by virtue of subsection (2), and (b)that P or a person connected with P has received or is to receive from the charity any remuneration under the agreement in question,it may make an order under subsection (5) or (6) (as appropriate). (5)An order under this subsection is one requiring P— (a)to reimburse to the charity the whole or part of the remuneration received as mentioned in subsection (4)(b); (b)to the extent that the remuneration consists of a benefit in kind, to reimburse to the charity the whole or part of the monetary value (as determined by the Commission) of the benefit in kind. (6)An order under this subsection is one directing that P or (as the case may be) the connected person is not to be paid the whole or part of the remuneration mentioned in subsection (4)(b). (7)If the Commission makes an order under subsection (5) or (6), P or (as the case may be) the connected person accordingly ceases to have any entitlement under the agreement to so much of the remuneration (or its monetary value) as the order requires P to reimburse to the charity or (as the case may be) as it directs is not to be paid to P. (8)Sections 187 and 188 (interpretation) apply for the purposes of this section. 187Meaning of “benefit”, “remuneration”, “services” etc. In sections 185 and 186— “benefit” means a direct or indirect benefit of any nature; “maximum amount”, in relation to remuneration, means the maximum amount of the remuneration whether specified in or ascertainable under the terms of the agreement in question; “remuneration” includes any benefit in kind (and “amount” accordingly includes monetary value); “services”, in the context of remuneration for services, includes goods that are supplied in connection with the provision of services. 188Meaning of “connected person” (1)For the purposes of sections 185 and 186, the following persons are connected with a charity trustee or trustee for a charity— (a)a child, parent, grandchild, grandparent, brother or sister of the trustee; (b)the spouse or civil partner of the trustee or of any person falling within paragraph (a); (c)a person carrying on business in partnership with the trustee or with any person falling within paragraph (a) or (b); (d)an institution which is controlled— (i)by the trustee or by any person falling within paragraph (a), (b) or (c), or (ii)by two or more persons falling within sub-paragraph (i), when taken together. (e)a body corporate in which— (i)the trustee or any connected person falling within any of paragraphs (a) to (c) has a substantial interest, or (ii)two or more persons falling within sub-paragraph (i), when taken together, have a substantial interest. (2)Sections 350 to 352 (meaning of child, spouse and civil partner, controlled institution and substantial interest) apply for the purposes of subsection (1). Indemnity insurance for charity trustees and trustees 189Indemnity insurance for charity trustees and trustees (1)The charity trustees of a charity may arrange for the purchase, out of the funds of the charity, of insurance designed to indemnify the charity trustees or any trustees for the charity against any personal liability in respect of— (a)any breach of trust or breach of duty committed by them in their capacity as charity trustees or trustees for the charity, or (b)any negligence, default, breach of duty or breach of trust committed by them in their capacity as directors or officers of— (i)the charity (if it is a body corporate), or (ii)any body corporate carrying on any activities on behalf of the charity. (2)But the terms of such insurance must be so framed as to exclude the provision of any indemnity for a person (“P”) in respect of— (a)any liability incurred by P to pay— (i)a fine imposed in criminal proceedings, or (ii)a sum payable to a regulatory authority by way of a penalty in respect of non-compliance with any requirement of a regulatory nature (however arising), (b)any liability incurred by P in defending any criminal proceedings in which P is convicted of an offence arising out of any fraud or dishonesty, or wilful or reckless misconduct, by P, or (c)any liability incurred by P to the charity that arises out of any conduct— (i)which P knew (or must reasonably be assumed to have known) was not in the interests of the charity, or (ii)in the case of which P did not care whether it was in the best interests of the charity or not. (3)For the purposes of subsection (2)(b)— (a)the reference to any such conviction is a reference to one that has become final, (b)a conviction becomes final— (i)if not appealed against, at the end of the period for bringing an appeal, or (ii)if appealed against, at the time when the appeal (or any further appeal) is disposed of, and (c)an appeal is disposed of— (i)if it is determined and the period for bringing any further appeal has ended, or (ii)if it is abandoned or otherwise ceases to have effect. (4)The charity trustees of a charity may not purchase insurance under this section unless they decide that they are satisfied that it is in the best interests of the charity for them to do so. (5)The duty of care in section 1(1) of the Trustee Act 2000 applies to a charity trustee when making such a decision. (6)This section— (a)does not authorise the purchase of any insurance whose purchase is expressly prohibited by the trusts of the charity, but (b)has effect despite any provision prohibiting the charity trustees or trustees for the charity receiving any personal benefit out of the funds of the charity. 190Power to amend s.189 The Minister may by order make such amendments of section 189(2) and (3) as the Minister considers appropriate. Powers to relieve trustees and auditors etc. from liability 191Commission’s power to relieve trustees and auditors etc. from liability (1)This section applies to a person (“P”) who is or has been— (a)a charity trustee or trustee for a charity, (b)a person appointed to audit a charity’s accounts (whether appointed under an enactment or otherwise), or (c)an independent examiner or other person appointed to examine or report on a charity’s accounts (whether appointed under an enactment or otherwise). (2)If the Commission considers— (a)that P is or may be personally liable for a breach of trust or breach of duty committed in P’s capacity as a person within subsection (1)(a), (b) or (c), but (b)that P has acted honestly and reasonably and ought fairly to be excused for the breach of trust or duty,the Commission may make an order relieving P wholly or partly from any such liability. (3)An order under subsection (2) may grant the relief on such terms as the Commission thinks fit. (4)Subsection (2) does not apply in relation to any personal contractual liability of a charity trustee or trustee for a charity. (5)For the purposes of this section and section 192— (a)subsection (1)(b) is to be read as including a reference to the Auditor General for Wales acting as auditor under Part 8, and (b)subsection (1)(c) is to be read as including a reference to the Auditor General for Wales acting as examiner under Part 8;and in subsection (1)(b) and (c) any reference to a charity’s accounts is to be read as including any group accounts prepared by the charity trustees of a charity. (6)This section does not affect the operation of— (a)section 61 of the Trustee Act 1925 (power of court to grant relief to trustees), (b)section 1157 of the Companies Act 2006 (power of court to grant relief to officers or auditors of companies), or (c)section 192 (which extends section 1157 to auditors etc. of charities which are not companies). 192Court’s power to grant relief to apply to all auditors etc. of charities which are not companies (1)Section 1157 of the Companies Act 2006 (power of court to grant relief to officers or auditors of companies) has effect in relation to a person to whom this section applies as it has effect in relation to a person employed as an auditor by a company. (2)This section applies to— (a)a person acting in a capacity within section 191(1)(b) or (c) in a case where, apart from this section, section 1157 of the 2006 Act would not apply in relation to that person as a person so acting, and (b)a charity trustee of a CIO. Part 10 Charitable companies etc. Introductory 193Meaning of “charitable company” In this Act “charitable company” means a charity which is a company. Disclosure of charitable status by companies 194Requirement to disclose charitable status (1)Where a charitable company’s name does not include the word “charity” or “charitable”, the fact that the company is a charity must be stated in legible characters— (a)in every location, and in every description of document or communication, in which it is required by regulations under section 82 of the Companies Act 2006 to state its registered name, and (b)in all conveyances purporting to be executed by the company. (2)Where a company’s name includes the word “elusen” or “elusennol” (the Welsh equivalents of “charity” and “charitable”), subsection (1) does not apply in relation to any document that is wholly in Welsh. (3)The statement required by subsection (1) must be in English, except that, in the case of a document that is otherwise wholly in Welsh, the statement may be in Welsh if it consists of or includes the word “elusen” or “elusennol”. (4)In subsection (1)(b) “conveyance” means any instrument creating, transferring, varying or extinguishing an interest in land. 195Civil consequences of failure to make required disclosure (1)This section applies to any legal proceedings brought by a charitable company to which section 194 applies to enforce a right arising out of a contract or conveyance in connection with which there was a failure to comply with that section. (2)The proceedings must be dismissed if it is shown that the defendant to the proceedings— (a)has a claim against the company arising out of the contract or conveyance that the defendant has been unable to pursue because of the company’s failure to comply with section 194, or (b)has suffered some financial loss in connection with the contract or conveyance because of the company’s failure to comply with that section,unless the court before which the proceedings are brought is satisfied that it is just and equitable to permit the proceedings to continue. (3)This section does not affect the right of any person to enforce such rights as that person may have against another in any proceedings brought by the other. 196Criminal consequences of failure to make required disclosure (1)Where a charitable company fails, without reasonable excuse, to comply with section 194, an offence is committed by— (a)the company, and (b)every officer of the company who is in default. (2)For this purpose a shadow director of the company is treated as an officer of the company if the failure is to comply with section 194(1)(a) and that person would be treated as an officer of the company for the purposes of the corresponding requirement of regulations under section 82 of the Companies Act 2006. (3)A person guilty of such an offence is liable on summary conviction to a fine not exceeding level 3 on the standard scale and, for continued contravention, a daily default fine not exceeding 10% of level 3 on the standard scale. (4)Expressions used in this section have the same meaning as in section 84 of the Companies Act 2006 (criminal consequences of failure to disclose company’s registered name). Restrictions on alteration of objects 197Alteration of objects by bodies corporate and charitable status (1)Subsection (2) applies where a charity— (a)is a company or other body corporate, and (b)has power to alter the instruments establishing or regulating it as a body corporate. (2)No exercise of the power which has the effect of the body ceasing to be a charity is valid so as to affect the application of— (a)any property acquired under any disposition or agreement previously made otherwise than for full consideration in money or money’s worth, or any property representing property so acquired, (b)any property representing income which has accrued before the alteration is made, or (c)the income from any such property. 198Alteration of objects by companies and Commission’s consent (1)Any regulated alteration by a charitable company— (a)requires the prior written consent of the Commission, and (b)is ineffective if such consent has not been obtained. (2)The following are regulated alterations— (a)an amendment of the company’s articles of association adding, removing or altering a statement of the company’s objects, (b)any alteration of any provision of its articles of association directing the application of property of the company on its dissolution, and (c)any alteration of any provision of its articles of association where the alteration would provide authorisation for any benefit to be obtained by directors or members of the company or persons connected with them. (3)Where a company that has made a regulated alteration in accordance with subsection (1) is required— (a)by section 26 of the Companies Act 2006 to send to the registrar of companies a copy of its articles as amended, (b)by section 30 of that Act to forward to the registrar a copy of the special resolution effecting the alteration, or (c)by section 31 of that Act to give notice to the registrar of the amendment,the copy or notice must be accompanied by a copy of the Commission’s consent. (4)If more than one of those provisions applies and they are complied with at different times, the company need not send a further copy of the Commission’s consent if a copy was sent on an earlier occasion. (5)Subsections (2) to (4) of section 30 of that Act (offence of failing to comply with section 30) apply in relation to a failure to comply with subsection (3) as in relation to a failure to comply with that section. 199Meaning of “benefit” in s.198(2) For the purposes of section 198(2)(c) “benefit” means a direct or indirect benefit of any nature, except that it does not include any remuneration (within the meaning of section 185) whose receipt may be authorised under that section. 200Meaning of “connected person” in s.198(2) (1)For the purposes of section 198(2)(c), the following persons are connected with a director or member of a charitable company— (a)a child, parent, grandchild, grandparent, brother or sister of the director or member; (b)the spouse or civil partner of the director or member or of any person falling within paragraph (a); (c)a person carrying on business in partnership with the director or member or with any person falling within paragraph (a) or (b); (d)an institution which is controlled— (i)by the director or member or by any person falling within paragraph (a), (b) or (c), or (ii)by two or more persons falling within sub-paragraph (i), when taken together. (e)a body corporate in which— (i)the director or member or any connected person falling within any of paragraphs (a) to (c) has a substantial interest, or (ii)two or more persons falling within sub-paragraph (i), when taken together, have a substantial interest. (2)Sections 350 to 352 (meaning of child, spouse, civil partner, controlled institution and substantial interest) apply for the purposes of subsection (1). Acts requiring Commission consent 201Consent of Commission required for approval etc. by members of charitable companies (1)In the case of a charitable company, each of the following is ineffective without the prior written consent of the Commission— (a)any approval given by the members of the company under any provision of Chapter 4 of Part 10 of the Companies Act 2006 (transactions with directors requiring approval by members) listed in subsection (2), and (b)any affirmation given by members of the company under section 196 or 214 of the 2006 Act (affirmation of unapproved property transactions and loans). (2)The provisions of the 2006 Act are— (a)section 188 (directors’ long-term service contracts); (b)section 190 (substantial property transactions with directors etc.); (c)section 197, 198 or 200 (loans and quasi-loans to directors etc.); (d)section 201 (credit transactions for benefit of directors etc.); (e)section 203 (related arrangements); (f)section 217 (payments to directors for loss of office); (g)section 218 (payments to directors for loss of office: transfer of undertaking etc.). 202Consent of Commission required for certain acts of charitable company (1)A charitable company may not do an act to which this section applies without the prior written consent of the Commission. (2)This section applies to an act that— (a)does not require approval under a listed provision of Chapter 4 of Part 10 of the Companies Act 2006 (transactions with directors) by the members of the company, but (b)would require such approval but for an exemption in the provision in question that disapplies the need for approval on the part of the members of a body corporate which is a wholly-owned subsidiary of another body corporate. (3)The reference to a listed provision is a reference to a provision listed in section 201(2). (4)If a company acts in contravention of this section, the exemption referred to in subsection (2)(b) is to be treated as being of no effect in relation to the act. Restoration of charitable company to register 203Application for restoration of charitable company to register (1)The Commission may make an application under section 1029 of the Companies Act 2006 (application to court for restoration to the register of companies) to restore a charitable company to the register of companies. (2)The power exercisable by the Commission by virtue of this section is exercisable— (a)by the Commission of its own motion, but (b)only with the agreement of the Attorney General on each occasion. Part 11 Charitable incorporated organisations (CIOs) CHAPTER 1 General Nature and constitution 204Meaning of “CIO” In this Act “CIO” means charitable incorporated organisation. 205Nature (1)A CIO is a body corporate. (2)A CIO must have— (a)a constitution; (b)a principal office, which must be in England or in Wales; (c)one or more members. (3)The members may be— (a)not liable to contribute to the assets of the CIO if it is wound up, or (b)liable to do so up to a maximum amount each. 206Constitution (1)A CIO’s constitution must state— (a)its name, (b)its purposes, (c)whether its principal office is in England or in Wales, and (d)whether or not its members are liable to contribute to its assets if it is wound up, and (if they are) up to what amount. (2)A CIO’s constitution must make provision— (a)about who is eligible for membership, and how a person becomes a member, (b)about the appointment of one or more persons who are to be charity trustees of the CIO, and about any conditions of eligibility for appointment, and (c)containing directions about the application of property of the CIO on its dissolution. (3)A CIO’s constitution must also provide for such other matters, and comply with such requirements, as are specified in CIO regulations. (4)A CIO’s constitution— (a)must be in English if its principal office is in England; (b)may be in English or in Welsh if its principal office is in Wales. (5)A CIO’s constitution must be in the form specified in regulations made by the Commission, or as near to that form as the circumstances admit. (6)Subject to anything in a CIO’s constitution— (a)a charity trustee of the CIO may, but need not, be a member of it, (b)a member of the CIO may, but need not, be one of its charity trustees, and (c)those who are members of the CIO and those who are its charity trustees may, but need not, be identical. Formation and registration of CIO 207Application for CIO to be constituted and registered (1)Any one or more persons (“the applicants”) may apply to the Commission for a CIO to be constituted and for its registration as a charity. (2)The applicants must supply the Commission with— (a)a copy of the proposed constitution of the CIO, (b)such other documents or information as may be prescribed by CIO regulations, and (c)such other documents or information as the Commission may require for the purposes of the application. 208Cases where application must or may be refused (1)The Commission must refuse an application under section 207 if— (a)it is not satisfied that the CIO would be a charity at the time it would be registered, or (b)the CIO’s proposed constitution does not comply with one or more of the requirements of section 206 (constitution of CIOs) and any regulations made under that section. (2)The Commission may refuse such an application if— (a)the proposed name of the CIO— (i)is the same as, or (ii)is in the opinion of the Commission too like,the name of any other charity (whether registered or not), or (b)the Commission is of the opinion referred to in any of paragraphs (b) to (e) of section 42(2) (power to require charity’s name to be changed) in relation to the proposed name of the CIO (reading paragraph (b) as referring to the proposed purposes of the CIO and to the activities which it is proposed it should carry on). 209Registration of CIO (1)If the Commission grants an application under section 207 it must register the CIO to which the application relates as a charity in the register of charities. (2)The entry relating to the charity’s registration in the register of charities must include— (a)the date of the charity’s registration, and (b)a note saying that it is constituted as a CIO. (3)A copy of the entry in the register must be sent to the charity at the principal office of the CIO. 210Effect of registration of CIO (1)Upon the registration of the CIO in the register of charities, it becomes by virtue of the registration a body corporate— (a)whose constitution is that proposed in the application, (b)whose name is that specified in the constitution, and (c)whose first member is, or first members are, the applicants referred to in section 207. (2)All property for the time being vested in the applicants (or, if more than one, any of them) on trust for the charitable purposes of the CIO (when incorporated) by virtue of this subsection becomes vested in the CIO upon its registration. Name and status 211Name (1)The name of a CIO must appear in legible characters— (a)in every location, and in every description of document or communication, in which a charitable company would be required by regulations under section 82 of the Companies Act 2006 to state its registered name, and (b)in all conveyances purporting to be executed by the CIO. (2)In subsection (1)(b), “conveyance” means any instrument creating, transferring, varying or extinguishing an interest in land. 212Status (1)Subsection (3) applies if the name of a CIO does not include— (a)“charitable incorporated organisation”, (b)“CIO”, with or without full stops after each letter, or (c)a Welsh equivalent mentioned in subsection (2) (but this option applies only if the CIO’s constitution is in Welsh),and it is irrelevant, in any such case, whether or not capital letters are used. (2)The Welsh equivalents referred to in subsection (1)(c) are— (a)“sefydliad elusennol corfforedig”, or (b)“SEC”, with or without full stops after each letter. (3)If this subsection applies, the fact that a CIO is a CIO must be stated in legible characters in all the locations, documents, communications and conveyances mentioned in section 211(1). (4)The statement required by subsection (3) must be in English, except that in the case of a document which is otherwise wholly in Welsh, the statement may be in Welsh. 213Civil consequences of failure to disclose name or status (1)This section applies to any legal proceedings brought by a CIO to enforce a right arising out of a contract or conveyance in connection with which there was a failure to comply with section 211 or 212. (2)The proceedings must be dismissed if it is shown that the defendant to the proceedings— (a)has a claim against the CIO arising out of the contract or conveyance that the defendant has been unable to pursue because of the failure to comply with section 211 or 212, or (b)has suffered some financial loss in connection with the contract or conveyance because of the failure to comply with section 211 or 212,unless the court before which the proceedings are brought is satisfied that it is just and equitable to permit the proceedings to continue. (3)This section does not affect the right of any person to enforce such rights as that person may have against another in any proceedings brought by the other. 214Offence of failing to disclose name or status (1)In the case of failure, without reasonable excuse, to comply with section 211 or 212 an offence is committed by— (a)every charity trustee of the CIO who is in default, and (b)any other person who on the CIO’s behalf— (i)signs or authorises the signing of the offending document, communication or conveyance, or (ii)otherwise commits or authorises the offending act or omission. (2)A person guilty of an offence under subsection (1) is liable on summary conviction to a fine not exceeding level 3 on the standard scale and, for continued contravention, a daily default fine not exceeding 10% of level 3 on the standard scale. (3)The reference in subsection (1) to a charity trustee being in default, and the reference in subsection (2) to a daily default fine, have the same meaning as in the Companies Acts (see sections 1121 to 1123 and 1125 of the Companies Act 2006). 215Offence of holding out that a body is a CIO (1)It is an offence for a person (in whatever way) to hold any body out as being a CIO when it is not. (2)It is a defence where a person is charged with an offence under subsection (1) to prove that the person believed on reasonable grounds that the body was a CIO. (3)A person guilty of an offence under subsection (1) is liable on summary conviction to a fine not exceeding level 3 on the standard scale. CHAPTER 2 Powers, capacity and procedure etc. 216Powers of CIO (1)Subject to anything in its constitution, a CIO may do anything which is calculated to further its purposes or is conducive or incidental to doing so. (2)The CIO’s charity trustees are to manage the affairs of the CIO and may for that purpose exercise all the powers of the CIO. 217Constitutional requirements (1)A CIO must use and apply its property in furtherance of its purposes and in accordance with its constitution. (2)If the CIO is one whose members are liable to contribute to its assets if it is wound up, its constitution binds the CIO and its members for the time being to the same extent as if its provisions were contained in a contract— (a)to which the CIO and each of its members was a party, and (b)which contained obligations on the part of the CIO and each member to observe all the provisions of the constitution. (3)Money payable by a member to the CIO under the constitution is a debt due from that member to the CIO, and is of the nature of an ordinary contract debt. 218Third parties (1)Subject to subsection (3), the validity of an act done (or purportedly done) by a CIO is not to be called into question on the ground that the CIO lacked constitutional capacity. (2)Subject to subsection (3), the power of the charity trustees of a CIO to act so as to bind the CIO (or authorise others to do so) is not to be called into question on the ground of any constitutional limitations on their powers. (3)Subsections (1) and (2) apply only in favour of a person who gives full consideration in money or money’s worth in relation to the act in question, and does not know— (a)in a subsection (1) case, that the act is beyond the CIO’s constitutional capacity, or (b)in a subsection (2) case, that the act is beyond the constitutional powers of its charity trustees,and (in addition) subsection (2) applies only if the person dealt with the CIO in good faith (which the person is presumed to have done unless the contrary is proved). (4)A party to an arrangement or transaction with a CIO is not bound to inquire— (a)whether it is within the CIO’s constitutional capacity, or (b)as to any constitutional limitations on the powers of its charity trustees to bind the CIO or authorise others to do so. (5)If a CIO purports to transfer or grant an interest in property, the fact— (a)that the act was beyond its constitutional capacity, or (b)that its charity trustees in connection with the act exceeded their constitutional powers,does not affect the title of a person who subsequently acquires the property or any interest in it for full consideration without actual notice of any such circumstances affecting the validity of the CIO’s act. (6)In any proceedings arising out of subsections (1) to (3), the burden of proving that a person knew that an act— (a)was beyond the CIO’s constitutional capacity, or (b)was beyond the constitutional powers of its charity trustees,lies on the person making that allegation. (7)In this section and section 219— (a)references to a CIO’s lack of constitutional capacity are to lack of capacity because of anything in its constitution, and (b)references to constitutional limitations on the powers of a CIO’s charity trustees are to limitations on their powers under its constitution, including limitations deriving from a resolution of the CIO in general meeting, or from an agreement between the CIO’s members, and the references to constitutional powers are to be read accordingly. 219Limits to s.218 (1)Nothing in section 218 prevents a person from bringing proceedings to restrain the doing of an act which would be— (a)beyond the CIO’s constitutional capacity, or (b)beyond the constitutional powers of the CIO’s charity trustees. (2)But no such proceedings may be brought in respect of an act to be done in fulfilment of a legal obligation arising from a previous act of the CIO. (3)Subsection (2) does not prevent the Commission from exercising any of its powers. (4)Nothing in section 218(2) affects any liability incurred by the CIO’s charity trustees (or any one of them) for acting beyond their (or that charity trustee’s) constitutional powers. (5)Nothing in section 218 absolves the CIO’s charity trustees from their duty to act within the CIO’s constitution and in accordance with any constitutional limitations on their powers. 220Duty of CIO members Each member of a CIO must exercise the powers that the member has in that capacity in the way that the member decides, in good faith, would be most likely to further the purposes of the CIO. 221Duties of charity trustees (1)Each charity trustee of a CIO must exercise the powers and perform the functions that the charity trustee has in that capacity in the way that the charity trustee decides, in good faith, would be most likely to further the purposes of the CIO. (2)Each charity trustee of a CIO must in the performance of functions in that capacity exercise such care and skill as is reasonable in the circumstances, having regard in particular— (a)to any special knowledge or experience that the charity trustee has or purports to have, and (b)if the charity trustee acts as such in the course of a business or profession, to any special knowledge or experience that it is reasonable to expect of a person acting in the course of that kind of business or profession.But this is subject to any provision of a CIO’s constitution permitted by virtue of regulations made under subsection (3). (3)CIO regulations may permit a CIO’s constitution to provide that the duty in subsection (2)— (a)does not apply, or (b)does not apply in so far as is specified in the constitution. (4)Regulations under subsection (3) may provide for limits on the extent to which, or the cases in which, a CIO’s constitution may disapply the duty in subsection (2). 222Personal benefit and payments (1)A charity trustee of a CIO may not benefit personally from an arrangement or transaction entered into by the CIO if, before the arrangement or transaction was entered into, the charity trustee did not disclose to all the charity trustees of the CIO any material interest (whether direct or indirect) which the charity trustee had in it or in any other person or body party to it. (2)Nothing in subsection (1) confers authority for a charity trustee of a CIO to benefit personally from any arrangement or transaction entered into by the CIO. (3)A charity trustee of a CIO— (a)is entitled to be reimbursed by the CIO, or (b)may pay out of the CIO’s funds,expenses properly incurred by the charity trustee in the performance of that charity trustee’s functions as such. 223Regulations about procedure of CIOs (1)CIO regulations may make provision about the procedure of CIOs. (2)Subject to— (a)any such regulations, (b)any other requirement imposed by or by virtue of this Act or any other enactment, and (c)anything in the CIO’s constitution,a CIO may regulate its own procedure. (3)But a CIO’s procedure must include provision for the holding of a general meeting of its members, and the regulations referred to in subsection (1) may in particular make provision about such meetings. CHAPTER 3 Amendment of constitution 224Amendment of constitution and procedure (1)A CIO may by resolution of its members amend its constitution (and a single resolution may provide for more than one amendment). (2)Such a resolution must be passed— (a)by a 75% majority of those voting at a general meeting of the CIO (including those voting by proxy or by post, if voting that way is permitted), or (b)unanimously by the CIO’s members, otherwise than at a general meeting. (3)The date of passing of such a resolution is— (a)the date of the general meeting at which it was passed, or (b)if it was passed otherwise than at a general meeting, the date on which provision in the CIO’s constitution or in regulations made under section 223 treats it as having been passed (but that date may not be earlier than that on which the last member agreed to it). 225Amendment of constitution and charitable status The power of a CIO to amend its constitution is not exercisable in any way which would result in the CIO’s ceasing to be a charity. 226Amendment of constitution and Commission’s consent (1)Subject to section 227(5), a resolution containing an amendment which would make any regulated alteration is to that extent ineffective unless the prior written consent of the Commission has been obtained to the making of the amendment. (2)The following are regulated alterations— (a)any alteration of the CIO’s purposes, (b)any alteration of any provision of the CIO’s constitution directing the application of property of the CIO on its dissolution, and (c)any alteration of any provision of the CIO’s constitution where the alteration would provide authorisation for any benefit to be obtained by charity trustees or members of the CIO or persons connected with them. (3)Sections 248 (meaning of “benefit”) and 249 (meaning of “connected person”) apply for the purposes of this section. 227Registration and coming into effect of amendments (1)A CIO must send to the Commission a copy of a resolution containing an amendment to its constitution, together with— (a)a copy of the constitution as amended, and (b)such other documents and information as the Commission may require,by the end of the period of 15 days beginning with the date of passing of the resolution (see section 224(3)). (2)An amendment to a CIO’s constitution does not take effect until it has been registered. (3)The Commission must refuse to register an amendment if— (a)in the opinion of the Commission the CIO had no power to make it (for example, because the effect of making it would be that the CIO ceased to be a charity, or that the CIO or its constitution did not comply with any requirement imposed by or by virtue of this Act or any other enactment), or (b)the amendment would change the name of the CIO, and the Commission could have refused an application under section 207 for the constitution and registration of a CIO with the name specified in the amendment on a ground set out in section 208(2). (4)The Commission may refuse to register an amendment if— (a)the amendment would make a regulated alteration, and (b)the consent referred to in section 226(1) had not been obtained. (5)But if the Commission does register such an amendment, section 226(1) does not apply. CHAPTER 4 Conversion, amalgamation and transfer Conversion of certain bodies to CIO 228Application for conversion by charitable company (1)A charitable company may apply to the Commission to be converted into a CIO, and for the CIO’s registration as a charity, in accordance with this section. (2)But such an application may not be made by— (a)a company having a share capital if any of the shares are not fully paid up, or (b)an exempt charity. (3)The company must supply the Commission with— (a)a copy of a resolution of the company that it be converted into a CIO, (b)a copy of the proposed constitution of the CIO, (c)a copy of a resolution of the company adopting the proposed constitution of the CIO, (d)such other documents or information as may be prescribed by CIO regulations, and (e)such other documents or information as the Commission may require for the purposes of the application. (4)The resolution referred to in subsection (3)(a) must be— (a)a special resolution of the company, or (b)a unanimous written resolution signed by or on behalf of all the members of the company who would be entitled to vote on a special resolution. (5)Chapter 3 of Part 3 of the Companies Act 2006 (resolutions and agreements affecting a company’s constitution) does not apply to such a resolution. (6)In the case of a company limited by guarantee which makes an application under this section (whether or not it also has a share capital), the proposed constitution of the CIO must (unless subsection (8) applies) provide— (a)for the CIO’s members to be liable to contribute to its assets if it is wound up, and (b)for the amount up to which they are so liable. (7)That amount must not be less than the amount up to which they were liable to contribute to the assets of the company if it was wound up. (8)If the amount each member of the company is liable to contribute to its assets on its winding up is £10 or less— (a)the guarantee is extinguished on the conversion of the company into a CIO, and (b)the requirements of subsections (6) and (7) do not apply. 229Application for conversion by registered society (1)A charity which is a registered society may apply to the Commission to be converted into a CIO, and for the CIO’s registration as a charity, in accordance with this section.“Registered society” has the same meaning as in the Co-operative and Community Benefit Societies and Credit Unions Act 1965. (2)But such an application may not be made by— (a)a registered society having a share capital if any of the shares are not fully paid up, or (b)an exempt charity. (3)The registered society must supply the Commission with— (a)a copy of a resolution of the registered society that it be converted into a CIO, (b)a copy of the proposed constitution of the CIO, (c)a copy of a resolution of the registered society adopting the proposed constitution of the CIO, (d)such other documents or information as may be prescribed by CIO regulations, and (e)such other documents or information as the Commission may require for the purposes of the application. (4)The resolution referred to in subsection (3)(a) must be— (a)a special resolution of the registered society, or (b)a unanimous written resolution signed by or on behalf of all the members of the registered society who would be entitled to vote on a special resolution. (5)In subsection (4), “special resolution” has the meaning given in section 52(3) of the Co-operative and Community Benefit Societies and Credit Unions Act 1965. 230Commission to consult appropriate registrar and others (1)The Commission must notify the following of an application for conversion— (a)the appropriate registrar, and (b)such other persons (if any) as the Commission thinks appropriate in the particular case,and must consult those notified about whether the application should be granted. (2)In subsection (1) and sections 231 to 233, “the appropriate registrar” means— (a)in the case of an application by a charitable company, the registrar of companies; (b)in the case of an application by a registered society, the Financial Services Authority. (3)In this section and sections 231 to 233, “application for conversion” means an application under section 228 or 229. 231Cases where application must or may be refused (1)The Commission must refuse an application for conversion if— (a)it is not satisfied that the CIO would be a charity at the time it would be registered, (b)the CIO’s proposed constitution does not comply with one or more of the requirements of section 206 (constitution of CIOs) and any regulations made under that section, or (c)in the case of an application for conversion made by a company limited by guarantee, the CIO’s proposed constitution does not comply with the requirements of section 228(6) and (7). (2)The Commission may refuse an application for conversion if— (a)the proposed name of the CIO— (i)is the same as, or (ii)is in the opinion of the Commission too like,the name of any other charity (whether registered or not), (b)the Commission is of the opinion referred to in any of paragraphs (b) to (e) of section 42(2) (power to require charity’s name to be changed) in relation to the proposed name of the CIO (reading paragraph (b) as referring to the proposed purposes of the CIO and to the activities which it is proposed it should carry on), or (c)having considered any representations received from those whom it has consulted under section 230(1), the Commission considers (having regard to any regulations made under subsection (3)) that it would not be appropriate to grant the application. (3)CIO regulations may make provision about circumstances in which it would not be appropriate to grant an application for conversion. (4)If the Commission refuses an application for conversion, it must so notify the appropriate registrar. 232Provisional and final registration of converting body (1)If the Commission grants an application for conversion, it must— (a)register the CIO to which the application related in the register of charities, and (b)send to the appropriate registrar a copy of— (i)each of the relevant resolutions of the converting company or registered society, and (ii)the entry in the register relating to the CIO. (2)In subsection (1)(b), “the relevant resolutions” means— (a)in the case of a converting company, the resolutions referred to in section 228(3)(a) and (c), and (b)in the case of a converting society, the resolutions referred to in section 229(3)(a) and (c). (3)The registration of the CIO in the register is provisional only until the appropriate registrar cancels the registration of the company or society as required by subsection (4)(b). (4)The appropriate registrar must— (a)register the documents sent under subsection (1)(b), and (b)cancel the registration of the company in the register of companies, or of the society in the mutual societies register,and must notify the Commission that this action has been taken. (5)The entry relating to the charity’s registration in the register must include— (a)a note that it is constituted as a CIO, (b)the date on which it became so constituted, and (c)a note of the name of the company or society which was converted into the CIO. (6)But the matters mentioned in subsections (5)(a) and (b) are to be included only when the appropriate registrar has notified the Commission as required by subsection (4). (7)A copy of the entry in the register must be sent to the charity at the principal office of the CIO. 233Effect of registration becoming final (1)Upon the cancellation by the appropriate registrar of the registration of the company or of the registered society, the company or society is converted into a CIO, a body corporate— (a)whose constitution is that proposed in the application for conversion, (b)whose name is that specified in the constitution, and (c)whose first members are the members of the converting company or society immediately before the moment of conversion. (2)If the converting company or society had a share capital— (a)upon the conversion of the company or society all the shares are by virtue of this subsection cancelled, and (b)no former holder of any cancelled share has any right in respect of it after its cancellation. (3)Subsection (2) does not affect any right which accrued in respect of a share before its cancellation. (4)The conversion of a company or society into a CIO does not affect, in particular, any liability to which the company or society was subject by virtue of its being a charitable company or registered society. 234Conversion of community interest company (1)CIO regulations may make provision for— (a)the conversion of a community interest company into a CIO, and (b)the CIO’s registration as a charity. (2)The regulations may, in particular, apply, or apply with modifications specified in the regulations, or disapply, anything in— (a)sections 53 to 55 of the Companies (Audit, Investigations and Community Enterprise) Act 2004, or (b)sections 228 to 233. Amalgamation of CIOs 235Application for amalgamation of CIOs (1)Any two or more CIOs (“the old CIOs”) may, in accordance with this section, apply to the Commission to be amalgamated, and for the incorporation and registration as a charity of a new CIO (“the new CIO”) as their successor. (2)The old CIOs must supply the Commission with— (a)a copy of the proposed constitution of the new CIO, (b)such other documents or information as may be prescribed by CIO regulations, and (c)such other documents or information as the Commission may require for the purposes of the application. (3)In addition to the documents and information referred to in subsection (2), the old CIOs must supply the Commission with— (a)a copy of a resolution of each of the old CIOs approving the proposed amalgamation, and (b)a copy of a resolution of each of the old CIOs adopting the proposed constitution of the new CIO. (4)The resolutions referred to in subsection (3) must have been passed— (a)by a 75% majority of those voting at a general meeting of the CIO (including those voting by proxy or by post, if voting that way is permitted), or (b)unanimously by the CIO’s members, otherwise than at a general meeting. (5)The date of passing of such a resolution is— (a)the date of the general meeting at which it was passed, or (b)if it was passed otherwise than at a general meeting, the date on which provision in the CIO’s constitution or in regulations made under section 223 treats it as having been passed (but that date may not be earlier than that on which the last member agreed to it). 236Notice of application for amalgamation (1)Each old CIO must— (a)give notice of the proposed amalgamation in the way (or ways) that in the opinion of its charity trustees will make it most likely to come to the attention of those who would be affected by the amalgamation, and (b)send a copy of the notice to the Commission. (2)The notice must invite any persons who consider that they would be affected by the proposed amalgamation to make written representations to the Commission no later than a date determined by the Commission and specified in the notice. 237Cases where application must or may be refused (1)The Commission must refuse an application for amalgamation if— (a)it is not satisfied that the new CIO would be a charity at the time it would be registered, or (b)the new CIO’s proposed constitution does not comply with one or more of the requirements of section 206 and any regulations made under that section. (2)In addition to being required to refuse it on one of the grounds mentioned in subsection (1), the Commission must refuse an application for amalgamation if it considers that there is a serious risk that the new CIO would be unable properly to pursue its purposes. (3)The Commission may refuse an application for amalgamation if— (a)the proposed name of the new CIO— (i)is the same as, or (ii)is in the opinion of the Commission too like,the name of any other charity (whether registered or not), or (b)the Commission is of the opinion referred to in any of paragraphs (b) to (e) of section 42(2) (power to require charity’s name to be changed) in relation to the proposed name of the new CIO (reading paragraph (b) as referring to the proposed purposes of the new CIO and to the activities which it is proposed it should carry on). (4)The Commission may refuse an application for amalgamation if it is not satisfied that the provision in the constitution of the new CIO about the matters mentioned in subsection (5) is— (a)the same, or (b)substantially the same,as the provision about those matters in the constitutions of each of the old CIOs. (5)The matters are— (a)the purposes of the CIO, (b)the application of property of the CIO on its dissolution, and (c)authorisation for any benefit to be obtained by charity trustees or members of the CIO or persons connected with them. (6)Sections 248 (meaning of “benefit”) and 249 (meaning of “connected person”) apply for the purposes of this section. (7)In this section and sections 238 and 239, “application for amalgamation” means an application under section 235. 238Registration of amalgamated CIO (1)If the Commission grants an application for amalgamation, it must register the new CIO in the register of charities. (2)The entry relating to the registration in the register of the charity constituted as the new CIO must include— (a)a note that it is constituted as a CIO, (b)the date of the charity’s registration, and (c)a note that the CIO was formed following amalgamation, and of the name of each of the old CIOs. (3)A copy of the entry in the register must be sent to the charity at the principal office of the new CIO. 239Effect of registration (1)Upon the registration of the new CIO it becomes by virtue of the registration a body corporate— (a)whose constitution is that proposed in the application for amalgamation, (b)whose name is that specified in the constitution, and (c)whose first members are the members of the old CIOs immediately before the new CIO was registered. (2)Upon the registration of the new CIO— (a)all the property, rights and liabilities of each of the old CIOs become by virtue of this subsection the property, rights and liabilities of the new CIO, and (b)each of the old CIOs is dissolved. (3)Any gift which— (a)is expressed as a gift to one of the old CIOs, and (b)takes effect on or after the date of registration of the new CIO,takes effect as a gift to the new CIO. Transfer of CIO’s undertaking to another CIO 240Resolutions about transfer of CIO’s undertaking to another CIO (1)A CIO may resolve that all its property, rights and liabilities should be transferred to another CIO specified in the resolution. (2)Where a CIO has passed such a resolution, it must send to the Commission— (a)a copy of the resolution, and (b)a copy of a resolution of the transferee CIO agreeing to the transfer to it. (3)The resolutions referred to in subsections (1) and (2)(b) must have been passed— (a)by a 75% majority of those voting at a general meeting of the CIO (including those voting by proxy or by post, if voting that way is permitted), or (b)unanimously by the CIO’s members, otherwise than at a general meeting. (4)The date of passing of such a resolution is— (a)the date of the general meeting at which it was passed, or (b)if it was passed otherwise than at a general meeting, the date on which provision in the CIO’s constitution or in regulations made under section 223 treats it as having been passed (but that date may not be earlier than that on which the last member agreed to it). (5)The resolution of the transferor CIO does not take effect until confirmed by the Commission. 241Notice of transfer of CIO’s undertaking to another CIO Having received the copy resolutions referred to in section 240(2), the Commission— (a)may direct the transferor CIO to give public notice of its resolution in such manner as is specified in the direction, and (b)if it gives such a direction, must take into account any representations made to it by persons appearing to it to be interested in the transferor CIO, where those representations are made to it within the period of 28 days beginning with the date when public notice of the resolution is given by the transferor CIO. 242Cases where confirmation of resolution must or may be refused (1)The Commission must refuse to confirm the resolution of the transferor CIO if it considers that there is a serious risk that the transferee CIO would be unable properly to pursue the purposes of the transferor CIO. (2)The Commission may refuse to confirm the resolution if it is not satisfied that the provision in the constitution of the transferee CIO about the matters mentioned in subsection (3) is— (a)the same, or (b)substantially the same,as the provision about those matters in the constitution of the transferor CIO. (3)The matters are— (a)the purposes of the CIO, (b)the application of property of the CIO on its dissolution, and (c)authorisation for any benefit to be obtained by charity trustees or members of the CIO or persons connected with them. (4)Sections 248 (meaning of “benefit”) and 249 (meaning of “connected person”) apply for the purposes of this section. 243Confirmation of resolution (1)If the Commission does not notify the transferor CIO within the relevant period that it is either confirming or refusing to confirm the transferor CIO’s resolution, the resolution is to be treated as confirmed by the Commission on the day after the end of that period. (2)Subject to subsection (3), “the relevant period” means— (a)if the Commission directs the transferor CIO under section 241 to give public notice of its resolution, the period of 6 months beginning with the date when that notice is given, or (b)otherwise, the period of 6 months beginning with the date when both of the copy resolutions referred to in section 240(2) have been received by the Commission. (3)The Commission may at any time within the period of 6 months mentioned in subsection (2)(a) or (b) give the transferor CIO a notice extending the relevant period by such period (not exceeding 6 months) as is specified in the notice. (4)A notice under subsection (3) must set out the Commission’s reasons for the extension. 244Effect of confirmation of resolution (1)If the resolution of the transferor CIO is confirmed (or treated as confirmed) by the Commission— (a)all the property, rights and liabilities of the transferor CIO become by virtue of this subsection the property, rights and liabilities of the transferee CIO in accordance with the resolution, and (b)the transferor CIO is dissolved. (2)Any gift which— (a)is expressed as a gift to the transferor CIO, and (b)takes effect on or after the date on which the resolution is confirmed (or treated as confirmed),takes effect as a gift to the transferee CIO. CHAPTER 5 Supplementary 245Regulations about winding up, insolvency and dissolution (1)CIO regulations may make provision about— (a)the winding up of CIOs, (b)their insolvency, (c)their dissolution, and (d)their revival and restoration to the register following dissolution. (2)The regulations may, in particular, make provision— (a)about the transfer on the dissolution of a CIO of its property and rights (including property and rights held on trust for the CIO) to the official custodian or another person or body; (b)requiring any person in whose name any stocks, funds or securities are standing in trust for a CIO to transfer them into the name of the official custodian or another person or body; (c)about the disclaiming, by the official custodian or other transferee of a CIO’s property, of title to any of that property; (d)about the application of a CIO’s property cy-près; (e)about circumstances in which charity trustees may be personally liable for contributions to the assets of a CIO or for its debts; (f)about the reversal on a CIO’s revival of anything done on its dissolution. (3)The regulations may— (a)apply any enactment which would not otherwise apply, either without modification or with modifications specified in the regulations, (b)disapply, or modify (in ways specified in the regulations) the application of, any enactment which would otherwise apply. (4)In subsection (3), “enactment” includes a provision of subordinate legislation within the meaning of the Interpretation Act 1978. 246Power to make further provision about CIOs (1)CIO regulations may make further provision about applications for registration of CIOs, the administration of CIOs, the conversion of charitable companies, registered societies and community interest companies into CIOs, the amalgamation of CIOs, and in relation to CIOs generally. (2)The regulations may, in particular, make provision about— (a)the execution of deeds and documents; (b)the electronic communication of messages or documents relevant to a CIO or to any dealing with the Commission in relation to one; (c)the maintenance of registers of members and of charity trustees; (d)the maintenance of other registers (for example, a register of charges over the CIO’s assets). (3)The regulations may— (a)apply any enactment which would not otherwise apply, either without modification or with modifications specified in the regulations, (b)disapply, or modify (in ways specified in the regulations) the application of, any enactment which would otherwise apply. (4)The regulations may, in relation to charities constituted as CIOs— (a)disapply any of sections 29 to 38 (registration of charities), (b)modify the application of any of those sections in ways specified in the regulations. (5)In subsection (3), “enactment” includes a provision of subordinate legislation within the meaning of the Interpretation Act 1978. 247Meaning of “CIO regulations” In this Part “CIO regulations” means regulations made by the Minister. 248Meaning of “benefit” (1)This section applies for the purposes of sections 226(2)(c), 237(5)(c) and 242(3)(c) (cases where Commission may refuse to consent to amendment of constitution, to grant an application for amalgamation or to confirm a resolution transferring a CIO’s undertaking). (2)“Benefit” means a direct or indirect benefit of any nature, except that it does not include any remuneration (within the meaning of section 185) whose receipt may be authorised under that section. 249Meaning of “connected person” (1)This section applies for the purposes of sections 226(2)(c), 237(5)(c) and 242(3)(c). (2)The following persons are connected with a charity trustee or member of a CIO— (a)a child, parent, grandchild, grandparent, brother or sister of the trustee or member; (b)the spouse or civil partner of the trustee or member or of any person falling within paragraph (a); (c)a person carrying on business in partnership with the trustee or member or with any person falling within paragraph (a) or (b); (d)an institution which is controlled— (i)by the trustee or member or by any person falling within paragraph (a), (b) or (c), or (ii)by two or more persons falling within sub-paragraph (i), when taken together. (e)a body corporate in which— (i)the trustee or member or any connected person falling within any of paragraphs (a) to (c) has a substantial interest, or (ii)two or more persons falling within sub-paragraph (i), when taken together, have a substantial interest. (3)Sections 350 to 352 (meaning of child, spouse, civil partner, controlled institution and substantial interest) apply for the purposes of subsection (2). 250Effect of provisions relating to vesting or transfer of property No vesting or transfer of any property in pursuance of any provision of this Part operates as a breach of a covenant or condition against alienation or gives rise to a forfeiture. Part 12 Incorporation of charity trustees General 251Incorporation of charity trustees (1)The Commission may grant a certificate of incorporation of the charity trustees of a charity as a body corporate if— (a)the charity trustees of the charity, in accordance with section 256, apply to the Commission for such a certificate, and (b)the Commission considers that the incorporation of the charity trustees would be in the interests of the charity. (2)Such a certificate is subject to such conditions or directions as the Commission thinks fit to insert in it. (3)But the Commission must not grant such a certificate if the charity— (a)appears to the Commission to be required to be registered in accordance with section 30, but (b)is not so registered. (4)On the grant of such a certificate— (a)the charity trustees of the charity become a body corporate by such name as is specified in the certificate, and (b)any rights or liabilities of those trustees in connection with any property vesting in the body under section 252 become rights or liabilities of that body.Paragraph (b) does not affect the operation of section 254 (liability of charity trustees not affected by incorporation). (5)After their incorporation the charity trustees— (a)may sue and be sued in their corporate name, and (b)have the same powers, and are subject to the same restrictions and limitations, as respects the holding, acquisition and disposal of property for or in connection with the purposes of the charity as they had or were subject to while unincorporated;and any relevant legal proceedings that might have been continued or commenced by or against the charity trustees may be continued or commenced by or against them in their corporate name. (6)In subsection (5) “relevant legal proceedings” means legal proceedings in connection with any property vesting in the incorporated body under section 252. (7)An incorporated body need not have a common seal. 252Estate to vest in incorporated body (1)The certificate of incorporation vests in the incorporated body all real and personal estate, of whatever nature or tenure, belonging to or held by any person or persons in trust for the relevant charity. (2)On the vesting of all real and personal estate under subsection (1), any person or persons in whose name or names any stocks, funds or securities are standing in trust for the relevant charity must transfer them into the name of the incorporated body. (3)Subsections (1) and (2) do not apply to property vested in the official custodian. 253Gifts to take effect as gifts to incorporated body (1)After the incorporation under this Part of the charity trustees of any charity, every relevant donation, gift and disposition of property made— (a)to or in favour of the charity, or the charity trustees of the charity, or (b)otherwise for the purposes of the charity,takes effect as if made to or in favour of the incorporated body or otherwise for the same purposes. (2)For the purposes of subsection (1), a donation, gift or disposition of property is a relevant one if (whether of real or personal property and whether made by deed, will or otherwise)— (a)it was lawfully made before the incorporation but has not actually taken effect, or (b)it is lawfully made after the incorporation. 254Liability of charity trustees not affected by incorporation After a certificate of incorporation has been granted under this Part, all charity trustees of the charity are, despite their incorporation— (a)chargeable for such property as comes into their hands, and (b)answerable and accountable for their own acts, receipts, neglects, and defaults, and for the due administration of the charity and its property,in the same manner and to the same extent as if no such incorporation had been effected. 255Charity trustees bound by conditions in certificate etc. (1)All conditions and directions inserted in any certificate of incorporation are binding upon and must be performed or observed by the charity trustees as trusts of the charity. (2)Section 336 (enforcement of orders of Commission) applies to any charity trustee who fails to perform or observe any such condition or direction as it applies to a person guilty of disobedience to any such order of the Commission as is mentioned in that section. Application procedure 256Applications for incorporation (1)Every application to the Commission for a certificate of incorporation under this Part must be— (a)in writing and signed by the charity trustees of the charity concerned, and (b)accompanied by such documents or information as the Commission may require for the purpose of the application. (2)The Commission may require— (a)any statement contained in any such application, or (b)any document or information supplied under subsection (1)(b),to be verified in such manner as it may specify. 257Requirement to be met before certificate is granted Before a certificate of incorporation is granted under this Part, charity trustees of the charity must have been effectually appointed to the satisfaction of the Commission. 258Certificate conclusive as to compliance with incorporation requirements etc. (1)A certificate of incorporation granted under this Part is conclusive evidence that all the preliminary requirements for incorporation under this Part have been complied with. (2)The date of incorporation mentioned in the certificate is to be treated as being the date at which incorporation has taken place. Administration etc. of charity whose charity trustees are incorporated 259Filling up of vacancies in charity trustees (1)This section applies where a certificate of incorporation is granted under this Part. (2)Vacancies in the number of the charity trustees of the charity must from time to time be filled up so far as required by the constitution or settlement of the charity, or by any conditions or directions in the certificate— (a)by such legal means as would have been available for the appointment of new charity trustees of the charity if no certificate of incorporation had been granted, or (b)otherwise as required by such conditions or directions. 260Execution of documents by incorporated body: general (1)This section and section 261 have effect as respects the execution of documents by an incorporated body. (2)If an incorporated body has a common seal, a document may be executed by the body by the affixing of its common seal. (3)Whether or not it has a common seal, a document may be executed by an incorporated body by being— (a)signed by a majority of the charity trustees of the relevant charity and expressed (in whatever form of words) to be executed by the body, or (b)executed in pursuance of an authority given under section 261(1). (4)A document duly executed by an incorporated body which makes it clear on its face that it is intended by the person or persons making it to be a deed has effect, upon delivery, as a deed; and it is presumed, unless a contrary intention is proved, to be delivered upon its being so executed. (5)In favour of a purchaser a document is to be treated as having been duly executed by an incorporated body if it purports to be signed by— (a)a majority of the charity trustees of the relevant charity, or (b)such of the charity trustees of the relevant charity as are authorised by the charity trustees of that charity to execute it in the name and on behalf of the body,and, if the document makes it clear on its face that it is intended by the person or persons making it to be a deed, it is to be treated as having been delivered upon its being executed. (6)For the purposes of subsection (5) “purchaser”— (a)means a purchaser in good faith for valuable consideration, and (b)includes a lessee, mortgagee or other person who for valuable consideration acquires an interest in property. 261Conferral of authority to execute documents (1)For the purposes of section 260(3)(b) the charity trustees of the relevant charity in the case of an incorporated body may, subject to the trusts of the charity, confer on any two or more of their number— (a)a general authority, or (b)an authority limited in such manner as the charity trustees think fit,to execute in the name and on behalf of the body documents for giving effect to transactions to which the body is a party. (2)An authority under subsection (1)— (a)suffices for any document if it is given in writing or by resolution of a meeting of the charity trustees of the relevant charity, despite the want of any formality that would be required in giving an authority apart from that subsection; (b)may be given so as to make the powers conferred exercisable by any of the charity trustees, or may be restricted to named persons or in any other way; (c)subject to any such restriction, and until it is revoked, has effect, despite any change in the charity trustees of the relevant charity, as a continuing authority given by the charity trustees from time to time of the charity and exercisable by such charity trustees. (3)In any authority under subsection (1) to execute a document in the name and on behalf of an incorporated body there is, unless the contrary intention appears, implied authority also to execute it for the body in the name and on behalf of the official custodian or of any other person, in any case in which the charity trustees could do so. Commission’s powers to amend certificate or dissolve body 262Amendment of certificate of incorporation (1)The Commission may amend a certificate of incorporation— (a)on the application of the incorporated body to which it relates, or (b)of its own motion. (2)Before making any such amendment of its own motion, the Commission must by notice in writing— (a)inform the charity trustees of the relevant charity of its proposals, and (b)invite those charity trustees to make representations to it within a time specified in the notice. (3)The time so specified must be not less than one month from the date of the notice. (4)The Commission— (a)must take into consideration any representations made by those charity trustees within the time so specified, and (b)may then (without further notice) proceed with its proposals either without modification or with such modifications as appear to it to be desirable. (5)The Commission may amend a certificate of incorporation by— (a)making an order specifying the amendment, or (b)issuing a new certificate of incorporation taking account of the amendment. 263Dissolution of incorporated body (1)The Commission may of its own motion make an order dissolving an incorporated body from such date as is specified in the order, if the Commission is satisfied— (a)that the body has no assets or does not operate, (b)that the relevant charity has ceased to exist, (c)that the institution previously constituting, or treated by the Commission as constituting, the relevant charity has ceased to be, or (as the case may be) was not at the time of the body’s incorporation, a charity, or (d)that the purposes of the relevant charity— (i)have been achieved so far as is possible, or (ii)are in practice incapable of being achieved. (2)The Commission may make an order dissolving an incorporated body from such date as is specified in the order, if the Commission is satisfied, on the application of the charity trustees of the relevant charity, that it would be in the interests of the charity for the body to be dissolved. (3)Subject to subsection (4), an order made under this section with respect to an incorporated body has the effect of vesting in the charity trustees of the relevant charity, in trust for that charity, all property for the time being vested— (a)in the body, or (b)in any other person (apart from the official custodian),in trust for that charity. (4)If the Commission so directs in the order— (a)all or any specified part of that property, instead of vesting in the charity trustees of the relevant charity, vests in— (i)a specified person as trustee for, or nominee of, that charity, or (ii)such persons (other than the charity trustees of the relevant charity) as may be specified; (b)any specified investments, or any specified class or description of investments, held by any person in trust for the relevant charity are to be transferred to— (i)the charity trustees of that charity, or (ii)any such person or persons as is or are mentioned in paragraph (a)(i) or (ii).For this purpose “specified” means specified by the Commission in the order. (5)Where an order to which this subsection applies is made with respect to an incorporated body— (a)any rights or liabilities of the body become rights or liabilities of the charity trustees of the relevant charity, and (b)any legal proceedings that might have been continued or commenced by or against the body may be continued or commenced by or against those trustees. (6)Subsection (5) applies to any order under this section by virtue of which— (a)any property vested as mentioned in subsection (3) is vested— (i)in the charity trustees of the relevant charity, or (ii)in any person as trustee for, or nominee of, that charity, or (b)any investments held by any person in trust for the relevant charity are required to be transferred— (i)to the charity trustees of that charity, or (ii)to any person as trustee for, or nominee of, that charity. Supplementary 264Records of applications and certificates (1)The Commission must keep a record of all applications for, and certificates of, incorporation under this Part. (2)Documents sent to the Commission under this Part are to be kept by the Commission for such period as it thinks fit. (3)Documents kept under this section are to be open to public inspection at all reasonable times. (4)Any person who is provided with a copy or extract of any document kept under this section may require it to be certified by a certificate signed by a member of the staff of the Commission. 265Meaning of “incorporated body” and “relevant charity” In this Part— “incorporated body” means a body incorporated under section 251; “the relevant charity”, in relation to an incorporated body, means the charity the charity trustees of which have been incorporated as that body. 266Effect of provisions relating to vesting or transfer of property No vesting or transfer of any property in pursuance of any provision of this Part operates as a breach of a covenant or condition against alienation or gives rise to a forfeiture. Part 13 Unincorporated charities Power to transfer all property of unincorporated charity 267Introduction (1)Section 268 (resolution to transfer all property) applies to a charity if— (a)(subject to subsection (2)) its gross income in its last financial year did not exceed £10,000, (b)it does not hold any designated land, and (c)it is not a company or other body corporate.“Designated land” means land held on trusts which stipulate that it is to be used for the purposes, or any particular purposes, of the charity. (2)Subsection (1)(a) does not apply in relation to a resolution by the charity trustees of a charity— (a)to transfer all its property to a CIO, or (b)to divide its property between two or more CIOs. (3)Where a charity has a permanent endowment, sections 268 to 272 have effect in accordance with sections 273 and 274. (4)In sections 268 to 274 references to the transfer of property to a charity are references to its transfer— (a)to the charity, (b)to the charity trustees, (c)to any trustee for the charity, or (d)to a person nominated by the charity trustees to hold it in trust for the charity,as the charity trustees may determine. 268Resolution to transfer all property (1)The charity trustees of a charity to which this section applies (see section 267) may resolve for the purposes of this section— (a)that all the property of the charity should be transferred to another charity specified in the resolution, or (b)that all the property of the charity should be transferred to two or more charities specified in the resolution in accordance with such division of the property between them as is so specified. (2)Any charity so specified may be either a registered charity or a charity which is not required to be registered. (3)But the charity trustees of a charity (“the transferor charity”) do not have power to pass a resolution under subsection (1) unless they are satisfied— (a)that it is expedient in the interests of furthering the purposes for which the property is held by the transferor charity for the property to be transferred in accordance with the resolution, and (b)that the purposes (or any of the purposes) of any charity to which property is to be transferred under the resolution are substantially similar to the purposes (or any of the purposes) of the transferor charity. (4)Any resolution under subsection (1) must be passed by a majority of not less than two-thirds of the charity trustees who vote on the resolution. (5)Where charity trustees have passed a resolution under subsection (1), they must send a copy of it to the Commission, together with a statement of their reasons for passing it. 269Notice of, and information about, resolution to transfer property (1)Having received the copy of the resolution under section 268(5), the Commission— (a)may direct the charity trustees to give public notice of the resolution in such manner as is specified in the direction, and (b)if it gives such a direction, must take into account any representations made to it— (i)by persons appearing to it to be interested in the charity, and (ii)within the period of 28 days beginning with the date when public notice of the resolution is given by the charity trustees. (2)The Commission may also direct the charity trustees to provide the Commission with additional information or explanations relating to— (a)the circumstances in and by reference to which they have decided to act under section 268, or (b)their compliance with any obligation imposed on them by or under section 268 or this section in connection with the resolution. 270General rule as to when s.268 resolution takes effect Subject to section 271, a resolution under section 268(1) takes effect at the end of the period of 60 days beginning with the date on which the copy of it was received by the Commission. 271S.268 resolution not to take effect or to take effect at later date (1)A resolution does not take effect under section 270 if before the end of— (a)the 60-day period, or (b)that period as modified by subsection (4) or (5),the Commission notifies the charity trustees in writing that it objects to the resolution, either on procedural grounds or on the merits of the proposals contained in the resolution. (2)“The 60-day period” means the period of 60 days mentioned in section 270. (3)“On procedural grounds” means on the grounds that any obligation imposed on the charity trustees by or under section 268 or 269 has not been complied with in connection with the resolution. (4)If under section 269(1) the Commission directs the charity trustees to give public notice of a resolution, the running of the 60-day period is suspended by virtue of this subsection— (a)as from the date on which the direction is given to the charity trustees, and (b)until the end of the period of 42 days beginning with the date on which public notice of the resolution is given by the charity trustees. (5)If under section 269(2) the Commission directs the charity trustees to provide any information or explanations, the running of the 60-day period is suspended by virtue of this subsection— (a)as from the date on which the direction is given to the charity trustees, and (b)until the date on which the information or explanations is or are provided to the Commission. (6)Subsection (7) applies once the period of time, or the total period of time, during which the 60-day period is suspended by virtue of either or both of subsections (4) and (5) exceeds 120 days. (7)At that point the resolution (if not previously objected to by the Commission) is to be treated as if it had never been passed. 272Transfer of property in accordance with s.268 resolution (1)Subsection (2) applies where a resolution under section 268(1) has taken effect. (2)The charity trustees must arrange for all the property of the transferor charity to be transferred in accordance with the resolution, and on terms that any property so transferred— (a)is to be held by the charity to which it is transferred (“the transferee charity”) in accordance with subsection (3), but (b)when so held is nevertheless to be subject to any restrictions on expenditure to which it was subject as property of the transferor charity;and the charity trustees must arrange for the property to be so transferred by such date after the resolution takes effect as they agree with the charity trustees of the transferee charity or charities concerned. (3)The charity trustees of any charity to which property is transferred under this section must secure, so far as is reasonably practicable, that the property is applied for such of its purposes as are substantially similar to those of the transferor charity.But this requirement does not apply if those charity trustees consider that complying with it would not result in a suitable and effective method of applying the property. (4)For the purpose of enabling any property to be transferred to a charity under this section, the Commission may, at the request of the charity trustees of that charity, make orders vesting any property of the transferor charity— (a)in the transferee charity, in its charity trustees or in any trustee for that charity, or (b)in any other person nominated by those charity trustees to hold property in trust for that charity. 273Transfer where charity has permanent endowment: general (1)This section and section 274 provide for the operation of sections 268 to 272 where a charity within section 267(1) has a permanent endowment (whether or not the charity’s trusts contain provision for the termination of the charity). (2)If the charity has both a permanent endowment and other property (“unrestricted property”)— (a)a resolution under section 268(1) must relate to both its permanent endowment and its unrestricted property, and (b)sections 268 to 272 apply— (i)in relation to its unrestricted property, as if references in those sections to all or any of the property of the charity were references to all or any of its unrestricted property, and (ii)in relation to its permanent endowment, in accordance with section 274. (3)If all of the property of the charity is comprised in its permanent endowment, sections 268 to 272 apply in relation to its permanent endowment in accordance with section 274. 274Requirements relating to permanent endowment (1)Sections 268 to 272 apply in relation to the permanent endowment of the charity (as mentioned in section 273(2)(b)(ii) and (3)) with the following modifications. (2)References in sections 268 to 272 to all or any of the property of the charity are references to all or any of the property comprised in its permanent endowment. (3)If the property comprised in its permanent endowment is to be transferred to a single charity, the charity trustees must (instead of being satisfied as mentioned in section 268(3)(b)) be satisfied that the proposed transferee charity has purposes which are substantially similar to all of the purposes of the transferor charity. (4)If the property comprised in its permanent endowment is to be transferred to two or more charities, the charity trustees must (instead of being satisfied as mentioned in section 268(3)(b)) be satisfied— (a)that the proposed transferee charities, taken together, have purposes which are substantially similar to all of the purposes of the transferor charity, and (b)that each of the proposed transferee charities has purposes which are substantially similar to one or more of the purposes of the transferor charity. (5)In the case of a transfer to which subsection (4) applies, the resolution under section 268(1) must provide for the property comprised in the permanent endowment of the charity to be divided between the transferee charities in such a way as to take account of such guidance as may be given by the Commission for the purposes of this section. (6)For the purposes of sections 268 to 272, the references in sections 269(2)(b) and 271(3) to any obligation imposed on the charity trustees by or under section 268 or 269 includes a reference to any obligation imposed on them by virtue of any of subsections (3) to (5). (7)The requirement in section 272(3) applies in the case of every such transfer, and in complying with that requirement the charity trustees of a transferee charity must secure that the application of property transferred to the charity takes account of such guidance as may be given by the Commission for the purposes of this section. (8)Any guidance given by the Commission for the purposes of this section may take such form and be given in such manner as the Commission considers appropriate. Powers to alter purposes or powers etc. of unincorporated charity 275Resolution to replace purposes of unincorporated charity (1)This section applies to a charity if— (a)its gross income in its last financial year did not exceed £10,000, (b)it does not hold any designated land, and (c)it is not a company or other body corporate.“Designated land” means land held on trusts which stipulate that it is to be used for the purposes, or any particular purposes, of the charity. (2)The charity trustees of such a charity may resolve for the purposes of this section that the trusts of the charity should be modified by replacing all or any of the purposes of the charity with other purposes specified in the resolution. (3)The other purposes so specified must be charitable purposes. (4)But the charity trustees of a charity do not have power to pass a resolution under subsection (2) unless they are satisfied— (a)that it is expedient in the interests of the charity for the purposes in question to be replaced, and (b)that, so far as is reasonably practicable, the new purposes consist of or include purposes that are similar in character to those that are to be replaced. (5)Any resolution under subsection (2) must be passed by a majority of not less than two-thirds of the charity trustees who vote on the resolution. (6)Where charity trustees have passed a resolution under subsection (2), they must send a copy of it to the Commission, together with a statement of their reasons for passing it. 276Notice of, and information about, s.275 resolution (1)Having received the copy of the resolution under section 275(6), the Commission— (a)may direct the charity trustees to give public notice of the resolution in such manner as is specified in the direction, and (b)if it gives such a direction, must take into account any representations made to it— (i)by persons appearing to it to be interested in the charity, and (ii)within the period of 28 days beginning with the date when public notice of the resolution is given by the charity trustees. (2)The Commission may also direct the charity trustees to provide the Commission with additional information or explanations relating to— (a)the circumstances in and by reference to which they have decided to act under section 275, or (b)their compliance with any obligation imposed on them by or under section 275 or this section in connection with the resolution. 277General rule as to when s.275 resolution takes effect Subject to section 278, a resolution under section 275(2) takes effect at the end of the period of 60 days beginning with the date on which the copy of it was received by the Commission. 278S.275 resolution not to take effect or to take effect at a later date (1)A resolution does not take effect under section 277 if before the end of— (a)the 60-day period, or (b)that period as modified by subsection (4) or (5),the Commission notifies the charity trustees in writing that it objects to the resolution, either on procedural grounds or on the merits of the proposals contained in the resolution. (2)“The 60-day period” means the period of 60 days mentioned in section 277. (3)“On procedural grounds” means on the grounds that any obligation imposed on the charity trustees by or under section 275 or 276 has not been complied with in connection with the resolution. (4)If under section 276(1) the Commission directs the charity trustees to give public notice of a resolution, the running of the 60-day period is suspended by virtue of this subsection— (a)as from the date on which the direction is given to the charity trustees, and (b)until the end of the period of 42 days beginning with the date on which public notice of the resolution is given by the charity trustees. (5)If under section 276(2) the Commission directs the charity trustees to provide any information or explanations, the running of the 60-day period is suspended by virtue of this subsection— (a)as from the date on which the direction is given to the charity trustees, and (b)until the date on which the information or explanations is or are provided to the Commission. (6)Subsection (7) applies once the period of time, or the total period of time, during which the 60-day period is suspended by virtue of either or both of subsections (4) and (5) exceeds 120 days. (7)At that point the resolution (if not previously objected to by the Commission) is to be treated as if it had never been passed. 279Replacement of purposes in accordance with s.275 As from the time when a resolution takes effect under section 277, the trusts of the charity concerned are to be taken to have been modified in accordance with the terms of the resolution. 280Power to modify powers or procedures of unincorporated charity (1)This section applies to any charity which is not a company or other body corporate. (2)The charity trustees of such a charity may resolve for the purposes of this section that any provision of the trusts of the charity— (a)relating to any of the powers exercisable by the charity trustees in the administration of the charity, or (b)regulating the procedure to be followed in any respect in connection with its administration,should be modified in such manner as is specified in the resolution. (3)Subsection (4) applies if the charity is an unincorporated association with a body of members distinct from the charity trustees. (4)Any resolution of the charity trustees under subsection (2) must be approved by a further resolution which is passed at a general meeting of the body— (a)by a majority of not less than two-thirds of the members entitled to attend and vote at the meeting who vote on the resolution, or (b)by a decision taken without a vote and without any expression of dissent in response to the question put to the meeting. (5)Where— (a)the charity trustees have passed a resolution under subsection (2), and (b)(if subsection (4) applies) a further resolution has been passed under that subsection,the trusts of the charity are to be taken to have been modified in accordance with the terms of the resolution. (6)The trusts are to be taken to have been so modified as from— (a)such date as is specified for this purpose in the resolution under subsection (2), or (b)(if later) the date when any such further resolution was passed under subsection (4). Powers of unincorporated charities to spend capital 281Power of unincorporated charities to spend capital: general (1)This section applies to any available endowment fund of a charity which is not a company or other body corporate. (2)But this section does not apply to a fund if sections 282 to 284 (power to spend larger fund given for particular purpose) apply to it. (3)If the condition in subsection (4) is met in relation to the charity, the charity trustees may resolve for the purposes of this section that the fund, or a portion of it, ought to be freed from the restrictions with respect to expenditure of capital that apply to it. (4)The condition is that the charity trustees are satisfied that the purposes set out in the trusts to which the fund is subject could be carried out more effectively if the capital of the fund, or the relevant portion of the capital, could be expended as well as income accruing to it, rather than just such income. (5)Once the charity trustees have passed a resolution under subsection (3), the fund or portion may by virtue of this section be expended in carrying out the purposes set out in the trusts to which the fund is subject without regard to the restrictions mentioned in that subsection. (6)The fund or portion may be so expended as from such date as is specified for this purpose in the resolution. (7)In this section “available endowment fund”, in relation to a charity, means— (a)the whole of the charity’s permanent endowment if it is all subject to the same trusts, or (b)any part of its permanent endowment which is subject to any particular trusts that are different from those to which any other part is subject. 282Resolution to spend larger fund given for particular purpose (1)This section applies to any available endowment fund of a charity which is not a company or other body corporate if— (a)the capital of the fund consists entirely of property given— (i)by a particular individual, (ii)by a particular institution (by way of grant or otherwise), or (iii)by two or more individuals or institutions in pursuit of a common purpose, and (b)the charity’s gross income in its last financial year exceeded £1,000 and the market value of the endowment fund exceeds £10,000. (2)If the condition in subsection (3) is met in relation to the charity, the charity trustees may resolve for the purposes of this section that the fund, or a portion of it, ought to be freed from the restrictions with respect to expenditure of capital that apply to it. (3)The condition is that the charity trustees are satisfied that the purposes set out in the trusts to which the fund is subject could be carried out more effectively if the capital of the fund, or the relevant portion of the capital, could be expended as well as income accruing to it, rather than just such income. (4)The charity trustees— (a)must send a copy of any resolution under subsection (2) to the Commission, together with a statement of their reasons for passing it, and (b)may not implement the resolution except in accordance with sections 283 and 284. (5)In this section— “available endowment fund” has the same meaning as in section 281; “market value”, in relation to an endowment fund, means— (a)the market value of the fund as recorded in the accounts for the last financial year of the relevant charity, or (b)if no such value was so recorded, the current market value of the fund as determined on a valuation carried out for the purpose. (6)In subsection (1), the reference to the giving of property by an individual includes the individual’s giving it by will. 283Notice of, and information about, s.282 resolution (1)Having received the copy of the resolution under section 282(4), the Commission may— (a)direct the charity trustees to give public notice of the resolution in such manner as is specified in the direction, and (b)if it gives such a direction, must take into account any representations made to it— (i)by persons appearing to it to be interested in the charity, and (ii)within the period of 28 days beginning with the date when public notice of the resolution is given by the charity trustees. (2)The Commission may also direct the charity trustees to provide the Commission with additional information or explanations relating to— (a)the circumstances in and by reference to which they have decided to act under section 282, or (b)their compliance with any obligation imposed on them by or under section 282 or this section in connection with the resolution. 284When and how s.282 resolution takes effect (1)When considering whether to concur with the resolution under section 282(2), the Commission must take into account— (a)any evidence available to it as to the wishes of the donor or donors mentioned in section 282(1)(a), and (b)any changes in the circumstances relating to the charity since the making of the gift or gifts (including, in particular, its financial position, the needs of its beneficiaries, and the social, economic and legal environment in which it operates). (2)The Commission must not concur with the resolution unless it is satisfied— (a)that its implementation would accord with the spirit of the gift or gifts mentioned in section 282(1)(a) (even though it would be inconsistent with the restrictions mentioned in section 282(2)), and (b)that the charity trustees have complied with the obligations imposed on them by or under section 282 or 283 in connection with the resolution. (3)Before the end of the period of 3 months beginning with the relevant date, the Commission must notify the charity trustees in writing— (a)that the Commission concurs with the resolution, or (b)that it does not concur with it. (4)In subsection (3) “the relevant date” means— (a)if the Commission directs the charity trustees under section 283(1) to give public notice of the resolution, the date when that notice is given, and (b)otherwise, the date on which the Commission receives the copy of the resolution in accordance with section 282(4). (5)Where— (a)the charity trustees are notified by the Commission that it concurs with the resolution, or (b)the period of 3 months mentioned in subsection (3) has elapsed without the Commission notifying them that it does not concur with the resolution,the fund or portion may, by virtue of this section, be expended in carrying out the purposes set out in the trusts to which the fund is subject without regard to the restrictions mentioned in section 282(2). Supplementary 285Power to alter sums specified in this Part (1)The Minister may by order amend any provision listed in subsection (2)— (a)by substituting a different sum for the sum for the time being specified in that provision, or (b)if the provision specifies more than one sum, by substituting a different sum for any sum specified in that provision. (2)The provisions are— section 267(1) (income level for purposes of resolution to transfer property of unincorporated charity); section 275(1) (income level for purposes of resolution to replace purposes of unincorporated charity); section 282(1) (income level and market value of fund for purposes of resolution to spend larger fund given for particular purpose). 286Effect of provisions relating to vesting or transfer of property No vesting or transfer of any property in pursuance of any provision of this Part operates as a breach of a covenant or condition against alienation or gives rise to a forfeiture. Part 14 Special trusts 287Meaning of “special trust” (1)In this Act, “special trust” means property which— (a)is held and administered by or on behalf of a charity for any special purposes of the charity, and (b)is so held and administered on separate trusts relating only to that property. (2)But a special trust does not, by itself, constitute a charity for the purposes of Part 8 (charity accounts, reports and returns). 288Power to spend capital subject to special trusts: general (1)This section applies to any available endowment fund of a special trust which, as the result of a direction under section 12(1), is to be treated as a separate charity (“the relevant charity”) for the purposes of this section and sections 289 to 292. (2)But this section does not apply to such a fund if sections 289 to 291 (power to spend capital subject to special trusts: larger fund) apply in relation to it. (3)If the condition in subsection (4) is met in relation to the relevant charity, the charity trustees may resolve for the purposes of this section that the fund, or a portion of it, ought to be freed from the restrictions with respect to expenditure of capital that apply to it. (4)The condition is that the charity trustees are satisfied that the purposes set out in the trusts to which the fund is subject could be carried out more effectively if the capital of the fund, or the relevant portion of the capital, could be expended as well as income accruing to it, rather than just such income. (5)Once the charity trustees have passed a resolution under subsection (3), the fund or portion may, by virtue of this section, be expended in carrying out the purposes set out in the trusts to which the fund is subject without regard to the restrictions mentioned in that subsection. (6)The fund or portion may be so expended as from such date as is specified for this purpose in the resolution. (7)In this section, “available endowment fund” has the same meaning as in section 281 (power of unincorporated charities to spend capital: general). 289Resolution to spend capital subject to special trusts: larger fund (1)This section applies to a fund within section 288(1) if— (a)the capital of the fund consists entirely of property given— (i)by a particular individual, (ii)by a particular institution (by way of grant or otherwise), or (iii)by two or more individuals or institutions in pursuit of a common purpose, and (b)the market value of the fund exceeds £10,000. (2)If the condition in subsection (3) is met in relation to the relevant charity, the charity trustees may resolve for the purposes of this section that the fund, or a portion of it, ought to be freed from the restrictions with respect to expenditure of capital that apply to it. (3)The condition is that the charity trustees are satisfied that the purposes set out in the trusts to which the fund is subject could be carried out more effectively if the capital of the fund, or the relevant portion of the capital, could be expended as well as income accruing to it, rather than just such income. (4)The charity trustees— (a)must send a copy of any resolution under subsection (2) to the Commission, together with a statement of their reasons for passing it, and (b)may not implement the resolution except in accordance with sections 290 and 291. (5)In this section, “market value” has the same meaning as in section 282 (resolution to spend larger fund for given for particular purpose). (6)In subsection (1), the reference to the giving of property by an individual includes the individual’s giving it by will. 290Notice of, and information about, s.289 resolution (1)Having received the copy of the resolution under section 289(4), the Commission may— (a)direct the charity trustees to give public notice of the resolution in such manner as is specified in the direction, and (b)if it gives such a direction, must take into account any representations made to it— (i)by persons appearing to it to be interested in the relevant charity, and (ii)within the period of 28 days beginning with the date when public notice of the resolution is given by the charity trustees. (2)The Commission may also direct the charity trustees to provide the Commission with additional information or explanations relating to— (a)the circumstances in and by reference to which they have decided to act under section 289, or (b)their compliance with any obligation imposed on them by or under section 289 or this section in connection with the resolution. 291When and how s.289 resolution takes effect (1)When considering whether to concur with the resolution under section 289(2), the Commission must take into account— (a)any evidence available to it as to the wishes of the donor or donors mentioned in section 289(1)(a), and (b)any changes in the circumstances relating to the relevant charity since the making of the gift or gifts (including, in particular, its financial position, the needs of its beneficiaries, and the social, economic and legal environment in which it operates). (2)The Commission must not concur with the resolution unless it is satisfied— (a)that its implementation would accord with the spirit of the gift or gifts mentioned in section 289(1)(a) (even though it would be inconsistent with the restrictions mentioned in section 289(2)), and (b)that the charity trustees have complied with the obligations imposed on them by or under section 289 or 290 in connection with the resolution. (3)Before the end of the period of 3 months beginning with the relevant date, the Commission must notify the charity trustees in writing— (a)that the Commission concurs with the resolution, or (b)that it does not concur with it. (4)In subsection (3) “the relevant date” means— (a)if the Commission directs the charity trustees under section 290(1) to give public notice of the resolution, the date when that notice is given, and (b)otherwise, the date on which the Commission receives the copy of the resolution in accordance with section 289(4). (5)Where— (a)the charity trustees are notified by the Commission that it concurs with the resolution, or (b)the period of 3 months mentioned in subsection (3) has elapsed without the Commission notifying them that it does not concur with the resolution,the fund or portion may, by virtue of this section, be expended in carrying out the purposes set out in the trusts to which the fund is subject without regard to the restrictions mentioned in section 289(2). (6)The fund or portion may be so expended as from such date as is specified for this purpose in the resolution. 292Power to alter sum specified in s.289 The Minister may by order amend section 289(1) (market value of fund for purposes of resolution to spend capital subject to special trusts: larger fund) by substituting a different sum for the sum for the time being specified there. Part 15 Local charities Indexes and reviews etc. 293Meaning of “local charity” In this Act, except in so far as the context otherwise requires, “local charity” means, in relation to any area, a charity established for purposes which are— (a)by their nature, or (b)by the trusts of the charity,directed wholly or mainly to the benefit of that area or of part of it. 294Local authority’s index of local charities (1)A council may maintain an index of local charities or of any class of local charities in the council’s area, and may publish information contained in the index, or summaries or extracts taken from it. (2)A council proposing to establish or maintaining under this section an index of local charities or of any class of local charities must, on request, be supplied by the Commission free of charge— (a)with copies of such entries in the register of charities as are relevant to the index, or (b)with particulars of any changes in the entries of which copies have been supplied before;and the Commission may arrange that it will without further request supply a council with particulars of any such changes. (3)An index maintained under this section must be open to public inspection at all reasonable times. 295Reviews of local charities by local authority (1)A council may— (a)subject to the following provisions of this section, initiate, and carry out in co-operation with the charity trustees, a review of the working of any group of local charities with the same or similar purposes in the council’s area, and (b)make to the Commission such report on the review and such recommendations arising from it as the council, after consultation with the trustees, think fit. (2)A council having power to initiate reviews under this section may— (a)co-operate with other persons in any review by them of the working of local charities in the council’s area (with or without other charities), or (b)join with other persons in initiating and carrying out such a review. (3)No review initiated by a council under this section is to extend— (a)to any charity without the consent of the charity trustees, or (b)to any ecclesiastical charity. (4)No review initiated under this section by a district council is to extend to the working in any county of a local charity established for purposes similar or complementary to any services provided by county councils unless the review so extends with the consent of the council of that county. (5)Subsection (4) does not apply in relation to Wales. 296S.294 and s.295: supplementary (1)In sections 294 and 295 and this section “council” means— (a)a district council, (b)a county council, (c)a county borough council, (d)a London borough council, or (e)the Common Council of the City of London. (2)A council may employ any voluntary organisation as their agent for the purposes of sections 294 and 295, on such terms and within such limits (if any) or in such cases as they may agree. (3)In subsection (2), “voluntary organisation” means any body— (a)whose activities are carried on otherwise than for profit, and (b)which is not a public or local authority. (4)A joint board discharging any of a council’s functions has the same powers under sections 294 and 295 and this section as the council as respects local charities in the council’s area which are established for purposes similar or complementary to any services provided by the board. 297Co-operation between charities, and between charities and local authorities (1)Any local council and any joint board discharging any functions of a local council— (a)may make, with any charity established for purposes similar or complementary to services provided by the council or board, arrangements for co-ordinating— (i)the activities of the council or board, and (ii)those of the charity,in the interests of persons who may benefit from those services or from the charity, and (b)is at liberty to disclose to any such charity in the interests of those persons any information obtained in connection with the services provided by the council or board, whether or not arrangements have been made with the charity under this subsection. (2)In subsection (1), “local council” means— (a)in relation to England— (i)a district council, (ii)a county council, (iii)a London borough council, (iv)a parish council, (v)the Common Council of the City of London, or (vi)the Council of the Isles of Scilly, and (b)in relation to Wales— (i)a county council, (ii)a county borough council, or (iii)a community council. (3)Charity trustees may, regardless of anything in the trusts of the charity, by virtue of this subsection do all or any of the following things, if it appears to them likely to promote or make more effective the work of the charity— (a)they may co-operate in any review undertaken under section 295 or otherwise of the working of charities or any class of charities; (b)they may make arrangements with an authority acting under subsection (1) or with another charity for co-ordinating their activities and those of the authority or of the other charity; (c)they may publish information of other charities with a view to bringing them to the notice of those for whose benefit they are intended. (4)Charity trustees may defray the expense of acting under subsection (3) out of any income or money applicable as income of the charity. Parochial charities 298Transfer of property to parish or community council or its appointees (1)This section applies where trustees hold any property— (a)for the purposes of a public recreation ground, or of allotments (whether under inclosure Acts or otherwise), for the benefit of inhabitants of a parish having a parish council or (in Wales) community having a community council, or (b)for other charitable purposes connected with such a parish or community;and it applies to property held for any public purposes as it applies to property held for charitable purposes. But it does not apply where trustees hold property for an ecclesiastical charity. (2)The trustees may, with the approval of the Commission and with the consent of the parish or community council, transfer the property to— (a)the parish or community council, or (b)persons appointed by the parish or community council;and the council or their appointees must hold the property on the same trusts and subject to the same conditions as the trustees did. 299Local authorities’ power to appoint representative trustees (1)This section applies where a parochial charity in a parish or (in Wales) a community is not— (a)an ecclesiastical charity, or (b)a charity founded within the preceding 40 years. (2)If the charity trustees do not include persons— (a)elected by the local government electors or inhabitants of the parish or community, or (b)appointed by the parish council or parish meeting or (in Wales) by the community council or the county council or (as the case may be) county borough council,the parish council or parish meeting or the community council or the county council or county borough council may appoint additional charity trustees, to such number as the Commission may allow. (3)If there is a sole charity trustee not elected or appointed as mentioned in subsection (2), the number of the charity trustees may, with the approval of the Commission, be increased to 3, of whom— (a)one may be nominated by the person holding the office of the sole trustee, and (b)one may be nominated by the parish council or parish meeting or by the community council or the county council or county borough council. 300Powers of appointment deriving from pre-1894 powers (1)Subsection (2) applies where, under the trusts of a charity other than an ecclesiastical charity— (a)the inhabitants of a rural parish (whether in vestry or not), or (b)a select vestry,were formerly (in 1894) entitled to appoint charity trustees for, or trustees or beneficiaries of, the charity. (2)The appointment is to be made— (a)in a parish having a parish council or (in Wales) a community having a community council, by the parish or community council, or in the case of beneficiaries, by persons appointed by the parish or community council; (b)in a parish not having a parish council or (in Wales) a community not having a community council, by the parish meeting or by the county council or (as the case may be) county borough council. (3)Subsection (4) applies where— (a)overseers as such, or (b)except in the case of an ecclesiastical charity, churchwardens as such,were formerly (in 1894) charity trustees of or trustees for a parochial charity in a rural parish, either alone or jointly with other persons. (4)Instead of the former overseer or church warden trustees there are to be trustees (to a number not greater than that of the former overseer or churchwarden trustees) appointed— (a)by the parish council or, if there is no parish council, by the parish meeting, or (b)by the community council or, if there is no community council, by the county council or (as the case may be) county borough council. (5)In this section “formerly (in 1894)” relates to the period immediately before the passing of the Local Government Act 1894 and “former” is to be read accordingly. 301Powers of appointment deriving from pre-1927 powers (1)Subsection (2) applies where, outside Greater London (other than the outer London boroughs), overseers of a parish as such were formerly (in 1927) charity trustees of or trustees for any charity, either alone or jointly with other persons. (2)Instead of the former overseer trustees there are to be trustees (to a number not greater than that of the former overseer trustees) appointed— (a)by the parish council or, if there is no parish council, by the parish meeting, or (b)(in Wales) by the community council or, if there is no community council, by the county council or (as the case may be) county borough council. (3)In the case of an urban parish existing immediately before the passing of the Local Government Act 1972 which after 1st April 1974 is not comprised in a parish, the power of appointment under subsection (2) is exercisable by the district council. (4)In this section “formerly (in 1927)” relates to the period immediately before 1 April 1927 and “former” is to be read accordingly. 302Term of office of trustees appointed under s.299 to s.301 (1)Any appointment of a charity trustee or trustee for a charity which is made by virtue of sections 299 to 301 must be for a term of 4 years, and a retiring trustee is eligible for re-appointment.But this is subject to subsections (2) and (3). (2)On an appointment under section 299, where— (a)no previous appointments have been made by virtue of— (i)section 299, or (ii)the corresponding provision of the Local Government Act 1894, the Charities Act 1960 or the Charities Act 1993, and (b)more than one trustee is appointed,half of those appointed (or as nearly as may be) must be appointed for a term of 2 years. (3)An appointment made to fill a casual vacancy must be for the remainder of the term of the previous appointment. 303S.298 to s.302: supplementary (1)In sections 299 and 300, “parochial charity” means, in relation to any parish or (in Wales) community, a charity the benefits of which are, or the separate distribution of the benefits of which is, confined to inhabitants of— (a)the parish or community, (b)a single ancient ecclesiastical parish which included that parish or community or part of it, or (c)an area consisting of that parish or community with not more than 4 neighbouring parishes or communities. (2)Sections 298 to 302 do not affect the trusteeship, control or management of any foundation or voluntary school within the meaning of the School Standards and Framework Act 1998. (3)Sections 298 to 302— (a)do not apply to the Isles of Scilly, and (b)have effect subject to any order (including any future order) made under any enactment relating to local government with respect to local government areas or the powers of local authorities. Supplementary 304Effect of provisions relating to vesting or transfer of property No vesting or transfer of any property in pursuance of any provision of this Part operates as a breach of a covenant or condition against alienation or gives rise to a forfeiture. Part 16 Charity mergers Registration 305Register of charity mergers (1)There continues to be a register of charity mergers, to be kept by the Commission in such manner as it thinks fit and maintained by it. (2)The register must contain an entry in respect of every relevant charity merger which is notified to the Commission in accordance with section 307 and such procedures as it may determine. 306Meaning of “relevant charity merger” etc. (1)In this Part “relevant charity merger” means— (a)a merger of two or more charities in connection with which one of them (“the transferee”) has transferred to it all the property of the other or others, each of which (a “transferor”) ceases to exist, or is to cease to exist, on or after the transfer of its property to the transferee, or (b)a merger of two or more charities (“transferors”) in connection with which both or all of them cease to exist, or are to cease to exist, on or after the transfer of all of their property to a new charity (“the transferee”). (2)In the case of a merger involving the transfer of property of any charity— (a)which has both a permanent endowment and other property (“unrestricted property”), and (b)whose trusts do not contain provision for the termination of the charity,subsection (1)(a) or (b) applies subject to the modifications in subsection (3). (3)The modifications in relation to any such charity are— (a)the reference to all of its property is to be treated as a reference to all of its unrestricted property, and (b)any reference to its ceasing to exist is to be treated as omitted. (4)In this section and sections 307 and 308— (a)any reference to a transfer of property includes a transfer effected by a vesting declaration, and (b)“vesting declaration” means a declaration to which section 310(2) applies. 307Notification of charity mergers (1)A notification under section 305(2) may be given in respect of a relevant charity merger at any time after— (a)the transfer of property involved in the merger has taken place, or (b)(if more than one transfer of property is so involved) the last of those transfers has taken place. (2)If a vesting declaration is made in connection with a relevant charity merger, a notification under section 305(2) must be given in respect of the merger once the transfer, or the last of the transfers, mentioned in subsection (1) has taken place. (3)A notification under section 305(2) is to be given by the charity trustees of the transferee and must— (a)specify the transfer or transfers of property involved in the merger and the date or dates on which it or they took place, (b)include a statement that appropriate arrangements have been made with respect to the discharge of any liabilities of the transferor charity or charities, and (c)in the case of a notification required by subsection (2), set out the matters mentioned in subsection (4). (4)The matters are— (a)the fact that the vesting declaration in question has been made, (b)the date when the declaration was made, and (c)the date on which the vesting of title under the declaration took place by virtue of section 310(2). 308Details to be entered in register of charity mergers (1)Subsection (2) applies to the entry to be made in the register of charity mergers in respect of a relevant charity merger, as required by section 305(2). (2)The entry must— (a)specify the date when the transfer or transfers of property involved in the merger took place, (b)if a vesting declaration was made in connection with the merger, set out the matters mentioned in section 307(4), and (c)contain such other particulars of the merger as the Commission thinks fit. 309Right to inspect register of charity mergers (1)The register of charity mergers must be open to public inspection at all reasonable times. (2)Where any information contained in the register is not in documentary form, subsection (1) is to be read as requiring the information to be available for public inspection in legible form at all reasonable times. Vesting declarations and effect of merger on certain gifts 310Pre-merger vesting declarations (1)Subsection (2) applies to a declaration which— (a)is made by deed for the purposes of this section by the charity trustees of the transferor, (b)is made in connection with a relevant charity merger, and (c)is to the effect that (subject to subsections (3) and (4)) all of the transferor’s property is to vest in the transferee on such date as is specified in the declaration (“the specified date”). (2)The declaration operates on the specified date to vest the legal title to all of the transferor’s property in the transferee, without the need for any further document transferring it.This is subject to subsections (3) and (4). (3)Subsection (2) does not apply to— (a)any land held by the transferor as security for money subject to the trusts of the transferor (other than land held on trust for securing debentures or debenture stock), (b)any land held by the transferor under a lease or agreement which contains any covenant (however described) against assignment of the transferor’s interest without the consent of some other person, unless that consent has been obtained before the specified date, or (c)any shares, stock, annuity or other property which is only transferable in books kept by a company or other body or in a manner directed by or under any enactment. (4)In its application to registered land within the meaning of the Land Registration Act 2002, subsection (2) is subject to section 27 of that Act (dispositions required to be registered). 311Effect of registering charity merger on gifts to transferor (1)This section applies where a relevant charity merger is registered in the register of charity mergers. (2)Any gift which— (a)is expressed as a gift to the transferor, and (b)takes effect on or after the date of registration of the merger,takes effect as a gift to the transferee, unless it is an excluded gift. (3)A gift is an excluded gift if— (a)the transferor is a charity within section 306(2), and (b)the gift is intended to be held subject to the trusts on which the whole or part of the charity’s permanent endowment is held. 312“Transferor” and “transferee” etc. in s.310 and s.311 (1)In sections 310 and 311— (a)any reference to the transferor, in relation to a relevant charity merger, is a reference to the transferor (or one of the transferors) within the meaning of section 306, and (b)any reference to all of the transferor’s property, where the transferor is a charity within section 306(2), is a reference to all of the transferor’s unrestricted property (within the meaning of section 306(2)(a)). (2)In sections 310 and 311, any reference to the transferee, in relation to a relevant charity merger, is a reference to— (a)the transferee (within the meaning of section 306), if it is a company or other body corporate, and (b)otherwise, the charity trustees of the transferee (within the meaning of section 306). Supplementary 313Effect of provisions relating to vesting or transfer of property No vesting or transfer of any property in pursuance of any provision of this Part operates as a breach of a covenant or condition against alienation or gives rise to a forfeiture. 314Exception for CIOs Nothing in this Part applies in a case where section 235 (amalgamation of CIOs) or 240 (transfer of CIO’s undertaking to another CIO) applies. Part 17 The Tribunal CHAPTER 1 General 315The Tribunal (1)In this Act, “the Tribunal” in relation to any appeal, application or reference, means— (a)the Upper Tribunal, in any case where it is determined by or under Tribunal Procedure Rules that the Upper Tribunal is to hear the appeal, application or reference, or (b)the First-tier Tribunal, in any other case. (2)The Tribunal has jurisdiction to hear and determine— (a)such appeals and applications as may be made to the Tribunal in accordance with Chapter 2, or any other enactment, in respect of decisions, orders or directions of the Commission, and (b)such matters as may be referred to the Tribunal in accordance with Chapter 3 by the Commission or the Attorney General. (3)Such appeals, applications and matters are to be heard and determined by the Tribunal in accordance with Chapters 2 and 3, or any such enactment, taken with— (a)rules made under section 316(2), and (b)Tribunal Procedure Rules. 316Rules relating to appeals, applications or references (1)This section applies in relation to appeals, applications or references to the Tribunal which are mentioned in section 315(2). (2)The Lord Chancellor may make rules— (a)specifying steps which must be taken before appeals, applications or references are made to the Tribunal (and the period within which any such steps must be taken); (b)requiring the Commission to inform persons of their right to appeal or apply to the Tribunal following a final decision, direction or order of the Commission. (3)Tribunal Procedure Rules may make any other provision regulating the exercise of rights to appeal or to apply to the Tribunal and matters relating to the making of references to it. (4)Rules under subsection (2) or (3) may confer a discretion on— (a)the Tribunal, or (b)any other person. (5)Rules of the Lord Chancellor under this section— (a)are to be made by statutory instrument, and (b)are subject to annulment in pursuance of a resolution of either House of Parliament. (6)Rules of the Lord Chancellor under this section may make— (a)different provision for different cases, and (b)such supplemental, incidental, consequential or transitional provision or savings as the Lord Chancellor considers appropriate. 317Appeal from Tribunal (1)For the purposes of sections 11(2)and 13(2) of the Tribunals, Courts and Enforcement Act 2007, the Commission and the Attorney General are to be treated as parties to cases before the Tribunal in respect of any such appeal, application or reference as is mentioned in section 315(2). (2)In the case of an appeal under section 11 or 13 of the Tribunals, Courts and Enforcement Act 2007 against a decision of the Tribunal which determines a question referred to it by the Commission or the Attorney General, the tribunal or court hearing the appeal— (a)must consider afresh the question referred to the Tribunal, and (b)may take into account evidence which was not available to the Tribunal. 318Intervention by Attorney General (1)This section applies to any proceedings— (a)before the Tribunal, or (b)on an appeal from the Tribunal,to which the Attorney General is not a party. (2)The appropriate body may at any stage of the proceedings direct that all the necessary papers in the proceedings be sent to the Attorney General. (3)A direction under subsection (2) may be made by the appropriate body— (a)of its own motion, or (b)on the application of any party to the proceedings. (4)The Attorney General may— (a)intervene in the proceedings in such manner as the Attorney General thinks necessary or expedient, and (b)argue before the appropriate body any question in relation to the proceedings which the appropriate body considers it necessary to have fully argued. (5)Subsection (4) applies whether or not a direction is given under subsection (2). (6)In this section “the appropriate body” means the Tribunal or, in the case of an appeal from the Tribunal, the tribunal or court hearing the appeal. CHAPTER 2 Appeals and applications to Tribunal 319Appeals: general (1)Except in the case of a reviewable matter (see section 322) an appeal may be brought to the Tribunal against any decision, direction or order mentioned in column 1 of Schedule 6. (2)Such an appeal may be brought by— (a)the Attorney General, or (b)any person specified in the corresponding entry in column 2 of Schedule 6. (3)The Commission is to be the respondent to such an appeal. (4)In determining such an appeal the Tribunal— (a)must consider afresh the decision, direction or order appealed against, and (b)may take into account evidence which was not available to the Commission. (5)The Tribunal may— (a)dismiss the appeal, or (b)if it allows the appeal, exercise any power specified in the corresponding entry in column 3 of Schedule 6. 320Appeals: orders under s.52 (1)Section 319(4)(a) does not apply in relation to an appeal against an order made under section 52 (power to call for documents). (2)On such an appeal the Tribunal must consider whether the information or document in question— (a)relates to a charity; (b)is relevant to the discharge of the functions of the Commission or the official custodian. (3)The Tribunal may allow such an appeal only if it is satisfied that the information or document in question does not fall within subsection (2)(a) or (b). 321Reviews (1)An application may be made to the Tribunal for the review of a reviewable matter. (2)Such an application may be made by— (a)the Attorney General, or (b)any person mentioned in the entry in column 2 of Schedule 6 which corresponds to the entry in column 1 which relates to the reviewable matter. (3)The Commission is to be the respondent to such an application. (4)In determining such an application the Tribunal must apply the principles which would be applied by the High Court on an application for judicial review. (5)The Tribunal may— (a)dismiss the application, or (b)if it allows the application, exercise any power mentioned in the entry in column 3 of Schedule 6 which corresponds to the entry in column 1 which relates to the reviewable matter. 322Reviewable matters (1)In this Chapter references to reviewable matters are to— (a)decisions to which subsection (2) applies, and (b)orders to which subsection (3) applies. (2)This subsection applies to decisions of the Commission— (a)to institute an inquiry under section 46 with regard to a particular institution; (b)to institute an inquiry under section 46 with regard to a class of institutions; (c)not to make a common investment scheme under section 96; (d)not to make a common deposit scheme under section 100; (e)not to make an order under section 105 (power to authorise dealings with charity property etc.) in relation to a charity; (f)not to make an order under section 117 (restrictions on dispositions of land) in relation to land held by or in trust for a charity; (g)not to make an order under section 124 (restrictions on mortgages) in relation to a mortgage of land held by or in trust for a charity. (3)This subsection applies to an order made by the Commission under section 147(2) (investigation and audit) in relation to a charitable company. 323Remission of matters to Commission References in column 3 of Schedule 6 to the power to remit a matter to the Commission are to the power to remit the matter— (a)generally, or (b)for determination in accordance with a finding made or direction given by the Tribunal. 324Power to amend provisions relating to appeals and applications to Tribunal (1)The Minister may by order— (a)amend or otherwise modify an entry in Schedule 6, (b)add an entry to Schedule 6, or (c)remove an entry from Schedule 6. (2)An order under subsection (1) may make such amendments, repeals or other modifications of— (a)sections 319 to 323, or (b)an enactment which applies this Chapter and Schedule 6,as the Minister considers appropriate in consequence of any change in Schedule 6 made by the order. (3)Subsections (1) and (2) apply (with the necessary modifications) in relation to section 57 of the Charities Act 2006 as if— (a)that section were contained in this Chapter, and (b)the reference in subsection (2) to sections 319 to 323 included a reference to any other provision relating to appeals to the Tribunal which is contained in Chapter 1 of Part 3 of the Charities Act 2006. CHAPTER 3 References to Tribunal 325References by Commission (1)A question which— (a)has arisen in connection with the exercise by the Commission of any of its functions, and (b)involves either the operation of charity law in any respect or its application to a particular state of affairs,may be referred to the Tribunal by the Commission if the Commission considers it desirable to refer the question to the Tribunal. (2)The Commission may make such a reference only with the consent of the Attorney General. (3)The Commission is to be a party to proceedings before the Tribunal on the reference. (4)The following are entitled to be parties to proceedings before the Tribunal on the reference— (a)the Attorney General, and (b)with the Tribunal’s permission— (i)the charity trustees of any charity which is likely to be affected by the Tribunal’s decision on the reference, (ii)any such charity which is a body corporate, and (iii)any other person who is likely to be so affected. 326References by Attorney General (1)A question which involves— (a)the operation of charity law in any respect, or (b)the application of charity law to a particular state of affairs,may be referred to the Tribunal by the Attorney General if the Attorney General considers it desirable to refer the question to the Tribunal. (2)The Attorney General is to be a party to proceedings before the Tribunal on the reference. (3)The following are entitled to be parties to proceedings before the Tribunal on the reference— (a)the Commission, and (b)with the Tribunal’s permission— (i)the charity trustees of any charity which is likely to be affected by the Tribunal’s decision on the reference, (ii)any such charity which is a body corporate, and (iii)any other person who is likely to be so affected. 327Powers of Commission in relation to matters referred to Tribunal (1)This section applies where a question which involves the application of charity law to a particular state of affairs has been referred to the Tribunal under section 325 or 326. (2)The Commission must not take any steps in reliance on any view as to the application of charity law to that state of affairs until— (a)proceedings on the reference (including any proceedings on appeal) have been concluded, and (b)any period during which an appeal (or further appeal) may ordinarily be made has ended. (3)Where— (a)paragraphs (a) and (b) of subsection (2) are satisfied, and (b)the question has been decided in proceedings on the reference,the Commission must give effect to that decision when dealing with the particular state of affairs to which the reference related. 328Suspension of time limits while reference is in progress (1)Subsection (2) applies if— (a)section 327(2) prevents the Commission from taking any steps which it would otherwise be permitted or required to take, and (b)the steps in question may be taken only during a period specified in an enactment (“the specified period”). (2)The running of the specified period is suspended for the period which— (a)begins with the date on which the question is referred to the Tribunal, and (b)ends with the date on which paragraphs (a) and (b) of section 327(2) are satisfied. (3)Nothing in— (a)this section, or (b)section 271 or 278 (suspension of period during which Commission may object to resolution of unincorporated charity),prevents the specified period being suspended concurrently by virtue of subsection (2) and any of the provisions of sections 271 and 278. 329Agreement for Commission to act while reference is in progress (1)Section 327(2) does not apply in relation to any steps taken by the Commission with the agreement of— (a)the persons who are parties to the proceedings on the reference at the time when those steps are taken, and (b)(if not within paragraph (a)) the charity trustees of any charity which— (i)is likely to be directly affected by the taking of those steps, and (ii)is not a party to the proceedings at that time. (2)The Commission may take those steps despite the suspension in accordance with section 328(2) of any period during which it would otherwise be permitted or required to take them. (3)Section 327(3) does not require the Commission to give effect to a decision as to the application of charity law to a particular state of affairs to the extent that the decision is inconsistent with any steps already taken by the Commission in relation to that state of affairs in accordance with this section. 330Appeals and applications in respect of matters determined on references (1)No appeal or application may be made to the Tribunal by a person to whom subsection (2) applies in respect of an order or decision made, or direction given, by the Commission in accordance with section 327(3). (2)This subsection applies to a person who was at any stage a party to the proceedings in which the question referred to the Tribunal was decided. (3)Any enactment (including one contained in this Act) which provides for an appeal or application to be made to the Tribunal has effect subject to subsection (1). 331Interpretation (1)In this Chapter— “charity law” means— (a)any enactment contained in, or made under, this Act or the Charities Act 2006, (b)any other enactment specified in regulations made by the Minister, and (c)any rule of law which relates to charities, and “enactment” includes an enactment comprised in subordinate legislation (within the meaning of the Interpretation Act 1978), and includes an enactment whenever passed or made. (2)The exclusions contained in section 10(2) (ecclesiastical corporations etc.) do not have effect for the purposes of this Chapter. Part 18 Miscellaneous and supplementary Administrative provisions about charities 332Manner of giving notice of charity meetings, etc. (1)All notices which are required or authorised by the trusts of a charity to be given to a charity trustee, member or subscriber— (a)may be sent by post, and (b)if sent by post, may be addressed to any address given as the address of the charity trustee, member or subscriber in the list of such persons for the time being in use at the office or principal office of the charity. (2)Subsections (3) and (4) apply where a notice is required by the trusts of the charity to be given to a charity trustee, member or subscriber. (3)If the notice is given by post, it is to be treated as having been given by the time at which the letter containing it would be delivered in the ordinary course of post. (4)If the notice is a notice of any meeting or election, the notice need not be given to any charity trustee, member or subscriber who, in the list mentioned in subsection (1)(b), has no address in the United Kingdom. 333Conferral of authority to execute documents (1)Charity trustees may, subject to the trusts of the charity, confer on any two or more of their body— (a)a general authority, or (b)an authority limited in such manner as the charity trustees think fit,to execute in the names and on behalf of the charity trustees documents for giving effect to transactions to which the charity trustees are a party. (2)Any document executed in pursuance of an authority under subsection (1) is of the same effect as if executed by the whole body. (3)An authority under subsection (1)— (a)suffices for any document if it is given in writing or by resolution of a meeting of the charity trustees, despite the want of any formality that would be required in giving an authority apart from that subsection; (b)may be given so as to make the powers conferred exercisable by any of the charity trustees, or may be restricted to named persons or in any other way; (c)subject to any such restriction, and until it is revoked, has effect, despite any change in the charity trustees, as a continuing authority given by the charity trustees from time to time of the charity and exercisable by such charity trustees. (4)In any authority under this section to execute a document in the names and on behalf of charity trustees there is, unless the contrary intention appears, implied authority also to execute it for them in the name and on behalf of the official custodian or of any other person, in any case in which the charity trustees could do so. (5)Where a document purports to be executed in pursuance of this section, then in favour of a person who (then or afterwards) in good faith acquires for money or money’s worth— (a)an interest in or charge on property, or (b)the benefit of any covenant or agreement expressed to be entered into by the charity trustees,it is conclusively presumed to have been duly executed by virtue of this section. (6)The powers conferred by this section are in addition to and not in derogation of any other powers. 334Transfer and evidence of title to property vested in trustees (1)Subsection (2) applies where, under the trusts of a charity, trustees of property held for the purposes of the charity may be appointed or discharged by resolution of a meeting of the charity trustees, members or other persons. (2)A memorandum declaring a trustee to have been so appointed or discharged is sufficient evidence of that fact if the memorandum— (a)is signed either at the meeting by the person presiding or in some other manner directed by the meeting, and (b)is attested by two persons present at the meeting. (3)A memorandum evidencing the appointment or discharge of a trustee under subsection (2), if executed as a deed, has the same operation under section 40 of the Trustee Act 1925 (vesting declarations as respects trust property in deeds appointing or discharging trustees) as if the appointment or discharge were effected by the deed. (4)For the purposes of this section, where a document purports to have been signed and attested as mentioned in subsection (2), then on proof (whether by evidence or as a matter of presumption) of the signature the document is presumed to have been so signed and attested, unless the contrary is shown. (5)This section applies to a memorandum made at any time, except that subsection (3) applies only to those made on or after 1 January 1961. (6)This section applies in relation to any institution to which the Literary and Scientific Institutions Act 1854 applies as it applies in relation to a charity. (7)No vesting or transfer of any property in pursuance of any provision of this section operates as a breach of a covenant or condition against alienation or gives rise to a forfeiture. Enforcement powers of Commission etc. 335Enforcement of requirements by order of Commission (1)If a person fails to comply with any requirement imposed by or under this Act then (subject to subsection (2)) the Commission may by order give that person such directions as it considers appropriate for securing that the default is made good. (2)Subsection (1) does not apply to any such requirement if— (a)a person who fails to comply with, or is persistently in default in relation to, the requirement is liable to any criminal penalty, or (b)the requirement is imposed by— (i)an order of the Commission to which section 336 applies, or (ii)a direction of the Commission to which section 336 applies by virtue of section 338(2). 336Enforcement of orders of Commission (1)A person guilty of disobedience to an order mentioned in subsection (2) may on the application of the Commission to the High Court be dealt with as for disobedience to an order of the High Court. (2)The orders are— (a)an order of the Commission under— section 52(1) (power to call for documents), section 84 (power to direct specified action to be taken), section 85 (power to direct application of charity property), section 87 (supervision of certain Scottish charities), section 155 (power to direct compliance with regulations giving auditors etc. access to information etc.), section 184 (civil consequences of acting while disqualified), section 186 (disqualification of charity trustee or trustee receiving remuneration under section 185), section 263 (dissolution of incorporated body), (b)an order of the Commission under— section 69 (concurrent jurisdiction with High Court for certain purposes), or any of sections 76 and 79 to 81 (powers to act for protection of charities etc.), requiring a transfer of property or payment to be called for or made, or (c)an order of the Commission requiring a default under this Act to be made good. 337Other provisions as to orders of Commission (1)Any order made by the Commission under this Act may include such incidental or supplementary provisions as the Commission thinks expedient for carrying into effect the objects of the order. (2)Where the Commission exercises any jurisdiction to make an order under this Act on an application or reference to it, it may insert any such provisions in the order even though the application or reference does not propose their insertion. (3)Where the Commission makes an order under this Act, the Commission— (a)may itself give such public notice as it thinks fit of the making or contents of the order, or (b)may require it to be given by— (i)any person on whose application the order is made, or (ii)any charity affected by the order. (4)The Commission may, with or without any application or reference to it, discharge an order in whole or in part, and subject or not to any savings or other transitional provisions, if— (a)it made the order under any provision of this Act other than section 263 (dissolution of incorporated body), and (b)at any time within 12 months after it made the order, it is satisfied that the order was made by mistake or on misrepresentation or otherwise than in conformity with this Act. (5)Except for the purposes of subsection (4) or an appeal under this Act, an order made by the Commission under this Act— (a)is to be treated as having been duly and formally made, and (b)is not to be called in question on the ground only of irregularity or informality,but (subject to any further order) has effect according to its tenor. (6)Any order made by the Commission under any provision of this Act may be varied or revoked by a subsequent order so made and may include transitional provisions or savings. 338Directions of the Commission or person conducting inquiry (1)Any direction given by the Commission under any provision of this Act— (a)may be varied or revoked by a further direction given under that provision, and (b)must be given in writing. (2)Sections 336 (enforcement of orders) and 337(1) to (3) and (5) (other provisions as to orders) apply to any such directions as they apply to an order of the Commission. (3)In subsection (1) the reference to the Commission includes, in relation to a direction under section 47(2) (obtaining evidence etc. for the purposes of an inquiry), a reference to any person conducting an inquiry under section 46. (4)Nothing in this section is to be read as applying to any directions contained in an order made by the Commission under section 335(1) (directions for securing that default is made good). 339Service of orders and directions (1)This section applies to any order or direction made or given by the Commission under this Act. (2)Any such order or direction may be served on a person (other than a body corporate) by— (a)delivering it to that person, (b)leaving it at that person’s last known address in the United Kingdom, or (c)sending it by post to that person at that address. (3)Any such order or direction may be served on a body corporate by delivering it or sending it by post— (a)to the registered or principal office of the body in the United Kingdom, or (b)if it has no such office in the United Kingdom, to any place in the United Kingdom where it carries on business or conducts its activities (as the case may be). (4)Any such order or direction may also be served on a person (including a body corporate) by sending it by post to that person at an address notified by that person to the Commission for the purposes of this subsection. (5)In this section any reference to the Commission includes, in relation to a direction under section 47(2) (obtaining evidence etc. for the purposes of an inquiry), a reference to any person conducting an inquiry under section 46. Documents and evidence etc. 340Enrolment and deposit of documents etc. (1)The Commission may provide books in which any deed, will or other document relating to a charity may be enrolled. (2)The Commission may accept for safe keeping any document of or relating to a charity, and the charity trustees or other persons having the custody of documents of or relating to a charity (including a charity which has ceased to exist) may with the consent of the Commission deposit them with the Commission for safe keeping, except in the case of documents required by some other enactment to be kept elsewhere. (3)Regulations made by the Minister may make provision for such documents deposited with the Commission under this section as may be prescribed by the regulations to be destroyed or otherwise disposed of after such period or in such circumstances as may be so prescribed. (4)Subsection (3) applies to any document— (a)transmitted to the Commission under section 52, and (b)kept by the Commission under section 52(3),as if the document had been deposited with the Commission for safe keeping under this section. (5)Subsections (3) and (4) apply (with any necessary adaptations) to documents enrolled by, deposited with or transmitted to the Charity Commissioners for England and Wales under corresponding previous enactments, including in particular the Charitable Trusts Act 1853 to 1939. 341Evidence of documents received by Commission etc. (1)Subsection (2) applies where a document is enrolled by the Commission or is for the time being deposited with the Commission under section 340. (2)Evidence of the document’s contents may be given by means of a copy certified by any member of the staff of the Commission generally or specially authorised by the Commission to act for this purpose. (3)A document purporting to be such a copy is to be received in evidence without proof— (a)of the official position, authority or handwriting of the person certifying it, or (b)of the original document being enrolled or deposited. (4)Subsections (2) and (3) apply to any document— (a)transmitted to the Commission under section 52, and (b)kept by the Commission under section 52(3),as if the document had been deposited with the Commission for safe keeping under section 340. (5)Subsections (2) to (4) apply (with any necessary adaptations) to documents enrolled by, deposited with or transmitted to the Charity Commissioners for England and Wales under corresponding previous enactments, including in particular the Charitable Trusts Act 1853 to 1939. 342Report of inquiry to be evidence in certain proceedings (1)A copy of the report of the person conducting an inquiry under section 46, if certified by the Commission to be a true copy, is admissible in any proceedings to which this section applies— (a)as evidence of any fact stated in the report, and (b)as evidence of the opinion of that person as to any matter referred to in it. (2)This section applies to— (a)any legal proceedings instituted by the Commission under Part 6, and (b)any legal proceedings instituted by the Attorney General in respect of a charity. (3)A document purporting to be a certificate issued for the purposes of subsection (1) is to be— (a)received in evidence, and (b)treated as such a certificate,unless the contrary is proved. 343Evidence of documents issued by Commission etc. (1)Evidence of any order, certificate or other document issued by the Commission may be given by means of a copy retained by it, or taken from a copy so retained, if the copy is certified to be a true copy by any member of the staff of the Commission generally or specially authorised by the Commission to act for this purpose. (2)Evidence of an entry in any register kept by the Commission may be given by means of a copy of the entry, if the copy is certified to be a true copy by any member of the staff of the Commission generally or specially authorised by the Commission to act for this purpose. (3)A document purporting to be such a copy as is mentioned in subsection (1) or (2) is to be received in evidence without proof of the official position, authority or handwriting of the person certifying it. (4)Subsections (1) and (3) apply to any order, certificate or other document issued by the Charity Commissioners for England and Wales as they apply to any order, certificate or other document issued by the Commission. 344Other miscellaneous provisions as to evidence (1)Subsection (2) applies to proceedings to recover or compel payment of any rentcharge or other periodical payment claimed by or on behalf of a charity out of land or of the rents, profits or other income of land, otherwise than as rent incident to a reversion. (2)If it is shown in any proceedings to which this subsection applies that the rentcharge or other periodical payment has at any time been paid for 12 consecutive years to or for the benefit of the charity— (a)that is prima facie evidence of the perpetual liability to it of the land or income, and (b)no proof of its origin is necessary. (3)In any proceedings, the following documents are admissible as evidence of the documents and facts stated in them— (a)the printed copies of the reports of the Commissioners for enquiring concerning charities, 1818 to 1837, who were appointed under the Act 58 Geo. 3 c. 91 and subsequent Acts, and (b)the printed copies of the reports which were made for various counties and county boroughs to the Charity Commissioners by their assistant commissioners and presented to the House of Commons as returns to orders of various dates beginning with 8 December 1890, and ending with 9 September 1909. Offences 345Restriction on institution of proceedings for certain offences (1)No proceedings for an offence to which this section applies are to be instituted except by or with the consent of the Director of Public Prosecutions. (2)This section applies to any offence under— (a)section 41 (offences in connection with statements required in official publications etc.), (b)section 60 (supply of false or misleading information to Commission etc.), (c)section 77(1) (offence of contravening certain orders made for protection of charities), (d)section 173 (offences of failing to supply certain documents), or (e)section 183(1) (criminal consequences of acting while disqualified). 346Offences by bodies corporate (1)If an offence under this Act— (a)is committed by a body corporate, and (b)is proved to have been committed with the consent or connivance of, or to be attributable to any neglect on the part of, an officer of the body corporate,the officer as well as the body corporate is guilty of the offence and liable to be proceeded against and punished accordingly. (2)In this section, “officer”, in relation to a body corporate, means— (a)any director, manager, secretary or other similar officer of the body corporate, or (b)any person who was purporting to act in any such capacity,and, in relation to a body corporate whose affairs are managed by its members, “director” means a member of the body corporate. Regulations and orders 347Regulations and orders: general (1)Any power of the Minister to make any regulations or order under this Act is exercisable by statutory instrument. (2)Subject to sections 348(1) and 349(1), regulations or orders of the Minister under this Act are subject to annulment in pursuance of a resolution of either House of Parliament. (3)Any regulations of the Minister or the Commission and any order of the Minister under this Act may make— (a)different provision for different cases or descriptions of case or different purposes or areas, and (b)such supplemental, incidental, consequential, transitory or transitional provision or savings as the Minister or, as the case may be, the Commission considers appropriate. (4)Nothing in this section applies to an order under paragraph 29 of Schedule 9 (transitory modifications). 348Regulations subject to affirmative procedure etc. (1)Section 347(2) (negative procedure) does not apply to— (a)regulations under section 19 (fees and other amounts payable to Commission) which require the payment of a fee in respect of any matter for which no fee was previously payable; (b)regulations under section 25 (meaning of “principal regulator”) which amend any provision of an Act; (c)regulations under section 245 (regulations about winding up, insolvency and dissolution of CIOs). (2)No regulations within subsection (1)(a) or (c) may be made unless a draft of the regulations has been laid before and approved by a resolution of each House of Parliament. (3)No regulations within subsection (1)(b) may be made (whether alone or with other provisions) unless a draft of the regulations has been laid before and approved by a resolution of each House of Parliament. (4)Before making any regulations under— (a)Part 8 (charity accounts, reports and returns), or (b)section 245 or 246 (certain powers to make regulations about CIOs),the Minister must consult such persons or bodies of persons as the Minister considers appropriate. 349Orders subject to affirmative procedure etc. (1)Section 347(2) (negative procedure) does not apply to— (a)an order under section 23 (power to amend Schedule 3 so as to add or remove exempt charities); (b)an order under section 73(2) (powers to make schemes altering provision made by Acts etc.); (c)an order under section 190 (power to amend provisions relating to indemnity insurance for charity trustees and trustees); (d)an order under section 324 (power to amend provisions relating to appeals and applications to Tribunal). (2)No order within subsection (1)(a) may be made (whether alone or with other provisions) unless a draft of the order has been laid before and approved by a resolution of each House of Parliament. (3)No order within subsection (1)(c) or (d) may be made unless a draft of the order has been laid before and approved by a resolution of each House of Parliament. (4)If a draft of an instrument containing an order under section 23 would, apart from this subsection, be treated for the purposes of the Standing Orders of either House of Parliament as a hybrid instrument, it is to proceed in that House as if it were not such an instrument. Interpretation 350Connected person: child, spouse and civil partner (1)In sections 118(2)(c), 188(1)(a), 200(1)(a) and 249(2)(a), “child” includes a stepchild and an illegitimate child. (2)For the purposes of sections 118(2)(e), 188(1)(b), 200(1)(b) and 249(2)(b)— (a)a person living with another as that person’s husband or wife is to be treated as that person’s spouse; (b)where two people of the same sex are not civil partners but live together as if they were, each of them is to be treated as the civil partner of the other. 351Connected person: controlled institution For the purposes of sections 118(2)(g), 157(1)(a), 188(1)(d), 200(1)(d) and 249(2)(d), a person controls an institution if the person is able to secure that the affairs of the institution are conducted in accordance with the person’s wishes. 352Connected person: substantial interest in body corporate (1)For the purposes of sections 118(2)(h), 157(1)(b), 188(1)(e), 200(1)(e) and 249(2)(e), any such connected person as is there mentioned has a substantial interest in a body corporate if the person or institution in question— (a)is interested in shares comprised in the equity share capital of that body of a nominal value of more than one-fifth of that share capital, or (b)is entitled to exercise, or control the exercise of, more than one-fifth of the voting power at any general meeting of that body. (2)The rules set out in Schedule 1 to the Companies Act 2006 (rules for interpretation of certain provisions of that Act) apply for the purposes of subsection (1) as they apply for the purposes of section 254 of that Act (“connected persons” etc.). (3)In this section “equity share capital” and “share” have the same meaning as in that Act. 353Minor definitions (1)In this Act, except in so far as the context otherwise requires— “company” means a company registered under the Companies Act 2006 in England and Wales or Scotland; “the court” means— (a)the High Court, and (b)within the limits of its jurisdiction, any other court in England and Wales having a jurisdiction in respect of charities concurrent (within any limit of area or amount) with that of the High Court, and includes any judge or officer of the court exercising the jurisdiction of the court; “ecclesiastical charity” has the same meaning as in the Local Government Act 1894; “financial year”— (a)in relation to a charitable company, is to be construed in accordance with section 390 of the Companies Act 2006, and (b)in relation to any other charity, is to be construed in accordance with regulations made by virtue of section 132(3); but this is subject to any provision of regulations made by virtue of section 142(3) (financial years of subsidiary undertakings); “gross income”, in relation to a charity, means its gross recorded income from all sources including special trusts; “independent examiner”, in relation to a charity, means such a person as is mentioned in section 145(1)(a); “members”, in relation to a charity with a body of members distinct from the charity trustees, means any of those members; “the Minister” means the Minister for the Cabinet Office; “trusts”— (a)in relation to a charity, means the provisions establishing it as a charity and regulating its purposes and administration, whether those provisions take effect by way of trust or not, and (b)in relation to other institutions has a corresponding meaning. (2)In this Act, except in so far as the context otherwise requires, “document” includes information recorded in any form, and, in relation to information recorded otherwise than in legible form— (a)any reference to its production is to be read as a reference to the provision of a copy of it in legible form, and (b)any reference to the provision of a copy of, or extract from, it is accordingly to be read as a reference to the provision of a copy of, or extract from, it in legible form. (3)A charity is to be treated for the purposes of this Act as having a permanent endowment unless all property held for the purposes of the charity may be expended for those purposes without distinction between— (a)capital, and (b)income;and in this Act “permanent endowment” means, in relation to any charity, property held subject to a restriction on its being expended for the purposes of the charity. Part 19 Final provisions 354Amendments etc. (1)Schedule 7 contains consequential amendments. (2)Schedule 8 contains transitional provisions and savings. (3)Schedule 9 contains transitory modifications. (4)Schedule 10 contains repeals and revocations. 355Commencement This Act comes into force at the end of the period of 3 months beginning with the day on which it is passed. 356Extent (1)Subject to subsections (2) to (7), this Act extends to England and Wales only. (2)Chapter 1 of Part 1 (meaning of “charity” and “charitable purpose”: general)— (a)extends also to Scotland, but affects the law of Scotland only so far as mentioned in section 7; (b)extends also to Northern Ireland, but affects the law of Northern Ireland only so far as mentioned in section 8. (3)In Part 5 (information powers), sections 54 to 59 (disclosure of information to and by Commission) extend to the whole of the United Kingdom. (4)In Part 6 (application of property cy-près etc.)— (a)section 68(3) and (4) (amendment of Royal charters by Order in Council where body corporate the subject of a scheme), and (b)sections 96 to 104 (common investment or deposit funds),extend also to Northern Ireland. (5)Paragraph 2 of Schedule 7 (construction of references in enactments and documents to Charity Commissioners for England and Wales) extends also to Scotland and Northern Ireland. (6)Subject to any provision made by Schedule 7, any amendment, repeal or revocation made by Schedule 7 or 10 has the same extent as the enactment or provision to which it relates. (7)In Part 2 of Schedule 8 (transitionals and savings: recreational etc. purposes)— (a)paragraphs 9 to 12 extend also to Scotland but paragraphs 10 and 12 affect the law of Scotland only so far as mentioned in those paragraphs; (b)paragraphs 9 to 11 and 13 extend also to Northern Ireland but paragraphs 10 and 13 affect the law of Northern Ireland only so far as mentioned in those paragraphs. 357Index of defined expressions Schedule 11 lists the places where some of the expressions used in this Act are defined or otherwise explained. 358Short title This Act may be cited as the Charities Act 2011. ### Part 1 General order-making powers Powers of Ministers 1Power to abolish (1)A Minister may by order abolish a body or office specified in Schedule 1. (2)An order under subsection (1) may include provision transferring functions from the body or office being abolished to an eligible person. (3)In this Act, “eligible person” means— (a)a Minister, the Scottish Ministers, a Northern Ireland department or the Welsh Ministers, (b)any other person exercising public functions, (c)a company limited by guarantee, (d)a community interest company, (e)a co-operative society, (f)a community benefit society, (g)a charitable incorporated organisation, or (h)a body of trustees or other unincorporated body of persons. 2Power to merge (1)A Minister may by order merge any group of bodies or offices specified in Schedule 2. (2)In this section, to “merge” a group means— (a)to abolish all the bodies or offices in the group, create a new body corporate or office and transfer some or all of the functions of the abolished bodies or offices to the new one, or (b)to abolish all but one of the bodies or offices in the group and to transfer some or all of the functions of the abolished bodies or offices to the remaining one. (3)An order under subsection (1) may include provision to transfer a function from a body or office being abolished to an eligible person not included in the group. 3Power to modify constitutional arrangements (1)A Minister may by order modify the constitutional arrangements of a body or office specified in Schedule 3. (2)In this Act, references to the constitutional arrangements of a body include matters relating to— (a)the name of the body; (b)the chair of the body (including qualifications and procedures for appointment and functions); (c)members of the body (including the number of members, qualifications and procedures for appointment and functions); (d)employees of the body exercising functions on its behalf (including qualifications and procedures for appointment and functions); (e)the body’s powers to employ staff; (f)governing procedures and arrangements (including the role and membership of committees and sub-committees); (g)reports and accounts; (h)the extent to which the body is accountable to Ministers; (i)the extent to which the body exercises functions on behalf of the Crown. (3)In this Act, references to the constitutional arrangements of an office include matters relating to— (a)the name of the office; (b)appointment of the office-holder (including qualifications and procedures for appointment); (c)the office-holder’s powers to employ staff; (d)reports and accounts; (e)the extent to which the office-holder is accountable to Ministers; (f)the extent to which the office-holder exercises functions on behalf of the Crown. 4Power to modify funding arrangements (1)A Minister may by order modify the funding arrangements of a body or office specified in Schedule 4. (2)The consent of the Treasury is required to make an order under this section. (3)In this Act, references to modifying the funding arrangements of a body or office include— (a)modifying the extent to which it is funded by a Minister; (b)conferring power on the body, or the office-holder, to charge fees for the exercise of a function (and to determine their amount). 5Power to modify or transfer functions (1)A Minister may by order— (a)modify the functions of a body, or the holder of an office, specified in Schedule 5, or (b)transfer a function of such a person to an eligible person. (2)In this Act, references to modifying the functions of a person include— (a)conferring a function on the person; (b)abolishing a function of the person; (c)changing the purpose or objective for which the person exercises a function; (d)changing the conditions under which the person exercises a function. 6Consequential provision etc (1)An order under sections 1 to 5 may make consequential, supplementary, incidental or transitional provision, or savings. (2)Where an order under section 1, 2 or 5(1)(b) transfers functions, the power in subsection (1) includes power to make consequential or supplementary provision— (a)to modify functions of the transferor or transferee; (b)to modify the constitutional or funding arrangements of the transferor or transferee. (3)Where an order under section 5(1)(a) modifies functions of a body or office-holder, the power in subsection (1) includes power to make consequential or supplementary provision to modify the constitutional or funding arrangements of the body or office. (4)The consent of the Treasury is required to make provision by virtue of subsection (2)(b) or (3) modifying funding arrangements. (5)An order under sections 1 to 5 may include provision repealing the entry in the Schedule by virtue of which the order was made. Powers of Ministers: supplementary 7Restrictions on Ministerial powers (1)The modification or transfer of a function by an order under sections 1 to 5 must not prevent it (to the extent that it continues to be exercisable) from being exercised independently of Ministers in any of the following cases. (2)Those cases are— (a)where the function is a judicial function (whether or not exercised by a court or a tribunal); (b)where the function’s exercise involves enforcement activities in relation to obligations imposed on a Minister; (c)where the function’s exercise otherwise constitutes the exercise of oversight or scrutiny of the actions of a Minister. (3)Provision made by an order under sections 1 to 5 must be proportionate to the reasons for the order. (4)In this section “enforcement activities” means— (a)the bringing of legal proceedings or the provision of assistance with the bringing of legal proceedings, (b)the carrying out of an investigation with a view to bringing legal proceedings or to providing such assistance, or (c)the taking of steps preparatory to any of those things. 8Purpose and conditions (1)A Minister may make an order under sections 1 to 5 only if the Minister considers that the order serves the purpose of improving the exercise of public functions, having regard to— (a)efficiency, (b)effectiveness, (c)economy, and (d)securing appropriate accountability to Ministers. (2)A Minister may make an order under those sections only if the Minister considers that— (a)the order does not remove any necessary protection, and (b)the order does not prevent any person from continuing to exercise any right or freedom which that person might reasonably expect to continue to exercise. 9Devolution (1)An order under sections 1 to 5 requires the consent of the Scottish Parliament to make provision— (a)which would be within the legislative competence of the Scottish Parliament if it were contained in an Act of that Parliament, or (b)which modifies the functions of the Scottish Ministers. (2)Consent is not required under subsection (1)(b) in relation to provision abolishing a function of the Scottish Ministers which relates to a body abolished under section 1 or 2. (3)An order under sections 1 to 5 requires the consent of the Northern Ireland Assembly to make provision— (a)which would be within the legislative competence of the Northern Ireland Assembly if it were contained in an Act of the Assembly, or (b)which modifies the functions of a person within subsection (4). (4)The persons referred to in subsection (3)(b) are— (a)the First Minister and deputy First Minister of Northern Ireland; (b)a Northern Ireland Minister; (c)the Attorney General for Northern Ireland; (d)a Northern Ireland department; (e)a person exercising public functions in relation to a transferred matter (within the meaning of the Northern Ireland Act 1998). (5)Consent is not required under subsection (3)(a) in relation to any provision if— (a)a Bill for an Act of the Northern Ireland Assembly containing the provision would require the consent of the Secretary of State under section 8 of the Northern Ireland Act 1998, and (b)the provision does not affect, other than incidentally, a transferred matter (within the meaning of that Act). (6)An order under sections 1 to 5 requires the consent of the National Assembly for Wales to make provision which would be within the legislative competence of the Assembly if it were contained in an Act of the Assembly. (7)An order under sections 1 to 5 requires the consent of the Welsh Ministers to make provision not falling within subsection (6)— (a)which modifies the functions of the Welsh Ministers, the First Minister for Wales or the Counsel General to the Welsh Assembly Government, or (b)which could be made by any of those persons. (8)In subsection (7), references to a function do not include— (a)a function of giving consent to, or being consulted about, the exercise of a function by a Minister, or (b)a function relating to the constitutional arrangements of a body or office. 10Consultation (1)A Minister proposing to make an order under sections 1 to 5 must consult— (a)the body or the holder of the office to which the proposal relates, (b)such other persons as appear to the Minister to be representative of interests substantially affected by the proposal, (c)the Scottish Ministers, if the proposal relates to any matter, so far as applying in or as regards Scotland, in relation to which the Scottish Ministers exercise functions (and where the consent of the Scottish Parliament is not required under section 9), (d)a Northern Ireland department, if the proposal relates to any matter, so far as applying in or as regards Northern Ireland, in relation to which the department exercises functions (and where the consent of the Northern Ireland Assembly is not required under section 9), (e)the Welsh Ministers, if the proposal relates to any matter, so far as applying in or as regards Wales, in relation to which the Welsh Ministers exercise functions (and where the consent of the National Assembly for Wales or the Welsh Ministers is not required under section 9), (f)where the functions affected by the proposal relate to the administration of justice, the Lord Chief Justice, and (g)such other persons as the Minister considers appropriate. (2)If, as a result of consultation under subsection (1), it appears to the Minister appropriate to change the whole or part of the proposal, the Minister must carry out such further consultation with respect to the changes as seems appropriate. (3)It is immaterial for the purposes of this section whether consultation is carried out before or after the commencement of this section. (4)Subsection (1)(a) does not apply to a body with no members or an office which is vacant; and, where a body is consulted under that provision, any vacancy in its membership is immaterial. 11Procedure (1)If after consultation under section 10 the Minister considers it appropriate to proceed with the making of an order under sections 1 to 5, the Minister may lay before Parliament— (a)a draft order, and (b)an explanatory document. (2)The explanatory document must— (a)introduce and give reasons for the order, (b)explain why the Minister considers that— (i)the order serves the purpose in section 8(1), and (ii)the conditions in section 8(2)(a) and (b) are satisfied, (c)if the order contains provision made by virtue of more than one entry in Schedules 1 to 5, explain why the Minister considers it appropriate for it to do so, and (d)contain a summary of representations received in the consultation. (3)The Minister may not act under subsection (1) before the end of the period of twelve weeks beginning with the day on which the consultation began. (4)Subject as follows, if after the expiry of the 40-day period the draft order laid under subsection (1) is approved by a resolution of each House of Parliament, the Minister may make an order in the terms of the draft order. (5)The procedure in subsections (6) to (9) shall apply to the draft order instead of the procedure in subsection (4) if— (a)either House of Parliament so resolves within the 30-day period, or (b)a committee of either House charged with reporting on the draft order so recommends within the 30-day period and the House to which the recommendation is made does not by resolution reject the recommendation within that period. (6)The Minister must have regard to— (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. (7)If after the expiry of the 60-day period the draft order is approved by a resolution of each House of Parliament, the Minister may make an order in the terms of the draft order. (8)If after the expiry of the 60-day period the Minister wishes to proceed with the draft order but with material changes, the Minister may lay before Parliament— (a)a revised draft order, and (b)a statement giving a summary of the changes proposed. (9)If the revised draft order is approved by a resolution of each House of Parliament, the Minister may make an order in the terms of the revised draft order. (10)For the purposes of this section an order is made in the terms of a draft order or revised draft order if it contains no material changes to its provisions. (11)In this section, references to the “30-day”, “40-day” and “60-day” periods in relation to any draft order are to the periods of 30, 40 and 60 days beginning with the day on which the draft order was laid before Parliament. (12)For the purposes of subsection (11) no account is to be taken of any time during which Parliament is dissolved or prorogued or during which either House is adjourned for more than four days. 12Time limits Any entry in Schedules 1 to 5 ceases to have effect at the end of the period of five years beginning with the day on which it came into force (without affecting any order already made by virtue of that entry). Powers of Welsh Ministers 13Powers relating to environmental bodies (1)The Welsh Ministers may by order modify— (a)the functions of the Countryside Council for Wales (“the CCW”), (b)the Welsh devolved functions of the Environment Agency, (c)the Welsh devolved functions of the Forestry Commissioners, or (d)the functions of a Welsh Flood and Coastal Committee. (2)The Welsh Ministers may by order transfer any function of the CCW to— (a)a new body, (b)the Welsh Ministers, (c)the Environment Agency or the Forestry Commissioners, or (d)any other person exercising Welsh devolved functions. (3)The Welsh Ministers may by order transfer any Welsh devolved function of the Environment Agency or the Forestry Commissioners to— (a)a new body, (b)the Welsh Ministers, (c)the CCW, or (d)any other person exercising Welsh devolved functions. (4)The Welsh Ministers may by order transfer any function of a Welsh Flood and Coastal Committee to— (a)a new body, (b)the Welsh Ministers, or (c)any other person exercising Welsh devolved functions. (5)The Welsh Ministers may by order transfer any function of theirs relating to the environment to— (a)a new body, (b)the CCW, or (c)the Environment Agency or the Forestry Commissioners. (6)The Welsh Ministers may by order transfer any Welsh environmental function from the person whose function it is to— (a)a new body, (b)the CCW, or (c)the Environment Agency or the Forestry Commissioners. (7)The Welsh Ministers may by order establish a body corporate for the purposes of this section; and in this section references to a “new body” are to any body so established. (8)In this section “Welsh Flood and Coastal Committee” means a Regional Flood and Coastal Committee established under section 22(1)(c) of the Flood and Water Management Act 2010 for a region wholly or mainly in Wales. (9)The Welsh Ministers must consult the Secretary of State before making an order under subsection (1) or (4) relating to a Welsh Flood and Coastal Committee for a region not wholly in Wales. 14Powers relating to other bodies (1)The Welsh Ministers may by order abolish any of the following— (a)an agricultural dwelling-house advisory committee for an area in, or consisting of, Wales; (b)an agricultural wages committee for an area in, or consisting of, Wales; (c)the Environment Protection Advisory Committee established pursuant to section 12(6) of the Environment Act 1995 (Wales); (d)the regional and local fisheries advisory committee established pursuant to section 13(5) of that Act (Wales); (e)a regional advisory committee maintained under section 37(1)(b) of the Forestry Act 1967 for a conservancy in, or consisting of, Wales. (2)An order under subsection (1) may include provision transferring functions from the body being abolished to— (a)the Welsh Ministers, or (b)any other person exercising Welsh devolved functions. (3)The Welsh Ministers may by order modify the funding arrangements of inspectors appointed by the Welsh Ministers under section 86 of the Water Industry Act 1991 (assessors for the enforcement of water quality). (4)In subsection (3), the reference to modifying funding arrangements has effect as if the reference in section 4(3)(a) to a Minister were to the Welsh Ministers. (5)The Welsh Ministers may by order do any of the following in relation to an internal drainage board for an area wholly or mainly in Wales— (a)modify its constitutional arrangements; (b)modify its functions; (c)transfer any of its functions to— (i)the Welsh Ministers; (ii)any other person exercising Welsh devolved functions; (iii)a company limited by guarantee; (iv)a community interest company; (v)a body of trustees or other unincorporated body of persons. (6)In subsection (5)(a), the reference to modifying constitutional arrangements has effect as if the references in section 3(2)(h) and (3)(e) to Ministers were to the Welsh Ministers. (7)The Welsh Ministers must consult the Secretary of State before making an order under subsection (5) relating to an internal drainage board for an area not wholly in Wales. 15Powers of Welsh Ministers: consequential provision etc (1)An order under section 13 or 14 may contain consequential, supplementary, incidental or transitional provision, or savings. (2)Where an order under either of those sections transfers functions, the power in subsection (1) includes power to make consequential or supplementary provision— (a)to modify the constitutional or funding arrangements of the transferor or transferee (subject to subsection (4)), (b)to modify functions of the transferor or transferee, or (c)to confer powers of direction on the Welsh Ministers in relation to functions transferred. (3)Where an order under either of those sections modifies functions of a body or office-holder, the power in subsection (1) includes power to make consequential or supplementary provision to modify the constitutional or funding arrangements of the body or office (subject to subsection (4)). (4)Subsections (2)(a) and (3) do not confer power on the Welsh Ministers to modify the constitutional or funding arrangements of— (a)the Environment Agency, (b)the Forestry Commissioners, or (c)any other cross-border operator. (5)In subsections (2) to (4) references to modifying constitutional or funding arrangements have effect as if the references in sections 3(2)(h) and (3)(e) and 4(3)(a) to a Minister were to the Welsh Ministers. (6)The Secretary of State may by order modify the constitutional or funding arrangements of a person referred to in subsection (4)(a) to (c) in consequence of an order made by the Welsh Ministers under section 13 or 14. (7)The reference in subsection (6) to modifying the funding arrangements of a person includes modifying the extent to which the person is funded by the Welsh Ministers, but the Secretary of State may only modify the extent to which a person is funded by the Welsh Ministers with their consent. Powers of Welsh Ministers: supplementary 16Purpose and conditions for orders made by Welsh Ministers (1)The Welsh Ministers may make an order under section 13 or 14 only if they consider that the order serves the purpose of improving the exercise of public functions having regard to— (a)efficiency, (b)effectiveness, (c)economy, and (d)securing appropriate accountability to the Welsh Ministers. (2)The Welsh Ministers may make an order under either of those sections only if they consider that— (a)the order does not remove any necessary protection, and (b)the order does not prevent any person from continuing to exercise any right or freedom which that person might reasonably expect to continue to exercise. 17Consent of UK Ministers (1)The Secretary of State’s consent is required for an order under section 13 or 14 which transfers a function to, or confers a function on— (a)the Environment Agency, (b)the Forestry Commissioners, or (c)any other cross-border operator. (2)The Secretary of State’s consent is required for an order under section 13 or 14 made by virtue of section 15 which in any other way modifies the non-devolved functions of a person referred to in subsection (1). (3)A Minister’s consent is required for an order under section 13 or 14 which transfers a function to, or modifies the functions of, the Minister. 18Consultation by Welsh Ministers (1)Where the Welsh Ministers propose to make an order under section 13 or 14 they must consult— (a)any body or person exercising public functions to which the proposal relates, (b)such other persons as appear to them to be representative of interests substantially affected by the proposal, and (c)such other persons as they consider appropriate. (2)If, as a result of consultation under subsection (1), it appears to the Welsh Ministers appropriate to change the whole or part of the proposal, they must carry out such further consultation with respect to the changes as seems appropriate. (3)It is immaterial for the purposes of this section whether consultation is carried out before or after the commencement of this section. (4)Subsection (1)(a) does not apply to a body with no members or an office which is vacant; and, where a body is consulted under that provision, any vacancy in its membership is immaterial. 19Procedure for orders by Welsh Ministers etc (1)If after consultation under section 18 the Welsh Ministers consider it appropriate to proceed with the making of an order under section 13 or 14, the Welsh Ministers may lay before the National Assembly for Wales— (a)a draft order, and (b)an explanatory document. (2)The explanatory document must— (a)introduce and give reasons for the order, (b)explain why the Welsh Ministers consider that— (i)the order serves the purpose in section 16(1), and (ii)the conditions in section 16(2)(a) and (b) are satisfied, and (c)contain a summary of representations received in the consultation. (3)The Welsh Ministers may not act under subsection (1) before the end of the period of twelve weeks beginning with the day on which the consultation began. (4)Subject as follows, if after the expiry of the 40-day period the draft order laid under subsection (1) is approved by a resolution of the National Assembly for Wales, the Welsh Ministers may make an order in the terms of the draft order. (5)The procedure in subsections (6) to (9) shall apply to the draft order instead of the procedure in subsection (4) if— (a)the National Assembly for Wales so resolves within the 30-day period, or (b)a committee of the Assembly charged with reporting on the draft order so recommends within the 30-day period and the Assembly does not by resolution reject the recommendation within that period. (6)The Welsh Ministers must have regard to— (a)any representations, (b)any resolution of the National Assembly for Wales, and (c)any recommendations of a committee of the Assembly charged with reporting on the draft order,made during the 60-day period with regard to the draft order. (7)If after the expiry of the 60-day period the draft order is approved by a resolution of the National Assembly for Wales, the Welsh Ministers may make an order in the terms of the draft order. (8)If after the expiry of the 60-day period the Welsh Ministers wish to proceed with the draft order but with material changes, the Welsh Ministers may lay before the National Assembly for Wales— (a)a revised draft order, and (b)a statement giving a summary of the changes proposed. (9)If the revised draft order is approved by a resolution of the National Assembly for Wales, the Welsh Ministers may make an order in the terms of the revised draft order. (10)For the purposes of this section an order is made in the terms of a draft order or revised draft order if it contains no material changes to its provisions. (11)In this section, references to the “30-day”, “40-day” and “60-day” periods in relation to any draft order are to the periods of 30, 40 and 60 days beginning with the day on which the draft order was laid before the National Assembly for Wales. (12)For the purposes of subsection (11) no account is to be taken of any time during which the National Assembly for Wales is dissolved or is in recess for more than four days. (13)An order may not be made by the Secretary of State under section 15(6) unless a draft of the instrument containing the order has been laid before, and approved by a resolution of, each House of Parliament. Restrictions on powers of Ministers and Welsh Ministers 20Restriction on creation of functions (1)An order under the preceding provisions of this Act may not create— (a)a power to make subordinate legislation, (b)a power of forcible entry, search or seizure, or (c)a power to compel the giving of evidence. (2)Subsection (1) does not prevent an order from repealing and re-enacting a power. 21Restriction on transfer and delegation of functions (1)An order under the preceding provisions of this Act may not transfer any function to— (a)a charity, or (b)a person not otherwise exercising public functions who is not a charity,unless the charity or person has consented. (2)An order under the preceding provisions of this Act may not transfer an excluded function to a person not otherwise exercising public functions. (3)In subsection (2) “excluded function” means— (a)a function of a tribunal exercising the judicial power of the State, (b)a power to make subordinate legislation, (c)a power of forcible entry, search or seizure, (d)a power to compel the giving of evidence, or (e)any other function the exercise or non-exercise of which would necessarily interfere with, or otherwise affect, the liberty of an individual. 22Restriction on creation of criminal offences (1)An order under the preceding provisions of this Act may not, in relation to any transfer or modification of functions, create a criminal offence that is punishable— (a)on indictment, with imprisonment for a term exceeding two years, or (b)on summary conviction, with— (i)imprisonment for a term exceeding the normal maximum term, or (ii)a fine exceeding level 5 on the standard scale. (2)In subsection (1)(b)(i) “the normal maximum term” means— (a)in relation to England and Wales— (i)in the case of a summary offence, 51 weeks, and (ii)in the case of an offence triable either way, twelve months; (b)in relation to Scotland— (i)in the case of an offence triable only summarily, six months, and (ii)in the case of an offence triable either summarily or on indictment, twelve months; (c)in relation to Northern Ireland, six months. (3)In Scotland, in the case of an offence which, if committed by an adult, is triable either on indictment or summarily and is not an offence triable on indictment only by virtue of— (a)Part 5 of the Criminal Justice Act 1988, or (b)section 292(6) and (7) of the Criminal Procedure (Scotland) Act 1995,the reference in subsection (1)(b)(ii) to a fine exceeding level 5 on the standard scale is to be construed as a reference to the statutory maximum. (4)In England and Wales— (a)in the case of a summary offence committed before the coming into force of section 281(5) of the Criminal Justice Act 2003, the reference in subsection (2)(a)(i) to 51 weeks is to be read as a reference to six months, and (b)in the case of an offence triable either way which is committed before the coming into force of section 154(1) of that Act, the reference in subsection (2)(a)(ii) to twelve months is to be read as a reference to six months. (5)Subsection (1) does not prevent an order from repealing and re-enacting a criminal offence. Transfer of property, rights and liabilities 23Transfer schemes (1)A scheme for the transfer of property, rights and liabilities (a “transfer scheme”) may be made by— (a)a Minister, in connection with an order under sections 1 to 5; (b)the Welsh Ministers, in connection with an order under section 13 or 14. (2)In the case of a transfer scheme under subsection (1)(a), property, rights and liabilities must be transferred to — (a)a Minister, where the scheme is made in connection with an order under section 3 or 4 (modification of constitutional or funding arrangements), or (b)an eligible person or a body corporate, in any other case. (3)In the case of a transfer scheme under subsection (1)(b), property, rights and liabilities must be transferred to— (a)the Welsh Ministers, (b)a person exercising Welsh devolved functions, or (c)a body corporate. (4)A transfer scheme may not transfer anything to a charity unless it has consented. (5)The things that may be transferred under a transfer scheme include— (a)property, rights and liabilities that could not otherwise be transferred; (b)property acquired, and rights and liabilities arising, after the making of the scheme. (6)A transfer scheme may make consequential, supplementary, incidental or transitional provision and may in particular— (a)create rights, or impose liabilities, in relation to property or rights transferred; (b)make provision about the continuing effect of things done by the transferor in respect of anything transferred; (c)make provision about the continuation of things (including legal proceedings) in the process of being done by, on behalf of or in relation to the transferor in respect of anything transferred; (d)make provision for references to the transferor in an instrument or other document in respect of anything transferred to be treated as references to the transferee; (e)make provision for the shared ownership or use of property; (f)if the TUPE regulations do not apply in relation to the transfer, make provision which is the same or similar. (7)A transfer scheme may provide— (a)for modification by agreement; (b)for modifications to have effect from the date when the original scheme came into effect. (8)For the purposes of this section— (a)an individual who holds employment in the civil service is to be treated as employed by virtue of a contract of employment, and (b)the terms of the individual’s employment in the civil service are to be regarded as constituting the terms of the contract of employment. (9)In this section— “civil service” means the civil service of the State; “TUPE regulations” means the Transfer of Undertakings (Protection of Employment) Regulations 2006 (SI 2006/246); references to rights and liabilities include rights and liabilities relating to a contract of employment; references to the transfer of property include the grant of a lease. 24Transfer schemes: procedure (1)A transfer scheme made by a Minister under section 23(1)(a) may be included in an order under sections 1 to 5; but if not so included must be laid before Parliament after being made. (2)A transfer scheme made by the Welsh Ministers under section 23(1)(b) may be included in an order under section 13 or 14; but if not so included must be laid before the National Assembly for Wales after being made. (3)The Secretary of State’s consent is required for a transfer scheme under section 23(1)(b) transferring anything from or to the Environment Agency, the Forestry Commissioners or a cross-border operator. 25Transfer schemes: taxation (1)The Treasury may by order make provision varying the way in which a relevant tax has effect in relation to— (a)anything transferred under a scheme under section 23, or (b)anything done for the purposes of, or in relation to, a transfer under such a scheme. (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 anything transferred; (b)anything transferred to be treated in a specified way for the purposes of a tax provision; (c)the person making the scheme 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 provision so far as relating to anything 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 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 person making the scheme 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 provision so far as relating to anything done for the purposes of, or in relation to, the transfer. (4)An order under this section is subject to annulment in pursuance of a resolution of the House of Commons. (5)In this section— “relevant tax” means income tax, corporation tax, capital gains tax, stamp duty, stamp duty land tax or stamp duty reserve tax; “tax provision” means a provision of an enactment about a relevant tax; references to the transfer of property include the grant of a lease. Part 2 Other provisions relating to public bodies Delegation and shared services 26Delegation of functions by Environment Agency (1)The Environment Agency may make arrangements with a person exercising Welsh environmental functions who is not a cross-border operator for that person to exercise a non-devolved function of the Agency. (2)The consent of the Secretary of State and the Welsh Ministers is required for arrangements under subsection (1). (3)The Secretary of State may by order with the consent of the Welsh Ministers make provision about how the function of making arrangements under subsection (1) is to be discharged (including provision about the extent to which a fee may be charged in respect of anything done under the arrangements). (4)An order under subsection (3) is subject to annulment in pursuance of a resolution of either House of Parliament. (5)For the purposes of subsection (1) a person is not a cross-border operator merely because functions exercisable in or with respect to England have been delegated to that person. 27Delegation of Welsh environmental functions (1)A person to whom this section applies may make arrangements with another such person for— (a)a Welsh environmental function exercised by one to be exercised by the other; (b)co-operation in relation to the exercise of Welsh environmental functions. (2)This section applies to— (a)the Environment Agency, (b)the Forestry Commissioners, and (c)a person not falling within paragraph (a) or (b) who exercises a Welsh environmental function. (3)The Welsh Ministers’ consent is required for arrangements under subsection (1). (4)The Welsh Ministers may by order make provision about how the function of making arrangements under subsection (1) is to be discharged (including provision about the extent to which a fee may be charged in respect of anything done under the arrangements). (5)An order under subsection (4) is subject to annulment in pursuance of a resolution of the National Assembly for Wales. (6)The Secretary of State’s consent is required for arrangements under subsection (1) involving, or an order under subsection (4) affecting— (a)the Environment Agency, (b)the Forestry Commissioners, or (c)a person not falling within paragraph (a) or (b) who is a cross-border operator. 28Shared services (1)A person to whom this section applies may make arrangements with any other person to provide administrative, professional or technical services to that person for purposes relating to the exercise of public functions in or as regards England or Wales. (2)This section applies to— (a)the Board of Trustees of the Royal Botanic Gardens, Kew; (b)the Environment Agency; (c)the Joint Nature Conservation Committee; (d)an internal drainage board; (e)the Marine Management Organisation; (f)Natural England; (g)a person not falling within paragraphs (a) to (f) who exercises a Welsh environmental function. (3)The Secretary of State’s consent is required for arrangements under subsection (1) involving a person who exercises a non-devolved function (whether or not the person also exercises a Welsh devolved function). (4)The Secretary of State may by order make provision about how the function of making arrangements in subsection (1) is to be discharged in the case of arrangements made by a person to whom this section applies who exercises a non-devolved function. (5)An order under subsection (4) requires the consent of the Welsh Ministers if the person referred to in subsection (4) also exercises a Welsh devolved function. (6)An order under subsection (4) is subject to annulment in pursuance of a resolution of either House of Parliament. (7)The Welsh Ministers’ consent is required for arrangements under subsection (1) involving a person who exercises a Welsh devolved function (whether or not the person also exercises a non-devolved function). (8)The Welsh Ministers may by order make provision about how the function of making arrangements in subsection (1) is to be discharged in the case of arrangements made by a person to whom this section applies who exercises a Welsh devolved function. (9)An order under subsection (8) requires the consent of the Secretary of State if the person referred to in subsection (8) also exercises a non-devolved function. (10)An order under subsection (8) is subject to annulment in pursuance of a resolution of the National Assembly for Wales. (11)The provision referred to in subsections (4) and (8) includes provision about the extent to which a fee may be charged in respect of anything done under the arrangements. (12)The power to make arrangements under subsection (1) is without prejudice to any other power of a body to which this section applies to provide services to other persons. 29Shared services: Forestry Commissioners (1)The Forestry Commissioners may make arrangements with a person who exercises a Welsh environmental function (with or without other functions) to provide administrative, professional or technical services to that person for purposes relating to the exercise of public functions in or as regards Wales. (2)The Welsh Ministers may by order make provision about how the function of making arrangements under this section is to be discharged (including provision about the extent to which a fee may be charged in respect of anything done under the arrangements). (3)An order under subsection (2) is subject to annulment in pursuance of a resolution of the National Assembly for Wales. (4)The Secretary of State’s consent is required for— (a)arrangements under this section, or (b)an order under subsection (2). (5)The power to make arrangements under this section is without prejudice to any other power of the Forestry Commissioners to provide services to other persons. Specific bodies and offices 30Regional development agencies (1)The regional development agencies are abolished. (2)Subsection (1) does not apply to the London Development Agency (provision for the abolition of which is contained in the Localism Act 2011). (3)The enactments specified in Schedule 6 are repealed to the extent shown. (4)The Secretary of State may by order make provision for the purpose of facilitating or securing that activities begun by a regional development agency may be continued or completed by another person. (5)That includes in particular provision securing or facilitating that a person continuing or completing activities begun by a regional development agency may for their own purposes exercise any power of the agency. (6)The powers referred to in subsection (5) include— (a)powers of compulsory acquisition of land or rights over land; (b)rights of entry. (7)The Secretary of State may by order make other consequential, supplementary, incidental or transitional provision, or savings. (8)A statutory instrument containing an order under this section— (a)if it contains provision repealing or amending an enactment, may not be made unless a draft of the instrument has been laid before, and approved by a resolution of, each House of Parliament; (b)in any other case, is subject to annulment in pursuance of a resolution of either House of Parliament. (9)The Secretary of State may make a scheme for the transfer of property, rights and liabilities of a regional development agency to an eligible person or any body corporate in connection with the abolition of the agency under subsection (1); and sections 23(4) to (9) and 25 apply in relation to such a scheme. (10)A scheme under subsection (9) may be included in an order under this section, but if not so included must be laid before Parliament after being made. (11)In this section “regional development agency” means a development agency established under the Regional Development Agencies Act 1998. 31Sianel Pedwar Cymru For section 61 of the Broadcasting Act 1990 (funding of Sianel Pedwar Cymru) there is substituted— “61Funding of Welsh Authority (1)The Secretary of State shall secure that in 2012 and each subsequent year the Welsh Authority are paid an amount which he considers sufficient to cover the cost to the Authority during that year of— (a)providing the Authority’s public services (within the meaning of section 207 of the Communications Act 2003), and (b)arranging for the broadcasting or distribution of those services. (2)The Secretary of State may discharge the duty in subsection (1) by making payments himself or entering into an agreement with another person for that person to do so (or both). (3)If under this section the Welsh Authority are paid an amount for any year which exceeds the cost referred to in subsection (1), the Authority may pay the difference from the public service fund referred to in section 61A to the person (or pro rata to the persons) from whom payments were received. (4)Any sums required by the Secretary of State under this section shall be paid out of money provided by Parliament.” 32V & A, Science Museum, Kew and English Heritage (1)The National Heritage Act 1983 is amended as follows. (2)In section 3 (power of the Board of Trustees of the Victoria and Albert Museum to form companies)— (a)in subsection (1) for “one or more of those mentioned in subsection (2)” there is substituted— “(a)one or more of the particular objects mentioned in subsection (2), or (b)any other object or objects incidental to the Board’s functions.”; (b)in subsection (2) for “objects” there is substituted “particular objects”. (3)In section 11 (power of the Board of Trustees of the Science Museum to form companies)— (a)in subsection (1) for “one or more of those mentioned in subsection (2)” there is substituted— “(a)one or more of the particular objects mentioned in subsection (2), or (b)any other object or objects incidental to the Board’s functions.”; (b)in subsection (2) for “objects” there is substituted “particular objects”. (4)In section 25 (power of the Board of Trustees of the Royal Botanic Gardens, Kew to form companies)— (a)in subsection (1) for “one or more of those mentioned in subsection (2)” there is substituted— “(a)one or more of the particular objects mentioned in subsection (2), or (b)any other object or objects incidental to the Board’s functions.”; (b)in subsection (2) for “objects” there is substituted “particular objects”. (5)In section 35 (power of the Historic Buildings and Monuments Commission for England to form companies)— (a)in subsection (1) for “one or more of those mentioned in subsection (2)” there is substituted— “(a)one or more of the particular objects mentioned in subsection (2), or (b)any other object or objects incidental to the Commission’s functions.”; (b)in subsection (2) for “objects” there is substituted “particular objects”. 33Chief Coroner (1)Section 40 of the Coroners and Justice Act 2009 (appeals to the Chief Coroner) is repealed. (2)The following provisions of that Act (which relate to appeals under section 40 of that Act) are also repealed— section 36(4)(b); section 42(2)(b); in section 42(2)(c) the words “and to exercise rights of appeal”; section 45(1)(b) and (c) and (2)(j); paragraph 4 of Schedule 10. Superannuation 34Scope of power to amend Schedule 1 to Superannuation Act 1972 In section 1 of the Superannuation Act 1972 (superannuation schemes as respects civil servants etc), in subsection (6) (restriction on addition to Schedule 1), after “unless” there is inserted “at the date from which the addition has effect”. Part 3 Final 35Orders: supplementary (1)An order under this Act must be made by statutory instrument. (2)The provision which may be made by an order under this Act, other than an order under sections 26 to 29, may be made by repealing, revoking or amending an enactment (whenever passed or made). (3)The powers conferred by this Act are without prejudice to any other power conferred on a Minister or the Welsh Ministers. (4)If the draft of an instrument containing an order under this Act (alone or with other provision) would, apart from this section, be a hybrid instrument for the purposes of the standing orders of either House of Parliament, it is to proceed in that House as if it were not such an instrument. 36Interpretation (1)In this Act— “charity” has the meaning given in section 1(1) of the Charities Act 2006; “community benefit society” means— (a)a society registered as a community benefit society under the Co-operative and Community Benefit Societies and Credit Unions Act 1965, (b)a pre-2010 Act society (as defined by section 4A(1) of that Act) which meets the condition in section 1(3) of that Act, or (c)a society registered or deemed to be registered under the Industrial and Provident Societies Act (Northern Ireland) 1969 which meets the condition in section 1(2)(b) of that Act; “constitutional arrangements” is to be construed in accordance with section 3(2) and (3); “co-operative society” means— (a)a society registered as a co-operative society under the Co-operative and Community Benefit Societies and Credit Unions Act 1965, (b)a pre-2010 Act society (as defined by section 4A(1) of that Act) which meets the condition in section 1(2) of that Act, or (c)a society registered or deemed to be registered under the Industrial and Provident Societies Act (Northern Ireland) 1969 which meets the condition in section 1(2)(a) of that Act; “cross-border operator” means a person exercising functions or carrying on activities in or with respect to Wales (or any part of it) and England (or any part of it), but does not include— (a)an internal drainage board, or (b)a Regional Flood and Coastal Committee established under section 22(1)(c) of the Flood and Water Management Act 2010; “eligible person” has the meaning given in section 1(3); “enactment” means any primary or subordinate legislation; “Minister” means— (a)a Minister of the Crown (as defined by section 8 of the Ministers of the Crown Act 1975), or (b)the Commissioners for Her Majesty’s Revenue and Customs; “modify”, in relation to functions, is to be construed in accordance with section 5(2); “modify”, in relation to funding arrangements, is to be construed in accordance with section 4(3); “non-devolved function” means a function that is not a Welsh devolved function; “primary legislation” means any Act, Act of the Scottish Parliament, Northern Ireland legislation or Measure or Act of the National Assembly for Wales; “public function” means a function conferred under an enactment or royal charter; “subordinate legislation” means an instrument made under primary legislation; “Wales” has the same meaning as in the Government of Wales Act 2006; “Welsh devolved function” means— (a)a function conferred under an Act or Measure of the National Assembly for Wales, (b)a function which is exercisable in or as regards Wales and could be conferred by an Act of the Assembly, or (c)a function in relation to which a function (other than a function of being consulted) is exercisable by the Welsh Ministers, the First Minister or the Counsel General to the Welsh Assembly Government, and references to a person exercising a Welsh devolved function do not include a person exercising such a function by virtue of arrangements under section 27; “Welsh environmental function” means a Welsh devolved function relating to the environment. (2)Until the coming into force of section 1 of the Co-operative and Community Benefit Societies and Credit Unions Act 2010— (a)the definition of “community benefit society” in subsection (1) above has effect as if for paragraphs (a) and (b) there were substituted— “(a)a society registered or deemed to be registered under the Industrial and Provident Societies Act 1965 which meets the condition in section 1(2)(b) of that Act, or”; (b)the definition of “co-operative society” in subsection (1) above has effect as if for paragraphs (a) and (b) there were substituted— “(a)a society registered or deemed to be registered under the Industrial and Provident Societies Act 1965 which meets the condition in section 1(2)(a) of that Act, or”. (3)Subsection (2) ceases to have effect on the coming into force of section 1 of the Co-operative and Community Benefit Societies and Credit Unions Act 2010. 37Extent (1)This Act extends to England and Wales, Scotland and Northern Ireland, subject as follows. (2)The amendments made by section 32 (V & A, Science Museum, Kew and English Heritage) have the same extent as the enactments which they amend. (3)The repeals in section 33 (Chief Coroner) have the same extent as the enactments to which they relate. (4)The repeals in Schedule 6 (regional development agencies: consequential repeals) have the same extent as the enactments to which they relate. (5)An order under this Act which repeals, revokes or amends an enactment extending to any other jurisdiction may also extend there. 38Commencement (1)This Act comes into force at the end of the period of two months beginning with the day on which it is passed, subject as follows. (2)Sections 10 and 11 (consultation and procedure) and 35 to 39 (final) come into force on the day on which this Act is passed. (3)Section 30 and Schedule 6 (regional development agencies) come into force on such day as the Secretary of State may by order appoint (and different days may be appointed for different purposes, including the purposes of different regional development agencies). 39Short title This Act may be cited as the Public Bodies Act 2011. ### New regime to protect the public from terrorism 1Abolition of control orders The Prevention of Terrorism Act 2005 (which gives powers to impose control orders) is repealed. 2Imposition of terrorism prevention and investigation measures (1)The Secretary of State may by notice (a “TPIM notice”) impose specified terrorism prevention and investigation measures on an individual if conditions A to E in section 3 are met. (2)In this Act “terrorism prevention and investigation measures” means requirements, restrictions and other provision which may be made in relation to an individual by virtue of Schedule 1 (terrorism prevention and investigation measures). (3)In this section and Part 1 of Schedule 1 “specified” means specified in the TPIM notice. 3Conditions A to E (1)Condition A is that the Secretary of State reasonably believes that the individual is, or has been, involved in terrorism-related activity (the “relevant activity”). (2)Condition B is that some or all of the relevant activity is new terrorism-related activity. (3)Condition C is that the Secretary of State reasonably considers that it is necessary, for purposes connected with protecting members of the public from a risk of terrorism, for terrorism prevention and investigation measures to be imposed on the individual. (4)Condition D is that the Secretary of State reasonably considers that it is necessary, for purposes connected with preventing or restricting the individual’s involvement in terrorism-related activity, for the specified terrorism prevention and investigation measures to be imposed on the individual. (5)Condition E is that— (a)the court gives the Secretary of State permission under section 6, or (b)the Secretary of State reasonably considers that the urgency of the case requires terrorism prevention and investigation measures to be imposed without obtaining such permission. (6)In this section “new terrorism-related activity” means— (a)if no TPIM notice relating to the individual has ever been in force, terrorism-related activity occurring at any time (whether before or after the coming into force of this Act); (b)if only one TPIM notice relating to the individual has ever been in force, terrorism-related activity occurring after that notice came into force; or (c)if two or more TPIM notices relating to the individual have been in force, terrorism-related activity occurring after such a notice came into force most recently. 4Involvement in terrorism-related activity (1)For the purposes of this Act, involvement in terrorism-related activity is any one or more of the following— (a)the commission, preparation or instigation of acts of terrorism; (b)conduct which facilitates the commission, preparation or instigation of such acts, or which is intended to do so; (c)conduct which gives encouragement to the commission, preparation or instigation of such acts, or which is intended to do so; (d)conduct which gives support or assistance to individuals who are known or believed by the individual concerned to be involved in conduct falling within paragraphs (a) to (c);and for the purposes of this Act it is immaterial whether the acts of terrorism in question are specific acts of terrorism or acts of terrorism in general. (2)For the purposes of this Act, it is immaterial whether an individual’s involvement in terrorism-related activity occurs before or after the coming into force of this Act. Two year limit on imposition of measures without new terrorism-related activity 5Two year limit for TPIM notices (1)A TPIM notice— (a)comes into force when the notice is served on the individual or, if later, at the time specified for this purpose in the notice; and (b)is in force for the period of one year. (2)The Secretary of State may by notice extend a TPIM notice for a period of one year beginning when the TPIM notice would otherwise expire. (3)A TPIM notice— (a)may be extended under subsection (2) only if conditions A, C and D are met; and (b)may be so extended on only one occasion. (4)This section is subject, in particular, to sections 13 (revocation and revival of TPIM notices) and 14 (replacement of TPIM notice that is quashed etc). Court scrutiny of imposition of measures 6Prior permission of the court (1)This section applies if the Secretary of State— (a)makes the relevant decisions in relation to an individual, and (b)makes an application to the court for permission to impose measures on the individual. (2)The application must set out a draft of the proposed TPIM notice. (3)The function of the court on the application is— (a)to determine whether the relevant decisions of the Secretary of State are obviously flawed, and (b)to determine whether to give permission to impose measures on the individual and (where applicable) whether to exercise the power of direction under subsection (9). (4)The court may consider the application— (a)in the absence of the individual; (b)without the individual having been notified of the application; and (c)without the individual having been given an opportunity (if the individual was aware of the application) of making any representations to the court. (5)But that does not limit the matters about which rules of court may be made. (6)In determining the application, the court must apply the principles applicable on an application for judicial review. (7)In a case where the court determines that a decision of the Secretary of State that condition A, condition B, or condition C is met is obviously flawed, the court may not give permission under this section. (8)In any other case, the court may give permission under this section. (9)If the court determines that the Secretary of State’s decision that condition D is met is obviously flawed, the court may (in addition to giving permission under subsection (8)) give directions to the Secretary of State in relation to the measures to be imposed on the individual. (10)In this section “relevant decisions” means the decisions that the following conditions are met— (a)condition A; (b)condition B; (c)condition C; and (d)condition D. 7Urgent cases: reference to the court etc Schedule 2 (urgent cases: reference to the court etc) has effect. 8Directions hearing (1)This section applies if the court— (a)gives permission under section 6 for measures to be imposed on an individual, or (b)confirms under paragraph 4(3) of Schedule 2 (whether or not subject to paragraph 4(2) of that Schedule) a TPIM notice which imposes measures on an individual. (2)The court must, at the hearing where it gives the permission or confirms the notice, give directions for a further hearing (a “directions hearing”)— (a)which, unless the court otherwise directs (whether in those directions or subsequently), is to be held within the period of 7 days beginning with the relevant day, and (b)which the individual is to have the opportunity to attend. (3)In a case where this section applies because the court gives permission under section 6, directions given under subsection (2) may not be served on the individual unless the TPIM notice has been served on that individual. (4)At the directions hearing, the court must give directions for a further hearing (a “review hearing”) in relation to the imposition of measures on the individual. (5)Directions under subsection (4) must provide for the review hearing to be held as soon as reasonably practicable. (6)In this section “relevant day” means— (a)in a case falling within subsection (1)(a), the day on which the TPIM notice imposing the measures is served on the individual; (b)in a case falling within subsection (1)(b), the day on which the court confirms the TPIM notice. 9Review hearing (1)On a review hearing held in compliance with directions under section 8(4), the function of the court is to review the decisions of the Secretary of State that the relevant conditions were met and continue to be met. (2)In doing so, the court must apply the principles applicable on an application for judicial review. (3)The court— (a)must discontinue the review hearing if the individual requests the court to do so; and (b)may discontinue the review hearing in any other circumstances. (4)The court may not discontinue the review hearing in accordance with subsection (3)(b) without giving the Secretary of State and the individual the opportunity to make representations. (5)The court has the following powers (and only those powers) on a review hearing— (a)power to quash the TPIM notice; (b)power to quash measures specified in the TPIM notice; (c)power to give directions to the Secretary of State for, or in relation to,— (i)the revocation of the TPIM notice, or (ii)the variation of measures specified in the TPIM notice. (6)If the court does not exercise any of its powers under subsection (5), the court must decide that the TPIM notice is to continue in force. (7)If the court exercises a power under subsection (5)(b) or (c)(ii), the court must decide that the TPIM notice is to continue in force subject to that exercise of that power. (8)In this section “relevant conditions” means— (a)condition A; (b)condition B; (c)condition C; and (d)condition D. Consultation requirements 10Criminal investigations into terrorism-related activity (1)The Secretary of State must consult the chief officer of the appropriate police force about the matter mentioned in subsection (2) before— (a)making an application under section 6 for permission to impose measures on an individual, or (b)imposing measures on an individual in a case to which section 3(5)(b) applies (urgency of the case requires measures to be imposed without obtaining the permission of the court). (2)The matter is whether there is evidence available that could realistically be used for the purposes of prosecuting the individual for an offence relating to terrorism. (3)The “appropriate police force” means the police force— (a)that is investigating the commission of any such offence by the individual, or (b)by which it appears to the Secretary of State that the commission of any such offence by the individual would fall to be investigated. (4)If the Secretary of State serves a TPIM notice on an individual, the Secretary of State must inform the chief officer of the appropriate police force— (a)that the TPIM notice has been served, and (b)that the chief officer must act in accordance with the duty under subsection (5). (5)After being informed of the matters mentioned in subsection (4), the chief officer must— (a)secure that the investigation of the individual’s conduct, with a view to a prosecution of the individual for an offence relating to terrorism, is kept under review throughout the period the TPIM notice is in force, and (b)report to the Secretary of State on the review carried out under paragraph (a). (6)The chief officer must consult the relevant prosecuting authority before responding to consultation under subsection (1). (7)The chief officer must also, to the extent that the chief officer considers it appropriate to do so, consult the relevant prosecuting authority in carrying out the duty under subsection (5)(a). (8)The “relevant prosecuting authority” is— (a)in the case of offences that would be likely to be prosecuted in England and Wales, the Director of Public Prosecutions; (b)in the case of offences that would be likely to be prosecuted in Scotland, the appropriate procurator fiscal; (c)in the case of offences that would be likely to be prosecuted in Northern Ireland, the Director of Public Prosecutions for Northern Ireland. (9)The duty to consult under subsection (1) or (6) may be satisfied by consultation that took place wholly or partly before the passing of this Act. (10)In this section— “chief officer”— (a)in relation to a police force maintained for a police area in England and Wales, means the chief officer of police of that force; (b)in relation to a police force maintained under the Police (Scotland) Act 1967, means the chief constable of that force; (c)in relation to the Police Service of Northern Ireland, means the Chief Constable of that Service; (d)in relation to the Serious Organised Crime Agency, means the Director General of that Agency; and (e)in relation to the Scottish Crime and Drug Enforcement Agency, means the Director General of that Agency; “police force” means— (a)a police force maintained for a police area in England and Wales; (b)a police force maintained under the Police (Scotland) Act 1967; (c)the Police Service of Northern Ireland; (d)the Serious Organised Crime Agency; or (e)the Scottish Crime and Drug Enforcement Agency. Review of ongoing necessity 11Review of ongoing necessity During the period that a TPIM notice is in force, the Secretary of State must keep under review whether conditions C and D are met. Changes concerning TPIM notices 12Variation of measures (1)The Secretary of State may by notice (a “variation notice”) vary measures specified in a TPIM notice if— (a)the variation consists of the relaxation or removal of measures; (b)the variation is made with the consent of the individual; or (c)the Secretary of State reasonably considers that the variation is necessary for purposes connected with preventing or restricting the individual’s involvement in terrorism-related activity. (2)The individual to whom a TPIM notice relates may make an application to the Secretary of State for the variation of measures specified in the TPIM notice. (3)The Secretary of State must consider an application made under subsection (2). (4)An application under subsection (2) must be made in writing. (5)The Secretary of State may by notice request the provision, within such period of time as the notice may specify, of further information from the individual in connection with an application under subsection (2). (6)The Secretary of State is not required to consider an application further unless any information requested under subsection (5) is provided in accordance with the notice mentioned in that subsection. (7)A variation under subsection (1) takes effect when the variation notice is served or, if later, at the time specified for this purpose in the variation notice. (8)The power under subsection (1) is exercisable whether or not an application has been made under subsection (2). (9)In a case where a TPIM notice— (a)has expired without being extended under section 5(2), or (b)has been revoked,the power under subsection (1) may (in particular) be exercised in relation to the TPIM notice before any revival of the TPIM notice under section 13(6) so as to take effect at the time that the TPIM notice comes back into force on its revival. (10)In such a case, the question of whether condition D is met is to be determined for the purposes of section 13(6) by reference to the measures specified in the TPIM notice as they would be after the exercise of the power under subsection (1). 13Revocation and revival of TPIM notices (1)The Secretary of State may by notice (a “revocation notice”) revoke a TPIM notice at any time. (2)The revocation of a TPIM notice takes effect when the revocation notice is served or, if different, at the time specified for this purpose in the revocation notice. (3)The individual to whom a TPIM notice relates may make an application to the Secretary of State for the revocation of the TPIM notice. (4)The Secretary of State must consider an application made under subsection (3). (5)The power under subsection (1) is exercisable whether or not an application has been made under subsection (3). (6)The Secretary of State may by notice (a “revival notice”) at any time revive a TPIM notice which— (a)has expired without being extended under section 5(2), or (b)has been revoked,if conditions A, C and D are met. (7)The power of revival may be exercised— (a)under subsection (6) (a) or (b) whether or not the TPIM notice has previously been revoked and revived; and (b)under subsection (6) (b) whether or not the TPIM notice has been extended under section 5(2). (8)But the power of revival under subsection (6) (b) may not be exercised to revive a TPIM notice which the Secretary of State was required to revoke by directions given by the court in TPIM proceedings. (9)A TPIM notice which is revived— (a)comes back into force when the revival notice is served or, if later, at the time specified for this purpose in the revival notice; and (b)is in force— (i)for the period of one year (in a case where the revived notice had expired), or (ii)for the period of time for which the TPIM notice would have continued in force if it had not been revoked (in a case where the revived notice had been revoked). 14Replacement of TPIM notice that is quashed etc (1)This section applies if— (a)a TPIM notice, the extension of a TPIM notice, or the revival of a TPIM notice, is quashed in TPIM proceedings, or (b)a TPIM notice is revoked by the Secretary of State in compliance with directions given by the court in TPIM proceedings. (2)The replacement TPIM notice is to be in force for the period of time for which the overturned notice would have continued in force but for the quashing or revocation. (3)The replacement TPIM notice may not be extended under section 5(2) if the overturned notice had been extended under section 5(2) (including where the extension is quashed). (4)Terrorism-related activity is to be treated as new terrorism-related activity in relation to the imposition of measures by the replacement TPIM notice if it was new terrorism-related activity in relation to the imposition of measures by the overturned notice. (5)Terrorism-related activity that occurs after the coming into force of the overturned notice does not cease to be new terrorism-related activity by virtue of the coming into force of the replacement TPIM notice. (6)Subsections (2) to (5) do not apply to the replacement notice if— (a)some or all of the relevant activity (within the meaning of section 3) occurred after the overturned notice came into force, and (b)the Secretary of State determines that those subsections should not apply to that notice. (7)In this section— “new terrorism-related activity” has the same meaning as in section 3; “overturned notice” means the TPIM notice to which the quashing or revocation referred to in subsection (1) relates; “replacement TPIM notice” means the first TPIM notice to impose measures on the individual to whom the overturned notice relates after the quashing or revocation referred to in subsection (1). 15Other provision relating to the quashing of TPIM notices etc (1)A power in TPIM proceedings to quash a TPIM notice, the extension of a TPIM notice, the revival of a TPIM notice, or measures specified in a TPIM notice, includes— (a)in England and Wales or Northern Ireland, power to stay the quashing for a specified time, or pending an appeal or further appeal against the decision to quash; or (b)in Scotland, power to determine that the quashing is of no effect for a specified time or pending such an appeal or further appeal. (2)A decision in TPIM proceedings to quash measures specified in a TPIM notice, or (except as provided in section 14) a decision in TPIM proceedings to quash, or to give directions to the Secretary of State in relation to, a TPIM notice, the extension of a TPIM notice, or the revival of a TPIM notice, does not prevent the Secretary of State— (a)from exercising any power under this Act to impose measures (whether or not to the same or similar effect as measures to which the decision relates), or (b)from relying, in whole or in part, on any matters for the purpose of so exercising such a power (whether or not the matters were relied on in exercising powers under this Act in relation to measures or the TPIM notice to which the decision relates). (3)Schedule 3 (appeals against convictions) has effect. Appeals and court proceedings 16Appeals (1)If the Secretary of State extends or revives a TPIM notice (see section 5(2) or 13(6))— (a)the individual to whom the TPIM notice relates may appeal to the court against the extension or revival; and (b)the function of the court on such an appeal is to review the Secretary of State’s decisions that conditions A, C and D were met and continue to be met. (2)If the Secretary of State varies measures specified in a TPIM notice (and the variation does not consist of the relaxation or removal of measures) without the consent of the individual to whom the TPIM notice relates (see section 12(1)(c))— (a)the individual may appeal to the court against the variation; and (b)the function of the court on such an appeal is to review the Secretary of State’s decisions that the variation was necessary, and continues to be necessary, for purposes connected with preventing or restricting involvement by the individual in terrorism-related activity. (3)If the individual to whom a TPIM notice relates makes an application to the Secretary of State for the variation of measures specified in the TPIM notice (see section 12(2))— (a)the individual may appeal to the court against any decision by the Secretary of State on the application; and (b)the function of the court on such an appeal is to review the Secretary of State’s decisions that the measures to which the application relates were necessary, and continue to be necessary, for purposes connected with preventing or restricting involvement by the individual in terrorism-related activity. (4)If the individual to whom a TPIM notice relates makes an application to the Secretary of State for the revocation of the TPIM notice (see section 13(3))— (a)the individual may appeal to the court against any decision by the Secretary of State on the application; and (b)the function of the court on such an appeal is to review the Secretary of State’s decisions that conditions A, C and D were met and continue to be met. (5)If the individual to whom a TPIM notice relates makes an application to the Secretary of State for permission— (a)the individual may appeal to the court against any decision by the Secretary of State on the application (including any decision about conditions to which permission is subject); and (b)the function of the court on such an appeal is to review the decision. (6)In determining the matters mentioned in subsections (1) to (5) the court must apply the principles applicable on an application for judicial review. (7)The only powers of the court on an appeal under this section are— (a)power to quash the extension or revival of the TPIM notice; (b)power to quash measures specified in the TPIM notice; (c)power to give directions to the Secretary of State for, or in relation to,— (i)the revocation of the TPIM notice, or (ii)the variation of measures the TPIM notice specifies; (d)power to give directions to the Secretary of State in relation to permission or conditions to which permission is subject. (8)If the court does not exercise any of its powers under subsection (7), it must dismiss the appeal. (9)In this section “permission” means permission for the purposes of measures specified in a TPIM notice (see, in particular, paragraph 13 of Schedule 1). 17Jurisdiction in relation to decisions under this Act (1)TPIM decisions are not to be questioned in any legal proceedings other than— (a)proceedings in the court; or (b)proceedings on appeal from such proceedings. (2)The court is the appropriate tribunal for the purposes of section 7 of the Human Rights Act 1998 in relation to proceedings all or any part of which call a TPIM decision into question. (3)In this Act “TPIM decision” means— (a)a decision made by the Secretary of State in exercise or performance of any power or duty under any of sections 2 to 15 or under Schedule 1 or 2; (b)a decision made by the Secretary of State for the purposes of, or in connection with, the exercise or performance of any such power or duty; (c)a decision by a constable to give a direction by virtue of paragraph 4 of Schedule 1 (movement directions measure) or paragraph 10(1)(b) of that Schedule (reporting measure); (d)a decision by a person to give a direction by virtue of paragraph 12(2)(d) of Schedule 1 (monitoring measure). 18Proceedings relating to measures (1)No appeal shall lie from any determination of the court in TPIM proceedings, except on a question of law. (2)No appeal by any person other than the Secretary of State shall lie from any determination— (a)on an application for permission under section 6; or (b)on a reference under Schedule 2. (3)Schedule 4 (proceedings relating to measures) has effect. Other safeguards 19Reports on exercise of powers under Act (1)The Secretary of State must— (a)prepare a report about the exercise of the powers mentioned in subsection (2) during each period of 3 months beginning with the month in which this Act is passed, and (b)lay a copy of each such report before Parliament. (2)The powers referred to in subsection (1) are the powers of the Secretary of State under this Act— (a)to impose measures on an individual by a TPIM notice under section 2; (b)to extend a TPIM notice under section 5(2); (c)to vary a TPIM notice under section 12; (d)to revoke a TPIM notice under section 13(1); (e)to revive a TPIM notice under section 13(6). (3)The duty under subsection (1) in relation to the preparation and laying of a report must be carried out as soon as reasonably practicable after the end of the 3 month period to which the report relates. (4)Subject to subsection (5), this section does not require a report to be made in relation to any time which falls after the Secretary of State’s TPIM powers have expired or been repealed under section 21, except for the period of 28 days referred to in section 22(2). (5)If the Secretary of State’s TPIM powers are revived under section 21— (a)the reference in subsection (1)(a) above to the month in which this Act is passed is to be read as a reference to the month in which the revival takes effect; and (b)this section applies accordingly. 20Reviews of operation of Act (1)The Secretary of State must appoint a person to review the operation of this Act (“the independent reviewer”). (2)The independent reviewer must carry out a review of the operation of this Act in respect of each calendar year, starting with the first complete calendar year beginning after the passing of this Act. (3)Each review must be completed as soon as reasonably practicable after the end of the calendar year to which the review relates. (4)The independent reviewer must send to the Secretary of State a report on the outcome of each review carried out under subsection (2) as soon as reasonably practicable after completion of the review. (5)On receiving a report under subsection (4), the Secretary of State must lay a copy of it before Parliament. (6)The Secretary of State may pay to the independent reviewer— (a)expenses incurred in carrying out the functions of the reviewer under this section, and (b)such allowances as the Secretary of State determines. (7)Subject to subsection (8), this section does not require a review to be carried out in relation to any time which falls after the Secretary of State’s TPIM powers have expired or been repealed under section 21, except for the period of 28 days referred to in section 22(2). (8)If the Secretary of State’s TPIM powers are revived under section 21, the independent reviewer must carry out a review of the operation of this Act in respect of— (a)the period which— (i)begins when the revival takes effect, and (ii)ends with the end of the calendar year in which the revival takes effect; and (b)each subsequent calendar year. (9)In such a case, this section and the other provisions of this Act apply as if references to a review under subsection (2) were references to a review under subsection (8). 21Expiry and repeal of TPIM powers (1)Except so far as otherwise provided under this section, the Secretary of State’s TPIM powers expire at the end of 5 years beginning with the day on which this Act is passed. (2)The Secretary of State may, by order made by statutory instrument— (a)repeal the Secretary of State’s TPIM powers; (b)at any time revive the Secretary of State’s TPIM powers for a period not exceeding 5 years; (c)provide that the Secretary of State’s TPIM powers— (i)are not to expire at the time when they would otherwise expire under subsection (1) or in accordance with an order under this subsection; but (ii)are to continue in force after that time for a period not exceeding 5 years. (3)Before making an order under this section the Secretary of State must consult— (a)the independent reviewer appointed for the purposes of section 20; (b)the Intelligence Services Commissioner; and (c)the Director-General of the Security Service. (4)An order under this section may not be made unless a draft of it has been laid before Parliament and approved by a resolution of each House. (5)Subsection (4) does not apply to an order that contains a declaration by the Secretary of State that the order needs, by reason of urgency, to be made without the approval required by that subsection. (6)An order that contains such a declaration— (a)must be laid before Parliament after being made; and (b)if not approved by a resolution of each House before the end of 40 days beginning with the day on which the order was made, ceases to have effect at the end of that period. (7)Where an order ceases to have effect in accordance with subsection (6), that does not— (a)affect anything previously done in reliance on the order; or (b)prevent the making of a new order to the same or similar effect. (8)In this section— “40 days” means 40 days computed as provided for in section 7(1) of the Statutory Instruments Act 1946; “Secretary of State’s TPIM powers” means— (a)the power to impose a TPIM notice under section 2; (b)the power to extend a TPIM notice under section 5(2); (c)the power to vary a TPIM notice under section 12(1)(c); and (d)the power to revive a TPIM notice under section 13(6) to (9). 22Section 21: supplementary provision (1)This section applies if the Secretary of State’s TPIM powers expire or are repealed under section 21. (2)A TPIM notice which is in force immediately before expiry or repeal is to— (a)continue in force for the period of 28 days beginning with expiry or repeal; and (b)be treated as if revoked by the Secretary of State at the end of that period. (3)Subsection (2)(a) is subject to— (a)any variation under section 12(1)(a) or (b), and (b)any revocation or quashing. (4)Except as provided for in subsection (5) or (6), TPIM proceedings may neither continue nor be begun after expiry or repeal. (5)TPIM proceedings of a kind set out in subsection (7) may continue, or be begun, after expiry or repeal, but only for the purpose of determining one or more of the following matters— (a)whether a TPIM notice should be quashed; (b)whether measures imposed by a TPIM notice should be quashed; (c)whether to make a declaration under paragraph 4(4) of Schedule 2. (6)Proceedings for an award of damages or other relief arising out of any TPIM proceedings of a kind set out in subsection (7)(a) to (c) may continue, or be begun, after expiry or repeal. (7)The TPIM proceedings referred to in subsections (5) and (6) are— (a)a reference made under paragraph 3 of Schedule 2 before expiry or repeal; (b)a hearing in pursuance of directions under section 8(2) or (4); (c)an appeal under section 16; (d)an appeal, or further appeal, relating to a decision in any proceedings mentioned in any of paragraphs (a) to (c). (8)If, after expiry of the Secretary of State’s TPIM powers, the powers are revived under section 21(2)(b)— (a)all TPIM notices, including any which were in force before expiry, are to be taken into account in determining whether there is new terrorism-related activity for the purposes of section 3(6); (b)the expiry of those powers does not prevent them from being exercised after revival in relation to any TPIM notice which— (i)expired or was revoked before the expiry of the powers or during the relevant 28 day period, or (ii)is, in accordance with subsection (2)(b) of this section, treated as if revoked at the end of the relevant 28 day period;and for this purpose “relevant 28 day period” means the period of 28 days beginning with the expiry of the powers that is mentioned in subsection (2)(b). Enforcement 23Offence (1)An individual is guilty of an offence if— (a)a TPIM notice is in force in relation to the individual, and (b)the individual contravenes, without reasonable excuse, any measure specified in the TPIM notice. (2)If the individual has the permission of the Secretary of State by virtue of Schedule 1 for an act which would, without that permission, contravene such a measure, the individual contravenes that measure by virtue of that act if the act is not in accordance with the terms of the permission. (3)An individual guilty of an offence under subsection (1) is liable— (a)on conviction on indictment, to imprisonment for a term not exceeding 5 years or to a fine, or to both; (b)on summary conviction in England and Wales, to imprisonment for a term not exceeding 12 months or to a fine not exceeding the statutory maximum, or to both; (c)on summary conviction in Northern Ireland, to imprisonment for a term not exceeding 6 months or to a fine not exceeding the statutory maximum, or to both; (d)on summary conviction in Scotland, to imprisonment for a term not exceeding 12 months or to a fine not exceeding the statutory maximum, or to both. (4)In relation to an offence committed before the commencement of section 154(1) of the Criminal Justice Act 2003, the reference in subsection (3)(b) to 12 months is to be read as a reference to 6 months. (5)Where an individual is convicted by or before a court of an offence under subsection (1), it is not open to that court to make in respect of the offence— (a)an order under section 12(1)(b) of the Powers of Criminal Courts (Sentencing) Act 2000 (conditional discharge); (b)an order under section 227A of the Criminal Procedure (Scotland) Act 1995 (community payback orders); or (c)an order under Article 4(1)(b) of the Criminal Justice (Northern Ireland) Order 1996 (S.I. 1996/3160 (N.I. 24)) (conditional discharge in Northern Ireland). 24Powers of entry etc Schedule 5 (powers of entry, search, seizure and retention) has effect. 25Fingerprints and samples Schedule 6 (fingerprints and samples) has effect. Temporary imposition of enhanced measures 26Temporary power for imposition of enhanced measures (1)If the Secretary of State considers that it is necessary to do so by reason of urgency, the Secretary of State may make a temporary enhanced TPIM order during any period that— (a)begins with the dissolution of Parliament, and (b)ends with the first Queen’s Speech of the Parliament which first meets after that dissolution. (2)A temporary enhanced TPIM order is an order which makes provision for, or in connection with, giving the Secretary of State power to impose enhanced measures by notice on individuals whom the Secretary of State is satisfied, on the balance of probabilities, are, or have been, involved in terrorism-related activity. (3)An enhanced measure is a requirement, restriction or other provision which is of any of the following kinds— (a)a restriction on an individual in relation to the residence in which the individual resides, including— (i)a requirement to reside at a specified residence in the United Kingdom; (ii)a requirement not to allow others to reside at that residence without the permission of the Secretary of State; (iii)a requirement, applicable between specified hours, to remain at, or within, that residence; (b)a restriction on an individual in relation to leaving a specified area; (c)a requirement, restriction or other provision which corresponds to provision within any of these paragraphs of Schedule 1— (i)paragraphs 2 to 6; (ii)paragraph 7(1) and (2) and (4) to (6); (iii)paragraphs 9 to 12; (d)a requirement, restriction or other provision which corresponds to provision within paragraph 8(1) of Schedule 1 (as read with paragraph 8(3) of that Schedule), including— (i)a requirement not to associate or communicate with other persons without the permission of the Secretary of State, which includes provision allowing the individual (without seeking permission) to associate and communicate with such persons or descriptions of persons as the Secretary of State may specify; (ii)a requirement to give notice to the Secretary of State before associating or communicating with other persons, which includes provision allowing the individual (without giving notice) to associate and communicate with such persons, or descriptions of persons, as are specified; (iii)a requirement of the kind referred to in sub-paragraph (c) of paragraph 8(2) of Schedule 1, which may in particular relate to association or communication which is allowed by virtue of provision of the kind referred to in sub-paragraph (i) or (ii) above; (e)provision which corresponds to provision within Part 2 of Schedule 1;and for this purpose “specified” means specified by the Secretary of State in an enhanced TPIM notice. (4)Except as provided for in subsections (5) to (10), the provision made by a temporary enhanced TPIM order must correspond to the relevant provisions of this Act. (5)A temporary enhanced TPIM order— (a)must secure that enhanced TPIM notices and standard TPIM notices are separate notices; (b)must secure that, at any particular time, an enhanced TPIM notice and a standard TPIM notice are not both in force in relation to a particular individual; and (c)may secure that the application of a temporary enhanced TPIM order to a particular individual does not affect the application of this Act to that individual (and vice versa). (6)The provision of a temporary enhanced TPIM order which corresponds to section 3 must include appropriate variations from the provision contained in that section to secure— (a)that condition A is replaced by a condition which secures that the enhanced TPIM power may not be exercised in relation to an individual unless the Secretary of State is satisfied, on the balance of probabilities, that the individual is, or has been, involved in terrorism-related activity; and (b)that condition D is replaced by a condition which secures both— (i)the same result as condition D, and (ii)that the enhanced TPIM power may not be exercised in relation to an individual unless some or all of the measures imposed by the enhanced TPIM notice are measures that may not be imposed by a standard TPIM notice. (7)The provision of a temporary enhanced TPIM order which corresponds to section 5(1) must include appropriate variations from the provision contained in that subsection to secure that each enhanced TPIM notice ceases to be in force at the time when the enhanced TPIM power ceases to have effect in accordance with section 27(1) (subject to earlier revocation or quashing of the notice). (8)The provision of a temporary enhanced TPIM order which corresponds to Schedule 1 must include appropriate variations from the provision contained in that Schedule to secure that it is enhanced measures which the Secretary of State has power to impose. (9)A temporary enhanced TPIM order may make appropriate provision (including appropriate variations from the provision contained in the relevant provisions of this Act) in consequence of, or in connection with, the creation, in accordance with this section, of the enhanced TPIM power. (10)A temporary enhanced TPIM order may make appropriate provision for the purposes of securing that transitional and saving provision relating to a temporary enhanced TPIM order ceasing to have effect may be made (including provision for enhanced TPIM notices to continue in force for a period, which does not exceed 28 days, after the enhanced TPIM power ceases to have effect). (11)The provision that may be made by a temporary enhanced TPIM order includes— (a)provision applying (with or without modifications) any enactment (including an enactment contained in this Act); (b)provision conferring functions on the Secretary of State or any other person (including, in the case of the Secretary of State or any other Minister of the Crown, functions of a legislative nature). (12)The Secretary of State must obtain the consent of the Scottish Ministers to the inclusion in a temporary enhanced TPIM order of any provision— (a)which would be within the legislative competence of the Scottish Parliament if it were contained in an Act of that Parliament, or (b)which otherwise confers functions on the Scottish Ministers. (13)But subsection (12) does not apply to any provision of an enhanced TPIM order which— (a)applies (with or without modifications) an enactment contained in, or amended by, this Act, or (b)otherwise corresponds to such an enactment. 27Section 26: supplementary provision (1)A temporary enhanced TPIM order, except for designated transitional and saving provision, ceases to have effect— (a)at the end of the period of 90 days beginning with the day on which the Secretary of State makes the order, or (b)at such earlier time (if any) as is specified in the order. (2)The Secretary of State may by order revoke some or all of a temporary enhanced TPIM order if the Secretary of State considers it appropriate to do so (whether or not the Secretary of State would have power to make a temporary enhanced TPIM order by virtue of section 26(1)). (3)As soon as practicable after making— (a)a temporary enhanced TPIM order, or (b)an order revoking any provision of a temporary enhanced TPIM order,the Secretary of State must lay before each House of Parliament a copy of the order that has been made. (4)Anything which has been done by virtue of a temporary enhanced TPIM order is not affected by the temporary enhanced TPIM order ceasing to have effect. (5)In section 26 and this section— “appropriate”, in relation to variations, or other provision, means such variations, or such other provision, as the Secretary of State considers appropriate; “designated transitional and saving provision” means provision of a temporary enhanced TPIM order which is designated, in a temporary enhanced TPIM order, as transitional and saving provision for the purposes of this section; “enactment” includes— (a)an enactment contained in subordinate legislation within the meaning of the Interpretation Act 1978, (b)an enactment contained in, or in an instrument made under, an Act of the Scottish Parliament, (c)an enactment contained in, or in an instrument made under, Northern Ireland legislation, and (d)an enactment contained in, or in an instrument made under, a Measure or Act of the National Assembly for Wales; “enhanced measure” has the meaning given in section 26(3); “enhanced TPIM notice” means a notice by which the enhanced TPIM power is exercised; “enhanced TPIM power” means the power to impose enhanced measures that is referred to in section 26(2); “relevant provisions of this Act” mean all the provisions of this Act, apart from— (a)section 1 (abolition of control orders), (b)section 5(2) and (3) (extension of TPIM notices), (c)section 13(6)(a) (revival of TPIM notice after expiry), (d)sections 21 (expiry and repeal of TPIM powers) and 22 (section 21: supplementary provision), (e)section 26 and this section, (f)section 29 (financial and supplemental provision), (g)section 31(1) and (2) (short title and commencement), and (h)Schedules 7 (minor and consequential amendments) and 8 (transitional and saving provision); “standard TPIM notice” means a notice under section 2; “temporary enhanced TPIM order” has the meaning given in section 26(2). Final provisions 28Notices (1)In a case where the Secretary of State serves a TPIM notice, a revival notice or an extension notice on an individual, the Secretary of State must, by a further notice, give the following information to the individual— (a)the period for which the TPIM notice will be in force; (b)the day on which the TPIM notice comes, or came, into force; and (c)the day on which the TPIM notice will expire;and, in the case of a revival or extension notice, “TPIM notice” means the TPIM notice which is revived or extended by that notice. (2)An individual is not bound by— (a)a TPIM notice, (b)a revival notice, or (c)a variation notice insofar as it gives notice of a variation that is neither a relaxation or removal of measures, nor a variation with the individual’s consent,unless the notice is served personally on the individual. (3)An individual is not bound by an extension notice unless the notice is— (a)served personally on the individual, and (b)so served before the TPIM notice to which it relates would otherwise expire. (4)Any of the following notices must be served on the individual to whom the notice relates— (a)a revocation notice; (b)a variation notice insofar as subsection (2)(c) does not apply to it; (c)a confirmation notice. (5)Any of the following notices may be proved by the production of a document purporting to be certified by the Secretary of State as a true copy of the notice— (a)a TPIM notice; (b)an extension notice; (c)a revocation notice; (d)a revival notice; (e)a variation notice; (f)a confirmation notice. (6)But that does not prevent the proof of such a notice in other ways. (7)In this section— “confirmation notice” means a notice given under subsection (1); “extension notice” means a notice under section 5(2); “revival notice” has the same meaning as in section 13(6); “revocation notice” has the same meaning as in section 13(1); “variation notice” has the same meaning as in section 12(1). 29Financial and supplemental provision (1)The Secretary of State may enter into such contracts and other arrangements with other persons as the Secretary of State considers appropriate for securing their assistance in connection with any monitoring, by electronic or other means, that the Secretary of State considers needs to be carried out in connection with measures specified in TPIM notices. (2)The following are to be paid out of money provided by Parliament— (a)any expenditure incurred by the Secretary of State or Lord Chancellor by virtue of this Act, and (b)any increase attributable to this Act in the sums payable under any other Act out of money so provided. (3)Schedule 7 (minor and consequential amendments) has effect. (4)Schedule 8 (transitional and saving provision) has effect. 30Interpretation etc (1)In this Act— “act” and “conduct” include omissions and statements; “act of terrorism” includes anything constituting an action taken for the purposes of terrorism, within the meaning of the Terrorism Act 2000 (see section 1(5) of that Act); “condition A”, “condition B”, “condition C”, “condition D” or “condition E” means that condition as set out in section 3; “court” means— (a)in the case of proceedings relating to an individual whose principal place of residence is in Scotland, the Outer House of the Court of Session; (b)in the case of proceedings relating to an individual whose principal place of residence is in Northern Ireland, the High Court in Northern Ireland; (c)in any other case, the High Court in England and Wales; “measures” means terrorism prevention and investigation measures (which has the meaning given in section 2); “notice” means notice in writing; “terrorism” has the same meaning as in the Terrorism Act 2000 (see section 1(1) to (4) of that Act); “terrorism-related activity”, and “involvement” (in relation to such activity), are to be construed in accordance with section 4; “TPIM decision” has the meaning given in section 17; “TPIM notice” has the meaning given in section 2(1); “TPIM proceedings” means— (a)proceedings on an application for permission under section 6; (b)proceedings on a reference under Schedule 2; (c)proceedings on a directions hearing held in accordance with directions under section 8(2); (d)proceedings on a review hearing held in accordance with directions under section 8(4); (e)proceedings on an appeal under section 16; (f)proceedings by virtue of section 17(2); (g)proceedings on an application made by virtue of rules of court made under paragraph 6 of Schedule 4 (application for order requiring anonymity); (h)any other proceedings for questioning a TPIM decision (including any claim for damages or other relief arising out of such a decision). (2)In a case where— (a)a TPIM notice has come into force in relation to an individual, and (b)by virtue of the coming into force of that TPIM notice, terrorism-related activity which occurred before the coming into force of that notice has ceased to be new terrorism-related activity (within the meaning of section 3(6)) in relation to that individual for the purposes of that section,the Secretary of State is not prevented from taking account of that activity for the purposes of the continued imposition, or subsequent imposition, of measures on that individual. (3)For the purposes of the definition of “new terrorism-related activity” in section 3, if a TPIM notice is revived under section 13(6), a reference to the notice coming into force is a reference to it coming into force by virtue of section 5(1) (and not to it coming back into force by virtue of section 13(9)). (4)For the purpose of determining what measures may be imposed on an individual, it is immaterial whether the involvement in terrorism-related activity to be prevented or restricted by the measures is connected with matters to which the Secretary of State’s belief for the purpose of condition A relates. (5)A failure by the Secretary of State to consider an application by an individual for— (a)the revocation of a TPIM notice, or (b)the variation of measures specified in a TPIM notice,is to be treated as a decision by the Secretary of State not to revoke, or not to vary, the TPIM notice. (6)Subsections (2) to (5) apply for the purposes of this Act. 31Short title, commencement and extent (1)This Act may be cited as the Terrorism Prevention and Investigation Measures Act 2011. (2)This Act comes into force on the day after the day on which it is passed. (3)This Act extends to England and Wales, Scotland and Northern Ireland. (4)Her Majesty may by Order in Council direct that this Act is to extend, with such modifications as appear to Her Majesty to be appropriate, to the Isle of Man. ### Advertising and trading 1Removal of infringing articles (1)In section 21 of the London Olympic Games and Paralympic Games Act 2006 (offence of contravening advertising regulations), omit subsection (4). (2)In section 22 of that Act (contravention of advertising regulations: power of entry), in subsection (5)— (a)after paragraph (b) insert “or”, and (b)omit paragraph (d) and the preceding “or”. (3)In subsection (6) of that section— (a)for “an enforcement officer” substitute “a constable”, (b)for “a constable”, in each place it appears, substitute “an enforcement officer”, and (c)for the words from “treated” to the end substitute “dealt with in accordance with sections 31A to 31E.” (4)In subsection (10) of that section— (a)in the definition of “enforcement officer”, for “that subsection” substitute “this section”, and (b)in paragraph (b) of the definition of “infringing article”, after “thing” insert “, or an animal,”. (5)In section 28 of that Act (contravention of trading regulations: power of entry), in subsection (2)— (a)after paragraph (b) insert “or”, and (b)omit paragraph (d) and the preceding “or”. (6)Omit subsection (3) of that section. (7)In subsection (4) of that section— (a)for “an enforcement officer” substitute “a constable”, (b)for “a constable”, in each place it appears, substitute “an enforcement officer”, and (c)for the words from “treated” to the end substitute “dealt with in accordance with sections 31A to 31E.” (8)In subsection (8) of that section— (a)in the definition of “enforcement officer”, for “that subsection” substitute “this section”, and (b)in each of paragraphs (a) and (b) of the definition of “infringing article”, after “article” insert “or animal”. (9)After section 31 of that Act insert— “Removal of infringing articles 31ACases involving criminal proceedings (1)This section applies where— (a)an infringing article is removed under section 22 or 28, and (b)its retention is justified by the matter specified in section 22(5)(c) or (as the case may be) 28(2)(c). (2)In the case of a perishable article, the Olympic Delivery Authority must, so far as is reasonably practicable, store the article pending its return or disposal in accordance with this group of sections. (3)In the case of an animal, the Authority must take care of the animal pending its return or disposal in accordance with this group of sections. (4)If proceedings on the offence under section 21 or 27 are not instituted before the end of the relevant period, the infringing article shall be returned to the owner of the article at the end of that period unless— (a)the Authority, having undertaken such enquiries as it thinks appropriate, fails to establish who or where the owner is, (b)the owner disclaims the article or refuses to accept it, or (c)in the case of a perishable article, the article has ceased to be usable for trade. (5)If proceedings on the offence under section 21 or 27 are instituted before the end of the relevant period but are discontinued, the infringing article shall be returned to the owner on the discontinuance of the proceedings unless subsection (4)(a), (b) or (c) applies. (6)If proceedings on the offence under section 21 or 27 are instituted before the end of the relevant period, and subsection (5) does not apply, the infringing article shall be returned to the owner at the conclusion of the proceedings unless— (a)subsection (4)(a), (b) or (c) applies, (b)the court orders the infringing article to be forfeited under section 143 of the Powers of Criminal Courts (Sentencing) Act 2000, or (c)where (without making an order under that section) the court awards costs to the Authority against the owner, the period of 28 days beginning with the day on which the award was made expires without the costs having been paid. (7)If subsection (4)(a) applies, the Authority may apply to a magistrates’ court for a disposal order under section 31D. (8)If subsection (4)(b) or (6)(c) applies, the Authority must proceed in accordance with section 31E. (9)If subsection (4)(c) applies, the Authority may dispose of the article as it thinks appropriate. (10)For the purposes of this section, “the relevant period” is— (a)in the case of an infringing article removed under section 22, the period of 56 days beginning with the day after the day on which it is removed, and (b)in the case of an infringing article removed under section 28, the period of 28 days beginning with the day after the day on which it is removed. (11)In this section, “this group of sections” means this section and sections 31B to 31E. 31BCases not involving criminal proceedings: articles other than vehicles (1)This section applies where— (a)an infringing article which is not a vehicle is removed under section 22 or 28, and (b)retention of the article is not justified by the matter specified in section 22(5)(c) or (as the case may be) 28(2)(c). (2)In the case of a perishable article, the Olympic Delivery Authority must, so far as is reasonably practicable, store the article pending its return or disposal in accordance with this group of sections. (3)In the case of an animal, the Authority must take care of the animal pending its return or disposal in accordance with this group of sections. (4)The article shall be returned to the owner when retention is no longer justified by a matter specified in section 22(5)(a) or (b) or (as the case may be) 28(2)(a) or (b) unless— (a)the Authority, having undertaken such enquiries as it thinks appropriate, fails to establish who or where the owner of the article is, (b)the owner disclaims the article or refuses to accept it, or (c)in the case of a perishable article, the article has ceased to be usable for trade. (5)If subsection (4)(a) applies, the Authority may apply to a magistrates’ court for a disposal order under section 31D. (6)If subsection (4)(b) applies, the Authority must proceed in accordance with section 31E. (7)If subsection (4)(c) applies, the Authority may dispose of the article as it thinks appropriate. (8)In this section— “this group of sections” has the meaning given in section 31A, and “vehicle” has the same meaning as in the Vehicle Excise and Registration Act 1994 (see section 1 of that Act). 31CCases not involving criminal proceedings: vehicles (1)This section applies where— (a)a vehicle is removed under section 22 or 28, and (b)retention of the vehicle is not justified by the matter specified in section 22(5)(c) or (as the case may be) 28(2)(c). (2)If the Olympic Delivery Authority receives a written application for the return of the vehicle and is satisfied that the applicant is the owner, the vehicle shall be returned to the applicant when retention is no longer justified by a matter specified in section 22(5)(a) or (b) or (as the case may be) 28(2)(a) or (b), unless the applicant disclaims the vehicle or refuses to accept it. (3)Subsection (2) does not apply if the vehicle has been removed under section 22 or 28 on a previous occasion; where that is the case, if the Authority is satisfied as to who the owner is, the vehicle shall be returned to the owner as soon as is reasonably practicable after the end of the London Olympics period, unless the owner disclaims the vehicle or refuses to accept it. (4)If neither subsection (2) nor subsection (3) applies, the Authority must request from the Secretary of State the particulars relating to the person in whose name the vehicle is registered under the Vehicle Excise and Registration Act 1994. (5)Once those particulars have been received, the vehicle shall— (a)if it has been removed under section 22 or 28 on a previous occasion, be returned to the owner as soon as is reasonably practicable after the end of the London Olympics period, or (b)in any other case, be returned to the owner when retention is no longer justified by a matter specified in section 22(5)(a) or (b) or (as the case may be) 28(2)(a) or (b),unless the owner disclaims the vehicle or refuses to accept it. (6)If the owner disclaims or refuses to accept the vehicle in the circumstances mentioned in subsection (2), (3) or (5), the Authority must proceed in accordance with section 31E. (7)In this section, “vehicle” has the same meaning as in the Vehicle Excise and Registration Act 1994 (see section 1 of that Act). 31DDisposal orders (1)A magistrates’ court may, on an application under section 31A(7) or 31B(5), make an order (a “disposal order”) authorising the Olympic Delivery Authority— (a)to dispose of the article or animal as the Authority thinks appropriate, and (b)to apply any proceeds of the disposal towards the Authority’s costs of exercising functions by virtue of section 19 or 25. (2)The court may make a disposal order only if it is satisfied that the Authority has made reasonable efforts to establish who and where the owner of the article or animal is. (3)If a person who claims to be the owner of the article or animal, or otherwise to have an interest in it, applies to the court to be heard in the proceedings, the court— (a)must give the applicant an opportunity to make representations as to why a disposal order should not be made, (b)may not make a disposal order pending the making of the representations, and (c)having heard the representations, may (instead of making a disposal order) make an order requiring the article or animal to be returned to the owner. (4)In considering whether to make a disposal order, the court must have regard in particular to— (a)the value of the article or animal, and (b)the likely financial or other effects of making the order. (5)The court may make a disposal order even if the value of the article or animal exceeds the maximum fine which could be imposed on conviction of the offence under section 21 or (as the case may be) 27. 31ESale or other disposal (1)This section has effect for the purposes of sections 31A(8), 31B(6) and 31C(6). (2)If the Olympic Delivery Authority thinks that there is a realistic prospect of selling the article or animal in question— (a)it must take reasonable steps to sell it at the best price that can reasonably be obtained, but (b)if (having complied with paragraph (a)) it fails to sell it, it may dispose of it as it thinks appropriate. (3)If the Authority does not think that there is a realistic prospect of selling the article or animal, it may dispose of it as it thinks appropriate. (4)In a case within section 31A(4)(b) or 31B(4)(b), or in the circumstances mentioned in section 31C(2), (3) or (5), the proceeds of a sale under this section must be applied towards the Authority’s costs of exercising functions by virtue of section 19 or 25. (5)In a case within section 31A(6)(c), the proceeds of a sale under this section must— (a)be applied in paying the amount of the costs referred to in section 31A(6)(c) that are unpaid, and (b)in so far as the proceeds exceed that amount, be given to the owner of the article or animal. (6)If, in a case within section 31A(6)(c), the Authority sells or otherwise disposes of the article or animal having failed to comply with subsection (2)(a), the failure— (a)is actionable against the Authority by any person suffering loss in consequence of the sale or other disposal, but (b)in the case of a sale, does not affect the validity of the sale. (7)If the Authority, having undertaken such enquiries as it thinks appropriate, fails to establish for the purposes of subsection (5)(b) where the owner is, it may apply to a magistrates’ court for an order under subsection (8). (8)A magistrates’ court may, on an application under subsection (7), make an order authorising the Authority to apply the excess of the proceeds of sale towards its costs of exercising functions by virtue of section 19 or 25. (9)The court may make an order under subsection (8) only if it is satisfied that the Authority has made reasonable efforts to establish where the owner is. (10)In considering whether to make an order under subsection (8), the court must have regard in particular to— (a)the amount of the excess of the proceeds of sale, and (b)the likely financial or other effects of making the order.” (10)In section 37 of that Act (Scotland), omit— (a)subsection (6), and (b)subsection (11). (11)At the end of that section insert— “(12)In section 22, subsection (6) has effect as if there were substituted for it— “(6)An article that is held by a constable (having been removed by or delivered to the constable) shall be returned when retention is no longer justified by a matter specified in subsection (5)(a) to (c), unless— (a)in the case of a perishable article, the article has ceased to be usable for trade, or (b)the court orders the article to be forfeited under Part 2 of the Proceeds of Crime (Scotland) Act 1995. (6A)Subject to subsection (6), the article shall be treated as if acquired by the constable in the course of the investigation of an offence. (6B)An article that is held by an enforcement officer (having been removed by or delivered to the officer) shall be dealt with in accordance with sections 31A to 31E.” (13)In section 28, subsection (4) has effect as if there were substituted for it— “(4)An article that is held by a constable (having been removed by or delivered to the constable) shall be returned when retention is no longer justified by a matter specified in subsection (2)(a) to (c), unless— (a)in the case of a perishable article, the article has ceased to be usable for trade, or (b)the court orders the article to be forfeited under Part 2 of the Proceeds of Crime (Scotland) Act 1995. (4A)Subject to subsection (4), the article shall be treated as if acquired by the constable in the course of the investigation of an offence. (4B)An article that is held by an enforcement officer (having been removed by or delivered to the officer) shall be dealt with in accordance with sections 31A to 31E.” (14)In sections 31A, 31B and 31D, the references to a magistrates’ court are to be read as if they were references to the sheriff. (15)Section 31A has effect as if— (a)in subsection (4), “before the end of the relevant period” and “at the end of that period” were omitted, (b)in subsections (5) and (6), “before the end of the relevant period” were omitted, (c)in subsection (6), in paragraph (b), for “section 143 of the Powers of Criminal Courts (Sentencing) Act 2000” there were substituted “Part 2 of the Proceeds of Crime (Scotland) Act 1995”, (d)in that subsection, paragraph (c) were omitted, (e)in subsection (8), “or (6)(c)” were omitted, and (f)subsection (10) were omitted. (16)Section 31E has effect as if subsections (5) to (10) were omitted.” (12)In section 38 of that Act (Northern Ireland), omit paragraph (g). 2Regulations: Parliamentary procedure and public notice (1)In section 20 of the London Olympic Games and Paralympic Games Act 2006 (supplementary provision about advertising regulations), after subsection (2) insert— “(2A)But if, in relation to regulations under section 19 other than the first regulations, the Secretary of State considers that by reason of urgency it is necessary that they be made without being approved in draft— (a)subsection (2)(b) does not apply to the regulations, and (b)the regulations are instead subject to annulment in pursuance of a resolution of either House of Parliament.” (2)In section 23 of that Act (role of Olympic Delivery Authority in relation to advertising regulations), in subsection (2), after “subsection (1)” insert “in relation to the first regulations made or expected to be made under that section,”. (3)In section 26 of that Act (supplementary provision about trading regulations), after subsection (2) insert— “(2A)But if, in relation to regulations under section 25 other than the first regulations, the Secretary of State considers that by reason of urgency it is necessary that they be made without being approved in draft— (a)subsection (2)(b) does not apply to the regulations, and (b)the regulations are instead subject to annulment in pursuance of a resolution of either House of Parliament.” (4)In section 29 of that Act (role of Olympic Delivery Authority in relation to trading regulations), in subsection (2), after “subsection (1)” insert “in relation to the first regulations made or expected to be made under that section,”. (5)In section 37 of that Act (Scotland), in subsection (8)(b), after “references”, in the first place it appears, insert “(other than in sections 20 and 26)”. (6)After subsection (9) of that section insert— “(9A)Sections 20 and 26 are to have effect as if, in each case, for subsections (2) and (2A) there were substituted— “(2)Regulations under that section are subject to the affirmative procedure. (2A)But if, in relation to regulations under that section other than the first regulations, the Scottish Ministers consider that by reason of urgency it is necessary that they be made without being approved in draft— (a)subsection (2) does not apply to the regulations, and (b)the regulations are instead subject to the negative procedure.””” Ticket touting 3Increase of maximum fine (1)In section 31(6) of the London Olympic Games and Paralympic Games Act 2006 (penalty for ticket touting offence), for “level 5 on the standard scale” substitute “£20,000”. (2)Subsection (1) applies only where the offence under section 31(1) of that Act is committed after the commencement of this section. Traffic 4Orders and notices relating to temporary prohibitions etc. on roads (1)Section 14 of the London Olympic Games and Paralympic Games Act 2006 (the title to which becomes “Traffic regulation orders and notices”) is amended as follows. (2)In subsection (2), after “an order” insert “under section 1, 6 or 9 of that Act”. (3)After subsection (5) insert— “(5A)For the purposes of subsections (1) and (4), so far as applying to the power to make an order under section 14 of the Road Traffic Regulation Act 1984, that section has effect as if in subsection (1)— (a)after “prohibited” there were inserted “for either of the purposes mentioned in section 14(2) of the London Olympic Games and Paralympic Games Act 2006”, and (b)paragraphs (a) to (c) were omitted.” (4)After subsection (5A) insert— “(5B)A traffic authority may issue a notice under section 14 of the Road Traffic Regulation Act 1984 in relation to any road. (5C)For the purposes of subsection (5B), that section has effect as if in subsection (2)— (a)after “that it is” there were inserted “necessary or expedient for either of the purposes mentioned in section 14(2) of the London Olympic Games and Paralympic Games Act 2006”, and (b)paragraphs (a) and (b) were omitted.” (5)In subsection (6), for “that Act” substitute “the Road Traffic Regulation Act 1984”. (6)At the end insert— “(7)For the purposes of subsections (5A) and (5C), section 14 of that Act has effect as if, in subsection (7)(b), for the words “for either of the reasons or for the purpose mentioned in subsection (1) above” there were substituted “for either of the purposes mentioned in section 14(2) of the London Olympic Games and Paralympic Games Act 2006”.” 5Enforcement of traffic regulation orders and notices (1)Section 15 of the London Olympic Games and Paralympic Games Act 2006 (the title to which becomes “Traffic regulation orders and notices: enforcement”) is amended as follows. (2)In subsection (2), after “an order made by virtue of section 14(1) or (4)” insert “, or of a notice issued by virtue of section 14(5B),”. (3)After that subsection insert— “(2A)The reference in subsection (2) to Schedule 7 to that Act is to be read as a reference to that Schedule as it would have effect if, at the end of paragraph 8(2), there were inserted “or a notice under section 14 of that Act”.” (4)For subsection (3) substitute— “(3)In the application of Part 6 of that Act to a contravention of an order made by virtue of section 14(1) or (4), or of a notice issued by virtue of section 14(5B), Schedule 9 to that Act (levels of charges) shall have effect as if for Parts 2 and 3 there were substituted the Parts 2 and 3 set out in section 15A.” (5)In subsection (4), at the end insert “or of a notice issued by virtue of section 14(5B)”. (6)After section 15 of that Act insert— “15ASection 15: supplemental The Parts 2 and 3 of Schedule 9 to the Traffic Management Act 2004 referred to in section 15(3) are as follows— “Part 2 Charges applicable in Greater London 2 (1) It is the duty of the Olympic Delivery Authority (referred to in this Schedule as “the Authority”) to set the levels of charges applicable in Greater London, so far as relating to— (a)contraventions on or adjacent to roads, or (b)parking places provided or authorised by the Authority, Transport for London or the London local authorities. (2)Different levels of charges may be set for different areas in Greater London and for different cases or classes of case. (3)Before setting the level of any charges, the Authority must consult— (a)Transport for London, and (b)the London local authorities. 3 (1) The Authority must submit to the Secretary of State for approval the levels of charges that it proposes to set. (2)If— (a)the Authority fails to discharge its duty under paragraph 2, or (b)the Secretary of State does not approve the levels of charges proposed by the Authority,the levels of charges must be set by the Secretary of State. 4The Authority must publish, in such manner as the Secretary of State may determine, the levels of charges set in accordance with this Part of this Schedule. Part 3 Charges applicable outside Greater London 5 (1) It is the duty of the Authority to set the levels of charges applicable outside Greater London. (2)Different levels of charges may be set for different civil enforcement areas, for different parts of a civil enforcement area and for different cases or classes of case. 6 (1) The Authority must submit to the Secretary of State for approval the levels of charges that it proposes to set. (2)If— (a)the Authority fails to discharge its duty under paragraph 5, or (b)the Secretary of State does not approve the levels of charges proposed by the Authority,the levels of charges must be set by the Secretary of State. 7The Authority must publish, in such manner as the Secretary of State may determine, the levels of charges set in accordance with this Part of this Schedule.”” 6Road closures or restrictions (1)Section 16 of the London Olympic Games and Paralympic Games Act 2006 (the title to which becomes “Road closures or restrictions”) is amended as follows. (2)In subsection (1)(a), after ““a London Olympic event” insert “(within the meaning of the London Olympic Games and Paralympic Games Act 2006)”. (3)In subsection (2), for “a closure” substitute “an order made”. (4)At the end insert— “(3)Part 6 of the Traffic Management Act 2004 (civil enforcement) shall apply in relation to a contravention of an order made under section 16A as applied by this section as it applies in relation to the contraventions specified in Schedule 7 to that Act. (4)In the application of Part 6 of that Act to a contravention of an order made under section 16A as so applied, Schedule 9 to that Act (levels of charges) shall have effect as if for Parts 2 and 3 there were substituted the Parts 2 and 3 set out in section 15A.” 7Enforcement of moving traffic contraventions in Greater London (1)After section 16 of the London Olympic Games and Paralympic Games Act 2006 insert— “16AEnforcement of moving traffic contraventions in Greater London (1)The provisions of the London Local Authorities and Transport for London Act 2003 (“the 2003 Act”) referred to in subsection (2) apply in relation to an Olympic traffic contravention as they apply in relation to a contravention of a prescribed order within the meaning of section 4 of that Act. (2)The provisions of the 2003 Act are— (a)section 4 (penalty charges for road traffic contraventions), (b)section 6 (limitation on service of penalty charge notice), (c)section 7 (disapplication of offences), (d)Schedule 1 (penalty charge notices: representations etc.), and (e)Schedule 2 (penalty charge notices: financial provisions),and section 2 of that Act (interpretation) so far as it relates to any of those provisions. (3)An “Olympic traffic contravention” is a contravention of any of the following that applies to a road in Greater London— (a)an order made by virtue of section 14(1) or (4), (b)a notice issued by virtue of section 14(5B), or (c)an order made under section 16A of the Road Traffic Regulation Act 1984 (road closures or restrictions for certain events) as applied by section 16 of this Act. (4)But a contravention of an order or notice referred to in subsection (3) is not an Olympic traffic contravention in so far as Part 6 of the Traffic Management Act 2004 applies in relation to it by virtue of section 15 or 16. (5)For the purposes of this section, section 4 of the 2003 Act has effect as if— (a)in subsection (10) (power to set level of discount for early payment of penalty charge), for “the borough councils and Transport for London acting through the Joint Committee” there were substituted “the Olympic Delivery Authority”, and (b)for subsection (13) there were substituted the subsection (13) set out in section 16B(1). (6)For the purposes of this section, section 7 of the 2003 Act has effect as if after subsection (3) there were inserted the subsections (3A) and (3B) set out in section 16B(2). (7)The Secretary of State may direct the enforcement authority for a road in Greater London to exercise its power under section 4(2) or 6(6) of the 2003 Act in respect of an Olympic traffic contravention. (8)Where the enforcement authority is Transport for London, the Secretary of State may give a direction under subsection (7) only with the consent of the Mayor of London. (9)If an enforcement authority for a road fails to comply with a direction under subsection (7), the Olympic Delivery Authority may, with the consent of the Secretary of State, act as the enforcement authority for that road. (10)If the Authority acts as the enforcement authority for a road by virtue of subsection (9), it may recover from the enforcement authority, as if it were a debt, the reasonable cost of acting. (11)In this section, “enforcement authority” means whichever of Transport for London or the relevant borough council under the 2003 Act is for the time being entitled to exercise the power under section 4(2) of that Act. (12)For the purposes of this section, the provisions of the 2003 Act referred to in subsection (2) are to be treated as being fully in force. 16BSection 16A: supplemental (1)The subsection (13) of section 4 of the London Local Authorities and Transport for London Act 2003 (“the 2003 Act”) referred to in section 16A(5)(b) is as follows— “(13)For the purposes of subsection (12), Part 2 of that Schedule has effect as it would if there were substituted for it the Part 2 set out as follows— “Part 2 Charges applicable in Greater London 2(1)It is the duty of the Olympic Delivery Authority (“the Authority”) to set the levels of charges applicable to Olympic traffic contraventions (within the meaning of section 16A of the London Olympic Games and Paralympic Games Act 2006). (2)Different levels of charges may be set for different areas in Greater London and for different cases or classes of case. (3)Before setting the level of any charges the Authority must consult— (a)Transport for London, and (b)the London local authorities. 3(1)The Authority must submit to the Secretary of State for approval the levels of charges that it proposes to set. (2)If— (a)the Authority fails to discharge its duty under paragraph 2, or (b)the Secretary of State does not approve the levels of charges proposed by the Authority,the levels of charges must be set by the Secretary of State. 4The Authority must publish, in such manner as the Secretary of State may determine, the levels of charges set in accordance with this Part of this Schedule.””” (2)The subsections (3A) and (3B) of section 7 of the 2003 Act referred to in section 16A(6) are as follows— “(3A)Section 16 of the Act of 1984 shall apply in respect of a road to which this section applies as if after subsection (1) there were inserted— “(1A)Subsection (1) does not apply in relation to any person who acts in contravention of or fails to comply with a restriction or prohibition imposed under section 14 of this Act if as a result a penalty charge is payable under section 4(5) of the London Local Authorities and Transport for London Act 2003.” (3B)Section 16C of the Act of 1984 shall apply in respect of a road to which this section applies as if after subsection (1) there were inserted— “(1A)Subsection (1) does not apply in relation to any person who acts in contravention of or fails to comply with an order under section 16A of this Act if as a result a penalty charge is payable under section 4(5) of the London Local Authorities and Transport for London Act 2003.”””” (2)Consultation undertaken before the commencement of subsection (1) (including consultation undertaken before the passing of this Act) is as effective for the purposes of paragraph 2(3) of Schedule 9 to the Traffic Management Act 2004 as modified in accordance with that subsection as consultation undertaken after that commencement. 8Enforcement of bus lane contraventions outside Greater London After section 16B of the London Olympic Games and Paralympic Games Act 2006 insert— “16CEnforcement of bus lane contraventions outside Greater London (1)Section 144 of the Transport Act 2000 (civil penalties for bus lane contraventions) and the Bus Lane Regulations apply in relation to an Olympic bus lane contravention as they apply in relation to a bus lane contravention within the meaning of that section. (2)The references in subsection (1) to that section are to be read as references to that section as it would have effect if, at the end of the definition of “traffic regulation order” in subsection (14), there were inserted “or a notice under section 14 of that Act”. (3)An “Olympic bus lane contravention” is a contravention of any of the following so far as relating to the use of an area of road outside Greater London which is or forms part of a bus lane— (a)an order made by virtue of section 14(1) or (4), (b)a notice issued by virtue of section 14(5B), or (c)an order made under section 16A of the Road Traffic Regulation Act 1984 (road closures or restrictions for certain events) as applied by section 16 of this Act. (4)But a contravention of an order or notice referred to in subsection (3) is not an Olympic bus lane contravention in so far as Part 6 of the Traffic Management Act 2004 applies in relation to it by virtue of section 15 or 16. (5)For the purposes of this section, section 144 of the Transport Act 2000 has effect as if subsection (9) were omitted except so far as necessary for the purpose of authorising regulation 4 of the Bus Lane Regulations as modified by subsection (6) of this section. (6)For the purposes of this section, the Bus Lane Regulations have effect as if for regulation 4 there were substituted the regulation 4 set out in section 16D. (7)The Secretary of State may direct the approved local authority for a road outside Greater London to exercise its powers under the Bus Lane Regulations in respect of an Olympic bus lane contravention. (8)If an approved local authority for a road fails to comply with a direction under subsection (7), the Olympic Delivery Authority may, with the consent of the Secretary of State, act as the approved local authority for that road. (9)If the Authority acts as the approved local authority for a road by virtue of subsection (8), it may recover from the approved local authority, as if it were a debt, the reasonable cost of acting. (10)In this section— “approved local authority” and “bus lane” each have the same meaning as in section 144 of the Transport Act 2000, and “the Bus Lane Regulations” means the Bus Lane Contraventions (Penalty Charges, Adjudication and Enforcement) (England) Regulations 2005 (S.I. 2005/2757). 16DSection 16C: supplemental The regulation 4 of the Bus Lane Contraventions (Penalty Charges, Adjudication and Enforcement) (England) Regulations 2005 (S.I. 2005/2757) referred to in section 16C(6) is as follows— “Level of penalty charges 4 (1) It is the duty of the Olympic Delivery Authority (“the Authority”) to set the levels of charges applicable to Olympic bus lane contraventions (within the meaning of section 16C of the London Olympic Games and Paralympic Games Act 2006). (2)Different levels of charges may be set for the areas of different approved local authorities, for different parts of the area of an approved local authority and for different cases or classes of case. (3)The Authority must submit to the Secretary of State for approval the levels of charges that it proposes to set. (4)If— (a)the Authority fails to discharge its duty under paragraph (1); or (b)the Secretary of State does not approve the levels of charges proposed by the Authority,the levels of charges must be set by the Secretary of State. (5)The Authority must publish, in such manner as the Secretary of State may determine, the levels of charges set in accordance with this regulation. (6)In the circumstances described in regulation 8(5)(f), an authority must accept a sum equivalent to one half of the level of charge set in accordance with this regulation in full payment of a penalty charge. (7)In the circumstances described in regulation 8(5)(k), an authority may increase a penalty charge to a sum equivalent to one and a half times the level of charge set in accordance with this regulation.”” 9Goods vehicle operator licences After section 16D of the London Olympic Games and Paralympic Games Act 2006, insert— “16EGoods vehicle operator licences: waiver of procedural requirements (1)This section applies in a case where, on an application to vary an operator’s licence under section 17 of the Goods Vehicles (Licensing of Operators) Act 1995 (“the 1995 Act”), a traffic commissioner is satisfied that— (a)the variation applied for has a connection with the London Olympics, (b)there would not, but for this section, be sufficient time to dispose of the application before the beginning of the London Olympics period, and (c)the circumstances in which the application is being made are such that, but for this section, it could not have been made in sufficient time to be disposed of before the beginning of that period. (2)The traffic commissioner may direct— (a)that subsection (3) is to apply in relation to the application, and (b)if the traffic commissioner proposes to hold an inquiry under section 35 of the 1995 Act in relation to the application, that subsection (4) is to apply in relation to the inquiry. (3)If the traffic commissioner gives the direction under subsection (2)(a), the following provisions of the 1995 Act do not apply in relation to the application— (a)section 17(3) (publication of notice by traffic commissioner); (b)section 18 (publication of notice by operator). (4)If the traffic commissioner gives the direction under subsection (2)(b), Schedule 4 to the Goods Vehicles (Licensing of Operators) Regulations 1995 (S.I. 1995/2869), in its application to the inquiry, has effect as if for sub-paragraph (3) of paragraph 1 there were substituted— “(3)The traffic commissioner may abridge the periods referred to in sub-paragraphs (1) and (2).” (5)Section 23 of the 1995 Act (conditions as to use of operating centres) applies in relation to the licence as if the application were an application of which notice has been published under section 17(3) of that Act. (6)Such variations as are made to the licence on the application, including by the attachment of conditions under section 21 or 23 of the 1995 Act (road safety and operating centres), have effect only during the London Olympics period. (7)Subsection (3)(a) does not affect the liability incurred in respect of the application under regulation 3 of the Goods Vehicles (Licensing of Operators) (Fees) Regulations 1995 (S.I. 1995/3000) (which requires payment of a fee on an application for variation for which publication is required by section 17(3) of the 1995 Act). (8)The power to give a direction under subsection (2) includes power to vary or revoke the direction. (9)In exercising functions under this section, the traffic commissioner must act under the general directions of, and have regard to guidance given by, the senior traffic commissioner. (10)In this section, “operator’s licence” has the same meaning as in the 1995 Act (see section 2(1) of that Act).” Supplementary 10Commencement and duration, extent and application, and short title (1)The preceding provisions of this Act come into force at the end of the period of two months beginning with the day on which this Act is passed. (2)Sections 4 to 9 are repealed at the end of the London Olympics period within the meaning of the London Olympic Games and Paralympic Games Act 2006 (see section 1 of that Act). (3)Subsection (2) does not affect any liability incurred, or prevent any liability arising, by virtue of a provision of that Act in respect of a contravention to which a penalty charge is applicable; and a penalty charge may be imposed in respect of the contravention as if sections 4 to 8 had not been repealed. (4)Nothing in subsection (3) affects section 16 of the Interpretation Act 1978 (general savings on repeal). (5)Sections 1, 2 and 9 extend to England and Wales and Scotland. (6)Section 3 and this section extend to England and Wales, Scotland and Northern Ireland. (7)Sections 4 to 8 extend to England and Wales only. (8)Section 3 applies in respect of anything done whether in the United Kingdom or elsewhere. (9)Sections 4 to 8 apply only in relation to— (a)places in England, and (b)things done in or in respect of England. (10)This Act may be cited as the London Olympic Games and Paralympic Games (Amendment) Act 2011. ### Part 1 Early years provision 1Free of charge early years provision (1)Part 1 of the Childcare Act 2006 (functions of local authorities in England in relation to childcare) is amended as set out in subsections (2) and (3). (2)For section 7 (duty to secure prescribed early years provision free of charge) substitute— “7Duty to secure early years provision free of charge in accordance with regulations (1)An English local authority must secure that early years provision of such description as may be prescribed is available free of charge, in accordance with any regulations under this subsection, for each young child in their area who— (a)is under compulsory school age, and (b)is of such description as may be prescribed. (2)Regulations under subsection (1) may in particular include provision about— (a)how much early years provision is to be made available in pursuance of the duty imposed by subsection (1); (b)the times at which, and periods over which, early years provision is to be made available in pursuance of that duty. (3)In discharging the duty under subsection (1) a local authority must have regard to any guidance given from time to time by the Secretary of State.” (3)After section 13 insert— “13ASupply of information: free of charge early years provision (1)This subsection applies to information held for the purposes of functions relating to tax credits— (a)by the Commissioners for Her Majesty’s Revenue and Customs, or (b)by a person providing services to them, in connection with the provision of those services. (2)This subsection applies to information held for the purposes of functions relating to social security— (a)by the Secretary of State, or (b)by a person providing services to the Secretary of State, in connection with the provision of those services. (3)Information to which subsection (1) or (2) applies may be supplied to the Secretary of State, or a person providing services to the Secretary of State, for use for the purpose of determining eligibility for free of charge early years provision. (4)Information to which subsection (2) applies may be supplied to an English local authority for use for that purpose. (5)Information received by virtue of subsection (3) may be supplied— (a)to another person to whom it could have been supplied under that subsection, or (b)to an English local authority,for use for that purpose. (6)The references in subsections (4) and (5)(b) to an English local authority include references to a person exercising on behalf of an English local authority functions relating to eligibility for free of charge early years provision. (7)For the purposes of this section and section 13B, free of charge early years provision is early years provision which is required to be made available in pursuance of the duty imposed by section 7. (8)This section does not limit the circumstances in which information may be supplied apart from this section. 13BUnauthorised disclosure of information received under section 13A (1)A person commits an offence if the person discloses any information— (a)which the person received by virtue of any of subsections (3) to (5) of section 13A, and (b)which relates to a particular person,unless the information is disclosed in accordance with subsection (2). (2)Information is disclosed in accordance with this subsection if it is disclosed in any of the following ways— (a)in the case of information received by virtue of section 13A(3), in accordance with section 13A(5); (b)in the course of a duty that the person disclosing it has in connection with the exercise of functions relating to eligibility for free of charge early years provision; (c)in accordance with an enactment or an order of a court; (d)with consent given by or on behalf of the person to whom the information relates. (3)It is a defence for a person charged with an offence under subsection (1) to prove that the person reasonably believed that the disclosure was lawful. (4)A person guilty of an offence under subsection (1) is liable— (a)on conviction on indictment, to imprisonment for a term not exceeding two years, or a fine, or both; (b)on summary conviction, to imprisonment for a term not exceeding 12 months, or a fine not exceeding the statutory maximum, or both. (5)In relation to an offence committed before the commencement of section 154(1) of the Criminal Justice Act 2003, the reference in subsection (4)(b) to 12 months is to be read as a reference to 6 months.” (4)Section 100 of the Childcare Act 2006 (provision of information about young children: transitory provision) is repealed. Part 2 Discipline 2Power of members of staff at schools to search pupils (1)Chapter 2 of Part 10 of EA 1996 (punishment and restraint of pupils) is amended as set out in subsections (2) to (5). (2)In section 550ZA (power of members of staff to search pupils for prohibited items: England)— (a)in subsection (3) (prohibited items), after paragraph (e) insert— “(ea)an article that the member of staff reasonably suspects has been, or is likely to be, used— (i)to commit an offence, or (ii)to cause personal injury to, or damage to the property of, any person (including P);”; (b)in that subsection, after paragraph (f) insert— “(g)any other item which the school rules identify as an item for which a search may be made.”; (c)after subsection (4), insert— “(4A)In subsection (3)(ea)(i), “offence” includes anything that would be an offence but for the operation of any presumption that a person under a particular age is incapable of committing an offence. (4B)In subsection (3)(g), the “school rules” means— (a)in the case of a maintained school or a non-maintained special school, rules in force at the school that are made under measures determined and publicised by the head teacher under section 89 of the Education and Inspections Act 2006; (b)in the case of any other school, measures relating to discipline in the school that are determined and publicised in accordance with regulations. (4C)In subsection (4B)(a)— “maintained school” means— (a)a community, foundation or voluntary school, (b)a community or foundation special school, (c)a maintained nursery school, or (d)a pupil referral unit; “non-maintained special school” means a school that is approved under section 342.” (3)In section 550ZB (power of search under section 550ZA: supplementary)— (a)in subsection (5), after “section 550ZA” insert “to search for an item within section 550ZA(3)(a) to (f)”; (b)in subsection (6)— (i)in paragraph (b), after “P” insert “, unless the condition in subsection (6A) is satisfied”; (ii)in paragraph (c), after “staff” insert “, unless the condition in subsection (6A) is satisfied”; (c)after subsection (6), insert— “(6A)The condition is satisfied if— (a)the person carrying out the search reasonably believes that there is a risk that serious harm will be caused to a person if the search is not carried out as a matter of urgency, and (b)in the time available it is not reasonably practicable for the search to be carried out by a person of the same sex as P or in the presence of another member of staff (as the case may be).”; (d)in subsection (7), in paragraph (b), after “staff” insert “, unless the condition in subsection (7A) is satisfied”; (e)after subsection (7), insert— “(7A)The condition is satisfied if— (a)the person carrying out the search reasonably believes that there is a risk that serious harm will be caused to a person if the search is not carried out as a matter of urgency, and (b)in the time available it is not reasonably practicable for the search to be carried out in the presence of another member of staff.” (4)In section 550ZC (power to seize items found during search under section 550ZA)— (a)in subsection (2) after “subsection (1)” insert “to seize an item within section 550ZA(3)(a) to (f) or anything within subsection (1)(b)”; (b)after subsection (6) insert— “(6A)A person who seizes an item that is a prohibited item by virtue of section 550ZA(3)(ea) (article used in commission of offence or to cause personal injury or damage to property) under subsection (1) must— (a)deliver the item to a police constable as soon as reasonably practicable, (b)return the item to its owner, (c)retain the item, or (d)dispose of the item. (6B)A person who seizes an item that is a prohibited item by virtue of section 550ZA(3)(g) (item for which search may be made under school rules) under subsection (1) must return it to its owner, retain it or dispose of it. (6C)In deciding what to do with an item under subsection (6A) or (6B), the person who seized it must have regard to guidance issued for the purpose of this section by the Secretary of State. (6D)Subsections (6E) and (6F) apply to an item that— (a)has been seized under subsection (1), (b)is a prohibited item by virtue of section 550ZA(3)(ea) or (g), and (c)is an electronic device. (6E)The person who seized the item may examine any data or files on the device, if the person thinks there is a good reason to do so. (6F)Following an examination under subsection (6E), if the person has decided to return the item to its owner, retain it or dispose of it, the person may erase any data or files from the device if the person thinks there is a good reason to do so. (6G)In determining whether there is a good reason for the purposes of subsection (6E) or (6F), the person must have regard to any guidance issued for the purposes of this section by the Secretary of State.”; (c)in subsection (9), for “and (5)” substitute “, (5) and (6A)”. (5)In section 550ZD (section 550ZC: supplementary)— (a)in subsection (1), after “(5)(a)” insert “, (6A)(a)”; (b)in subsection (2)(a), for the words from “alcohol” to “article” substitute “an item within subsection (2A)”; (c)after subsection (2), insert— “(2A)The items referred to in subsection (2)(a) are— (a)alcohol or its container; (b)a controlled drug; (c)a stolen article; (d)an item that is a prohibited item by virtue of section 550ZA(3)(ea) or (g). (2B)Subsection (3) also applies where a person— (a)erases data or a file from an electronic device under section 550ZC(6F); and (b)proves that the erasure was lawful.”; (d)in subsection (3)(a), for “or disposal” substitute “, disposal or erasure”; (e)in subsection (4), after “(2)” insert “, (2B)”. (6)In section 569 of EA 1996, in subsection (2A) (regulations subject to affirmative procedure), for “550ZA or 550ZC” substitute “550ZA(3)(f) or 550ZC(7)”. (7)In section 89 of EIA 2006 (determination by head teacher of behaviour policy), after subsection (4) insert— “(4A)In relation to a school in England, rules made under subsection (4) must identify the items for which a search may be made.” 3Power of members of staff at further education institutions to search students (1)Part 3 of FHEA 1992 (miscellaneous and general) is amended as follows. (2)In section 85AA (power of members of staff to search students for prohibited items: England), in subsection (3) (prohibited items), after paragraph (e) insert— “(ea)an article that the member of staff reasonably suspects has been, or is likely to be, used— (i)to commit an offence, or (ii)to cause personal injury to, or damage to the property of, any person (including S);”. (3)In section 85AB (power of search under section 85AA: supplementary)— (a)in subsection (6)— (i)in paragraph (b), after “S” insert “, unless the condition in subsection (6A) is satisfied”; (ii)in paragraph (c), after “staff” insert “, unless the condition in subsection (6A) is satisfied”; (b)after subsection (6), insert— “(6A)The condition is satisfied if— (a)the person carrying out the search reasonably believes that there is a risk that serious harm will be caused to a person if the search is not carried out as a matter of urgency, and (b)in the time available it is not reasonably practicable for the search to be carried out by a person of the same sex as S or in the presence of another member of staff (as the case may be).”; (c)in subsection (7), in paragraph (b), after “staff” insert “, unless the condition in subsection (7A) is satisfied”; (d)after subsection (7), insert— “(7A)The condition is satisfied if— (a)the person carrying out the search reasonably believes that there is a risk that serious harm will be caused to a person if the search is not carried out as a matter of urgency, and (b)in the time available it is not reasonably practicable for the search to be carried out in the presence of another member of staff.” (4)In section 85AC (power to seize items found during search under section 85AA)— (a)after subsection (6) insert— “(6A)A person who seizes an item that is a prohibited item by virtue of section 85AA(3)(ea) (article used in commission of offence or to cause personal injury or damage to property) under subsection (1) must— (a)deliver the item to a police constable as soon as reasonably practicable, (b)return the item to its owner, (c)retain the item, or (d)dispose of the item.In deciding what to do with an item under this subsection, the person who seized it must have regard to guidance issued for the purpose of this section by the Secretary of State. (6B)Subsections (6C) and (6D) apply to an item that— (a)has been seized under subsection (1), (b)is a prohibited item by virtue of section 85AA(3)(ea), and (c)is an electronic device. (6C)The person who seized the item may examine any data or files on the device, if the person thinks there is a good reason to do so. (6D)Following an examination under subsection (6C), if the person has decided to return the item to its owner, retain it or dispose of it, the person may erase any data or files from the device if the person thinks there is a good reason to do so. (6E)In determining whether there is a good reason for the purposes of subsection (6C) or (6D), the person must have regard to any guidance issued for the purposes of this section by the Secretary of State.”; (b)in subsection (9), for “and (5)” substitute “, (5) and (6A)”. (5)In section 85AD (section 85AC: supplementary)— (a)in subsection (1), after “(5)(a)” insert “, (6A)(a)”; (b)in subsection (2)(a), for the words from “alcohol” to “article” substitute “an item within subsection (2A)”; (c)after subsection (2), insert— “(2A)The items referred to in subsection (2)(a) are— (a)alcohol or its container; (b)a controlled drug; (c)a stolen article; (d)an article that is a prohibited item by virtue of section 85AA(3)(ea). (2B)Subsection (3) also applies where a person— (a)erases data or a file from an electronic device under section 85AC(6D); and (b)proves that the erasure was lawful.”; (d)in subsection (3)(a), for “or disposal” substitute “, disposal or erasure”; (e)in subsection (4), after “(2)” insert “, (2B)”. 4Exclusion of pupils from schools in England: review (1)Chapter 3 of Part 3 of EA 2002 (maintained schools: admissions, exclusions and attendance) is amended as follows. (2)Before section 52, insert— “51AExclusion of pupils: England (1)The head teacher of a maintained school in England may exclude a pupil from the school for a fixed period or permanently. (2)The teacher in charge of a pupil referral unit in England may exclude a pupil from the unit for a fixed period or permanently. (3)Regulations must make provision— (a)requiring prescribed persons to be given prescribed information relating to any exclusion under subsection (1) or (2); (b)requiring the responsible body, in prescribed cases, to consider whether the pupil should be reinstated; (c)requiring the local authority to make arrangements enabling a prescribed person to apply to a review panel for a review, in any prescribed case, of a decision of the responsible body not to reinstate a pupil; (d)about the constitution of a review panel; (e)about the procedure to be followed on a review under paragraph (c). (4)On an application by virtue of subsection (3)(c), the review panel may— (a)uphold the decision of the responsible body, (b)recommend that the responsible body reconsiders the matter, or (c)if it considers that the decision of the responsible body was flawed when considered in the light of the principles applicable on an application for judicial review, quash the decision of the responsible body and direct the responsible body to reconsider the matter. (5)Regulations may provide for the panel to have supplementary powers, and in particular may provide that the panel has the power to make a direction about the effect on an excluded pupil of a recommendation under subsection (4)(b) or a direction under subsection (4)(c). (6)In a case where the panel gives a direction under subsection (4)(c) to the governing body of a maintained school, the panel may, in prescribed circumstances, order an adjustment of the school’s budget share for a funding period. (7)Regulations must make provision about— (a)how the amount of the adjustment is to be determined; (b)the effect of the adjustment on the budget shares of other maintained schools for the funding period. (8)Regulations under this section may also make provision— (a)for the payment by the local authority of allowances to members of the review panel; (b)requiring a person or body exercising functions under subsection (1) or (2) or under the regulations to have regard to any guidance given from time to time by the Secretary of State; (c)requiring local authorities to give prescribed information to the Secretary of State; (d)in relation to any other matter relating to the exercise of the powers conferred by subsections (1) and (2). (9)Regulations made by virtue of subsection (8)(a) may provide for any of the provisions of sections 173 to 174 of the Local Government Act 1972 (allowances to members of local authorities and other bodies) to apply with prescribed modifications in relation to members of a review panel. (10)In this section— “budget share” and “funding period” have the same meaning as in Part 2 of the School Standards and Framework Act 1998; “exclude”, in relation to the exclusion of a pupil from a school or pupil referral unit, means exclude on disciplinary grounds (and “exclusion” is to be construed accordingly); “maintained school” has the same meaning as in Chapter 1; “the responsible body” means— (a)in relation to exclusion from a maintained school, the governing body of the school; (b)in relation to exclusion from a pupil referral unit, such person as may be prescribed. (11)In relation to any time when no responsible body is prescribed in relation to permanent exclusion from a pupil referral unit, subsection (3) has effect in relation to such an exclusion as if— (a)paragraph (b) were omitted, and (b)the decision referred to in paragraph (c) were the decision of the teacher in charge of the unit permanently to exclude the pupil. (12)Regulations may make provision for this section and regulations made under it to apply, with prescribed modifications, in relation to Academies or a description of Academy.” (3)In section 52 (exclusion of pupils)— (a)in subsection (1), after “maintained school” insert “in Wales”; (b)in subsection (2), after “pupil referral unit” insert “in Wales”; (c)in subsection (4)— (i)in paragraph (b), omit from first “(in” to “Wales)”; (ii)in paragraph (c), omit “the Secretary of State or” and “as the case may be,”; (d)in the heading, at the end insert “: Wales”. (4)Schedule 1 (consequential amendments) has effect. 5Repeal of requirement to give notice of detention to parent: England In section 92 of EIA 2006 (enforcement of disciplinary penalties: detention outside school sessions), in subsection (3)(d), after “that” insert “, in relation to a pupil at a school in Wales,”. 6Repeal of duty to enter into behaviour and attendance partnership Section 248 of ASCLA 2009 (co-operation with a view to promoting good behaviour etc: England) is repealed. Part 3 School workforce Abolition of the General Teaching Council for England 7Abolition of the General Teaching Council for England (1)Section 1 of THEA 1998 (the General Teaching Council for England) is amended as follows. (2)For subsection (1), substitute— “(1)In this Act, “the Council” means the General Teaching Council for Wales (see section 8).” (3)For subsection (3), substitute— “(3)The functions conferred on the Council by or under this Chapter are exercisable by them only in relation to Wales.” (4)Omit subsection (10). (5)For the heading, substitute “Aims and constitution of the Council”. 8Functions of Secretary of State in relation to teachers (1)In Part 8 of EA 2002 (teachers), after section 141 insert— “Teacher misconduct etc: England 141ATeachers to whom sections 141B to 141E apply (1)Sections 141B to 141E apply to a person who is employed or engaged to carry out teaching work at— (a)a school in England, (b)a sixth form college in England, (c)relevant youth accommodation in England, or (d)a children’s home in England. (2)In subsection (1)— “children’s home” has the same meaning as in the Care Standards Act 2000; “teaching work” means work of a kind specified in regulations under this section (and such regulations may make provision by reference to specified activities or by reference to the circumstances in which activities are carried out). 141BInvestigation of disciplinary cases by Secretary of State (1)The Secretary of State may investigate a case where an allegation is referred to the Secretary of State that a person to whom this section applies— (a)may be guilty of unacceptable professional conduct or conduct that may bring the teaching profession into disrepute, or (b)has been convicted (at any time) of a relevant offence. (2)Where the Secretary of State finds on an investigation of a case under subsection (1) that there is a case to answer, the Secretary of State must decide whether to make a prohibition order in respect of the person. (3)Schedule 11A (regulations about decisions under subsection (2)) has effect. (4)In this section— a “prohibition order” means an order prohibiting the person to whom it relates from carrying out teaching work; “teaching work” has the same meaning as in section 141A(1); “relevant offence”, in relation to a person, means— (a)in the case of a conviction in England and Wales, a criminal offence other than one having no material relevance to the person’s fitness to be a teacher, and (b)in the case of a conviction elsewhere, an offence which, if committed in England and Wales, would be within paragraph (a). 141CList of persons prohibited from teaching etc (1)The Secretary of State must keep a list containing— (a)the names of persons in relation to whom a prohibition order has effect, and (b)the names of persons who have begun, but have failed satisfactorily to complete, an induction period under section 135A in such circumstances as may be prescribed. (2)The Secretary of State may include on the list the name of any person who has been prohibited from teaching in Wales, Scotland or Northern Ireland that the Secretary of State thinks appropriate to include on the list. (3)The Secretary of State must secure that, where the name of a person is included on the list because an interim prohibition order has effect in respect of the person, there is an indication on the list to that effect. (4)The Secretary of State must secure that, where the name of a person is included on the list because the person has failed satisfactorily to complete an induction period under section 135A, there is an indication on the list to that effect. (5)The list may contain such other information in relation to the persons whose names are included on it as the Secretary of State considers appropriate. (6)The list must be available for inspection by members of the public. (7)In this section— “prohibition order” has the same meaning as in section 141B; “interim prohibition order” means an order made by virtue of paragraph 3 of Schedule 11A. 141DSupply of information following dismissal, resignation etc (1)This section applies where a relevant employer has ceased to use the services of a teacher because the teacher has been guilty of serious misconduct. (2)This section also applies where a relevant employer might have ceased to use the services of a teacher as mentioned in subsection (1) had the teacher not ceased to provide those services. (3)The employer must consider whether it would be appropriate to provide prescribed information about the teacher to the Secretary of State. (4)In this section— “relevant employer” means— (a)a local authority; (b)a person exercising a function relating to the provision of education on behalf of a local authority; (c)the proprietor of a school; (d)a sixth form college corporation; (e)a person who employs a person to teach in a children’s home or in relevant youth accommodation; “education” includes vocational, social, physical and recreational training; “children’s home” has the same meaning as in the Care Standards Act 2000; “services” includes professional and voluntary services; “teacher” means a person within section 141A(1). 141ESupply of information by contractor, agency etc (1)This section applies where arrangements have been made by a person (the “agent”) for a teacher to carry out work at the request of or with the consent of a relevant employer (whether or not under a contract) and the agent has terminated the arrangements because the teacher has been guilty of serious misconduct. (2)This section also applies where the agent— (a)might have terminated the arrangements as mentioned in subsection (1) had the teacher not terminated them, or (b)might have refrained from making new arrangements because of the teacher’s serious misconduct had the teacher not ceased to be available for work. (3)The agent must consider whether it would be appropriate to provide prescribed information about the teacher to the Secretary of State. (4)In this section “relevant employer” and “teacher” have the same meanings as in section 141D.” (2)In EA 2002, after Schedule 11, insert— Section 141B “SCHEDULE 11A REGULATIONS ABOUT DECISIONS UNDER SECTION 141B Regulations: general 1The Secretary of State must make regulations in accordance with the following provisions of this Schedule. Procedure for decisions under section 141B(2) 2(1)Regulations under paragraph 1 must make provision about the procedure to be followed by the Secretary of State in reaching a decision under section 141B(2). (2)The regulations must not require a person to give evidence or produce any document or other material evidence which the person could not be compelled to give or produce in civil proceedings in any court in England and Wales. (3)The regulations may make provision for any functions of the Secretary of State under section 141B to be excluded or restricted in such circumstances as may be specified in or determined under the regulations. (4)The circumstances include, in particular, where the Secretary of State considers this to be appropriate taking into account the powers of the Independent Safeguarding Authority under the Safeguarding Vulnerable Groups Act 2006. Interim prohibition orders 3(1)Regulations under paragraph 1 may make provision for the Secretary of State to make an interim prohibition order, pending the Secretary of State’s final decision under section 141B (2). (2)Regulations about interim prohibition orders must provide that an interim prohibition order may be made only if the Secretary of State considers that it is necessary in the public interest to do so. (3)Regulations about interim prohibition orders must provide that the Secretary of State must review an interim prohibition order— (a)within six months of the order being made, and (b)within each subsequent six month period,if the person to whom the order relates makes an application to the Secretary of State for such a review. Prohibition orders 4(1)Regulations under paragraph 1 may make provision— (a)about the service on a person to whom a prohibition order relates of notice of the order and of the right to appeal against the order under paragraph 5; (b)about the publication of information relating to the case of a person to whom a prohibition order relates; (c)prescribing circumstances in which a person to whom a prohibition order relates may nevertheless carry out teaching work (within the meaning of section 141A). (2)Regulations under paragraph 1 may also make provision— (a)as to the time when a prohibition order takes effect; (b)allowing a person to whom a prohibition order relates to apply to the Secretary of State for the order to be set aside; (c)as to the minimum period for which a prohibition order must be in effect before such an application may be made; (d)as to the procedure relating to such an application. Appeals against prohibition orders 5(1)Regulations under paragraph 1 must make provision conferring on a person to whom a prohibition order relates a right to appeal against the order to the High Court. (2)The regulations must provide that an appeal must be brought within 28 days of the person being served with notice of the prohibition order. (3)No appeal is to lie from any decision of the Court on such an appeal. (4)In this paragraph, “prohibition order” does not include an interim prohibition order made by virtue of paragraph 3. Supplementary provisions 6(1)Regulations under paragraph 1 may make incidental and supplementary provision, including provision— (a)where a prohibition order has effect in relation to a person, for the Secretary of State to serve notice of the order on the person’s employer; (b)requiring the employer of such a person to take such steps in consequence of the order (which may include dismissing the person) as may be prescribed; (c)authorising the delegation of functions conferred by virtue of this Schedule and the determination of matters by any person or persons specified in the regulations. (2)Regulations under paragraph 1 may also make provision— (a)for the Secretary of State to make a decision in a particular case about the effect in England of an order prohibiting a person from teaching in schools in Wales, Scotland or Northern Ireland; (b)about the effect in general in England of orders prohibiting a person from teaching in schools in Wales, Scotland or Northern Ireland.” 9Requirement for teachers in England to serve induction period In Part 8 of EA 2002 (teachers), after section 135 insert— “Induction periods: teachers in England 135ARequirement to serve induction period: teachers in England (1)Regulations may make provision for, and in connection with, requiring persons employed as teachers at relevant schools in England, subject to such exceptions as may be provided by or under the regulations, to have satisfactorily completed an induction period of not less than three school terms in— (a)a relevant school, (b)in such circumstances as may be prescribed, a nursery school that— (i)is not maintained by a local authority, and (ii)is not a special school, (c)in such circumstances as may be prescribed, an independent school, or (d)in such circumstances as may be prescribed, an institution within the further education sector (or an institution within the further education sector of a prescribed description). (2)Regulations under this section may, in particular, make provision— (a)as to the length of the induction period in any prescribed circumstances; (b)as to periods of employment which are to count towards the induction period; (c)as to the number of induction periods that a person may serve, and the circumstances in which a person may serve more than one induction period; (d)precluding a relevant school, in such circumstances as may be prescribed, from being one at which an induction period may be served; (e)as to supervision and training during a person’s induction period; (f)authorising the Secretary of State to determine the standards against which a person is to be assessed for the purpose of deciding whether the person has satisfactorily completed an induction period; (g)requiring the appropriate body to decide whether a person— (i)has achieved those standards and has accordingly satisfactorily completed his or her induction period, or (ii)should have his or her induction period extended by such period as may be determined by the appropriate body, or (iii)has failed satisfactorily to complete his or her induction period; (h)requiring the head teacher of a school to make a recommendation to the appropriate body as to whether a person has achieved the standards mentioned in paragraph (f); (i)requiring the appropriate body to inform the Secretary of State of any decision under paragraph (g); (j)requiring the employer of a person employed as a teacher at a relevant school to secure— (i)the termination of that person’s employment as a teacher, or (ii)that the person only undertakes such teaching duties as may be determined in accordance with the regulations,in such circumstances following a decision that the person has failed satisfactorily to complete his or her induction period as may be prescribed; (k)authorising or requiring the appropriate body to exercise such other functions as may be prescribed (which may include functions with respect to the provision of assistance to schools or to institutions within the further education sector or of training for teachers); (l)authorising the appropriate body in such circumstances as may be prescribed to make such reasonable charges in connection with the exercise of its functions under the regulations as it may determine; (m)requiring any person or body exercising any prescribed function under the regulations to have regard to any guidance given from time to time by the Secretary of State as to the exercise of that function. (3)Regulations under subsection (1)(d) may, in particular— (a)provide that an induction period may not be begun without approval of the appropriate body for the serving of that induction period; (b)provide for approval to be general or specific; (c)make provision (including transitional provision) about the withdrawal of approval; (d)impose conditions or limitations on the appropriate body’s power to give or withhold approval. (4)In this section— “the appropriate body” means such person or body (including a local authority) as may be prescribed by, or determined by the Secretary of State in accordance with, regulations under this section (and such regulations may provide for an appropriate body which is not a local authority to include a representative of such an authority); “relevant school” means a school maintained by a local authority or a special school not so maintained. (5)In the application of this section to an institution within the further education sector— (a)a reference to a school term is to be read as a reference to a term of the institution; (b)a reference to the head teacher of a school is to be read as a reference to the principal of the institution. 135BInduction periods: appeals (1)Regulations under section 135A must include provision conferring on a person aggrieved by a decision under subsection (2)(g) of that section a right to appeal against the decision to the Secretary of State. (2)A decision on an appeal made by virtue of subsection (1) is to be final. (3)Regulations under section 135A made in pursuance of subsection (1) may make provision for, or for the determination in accordance with the regulations of, such matters relating to appeals as the Secretary of State considers necessary or expedient. 135CInduction periods: supplementary (1)During the induction period which a person is required to serve by virtue of regulations under section 135A, the provisions of section 131 (appraisal of teachers’ performance) and regulations under that section do not apply to the person. (2)Where, in accordance with a requirement imposed by virtue of subsection (2)(j)(ii) of section 135A, a teacher employed at a school maintained by a local authority— (a)continues to be employed at the school, but (b)is not undertaking his or her normal teaching duties there,any costs incurred by the local authority in respect of the teacher’s emoluments are not to be met from the school’s budget share for any funding period except in so far as the authority have good reason for deducting those costs, or any part of those costs, from that share. Nothing in this subsection applies to a maintained school at any time when the school does not have a delegated budget. (3)In subsection (2)— (a)the references to a school’s budget share and to a school not having a delegated budget have the same meaning as in Part 2 of the School Standards and Framework Act 1998; (b)“funding period”, in relation to a school’s budget share, has the same meaning as in that Part. (4)Sections 496 and 497 of the Education Act 1996 (default powers of Secretary of State) have effect in relation to the duties imposed and powers conferred by virtue of section 135A as if the bodies to which those sections apply included— (a)the governing body of a special school that is not maintained by a local authority; (b)the governing body (within the meaning given by section 90(1) of the Further and Higher Education Act 1992) of an institution within the further education sector; (c)the appropriate body (within the meaning of section 135A).” 10Abolition of the GTCE: transitional provision (1)Subsections (2) to (9) apply to a disciplinary order made by the General Teaching Council for England (“the Council”) by virtue of Schedule 2 to THEA 1998 that is in force immediately before the commencement date. (2)A prohibition order is to be treated, after the commencement date, as if it were a prohibition order made by the Secretary of State under section 141B of EA 2002. (3)A conditional registration order is to continue in force for the period during which any condition specified in the order has effect, or, if any condition specified in the order has effect without limit of time, until such time as the order is revoked. (4)A suspension order is to continue in force until the later of— (a)the end of the suspension period specified in the order, and (b)the date on which the person to whom the order relates has complied with any condition specified in the order by virtue of paragraph 4(2) of Schedule 2 to THEA 1998. (5)Where a conditional registration order remains in force after the commencement date by virtue of subsection (3), sub-paragraphs (1) to (3) of paragraph 3 of Schedule 2 to THEA 1998 continue to apply to the order, but with the modification specified in subsection (6). (6)Sub-paragraph (1) of paragraph 3 is modified so that for the words “eligible for registration under section 3” there is substituted “allowed to carry out teaching work within the meaning of section 141A of the Education Act 2002”. (7)Where a suspension order remains in force after the commencement date by virtue of subsection (4), sub-paragraphs (1) to (3) of paragraph 4 of Schedule 2 to THEA 1998 continue to apply to the order, but with the modifications specified in subsection (8). (8)Sub-paragraphs (1) and (2) of paragraph 4 are modified as follows— (a)in sub-paragraph (1)— (i)in paragraph (a), for the words “eligible for registration under section 3” there is substituted “allowed to carry out teaching work within the meaning of section 141A of the Education Act 2002”; (ii)paragraph (b) (and the “and” preceding it) is omitted; (iii)in the words following paragraph (b), for “become so eligible” there is substituted “be allowed to carry out such work”; (b)in sub-paragraph (2)— (i)in paragraph (a), for “become eligible again for registration under section 3” there is substituted “be allowed to carry out teaching work within the meaning of section 141A of the Education Act 2002”; (ii)in paragraph (b), for “become so eligible” there is substituted “be allowed to carry out such work”. (9)Where a conditional registration order or a suspension order remains in force after the commencement date by virtue of subsection (3) or (4)— (a)any regulations under Schedule 2 to THEA 1998 that make provision about the variation or revocation of disciplinary orders continue to apply in relation to the order, but those regulations have effect as if functions conferred on the Council (or a committee of the Council) by the regulations had been transferred to the Secretary of State; (b)regulations under paragraph 6 of Schedule 2 to THEA 1998 (appeals against disciplinary orders to High Court) continue to apply; (c)the Secretary of State may consider an application to vary or revoke the order. (10)The Secretary of State may include on the list maintained under section 141C of EA 2002 (list of persons prohibited from teaching etc) any person in relation to whom a conditional registration order or a suspension order is in force. (11)Where immediately before the commencement date a teacher in England was the subject of an investigation by the Council (or a committee of the Council) by virtue of Schedule 2 to THEA 1998, the Secretary of State may continue the investigation and make a decision under section 141B of EA 2002. (12)In this section— “the commencement date” means the date on which section 7 (abolition of the General Teaching Council for England) comes into force; “disciplinary order”, “conditional registration order” and “suspension order” have the same meanings as in Schedule 2 to THEA 1998 (see paragraph 2(3)). 11Abolition of the GTCE: consequential amendments (1)Schedule 2 (consequential amendments) has effect. (2)The Secretary of State may by order make changes in consequence of sections 7 to 10 to any provision of subordinate legislation made before the date on which this Act is passed. (3)“Subordinate legislation” has the meaning given by section 21(1) of the Interpretation Act 1978. 12Abolition of the GTCE: transfer schemes Schedule 3 (schemes for the transfer of staff, property, rights and liabilities from the General Teaching Council for England to the Secretary of State) has effect. Reporting restrictions 13Restrictions on reporting alleged offences by teachers (1)In Part 8 of EA 2002 (teachers), after section 141E (inserted by section 8), insert— “Allegations of offences committed by teachers in England and Wales: reporting restrictions 141FRestrictions on reporting alleged offences by teachers (1)This section applies where a person who is employed or engaged as a teacher at a school is the subject of an allegation falling within subsection (2). (2)An allegation falls within this subsection if— (a)it is an allegation that the person is or may be guilty of a relevant criminal offence, and (b)it is made by or on behalf of a registered pupil at the school. (3)No matter relating to the person is to be included in any publication if it is likely to lead members of the public to identify the person as the teacher who is the subject of the allegation. (4)Any person may make an application to a magistrates’ court for an order dispensing with the restrictions imposed by subsection (3). (5)The court may make an order dispensing with the restrictions, to the extent specified in the order, if it is satisfied that it is in the interests of justice to do so, having regard to the welfare of— (a)the person who is the subject of the allegation, and (b)the victim of the offence to which the allegation relates. (6)The power under subsection (5) may be exercised by a single justice. (7)In the case of a decision to make or refuse to make an order under subsection (5), a person mentioned in subsection (8) may, in accordance with Criminal Procedure Rules— (a)appeal to the Crown Court against the decision, or (b)appear or be represented at the hearing of such an appeal. (8)The persons referred to in subsection (7) are— (a)a person who was a party to the proceedings on the application for the order; (b)any other person with the leave of the Crown Court. (9)On an appeal under subsection (7), the Crown Court may— (a)make such order as is necessary to give effect to its determination of the appeal, and (b)make such incidental or consequential orders as appear to it to be just. (10)The restrictions in subsection (3) cease to apply once proceedings for the offence have been instituted. (11)The restrictions in subsection (3) also cease to apply if— (a)the Secretary of State publishes information about the person who is the subject of the allegation in connection with an investigation or decision under section 141B (investigation of disciplinary cases by Secretary of State) relating to the same allegation, or (b)the General Teaching Council for Wales publishes information about the person who is the subject of the allegation in connection with an investigation, hearing or determination under Schedule 2 to the Teaching and Higher Education Act 1998 (investigation of disciplinary cases by the General Teaching Council for Wales) relating to the same allegation. (12)The restrictions in subsection (3) also cease to apply if— (a)the person who is the subject of the allegation includes a matter in a publication, or (b)another person includes a matter in a publication with the written consent of the person who is the subject of the allegation;and, in either case, the inclusion of the matter in the publication would otherwise be in breach of subsection (3). (13)Written consent is to be ignored for the purposes of subsection (12)(b) if it is proved that any person interfered unreasonably with the peace or comfort of the person giving the consent, with intent to obtain it. (14)In this section— “publication” includes any speech, writing, relevant programme or other communication in whatever form, which is addressed to the public at large or any section of the public (and for this purpose, every relevant programme shall be taken to be so addressed), but does not include— (a)an indictment or other document prepared for use in particular legal proceedings, or (b)a document published by the regulator of a profession of which the person who is the subject of the allegation is a member in connection with disciplinary proceedings in relation to the person; “relevant criminal offence”, in relation to a person employed or engaged as a teacher at a school, means an offence against the law of England and Wales where the victim of the offence is a registered pupil at the school; “relevant programme” means a programme included in a programme service, within the meaning of the Broadcasting Act 1990. (15)For the purposes of this section, proceedings for an offence are instituted at the earliest of the following times— (a)when a justice of the peace issues a summons or warrant under section 1 of the Magistrates’ Courts Act 1980 in respect of the offence; (b)when a public prosecutor issues a written charge and requisition in respect of the offence; (c)when a person is charged with the offence after being taken into custody without a warrant; (d)when a bill of indictment is preferred by virtue of section 2(2)(b) of the Administration of Justice (Miscellaneous Provisions) Act 1933. 141GOffence of breach of reporting restrictions (1)This section applies if a publication includes any matter in breach of section 141F (3). (2)Where the publication is a newspaper or periodical, any proprietor, any editor and any publisher of the newspaper or periodical is guilty of an offence. (3)Where the publication is a programme included in a programme service (within the meaning of the Broadcasting Act 1990), the following are guilty of an offence— (a)any body corporate engaged in providing the programme service in which the programme is included, and (b)any person having functions in relation to the programme corresponding to those of an editor of a newspaper. (4)In the case of any other publication, any person publishing it is guilty of an offence. (5)A person guilty of an offence under this section is liable on summary conviction to a fine not exceeding level 5 on the standard scale. (6)If an offence committed by a body corporate is proved— (a)to have been committed with the consent or connivance of, or (b)to be attributable to any neglect on the part of,an officer, the officer as well as the body corporate is guilty of the offence and liable to be proceeded against and punished accordingly. (7)In subsection (6), “officer” means a director, manager, secretary or other similar officer of the body, or a person purporting to act in any such capacity. (8)If the affairs of a body corporate are managed by its members, “director” in subsection (7) means a member of that body. (9)Schedule 11B contains supplementary provision relating to an offence under this section. 141HDefences (1)Where a person is charged with an offence under section 141G, it is a defence for the person to prove either of the matters mentioned in subsection (2). (2)The matters are— (a)that, at the time of the alleged offence, the person was not aware, and neither suspected nor had reason to suspect, that the publication included the matter in question; (b)that, at the time of the alleged offence, the person was not aware, and neither suspected nor had reason to suspect, that the allegation in question had been made.” (2)Schedule 4 (offence of breaching reporting restrictions: application to providers of information society services) has effect. Abolition of the Training and Development Agency for Schools 14Abolition of the Training and Development Agency for Schools Sections 74 to 84 of, and Schedule 13 to, EA 2005 (the Training and Development Agency for Schools) are repealed. 15Training the school workforce: powers of Secretary of State and Welsh Ministers (1)Part 2 of EA 2002 (financial assistance for education and children etc) is amended as set out in subsections (2) and (3). (2)In section 14 (power of Secretary of State and Welsh Ministers to give financial assistance for purposes related to education or children etc)— (a)in subsection (2), after paragraph (c) insert— “(ca)enabling any person to receive any training for teachers or for non-teaching staff;”; (b)in subsection (2ZA), for “(2)(g)” substitute “(2)”. (3)In section 16 (terms on which assistance under section 14 is given)— (a)in subsection (1), after “appropriate” insert “, subject to subsection (2B)”; (b)in subsection (2)(b), after “appropriate” insert “, subject to subsection (2B)”; (c)after subsection (2) insert— “(2A)Subsection (2B) applies to— (a)financial assistance given under section 14 to an institution within the higher education sector, and (b)financial assistance required by virtue of subsection (2)(b) to be given to such an institution. (2B)The terms on which the assistance is given may not be framed by reference to criteria for the selection and appointment of staff or the admission of students.” (4)Part 3 of EA 2005 (training the school workforce) is amended as set out in subsections (5) to (9). (5)Before section 85 (and the italic heading preceding it), insert— “Functions of Welsh Ministers with respect to the school workforce 84AGeneral duty of Welsh Ministers with respect to teacher training In carrying out their duties under sections 10 and 11 of the Education Act 1996, the Welsh Ministers must in particular make such arrangements as they consider expedient for securing that sufficient facilities are available for the training of teachers to serve in— (a)schools maintained by local authorities in Wales, (b)institutions in Wales within the further education sector, and (c)institutions in Wales which are maintained by local authorities in Wales and provide higher education or further education (or both). 84BPower to promote careers in school workforce in Wales (1)The Welsh Ministers may promote careers in the school workforce in Wales. (2)The Welsh Ministers may exercise the power conferred by subsection (1) jointly with the Secretary of State or any other person with functions relating to careers in the school workforce. (3)The Welsh Ministers may make arrangements for the power conferred by subsection (1) to be exercised on their behalf by any other person. (4)Arrangements under subsection (3) may (in particular) make provision for that power to be exercised— (a)to the extent, and on the terms, specified in the arrangements; (b)generally or in such circumstances as are specified in the arrangements; (c)jointly with any person with whom it can be exercised jointly by the Welsh Ministers by virtue of subsection (2). (5)Arrangements under subsection (3) do not prevent the power conferred by subsection (1) from being exercised by the Welsh Ministers.” (6)In section 92 (joint exercise of functions)— (a)in subsection (1), for “A funding agency” substitute “The Secretary of State, HEFCW”; (b)in subsection (2), omit “the other funding agency,”; (c)after subsection (2) insert— “(2A)The reference in subsection (1) to the functions of the Secretary of State is to the functions of the Secretary of State relating to training for members of the school workforce.”; (d)omit subsection (3). (7)In section 93 (efficiency studies)— (a)in subsection (1), for “A funding agency” substitute “The Secretary of State and HEFCW”; (b)in subsection (2), for “a funding agency” substitute “the Secretary of State or HEFCW”; (c)in subsection (3)(a), for “support under this Part from the Agency” substitute “assistance under section 14 of the Education Act 2002 from the Secretary of State”. (8)For section 94 (duty to provide information) substitute— “94Provision of information (1)HEFCW may give the Secretary of State information for the purposes of the exercise of the Secretary of State’s functions relating to training for members of the school workforce. (2)The Secretary of State may give HEFCW information for the purposes of the exercise of their functions under any enactment. (3)The persons and bodies mentioned in subsection (4) must— (a)give the Secretary of State such information as the Secretary of State may require for the purpose of the exercise of the Secretary of State’s functions relating to training for members of the school workforce; (b)give HEFCW such information as they may require for the purpose of the exercise of their functions under any enactment. (4)The persons and bodies referred to in subsection (3) are— (a)a person receiving, or who has received or applied for, a grant, loan or other payment under section 86, or financial assistance from the Secretary of State under section 14 of the Education Act 2002; (b)a local authority.” (9)In section 100 (interpretation of Part 3)— (a)omit the definitions of “the Agency” and “a funding agency”; (b)in the definition of “the school workforce”, for “section 75(5)” substitute “subsection (1A)”; (c)in the definition of “training provider”, for “has the meaning given by section 78(3)” substitute “means a person who provides training for members of the school workforce”; (d)after subsection (1) insert— “(1A)For the purposes of this Part, the school workforce consists of the following members— (a)persons who work in schools, and (b)other persons who are teachers or who carry out work that consists of or includes teaching.” 16Abolition of the TDA: consequential amendments (1)Schedule 5 (abolition of the TDA: consequential amendments) has effect. (2)The Secretary of State may by order make changes in consequence of sections 14 and 15 to any provision of subordinate legislation made before the date on which this Act is passed. (3)The Welsh Ministers may by order make changes in consequence of sections 14 and 15, so far as applicable to Wales, to any provision of— (a)an instrument made under a Measure of the National Assembly for Wales before the date on which this Act is passed; (b)any other subordinate legislation made before the date on which this Act is passed, so far as applicable to Wales. (4)“Subordinate legislation” has the meaning given by section 21(1) of the Interpretation Act 1978. 17Abolition of the TDA: transfer schemes Schedule 6 (schemes for the transfer of staff, property, rights and liabilities from the Training and Development Agency for Schools to the Secretary of State) has effect. Abolition of the School Support Staff Negotiating Body 18Abolition of the School Support Staff Negotiating Body (1)Sections 227 to 241 of, and Schedule 15 to, ASCLA 2009 (the School Support Staff Negotiating Body) are repealed. (2)In consequence of subsection (1), in the House of Commons Disqualification Act 1975, in Part 3 of Schedule 1 (other disqualifying offices), omit “Person appointed to chair the School Support Staff Negotiating Body.” Staff: minor amendments 19Staffing of maintained schools: suspension of delegated budget (1)In section 35 of EA 2002 (staffing of community, voluntary controlled, community special and maintained nursery schools), in subsection (7) (effect of suspension of school’s delegated budget), after “the School Standards and Framework Act 1998” insert “, or section 66 of the Education and Inspections Act 2006,”. (2)In section 36 of EA 2002 (staffing of foundation, voluntary aided and foundation special schools), in subsection (7) (effect of suspension of school’s delegated budget), after “the School Standards and Framework Act 1998” insert “, or section 66 of the Education and Inspections Act 2006,”. Part 4 Qualifications and the Curriculum International comparison surveys 20Requirement for schools to participate in international surveys In Chapter 4 of Part 9 of EA 1996 (provision of information by governing bodies etc), after section 538, insert— “538APower to direct participation in international surveys The Secretary of State may direct the governing body of a community, foundation or voluntary school in England to secure that the school participates in such international education surveys as may be specified in the direction.” Ofqual 21The Chief Regulator of Qualifications and Examinations Schedule 7 (the Chief Regulator of Qualifications and Examinations) has effect. 22The qualifications standards objective In section 128 of ASCLA 2009 (Ofqual’s objectives) for subsection (2) (the qualifications standards objective) substitute— “(2)The qualifications standards objective is to secure that— (a)regulated qualifications give a reliable indication of knowledge, skills and understanding, and (b)regulated qualifications indicate — (i)a consistent level of attainment (including over time) between comparable regulated qualifications, and (ii)a consistent level of attainment (but not over time) between regulated qualifications and comparable qualifications (including those awarded outside the United Kingdom) which are not qualifications to which this Part applies.” 23Enforcement powers (1)Part 7 of ASCLA 2009 (the Office of Qualifications and Examinations Regulation) is amended as set out in subsections (2) to (6). (2)In section 151 (power to give directions), for subsection (1) substitute— “(1)Subsection (2) applies if it appears to Ofqual that a recognised body has failed or is likely to fail to comply with a condition to which the recognition is subject.” (3)After section 151 insert— “151APower to impose monetary penalties (1)Subsection (2) applies if it appears to Ofqual that a recognised body has failed to comply with a condition to which the recognition is subject. (2)Ofqual may impose a monetary penalty on the recognised body. (3)A “monetary penalty” is a requirement to pay to Ofqual a penalty of an amount determined by Ofqual in accordance with section 151B. (4)Before imposing a monetary penalty on a recognised body, Ofqual must give notice to the body of its intention to do so. (5)The notice must— (a)set out Ofqual’s reasons for proposing to impose the penalty, and (b)specify the period during which, and the way in which, the recognised body may make representations about the proposal. (6)The period specified under subsection (5)(b) must not be less than 28 days beginning with the date on which the notice is received. (7)Ofqual must have regard to any representations made by the recognised body during the period specified in the notice in deciding whether to impose a monetary penalty on the body. (8)If Ofqual decides to impose a monetary penalty on the body, it must give the body a notice containing information as to— (a)the grounds for imposing the penalty, (b)how payment may be made, (c)the period within which payment is required to be made (which must not be less than 28 days), (d)rights of appeal, (e)the period within which an appeal may be made, and (f)the consequences of non-payment. 151BMonetary penalties: amount (1)The amount of a monetary penalty imposed on a recognised body under section 151A must not exceed 10% of the body’s turnover. (2)The turnover of a body for the purposes of subsection (1) is to be determined in accordance with an order made by the Secretary of State. (3)Subject to subsection (1), the amount may be whatever Ofqual decides is appropriate in all the circumstances of the case. 151CMonetary penalties: appeals (1)A recognised body may appeal to the First-tier Tribunal against— (a)a decision to impose a monetary penalty on the body under section 151A; (b)a decision as to the amount of the penalty. (2)An appeal under this section may be made on the grounds— (a)that the decision was based on an error of fact; (b)that the decision was wrong in law; (c)that the decision was unreasonable. (3)The requirement to pay the penalty is suspended pending the determination of an appeal under this section. (4)On an appeal under this section the Tribunal may— (a)withdraw the requirement to pay the penalty; (b)confirm that requirement; (c)vary that requirement; (d)take such steps as Ofqual could take in relation to the failure to comply giving rise to the decision to impose the requirement; (e)remit the decision whether to confirm the requirement to pay the penalty, or any matter relating to that decision, to Ofqual. 151DMonetary penalties: interest and recovery (1)This section applies if all or part of a monetary penalty imposed on a recognised body is unpaid at the end of the period ending on the applicable date. (2)The applicable date is— (a)the last date on which the recognised body may make an appeal under section 151C in respect of the penalty, if no such appeal is made; (b)if an appeal under section 151C in respect of the penalty is made— (i)the date on which the appeal is determined, or (ii)if the appeal is withdrawn before being determined, the date on which the appeal is withdrawn. (3)The unpaid amount of the penalty for the time being carries interest at the rate for the time being specified in section 17 of the Judgments Act 1838 (and does not also carry interest as a judgment debt under that section). (4)The total amount of interest imposed under subsection (3) must not exceed the amount of the penalty. (5)Ofqual may recover from the body, as a civil debt due to it, the unpaid amount of the penalty and any unpaid interest.” (4)In section 152 (power to withdraw recognition), for subsection (2) substitute— “(2)Ofqual may withdraw recognition from the recognised body in respect of the award or authentication of— (a)a specified qualification or description of qualification in respect of which the body is recognised, or (b)every qualification or description of qualification in respect of which the body is recognised.” (5)After section 152 insert— “152ACosts recovery (1)Ofqual may, by notice, require a recognised body on which a sanction has been imposed to pay the costs incurred by Ofqual in relation to imposing the sanction, up to the time it is imposed. (2)The references in subsection (1) to imposing a sanction are to— (a)giving a direction under section 151; (b)imposing a monetary penalty under section 151A; (c)withdrawing recognition under section 152. (3)“Costs” includes in particular— (a)investigation costs; (b)administration costs; (c)costs of obtaining expert advice (including legal advice). (4)A notice given to a recognised body under subsection (1) must contain information as to— (a)the amount required to be paid, (b)how payment may be made, (c)the period within which payment is required to be made (which must not be less than 28 days), (d)rights of appeal, (e)the period within which an appeal may be made, and (f)the consequences of non-payment. (5)The body may require Ofqual to provide a detailed breakdown of the amount specified in the notice. 152BCosts recovery: appeals (1)A recognised body may appeal to the First-tier Tribunal against— (a)a decision under section 152A(1) to require the body to pay costs; (b)a decision as to the amount of those costs. (2)An appeal under this section may be made on the grounds— (a)that the decision was based on an error of fact; (b)that the decision was wrong in law; (c)that the decision was unreasonable. (3)The requirement to pay the costs is suspended pending the determination of an appeal under this section. (4)On an appeal under this section the Tribunal may— (a)withdraw the requirement to pay the costs; (b)confirm that requirement; (c)vary that requirement; (d)take such steps as Ofqual could take in relation to the failure to comply giving rise to the decision to impose the requirement; (e)remit the decision whether to confirm the requirement to pay the costs, or any matter relating to that decision, to Ofqual. 152CCosts: interest and recovery (1)This section applies if all or part of an amount of costs that a recognised body is required to pay under section 152A(1) is unpaid at the end of the period ending on the applicable date. (2)The applicable date is— (a)the last date on which the recognised body may make an appeal under section 152B in respect of the costs, if no such appeal is made; (b)if an appeal under section 152B in respect of the costs is made— (i)the date on which the appeal is determined, or (ii)if the appeal is withdrawn before being determined, the date on which the appeal is withdrawn. (3)The unpaid amount of the costs for the time being carries interest at the rate for the time being specified in section 17 of the Judgments Act 1838 (and does not also carry interest as a judgment debt under that section). (4)The total amount of interest imposed under subsection (3) must not exceed the amount of the costs. (5)Ofqual may recover from the body, as a civil debt due to it, the unpaid amount of the costs and any unpaid interest.” (6)In section 153 (qualifications regulatory framework), in subsection (8)(e), for “152” substitute “152C”. (7)In section 262(6) of ASCLA 2009 (orders and regulations subject to affirmative resolution procedure), after paragraph (e) insert— “(ea)an order under section 151B(2);”. Qualifications: Wales 24Enforcement powers of Welsh Ministers (1)Chapter 2 of Part 5 of EA 1997 (functions of Welsh Ministers: qualifications and the school curriculum) is amended as set out in subsections (2) to (6). (2)In section 32A (power to give directions), for subsections (1) and (2) substitute— “(1)Subsection (1A) applies if it appears to the Welsh Ministers that a recognised person has failed or is likely to fail to comply with a condition subject to which the recognition has effect. (1A)The Welsh Ministers may direct the recognised person to take or refrain from taking specified steps with a view to securing compliance with the conditions subject to which the recognition has effect. (2)Subsection (2A) applies if it appears to the Welsh Ministers that a recognised person who awards or authenticates a qualification accredited by them has failed or is likely to fail to comply with a condition subject to which the accreditation has effect. (2A)The Welsh Ministers may direct the recognised person to take or refrain from taking specified steps with a view to securing compliance with the conditions subject to which the accreditation has effect.” (3)In section 32A(5), for “32B and” substitute “32AA to”. (4)After section 32A insert— “32AAPower of Welsh Ministers to impose monetary penalties (1)Subsection (2) applies if it appears to the Welsh Ministers that a recognised person has failed to comply with a condition subject to which the recognition has effect. (2)The Welsh Ministers may impose a monetary penalty on the recognised person. (3)Subsection (4) applies if it appears to the Welsh Ministers that a recognised person who awards or authenticates a qualification accredited by them has failed to comply with a condition subject to which the accreditation has effect. (4)The Welsh Ministers may impose a monetary penalty on the recognised person. (5)A “monetary penalty” is a requirement to pay to the Welsh Ministers a penalty of an amount determined by them in accordance with section 32AB. (6)Before imposing a monetary penalty on a recognised person, the Welsh Ministers must give notice to the person of their intention to do so. (7)The notice must— (a)set out their reasons for proposing to impose the penalty, and (b)specify the period during which, and the way in which, the recognised person may make representations about the proposal. (8)The period specified under subsection (7)(b) must not be less than 28 days beginning with the date on which the notice is received. (9)The Welsh Ministers must have regard to any representations made by the recognised person during the period specified in the notice in deciding whether to impose a monetary penalty on the person. (10)If the Welsh Ministers decide to impose a monetary penalty on the person, they must give the person a notice containing information as to— (a)the grounds for imposing the penalty, (b)how payment may be made, (c)the period within which payment is required to be made (which must not be less than 28 days), (d)rights of appeal, (e)the period within which an appeal may be made, and (f)the consequences of non-payment. 32ABMonetary penalties: amount (1)The amount of a monetary penalty imposed on a recognised person under section 32AA must not exceed 10% of the person’s turnover. (2)The turnover of a person for the purposes of subsection (1) is to be determined in accordance with an order made by the Welsh Ministers. (3)Subject to subsection (1), the amount may be whatever the Welsh Ministers decide is appropriate in all the circumstances of the case. 32ACMonetary penalties: appeals (1)A recognised person may appeal to the First-tier Tribunal against— (a)a decision to impose a monetary penalty on the person under section 32AA; (b)a decision as to the amount of the penalty. (2)An appeal under this section may be made on the grounds— (a)that the decision was based on an error of fact; (b)that the decision was wrong in law; (c)that the decision was unreasonable. (3)The requirement to pay the penalty is suspended pending the determination of an appeal under this section. (4)On an appeal under this section the Tribunal may— (a)withdraw the requirement to pay the penalty; (b)confirm that requirement; (c)vary that requirement; (d)take such steps as the Welsh Ministers could take in relation to the failure to comply giving rise to the decision to impose the requirement; (e)remit the decision whether to confirm the requirement to pay the penalty, or any matter relating to that decision, to the Welsh Ministers. 32ADMonetary penalties: interest and recovery (1)This section applies if all or part of a monetary penalty imposed on a recognised person is unpaid at the end of the period ending on the applicable date. (2)The applicable date is— (a)the last date on which the recognised person may make an appeal under section 32AC in respect of the penalty, if no such appeal is made; (b)if an appeal under section 32AC in respect of the penalty is made— (i)the date on which the appeal is determined, or (ii)if the appeal is withdrawn before being determined, the date on which the appeal is withdrawn. (3)The unpaid amount of the penalty for the time being carries interest at the rate for the time being specified in section 17 of the Judgments Act 1838 (and does not also carry interest as a judgment debt under that section). (4)The total amount of interest imposed under subsection (3) must not exceed the amount of the penalty. (5)The Welsh Ministers may recover from the person, as a civil debt due to them, the unpaid amount of the penalty and any unpaid interest.” (5)In section 32B (power to withdraw recognition)— (a)for subsection (2) substitute— “(2)The Welsh Ministers may withdraw recognition from the recognised person in respect of the award or authentication of— (a)a specified qualification or description of qualification in respect of which the person is recognised, or (b)every qualification or description of qualification in respect of which the person is recognised.”; (b)for subsection (4) substitute— “(4)The Welsh Ministers may withdraw recognition from the recognised person in respect of the award or authentication of— (a)the qualification or a specified description of qualification in respect of which the person is recognised, or (b)every qualification or description of qualification in respect of which the person is recognised.” (6)After section 32B insert— “32BACosts recovery (1)The Welsh Ministers may, by notice, require a recognised person on whom a sanction has been imposed to pay the costs incurred by the Welsh Ministers in relation to imposing the sanction, up to the time it is imposed. (2)The references in subsection (1) to imposing a sanction are to— (a)giving a direction under section 32A; (b)imposing a monetary penalty under section 32AA; (c)withdrawing recognition under section 32B. (3)“Costs” includes in particular— (a)investigation costs; (b)administration costs; (c)costs of obtaining expert advice (including legal advice). (4)A notice given to a recognised person under subsection (1) must contain information as to— (a)the amount required to be paid, (b)how payment may be made, (c)the period within which payment is required to be made (which must not be less than 28 days), (d)rights of appeal, (e)the period within which an appeal may be made, and (f)the consequences of non-payment. (5)The person may require the Welsh Ministers to provide a detailed breakdown of the amount specified in the notice. 32BBCosts recovery: appeals (1)A recognised person may appeal to the First-tier Tribunal against— (a)a decision under section 32BA(1) to require the person to pay costs; (b)a decision as to the amount of those costs. (2)An appeal under this section may be made on the grounds— (a)that the decision was based on an error of fact; (b)that the decision was wrong in law; (c)that the decision was unreasonable. (3)The requirement to pay the costs is suspended pending the determination of an appeal under this section. (4)On an appeal under this section the Tribunal may— (a)withdraw the requirement to pay the costs; (b)confirm that requirement; (c)vary that requirement; (d)take such steps as the Welsh Ministers could take in relation to the failure to comply giving rise to the decision to impose the requirement; (e)remit the decision whether to confirm the requirement to pay the costs, or any matter relating to that decision, to the Welsh Ministers. 32BCCosts: interest and recovery (1)This section applies if all or part of an amount of costs that a recognised person is required to pay under section 32BA(1) is unpaid at the end of the period ending on the applicable date. (2)The applicable date is— (a)the last date on which the recognised person may make an appeal under section 32BB in respect of the costs, if no such appeal is made; (b)if an appeal under section 32BB in respect of the costs is made— (i)the date on which the appeal is determined, or (ii)if the appeal is withdrawn before being determined, the date on which the appeal is withdrawn. (3)The unpaid amount of the costs for the time being carries interest at the rate for the time being specified in section 17 of the Judgments Act 1838 (and does not also carry interest as a judgment debt under that section). (4)The total amount of interest imposed under subsection (3) must not exceed the amount of the costs. (5)The Welsh Ministers may recover from the person, as a civil debt due to them, the unpaid amount of the costs and any unpaid interest.” (7)In section 54 of EA 1997 (orders and regulations)— (a)in subsection (2), after “section” insert “32AB(2) or”; (b)after subsection (2) insert— “(2A)A statutory instrument which contains (whether alone or with other provision) an order under section 32AB(2) may not be made unless a draft of the instrument has been laid before, and approved by a resolution of, the National Assembly for Wales.” Abolition of the Qualifications and Curriculum Development Agency 25Abolition of the Qualifications and Curriculum Development Agency Sections 175 to 191 of, and Schedule 11 to, ASCLA 2009 (the Qualifications and Curriculum Development Agency) are repealed. 26Abolition of the QCDA: consequential amendments (1)Schedule 8 (abolition of the QCDA: consequential amendments) has effect. (2)The Secretary of State may by order make changes in consequence of section 25 to any provision of subordinate legislation made before the date on which this Act is passed. (3)“Subordinate legislation” has the meaning given by section 21(1) of the Interpretation Act 1978. 27Abolition of the QCDA: transfer schemes Schedule 9 (schemes for the transfer of staff, property, rights and liabilities from the QCDA to other persons) has effect. Careers education and guidance 28Education and training support services in England (1)Part 2 of ESA 2008 (education and training support services in England) is amended as set out in subsections (2) to (5). (2)Section 69 (Secretary of State directions in relation to education and training support services) is repealed. (3)In consequence of subsection (2)— (a)in section 68 (provision of support services by local authorities)— (i)omit subsection (2); (ii)in subsection (3), omit “and section 69”; (iii)in subsection (4), omit paragraph (a) (and the “and” after it); (b)in section 70(2) (local authorities: supplementary powers), omit “or 69”; (c)in section 71(8) (provision of support on conditional basis), for “68(2) and (4)” substitute “68(4)”. (4)Section 73 (duty on schools and FE institutions to permit access by persons involved in providing education and training support services) is repealed. (5)In section 76A (supply of information obtained in connection with education and training support services), omit subsection (5) (information not to be disclosed in a way that reveals identity of individual to whom it relates). (6)In consequence of the amendment made by subsection (2), omit section 255(2) of ASCLA 2009. 29Careers guidance in schools in England (1)Part 7 of EA 1997 (careers education and guidance) is amended as set out in subsections (2) to (8). (2)Before section 43 insert— “42AProvision of careers guidance in schools in England (1)The responsible authorities for a school in England within subsection (2) must secure that all registered pupils at the school are provided with independent careers guidance during the relevant phase of their education. (2)A school is within this subsection if it provides secondary education and is one of the following— (a)a community, foundation or voluntary school; (b)a community or foundation special school (other than one established in a hospital); (c)a pupil referral unit. (3)The responsible authorities for a school within subsection (2) are— (a)in the case of a school within subsection (2)(a) or (b), its governing body; (b)in the case of a pupil referral unit, the local authority that maintain it. (4)The responsible authorities must secure that careers guidance provided under subsection (1)— (a)is presented in an impartial manner, (b)includes information on options available in respect of 16 to 18 education or training, including apprenticeships, and (c)is guidance that the person giving it considers will promote the best interests of the pupils to whom it is given. (5)Careers guidance provided to pupils at a school is independent for the purposes of this section if it is provided other than by— (a)a teacher employed or engaged at the school, or (b)any other person employed at the school. (6)For the purposes of this section the relevant phase of a pupil’s education is the period— (a)beginning at the same time as the school year in which the majority of pupils in the pupil’s class attain the age of 14, and (b)ending with the expiry of the school year in which the majority of pupils in the pupil’s class attain the age of 16. (7)In this section— “apprenticeship” includes employment and training leading to the issue of an apprenticeship certificate under section 3 or 4 of the Apprenticeships, Skills, Children and Learning Act 2009; “career” includes undertaking any training, education, employment or occupation; “careers guidance” means guidance about careers; “class”, in relation to a pupil, means— (a)the teaching group in which the pupil is regularly taught, or (b)if the pupil is taught in different groups for different subjects, such one of those groups as is designated by the head teacher of the school or, in the case of a pupil at a pupil referral unit, by the teacher in charge of the unit; “16 to 18 education or training” means education or training suitable to the requirements of persons who have ceased to be of compulsory school age but have not attained the age of 18; “training” includes a voluntary or other placement apt to enable the development of any skill or competency (whether or not taking place at a time when the person concerned is still a registered pupil at a school in England).” (3)In section 43 (careers education in schools)— (a)in subsection (1), after “school” insert “in Wales”; (b)in subsection (2), omit paragraph (d) (but not the “and” after it); (c)omit subsections (2A) and (2B); (d)in subsection (3)— (i)omit “(and, where applicable, subsection (2B))”; (ii)omit paragraph (b) (but not the “and” after it); (e)omit subsection (4); (f)in subsection (6)— (i)in the definition of “class”, for the words from “, in relation” to the end substitute “has the same meaning as in section 42A;”; (ii)omit the definitions of “16-18 education or training” and “training”; (g)in the heading, at the end insert “in Wales”. (4)In section 44— (a)in subsection (8)(a), for “listed in section 43(2)(a) to (d)” substitute “in Wales listed in section 43(2)(a) and (c)”; (b)in subsection (8)(b), after “institutions” insert “in Wales”; (c)for subsection (9) substitute— “(9)It is the duty of the each of the following to secure that subsections (1), (4) and (6) are complied with— (a)the governing body of the school or institution; (b)its head teacher, principal or other head.”; (d)in subsection (10)(a), after “a school” insert “in Wales”; (e)in subsection (10)(b), after “an institution” insert “in Wales”; (f)in the heading, after “institutions” insert “in Wales”. (5)In section 45 (provision of careers information at schools and other institutions)— (a)in subsection (2)(a), for “listed in section 43(2)(a) to (d)” substitute “in Wales listed in section 43(2)(a) and (c)”; (b)in subsection (2), omit the words from “and, in the case” to the end; (c)omit subsections (2A) and (2B); (d)for subsection (3) substitute— “(3)It is the duty of each of the following to secure that subsection (1) is complied with— (a)the governing body of the school or institution; (b)its head teacher, principal or other head.”; (e)in subsection (5), for ““careers education” and “16-18 education or training”” substitute “and “careers education””. (6)In section 45A (guidance as to discharge of duties)— (a)in subsection (1), for “43(2)(a), (c) or (e)” substitute “42A(2)”; (b)in subsection (2), for “any of sections 43(3), 44(9) and 45(3)” substitute “42A(1) or (4)”; (c)in the heading, at the end insert “: schools in England”. (7)In section 45B (provision of curriculum information), in the heading, at the end insert “: Wales”. (8)In section 46 (extension or modification of provisions of sections 43 to 45)— (a)in subsection (1), for the words from “43” to “44(10)(a)(i)” substitute “42A, 43 or 44 by substituting for the period specified in section 42A(6), 43(5) or 44(10)(a)(i)”; (b)after subsection (2) insert— “(2A)The Secretary of State may by regulations make provision for requiring— (a)the governing bodies of institutions in England within the further education sector, and (b)the principals or other heads of such institutions,to secure that careers guidance is provided for any specified description of persons attending such institutions.”; (c)in subsection (3)(a), after “institutions” insert “in Wales”; (d)in subsection (5), after the definition of “careers education” insert— ““careers guidance” has the same meaning as in section 42A;”. (9)In consequence of the amendments made by subsections (1) to (8), omit— (a)paragraph 71 of Schedule 9 to LSA 2000; (b)paragraph 8 of Schedule 7 to EA 2002; (c)section 81(2) and (3) of ESA 2008; (d)section 250 of ASCLA 2009. Repeal of the diploma entitlement 30Repeal of diploma entitlement for 16 to 18 year olds (1)In section 45 of ASCLA 2009 (local authority duties in relation to the core and additional entitlements), the provisions to be inserted into EA 1996 are amended as set out in subsections (2) to (6). (2)In the italic cross-heading above section 17A, for “core and additional entitlements” substitute “core entitlement”. (3)In section 17A (duties in relation to the core and additional entitlements)— (a)in subsection (1), for “core entitlement and the additional entitlement are” substitute “core entitlement is”; (b)omit subsections (2) to (5); (c)in subsection (7), omit the definitions of “additional entitlement area” and “the additional entitlement”; (d)omit subsection (8); (e)in subsection (9)— (i)for “references in subsections (1) and (2)” substitute “reference in subsection (1)”; (ii)for “do” substitute “does”; (f)in the heading, for “core and additional entitlements” substitute “core entitlement”. (4)Omit section 17B (election for either core entitlement or additional entitlement). (5)In section 17C (the core entitlement)— (a)before subsection (1) insert— “(A1)A person over compulsory school age but under 19 has the core entitlement.”; (b)in subsection (1), for “electing for” substitute “who has”; (c)after subsection (4) insert— “(5)In this section “course of study” means a course of education or training leading to a qualification specified, or a qualification of a description specified, by the Secretary of State by order for the purposes of this subsection.” (6)Omit section 17D (the additional entitlement). (7)In section 48 of ASCLA 2009 (provision of education for persons subject to youth detention), in the section 18A to be inserted into EA 1996— (a)in subsection (2)(e), omit “and the additional entitlement” and “who have elected for them”; (b)for subsection (4) substitute— “(4)Section 17C (the core entitlement) applies for the purposes of subsection (2)(e).” (8)In section 86 of ASCLA 2009 (duties of Chief Executive of Skills Funding in respect of persons aged 19 or over or subject to adult detention)— (a)in subsection (4)(h), omit “and the additional entitlement” and “who have elected for them”; (b)for subsection (8) substitute— “(8)Section 17C of the Education Act 1996 (the core entitlement) applies for the purposes of subsection (4)(h).” 31Repeal of diploma entitlement for fourth key stage (1)Section 74 of EIA 2006 (curriculum requirements for the fourth key stage) is amended as follows. (2)In subsection (1), in the new section 85A to be inserted into EA 2002— (a)in subsection (1), for the words from “do either of the following” to the end substitute “follow a course of study in a subject within each of such one or more of the four entitlement areas specified in subsection (2) as the pupil may choose.”; (b)in subsection (2), for “(1)(a)” substitute “(1)”; (c)in subsection (4), for the words after “satisfied” substitute “if a course of study in a subject within each of the entitlement areas specified in subsection (2) is made available to the pupil by or on behalf of the school at which the pupil is a registered pupil.”; (d)in subsection (5), for “(1)(a) or (b)” substitute “(1)”; (e)in subsection (6), for the words after “means” substitute “a course of education or training which leads to such qualification as the governing body may choose from among those approved under section 98 of the Learning and Skills Act 2000 for the purposes of section 96 of that Act.” (3)Omit subsection (3). Part 5 Educational institutions: other provisions Repeal of duties of governing bodies, local authorities and others 32Duty to prepare and publish school profile (1)Section 30A of EA 2002 (duty of governing body of maintained school in England to prepare and publish school profile) is repealed. (2)In consequence of subsection (1), section 104 of EA 2005 (insertion of section 30A of EA 2002) is repealed. 33Duty to appoint school improvement partners (1)Section 5 of EIA 2006 (requirement for local authority to appoint school improvement partner for each school they maintain) is repealed. (2)In consequence of subsection (1), in section 187(3) of EIA 2006 (provisions to be read as if they were contained in EA 1996), omit paragraph (a). 34Duties in relation to school admissions (1)Part 3 of SSFA 1998 (school admissions) is amended as follows. (2)In section 85A (admission forums)— (a)in subsection (1)— (i)in the opening words, after “authority” insert “in Wales”; (ii)at the end of paragraph (a), insert “and”; (iii)omit paragraph (c) (and the “and” preceding it); (b)omit subsections (1A) to (1C); (c)in subsection (3), omit paragraph (ba) (but not the “and” following it); (d)omit subsection (3A); (e)omit subsections (5A) and (5B). (3)In section 88I (other functions of adjudicator relating to admission arrangements), in subsection (3), omit paragraph (b) (and the “or” preceding it). (4)Section 88J (changes to admission arrangements by schools adjudicator) is repealed. (5)In section 88P (reports by local authorities)— (a)in subsection (1) for “prescribed” substitute “required by the code for school admissions”; (b)omit subsections (4) and (5). (6)Schedule 10 (consequential amendments) has effect. 35Duties in relation to school meals etc (1)Part 9 of EA 1996 (ancillary functions) is amended as follows. (2)In section 512ZA (power to charge for meals etc)— (a)after subsection (1) insert— “(1A)Where a local authority in England exercise the power to charge under subsection (1), the price they charge for an item must not exceed the cost of providing that item.”; (b)in subsection (2), after “authority” insert “in Wales”. (3)In section 533 (functions of governing bodies of maintained schools with respect to provision of school meals etc)— (a)after subsection (3) insert— “(3A)Where the governing body of a school in England exercise the power to charge under subsection (3), the price they charge for an item must not exceed the cost of providing that item.”; (b)in subsection (4), after “school” insert “in Wales”. Admissions 36Objections to admission arrangements (1)Section 88H of SSFA 1998 (reference of objections to adjudicator) is amended as set out in subsections (2) to (6). (2)In subsection (2)— (a)in paragraph (a), for “an appropriate person” substitute “a body or person”; (b)after “that” insert “body or”. (3)Omit subsection (3). (4)In subsection (4) omit “or (3)”. (5)In subsection (5)— (a)in paragraph (a)(i) omit “or (3)”; (b)in paragraph (a)(ii) for “(3)” substitute “(2)”; (c)in paragraph (c) omit “or (3)”; (d)in paragraph (d) omit “or (3)”. (6)Omit subsection (6). (7)In section 88K of SSFA 1998 (sections 88H to 88J: supplementary), for subsection (2)(b) substitute— “(b)any other person or body.” New schools 37Establishment of new schools Schedule 11 (establishment of new schools) has effect. Governing bodies: constitution and dissolution 38Constitution of governing bodies: maintained schools in England (1)Section 19 of EA 2002 (governing bodies) is amended as follows. (2)After subsection (1) insert— “(1A)Regulations must provide for a governing body of a maintained school in England to consist of— (a)persons elected or appointed as parent governors, (b)the head teacher of the school, (c)a person elected as a staff governor, (d)a person appointed as a local authority governor, (e)in the case of a foundation school, a foundation special school or a voluntary school, persons appointed as foundation governors or partnership governors, and (f)such other persons as may be prescribed.” (3)In subsection (2), after “governing body” insert “of a maintained school in Wales”. (4)After subsection (4) insert— “(4A)Regulations made by virtue of subsection (3)(c) in relation to a maintained school in England may include provision for eligibility criteria for the school’s local authority governor to be such as may be specified by the school’s governing body. (4B)Regulations made by virtue of subsection (3)(e) in relation to a maintained school in England may include provision allowing the head teacher of the school to resign from office as a governor (and to withdraw any such resignation).” 39Discontinuance of federated school: governing body not to be dissolved In paragraph 5 of Schedule 1 to EA 2002 (dissolution of school governing body on discontinuance of school), after sub-paragraph (1) insert— “(1A)Sub-paragraph (1) does not apply if— (a)the school is a federated school in England, and (b)immediately after the discontinuance date, there will be more than one other school remaining in the federation. (1B)“Federation” and “federated school” have the meanings given by section 24(2).” Standards 40School inspections: exempt schools (1)Part 1 of EA 2005 (school inspections and other inspections by school inspectors) is amended as set out in subsections (2) to (8). (2)In section 5 (duty to inspect certain schools at prescribed intervals)— (a)in subsection (2), for “subsection (3)” substitute “subsections (3) and (4A)”; (b)after subsection (4), insert— “(4A)Regulations may provide that this section does not apply to prescribed categories of school in prescribed circumstances. (4B)A school to which this section does not apply by virtue of regulations under subsection (4A) is an “exempt school”.” (3)In section 6 (duty to notify parents of section 5 inspection), in subsection (1)— (a)omit “to which section 5 applies”; (b)for “that section” substitute “section 5”. (4)In section 8 (other inspections), at the end insert— “(3)If the Chief Inspector carries out an inspection of a school under subsection (2) in response to a request from the appropriate authority for the school, the Chief Inspector may charge the appropriate authority for the cost of the inspection. (4)In subsection (3), “appropriate authority” has the meaning given by section 6(3).” (5)In section 9 (power of Chief Inspector to treat other inspection as section 5 inspection)— (a)the existing provision is renumbered subsection (1); (b)at the end insert— “(2)In the case of an inspection of an exempt school under section 8, the Chief Inspector may elect to treat the inspection for the purposes of subsections (5) to (5B) and (7) of section 5, sections 6 and 7 and Chapter 2 as if it were an inspection under section 5. (3)In the case of an inspection of an exempt school under section 8(1), the Secretary of State may require the Chief Inspector to treat the inspection for the purposes of subsections (5) to (5B) and (7) of section 5, sections 6 and 7 and Chapter 2 as if it were an inspection under section 5. (4)In the case of an inspection of a school under section 8(2) which is carried out in response to a request from the appropriate authority for the school, the Chief Inspector must treat the inspection for the purposes of subsections (5) to (5B) and (7) of section 5, sections 6 and 7 and Chapter 2 as if it were an inspection under section 5. (5)In subsection (4), “appropriate authority” has the meaning given by section 6(3).”; (c)in the heading, for “of Chief Inspector” substitute “or duty”. (6)In section 12 (interpretation of Chapter 1), after the definition of “the Chief Inspector” insert— ““exempt school” has the meaning given in section 5(4B);”. (7)In section 15 (measures to be taken by local authority), in subsection (2C) for the words from “in respect of” to the end substitute “which is not treated as a section 5 inspection by virtue of section 9”. (8)In section 17 (statement to be prepared by proprietor of school), in subsection (1D) for the words from “in respect of” to the end substitute “which is not treated as a section 5 inspection by virtue of section 9”. (9)In section 121 of EA 2005 (parliamentary control of subordinate legislation)— (a)in subsection (2)(a), after “subsection” insert “(2A) or”; (b)after subsection (2) insert— “(2A)This subsection applies to regulations under section 5(4A) (power to prescribe schools exempt from inspection), apart from the first regulations to be made under that subsection. (2B)A statutory instrument which contains (whether alone or with other provisions) regulations to which subsection (2A) applies may not be made unless a draft of the instrument has been laid before, and approved by a resolution of, each House of Parliament.” 41School inspections: matters to be covered in Chief Inspector’s report (1)In section 5 of EA 2005 (duty to inspect certain schools at prescribed intervals), for subsections (5) and (5A) (matters for report), substitute— “(5)It is the general duty of the Chief Inspector, when conducting an inspection under this section, to report on the quality of education provided in the school. (5A)The Chief Inspector’s report under subsection (5) must in particular cover— (a)the achievement of pupils at the school; (b)the quality of teaching in the school; (c)the quality of the leadership in and management of the school; (d)the behaviour and safety of pupils at the school. (5B)In reporting under subsection (5), the Chief Inspector must consider— (a)the spiritual, moral, social and cultural development of pupils at the school; (b)the extent to which the education provided at the school meets the needs of the range of pupils at the school, and in particular the needs of— (i)pupils who have a disability for the purposes of the Equality Act 2010, and (ii)pupils who have special educational needs.” (2)In consequence of subsection (1), section 154 of EIA 2006 (amendments of section 5(5) of EA 2005) is repealed. 42Inspection of further education institutions: exempt institutions (1)Chapter 3 of Part 8 of EIA 2006 (inspection of further education and training etc) is amended as set out in subsections (2) to (10). (2)In section 125 (inspection of further education institutions)— (a)in subsection (1), at the end insert “subject to subsection (1A)”; (b)after that subsection insert— “(1A)The Secretary of State may by regulations provide that the duty of the Chief Inspector in subsection (1) does not apply to prescribed categories of institution in prescribed circumstances. (1B)An institution to which the duty in subsection (1) does not apply by virtue of regulations under subsection (1A) is an “exempt institution”.”; (c)in subsection (2), for “The inspections” substitute “Inspections under subsection (1)”. (3)Section 126 (other inspections) is amended as set out in subsections (4) to (9). (4)After subsection (1), insert— “(1A)The Chief Inspector must inspect an exempt institution if requested to do so by the Secretary of State.” (5)After subsection (2) insert— “(2A)On completing an inspection under subsection (1) or (1A) conducted in response to a request from the Secretary of State or any other person or body, the Chief Inspector must— (a)make a written report on the inspection; (b)arrange for the report to be published in such manner as the Chief Inspector considers appropriate.” (6)In subsection (3), after “this section” insert “conducted in any other case”. (7)In subsection (4), after “subsection (1)” insert “or (1A)”. (8)After subsection (5) insert— “(5A)In the case of an inspection conducted under subsection (1) in response to a request from the provider of the education or training concerned, the Chief Inspector may charge the provider for the cost of the inspection.” (9)At the end, insert— “(8)In this section “exempt institution” has the meaning given by section 125(1B).” (10)In section 127 (action plans), in subsection (1) at the end insert “or (1A)”. (11)In section 182 of EIA 2006 (parliamentary control of orders and regulations)— (a)in subsection (2), after paragraph (a) insert— “(aa)regulations to which subsection (2A) applies,”; (b)after subsection (2) insert— “(2A)This subsection applies to regulations made under section 125(1A) (power to prescribe institutions exempt from inspection), apart from the first regulations to be made under that subsection.”; (c)in subsection (3), after paragraph (a) insert— “(aa)regulations to which subsection (2A) applies,”. 43Inspection of boarding accommodation (1)Part 12 of the Children Act 1989 (miscellaneous and general) is amended as follows. (2)In section 87 (welfare of children in boarding schools and colleges)— (a)after subsection (1), insert— “(1A)For the purposes of this section and sections 87A to 87D, a school or college provides accommodation for a child if— (a)it provides accommodation for the child on its own premises, or (b)it arranges for accommodation for the child to be provided elsewhere (other than in connection with a residential trip away from the school).”; (b)in subsection (3), for “he is accommodated” substitute “accommodation for the child is provided”; (c)after subsection (3), insert— “(3A)Where accommodation is provided for a child by a school or college in England, the Secretary of State may at any time (including a time when the duty under subsection (3) is suspended by virtue of section 87A) direct the Chief Inspector for England to take the steps referred to in subsection (3). (3B)Where accommodation is provided for a child by a school or college in Wales, the Welsh Ministers may, at any time when the duty under subsection (3) is suspended by virtue of section 87A, take the steps referred to in subsection (3).”; (d)in subsection (5), for “its duty” substitute “any of its functions”; (e)in subsection (9A), for “he is accommodated” substitute “accommodation for the child is provided”. (3)In section 87A (suspension of duty under section 87(3))— (a)in subsection (1)(b), for “they are accommodated” substitute “accommodation for the children is provided”; (b)after subsection (4) insert— “(4A)The Secretary of State may by regulations specify matters that must be taken into account in deciding whether to appoint a person to be an inspector for the purposes of this section in relation to schools or colleges in England, or to terminate the appointment of such a person under subsection (4)(b).” (4)After section 87B insert— “87BAQuality assurance of inspectors under section 87A (1)The Chief Inspector for England must, at intervals of no more than a year, prepare and send to the Secretary of State a report about inspectors who are appointed under section 87A in relation to schools or colleges in England. (2)In preparing a report under this section the Chief Inspector for England must have regard to such matters as the Secretary of State may direct. (3)The Secretary of State may in particular give directions about— (a)matters to be taken into account in preparing a report, and (b)the form and contents of a report.” (5)In section 87C (boarding schools: national minimum standards), in subsection (1), for “in” substitute “by”. 44Schools causing concern: powers of Secretary of State (1)Part 4 of EIA 2006 (schools causing concern: England) is amended as follows. (2)In section 68 (power of Secretary of State to direct closure of school), in subsection (1), for “by virtue of section 62 (school requiring special measures)” substitute “other than by virtue of section 60A”. (3)In section 69A (power of Secretary of State to direct local authority to consider giving performance standards and safety warning notice)— (a)omit subsection (5); (b)for subsection (9) substitute— “(9)If the response states that the authority have decided not to give a warning notice to the governing body in the specified terms— (a)the response must set out the authority’s reasons for the decision, and (b)the Secretary of State may direct the authority to give the warning notice to the governing body in those terms (and to withdraw any previous warning notice given to the governing body under section 60). (9A)If the Secretary of State directs the authority under subsection (9)(b) to give a warning notice to the governing body in the specified terms, the authority must— (a)comply with the direction under subsection (9)(b) before the end of the period of 5 working days beginning with the day on which that direction is given, and (b)on the same day as they do so, give the Secretary of State a copy of the notice.”; (c)in subsection (10), for “Subsection (8)(b) applies” substitute “Subsections (8)(b) and (9A)(b) apply”; (d)after subsection (10) insert— “(11)A direction under this section must be in writing.”; (e)for the heading, substitute “Power of Secretary of State to direct local authority to give performance standards and safety warning notice”. 45Complaints: repeal of power to complain to Local Commissioner (1)Sections 206 to 224 of ASCLA 2009 (complaints against schools in England) are repealed. (2)In consequence of subsection (1)— (a)in section 409 of EA 1996 (complaints and enforcement: maintained schools)— (i)in subsection (1), after “authority” insert “in Wales” and after “schools” insert “in Wales”; (ii)in subsection (4), for “Secretary of State” substitute “Welsh Ministers”; (iii)in the heading, after “schools” insert “in Wales”; (b)in section 496 of EA 1996 (power of Secretary of State to prevent unreasonable exercise of functions), omit subsections (3) and (4); (c)in section 497 of EA 1996 (Secretary of State’s general default powers), omit subsections (4) and (5); (d)in paragraph 6 of Schedule 1 (pupil referral units: complaints)— (i)in sub-paragraph (3), after “local authority” insert “in Wales” and after “unit” insert “in Wales”; (ii)in sub-paragraph (4), for “Secretary of State” substitute “Welsh Ministers”, after “any local authority” and “a local authority” insert “in Wales”, and after “pupil referral unit” insert “in Wales”; (e)in paragraph 1 of Schedule 4 to the Local Government Act 1974 (disqualifications from acting as Local Commissioner or investigating complaint), omit sub-paragraphs (2C) and (2D); (f)in section 262(6) of ASCLA 2009 (statutory instruments subject to affirmative procedure), omit paragraph (f); (g)in Schedule 16 to ASCLA 2009 (repeals and revocations), omit Part 7 (complaints); (h)section 22 of CSFA 2010 (amendments of sections 207 and 216 of ASCLA 2009) is repealed. Finance 46Local authorities’ financial schemes In Schedule 14 to SSFA 1998 (revision of local authority schemes), in paragraph 2A, at the end insert— “(4)The Secretary of State may by a direction revise the whole or any part of a scheme maintained by a local authority in England as from such date as may be specified in the direction. (5)Before giving such a direction the Secretary of State must consult the local authority and such other persons as the Secretary of State thinks fit.” 47Payments in respect of dismissal, etc (1)Section 37 of EA 2002 (payments in respect of dismissal, etc) is amended as follows. (2)After subsection (7), insert— “(7A)Any amount payable by virtue of subsection (7) by the governing body of a maintained school in England to the local authority may be met by the governing body out of the school’s budget share for any funding period if and to the extent that the condition in subsection (7B) is met. (7B)The condition is that the governing body are satisfied that meeting the amount out of the school’s budget share will not to a significant extent interfere with the performance of any duty imposed on them by section 21(2) or by any other provision of the Education Acts.” (3)In subsection (8), after “maintained school” insert “in Wales”. 48Determination of permitted charges (1)Section 456 of EA 1996 (regulation of permitted charges) is amended as follows. (2)In subsection (4), after paragraph (a) insert— “(aa)attributable to the provision of the buildings and accommodation used in connection with the provision of the optional extra, or”. (3)In subsection (5), for “subsection (6)” substitute “subsections (6) and (6A)”. (4)After subsection (6), insert— “(6A)Where the optional extra in question consists of education which is early years provision (as defined by section 20 of the Childcare Act 2006), the cost of its provision includes the costs, or an appropriate proportion of the costs, attributable to the provision of teaching staff employed for the purpose of providing the education.” Further education institutions 49Further education institutions: amendments Schedule 12 (further education institutions: amendments) has effect. Pupil referral units 50Financing of pupil referral units (1)Section 45 of SSFA 1998 (financing of maintained schools: maintained schools to have budget shares) is amended as follows. (2)In subsection (1A), omit “or” at the end of paragraph (b), and after paragraph (c) insert “, or (d)a pupil referral unit in England.” (3)In subsection (3)— (a)in paragraph (a), after “pupil referral units” insert “in Wales”; (b)after paragraph (a) insert— “(aa)references to the governing body of a maintained school or of a school maintained by a local authority shall be read, in relation to a pupil referral unit in England, as references to the management committee for the unit (in spite of paragraph 1 of Schedule 1 to the Education Act 1996); (ab)references to governors shall be read, in relation to a pupil referral unit in England, as references to the members of the management committee for the unit;”. 51Repeal of provision changing name of pupil referral units (1)ASCLA 2009 is amended as set out in subsections (2) and (3). (2)In section 249 (short stay schools: miscellaneous)— (a)omit subsections (1) and (2) (change of name from pupil referral unit to short stay school); (b)for the heading, substitute “Regulations about pupil referral units”. (3)For the italic cross-heading above section 249, substitute “Pupil referral units”. (4)In Schedule 1 to EA 1996 (pupil referral units), in paragraph 3A— (a)in sub-paragraph (a), for “short stay school” substitute “pupil referral unit”; (b)in sub-paragraph (b), for “short stay schools”, in both places where it occurs, substitute “pupil referral units”. Part 6 Academies Academy arrangements 52Academies: removal of requirement to have specialism In section 1(6) of AA 2010 (Academy arrangements: characteristics of Academy) omit paragraph (b) (curriculum to have emphasis on particular subject area). 53Academy arrangements: post-16 education and alternative provision (1)Section 1 of AA 2010 (Academy arrangements) is amended as set out in subsections (2) to (6). (2)For subsection (5) substitute— “(5)The undertakings are— (a)to establish and maintain an educational institution in England which meets the requirements of any of the following— (i)section 1A (Academy schools); (ii)section 1B (16 to 19 Academies); (iii)section 1C (alternative provision Academies); (b)to carry on, or provide for the carrying on, of the institution.” (3)Omit subsection (6). (4)In subsection (7), for “a school within subsection (5)(a)(i)” substitute “an educational institution within section 1A(1)”. (5)In subsection (9), for “school” (in both places) substitute “institution”. (6)In subsection (10), for “A school” substitute “An educational institution”. (7)After section 1 of AA 2010 insert— “1AAcademy schools (1)An educational institution meets the requirements of this section if— (a)it is an independent school, (b)it has a curriculum satisfying the requirements of section 78 of EA 2002 (balanced and broadly based curriculum), (c)it provides education for pupils of different abilities, (d)it provides education for pupils who are wholly or mainly drawn from the area in which it is situated, and (e)it is not an alternative provision Academy (see section 1C). (2)An educational institution also meets the requirements of this section if— (a)it is an independent school, and (b)it is specially organised to make special educational provision for pupils with special educational needs. (3)An Academy which meets the requirements of this section is to be known as an Academy school. 1B16 to 19 Academies (1)An educational institution meets the requirements of this section if it is principally concerned with providing full-time or part-time education suitable to the requirements of persons over compulsory school age but under 19. (2)“Education” includes vocational, social, physical and recreational training. (3)An Academy which meets the requirements of this section is to be known as a 16 to 19 Academy. 1CAlternative provision Academies (1)An educational institution meets the requirements of this section if— (a)it is principally concerned with providing full-time or part-time education for children of compulsory school age who, by reason of illness, exclusion from school or otherwise, may not otherwise receive suitable education for any period, (b)it provides education for children of different abilities, and (c)it provides education for children who are wholly or mainly drawn from the area in which it is situated. (2)“Suitable education”, in relation to a child, means efficient education suitable to the child’s age, ability and aptitude and to any special educational needs the child may have. (3)An Academy which meets the requirements of this section is to be known as an alternative provision Academy. 1DAlternative provision Academies: powers to apply provisions with modifications (1)Regulations may provide for a statutory provision relating to maintained schools or a description of maintained school, or to pupil referral units, to apply in relation to alternative provision Academies, or a description of alternative provision Academy, with or without modifications. (2)Regulations may provide for a statutory provision relating to Academies, Academy schools or 16 to 19 Academies— (a)to apply in relation to alternative provision Academies, or a description of alternative provision Academy, with or without modifications; (b)not to apply in relation to alternative provision Academies or a description of alternative provision Academy. (3)Regulations may provide for a statutory provision relating to alternative provision Academies or a description of alternative provision Academy— (a)to apply in relation to a description of alternative provision Academy, with modifications; (b)not to apply in relation to a description of alternative provision Academy. (4)“Statutory provision” means a provision made by or under this or any other Act, whenever passed or made.” 54Consequential amendments: 16 to 19 Academies and alternative provision Academies (1)Schedule 13 (16 to 19 Academies and alternative provision Academies: consequential amendments) has effect. (2)The Secretary of State may by order make further changes in consequence of section 53 to any provision of— (a)an Act passed before, or in the same Session as, this Act; (b)subordinate legislation made before the date on which this Act is passed. (3)“Subordinate legislation” has the meaning given by section 21(1) of the Interpretation Act 1978. Academy orders 55Academy orders: involvement of religious bodies etc (1)Section 4 of AA 2010 (Academy orders) is amended as follows. (2)After subsection (1), insert— “(1A)Before making an Academy order under subsection (1)(b) in respect of a foundation or voluntary school that has a foundation, the Secretary of State must consult— (a)the trustees of the school, (b)the person or persons by whom the foundation governors are appointed, and (c)in the case of a school which has a religious character, the appropriate religious body.” (3)In subsection (4)— (a)at the end of paragraph (a), omit “and”; (b)at the end insert “, and (c)in the case of a foundation or voluntary school that has a foundation— (i)the trustees of the school, (ii)the person or persons by whom the foundation governors are appointed, and (iii)in the case of a school which has a religious character, the appropriate religious body.” (4)In subsection (5)— (a)at the end of paragraph (a), omit “and”; (b)at the end insert “, and (c)in the case of a foundation or voluntary school that has a foundation— (i)the trustees of the school, (ii)the person or persons by whom the foundation governors are appointed, and (iii)in the case of a school which has a religious character, the appropriate religious body.” (5)At the end, insert— “(8)In this section, “the appropriate religious body”, in relation to a school, means— (a)in the case of a Church of England school or a Roman Catholic school, the appropriate diocesan authority; (b)in any other case, such body or person representing the specified religion or religious denomination as is prescribed under section 88F(3)(e) of SSFA 1998. (9)In the case of a school in relation to which there is more than one religion or religious denomination specified, references to “the appropriate religious body” are to be read as references to both or all of the bodies concerned. (10)In subsections (8) and (9), “specified” means specified in the order under section 69(3) of SSFA 1998 relating to the school. (11)Expressions used in this section and SSFA 1998 have the same meaning as in that Act.” 56Academies: consultation on conversion For section 5 of AA 2010 (consultation on conversion), substitute— “5Consultation on conversion (1)Before a maintained school in England is converted into an Academy, there must be a consultation on the question of whether the conversion should take place. (2)The consultation may take place before or after an Academy order, or an application for an Academy order, has been made in respect of the school. (3)In the case of a school that is eligible for intervention (within the meaning of Part 4 of EIA 2006), the consultation may be carried out by— (a)the school’s governing body, or (b)a person with whom the Secretary of State proposes to enter into Academy arrangements in respect of the school or an educational institution that replaces it. (4)In any other case, the consultation must be carried out by the school’s governing body. (5)The consultation must seek the views of such persons as the person carrying it out thinks appropriate. (6)In the case of a federated school, references in this section to the governing body include references to any of the members of the governing body.” 57Academy conversions: federated schools (1)AA 2010 is amended as follows. (2)In section 3 (application for Academy order) after subsection (5) insert— “(6)In the case of a federated school, references in this section to the governing body include references to members of the governing body who— (a)together make up a proportion of the total number of members that is specified in, or determined in accordance with, regulations, and (b)consist of or include members of any prescribed description.” (3)In section 4 (Academy orders), in subsection (1)(a), for “the governing body of the school make an application” substitute “an application in respect of the school is made”. (4)In section 7 (transfer of school surpluses)— (a)in subsection (6)(a), after “made available” insert “in respect of the school”; (b)in subsection (6), at the end, insert “This subsection is subject to subsection (9).”; (c)in subsection (7), for “to a school’s” substitute “in respect of a school to the school’s”; (d)after subsection (8) insert— “(9)If the school is a federated school, the questions of — (a)whether the school has a surplus, and (b)if so, the amount of the surplus,are to be determined in accordance with regulations.” (5)In section 17 (interpretation of Act), in subsection (2), after the definition of “the conversion date” insert— ““federated school” has the meaning given by section 24(2) of EA 2002;”. 58Academy orders: local authority powers In section 6 of AA 2010 (effect of Academy order), after subsection (2) insert— “(2A)Subsection (2) does not prohibit the local authority from providing financial or other assistance in respect of the Academy, including by— (a)making payments in respect of some (but not all) of the expenses of maintaining the Academy, (b)providing premises, goods or services for the Academy, or (c)making premises, goods or services available to be used for the purposes of the Academy.” 59Transfer of property, rights and liabilities to Academies (1)Section 8 of AA 2010 (transfer of other property) is amended as follows. (2)For subsection (2) substitute— “(2)The Secretary of State may make a scheme (a “transfer scheme”) in relation to— (a)property used or held for the purposes of the school by a local authority or the school’s governing body, and (b)rights and liabilities (including rights and liabilities in relation to staff) of the local authority or the governing body which were acquired or incurred for the purposes of the school.” (3)In subsections (3) to (10), for “property transfer scheme” (in each place) substitute “transfer scheme”. (4)In subsection (4), for “the proprietor of the Academy” substitute “a person concerned with the running of the Academy”. (5)For the heading substitute “Transfer schemes: other property, rights and liabilities”. Academies: other provisions 60Academies: new and expanded educational institutions (1)For section 9 of AA 2010 (impact: additional schools) substitute— “9Impact: new and expanded educational institutions (1)This section applies if the Secretary of State is deciding whether to enter into Academy arrangements in relation to— (a)a new educational institution, or (b)an existing educational institution that, if the arrangements are entered into, will provide education for pupils of a wider range of ages. (2)The Secretary of State must take into account what the impact of entering into the arrangements would be likely to be on maintained schools, Academies, institutions within the further education sector and alternative provision in the area in which the institution is proposed to be, or is, situated. (3)An educational institution is not new for the purposes of this section if— (a)it replaces one or more maintained schools, Academies or sixth form colleges that have been or are to be discontinued, and (b)it provides education for persons of the same range of ages as the institution it replaces (or, as the case may be, the institutions it replaces, taken together). (4)“Alternative provision” means educational provision for which a local authority has made arrangements under section 19 of EA 1996 (exceptional provision of education in pupil referral units or elsewhere).” (2)For section 10 of AA 2010 (consultation: additional schools) substitute— “10Consultation: new and expanded educational institutions (1)This section applies before a person enters into Academy arrangements with the Secretary of State in relation to— (a)a new educational institution, other than a new educational institution that is the subject of proposals under section 7 of EIA 2006 (proposals to establish new school following invitation from local authority), or (b)an existing educational institution that, if the arrangements are entered into, will provide education for pupils of a wider range of ages. (2)The person must carry out a consultation on the question of whether the arrangements should be entered into. (3)The consultation must seek the views of such persons as the person carrying it out thinks appropriate. (4)Section 9(3) (when educational institution not new) applies for the purposes of this section.” 61Charges at boarding Academies After section 10 of AA 2010 insert— “10ACharges at boarding Academies (1)This section applies where— (a)a registered pupil at an Academy is provided with board and lodging at the Academy, and (b)the local authority for the pupil’s area is satisfied that either condition A or condition B is met. (2)Condition A is that education suitable to the pupil’s age, ability and aptitude, and to any special educational needs the pupil may have, cannot otherwise be provided for the pupil. (3)Condition B is that payment of the full amount of the charges in respect of the board and lodging would involve financial hardship to the pupil’s parent. (4)If the authority is satisfied that condition A is met, the authority must pay the full amount of the charges in respect of the board and lodging to the proprietor of the Academy. (5)If the authority is satisfied that condition B is met, the authority must pay to the proprietor of the Academy so much of the charges in respect of the board and lodging as, in the opinion of the authority, is needed to avoid financial hardship to the pupil’s parent. (6)The proprietor of the Academy must remit the charges that would otherwise be payable by the pupil’s parent, to the extent that it receives a payment from the local authority in respect of those charges under subsection (4) or (5).” 62Staff at Academies with religious character (1)Part 5A of SSFA 1998 (employment of teachers at independent schools having a religious character) is amended as set out in subsections (2) and (3). (2)In section 124A (employment of teachers at independent schools having a religious character), in subsection (1), at the end insert “, other than an Academy to which section 124AA applies”. (3)After section 124A, insert— “124AAStaff at certain Academies with religious character (1)This section applies if— (a)an Academy order has been made in respect of a foundation or voluntary controlled school which is designated by order under section 69(3) as a school having a religious character, (b)the school has been converted into an Academy (see section 4(3) of the Academies Act 2010), and (c)the Secretary of State has not made an order in respect of the school under subsection (2). (2)The Secretary of State may by order provide that this section does not apply to a school specified in the order. (3)Where there are more than two teachers at the Academy, the teachers must include persons who— (a)are selected for their fitness and competence to give religious education in accordance with the tenets of the religion or the religious denomination specified in relation to the Academy in the order under section 69(3) (as applied by section 6(8) of the Academies Act 2010), and (b)are specifically appointed to do so.A teacher employed or engaged at the Academy in pursuance of this subsection is a “reserved teacher”, and any other teacher at the Academy is a “non-reserved teacher”. (4)The number of reserved teachers in the Academy must not exceed one-fifth of the total number of teachers, including the principal (and for this purpose, where the total number of teachers is not a multiple of five, it is to be treated as if it were the next higher multiple of five). (5)In connection with the appointment of a person to be the principal of the Academy, in a case where the principal is not to be a reserved teacher, regard may be had to that person’s ability and fitness to preserve and develop the religious character of the Academy. (6)Preference may be given, in connection with the appointment, promotion or remuneration of reserved teachers at the Academy, to persons— (a)whose religious opinions are in accordance with the tenets of the religion or the religious denomination specified in relation to the Academy in the order under section 69(3) (as applied by section 6(8) of the Academies Act 2010), or (b)who attend religious worship in accordance with those tenets, or (c)who give, or are willing to give, religious education at the Academy in accordance with those tenets. (7)Regard may be had, in connection with the termination of employment or engagement of any reserved teacher at the Academy, to any conduct on the part of the teacher which is incompatible with the precepts, or with the upholding of the tenets, of the religion or religious denomination specified in the order under section 69(3) (as applied by section 6(8) of the Academies Act 2010). (8)No person, other than a reserved teacher, is to be disqualified by reason of their religious opinions, or of their attending or omitting to attend religious worship— (a)from being a teacher at the Academy, or (b)from being employed or engaged for the purposes of the Academy otherwise than as a teacher. (9)A non-reserved teacher must not be required to give religious education. (10)A non-reserved teacher must not receive any less remuneration than any other non-reserved teacher, or be deprived of, or disqualified for, any promotion or other advantage available to other non-reserved teachers— (a)for the reason that the teacher gives, or does not give, religious education, or (b)for reasons related to the teacher’s religious opinions or to the teacher’s attending or omitting to attend religious worship.” (4)In consequence of the amendments made by subsections (2) and (3)— (a)in the title to Part 5A of SSFA 1998, for “Employment of Teachers” substitute “Teachers and Staff”; (b)in section 138 of SSFA 1998 (orders and regulations), in subsection (2)(a), after “111(3)(a)” insert “, 124AA(2)”; (c)in paragraph 4 of Schedule 22 to the Equality Act 2010 (educational appointments etc based on religious belief), at the end insert— “(d)section 124AA(5) to (7) of that Act (religious considerations relating to certain teachers at Academies with religious character).” 63Academies: land Schedule 14 (Academies: land) has effect. 64Academy admissions arrangements: references to adjudicator (1)Chapter 1 of Part 3 of SSFA 1998 (school admissions: admission arrangements) is amended as follows. (2)In section 88 (admission authorities and admission arrangements)— (a)in subsection (1), omit the “and” at the end of paragraph (a); (b)in that subsection, at the end, insert “; and (c)in relation to an Academy, means the proprietor of the Academy.”; (c)in subsection (2), omit “maintained”. (3)In section 88H (reference of objections to adjudicator), after subsection (1) insert— “(1A)This section also applies where admission arrangements for an Academy have been determined by the proprietor of an Academy under Academy arrangements.” (4)In section 88I (other functions of adjudicator relating to admission arrangements), in subsection (1)— (a)after “determined” insert “— (a)”; (b)at the end insert “, or (b)by an admission authority for an Academy.” (5)In section 88K (sections 88H and 88I: supplementary)— (a)in subsection (4)(a), after “England” insert “or an Academy”; (b)in subsection (5), for the words from “means” to the end substitute “means— (a)in relation to a maintained school, the requirements imposed by or under this Part as to the content of admission arrangements for maintained schools in England, and (b)in relation to an Academy, the requirements imposed by or under Academy arrangements as to the content of its admission arrangements.” 65Academies: minor amendments Schedule 15 (Academies: minor amendments) has effect. Part 7 Post-16 education and training Abolition of the Young People’s Learning Agency for England 66Abolition of the Young People’s Learning Agency for England Sections 60 to 80 of, and Schedule 3 to, ASCLA 2009 (the Young People’s Learning Agency for England) are repealed. 67Abolition of the YPLA: consequential amendments (1)Schedule 16 (abolition of the YPLA: consequential amendments) has effect. (2)The Secretary of State may by order make further changes in consequence of section 66 to any provision of subordinate legislation made before the date on which this Act is passed. (3)“Subordinate legislation” has the meaning given by section 21(1) of the Interpretation Act 1978. 68Abolition of the YPLA: transfer schemes Schedule 17 (schemes for the transfer of staff, property, rights and liabilities from the Young People’s Learning Agency for England to other persons) has effect. Apprenticeships 69The apprenticeship offer (1)ASCLA 2009 is amended as follows. (2)After section 83 insert— “83AThe apprenticeship offer (1)The Chief Executive must secure the provision of proper facilities for apprenticeship training that is suitable to the requirements of persons who— (a)are within subsection (4), (5) or (6), and (b)have an apprenticeship opportunity.This is subject to section 83B (limit on scope of apprenticeship offer). (2)The duty imposed by subsection (1) is referred to in this section and section 83B as “the apprenticeship offer”. (3)An apprenticeship opportunity is an opportunity to— (a)enter into an apprenticeship agreement, (b)enter into any other contract of employment in connection with which training will be provided in accordance with an apprenticeship framework, or (c)undertake any other kind of working— (i)in relation to which alternative English completion conditions apply under section 1(5), and (ii)in connection with which training will be provided in accordance with an apprenticeship framework. (4)A person within this subsection is one who is over compulsory school age but under 19. (5)A person within this subsection is one who is not within subsection (4) and— (a)is a person aged under 21 towards whom a local authority in England has the duties provided for in section 23C of the Children Act 1989 (continuing functions in relation to certain formerly looked after children), or (b)is a person to whom section 23CA of that Act applies (further assistance for certain formerly looked after children aged under 25), in relation to whom a local authority in England is the responsible local authority (within the meaning of that section). (6)A person within this subsection is one who— (a)is not within subsection (4), and (b)is of a prescribed description. (7)If regulations under subsection (6)(b) describe a person by reference to an age or an age range, the age, or the upper age of the age range, must be less than 25. (8)Facilities are proper if they are— (a)of a quantity sufficient to meet the reasonable needs of individuals, and (b)of a quality adequate to meet those needs. (9)Section 83(2) and (3) (when apprenticeship training is suitable, and matters to which Chief Executive must have regard) apply for the purposes of the apprenticeship offer. (10)In complying with the apprenticeship offer the Chief Executive must make the best use of the Chief Executive’s resources. (11)In this section “apprenticeship framework” has the meaning given by section 12. (12)The Secretary of State may by order amend this section for the purpose of changing the descriptions of persons to whom the apprenticeship offer applies. 83BLimit on scope of the apprenticeship offer (1)The Chief Executive is not required by the apprenticeship offer to secure the provision of facilities for apprenticeship training at a particular level for a person who— (a)has already completed an English apprenticeship in relation to an apprenticeship framework at that level, or (b)holds an apprenticeship certificate at that level. (2)For the purposes of this section apprenticeship training is at a particular level if it might reasonably be expected to lead to the issue of an apprenticeship certificate at that level. (3)The following provisions of Chapter 1 of Part 1 apply for the purposes of this section— section 1 (meaning of “completing an English apprenticeship”); section 12 (meaning of apprenticeship framework and level of an apprenticeship framework). (4)In this section “apprenticeship certificate” means an apprenticeship certificate issued under section 3 or 4. (5)A reference in this section to an apprenticeship certificate at any level includes a reference to a certificate or other evidence (including a certificate awarded or evidence provided by a person outside England) which appears to the Chief Executive to be evidence of experience and attainment at a comparable or higher level.” (3)Schedule 18 (consequential amendments) has effect. 70Securing the provision of apprenticeship training (1)Part 4 of ASCLA 2009 (the Chief Executive of Skills Funding) is amended as follows. (2)In section 85 (encouragement of training provision etc for persons within section 83)— (a)for subsection (1)(a) substitute— “(a)make reasonable efforts to secure that employers participate in the provision of apprenticeship training for all persons who are within section 83(1)(a) or (b) or section 83A(4), (5) or (6);”; (b)in subsection (1)(b), for “training within the Chief Executive’s remit” substitute “apprenticeship training”; (c)in subsection (2), after “provision of” insert “apprenticeship”; (d)in the heading, for “Encouragement of training provision etc for persons within section 83” substitute “Provision of apprenticeship training etc for persons within section 83 or 83A”. (3)In section 118 (guidance by Secretary of State), after subsection (1) insert— “(1A)Guidance under this section must include guidance about the performance by the Chief Executive of the duty imposed by section 85(1)(a).” 71Apprenticeship certificates (1)ASCLA 2009 is amended as follows. (2)In section 5 (issue of certificates by the English certifying authority: supplementary), in subsection (3), for the words from “the English certifying authority” to the end substitute “a person supplying a copy of an apprenticeship certificate to charge a fee for doing so.” (3)For section 6 (apprenticeship certificates: the English certifying authority) substitute— “6The English certifying authority (1)In this Chapter, the “English certifying authority”, in relation to an apprenticeship certificate of any description, means— (a)the person (if any) designated by the Secretary of State under this section to issue apprenticeship certificates of that description; (b)if there is no-one within paragraph (a), the person (if any) designated by the Secretary of State under this section to issue apprenticeship certificates generally; (c)if there is no-one within paragraph (a) or (b), the Secretary of State. (2)The power conferred by subsection (1)(a) must be exercised so as to secure that, at any time, only one person is designated to issue apprenticeship certificates relating to a particular apprenticeship sector. (3)A person designated under this section to issue apprenticeship certificates must, in exercising functions under this Chapter— (a)comply with directions given by the Secretary of State, and (b)have regard to guidance given by the Secretary of State. (4)A designation under this section may be amended or revoked by the Secretary of State.” (4)In section 39(1) (interpretation of Chapter 1 of Part 1) for the definition of “English certifying authority” substitute— ““English certifying authority”, in relation to an apprenticeship certificate of any description, has the meaning given by section 6(1);”. The Chief Executive of Skills Funding 72Consultation by Chief Executive of Skills Funding In Part 4 of ASCLA 2009 (the Chief Executive of Skills Funding) after section 118 insert— “118ADirections: consultation (1)The Secretary of State may direct the Chief Executive to carry out consultation in connection with matters related to the performance of any of the functions of the office. (2)A direction under this section may (in particular) specify— (a)the persons, or descriptions of persons, to be consulted; (b)the way in which the consultation is to be carried out.” 73Functions of the Chief Executive of Skills Funding (1)Part 4 of ASCLA 2009 (the Chief Executive of Skills Funding) is amended as follows. (2)In section 88 (learning aims for persons aged 19 or over: payment of tuition fees)— (a)in subsection (1), for “paragraph 1” substitute “paragraph 1(a) or (b)”; (b)after subsection (2), insert— “(2A)Functions under this Part must be exercised by the Chief Executive so as to secure that a course of study for a qualification to which paragraph 1(c) of Schedule 5 applies is free to a person falling within subsection (4) if it is provided for the person by virtue of facilities whose provision is secured under section 87.”; (c)in subsection (4)(a), for “25” substitute “24”. (3)Sections 112 to 114 (Secretary of State’s power to specify bodies to formulate strategy for the Chief Executive) are repealed. Raising the participation age: commencement 74Duty to participate in education or training: commencement In section 173 of ESA 2008 (commencement), for subsections (9) and (10) substitute— “(9)An order under subsection (4) may provide for the following provisions to come into force with the substitution of “the first anniversary of the date on which the person ceased to be of compulsory school age” for “the age of 18”— (a)section 1(b) (persons to whom Part 1 applies); (b)section 29(1)(b) (employer to enable participation in education or training: extension for persons reaching 18). (10)The Secretary of State must— (a)exercise the powers conferred by subsections (4) and (9) so as to secure that sections 1 to 10 are in force with the substitution in section 1(b) mentioned in subsection (9) no later than the day after the day which is the school leaving date for 2013, and (b)exercise the power conferred by subsection (4) so as to secure that sections 1 to 10 are in force without that substitution no later than the day after the day which is the school leaving date for 2015,subject, in each case, to any provision made by virtue of subsection (8).” Part 8 Direct payments 75Direct payments: persons with special educational needs or subject to learning difficulty assessment (1)In Chapter 2 of Part 9 of EA 1996 (ancillary functions of local authorities) after section 532 insert— “Direct payments 532APersons with special educational needs or subject to learning difficulty assessment (1)A local authority in England may make a payment (a “direct payment”) for the purpose of securing the provision of any goods and services mentioned in subsection (2) to a person (“the beneficiary”)— (a)for whom the authority maintain a statement of special educational needs under section 324, or (b)who is subject to learning difficulty assessment by the authority.This power is subject to subsection (3). (2)The goods and services referred to in subsection (1) are— (a)where the beneficiary is within subsection (1)(a), special educational provision specified in the statement of special educational needs; (b)where the beneficiary is within subsection (1)(b) and the authority have arranged for an assessment to be conducted under section 139A of the Learning and Skills Act 2000, provision identified in the assessment as required to meet the beneficiary’s educational and training needs; (c)transport or anything else that may be the subject of arrangements under section 508B(1), 508F(1) or 509AA(7)(b) that apply in relation to the beneficiary. (3)A direct payment may be made only in accordance with a pilot scheme made under section 532B. 532BPilot schemes (1)The Secretary of State may by order make pilot schemes in accordance with which direct payments may be made under section 532A. (2)Subject to the following provisions of this section, a pilot scheme may include such provision as the Secretary of State thinks appropriate. (3)A pilot scheme must include provision about— (a)circumstances in which, and the descriptions of goods and services in respect of which, direct payments may (or may not) be made; (b)descriptions of persons to or in respect of whom direct payments may (or may not) be made; (c)conditions with which a local authority must comply before, after or at the time of making a direct payment; (d)conditions with which a person to or in respect of whom a direct payment is or may be made may be required by a local authority to comply before, after or at the time the payment is made; (e)the principles by reference to which the amount of a direct payment is to be calculated; (f)circumstances in which a local authority may or must stop making direct payments; (g)circumstances in which a local authority may or must require all or part of a direct payment to be repaid, by the person to whom the payment is made or otherwise; (h)the monitoring of the making of direct payments, of their use by the persons to whom they are made or of the goods and services they are used to secure; (i)the arrangements to be made by a local authority for providing persons to or in respect of whom direct payments are made with information, advice or support in connection with direct payments; (j)treating such support to any extent as goods or services in respect of which direct payments may be made. (4)The conditions referred to in subsection (3)(c)— (a)must include a requirement to obtain the written consent of the person to whom a direct payment is to be made before making the payment; (b)may include a requirement to obtain the written consent of one or more other persons before making a direct payment. (5)The circumstances referred to in subsection (3)(f) in which a local authority must stop making direct payments must include where the consent required by virtue of subsection (4)(a), or any consent required by virtue of subsection (4)(b), is withdrawn. (6)A pilot scheme must include provision for a sum required to be repaid to a local authority by virtue of the scheme to be recoverable as a debt due to the authority. (7)A pilot scheme may provide for paid-for goods and services to be treated as goods and services provided or arranged by a local authority in pursuance of a statutory duty specified in the scheme. (8)A pilot scheme may provide for paid-for goods and services to be treated in that way— (a)to the extent set out in the scheme, and (b)subject to any conditions set out in the scheme. (9)The only statutory duties that may be specified are— (a)section 324(5)(a)(i) (duty to arrange special educational provision specified in statement of special educational needs); (b)section 508B(1) (duty to make travel arrangements for eligible children); (c)section 508F(1) (duty to make arrangements for provision of transport etc for adult learners); (d)section 509AA(7)(b) (duty to make, and secure that effect is given to, arrangements for provision of transport etc for persons of sixth form age). (10)“Paid-for goods and services” are goods and services acquired by means of a direct payment. 532CPilot schemes: local authorities and duration (1)An order under section 532B(1) making a pilot scheme must specify— (a)the local authorities in respect of which the scheme operates, and (b)the period for which the scheme has effect. (2)The period specified under subsection (1)(b) must not exceed two years, subject to subsection (3). (3)An order under section 532B(1) may extend the period for which a pilot scheme has effect, subject to subsection (4). (4)The period for which a pilot scheme has effect may not be extended so as to end after the end of the relevant four year period. (5)“The relevant four year period” is the period of four years beginning with the day on which the Education Act 2011 is passed.” (2)In section 568 of EA 1996 (orders)— (a)in subsection (3), after “other than” insert “an order to which subsection (3A) applies or”; (b)after subsection (3) insert— “(3A)A statutory instrument which contains (alone or with other provision) an order under section 532B(1) (direct payments: pilot schemes) may not be made unless a draft of the instrument has been laid before, and approved by a resolution of, each House of Parliament.” (3)The provisions inserted into EA 1996 by subsections (1) and (2) are repealed at the end of four years beginning with the day on which this Act is passed. Part 9 Student finance 76Student loans: interest rates (1)In section 22 of THEA 1998 (financial support for students), in subsection (4) (interest rates on loans), for paragraph (a) (but not the “and” after it) substitute— “(a)the rates prescribed by regulations made in pursuance of subsection (3)(a) must be— (i)lower than those prevailing on the market, or (ii)no higher than those prevailing on the market, where the other terms on which such loans are provided are more favourable to borrowers than those prevailing on the market;”. (2)In consequence of subsection (1)— (a)in section 22 of THEA 1998, omit subsections (8) and (9); (b)in section 2 of the Sale of Student Loans Act 2008 (sale of student loans: supplemental), in subsection (5), omit paragraph (d) (but not the “and” after it). (3)This section applies in relation to a student who begins a course on or after 1 September 2012, except in such circumstances as may be prescribed. (4)In subsection (3) “prescribed”— (a)in relation to England, means prescribed by regulations made by the Secretary of State; (b)in relation to Wales, means prescribed by regulations made by the Welsh Ministers. 77Limit on student fees: part-time courses (1)In section 41(1) of HEA 2004 (interpretation of Part 3: student fees and fair access), in the definition of “course”, omit “part-time or”. (2)This section applies in relation to a part-time course that a student begins on or after 1 September 2012, except in such circumstances as may be prescribed. (3)In subsection (2) “prescribed”— (a)in relation to England, means prescribed by regulations made by the Secretary of State; (b)in relation to Wales, means prescribed by regulations made by the Welsh Ministers. Part 10 General 78Orders and regulations (1)A power to make an order or regulations under this Act is exercisable by statutory instrument. (2)A power to make an order or regulations under this Act (except a power conferred by section 82) includes power— (a)to make different provision for different purposes (including different areas); (b)to make provision generally or in relation to specific cases; (c)to make incidental, consequential, supplementary, transitional, transitory or saving provision. (3)Subject to subsection (4), a statutory instrument containing an order or regulations made by the Secretary of State under this Act (other than an order under section 82) is subject to annulment in pursuance of a resolution of either House of Parliament. (4)A statutory instrument which contains (alone or with other provision) an order under section 54(2) which amends or repeals any provision of an Act may not be made unless a draft of the instrument has been laid before, and approved by a resolution of, each House of Parliament. (5)A statutory instrument containing an order or regulations made by the Welsh Ministers under this Act is subject to annulment in pursuance of a resolution of the National Assembly for Wales. 79Interpretation of Act In this Act— “FHEA 1992” means the Further and Higher Education Act 1992; “EA 1994” means the Education Act 1994; “EA 1996” means the Education Act 1996; “EA 1997” means the Education Act 1997; “THEA 1998” means the Teaching and Higher Education Act 1998; “SSFA 1998” means the School Standards and Framework Act 1998; “LSA 2000” means the Learning and Skills Act 2000; “EA 2002” means the Education Act 2002; “HEA 2004” means the Higher Education Act 2004; “EA 2005” means the Education Act 2005; “EIA 2006” means the Education and Inspections Act 2006; “ESA 2008” means the Education and Skills Act 2008; “ASCLA 2009” means the Apprenticeships, Skills, Children and Learning Act 2009; “CSFA 2010” means the Children, Schools and Families Act 2010; “AA 2010” means the Academies Act 2010. 80Financial provision There is to be paid out of money provided by Parliament any increase attributable to this Act in the sums payable under any other Act out of money so provided. 81Extent (1)This Act extends to England and Wales only, subject to subsections (2) and (3). (2)This Part extends to the whole of the United Kingdom. (3)An amendment or repeal made by this Act has the same extent as the provision to which it relates. 82Commencement (1)The following provisions come into force on the day on which this Act is passed— (a)section 33; (b)section 40(1) to (3) and (5) to (9); (c)section 41; (d)section 42(1) to (7) and (9) to (11); (e)section 58; (f)section 75; (g)sections 76 and 77; (h)this Part. (2)The following provisions come into force at the end of two months beginning with the day on which this Act is passed— (a)section 6; (b)sections 30 and 31; (c)section 47; (d)section 48; (e)section 61. (3)The other provisions of this Act come into force on such day as the Secretary of State may by order appoint. (4)The Secretary of State must exercise the power conferred by subsection (3) so as to secure that, subject to any provision made by virtue of subsection (7), sections 69 and 70 and Schedule 18 are in force no later than the day after the day which is the school leaving date for 2013. (5)Before making an order bringing section 13 into force, the Secretary of State must consult the Welsh Ministers. (6)Before making an order bringing sections 14 to 17 into force, the Secretary of State must obtain the consent of the Welsh Ministers. (7)An order under this section may— (a)appoint different days for different purposes (including different areas); (b)contain transitional, transitory or saving provision in connection with the coming into force of this Act. 83Short title (1)This Act may be cited as the Education Act 2011. (2)This Act is to be included in the list of Education Acts set out in section 578 of EA 1996. ### PART 1 Local Government CHAPTER 1 General powers of authorities 1Local authority’s general power of competence (1)A local authority has power to do anything that individuals generally may do. (2)Subsection (1) applies to things that an individual may do even though they are in nature, extent or otherwise— (a)unlike anything the authority may do apart from subsection (1), or (b)unlike anything that other public bodies may do. (3)In this section “individual” means an individual with full capacity. (4)Where subsection (1) confers power on the authority to do something, it confers power (subject to sections 2 to 4) to do it in any way whatever, including— (a)power to do it anywhere in the United Kingdom or elsewhere, (b)power to do it for a commercial purpose or otherwise for a charge, or without charge, and (c)power to do it for, or otherwise than for, the benefit of the authority, its area or persons resident or present in its area. (5)The generality of the power conferred by subsection (1) (“the general power”) is not limited by the existence of any other power of the authority which (to any extent) overlaps the general power. (6)Any such other power is not limited by the existence of the general power (but see section 5(2)). (7)Schedule 1 (consequential amendments) has effect. 2Boundaries of the general power (1)If exercise of a pre-commencement power of a local authority is subject to restrictions, those restrictions apply also to exercise of the general power so far as it is overlapped by the pre-commencement power. (2)The general power does not enable a local authority to do— (a)anything which the authority is unable to do by virtue of a pre-commencement limitation, or (b)anything which the authority is unable to do by virtue of a post-commencement limitation which is expressed to apply— (i)to the general power, (ii)to all of the authority’s powers, or (iii)to all of the authority’s powers but with exceptions that do not include the general power. (3)The general power does not confer power to— (a)make or alter arrangements of a kind which may be made under Part 6 of the Local Government Act 1972 (arrangements for discharge of authority’s functions by committees, joint committees, officers etc); (b)make or alter arrangements of a kind which are made, or may be made, by or under Part 1A of the Local Government Act 2000 (arrangements for local authority governance in England); (c)make or alter any contracting-out arrangements, or other arrangements within neither of paragraphs (a) and (b), that authorise a person to exercise a function of a local authority. (4)In this section— “post-commencement limitation” means a prohibition, restriction or other limitation expressly imposed by a statutory provision that— (a)is contained in an Act passed after the end of the Session in which this Act is passed, or (b)is contained in an instrument made under an Act and comes into force on or after the commencement of section 1; “pre-commencement limitation” means a prohibition, restriction or other limitation expressly imposed by a statutory provision that— (a)is contained in this Act, or in any other Act passed no later than the end of the Session in which this Act is passed, or (b)is contained in an instrument made under an Act and comes into force before the commencement of section 1; “pre-commencement power” means power conferred by a statutory provision that— (a)is contained in this Act, or in any other Act passed no later than the end of the Session in which this Act is passed, or (b)is contained in an instrument made under an Act and comes into force before the commencement of section 1. 3Limits on charging in exercise of general power (1)Subsection (2) applies where— (a)a local authority provides a service to a person otherwise than for a commercial purpose, and (b)its providing the service to the person is done, or could be done, in exercise of the general power. (2)The general power confers power to charge the person for providing the service to the person only if— (a)the service is not one that a statutory provision requires the authority to provide to the person, (b)the person has agreed to its being provided, and (c)ignoring this section and section 93 of the Local Government Act 2003, the authority does not have power to charge for providing the service. (3)The general power is subject to a duty to secure that, taking one financial year with another, the income from charges allowed by subsection (2) does not exceed the costs of provision. (4)The duty under subsection (3) applies separately in relation to each kind of service. 4Limits on doing things for commercial purpose in exercise of general power (1)The general power confers power on a local authority to do things for a commercial purpose only if they are things which the authority may, in exercise of the general power, do otherwise than for a commercial purpose. (2)Where, in exercise of the general power, a local authority does things for a commercial purpose, the authority must do them through a company. (3)A local authority may not, in exercise of the general power, do things for a commercial purpose in relation to a person if a statutory provision requires the authority to do those things in relation to the person. (4)In this section “company” means— (a)a company within the meaning given by section 1(1) of the Companies Act 2006, or (b)a society registered or deemed to be registered under the Co-operative and Community Benefit Societies and Credit Unions Act 1965 or the Industrial and Provident Societies Act (Northern Ireland) 1969. 5Powers to make supplemental provision (1)If the Secretary of State thinks that a statutory provision (whenever passed or made) prevents or restricts local authorities from exercising the general power, the Secretary of State may by order amend, repeal, revoke or disapply that provision. (2)If the Secretary of State thinks that the general power is overlapped (to any extent) by another power then, for the purpose of removing or reducing that overlap, the Secretary of State may by order amend, repeal, revoke or disapply any statutory provision (whenever passed or made). (3)The Secretary of State may by order make provision preventing local authorities from doing, in exercise of the general power, anything which is specified, or is of a description specified, in the order. (4)The Secretary of State may by order provide for the exercise of the general power by local authorities to be subject to conditions, whether generally or in relation to doing anything specified, or of a description specified, in the order. (5)The power under subsection (1), (2), (3) or (4) may be exercised in relation to— (a)all local authorities, (b)particular local authorities, or (c)particular descriptions of local authority. (6)The power under subsection (1) or (2) to amend or disapply a statutory provision includes power to amend or disapply a statutory provision for a particular period. (7)Before making an order under subsection (1), (2), (3) or (4) the Secretary of State must consult— (a)such local authorities, (b)such representatives of local government, and (c)such other persons (if any),as the Secretary of State considers appropriate. (8)Before making an order under subsection (1) that has effect in relation to Wales, the Secretary of State must consult the Welsh Ministers. 6Limits on power under section 5(1) (1)The Secretary of State may not make provision under section 5(1) unless the Secretary of State considers that the conditions in subsection (2), where relevant, are satisfied in relation to that provision. (2)Those conditions are that— (a)the effect of the provision is proportionate to the policy objective intended to be secured by the provision; (b)the provision, taken as a whole, strikes a fair balance between the public interest and the interests of any person adversely affected by it; (c)the provision does not remove any necessary protection; (d)the provision does not prevent any person from continuing to exercise any right or freedom which that person might reasonably expect to continue to exercise; (e)the provision is not of constitutional significance. (3)An order under section 5(1) may not make provision for the delegation or transfer of any function of legislating. (4)For the purposes of subsection (3) a “function of legislating” is a function of legislating by order, rules, regulations or other subordinate instrument. (5)An order under section 5(1) may not make provision to abolish or vary any tax. 7Procedure for orders under section 5 (1)If, as a result of any consultation required by section 5(7) and (8) with respect to a proposed order under section 5(1), it appears to the Secretary of State that it is appropriate to change the whole or any part of the Secretary of State’s proposals, the Secretary of State must undertake such further consultation with respect to the changes as the Secretary of State considers appropriate. (2)If, after the conclusion of the consultation required by section 5(7) and (8) and subsection (1), the Secretary of State considers it appropriate to proceed with the making of an order under section 5(1), the Secretary of State must lay before Parliament— (a)a draft of the order, and (b)an explanatory document explaining the proposals and giving details of— (i)the Secretary of State’s reasons for considering that the conditions in section 6(2), where relevant, are satisfied in relation to the proposals, (ii)any consultation undertaken under section 5(7) and (8) and subsection (1), (iii)any representations received as a result of the consultation, and (iv)the changes (if any) made as a result of those representations. (3)Sections 15 to 19 of the Legislative and Regulatory Reform Act 2006 (choosing between negative, affirmative and super-affirmative parliamentary procedure) are to apply in relation to an explanatory document and draft order laid under subsection (2) but as if— (a)section 18(11) of that Act were omitted, (b)references to section 14 of that Act were references to subsection (2), and (c)references to the Minister were references to the Secretary of State. (4)Provision under section 5(2) may be included in a draft order laid under subsection (2) and, if it is, the explanatory document laid with the draft order must also explain the proposals under section 5(2) and give details of any consultation undertaken under section 5(7) with respect to those proposals. (5)Section 5(7) does not apply to an order under section 5(3) or (4) which is made only for the purpose of amending an earlier such order— (a)so as to extend the earlier order, or any provision of the earlier order, to a particular authority or to authorities of a particular description, or (b)so that the earlier order, or any provision of the earlier order, ceases to apply to a particular authority or to authorities of a particular description. 8Interpretation of Chapter (1)In this Chapter— “the general power” means the power conferred by section 1(1); “local authority” means— (a)a county council in England, (b)a district council, (c)a London borough council, (d)the Common Council of the City of London in its capacity as a local authority, (e)the Council of the Isles of Scilly, or (f)an eligible parish council; “statutory provision” means a provision of an Act or of an instrument made under an Act. (2)A parish council is “eligible” for the purposes of this Chapter if the council meets the conditions prescribed by the Secretary of State by order for the purposes of this section. CHAPTER 2 Fire and rescue authorities 9General powers of certain fire and rescue authorities (1)In Part 1 of the Fire and Rescue Services Act 2004 (fire and rescue authorities) after section 5 insert— “5APowers of certain fire and rescue authorities (1)A relevant fire and rescue authority may do— (a)anything it considers appropriate for the purposes of the carrying-out of any of its functions (its “functional purposes”), (b)anything it considers appropriate for purposes incidental to its functional purposes, (c)anything it considers appropriate for purposes indirectly incidental to its functional purposes through any number of removes, (d)anything it considers to be connected with— (i)any of its functions, or (ii)anything it may do under paragraph (a), (b) or (c), and (e)for a commercial purpose anything which it may do under any of paragraphs (a) to (d) otherwise than for a commercial purpose. (2)A relevant fire and rescue authority’s power under subsection (1) is in addition to, and is not limited by, the other powers of the authority. (3)In this section “relevant fire and rescue authority” means a fire and rescue authority that is— (a)a metropolitan county fire and rescue authority, (b)the London Fire and Emergency Planning Authority, (c)constituted by a scheme under section 2, or (d)constituted by a scheme to which section 4 applies. 5BBoundaries of power under section 5A (1)Section 5A(1) does not enable a relevant fire and rescue authority to do— (a)anything which the authority is unable to do by virtue of a pre-commencement limitation, or (b)anything which the authority is unable to do by virtue of a post-commencement limitation which is expressed to apply— (i)to its power under section 5A(1), (ii)to all of the authority’s powers, or (iii)to all of the authority’s powers but with exceptions that do not include its power under section 5A(1). (2)If exercise of a pre-commencement power of a relevant fire and rescue authority is subject to restrictions, those restrictions apply also to exercise of the power conferred on the authority by section 5A(1) so far as it is overlapped by the pre-commencement power. (3)Where under section 5A(1) a relevant fire and rescue authority does things for a commercial purpose, it must do them through— (a)a company within the meaning given by section 1(1) of the Companies Act 2006, or (b)a society registered or deemed to be registered under the Co-operative and Community Benefit Societies and Credit Unions Act 1965 or the Industrial and Provident Societies Act (Northern Ireland) 1969. (4)Section 5A(1) does not authorise a relevant fire and rescue authority to do things for a commercial purpose in relation to a person if a statutory provision requires the authority to do those things in relation to the person. (5)Section 5A(1) does not authorise a relevant fire and rescue authority to borrow money. (6)Section 5A(1)(a) to (d) do not authorise a relevant fire and rescue authority to charge a person for any action taken by the authority (but see section 18A). (7)Section 18B(1) to (8) apply in relation to charging for things done for a commercial purpose in exercise of power conferred by section 5A(1)(e) as they apply in relation to charging under section 18A(1). (8)In this section— “Act” (except in a reference to the Localism Act 2011) includes an Act, or Measure, of the National Assembly for Wales; “passed” in relation to an Act, or Measure, of the National Assembly for Wales means enacted; “post-commencement limitation” means a prohibition, restriction or other limitation imposed by a statutory provision that— (a)is contained in an Act passed after the end of the Session in which the Localism Act 2011 is passed, or (b)is contained in an instrument made under an Act and comes into force on or after the commencement of section 9(1) of that Act; “pre-commencement limitation” means a prohibition, restriction or other limitation imposed by a statutory provision that— (a)is contained in an Act passed no later than the end of the Session in which the Localism Act 2011 is passed, or (b)is contained in an instrument made under an Act and comes into force before the commencement of section 9(1) of that Act; “pre-commencement power” means power conferred by a statutory provision that— (a)is contained in an Act passed no later than the end of the Session in which the Localism Act 2011 is passed, or (b)is contained in an instrument made under an Act and comes into force before the commencement of section 9(1) of that Act; “relevant fire and rescue authority” has meaning given by section 5A(3); “statutory provision” means a provision of an Act or of an instrument made under an Act. 5CPower to make provision supplemental to section 5A (1)If the appropriate national authority thinks that a statutory provision (whenever passed or made) prevents or restricts relevant fire and rescue authorities from exercising power conferred by section 5A(1), the appropriate national authority may by order amend, repeal, revoke or disapply that provision. (2)If the appropriate national authority thinks that the power conferred by section 5A(1) is overlapped (to any extent) by another power then, for the purpose of removing or reducing that overlap, the appropriate national authority may by order amend, repeal, revoke or disapply any statutory provision (whenever passed or made). (3)The appropriate national authority may by order make provision preventing relevant fire and rescue authorities from doing under section 5A(1) anything which is specified, or is of a description specified, in the order. (4)The appropriate national authority may by order provide for the exercise by relevant fire and rescue authorities of power conferred by section 5A(1) to be subject to conditions, whether generally or in relation to doing anything specified, or of a description specified, in the order. (5)The power under subsection (1), (2), (3) or (4) may be exercised in relation to— (a)all relevant fire and rescue authorities, (b)particular relevant fire and rescue authorities, or (c)particular descriptions of relevant fire and rescue authorities. (6)Before making an order under subsection (1), (2), (3) or (4) the appropriate national authority proposing to make the order must consult— (a)such relevant fire and rescue authorities, (b)such representatives of relevant fire and rescue authorities, and (c)such other persons (if any),as that appropriate national authority considers appropriate. (7)Subsection (6) does not apply to an order under subsection (3) or (4) which is made only for the purpose of amending an earlier such order— (a)so as to extend the earlier order, or any provision of the earlier order, to a particular authority or to authorities of a particular description, or (b)so that the earlier order, or any provision of the earlier order, ceases to apply to a particular authority or to authorities of a particular description. (8)The appropriate national authority’s power under subsection (1) or (2) is exercisable by the Welsh Ministers so far as it is power to make provision that— (a)would be within the legislative competence of the National Assembly for Wales if it were contained in an Act of the Assembly, and (b)does not relate to a fire and rescue authority for an area in England. (9)The appropriate national authority’s power under subsection (1) or (2) is exercisable by the Secretary of State so far as it is not exercisable by the Welsh Ministers. (10)The appropriate national authority’s power under subsection (3) or (4) is exercisable— (a)in relation to England by the Secretary of State, and (b)in relation to Wales by the Welsh Ministers. (11)In exercising power under subsection (1) or (2), the Secretary of State may make provision which has effect in relation to Wales only after having consulted the Welsh Ministers. (12)The Welsh Ministers may submit to the Secretary of State proposals that power of the Secretary of State under subsection (1) or (2) in relation to Wales should be exercised in accordance with the proposals. (13)In subsections (1) and (2) “statutory provision” means a provision of— (a)an Act, or (b)an instrument made under an Act,and in this subsection “Act” includes an Act, or Measure, of the National Assembly for Wales. (14)In this section “relevant fire and rescue authority” has the meaning given by section 5A(3). 5DLimits on power under section 5C(1) (1)Provision may not be made under section 5C(1) unless the appropriate national authority making the provision considers that the conditions in subsection (2), where relevant, are satisfied in relation to that provision. (2)Those conditions are that— (a)the effect of the provision is proportionate to the policy objective intended to be secured by the provision; (b)the provision, taken as a whole, strikes a fair balance between the public interest and the interests of any person adversely affected by it; (c)the provision does not remove any necessary protection; (d)the provision does not prevent any person from continuing to exercise any right or freedom which that person might reasonably expect to continue to exercise; (e)the provision is not of constitutional significance. (3)An order under section 5C(1) may not make provision for the delegation or transfer of any function of legislating. (4)For the purposes of subsection (3) a “function of legislating” is a function of legislating by order, rules, regulations or other subordinate instrument. (5)An order under section 5C(1) may not make provision to abolish or vary any tax. 5EProcedure for Secretary of State’s orders under section 5C(1) and (2) (1)If, as a result of any consultation required by section 5C(6) and (11) with respect to a proposed order of the Secretary of State under section 5C(1), it appears to the Secretary of State that it is appropriate to change the whole or any part of the Secretary of State’s proposals, the Secretary of State must undertake such further consultation with respect to the changes as the Secretary of State considers appropriate. (2)If, after the conclusion of the consultation required by section 5C(6) and (11) and subsection (1), the Secretary of State considers it appropriate to proceed with the making of an order under section 5C(1), the Secretary of State must lay before Parliament— (a)a draft of the order, and (b)an explanatory document explaining the proposals and giving details of— (i)the Secretary of State’s reasons for considering that the conditions in section 5D(2), where relevant, are satisfied in relation to the proposals, (ii)any consultation undertaken under section 5C(6) and (11) and subsection (1), (iii)any representations received as a result of the consultation, and (iv)the changes (if any) made as a result of those representations. (3)Sections 15 to 19 of the Legislative and Regulatory Reform Act 2006 (choosing between negative, affirmative and super-affirmative parliamentary procedure) are to apply in relation to an explanatory document and draft order laid under subsection (2) but as if— (a)section 18(11) of that Act were omitted, (b)references to section 14 of that Act were references to subsection (2), and (c)references to the Minister were references to the Secretary of State. (4)Provision proposed to be made by the Secretary of State under section 5C(2) may be included in a draft order laid under subsection (2) and, if it is, the explanatory document laid with the draft order must also explain the proposals under section 5C(2) and give details of any consultation undertaken under section 5C(6) and (11) with respect to those proposals. 5FProcedure for Welsh Ministers’ orders under section 5C(1) and (2) (1)If, as a result of any consultation required by section 5C(6) with respect to a proposed order of the Welsh Ministers under section 5C(1), it appears to the Welsh Ministers that it is appropriate to change the whole or any part of their proposals, they must undertake such further consultation with respect to the changes as they consider appropriate. (2)If, after the conclusion of the consultation required by section 5C(6) and subsection (1), the Welsh Ministers consider it appropriate to proceed with the making of an order under section 5C(1), they must lay before the National Assembly for Wales— (a)a draft of the order, and (b)an explanatory document explaining the proposals and giving details of— (i)the Welsh Ministers’ reasons for considering that the conditions in section 5D(2), where relevant, are satisfied in relation to the proposals, (ii)any consultation undertaken under section 5C(6) and subsection (1), (iii)any representations received as a result of the consultation, and (iv)the changes (if any) made as a result of those representations. (3)Provision proposed to be made by the Welsh Ministers under section 5C(2) may be included in a draft order laid under subsection (2) and, if it is, the explanatory document laid with the draft order must also explain the proposals under section 5C(2) and give details of any consultation undertaken under section 5C(6) with respect to those proposals. 5GDetermining Assembly procedures for drafts laid under section 5F(2) (1)The explanatory document laid with a draft order under section 5F(2) must contain a recommendation by the Welsh Ministers 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 5H), (b)the affirmative resolution procedure (see section 5J), or (c)the super-affirmative resolution procedure (see section 5K). (2)The explanatory document must give reasons for the Welsh Ministers’ recommendation. (3)Where the Welsh Ministers’ recommendation is that the negative resolution procedure should apply, that procedure applies unless, within the 30-day period— (a)the National Assembly for Wales requires the application of the super-affirmative resolution procedure, in which case that procedure applies, or (b)in a case not within paragraph (a), the Assembly requires the application of the affirmative resolution procedure, in which case that procedure applies. (4)Where the Welsh Ministers’ recommendation is that the affirmative resolution procedure should apply, that procedure applies unless, within the 30-day period, the National Assembly for Wales requires the application of the super-affirmative resolution procedure, in which case the super-affirmative resolution procedure applies. (5)Where the Welsh Ministers’ recommendation is that the super-affirmative resolution procedure should apply, that procedure applies. (6)For the purposes of this section, the National Assembly for Wales is to be taken to have required the application of a procedure within the 30-day period if— (a)the Assembly resolves within that period that that procedure is to apply, or (b)in a case not within paragraph (a), a committee of the Assembly charged with reporting on the draft order has recommended within that period that that procedure should apply and the Assembly has not by resolution rejected that recommendation within that period. (7)In this section “the 30-day period” means the 30 days beginning with the day on which the draft order was laid before the National Assembly for Wales under section 5F(2). 5HNegative resolution procedure for draft laid under section 5F(2) (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 5F(2) is as follows. (2)The Welsh Ministers may make an order in the terms of the draft order subject to the following provisions of this section. (3)The Welsh Ministers may not make an order in the terms of the draft order if the National Assembly for Wales so resolves within the 40-day period. (4)A committee of the National Assembly for Wales charged with reporting on the draft order may, at any time after the expiry of the 30-day period and before the expiry of the 40-day period, recommend under this subsection that the Welsh Ministers not make an order in the terms of the draft order. (5)Where a committee of the National Assembly for Wales makes a recommendation under subsection (4) in relation to a draft order, the Welsh Ministers may not make an order in the terms of the draft order unless the recommendation is, in the same Assembly, rejected by resolution of the Assembly. (6)For the purposes of this section an order is made in the terms of a draft order if it contains no material changes to the provisions of the draft order. (7)In this section— “the 30-day period” has the meaning given by section 5G(7), and “the 40-day period” means the 40 days beginning with the day on which the draft order was laid before the National Assembly for Wales under section 5F(2). (8)For the purpose of calculating the 40-day period in a case where a recommendation is made under subsection (4) by a committee of the National Assembly for Wales but the recommendation is rejected by the Assembly under subsection (5), no account is to be taken of any day between the day on which the recommendation was made and the day on which the recommendation was rejected. 5JAffirmative resolution procedure for draft laid under section 5F(2) (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 5F(2) is as follows. (2)If after the expiry of the 40-day period the draft order is approved by a resolution of the National Assembly for Wales, the Welsh Ministers may make an order in the terms of the draft. (3)However, a committee of the National Assembly for Wales charged with reporting on the draft order may, at any time after the expiry of the 30-day period and before the expiry of the 40-day period, recommend under this subsection that no further proceedings be taken in relation to the draft order. (4)Where a committee of the National Assembly for Wales makes a recommendation under subsection (3) in relation to a draft order, no proceedings may be taken in relation to the draft order in the Assembly under subsection (2) unless the recommendation is, in the same Assembly, rejected by resolution of the Assembly. (5)For the purposes of subsection (2) an order is made in the terms of a draft order if the order contains no material changes to the provisions of the draft order. (6)In this section— “the 30-day period” has the meaning given by section 5G(7), and “the 40-day period” has the meaning given by section 5H(7). (7)For the purpose of calculating the 40-day period in a case where a recommendation is made under subsection (3) by a committee of the National Assembly for Wales but the recommendation is rejected by the Assembly under subsection (4), no account is to be taken of any day between the day on which the recommendation was made and the day on which the recommendation was rejected. 5KSuper-affirmative resolution procedure for draft laid under section 5F(2) (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 5F(2) is as follows. (2)The Welsh Ministers must have regard to— (a)any representations, (b)any resolution of the National Assembly for Wales, and (c)any recommendation of a committee of the Assembly charged with reporting on the draft order,made during the 60-day period in relation to the draft order. (3)If, after the expiry of the 60-day period, the Welsh Ministers want to make an order in the terms of the draft order, they must lay before the National Assembly for Wales a statement— (a)stating whether any representations were made under subsection (2)(a), and (b)if any representations were so made, giving details of them. (4)The Welsh Ministers may after the laying of such a statement make an order in the terms of the draft order if it is approved by a resolution of the National Assembly for Wales. (5)However, a committee of the National Assembly for Wales charged with reporting on the draft order may, at any time after the laying of a statement under subsection (3) and before the draft order is approved by the Assembly under subsection (4), recommend under this subsection that no further proceedings be taken in relation to the draft order. (6)Where a committee of the National Assembly for Wales makes a recommendation under subsection (5) in relation to a draft order, no proceedings may be taken in relation to the draft order in the Assembly under subsection (4) unless the recommendation is, in the same Assembly, rejected by resolution of the Assembly. (7)If, after the expiry of the 60-day period, the Welsh Ministers wish to make an order consisting of a version of the draft order with material changes, they must lay before the National Assembly for Wales— (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. (8)The Welsh Ministers may after laying a revised draft order and statement under subsection (7) make an order in the terms of the revised draft order if it is approved by a resolution of the National Assembly for Wales. (9)However, a committee of the National Assembly for Wales charged with reporting on the revised draft order may, at any time after the revised draft order is laid under subsection (7) and before it is approved by the Assembly under subsection (8), recommend under this subsection that no further proceedings be taken in relation to the revised draft order. (10)Where a committee of the National Assembly for Wales makes a recommendation under subsection (9) in relation to a revised draft order, no proceedings may be taken in relation to the revised draft order in the Assembly under subsection (8) unless the recommendation is, in the same Assembly, rejected by resolution of the Assembly. (11)For the purposes of subsections (4) and (8) an order is made in the terms of a draft order if it contains no material changes to the provisions of the draft order. (12)In this section “the 60-day period” means the 60 days beginning with the day on which the draft order was laid before the National Assembly for Wales under section 5F(2). 5LCalculation of time periods In calculating any period of days for the purposes of sections 5G to 5K, no account is to be taken of any time during which the National Assembly for Wales is dissolved or during which the Assembly is in recess for more than four days.” (2)Omit section 5 of the Fire and Rescue Services Act 2004 (power of combined fire and rescue authorities corresponding to the power under section 111 of the Local Government Act 1972). (3)In section 60(1) of the Fire and Rescue Services Act 2004 (meaning of “subordinate legislation”) for “by the Secretary of State under this Act” substitute “under this Act by the Secretary of State or the Welsh Ministers”. (4)In section 60(4) of the Fire and Rescue Services Act 2004 (orders and regulations subject to affirmative procedure) for “subordinate legislation which amends or repeals any Act or provision of an Act may” substitute “— (a)an order made by the Secretary of State under section 5C(3), other than one that is made only for the purpose mentioned in section 5C(7)(b), (b)an order made by the Secretary of State under section 5C(4), other than one that is made only for that purpose or for imposing conditions on the doing of things for a commercial purpose, (c)an order made by the Secretary of State under section 5C(2) that— (i)amends any Act or provision of an Act, and (ii)is not made in accordance with sections 15 to 19 of the Legislative and Regulatory Reform Act 2006 as applied by section 5E(3), or (d)subordinate legislation made by the Secretary of State, other than an order under section 5C, that amends or repeals any Act or provision of an Act,may”. (5)In section 60(5) of the Fire and Rescue Services Act 2004 (orders and regulations subject to negative procedure) for “legislation, apart from an order under section 30 or 61, is” substitute “legislation made by the Secretary of State, apart from— (1)(a)an order under section 5C(1), (b)an order under section 5C(2) that is made in accordance with sections 15 to 19 of the Legislative and Regulatory Reform Act 2006 as applied by section 5E(3), or (c)an order under section 30 or 61,is”. (6)In section 60 of the Fire and Rescue Services Act 2004 (orders and regulations) after subsection (5) insert— “(6)A statutory instrument containing (alone or with other provisions)— (a)an order made by the Welsh Ministers under section 5C(3), other than one that it is made only for the purpose mentioned in section 5C(7)(b), (b)an order made by the Welsh Ministers under section 5C(4), other than one that is made only for that purpose or for imposing conditions on the doing of things for a commercial purpose, (c)an order made by the Welsh Ministers under section 5C(2) that— (i)amends any Act or provision of an Act or amends any Act, or Measure, of the National Assembly for Wales or provision of such an Act or Measure, and (ii)is not made in accordance with sections 5G to 5L, or (d)subordinate legislation made by the Welsh Ministers, other than an order under section 5C, that amends any Act or provision of an Act,may not be made unless a draft of the instrument has been laid before, and approved by a resolution of, the National Assembly for Wales. (7)A statutory instrument containing any other subordinate legislation made by the Welsh Ministers, apart from— (a)an order under section 5C(1), (b)an order under section 5C(2) that is made in accordance with sections 5G to 5L, or (c)an order under section 30 or 61,is subject to annulment in pursuance of a resolution of the National Assembly for Wales.” (7)In section 62 of the Fire and Rescue Services Act 2004 (application of Act in Wales)— (a)in subsection (1)(b) (references to Secretary of State in sections 60 and 61) for “sections 60 and” substitute “section”, (b)after subsection (1) insert— “(1A)The reference in subsection (1)(a) to Parts 1 to 6 does not include— (a)sections 5A and 5B, (b)sections 5C and 5D, (c)section 5E, and (d)sections 5F to 5L.”, and (c)omit subsection (3) (disapplication of section 60(4) and (5)). (8)In section 146A of the Local Government Act 1972 (application of provisions to certain joint and other authorities)— (a)in subsection (1) after “Subject to subsections (1ZA), (1ZB)” insert “, (1ZC)”, and (b)after subsection (1ZB) insert— “(1ZC)Neither a metropolitan county fire and rescue authority, nor the London Fire and Emergency Planning Authority, is to be treated as a local authority for the purposes of section 111 above (but see section 5A of the Fire and Rescue Services Act 2004).” 10Fire and rescue authorities: charging (1)The Fire and Rescue Services Act 2004 is amended as follows. (2)After section 18 insert— “18ACharging by authorities (1)A fire and rescue authority may charge a person for any action taken by the authority— (a)in the United Kingdom or at sea or under the sea, and (b)otherwise than for a commercial purpose,but this is subject to the provisions of this section and section 18B. (2)Subsection (1) authorises a charge to be imposed on, or recovered from, a person other than the person in respect of whom action is taken by the authority. (3)Before a fire and rescue authority begins to charge under subsection (1) or section 5A(1)(e) for taking action of a particular description, the authority must consult any persons the authority considers appropriate. (4)If a fire and rescue authority decides to charge under subsection (1) for taking action of a particular description— (a)the amount of the charge is to be set by the authority; (b)the authority may charge different amounts in different circumstances (and may charge nothing). (5)In setting the amount of a charge under subsection (1), a fire and rescue authority must secure that, taking one financial year with another, the authority’s income from charges does not exceed the cost to the authority of taking the action for which the charges are imposed. (6)The duty under subsection (5) applies separately in relation to each kind of action. (7)The references in subsection (1) and section 18B(1) to “sea” are not restricted to the territorial sea of the United Kingdom. (8)In subsection (5) “financial year” means 12 months ending with 31 March. 18BLimits on charging under section 18A(1) (1)Section 18A(1) authorises charging for extinguishing fires, or protecting life and property in the event of fires, only in respect of fires which are at sea or under the sea. (2)Section 18A(1) does not authorise charging for emergency medical assistance. (3)Section 18A(1) authorises charging for action taken in response to a report of a fire or explosion only if section 18C applies to the report. (4)Section 18A(1) does not authorise charging for rescuing individuals, or protecting individuals from serious harm, in the event of an emergency. (5)Section 18A(1) does not authorise charging for action taken in response to— (a)emergencies resulting from events of widespread significance, (b)emergencies which have occurred as a direct result of severe weather, or (c)emergencies resulting from road traffic accidents. (6)Subject to subsection (7), section 18A(1) does not authorise charging for action taken under section 6. (7)Subsection (6) does not prevent charging for the giving of advice, other than advice of the kind mentioned in section 6(2)(b), in relation to premises where a trade, business or other undertaking is carried on (whether for profit or not). (8)Section 18A(1) does not authorise charging for action taken by a fire and rescue authority in its capacity as an enforcing authority for the purposes of the Regulatory Reform (Fire Safety) Order 2005 (S.I. 2005/1541). (9)Nothing in subsections (1) to (8)— (a)applies to charges for providing under section 12 the services of any persons or any equipment, (b)affects the operation of section 13(3) or 16(3), or (c)affects any provision for payments to a fire and rescue authority contained in arrangements for co-operation made between that authority and— (i)a public authority that is not a fire and rescue authority, or (ii)any person, other than a public authority, who exercises public functions. (10)The Secretary of State in relation to fire and rescue authorities in England, and the Welsh Ministers in relation to fire and rescue authorities in Wales, may by order disapply subsection 18A(1) in relation to actions of a particular kind. (11)The power under subsection (10) includes power to disapply for a particular period. 18CCases where a charge may be made for responding to report of fire etc (1)This section applies for the purposes of section 18B(3). (2)This section applies to a report of fire, or explosion, at sea or under the sea. (3)This section applies to a report of fire if— (a)the report is of fire at premises that are not domestic premises, (b)the report is false, (c)the report is made as a direct or indirect result of warning equipment having malfunctioned or been misinstalled, and (d)there is a persistent problem with false reports of fire at the premises that are made as a direct or indirect result of warning equipment under common control having malfunctioned or been misinstalled. (4)The references in subsection (2) to “sea” are not restricted to the territorial sea of the United Kingdom. (5)In subsection (3)— “domestic premises” means premises occupied as a private dwelling (including any garden, yard, garage, outhouse or other appurtenance of such premises which is not used in common by the occupants of more than one such dwelling); “warning equipment” means equipment installed for the purpose of— (a)detecting fire, or (b)raising the alarm, or enabling the alarm to be raised, in the event of fire.” (3)Omit section 19 (charging). (4)In section 62 (application of Act in Wales) before subsection (2) insert— “(1B)The reference in subsection (1)(a) to Parts 1 to 6 does not include sections 18A to 18C.” (5)Where immediately before the coming into force of subsections (1) to (3) in relation to England or Wales an order under section 19(1) of the Fire and Rescue Services Act 2004 authorises a fire and rescue authority in England or (as the case may be) Wales to charge for action of a specified description taken by the authority, section 18A(3) of that Act does not apply in relation to action of that description. CHAPTER 3 Other authorities 11Integrated Transport Authorities In Part 5 of the Local Transport Act 2008 (integrated transport authorities etc) after section 102A insert— “CHAPTER 4 General powers 102BPowers of Integrated Transport Authorities (1)An ITA may do— (a)anything the ITA considers appropriate for the purposes of the carrying-out of any of the ITA’s functions (the ITA’s “functional purposes”), (b)anything the ITA considers appropriate for purposes incidental to the ITA’s functional purposes, (c)anything the ITA considers appropriate for purposes indirectly incidental to the ITA’s functional purposes through any number of removes, (d)anything the ITA considers to be connected with— (i)any of the ITA’s functions, or (ii)anything the ITA may do under paragraph (a), (b) or (c), and (e)for a commercial purpose anything which the ITA may do under any of paragraphs (a) to (d) otherwise than for a commercial purpose. (2)Where subsection (1) confers power on an ITA to do something, it confers power (subject to section 102C) to do it anywhere in the United Kingdom or elsewhere. (3)An ITA’s power under subsection (1) is in addition to, and is not limited by, the other powers of the ITA. (4)Subsection (5) applies if there is, in relation to an ITA— (a)a Passenger Transport Executive established under section 9 of the TA 1968 for the integrated transport area of the ITA, or (b)an executive body established by virtue of section 79(1)(a) or 84(2)(d). (5)The ITA may delegate to the Executive or body the ITA’s function of taking action under subsection (1) (but not the function of determining what action to take). 102CBoundaries of power under section 102B (1)Section 102B(1) does not enable an ITA to do— (a)anything which the ITA is unable to do by virtue of a pre-commencement limitation, or (b)anything which the ITA is unable to do by virtue of a post-commencement limitation which is expressed to apply— (i)to the ITA’s power under section 102B(1), (ii)to all of the ITA’s powers, or (iii)to all of the ITA’s powers but with exceptions that do not include the ITA’s power under section 102B(1). (2)If exercise of a pre-commencement power of an ITA is subject to restrictions, those restrictions apply also to exercise of the power conferred on the ITA by section 102B(1) so far as it is overlapped by the pre-commencement power. (3)Section 102B(1) does not authorise an ITA to borrow money. (4)Section 102B(1)(a) to (d) do not authorise an ITA to charge a person for anything done by the ITA otherwise than for a commercial purpose (but see section 93 of the Local Government Act 2003 (power of ITAs and other best value authorities to charge for discretionary services)). (5)Section 102B(1)(e) does not authorise an ITA to do things for a commercial purpose in relation to a person if a statutory provision requires the ITA to do those things in relation to the person. (6)Where under section 102B(1)(e) an ITA does things for a commercial purpose, it must do them through— (a)a company within the meaning given by section 1(1) of the Companies Act 2006, or (b)a society registered or deemed to be registered under the Co-operative and Community Benefit Societies and Credit Unions Act 1965 or the Industrial and Provident Societies Act (Northern Ireland) 1969. (7)In this section— “post-commencement limitation” means a prohibition, restriction or other limitation imposed by a statutory provision that— (a)is contained in an Act passed after the end of the Session in which the Localism Act 2011 is passed, or (b)is contained in an instrument made under an Act and comes into force on or after the commencement of section 11 of that Act; “pre-commencement limitation” means a prohibition, restriction or other limitation imposed by a statutory provision that— (a)is contained in an Act passed no later than the end of the Session in which the Localism Act 2011 is passed, or (b)is contained in an instrument made under an Act and comes into force before the commencement of section 11 of that Act; “pre-commencement power” means power conferred by a statutory provision that— (a)is contained in an Act passed no later than the end of the Session in which the Localism Act 2011 is passed, or (b)is contained in an instrument made under an Act and comes into force before the commencement of section 11 of that Act; “statutory provision” means a provision of an Act or of an instrument made under an Act. 102DPower to make provision supplemental to section 102B (1)The Secretary of State may by order made by statutory instrument make provision preventing ITAs from doing under section 102B(1) anything which is specified, or is of a description specified, in the order. (2)The Secretary of State may by order made by statutory instrument provide for the exercise by ITAs of power conferred by section 102B(1) to be subject to conditions, whether generally or in relation to doing anything specified, or of a description specified, in the order. (3)The power under subsection (1) or (2) may be exercised in relation to— (a)all ITAs, (b)particular ITAs, or (c)particular descriptions of ITAs. (4)Before making an order under subsection (1) or (2) the Secretary of State must consult— (a)such representatives of ITAs, (b)such representatives of local government, and (c)such other persons (if any),as the Secretary of State considers appropriate. (5)Subsection (4) does not apply to an order under subsection (1) or (2) which is made only for the purpose of amending an earlier such order— (a)so as to extend the earlier order, or any provision of the earlier order, to a particular ITA or to ITAs of a particular description, or (b)so that the earlier order, or any provision of the earlier order, ceases to apply to a particular ITA or to ITAs of a particular description. (6)Power to make an order under this section includes— (a)power to make different provision for different cases, circumstances or areas, and (b)power to make incidental, supplementary, consequential, transitional or transitory provision or savings. (7)The Secretary of State may not make an order to which subsection (8) applies unless a draft of the statutory instrument containing the order (whether alone or with other provisions) has been laid before, and approved by a resolution of, each House of Parliament. (8)This subsection applies to— (a)an order under subsection (1), other than one that is made only for the purpose mentioned in subsection (5)(b); (b)an order under subsection (2), other than one that is made only for that purpose or for imposing conditions on the doing of things for a commercial purpose. (9)A statutory instrument that— (a)contains an order made under this section, and (b)is not subject to any requirement that a draft of the instrument be laid before, and approved by a resolution of, each House of Parliament,is subject to annulment in pursuance of a resolution of either House of Parliament.” 12Passenger Transport Executives (1)In Part 2 of the Transport Act 1968 (integrated transport authorities etc) after section 10 insert— “10AFurther powers of Executives (1)The Executive of an integrated transport area in England may do— (a)anything the Executive considers appropriate for the purposes of the carrying-out of any of the Executive’s functions (the Executive’s “functional purposes”), (b)anything the Executive considers appropriate for purposes incidental to the Executive’s functional purposes, (c)anything the Executive considers appropriate for purposes indirectly incidental to the Executive’s functional purposes through any number of removes, (d)anything the Executive considers to be connected with— (i)any of the Executive’s functions, or (ii)anything the Executive may do under paragraph (a), (b) or (c), and (e)for a commercial purpose anything which the Executive may do under any of paragraphs (a) to (d) otherwise than for a commercial purpose. (2)Where subsection (1) confers power on the Executive to do something, it confers power (subject to section 10B) to do it anywhere in the United Kingdom or elsewhere. (3)The Executive’s power under subsection (1) is in addition to, and is not limited by, the other powers of the Executive. 10BBoundaries of power under section 10A (1)Section 10A(1) does not enable the Executive to do— (a)anything which the Executive is unable to do by virtue of a pre-commencement limitation, or (b)anything which the Executive is unable to do by virtue of a post-commencement limitation which is expressed to apply— (i)to the Executive’s power under section 10A(1), (ii)to all of the Executive’s powers, or (iii)to all of the Executive’s powers but with exceptions that do not include the Executive’s power under section 10A(1). (2)If exercise of a pre-commencement power of the Executive is subject to restrictions, those restrictions apply also to exercise of the power conferred on the Executive by section 10A(1) so far as it is overlapped by the pre-commencement power. (3)Section 10A(1) does not authorise the Executive to borrow money. (4)Section 10A(1)(a) to (d) do not authorise the Executive to charge a person for anything done by the Executive otherwise than for a commercial purpose, but this does not limit any power to charge that the Executive has otherwise than under section 10A(1)(a) to (d). (5)Section 10A(1)(e) does not authorise the Executive to do things for a commercial purpose in relation to a person if a statutory provision requires the Executive to do those things in relation to the person. (6)Where under section 10A(1)(e) the Executive does things for a commercial purpose, it must do them through— (a)a company within the meaning given by section 1(1) of the Companies Act 2006, or (b)a society registered or deemed to be registered under the Co-operative and Community Benefit Societies and Credit Unions Act 1965 or the Industrial and Provident Societies Act (Northern Ireland) 1969. (7)In this section— “post-commencement limitation” means a prohibition, restriction or other limitation imposed by a statutory provision that— (a)is contained in an Act passed after the end of the Session in which the Localism Act 2011 is passed, or (b)is contained in an instrument made under an Act and comes into force on or after the commencement of section 12(1) of that Act; “pre-commencement limitation” means a prohibition, restriction or other limitation imposed by a statutory provision that— (a)is contained in an Act passed no later than the end of the Session in which the Localism Act 2011 is passed, or (b)is contained in an instrument made under an Act and comes into force before the commencement of section 12(1) of that Act; “pre-commencement power” means power conferred by a statutory provision that— (a)is contained in an Act passed no later than the end of the Session in which the Localism Act 2011 is passed, or (b)is contained in an instrument made under an Act and comes into force before the commencement of section 12(1) of that Act; “statutory provision” means a provision of an Act or of an instrument made under an Act. 10CPower to make provision supplemental to section 10A (1)The Secretary of State may by order make provision preventing the Executive from doing under section 10A(1) anything which is specified, or is of a description specified, in the order. (2)The Secretary of State may by order provide for the exercise by the Executive of power conferred by section 10A(1) to be subject to conditions, whether generally or in relation to doing anything specified, or of a description specified, in the order. (3)The power under subsection (1) or (2) may be exercised in relation to— (a)all Executives, (b)particular Executives, or (c)particular descriptions of Executives. (4)Before making an order under subsection (1) or (2) the Secretary of State must consult— (a)such representatives of Executives, (b)such representatives of local government, and (c)such other persons (if any),as the Secretary of State considers appropriate. (5)Subsection (4) does not apply to an order under subsection (1) or (2) which is made only for the purpose of amending an earlier such order— (a)so as to extend the earlier order, or any provision of the earlier order, to a particular Executive or to Executives of a particular description, or (b)so that the earlier order, or any provision of the earlier order, ceases to apply to a particular Executive or to Executives of a particular description. (6)Power to make an order under this section includes— (a)power to make different provision for different cases, circumstances or areas, and (b)power to make incidental, supplementary, consequential, transitional or transitory provision or savings. (7)A statutory instrument containing an order to which subsection (8) applies (whether alone or with other provisions) may not be made unless a draft of the instrument has been laid before, and approved by a resolution of, each House of Parliament. (8)This subsection applies to— (a)an order under subsection (1), other than one that is made only for the purpose mentioned in subsection (5)(b); (b)an order under subsection (2), other than one that is made only for that purpose or for imposing conditions on the doing of things for a commercial purpose. (9)A statutory instrument that— (a)contains an order made under this section, and (b)is not subject to any requirement that a draft of the instrument be laid before, and approved by a resolution of, each House of Parliament,is subject to annulment in pursuance of a resolution of either House of Parliament.” (2)In section 10(1) of the Transport Act 1968 (powers of a Passenger Transport Executive)— (a)in paragraph (xxvii) (power to invest sums not immediately needed) for “any sums which are not immediately required by them for the purposes of their business” substitute “their money”, and (b)in paragraph (xxviii) (power to turn unneeded resources to account) omit “so far as not required for the purposes of their business”. (3)In section 22 of the Transport Act 1968 (orders under Part 2 of that Act to be subject to annulment) after subsection (2) insert— “(2A)Subsections (1) and (2) of this section do not apply in relation to orders under section 10C of this Act (but see subsections (7) to (9) of that section).” (4)In section 93(9) of the Local Government Act 2003 (authorities with power under section 93 to charge for discretionary services) before paragraph (b) insert— “(ab)the Passenger Transport Executive of an integrated transport area in England;”. (5)In section 95(7) of the Local Government Act 2003 (power to authorise certain authorities to do for commercial purposes things that they can do for non-commercial purposes) in the definition of “relevant authority” before paragraph (b) insert— “(ab)the Passenger Transport Executive of an integrated transport area in England;”. 13Economic prosperity boards and combined authorities (1)In Part 6 of the Local Democracy, Economic Development and Construction Act 2009 (economic prosperity boards and combined authorities) after section 113 insert— “General powers of EPBs and combined authorities 113AGeneral power of EPB or combined authority (1)An EPB or combined authority may do— (a)anything it considers appropriate for the purposes of the carrying-out of any of its functions (its “functional purposes”), (b)anything it considers appropriate for purposes incidental to its functional purposes, (c)anything it considers appropriate for purposes indirectly incidental to its functional purposes through any number of removes, (d)anything it considers to be connected with— (i)any of its functions, or (ii)anything it may do under paragraph (a), (b) or (c), and (e)for a commercial purpose anything which it may do under any of paragraphs (a) to (d) otherwise than for a commercial purpose. (2)Where subsection (1) confers power on an EPB or combined authority to do something, it confers power (subject to section 113B) to do it anywhere in the United Kingdom or elsewhere. (3)Power conferred on an EPB or combined authority by subsection (1) is in addition to, and is not limited by, its other powers. 113BBoundaries of power under section 113A (1)Section 113A(1) does not enable an EPB or combined authority to do— (a)anything which it is unable to do by virtue of a pre-commencement limitation, or (b)anything which it is unable to do by virtue of a post-commencement limitation which is expressed to apply— (i)to its power under section 113A(1), (ii)to all of its powers, or (iii)to all of its powers but with exceptions that do not include its power under section 113A(1). (2)If exercise of a pre-commencement power of an EPB or combined authority is subject to restrictions, those restrictions apply also to exercise of the power conferred on it by section 113A(1) so far as that power is overlapped by the pre-commencement power. (3)Section 113A(1) does not authorise an EPB or combined authority to borrow money. (4)Section 113A(1)(a) to (d) do not authorise an EPB or combined authority to charge a person for anything done by it otherwise than for a commercial purpose (but see section 93 of the Local Government Act 2003 (power of EPBs, combined authorities and other best value authorities to charge for discretionary services)). (5)Section 113A(1)(e) does not authorise an EPB or combined authority to do things for a commercial purpose in relation to a person if a statutory provision requires it to do those things in relation to the person. (6)Where under section 113A(1)(e) an EPB or combined authority does things for a commercial purpose, it must do them through— (a)a company within the meaning given by section 1(1) of the Companies Act 2006, or (b)a society registered or deemed to be registered under the Co-operative and Community Benefit Societies and Credit Unions Act 1965 or the Industrial and Provident Societies Act (Northern Ireland) 1969. (7)In this section— “post-commencement limitation” means a prohibition, restriction or other limitation imposed by a statutory provision that— (a)is contained in an Act passed after the end of the Session in which the Localism Act 2011 is passed, or (b)is contained in an instrument made under an Act and comes into force on or after the commencement of section 13(1) of that Act; “pre-commencement limitation” means a prohibition, restriction or other limitation imposed by a statutory provision that— (a)is contained in an Act passed no later than the end of the Session in which the Localism Act 2011 is passed, or (b)is contained in an instrument made under an Act and comes into force before the commencement of section 13(1) of that Act; “pre-commencement power” means power conferred by a statutory provision that— (a)is contained in an Act passed no later than the end of the Session in which the Localism Act 2011 is passed, or (b)is contained in an instrument made under an Act and comes into force before the commencement of section 13(1) of that Act; “statutory provision” means a provision of an Act or of an instrument made under an Act. 113CPower to make provision supplemental to section 113A (1)The Secretary of State may by order make provision preventing EPBs or combined authorities from doing under section 113A(1) anything which is specified, or is of a description specified, in the order. (2)The Secretary of State may by order provide for the exercise by EPBs or combined authorities of power conferred by section 113A(1) to be subject to conditions, whether generally or in relation to doing anything specified, or of a description specified, in the order. (3)The power under subsection (1) or (2) may be exercised in relation to— (a)all EPBs, (b)all combined authorities, (c)particular EPBs, (d)particular combined authorities, (e)particular descriptions of EPBs, or (f)particular descriptions of combined authorities. (4)Before making an order under subsection (1) or (2) the Secretary of State must consult— (a)such representatives of EPBs or combined authorities, (b)such representatives of local government, and (c)such other persons (if any),as the Secretary of State considers appropriate. (5)Subsection (4) does not apply to an order under subsection (1) or (2) which is made only for the purpose of amending an earlier such order— (a)so as to extend the earlier order, or any provision of the earlier order, to a particular EPB or combined authority or to EPBs or combined authorities of a particular description, or (b)so that the earlier order, or any provision of the earlier order, ceases to apply to a particular EPB or combined authority or to EPBs or combined authorities of a particular description. (6)Power to make an order under this section includes— (a)power to make different provision for different cases, circumstances or areas, and (b)power to make incidental, supplementary, consequential, transitional or transitory provision or savings.” (2)For section 117(2) and (3) of the Local Democracy, Economic Development and Construction Act 2009 (affirmative procedure applies to orders under Part 6 other than certain orders under section 116) substitute— “(2)An order to which subsection (2A) applies may not be made unless a draft of the statutory instrument containing the order (whether alone or with other provisions) has been laid before, and approved by a resolution of, each House of Parliament. (2A)This subsection applies to an order under this Part other than— (a)an order under section 113C(1) that is made only for the purpose mentioned in section 113C(5)(b), (b)an order under section 113C(2) that is made only for that purpose or for imposing conditions on the doing of things for a commercial purpose, or (c)an order under section 116 that amends or revokes provision contained in an instrument subject to annulment by resolution of either House of Parliament. (3)A statutory instrument that— (a)contains an order under this Part, and (b)is not subject to any requirement that a draft of the instrument be laid before, and approved by a resolution of, each House of Parliament,is subject to annulment by resolution of either House of Parliament.” 14Further amendments (1)In section 146A of the Local Government Act 1972 (application of provisions to certain joint and other authorities)— (a)in subsection (1) for “or (1A)” substitute “, (1ZD) or (1ZE)”, and (b)after subsection (1ZC) (which is inserted by section 9 of this Act) insert— “(1ZD)An Integrated Transport Authority is not to be treated as a local authority for the purposes of section 111 above (but see section 102B of the Local Transport Act 2008). (1ZE)Neither an economic prosperity board, nor a combined authority, is to be treated as a local authority for the purposes of section 111 above (but see section 113A of the Local Democracy, Economic Development and Construction Act 2009).” (2)In section 93(7) of the Local Government Act 2003 (provisions that do not count as prohibitions on charging for the purposes of section 93(2)(b)) after paragraph (c) insert— “(d)section 100(2) of the Local Transport Act 2008 (well-being powers of Integrated Transport Authorities and combined authorities), (e)section 102C(4) of that Act (Integrated Transport Authorities), (f)section 10B(4) of the Transport Act 1968 (Passenger Transport Executives), and (g)section 113B(4) of the Local Democracy, Economic Development and Construction Act 2009 (economic prosperity boards and combined authorities).” CHAPTER 4 Transfer and delegation of functions to certain authorities 15Power to transfer local public functions to permitted authorities (1)The Secretary of State may by order make provision— (a)transferring a local public function from the public authority whose function it is to a permitted authority; (b)about the discharge of local public functions that are transferred to permitted authorities under this section (including provision enabling the discharge of those functions to be delegated). (2)An order under this section may modify any enactment (whenever passed or made) for the purpose of making the provision mentioned in subsection (1). (3)The power to modify an enactment in subsection (2) is a power— (a)to apply that enactment with or without modifications, (b)to extend, disapply or amend that enactment, or (c)to repeal or revoke that enactment with or without savings. (4)An order under this section may disapply, or modify the application of, Chapter 4 of Part 1A of the Local Government Act 2000 (changing local authority governance arrangements) in relation to a county council or district council to which the order transfers a local public function. (5)The Secretary of State may not make an order under this section unless the Secretary of State considers that it is likely that making the order would— (a)promote economic development or wealth creation, or (b)increase local accountability in relation to each local public function transferred by the order. (6)For the purposes of subsection (5)(b), in relation to a local public function, local accountability is increased if the exercise of the function becomes more accountable to persons living or working in the area of the permitted authority to which it is transferred. (7)The Secretary of State may not make an order under this section unless the Secretary of State considers that the local public function transferred by the order can appropriately be exercised by the permitted authority to which it is transferred. (8)The Secretary of State may not make an order under this section transferring a local public function to a permitted authority unless the authority has consented to the transfer. (9)Before making an order under this section, the Secretary of State must consult such persons as the Secretary of State considers appropriate. 16Delegation of functions by Ministers to permitted authorities (1)A Minister of the Crown may, to such extent and subject to such conditions as that Minister thinks fit, delegate to a permitted authority any of the Minister’s eligible functions. (2)A function is eligible for the purposes of subsection (1) if— (a)it does not consist of a power to make regulations or other instruments of a legislative character or a power to fix fees or charges, and (b)the Minister of the Crown considers that it can appropriately be exercised by the permitted authority. (3)No delegation under subsection (1), and no variation of a delegation under that subsection, may be made without the agreement of the permitted authority. (4)Before delegating a function under subsection (1), the Minister of the Crown must consult such persons as the Minister considers appropriate. (5)A delegation under subsection (1) may be revoked at any time by any Minister of the Crown. 17Transfer schemes (1)The Secretary of State may make a scheme for the transfer of property, rights or liabilities from the person who, or body which, would have a local public function but for an order under section 15 to the permitted authority to which the function is transferred. (2)A Minister of the Crown may make a scheme for the transfer from the Crown to a permitted authority of such property, rights or liabilities as the Minister of the Crown considers appropriate in consequence of a delegation, or the variation of a delegation, under section 16 of a function of any Minister of the Crown to the permitted authority. (3)A Minister of the Crown may make a scheme for the transfer from a permitted authority to the Crown of such property, rights or liabilities as the Minister of the Crown considers appropriate in consequence of a variation or revocation of a delegation under section 16 of a function of any Minister of the Crown to the permitted authority. (4)The things that may be transferred under a transfer scheme include— (a)property, rights or liabilities that could not otherwise be transferred; (b)property acquired, or rights or liabilities arising, after the making of the order. (5)A transfer scheme may make consequential, supplementary, incidental and transitional provision and may in particular make provision— (a)for a certificate issued by a Minister of the Crown to be conclusive evidence that property has been transferred; (b)creating rights, or imposing liabilities, in relation to property or rights transferred; (c)about the continuing effect of things done by or in relation to the transferor in respect of anything transferred; (d)about the continuation of things (including legal proceedings) in the process of being done by, on behalf of or in relation to the transferor in respect of anything transferred; (e)for references to the transferor in an instrument or other document relating to anything transferred to be treated as references to the transferee; (f)for the shared ownership or use of property; (g)that has the same or similar effect as the TUPE regulations (so far as those regulations do not apply in relation to the transfer). (6)A transfer scheme may provide— (a)for modification by agreement; (b)for modifications to have effect from the date when the original scheme came into effect. (7)For the purposes of this section— (a)an individual who holds employment in the civil service is to be treated as employed by virtue of a contract of employment, and (b)the terms of the individual’s employment in the civil service are to be regarded as constituting the terms of the contract of employment. (8)In this section— “civil service” means the civil service of the State; “transferee”, in relation to a transfer scheme, means the person to whom property, rights or liabilities are transferred by the scheme; “transferor”, in relation to a transfer scheme, means the person from whom property, rights or liabilities are transferred by the scheme; “transfer scheme” means a scheme for the transfer of property, rights or liabilities under subsection (1), (2) or (3); “TUPE regulations” means the Transfer of Undertakings (Protection of Employment) Regulations 2006 (S.I. 2006/246); references to rights and liabilities include rights and liabilities relating to a contract of employment; references to the transfer of property include the grant of a lease. 18Duty to consider proposals for exercise of powers under sections 15 and 17 (1)If the Secretary of State receives a relevant proposal from a permitted authority, the Secretary of State must— (a)consider the proposal, and (b)notify the permitted authority of what action, if any, the Secretary of State will take in relation to the proposal. (2)The Secretary of State may by regulations specify criteria to which the Secretary of State must have regard in considering a relevant proposal. (3)For the purposes of this section, a “relevant proposal” is a proposal— (a)for the exercise of the Secretary of State’s powers in sections 15 and 17 in relation to the permitted authority, and (b)that is accompanied by such information and evidence as the Secretary of State may specify by regulations. (4)Before making regulations under this section, the Secretary of State must consult such persons as the Secretary of State considers appropriate. 19Orders under section 15: procedure (1)Before making an order under section 15, the Secretary of State must lay a draft of the instrument containing the order (the “draft order”) before each House of Parliament. (2)The Secretary of State must have regard to— (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. (3)If, after the expiry of the 60-day period, the Secretary of State wishes to make an order in the terms of the draft order, the Secretary of State must lay before Parliament a statement— (a)stating whether any representations were made under subsection (2)(a), and (b)if any representations were so made, giving details of them. (4)The Secretary of State may after the laying of such a statement make an order in the terms of the draft order if it is approved by a resolution of each House of Parliament. (5)However, a committee of either House charged with reporting on the draft order may, at any time after the laying of the statement under subsection (3) and before the draft order is approved by that House under subsection (4), recommend under this subsection that no further proceedings be taken in relation to the draft order. (6)Where a recommendation is made by a committee of either House under subsection (5) in relation to a draft order, no proceedings may be taken in relation to the draft order in that House under subsection (4) unless the recommendation is, in the same Session, rejected by a resolution of that House. (7)If, after the expiry of the 60-day period, the Secretary of State wishes to make an order consisting of a version of the draft order with material changes, the Secretary of State must lay 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. (8)The Secretary of State may after laying a revised draft order and statement under subsection (7) make an order in the terms of the revised draft order if it is approved by a resolution of each House of Parliament. (9)However, a committee of either House charged with reporting on the revised draft order may, at any time after the revised draft order is laid under subsection (7) and before it is approved by that House under subsection (8), recommend under this subsection that no further proceedings be taken in relation to the revised draft order. (10)Where a recommendation is made by a committee of either House under subsection (9) in relation to a revised draft order, no proceedings may be taken in relation to the revised draft order in that House under subsection (8) unless the recommendation is, in the same Session, rejected by resolution of that House. (11)For the purposes of subsections (4) and (8) an order is made in the terms of a draft order if it contains no material changes to the provisions of the draft order. (12)If a draft of an instrument containing an order under section 15 would, apart from this subsection, be treated for the purposes of the standing orders of either House of Parliament as a hybrid instrument, it is to proceed in that House as if it were not such an instrument. (13)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. (14)In calculating the period mentioned in subsection (13), no account is to be taken of any time during which Parliament is dissolved or prorogued or during which either House is adjourned for more than four days. 20Interpretation of Chapter In this Chapter— “enactment” includes an enactment contained in a local Act or comprised in subordinate legislation (within the meaning of the Interpretation Act 1978); “Minister of the Crown” has the same meaning as in the Ministers of the Crown Act 1975; “local public function”, in relation to a permitted authority, means a public function in so far as it relates to— (a)the permitted authority’s area, or (b)persons living, working or carrying on activities in that area; “permitted authority” means— (a)a county council in England, (b)a district council, (c)an economic prosperity board established under section 88 of the Local Democracy, Economic Development and Construction Act 2009, or (d)a combined authority established under section 103 of that Act; “public authority” includes a Minister of the Crown or a government department; “public function” means a function of a public authority that does not consist of a power to make regulations or other instruments of a legislative character. CHAPTER 5 Governance 21New arrangements with respect to governance of English local authorities Schedule 2 (new Part 1A of, including Schedule A1 to, the Local Government Act 2000) has effect. 22New local authority governance arrangements: amendments Schedule 3 (minor and consequential amendments relating to local authority governance in England) has effect. 23Changes to local authority governance in England: transitional provision etc (1)The Secretary of State may by order make such transitional, transitory or saving provision as the Secretary of State considers appropriate in connection with the coming into force of sections 21 and 22 and Schedules 2 and 3. (2)An order under subsection (1) may, in particular, include any provision— (a)relating to local authorities— (i)ceasing to operate executive arrangements or alternative arrangements under Part 2 of the Local Government Act 2000, and (ii)starting to operate executive arrangements or a committee system under Part 1A of that Act, (b)as to whether, and how, anything done, or in the process of being done, under any provision of Part 2 of that Act is to be deemed to have been done, or be in the process of being done, under any provision of Part 1A of that Act (whether generally or for specified purposes), or (c)modifying the application of any provision of Chapter 4 of Part 1A of that Act in relation to a change in governance arrangements by a local authority within a specified period. (3)The reference in subsection (2)(b) to things done includes a reference to things omitted to be done. (4)In this section— “change in governance arrangements” has the meaning given by section 9OA of the Local Government Act 2000; “local authority” means a county council in England, a district council or a London borough council; “specified” means specified in an order under this section. 24Timetables for changing English district councils’ electoral schemes (1)The Local Government and Public Involvement in Health Act 2007 is amended as follows. (2)Omit the following provisions (which provide that councils may pass resolutions to change their electoral schemes only in certain permitted periods)— (a)section 33(4), (6) and (7) (district councils changing to whole-council elections), (b)section 38(4), (6) and (7) (non-metropolitan district councils reverting to elections by halves), and (c)section 40(4), (6) and (7) (district councils reverting to elections by thirds). (3)In section 33 (resolution for whole-council elections: requirements) after subsection (3) insert— “(3A)The resolution must specify the year for the first ordinary elections of the council at which all councillors are to be elected. (3B)In the case of a district council for a district in a county for which there is a county council, the year specified under subsection (3A) may not be a county-council-elections year; and here “county-council-elections year” means 2013 and every fourth year afterwards.” (4)In section 34(2) (years in which whole-council elections to a district council are to be held if scheme under section 34 applies) for paragraphs (a) and (b) substitute— “(a)the year specified under section 33(3A) in the resolution, and (b)every fourth year afterwards.” (5)In section 34 (scheme for whole-council elections) after subsection (4) insert— “(4A)Ordinary elections of councillors of the council under the previous electoral scheme are to be held in accordance with that scheme in any year that— (a)is earlier than the year specified under section 33(3A) in the resolution for whole-council elections, and (b)is a year in which, under the previous electoral scheme, ordinary elections of councillors of the council are due to be held. (4B)In subsection (4A) “the previous electoral scheme” means the scheme for the ordinary elections of councillors of the council that applied to it immediately before it passed the resolution for whole-council elections.” (6)After section 31 insert— “31AMinimum period between resolutions to change electoral schemes If a council passes a resolution under section 32, 37 or 39 (“the earlier resolution”) it may not pass another resolution under any of those sections before the end of five years beginning with the day on which the earlier resolution is passed.” (7)In section 57 of the Local Democracy, Economic Development and Construction Act 2009 (requests for review of single-member electoral areas by councils subject to a scheme for whole-council elections) after subsection (4) (meaning of “subject to a scheme for whole-council elections”) insert— “(4A)A district council is also “subject to a scheme for whole-council elections” for those purposes if— (a)section 34 of the Local Government and Public Involvement in Health Act 2007 (scheme for whole-council elections) applies to the council, but (b)by virtue of subsection (4A) of that section (temporary continuation of previous electoral scheme), not all the members of the council are to be elected in a year in which ordinary elections of members of the council are to be held.” CHAPTER 6 Predetermination 25Prior indications of view of a matter not to amount to predetermination etc (1)Subsection (2) applies if— (a)as a result of an allegation of bias or predetermination, or otherwise, there is an issue about the validity of a decision of a relevant authority, and (b)it is relevant to that issue whether the decision-maker, or any of the decision-makers, had or appeared to have had a closed mind (to any extent) when making the decision. (2)A decision-maker is not to be taken to have had, or to have appeared to have had, a closed mind when making the decision just because— (a)the decision-maker had previously done anything that directly or indirectly indicated what view the decision-maker took, or would or might take, in relation to a matter, and (b)the matter was relevant to the decision. (3)Subsection (2) applies in relation to a decision-maker only if that decision-maker— (a)is a member (whether elected or not) of the relevant authority, or (b)is a co-opted member of that authority. (4)In this section— “co-opted member”, in relation to a relevant authority, means a person who is not a member of the authority but who— (a)is a member of any committee or sub-committee of the authority, or (b)is a member of, and represents the authority on, any joint committee or joint sub-committee of the authority, and who is entitled to vote on any question which falls to be decided at any meeting of the committee or sub-committee; “decision”, in relation to a relevant authority, means a decision made in discharging functions of the authority, functions of the authority’s executive, functions of a committee of the authority or functions of an officer of the authority (including decisions made in the discharge of any of those functions otherwise than by the person to whom the function was originally given); “elected mayor” has the meaning given by section 9H or 39 of the Local Government Act 2000; “member”— (a)in relation to the Greater London Authority, means the Mayor of London or a London Assembly member, and (b)in relation to a county council, district council, county borough council or London borough council, includes an elected mayor of the council; “relevant authority” means— (a)a county council, (b)a district council, (c)a county borough council, (d)a London borough council, (e)the Common Council of the City of London, (f)the Greater London Authority, (g)a National Park authority, (h)the Broads Authority, (i)the Council of the Isles of Scilly, (j)a parish council, or (k)a community council. (5)This section applies only to decisions made after this section comes into force, but the reference in subsection (2)(a) to anything previously done includes things done before this section comes into force. CHAPTER 7 Standards 26Amendments of existing provisions Schedule 4 (which amends the existing provisions relating to the conduct of local government members and employees in England and makes related provision) has effect. 27Duty to promote and maintain high standards of conduct (1)A relevant authority must promote and maintain high standards of conduct by members and co-opted members of the authority. (2)In discharging its duty under subsection (1), a relevant authority must, in particular, adopt a code dealing with the conduct that is expected of members and co-opted members of the authority when they are acting in that capacity. (3)A relevant authority that is a parish council— (a)may comply with subsection (2) by adopting the code adopted under that subsection by its principal authority, where relevant on the basis that references in that code to its principal authority’s register are to its register, and (b)may for that purpose assume that its principal authority has complied with section 28(1) and (2). (4)In this Chapter “co-opted member”, in relation to a relevant authority, means a person who is not a member of the authority but who— (a)is a member of any committee or sub-committee of the authority, or (b)is a member of, and represents the authority on, any joint committee or joint sub-committee of the authority,and who is entitled to vote on any question that falls to be decided at any meeting of that committee or sub-committee. (5)A reference in this Chapter to a joint committee or joint sub-committee of a relevant authority is a reference to a joint committee on which the authority is represented or a sub-committee of such a committee. (6)In this Chapter “relevant authority” means— (a)a county council in England, (b)a district council, (c)a London borough council, (d)a parish council, (e)the Greater London Authority, (f)the Metropolitan Police Authority, (g)the London Fire and Emergency Planning Authority, (h)the Common Council of the City of London in its capacity as a local authority or police authority, (i)the Council of the Isles of Scilly, (j)a fire and rescue authority in England constituted by a scheme under section 2 of the Fire and Rescue Services Act 2004 or a scheme to which section 4 of that Act applies, (k)a police authority (in England or in Wales) established under section 3 of the Police Act 1996, (l)a joint authority established by Part 4 of the Local Government Act 1985, (m)an economic prosperity board established under section 88 of the Local Democracy, Economic Development and Construction Act 2009, (n)a combined authority established under section 103 of that Act, (o)the Broads Authority, or (p)a National Park authority in England established under section 63 of the Environment Act 1995. (7)Any reference in this Chapter to a member of a relevant authority— (a)in the case of a relevant authority to which Part 1A of the Local Government Act 2000 applies, includes a reference to an elected mayor; (b)in the case of the Greater London Authority, is a reference to the Mayor of London or a London Assembly member. (8)Functions that are conferred by this Chapter on a relevant authority to which Part 1A of the Local Government Act 2000 applies are not to be the responsibility of an executive of the authority under executive arrangements. (9)Functions that are conferred by this Chapter on the Greater London Authority are to be exercisable by the Mayor of London and the London Assembly acting jointly on behalf of the Authority. (10)In this Chapter except section 35— (a)a reference to a committee or sub-committee of a relevant authority is, where the relevant authority is the Greater London Authority, a reference to— (i)a committee or sub-committee of the London Assembly, or (ii)the standards committee, or a sub-committee of that committee, established under that section, (b)a reference to a joint committee on which a relevant authority is represented is, where the relevant authority is the Greater London Authority, a reference to a joint committee on which the Authority, the London Assembly or the Mayor of London is represented, (c)a reference to becoming a member of a relevant authority is, where the relevant authority is the Greater London Authority, a reference to becoming the Mayor of London or a member of the London Assembly, and (d)a reference to a meeting of a relevant authority is, where the relevant authority is the Greater London Authority, a reference to a meeting of the London Assembly;and in subsection (4)(b) the reference to representing the relevant authority is, where the relevant authority is the Greater London Authority, a reference to representing the Authority, the London Assembly or the Mayor of London. 28Codes of conduct (1)A relevant authority must secure that a code adopted by it under section 27(2) (a “code of conduct”) is, when viewed as a whole, consistent with the following principles— (a)selflessness; (b)integrity; (c)objectivity; (d)accountability; (e)openness; (f)honesty; (g)leadership. (2)A relevant authority must secure that its code of conduct includes the provision the authority considers appropriate in respect of the registration in its register, and disclosure, of— (a)pecuniary interests, and (b)interests other than pecuniary interests. (3)Sections 29 to 34 do not limit what may be included in a relevant authority’s code of conduct, but nothing in a relevant authority’s code of conduct prejudices the operation of those sections. (4)A failure to comply with a relevant authority’s code of conduct is not to be dealt with otherwise than in accordance with arrangements made under subsection (6); in particular, a decision is not invalidated just because something that occurred in the process of making the decision involved a failure to comply with the code. (5)A relevant authority may— (a)revise its existing code of conduct, or (b)adopt a code of conduct to replace its existing code of conduct. (6)A relevant authority other than a parish council must have in place— (a)arrangements under which allegations can be investigated, and (b)arrangements under which decisions on allegations can be made. (7)Arrangements put in place under subsection (6)(b) by a relevant authority must include provision for the appointment by the authority of at least one independent person— (a)whose views are to be sought, and taken into account, by the authority before it makes its decision on an allegation that it has decided to investigate, and (b)whose views may be sought— (i)by the authority in relation to an allegation in circumstances not within paragraph (a), (ii)by a member, or co-opted member, of the authority if that person’s behaviour is the subject of an allegation, and (iii)by a member, or co-opted member, of a parish council if that person’s behaviour is the subject of an allegation and the authority is the parish council’s principal authority. (8)For the purposes of subsection (7)— (a)a person is not independent if the person is— (i)a member, co-opted member or officer of the authority, (ii)a member, co-opted member or officer of a parish council of which the authority is the principal authority, or (iii)a relative, or close friend, of a person within sub-paragraph (i) or (ii); (b)a person may not be appointed under the provision required by subsection (7) if at any time during the 5 years ending with the appointment the person was— (i)a member, co-opted member or officer of the authority, or (ii)a member, co-opted member or officer of a parish council of which the authority is the principal authority; (c)a person may not be appointed under the provision required by subsection (7) unless— (i)the vacancy for an independent person has been advertised in such manner as the authority considers is likely to bring it to the attention of the public, (ii)the person has submitted an application to fill the vacancy to the authority, and (iii)the person’s appointment has been approved by a majority of the members of the authority; (d)a person appointed under the provision required by subsection (7) does not cease to be independent as a result of being paid any amounts by way of allowances or expenses in connection with performing the duties of the appointment. (9)In subsections (6) and (7) “allegation”, in relation to a relevant authority, means a written allegation— (a)that a member or co-opted member of the authority has failed to comply with the authority’s code of conduct, or (b)that a member or co-opted member of a parish council for which the authority is the principal authority has failed to comply with the parish council’s code of conduct. (10)For the purposes of subsection (8) a person (“R”) is a relative of another person if R is— (a)the other person’s spouse or civil partner, (b)living with the other person as husband and wife or as if they were civil partners, (c)a grandparent of the other person, (d)a lineal descendant of a grandparent of the other person, (e)a parent, sibling or child of a person within paragraph (a) or (b), (f)the spouse or civil partner of a person within paragraph (c), (d) or (e), or (g)living with a person within paragraph (c), (d) or (e) as husband and wife or as if they were civil partners. (11)If a relevant authority finds that a member or co-opted member of the authority has failed to comply with its code of conduct (whether or not the finding is made following an investigation under arrangements put in place under subsection (6)) it may have regard to the failure in deciding— (a)whether to take action in relation to the member or co-opted member, and (b)what action to take. (12)A relevant authority must publicise its adoption, revision or replacement of a code of conduct in such manner as it considers is likely to bring the adoption, revision or replacement of the code of conduct to the attention of persons who live in its area. (13)A relevant authority’s function of adopting, revising or replacing a code of conduct may be discharged only by the authority. (14)Accordingly— (a)in the case of an authority to whom section 101 of the Local Government Act 1972 (arrangements for discharge of functions) applies, the function is not a function to which that section applies; (b)in the case of the Greater London Authority, the function is not a function to which section 35 (delegation of functions by the Greater London Authority) applies. 29Register of interests (1)The monitoring officer of a relevant authority must establish and maintain a register of interests of members and co-opted members of the authority. (2)Subject to the provisions of this Chapter, it is for a relevant authority to determine what is to be entered in the authority’s register. (3)Nothing in this Chapter requires an entry to be retained in a relevant authority’s register once the person concerned— (a)no longer has the interest, or (b)is (otherwise than transitorily on re-election or re-appointment) neither a member nor a co-opted member of the authority. (4)In the case of a relevant authority that is a parish council, references in this Chapter to the authority’s monitoring officer are to the monitoring officer of the parish council’s principal authority. (5)The monitoring officer of a relevant authority other than a parish council must secure— (a)that a copy of the authority’s register is available for inspection at a place in the authority’s area at all reasonable hours, and (b)that the register is published on the authority’s website. (6)The monitoring officer of a relevant authority that is a parish council must— (a)secure that a copy of the parish council’s register is available for inspection at a place in the principal authority’s area at all reasonable hours, (b)secure that the register is published on the principal authority’s website, and (c)provide the parish council with any data it needs to comply with subsection (7). (7)A parish council must, if it has a website, secure that its register is published on its website. (8)Subsections (5) to (7) are subject to section 32(2). (9)In this Chapter “principal authority”, in relation to a parish council, means— (a)in the case of a parish council for an area in a district that has a district council, that district council, (b)in the case of a parish council for an area in a London borough, the council of that London borough, and (c)in the case of a parish council for any other area, the county council for the county that includes that area. (10)In this Chapter “register”, in relation to a relevant authority, means its register under subsection (1). 30Disclosure of pecuniary interests on taking office (1)A member or co-opted member of a relevant authority must, before the end of 28 days beginning with the day on which the person becomes a member or co-opted member of the authority, notify the authority’s monitoring officer of any disclosable pecuniary interests which the person has at the time when the notification is given. (2)Where a person becomes a member or co-opted member of a relevant authority as a result of re-election or re-appointment, subsection (1) applies only as regards disclosable pecuniary interests not entered in the authority’s register when the notification is given. (3)For the purposes of this Chapter, a pecuniary interest is a “disclosable pecuniary interest” in relation to a person (“M”) if it is of a description specified in regulations made by the Secretary of State and either— (a)it is an interest of M’s, or (b)it is an interest of— (i)M’s spouse or civil partner, (ii)a person with whom M is living as husband and wife, or (iii)a person with whom M is living as if they were civil partners,and M is aware that that other person has the interest. (4)Where a member or co-opted member of a relevant authority gives a notification for the purposes of subsection (1), the authority’s monitoring officer is to cause the interests notified to be entered in the authority’s register (whether or not they are disclosable pecuniary interests). 31Pecuniary interests in matters considered at meetings or by a single member (1)Subsections (2) to (4) apply if a member or co-opted member of a relevant authority— (a)is present at a meeting of the authority or of any committee, sub-committee, joint committee or joint sub-committee of the authority, (b)has a disclosable pecuniary interest in any matter to be considered, or being considered, at the meeting, and (c)is aware that the condition in paragraph (b) is met. (2)If the interest is not entered in the authority’s register, the member or co-opted member must disclose the interest to the meeting, but this is subject to section 32(3). (3)If the interest is not entered in the authority’s register and is not the subject of a pending notification, the member or co-opted member must notify the authority’s monitoring officer of the interest before the end of 28 days beginning with the date of the disclosure. (4)The member or co-opted member may not— (a)participate, or participate further, in any discussion of the matter at the meeting, or (b)participate in any vote, or further vote, taken on the matter at the meeting,but this is subject to section 33. (5)In the case of a relevant authority to which Part 1A of the Local Government Act 2000 applies and which is operating executive arrangements, the reference in subsection (1)(a) to a committee of the authority includes a reference to the authority’s executive and a reference to a committee of the executive. (6)Subsections (7) and (8) apply if— (a)a function of a relevant authority may be discharged by a member of the authority acting alone, (b)the member has a disclosable pecuniary interest in any matter to be dealt with, or being dealt with, by the member in the course of discharging that function, and (c)the member is aware that the condition in paragraph (b) is met. (7)If the interest is not entered in the authority’s register and is not the subject of a pending notification, the member must notify the authority’s monitoring officer of the interest before the end of 28 days beginning with the date when the member becomes aware that the condition in subsection (6)(b) is met in relation to the matter. (8)The member must not take any steps, or any further steps, in relation to the matter (except for the purpose of enabling the matter to be dealt with otherwise than by the member). (9)Where a member or co-opted member of a relevant authority gives a notification for the purposes of subsection (3) or (7), the authority’s monitoring officer is to cause the interest notified to be entered in the authority’s register (whether or not it is a disclosable pecuniary interest). (10)Standing orders of a relevant authority may provide for the exclusion of a member or co-opted member of the authority from a meeting while any discussion or vote takes place in which, as a result of the operation of subsection (4), the member or co-opted member may not participate. (11)For the purpose of this section, an interest is “subject to a pending notification” if— (a)under this section or section 30, the interest has been notified to a relevant authority’s monitoring officer, but (b)has not been entered in the authority’s register in consequence of that notification. 32Sensitive interests (1)Subsections (2) and (3) apply where— (a)a member or co-opted member of a relevant authority has an interest (whether or not a disclosable pecuniary interest), and (b)the nature of the interest is such that the member or co-opted member, and the authority’s monitoring officer, consider that disclosure of the details of the interest could lead to the member or co-opted member, or a person connected with the member or co-opted member, being subject to violence or intimidation. (2)If the interest is entered in the authority’s register, copies of the register that are made available for inspection, and any published version of the register, must not include details of the interest (but may state that the member or co-opted member has an interest the details of which are withheld under this subsection). (3)If section 31(2) applies in relation to the interest, that provision is to be read as requiring the member or co-opted member to disclose not the interest but merely the fact that the member or co-opted member has a disclosable pecuniary interest in the matter concerned. 33Dispensations from section 31(4) (1)A relevant authority may, on a written request made to the proper officer of the authority by a member or co-opted member of the authority, grant a dispensation relieving the member or co-opted member from either or both of the restrictions in section 31(4) in cases described in the dispensation. (2)A relevant authority may grant a dispensation under this section only if, after having had regard to all relevant circumstances, the authority— (a)considers that without the dispensation the number of persons prohibited by section 31(4) from participating in any particular business would be so great a proportion of the body transacting the business as to impede the transaction of the business, (b)considers that without the dispensation the representation of different political groups on the body transacting any particular business would be so upset as to alter the likely outcome of any vote relating to the business, (c)considers that granting the dispensation is in the interests of persons living in the authority’s area, (d)if it is an authority to which Part 1A of the Local Government Act 2000 applies and is operating executive arrangements, considers that without the dispensation each member of the authority’s executive would be prohibited by section 31(4) from participating in any particular business to be transacted by the authority’s executive, or (e)considers that it is otherwise appropriate to grant a dispensation. (3)A dispensation under this section must specify the period for which it has effect, and the period specified may not exceed four years. (4)Section 31(4) does not apply in relation to anything done for the purpose of deciding whether to grant a dispensation under this section. 34Offences (1)A person commits an offence if, without reasonable excuse, the person— (a)fails to comply with an obligation imposed on the person by section 30(1) or 31(2), (3) or (7), (b)participates in any discussion or vote in contravention of section 31(4), or (c)takes any steps in contravention of section 31(8). (2)A person commits an offence if under section 30(1) or 31(2), (3) or (7) the person provides information that is false or misleading and the person— (a)knows that the information is false or misleading, or (b)is reckless as to whether the information is true and not misleading. (3)A person who is guilty of an offence under this section is liable on summary conviction to a fine not exceeding level 5 on the standard scale. (4)A court dealing with a person for an offence under this section may (in addition to any other power exercisable in the person’s case) by order disqualify the person, for a period not exceeding five years, for being or becoming (by election or otherwise) a member or co-opted member of the relevant authority in question or any other relevant authority. (5)A prosecution for an offence under this section is not to be instituted except by or on behalf of the Director of Public Prosecutions. (6)Proceedings for an offence under this section may be brought within a period of 12 months beginning with the date on which evidence sufficient in the opinion of the prosecutor to warrant the proceedings came to the prosecutor’s knowledge. (7)But no such proceedings may be brought more than three years— (a)after the commission of the offence, or (b)in the case of a continuous contravention, after the last date on which the offence was committed. (8)A certificate signed by the prosecutor and stating the date on which such evidence came to the prosecutor’s knowledge is conclusive evidence of that fact; and a certificate to that effect and purporting to be so signed is to be treated as being so signed unless the contrary is proved. (9)The Local Government Act 1972 is amended as follows. (10)In section 86(1)(b) (authority to declare vacancy where member becomes disqualified otherwise than in certain cases) after “2000” insert “or section 34 of the Localism Act 2011”. (11)In section 87(1)(ee) (date of casual vacancies)— (a)after “2000” insert “or section 34 of the Localism Act 2011 or”, and (b)after “decision” insert “or order”. (12)The Greater London Authority Act 1999 is amended as follows. (13)In each of sections 7(b) and 14(b) (Authority to declare vacancy where Assembly member or Mayor becomes disqualified otherwise than in certain cases) after sub-paragraph (i) insert— “(ia)under section 34 of the Localism Act 2011,”. (14)In section 9(1)(f) (date of casual vacancies)— (a)before “or by virtue of” insert “or section 34 of the Localism Act 2011”, and (b)after “that Act” insert “of 1998 or that section”. 35Delegation of functions by Greater London Authority (1)The Mayor of London and the London Assembly, acting jointly, may arrange for any of the functions conferred on them by or under this Chapter to be exercised on their behalf by— (a)a member of staff of the Greater London Authority, or (b)a committee appointed in accordance with provision made by virtue of this section. (2)Standing orders of the Greater London Authority may make provision regulating the exercise of functions by any member of staff of the Authority pursuant to arrangements under subsection (1). (3)Standing orders of the Greater London Authority may make provision for the appointment of a committee (“the standards committee”) to exercise functions conferred on the Mayor of London and the London Assembly by or under this Chapter in accordance with arrangements under subsection (1). (4)Standing orders of the Greater London Authority may make provision about the membership and procedure of the standards committee. (5)The provision that may be made under subsection (4) includes— (a)provision for the standards committee to arrange for the discharge of its functions by a sub-committee of that committee; (b)provision about the membership and procedure of such a sub-committee. (6)Subject to subsection (7), the standards committee and any sub-committee of that committee— (a)is not to be treated as a committee or (as the case may be) sub-committee of the London Assembly for the purposes of the Greater London Authority Act 1999, but (b)is a committee or (as the case may be) sub-committee of the Greater London Authority for the purposes of Part 3 of the Local Government Act 1974 (investigations by Commission for Local Administration in England). (7)Sections 6(3)(a) (failure to attend meetings) and 73(6) (functions of monitoring officer) of the Greater London Authority Act 1999 apply to the standards committee or any sub-committee of that committee as they apply to a committee of the London Assembly or any sub-committee of such a committee. (8)Part 5A of the Local Government Act 1972 (access to meetings and documents) applies to the standards committee or any sub-committee of that committee as if— (a)it were a committee or (as the case may be) a sub-committee of a principal council within the meaning of that Part, and (b)the Greater London Authority were a principal council in relation to that committee or sub-committee. (9)Arrangements under this section for the exercise of any function by— (a)a member of staff of the Greater London Authority, or (b)the standards committee,do not prevent the Mayor of London and the London Assembly from exercising those functions. (10)References in this section to the functions of the Mayor of London and the London Assembly conferred by or under this Chapter do not include their functions under this section. (11)In this section “member of staff of the Greater London Authority” has the same meaning as in the Greater London Authority Act 1999 (see section 424(1) of that Act). 36Amendment of section 27 following abolition of police authorities In section 27(6) (which defines “relevant authority” for the purposes of this Chapter) omit— (a)paragraph (f) (the Metropolitan Police Authority), and (b)paragraph (k) (police authorities). 37Transitional provision (1)An order under section 240(2) may, in particular, provide for any provision made by or under Part 3 of the Local Government Act 2000 to have effect with modifications in consequence of any partial commencement of any of the amendments to, or repeals of, provisions of that Part made by Schedule 4. (2)An order under section 240(2) may, in particular, make provision for an allegation or a case that is being investigated under Part 3 of the Local Government Act 2000 by the Standards Board for England or an ethical standards officer— (a)to be referred to an authority of a kind specified in or determined in accordance with the order; (b)to be dealt with in accordance with provision made by the order. (3)The provision that may be made by virtue of subsection (2)(b) includes— (a)provision corresponding to any provision made by or under Part 3 of the Local Government Act 2000; (b)provision applying any provision made by or under that Part with or without modifications. CHAPTER 8 Pay accountability 38Pay policy statements (1)A relevant authority must prepare a pay policy statement for the financial year 2012-2013 and each subsequent financial year. (2)A pay policy statement for a financial year must set out the authority’s policies for the financial year relating to— (a)the remuneration of its chief officers, (b)the remuneration of its lowest-paid employees, and (c)the relationship between— (i)the remuneration of its chief officers, and (ii)the remuneration of its employees who are not chief officers. (3)The statement must state— (a)the definition of “lowest-paid employees” adopted by the authority for the purposes of the statement, and (b)the authority’s reasons for adopting that definition. (4)The statement must include the authority’s policies relating to— (a)the level and elements of remuneration for each chief officer, (b)remuneration of chief officers on recruitment, (c)increases and additions to remuneration for each chief officer, (d)the use of performance-related pay for chief officers, (e)the use of bonuses for chief officers, (f)the approach to the payment of chief officers on their ceasing to hold office under or to be employed by the authority, and (g)the publication of and access to information relating to remuneration of chief officers. (5)A pay policy statement for a financial year may also set out the authority’s policies for the financial year relating to the other terms and conditions applying to the authority’s chief officers. 39Supplementary provisions relating to statements (1)A relevant authority’s pay policy statement must be approved by a resolution of the authority before it comes into force. (2)The first statement must be prepared and approved before the end of 31 March 2012. (3)Each subsequent statement must be prepared and approved before the end of the 31 March immediately preceding the financial year to which it relates. (4)A relevant authority may by resolution amend its pay policy statement (including after the beginning of the financial year to which it relates). (5)As soon as is reasonably practicable after approving or amending a pay policy statement, the authority must publish the statement or the amended statement in such manner as it thinks fit (which must include publication on the authority’s website). 40Guidance (1)A relevant authority in England must, in performing its functions under section 38 or 39, have regard to any guidance issued or approved by the Secretary of State. (2)A relevant authority in Wales must, in performing its functions under section 38 or 39, have regard to any guidance issued or approved by the Welsh Ministers. 41Determinations relating to remuneration etc (1)This section applies to a determination that— (a)is made by a relevant authority in a financial year beginning on or after 1 April 2012 and (b)relates to the remuneration of or other terms and conditions applying to a chief officer of the authority. (2)The relevant authority must comply with its pay policy statement for the financial year in making the determination. (3)Any power of a fire and rescue authority within section 43(1)(i) to appoint officers and employees is subject to the requirement in subsection (2). (4)In section 112 of the Local Government Act 1972 (appointment of staff) after subsection (2) insert— “(2A)A local authority’s power to appoint officers on such reasonable terms and conditions as the authority thinks fit is subject to section 41 of the Localism Act 2011 (requirement for determinations relating to terms and conditions of chief officers to comply with pay policy statement).” 42Exercise of functions (1)The functions conferred on a relevant authority by this Chapter are not to be the responsibility of an executive of the authority under executive arrangements. (2)Section 101 of the Local Government Act 1972 (arrangements for discharge of functions by local authorities) does not apply to the function of passing a resolution under this Chapter. (3)The function of a fire and rescue authority within section 43(1)(i) of passing a resolution under this Chapter may not be delegated by the authority. 43Interpretation (1)In this Chapter “relevant authority” means— (a)a county council, (b)a county borough council, (c)a district council, (d)a London borough council, (e)the Common Council of the City of London in its capacity as a local authority, (f)the Council of the Isles of Scilly, (g)the London Fire and Emergency Planning Authority, (h)a metropolitan county fire and rescue authority, or (i)a fire and rescue authority constituted by a scheme under section 2 of the Fire and Rescue Services Act 2004 or a scheme to which section 4 of that Act applies. (2)In this Chapter “chief officer”, in relation to a relevant authority, means each of the following— (a)the head of its paid service designated under section 4(1) of the Local Government and Housing Act 1989; (b)its monitoring officer designated under section 5(1) of that Act; (c)a statutory chief officer mentioned in section 2(6) of that Act; (d)a non-statutory chief officer mentioned in section 2(7) of that Act; (e)a deputy chief officer mentioned in section 2(8) of that Act. (3)In this Chapter “remuneration”, in relation to a chief officer and a relevant authority, means— (a)the chief officer’s salary or, in the case of a chief officer engaged by the authority under a contract for services, payments made by the authority to the chief officer for those services, (b)any bonuses payable by the authority to the chief officer, (c)any charges, fees or allowances payable by the authority to the chief officer, (d)any benefits in kind to which the chief officer is entitled as a result of the chief officer’s office or employment, (e)any increase in or enhancement of the chief officer’s pension entitlement where the increase or enhancement is as a result of a resolution of the authority, and (f)any amounts payable by the authority to the chief officer on the chief officer ceasing to hold office under or be employed by the authority, other than amounts that may be payable by virtue of any enactment. (4)In this Chapter “terms and conditions”, in relation to a chief officer and a relevant authority, means the terms and conditions on which the chief officer holds office under or is employed by the authority. (5)References in this Chapter to the remuneration of, or the other terms and conditions applying to, a chief officer include— (a)the remuneration that may be provided to, or the terms and conditions that may apply to, that chief officer in the future, and (b)the remuneration that is to be provided to, or the terms and conditions that are to apply to, chief officers of that kind that the authority may appoint in the future. (6)In this Chapter “remuneration”, in relation to a relevant authority and an employee of its who is not a chief officer, means— (a)the employee’s salary, (b)any bonuses payable by the authority to the employee, (c)any allowances payable by the authority to the employee, (d)any benefits in kind to which the employee is entitled as a result of the employee’s employment, (e)any increase in or enhancement of the employee’s pension entitlement where the increase or enhancement is as a result of a resolution of the authority, and (f)any amounts payable by the authority to the employee on the employee ceasing to be employed by the authority, other than any amounts that may be payable by virtue of any enactment. (7)References in this Chapter to the remuneration of an employee who is not a chief officer include— (a)the remuneration that may be provided to that employee in the future, and (b)the remuneration that is to be provided to employees of the same kind that the authority may employ in the future. (8)In this Chapter— “enactment” includes an enactment comprised in subordinate legislation (within the meaning of the Interpretation Act 1978); “financial year” means the period of 12 months ending with 31 March in any year. CHAPTER 9 Commission for Local Administration in England 44Arrangements for provision of services and discharge of functions (1)After section 33ZA of the Local Government Act 1974 insert— “33ZBArrangements for provision of administrative and other services (1)Arrangements involving the Commission may be entered into by persons within subsection (4) for the provision of administrative, professional or technical services by any one or more of the parties for any one or more of the parties, whether for consideration or otherwise. (2)For the purposes of subsection (1), arrangements for the provision of services involve the Commission if the Commission is one of the parties to the arrangements and at least one of the following conditions is met— (a)the Commission is the party, or one of the parties, by whom the services are to be provided; (b)the Commission is the party, or one of the parties, to whom the services are to be provided. (3)The arrangements that may be entered into under subsection (1) include arrangements for— (a)the Commission, or (b)the Commission jointly with any one or more of the parties,to have the function of discharging, on behalf of a party, any function of that party which is of an administrative, professional or technical nature. (4)The persons within this subsection are— (a)the Commission, (b)the Parliamentary Commissioner, (c)the Health Service Commissioner for England, and (d)the person administering a scheme approved under Schedule 2 to the Housing Act 1996 (scheme for enabling complaints to be investigated by a housing ombudsman).” (2)In paragraph 13 of Schedule 4 to the Local Government Act 1974 (delegation by Local Commissioners) after sub-paragraph (2) insert— “(3)Any function of the Commission may be discharged on the Commission’s behalf— (a)by any person authorised by the Commission to do so, and (b)to the extent so authorised. (4)Sub-paragraph (3) does not affect the responsibility of the Commission for the discharge of the function.” CHAPTER 10 Miscellaneous repeals 45Repeal of duties relating to promotion of democracy Chapter 1 of Part 1 of the Local Democracy, Economic Development and Construction Act 2009 (duties relating to promotion of democracy) is repealed. 46Repeal of provisions about petitions to local authorities Chapter 2 of Part 1 of the Local Democracy, Economic Development and Construction Act 2009 (petitions to local authorities) is repealed. 47Schemes to encourage domestic waste reduction by payments and charges The following provisions are repealed— (a)section 71(1) of, and Schedule 5 to, the Climate Change Act 2008 (which amend the Environmental Protection Act 1990 to enable waste collection authorities to make waste reduction schemes, but which have never been in force), and (b)sections 71(2) and (3) and 72 to 75 of that Act (which provide for the provisions mentioned in paragraph (a) to be piloted and then either brought into force, with or without amendments, or repealed). PART 2 EU financial sanctions 48Power to require public authorities to make payments in respect of certain EU financial sanctions (1)A Minister of the Crown may, in accordance with the provisions of this Part, require public authorities to make payments of amounts determined by a Minister of the Crown in respect of an EU financial sanction to which this Part applies. (2)A requirement to make a payment under this Part— (a)may only be imposed on a public authority if— (i)the authority has been designated under section 52; and (ii)the EU financial sanction concerned is one to which the designation applies; and (b)must be imposed by a notice given to the authority under section 56 (referred to in this Part as a final notice). (3)If a final notice is registered in accordance with rules of court or any practice direction, it is enforceable in the same manner as an order of the High Court. (4)Any sums paid by a public authority under this Part are to be paid into the Consolidated Fund. (5)In this Part— (a)“EU financial sanction” means a sanction consisting of a lump sum or penalty payment (or both) imposed by the Court of Justice in Article 260(2) proceedings for an infraction of EU law; (b)“infraction of EU law”, in relation to an EU financial sanction, means the failure to comply with a judgment of the Court of Justice given in proceedings under Article 258 or 259 of the Treaty on the Functioning of the European Union; and (c)“Article 260(2) proceedings” means proceedings under Article 260(2) of that Treaty. 49Duty of the Secretary of State to issue a policy statement (1)The Secretary of State must publish a statement of policy with respect to— (a)the designation of public authorities under section 52; (b)the imposition and variation of requirements to make payments under this Part; and (c)such other matters relating to the operation of the provisions of this Part as the Secretary of State may think it appropriate to include in the statement. (2)The Secretary of State may from time to time revise and republish the statement of policy required by this section. (3)A revised statement of policy may include saving or transitional provisions relating to the continued application for any purpose of any provisions of an earlier published version of the statement. (4)The Secretary of State must consult such persons as the Secretary of State considers appropriate before publishing, or revising and republishing, the statement of policy required by this section. (5)In exercising functions under this Part in relation to an EU financial sanction which has been or may be imposed on the United Kingdom— (a)a Minister of the Crown, and (b)a panel established under section 53,must have regard to the statement of policy most recently published under this section. 50The EU financial sanctions to which Part 2 applies (1)This Part applies to any EU financial sanction imposed on the United Kingdom after the commencement of this Part, subject to subsection (2). (2)If a Minister of the Crown gives a certificate— (a)specifying a part or parts of an EU financial sanction, and (b)stating that this Part is not to apply to that part, or those parts, of the sanction,this Part applies to that EU financial sanction as if it did not include that part or those parts. (3)A certificate under subsection (2)— (a)may make different provision about any of the following— (i)the lump sum (if any) paid by the United Kingdom; (ii)any periodic payment due from the United Kingdom under the terms of the EU financial sanction before the certificate is given; and (iii)any subsequent periodic payment that may fall due from the United Kingdom under those terms; and (b)must be given in such form and published in such manner as the Minister of the Crown giving it thinks fit. (4)Any provision of a certificate under subsection (2) which has the effect of excluding the whole or part of any periodic payment mentioned in subsection (3)(a)(iii) (including any such payment which has fallen due from the United Kingdom since the earlier certificate was given) may be varied by a further certificate under subsection (2). 51Meaning of “public authority” and related terms (1)This section defines various terms used in this Part. (2)“Public authority” means— (a)a local authority to which subsection (3) applies; or (b)any other person or body which has any non-devolved functions. (3)This subsection applies to— (a)any of the following in England— (i)a county council, district council or London borough council; (ii)the Common Council of the City of London (in its capacity as a local authority); (iii)the Greater London Authority; and (iv)the Council of the Isles of Scilly; (b)a council constituted under section 2 of the Local Government etc. (Scotland) Act 1994; (c)a district council within the meaning of the Local Government Act (Northern Ireland) 1972; (d)a council of a county or county borough in Wales. (4)References to functions are to functions of a public nature. (5)References to non-devolved functions are to functions which are not devolved functions. (6)References to devolved functions are to— (a)Scottish devolved functions, that is to say functions the exercise of which would be within devolved competence (within the meaning of section 54 of the Scotland Act 1998); (b)Northern Ireland devolved functions, that is to say functions which could be conferred by provision included in an Act of the Northern Ireland Assembly made without the consent of the Secretary of State (see sections 6 to 8 of the Northern Ireland Act 1998); or (c)Welsh devolved functions, that is to say functions which are exercisable in relation to Wales and could be conferred by provision falling within the legislative competence of the National Assembly for Wales as defined in section 108 of the Government of Wales Act 2006. (7)References to a public authority with mixed functions are to a public authority which has both non-devolved and devolved functions. (8)The “appropriate national authority”, in relation to a public authority with mixed functions, means the following national authority or authorities (according to whichever one or more of the following paragraphs apply to that public authority)— (a)the Scottish Ministers, if the public authority has any Scottish devolved functions; (b)the relevant Northern Ireland department, if the public authority has any Northern Ireland devolved functions; and (c)the Welsh Ministers, if the public authority has any Welsh devolved functions. 52Designation of public authorities (1)A Minister of the Crown may by order designate a public authority for the purposes of this Part. (2)The order must— (a)specify the public authority by name; (b)identify any EU financial sanction to which the designation applies; and (c)describe the activities of the authority which are covered by the designation. (3)The order may identify an EU financial sanction for the purposes of subsection (2)(b) by— (a)specifying an EU financial sanction that has been imposed on the United Kingdom; (b)specifying any Article 260(2) proceedings that have been commenced and providing that the designation is to apply to any EU financial sanction that may be imposed on the United Kingdom in those proceedings; (c)specifying a judgment of the Court of Justice finding that the United Kingdom has failed to comply with an EU obligation and providing that the designation is to apply to any EU financial sanction that may be imposed on the United Kingdom for failing to comply with that judgment; or (d)specifying or describing any proceedings under Article 258 or 259 of the Treaty on the Functioning of the European Union that have been or may be commenced and providing that the designation is to apply to any EU financial sanction that may be imposed on the United Kingdom for failing to comply with a judgment of the Court of Justice given in those proceedings. (4)The order may, for the purposes of subsection (3)(d), describe any proceedings under Article 258 or 259 that may be commenced by reference to the subject-matter of— (a)a Reasoned Opinion addressed to the United Kingdom under Article 258 or 259 (as the case may be); or (b)any other document sent to the Government of the United Kingdom by the Commission of the European Union or by another member State which gives notice to the Government of the possibility of proceedings being commenced against the United Kingdom. (5)The activities described for the purposes of subsection (2)(c) must be activities of the public authority which— (a)are carried out in the exercise of non-devolved functions of the public authority; and (b)take place after the provisions of the order describing the activities come into force. (6)The following may not be designated under this section— (a)the House of Commons, the House of Lords, the Scottish Parliament, the Northern Ireland Assembly or the National Assembly for Wales; (b)a Minister of the Crown or a United Kingdom government department; (c)a member of the Scottish Executive; (d)the First Minister or the deputy First Minister for Northern Ireland, a Northern Ireland Minister or a Northern Ireland Department; (e)a member of the Welsh Assembly Government; (f)a court or tribunal. (7)Before making an order designating a public authority a Minister of the Crown must consult— (a)the public authority concerned; and (b)if it is a public authority with mixed functions, the appropriate national authority. (8)In sections 54 to 56 references to “acts”, in relation to a public authority which has been designated under this section, are to acts within a description of activities covered by the designation. 53Establishment of independent panel (1)This section applies where— (a)an EU financial sanction to which this Part applies has been imposed by the Court of Justice; and (b)at least one public authority is the subject of a designation order under section 52 which applies to that EU financial sanction. (2)A Minister of the Crown must establish a panel for the purpose of carrying out any functions it may be given by or under any provision of this Part in relation to that EU financial sanction. (3)The panel must be established before any warning notice is given to a public authority in relation to that EU financial sanction. (4)The panel is to consist of one or more individuals appointed by a Minister of the Crown who appear to a Minister of the Crown to have suitable qualifications, expertise or experience to carry out their duties. (5)A Minister of the Crown may invite nominations for appointment to the panel from such organisations as a Minister of the Crown considers appropriate. (6)The validity of any acts of the panel is not affected by a vacancy among its members. (7)A Minister of the Crown may pay to a member of the panel such fees, allowances or expenses as a Minister of the Crown may determine. (8)A Minister of the Crown may provide such staff, accommodation or other facilities as a Minister of the Crown may consider necessary to enable the panel to carry out its functions. 54Warning notices (1)Before a public authority which has been designated under section 52 can be required to make any payment under this Part in respect of an EU financial sanction to which the designation applies— (a)a Minister of the Crown must give a warning notice under this section to the public authority; (b)the procedures set out in the warning notice (with any changes made under subsection (9)) must be followed; and (c)a Minister of the Crown must determine the matters mentioned in section 55(4). (2)A warning notice is a notice stating that a Minister of the Crown, having regard to the judgment of the Court of Justice imposing the EU financial sanction, believes— (a)that acts of the authority may have caused or contributed to the infraction of EU law for which the EU financial sanction was imposed, and (b)that, if acts of the authority did cause or contribute to that infraction of EU law, it would be appropriate to consider requiring the authority to make payments under this Part (which may be or include ongoing payments) in respect of the EU financial sanction. (3)The warning notice must also— (a)identify the EU financial sanction to which the notice relates; (b)specify the total amount of that sanction (see subsection (7)); (c)if that sanction is or includes a penalty payment, specify the amount and frequency of any periodic payments that fall due from the United Kingdom under the terms of the penalty payment (see subsection (8)); (d)set out the reasons for making the statement required by subsection (2); (e)set out the proposed procedures and arrangements for determining the matters mentioned in section 55(4) (which may include arrangements for securing that matters arising under the notice are dealt together with matters arising under other warning notices given to other public authorities in respect of the same EU financial sanction); (f)propose a timetable for those procedures and for any steps to be taken by the panel or a Minister of the Crown before any requirement to make a payment can be imposed on the authority; (g)invite the authority to make representations to a Minister of the Crown about the matters mentioned in paragraphs (e) and (f); (h)invite the authority to make representations to the panel (with any supporting evidence) about anything the authority considers relevant to the matters mentioned in section 55(4), including its response to any representations made (and any supporting evidence submitted) to the panel — (i)by a Minister of the Crown or a government department (whether in relation to matters arising from the notice or matters arising from any other warning notice given to another public authority in relation to the same EU financial sanction); (ii)by another public authority which has been given a warning notice in relation to the same EU financial sanction; or (iii)by the appropriate national authority in response to an invitation under paragraph (j) included in the notice; and (j)if the authority has mixed functions, invite the appropriate national authority to make representations about anything contained in or arising from the notice. (4)The warning notice may contain other such information as the Minister of the Crown giving it considers appropriate. (5)Before a Minister of the Crown gives a warning notice to the authority, the Minister of the Crown must consult the panel as to the contents of the notice (including in particular the proposed procedures and timetable mentioned in subsection (3)(e) and (f)). (6)If the authority has mixed functions, a Minister of the Crown must— (a)consult the appropriate national authority before deciding to give a warning notice to the authority; and (b)give the appropriate national authority a copy of any warning notice the Minister of the Crown decides to give. (7)In subsection (3)(b) the “total amount of the sanction” means the sum of the following— (a)the amount of the lump sum (if any) due from the United Kingdom under the terms of the EU financial sanction (disregarding any amount that falls to be excluded from the lump sum by virtue of section 50(2)); and (b)the total amount of the periodic payments (if any) which have fallen due from the United Kingdom on or before a day specified in the notice (disregarding any amount that falls to be excluded from any of those payments by virtue of section 50(2));and the day specified for the purposes of paragraph (b) must be no later than the day on which the warning notice is given to the authority. (8)The periodic payments to be taken into account for the purposes of subsection (3)(c) do not include— (a)any periodic payment taken into account in calculating the total amount of the sanction for the purposes of subsection (3)(b); or (b)any periodic payment, or any part of a periodic payment, that falls to be excluded from the EU financial sanction by virtue of section 50(2). (9)A Minister of the Crown may, after considering any representations made by the authority under subsection (3)(g) but before the matters mentioned in section 55(4) are determined, give the authority— (a)a notice stating any changes that the Minister has decided to make to the procedures or timetable as originally set out in the warning notice under subsection (3)(e) and (f); and (b)a copy of the warning notice incorporating those changes. (10)A Minister of the Crown must consult the panel before making any changes under subsection (9). (11)A warning notice given to a public authority may be withdrawn at any time before the matters mentioned in section 55(4) are determined, but this does not prevent another warning notice being given to the authority in relation to the same EU financial sanction. (12)In this section and section 55 “the panel” means the panel established under section 53 to deal with the EU financial sanction to which the notice relates. 55Matters to be determined before a final notice is given (1)This section applies where— (a)a warning notice has been given to a public authority; and (b)the panel has considered all representations made to it under the procedures set out in that notice. (2)The panel must make, to a Minister of the Crown, a report on the matters to which the representations made to the panel relate. (3)The report— (a)may be published by the panel in such manner as the panel thinks fit and, if not published by the panel, must be published by the Minister of the Crown to whom it is made in such manner as the Minister of the Crown thinks fit; (b)must include recommendations as to the determination of the matters mentioned in subsection (4)(a) and (b); (c)if the authority has made representations to the panel about anything the authority considers relevant to any of the matters mentioned in paragraphs (c) to (e) of subsection (4), must include recommendations as to the determination of the matters mentioned in those paragraphs; and (d)must include the panel’s reasons for any recommendations included in the report. (4)After having had regard to the report, a Minister of the Crown must determine the following matters— (a)whether any acts of the authority did cause or contribute to the infraction of EU law concerned and, in relation to any periodic payments, whether any acts of the authority have continued, and will continue, to cause or contribute to the continuation of that infraction; (b)the proportion of— (i)the total amount of the sanction (being the amount to be specified under section 56(2)(b) if a final notice is given), and (ii)any periodic payments not included in that total amount (including both payments that have fallen due since the date specified under section 54(7)(b) and future periodic payments),that, in the light of the acts of the authority which are determined to be relevant for the purposes of paragraph (a), is to be regarded as reflecting the authority’s share of the responsibility for the infraction of EU law concerned or, in relation to a periodic payment mentioned in sub-paragraph (ii), the continuing infraction of EU law concerned; (c)whether the authority should be required to make any payment or payments in respect of the EU financial sanction; (d)if so, what payment or payments the authority should make towards— (i)the total amount of the sanction referred to in paragraph (b)(i); and (ii)any periodic payments referred to in paragraph (b)(ii); and (e)when any such payment or payments should be made. (5)In determining the matters mentioned in subsection (4)(c), (d) and (e) the Minister of the Crown must have regard to— (a)the effect on the authority’s finances of any amount it may be required to pay and in particular, if the authority has mixed functions, the need to avoid any prejudicial effect on the performance by the authority of its devolved functions; (b)the determination under subsection (4)(b); and (c)any other relevant considerations. (6)Before making a final decision on the matters mentioned in subsection (4)(c), (d) and (e), the Minister of the Crown must invite— (a)representations from the authority about the potential effect on its finances and, if it has mixed functions, the effect on its devolved functions of any amount it may be required to pay; and (b)if the authority has mixed functions, representations from the appropriate national authority. 56Final notices (1)A Minister of the Crown may give a final notice to a public authority only if a Minister of the Crown has decided in accordance with section 55 to impose a requirement under this Part on the authority. (2)The final notice must— (a)identify the EU financial sanction to which the notice relates; (b)specify the total amount of the sanction (see subsection (3)) and, where relevant, the amount and frequency of any future periodic payments (see subsection (4)); (c)describe the acts of the authority that a Minister of the Crown has under section 55(4) determined— (i)have caused or contributed to the infraction of EU law concerned; or (ii)have caused or contributed, or will continue to cause or contribute, to the continuation of that infraction;and set out the reasons for that determination; (d)summarise the other determinations made by a Minister of the Crown under section 55(4) and set out the reasons for making them; (e)specify the amount required to be paid by the authority towards the total amount of the sanction and when it is to be paid (and if it is to be paid in instalments, the instalments and the date on which they become payable); (f)specify the amount or proportion required to be paid towards any future periodic payment (as defined for the purposes of paragraph (b)) and the time when that amount is to be paid (or, if the notice so provides, the time when two or more such amounts are to be paid); and (g)specify how and to whom payments are to be made. (3)In subsection (2)(b) and (e) the “total amount of the sanction” means the sum of the following— (a)the amount of the lump sum (if any) due from the United Kingdom under the terms of the EU financial sanction (disregarding any amount that falls to be excluded from the lump sum by virtue of section 50(2)); and (b)the total amount of the periodic payments (if any) which have fallen due from the United Kingdom on or before a day specified in the final notice (disregarding any amount that falls to be excluded from any of those payments by virtue of section 50(2));and the day specified for the purposes of paragraph (b) must be no later than the day on which the final notice is given to the authority. (4)In subsection (2)(b) “future periodic payments” means periodic payments due from the United Kingdom other than— (a)any periodic payment taken into account in calculating the total amount of the sanction; or (b)any periodic payment, or any part of a periodic payment, that falls to be excluded from the EU financial sanction by virtue of section 50(2). (5)The requirement to make payments towards periodic payments falling due from the United Kingdom after the notice is given continues so long as those periodic payments continue to fall due, unless a Minister of the Crown gives the authority a notice under this subsection terminating the requirement or varying it so as to make it less onerous for the authority. (6)A notice under subsection (5) may be given, either on the application of the authority or without such an application, where a Minister of the Crown considers it appropriate in the light of a change in the circumstances which applied when the final notice was given or when it was last varied (as the case may be). (7)A Minister of the Crown may— (a)consult the panel, or refer any matter relating to the possible termination or variation of the requirement for its advice or recommendations; (b)invite the authority to make representations; and (c)if the authority has mixed functions, invite the appropriate national authority to make representations,before deciding whether to terminate or vary the requirement mentioned in subsection (5). (8)If the authority makes an application under subsection (6) a Minister of the Crown may by notice to the authority suspend the requirement until further notice (but this does not affect the liability to make any payment once the suspension is ended, unless the final notice is varied to have that effect). 57Interpretation of Part: general In this Part— “act” includes omission; “the appropriate national authority”, in relation to a public authority with mixed functions, has the meaning given by section 51(8); “Article 260(2) proceedings” has the meaning given by section 48(5)(c); “Court of Justice” means the Court of Justice of the European Union; “EU financial sanction” has the meaning given by section 48(5)(a); “final notice” means a notice under section 56; “functions”, “non-devolved functions” and “devolved functions” are to be construed in accordance with section 51; “infraction of EU law”, in relation to an EU financial sanction, has the meaning given by section 48(5)(b); “Minister of the Crown” has the same meaning as in the Ministers of the Crown Act 1975; “periodic payment”, in relation to an EU financial sanction that is or includes a penalty payment, means a payment due under the terms of the penalty payment; “public authority” has the meaning given in section 51(2); “public authority with mixed functions” has the meaning given by section 51(7); “warning notice” means a notice under section 54. PART 3 EU financial sanctions: Wales 58Power to require Welsh public authorities to make payments in respect of certain EU financial sanctions (1)The Welsh Ministers may, in accordance with the provisions of this Part, require Welsh public authorities to make payments of amounts determined by the Welsh Ministers in respect of an EU financial sanction to which this Part applies. (2)A requirement to make a payment under this Part— (a)may only be imposed on a Welsh public authority if— (i)the authority has been designated under section 62; and (ii)the EU financial sanction concerned is one to which the designation applies; and (b)must be imposed by a notice given to the authority under section 66 (referred to in this Part as a final notice). (3)If a final notice is registered in accordance with rules of court or any practice direction, it is enforceable in the same manner as an order of the High Court. (4)Any sums paid by a Welsh public authority under this Part are to be paid into the Welsh Consolidated Fund. (5)In this Part— (a)“EU financial sanction” means a sanction consisting of a lump sum or penalty payment (or both) imposed by the Court of Justice in Article 260(2) proceedings for an infraction of EU law; (b)“infraction of EU law”, in relation to an EU financial sanction, means the failure to comply with a judgment of the Court of Justice given in proceedings under Article 258 or 259 of the Treaty on the Functioning of the European Union; and (c)“Article 260(2) proceedings” means proceedings under Article 260(2) of that Treaty. 59Duty of the Welsh Ministers to issue a policy statement (1)The Welsh Ministers must publish a statement of policy with respect to— (a)the designation of Welsh public authorities under section 62; (b)the imposition and variation of requirements to make payments under this Part; and (c)such other matters relating to the operation of the provisions of this Part as the Welsh Ministers may think it appropriate to include in the statement. (2)The Welsh Ministers may from time to time revise and republish the statement of policy required by this section. (3)A revised statement of policy may include saving or transitional provisions relating to the continued application for any purpose of any provisions of an earlier published version of the statement. (4)The Welsh Ministers must consult such persons as the Welsh Ministers consider appropriate before publishing, or revising and republishing, the statement of policy required by this section. (5)In exercising functions under this Part in relation to an EU financial sanction which has been or may be imposed on the United Kingdom— (a)the Welsh Ministers, and (b)a panel established under section 63,must have regard to the statement of policy most recently published under this section. 60The EU financial sanctions to which Part 3 applies (1)This Part applies to an EU financial sanction imposed on the United Kingdom if— (a)the sanction is imposed after the commencement of this Part, and (b)the Welsh Ministers certify that this Part applies to the sanction. (2)If a certificate under subsection (1)— (a)specifies a part or parts of the EU financial sanction concerned, and (b)states that this Part applies only to that part, or those parts, of the sanction,this Part applies to the sanction as if it included only that part or those parts. (3)A certificate under subsection (1)— (a)may make different provision about any of the following— (i)the lump sum (if any) paid by the United Kingdom; (ii)any periodic payment due from the United Kingdom under the terms of the EU financial sanction before the certificate is given; and (iii)any future periodic payment that may fall due from the United Kingdom under those terms; and (b)must be given in such form and published in such manner as the Welsh Ministers think fit. (4)Any provision of a certificate under subsection (1) which has the effect of excluding the whole or part of any periodic payment mentioned in subsection (3)(a)(iii) (including any such payment which has fallen due from the United Kingdom since the earlier certificate was given) may be varied by a further certificate under subsection (1). 61Meaning of “Welsh public authority” and related terms (1)Subsections (2) to (5) define various terms used in this Part. (2)“Welsh public authority” means— (a)a council of a county or county borough in Wales; or (b)any other person or body which has any Welsh devolved functions. (3)References to functions are to functions of a public nature. (4)References to Welsh devolved functions are to functions which are exercisable in relation to Wales and could be conferred by provision falling within the legislative competence of the National Assembly for Wales as defined in section 108 of the Government of Wales Act 2006. (5)The “appropriate national authority”, in relation to a Welsh public authority with any functions other than Welsh devolved functions, means the following national authority or authorities (according to whichever one or more of the following paragraphs apply to that Welsh public authority)— (a)a Minister of the Crown, if the Welsh public authority has any functions which are not devolved functions; (b)the Scottish Ministers, if the Welsh public authority has any Scottish devolved functions; and (c)the relevant Northern Ireland Department, if the Welsh public authority has any Northern Ireland devolved functions. (6)In subsection (5)(a) “devolved functions” means— (a)Welsh devolved functions; (b)Scottish devolved functions; or (c)Northern Ireland devolved functions. (7)In subsections (5) and (6)— “Northern Ireland devolved functions” means functions which could be conferred by provision included in an Act of the Northern Ireland Assembly made without the consent of the Secretary of State (see sections 6 to 8 of the Northern Ireland Act 1998); “Scottish devolved functions” means functions the exercise of which would be within devolved competence (within the meaning of section 54 of the Scotland Act 1998). 62Designation of Welsh public authorities (1)The Welsh Ministers may by order designate a Welsh public authority for the purposes of this Part. (2)The order must— (a)specify the Welsh public authority by name; (b)identify any EU financial sanction to which the designation applies; and (c)describe the activities of the authority which are covered by the designation. (3)The order may identify an EU financial sanction for the purposes of subsection (2)(b) by— (a)specifying an EU financial sanction that has been imposed on the United Kingdom; (b)specifying any Article 260(2) proceedings that have been commenced and providing that the designation is to apply to any EU financial sanction that may be imposed on the United Kingdom in those proceedings; (c)specifying a judgment of the Court of Justice finding that the United Kingdom has failed to comply with an EU obligation and providing that the designation is to apply to any EU financial sanction that may be imposed on the United Kingdom for failing to comply with that judgment; or (d)specifying or describing any proceedings under Article 258 or 259 of the Treaty on the Functioning of the European Union that have been or may be commenced and providing that the designation is to apply to any EU financial sanction that may be imposed on the United Kingdom for failing to comply with a judgment of the Court of Justice given in those proceedings. (4)The order may, for the purposes of subsection (3)(d), describe any proceedings under Article 258 or 259 that may be commenced by reference to the subject-matter of— (a)a Reasoned Opinion addressed to the United Kingdom under Article 258 or 259 (as the case may be); or (b)any other document sent to the Government of the United Kingdom by the Commission of the European Union or by another member State which gives notice to the Government of the possibility of proceedings being commenced against the United Kingdom. (5)The activities described for the purposes of subsection (2)(c) must be activities of the Welsh public authority which— (a)are carried out in the exercise of Welsh devolved functions of the authority; and (b)take place after the provisions of the order describing the activities come into force. (6)The following may not be designated under this section— (a)the National Assembly for Wales; (b)a Minister of the Crown or a United Kingdom government department; (c)a member of the Welsh Assembly Government; (d)a court or tribunal. (7)Before making an order designating a Welsh public authority the Welsh Ministers must consult— (a)the authority concerned; and (b)if the authority concerned has any functions other than Welsh devolved functions, the appropriate national authority. (8)In sections 64 to 66 references to “acts”, in relation to a Welsh public authority which has been designated under this section, are to acts within a description of activities covered by the designation. 63Establishment of independent panel (1)This section applies where— (a)an EU financial sanction to which this Part applies has been imposed by the Court of Justice; and (b)at least one Welsh public authority is the subject of a designation order under section 62 which applies to that EU financial sanction. (2)The Welsh Ministers must establish a panel for the purpose of carrying out any functions it may be given by or under any provision of this Part in relation to that EU financial sanction. (3)The panel must be established before any warning notice is given to a Welsh public authority in relation to that EU financial sanction. (4)The panel is to consist of one or more individuals appointed by the Welsh Ministers who appear to the Welsh Ministers to have suitable qualifications, expertise or experience to carry out their duties. (5)The Welsh Ministers may invite nominations for appointment to the panel from such organisations as the Welsh Ministers consider appropriate. (6)The validity of any acts of the panel is not affected by a vacancy among its members. (7)The Welsh Ministers may pay to a member of the panel such fees, allowances or expenses as the Welsh Ministers may determine. (8)The Welsh Ministers may provide such staff, accommodation or other facilities as the Welsh Ministers may consider necessary to enable the panel to carry out its functions. 64Warning notices (1)Before a Welsh public authority which has been designated under section 62 can be required to make any payment under this Part in respect of an EU financial sanction to which the designation applies— (a)the Welsh Ministers must give a warning notice under this section to the authority; (b)the procedures set out in the warning notice (with any changes made under subsection (9)) must be followed; and (c)the Welsh Ministers must determine the matters mentioned in section 65(4). (2)A warning notice is a notice stating that the Welsh Ministers, having regard to the judgment of the Court of Justice imposing the EU financial sanction, believe— (a)that acts of the authority may have caused or contributed to the infraction of EU law for which the EU financial sanction was imposed; and (b)that, if acts of the authority did cause or contribute to that infraction of EU law, it would be appropriate to consider requiring the authority to make payments under this Part (which may be or include ongoing payments) in respect of the EU financial sanction. (3)The warning notice must also— (a)identify the EU financial sanction to which the notice relates; (b)specify the total amount of that sanction (see subsection (7)); (c)if that sanction is or includes a penalty payment, specify the amount and frequency of any periodic payments that fall due from the United Kingdom under the terms of the penalty payment (see subsection (8)); (d)set out the reasons for making the statement required by subsection (2); (e)set out the proposed procedures and arrangements for determining the matters mentioned in section 65(4) (which may include arrangements for securing that matters arising under the notice are dealt together with matters arising under other warning notices given to other Welsh public authorities in respect of the same EU financial sanction); (f)propose a timetable for those procedures and for any steps to be taken by the panel or the Welsh Ministers before any requirement to make a payment can be imposed on the authority; (g)invite the authority to make representations to the Welsh Ministers about the matters mentioned in paragraphs (e) and (f); (h)invite the authority to make representations to the panel (with any supporting evidence) about anything the authority considers relevant to the matters mentioned in section 65(4), including its response to any representations made (and any supporting evidence submitted) to the panel — (i)by the Welsh Ministers (whether in relation to matters arising from the notice or matters arising from any other warning notice given to another Welsh public authority in relation to the same EU financial sanction); (ii)by another Welsh public authority which has been given a warning notice in relation to the same EU financial sanction; or (iii)by the appropriate national authority in response to an invitation under paragraph (j) included in the notice; and (j)if the authority has any functions other than Welsh devolved functions, invite the appropriate national authority to make representations about anything contained in or arising from the notice. (4)The warning notice may contain such other information as the Welsh Ministers consider appropriate. (5)Before giving a warning notice to the authority, the Welsh Ministers must consult the panel as to the contents of the notice (including in particular the proposed procedures and timetable mentioned in subsection (3)(e) and (f)). (6)If the authority has any functions other than Welsh devolved functions, the Welsh Ministers must— (a)consult the appropriate national authority before deciding to give a warning notice to the authority; and (b)give the appropriate national authority a copy of any warning notice the Welsh Ministers decide to give. (7)In subsection (3)(b) the “total amount of the sanction” means the sum of the following— (a)the amount of the lump sum (if any) due from the United Kingdom under the terms of the EU financial sanction (disregarding any amount that falls to be excluded from the lump sum by virtue of section 60(2)); and (b)the total amount of the periodic payments (if any) which have fallen due from the United Kingdom on or before a day specified in the notice (disregarding any amount that falls to be excluded from any of those payments by virtue of section 60(2));and the day specified for the purposes of paragraph (b) must be no later than the day on which the warning notice is given to the authority. (8)The periodic payments to be taken into account for the purposes of subsection (3)(c) do not include— (a)any periodic payment taken into account in calculating the total amount of the sanction for the purposes of subsection (3)(b); or (b)any periodic payment, or any part of a periodic payment, that falls to be excluded from the EU financial sanction by virtue of section 60(2). (9)The Welsh Ministers may, after considering any representations made by the authority under subsection (3)(g) but before the matters mentioned in section 65(4) are determined, give the authority— (a)a notice stating any changes that the Welsh Ministers have decided to make to the procedures or timetable as originally set out in the warning notice under subsection (3)(e) and (f); and (b)a copy of the warning notice incorporating those changes. (10)The Welsh Ministers must consult the panel before making any changes under subsection (9). (11)A warning notice given to a Welsh public authority may be withdrawn at any time before the matters mentioned in section 65(4) are determined, but this does not prevent another warning notice being given to the authority in relation to the same EU financial sanction. (12)In this section and section 65 “the panel” means the panel established under section 63 to deal with the EU financial sanction to which the notice relates. 65Matters to be determined before a final notice is given (1)This section applies where— (a)a warning notice has been given to a Welsh public authority; and (b)the panel has considered all representations made to it under the procedures set out in that notice. (2)The panel must make a report to the Welsh Ministers on the matters to which the representations made to the panel relate. (3)The report— (a)may be published by the panel in such manner as the panel thinks fit and, if not published by the panel, must be published by the Welsh Ministers in such manner as they think fit; (b)must include recommendations as to the determination of the matters mentioned in subsection (4)(a) and (b); (c)if the authority has made representations to the panel about anything the authority considers relevant to any of the matters mentioned in paragraphs (c) to (e) of subsection (4), must include recommendations as to the determination of the matters mentioned in those paragraphs; and (d)must include the panel’s reasons for any recommendations included in the report. (4)After having had regard to the report, the Welsh Ministers must determine the following matters— (a)whether any acts of the authority did cause or contribute to the infraction of EU law concerned and, in relation to any periodic payments, whether any acts of the authority have continued, and will continue, to cause or contribute to the continuation of that infraction; (b)the proportion of— (i)the total amount of the sanction (being the amount to be specified under section 66(2)(b) if a final notice is given), and (ii)any periodic payments not included in that total amount (including both payments that have fallen due since the date specified under section 64(7)(b) and future periodic payments),that, in the light of the acts of the authority which are determined to be relevant for the purposes of paragraph (a), is to be regarded as reflecting the authority’s share of the responsibility for the infraction of EU law concerned or, in relation to a periodic payment mentioned in sub-paragraph (ii), the continuing infraction of EU law concerned; (c)whether the authority should be required to make any payment or payments in respect of the EU financial sanction; (d)if so, what payment or payments the authority should make towards— (i)the total amount of the sanction referred to in paragraph (b)(i); and (ii)any periodic payments referred to in paragraph (b)(ii); and (e)when any such payment or payments should be made. (5)In determining the matters mentioned in subsection (4)(c), (d) and (e) the Welsh Ministers must have regard to— (a)the effect on the authority’s finances of any amount it may be required to pay and in particular, if the authority has any functions other than Welsh devolved functions, the need to avoid any prejudicial effect on the performance by the authority of those other functions; (b)the determination under subsection (4)(b); and (c)any other relevant considerations. (6)Before making a final decision on the matters mentioned in subsection (4)(c), (d) and (e), the Welsh Ministers must invite— (a)representations from the authority about the potential effect on its finances and, if it has any functions other than Welsh devolved functions, the effect on those other functions of any amount it may be required to pay; and (b)if the authority has any functions other than Welsh devolved functions, representations from the appropriate national authority. 66Final notices (1)The Welsh Ministers may give a final notice to a Welsh public authority only if they have decided in accordance with section 65 to impose a requirement under this Part on the authority. (2)The final notice must— (a)identify the EU financial sanction to which the notice relates; (b)specify the total amount of the sanction (see subsection (3)) and, where relevant, the amount and frequency of any future periodic payments (see subsection (4)); (c)describe the acts of the authority that the Welsh Ministers have under section 65(4) determined— (i)have caused or contributed to the infraction of EU law concerned; or (ii)have caused or contributed, or will continue to cause or contribute, to the continuation of that infraction;and set out the reasons for that determination; (d)summarise the other determinations made by the Welsh Ministers under section 65(4) and set out the reasons for making them; (e)specify the amount required to be paid by the authority towards the total amount of the sanction and when it is to be paid (and if it is to be paid in instalments, the instalments and the date on which they become payable); (f)specify the amount or proportion required to be paid towards any future periodic payment (as defined for the purposes of paragraph (b)) and the time when that amount is to be paid (or, if the notice so provides, the time when two or more such amounts are to be paid); and (g)specify how and to whom payments are to be made. (3)In subsection (2)(b) and (e) the “total amount of the sanction” means the sum of the following— (a)the amount of the lump sum (if any) due from the United Kingdom under the terms of the EU financial sanction (disregarding any amount that falls to be excluded from the lump sum by virtue of section 60(2)); and (b)the total amount of the periodic payments (if any) which have fallen due from the United Kingdom on or before a day specified in the final notice (disregarding any amount that falls to be excluded from any of those payments by virtue of section 60(2));and the day specified for the purposes of paragraph (b) must be no later than the day on which the final notice is given to the authority. (4)In subsection (2)(b) “future periodic payments” means periodic payments due from the United Kingdom other than— (a)any periodic payment taken into account in calculating the total amount of the sanction; or (b)any periodic payment, or any part of a periodic payment, that falls to be excluded from the EU financial sanction by virtue of section 60(2). (5)The requirement to make payments towards periodic payments falling due from the United Kingdom after the notice is given continues so long as those periodic payments continue to fall due, unless the Welsh Ministers give the authority a notice under this subsection terminating the requirement or varying it so as to make it less onerous for the authority. (6)A notice under subsection (5) may be given, either on the application of the authority or without such an application, where the Welsh Ministers consider it appropriate in the light of a change in the circumstances which applied when the final notice was given or when it was last varied (as the case may be). (7)The Welsh Ministers may— (a)consult the panel, or refer any matter relating to the possible termination or variation of the requirement for its advice or recommendations; (b)invite the authority to make representations; and (c)if the authority has any functions other than Welsh devolved functions, invite the appropriate national authority to make representations,before deciding whether to terminate or vary the requirement mentioned in subsection (5). (8)If the authority makes an application under subsection (6) the Welsh Ministers may by notice to the authority suspend the requirement until further notice (but this does not affect the liability to make any payment once the suspension is ended, unless the final notice is varied to have that effect). 67Interpretation of Part: general In this Part— “act” includes omission; “the appropriate national authority”, in relation to a Welsh public authority with any functions other than Welsh devolved functions, has the meaning given by section 61(5); “Article 260(2) proceedings” has the meaning given by section 58(5)(c); “Court of Justice” means the Court of Justice of the European Union; “EU financial sanction” has the meaning given by section 58(5)(a); “final notice” means a notice under section 66; “functions” and “Welsh devolved functions” are to be construed in accordance with section 61(3) and (4); “infraction of EU law”, in relation to an EU financial sanction, has the meaning given by section 58(5)(b); “Minister of the Crown” has the same meaning as in the Ministers of the Crown Act 1975; “periodic payment”, in relation to an EU financial sanction that is or includes a penalty payment, means a payment due under the terms of the penalty payment; “warning notice” means a notice under section 64; “Welsh public authority” has the meaning given in section 61(2). PART 4 Non-domestic rates etc Business rate supplements 68Ballot for imposition and certain variations of a business rate supplement (1)The Business Rate Supplements Act 2009 (“the 2009 Act”) is amended as follows. (2)In section 4(c) (condition for imposing a BRS) for “where there is to be a ballot on the imposition of the BRS, the ballot” substitute “a ballot”. (3)In section 7 (holding of ballot) omit subsections (1), (2) and (5) (provision about the circumstances in which a ballot on the imposition of a BRS is to be held). (4)In section 8(1) (meaning of approve by ballot) for “If a ballot on the imposition of a BRS is held, the imposition of the BRS” substitute “The imposition of a BRS”. (5)In section 10 (variations)— (a)in subsection (2)(c) (condition for varying a BRS) omit the words from the beginning to “subsection (7),”, and (b)omit subsections (7) to (9) (provision about the circumstances in which a ballot on a proposal to vary a BRS is to be held). (6)In Schedule 1 (information to be included in a prospectus for a BRS) for paragraphs 19 and 20 (information required in relation to a ballot on the imposition of the BRS) substitute— “19In an initial prospectus, a statement that there is to be a ballot on the imposition of the BRS. 20In a final prospectus— (a)a statement that a ballot has been held on the imposition of the BRS; (b)the results of the ballot, including in particular— (i)the total number of votes cast, (ii)the number of persons who voted in favour of the imposition of the BRS, (iii)the number of persons who voted against its imposition, (iv)the aggregate of the rateable values of each hereditament in respect of which a person voted in the ballot, (v)the aggregate of the rateable values of each hereditament in respect of which a person voted in favour of the imposition of the BRS, and (vi)the aggregate of the rateable values of each hereditament in respect of which a person voted against its imposition.” (7)The amendments made by this section do not apply in relation to a BRS imposed before the date this section comes into force (whether or not the chargeable period of the BRS has begun before that date). (8)In this section— “BRS” means a business rate supplement (see section 1 of the 2009 Act); “chargeable period” has the meaning given by section 11(6) of that Act. Non-domestic rates 69Non-domestic rates: discretionary relief (1)Section 47 of the Local Government Finance Act 1988 (non-domestic rates: discretionary relief) is amended as follows. (2)In subsection (1) (eligibility for relief) for the words from “the first and second conditions” to “are fulfilled” substitute “the condition mentioned in subsection (3) below is fulfilled”. (3)Omit subsection (2) (the first eligibility condition). (4)In subsection (3) (the second eligibility condition) omit “second”. (5)Omit subsections (3A) to (3D) (the other eligibility conditions). (6)After subsection (5) insert— “(5A)So far as a decision under subsection (3) above would have effect where none of section 43(6) above, section 43(6B) above and subsection (5B) below applies, the billing authority may make the decision only if it is satisfied that it would be reasonable for it to do so, having regard to the interests of persons liable to pay council tax set by it. (5B)This subsection applies on the chargeable day if— (a)all or part of the hereditament is occupied for the purposes of one or more institutions or other organisations— (i)none of which is established or conducted for profit, and (ii)each of whose main objects are charitable or are otherwise philanthropic or religious or concerned with education, social welfare, science, literature or the fine arts, or (b)the hereditament— (i)is wholly or mainly used for purposes of recreation, and (ii)all or part of it is occupied for the purposes of a club, society or other organisation not established or conducted for profit. (5C)A billing authority in England, when making a decision under subsection (3) above, must have regard to any relevant guidance issued by the Secretary of State. (5D)A billing authority in Wales, when making a decision under subsection (3) above, must have regard to any relevant guidance issued by the Welsh Ministers.” (7)Before subsection (9) insert— “(8A)This section does not apply where the hereditament is an excepted hereditament.” (8)Sub-paragraph (6) of paragraph 4 of Schedule 8 to the Local Government Finance Act 1988 (contributions regulations for a financial year to be in force by preceding 1 January) does not apply to regulations under that paragraph in their application to the financial year beginning in 2012 so far as they make provision related to the operation of section 47 of that Act as amended by this Act. 70Small business relief (1)Section 43 of the Local Government Finance Act 1988 (liability to non-domestic rates) is amended as follows. (2)In subsection (4B)(a) (small business relief: England) omit— (a)sub-paragraph (i) (maximum rateable value of hereditament), and (b)sub-paragraph (iii) (requirement for application). (3)Omit subsection (4C) (form and content of application). (4)In subsection (4D) (offence of making false application)— (a)after “If” insert “the ratepayer makes an application in order to satisfy a condition prescribed under subsection (4B)(a)(ii) above and”, (b)in paragraph (a) for “an application under subsection (4B)(a)(iii) above” substitute “the application”, and (c)in paragraph (b) for “such an” substitute “the”. 71Cancellation of liability to backdated non-domestic rates After section 49 of the Local Government Finance Act 1988 insert— “49ACancellation of backdated liabilities for days in years 2005 to 2010 (1)The Secretary of State may by regulations provide that, in a prescribed case, the chargeable amount under section 43 or 45 for a hereditament in England for a chargeable day is zero. (2)The regulations may give that relief in relation to a hereditament and a chargeable day only if— (a)the hereditament is shown for the day in a local non-domestic rating list compiled on 1 April 2005, and (b)it is shown for that day as it is shown as the result of an alteration of the list made after the list was compiled. (3)The regulations may give that relief in relation to a hereditament and a chargeable day subject to the fulfilment of prescribed conditions. (4)A prescribed condition may be— (a)a condition to be fulfilled in relation to the hereditament, (b)a condition to be fulfilled in relation to some other hereditament, or (c)some other condition. (5)The conditions that may be prescribed include, in particular— (a)conditions relating to the circumstances in which an alteration of a local non-domestic rating list was made; (b)conditions relating to the consequences of the alteration; (c)conditions relating to the length of the period beginning with the first day from which an alteration had effect and ending with the day on which the alteration was made; (d)conditions relating to a person’s liability or otherwise to non-domestic rates at any time.” PART 5 Community empowerment CHAPTER 1 Council tax 72Referendums relating to council tax increases (1)In Part 1 of the Local Government Finance Act 1992 (council tax: England and Wales) after Chapter 4 insert the Chapter set out in Schedule 5. (2)Schedule 6 (council tax referendums: further amendments) has effect. 73References to proper accounting practices In section 21(4) of the Local Government Act 2003 (enactments to which provisions about references to proper accounting practices apply)— (a)at the end of paragraph (c) insert— “(ca)the Local Government Finance Act 1992 (c. 14),”, and (b)for the “and” at the end of paragraph (d) substitute— “(da)the Greater London Authority Act 1999 (c. 29), and”. 74Council tax calculations by billing authorities in England Before section 32 of the Local Government Finance Act 1992 insert— “31ACalculation of council tax requirement by authorities in England (1)In relation to each financial year a billing authority in England must make the calculations required by this section. (2)The authority must calculate the aggregate of— (a)the expenditure which the authority estimates it will incur in the year in performing its functions and will charge to a revenue account, other than a BID Revenue Account, for the year in accordance with proper practices, (b)such allowance as the authority estimates will be appropriate for contingencies in relation to amounts to be charged or credited to a revenue account for the year in accordance with proper practices, (c)the financial reserves which the authority estimates it will be appropriate to raise in the year for meeting its estimated future expenditure, (d)such financial reserves as are sufficient to meet so much of the amount estimated by the authority to be a revenue account deficit for any earlier financial year as has not already been provided for, (e)any amounts which it estimates will be transferred in the year from its general fund to its collection fund in accordance with section 97(4) of the 1988 Act, and (f)any amounts which it estimates will be transferred from its general fund to its collection fund pursuant to a direction under section 98(5) of the 1988 Act and charged to a revenue account for the year. (3)The authority must calculate the aggregate of— (a)the income which it estimates will accrue to it in the year and which it will credit to a revenue account, other than a BID Revenue Account, for the year in accordance with proper practices, (b)any amounts which it estimates will be transferred in the year from its collection fund to its general fund in accordance with section 97(3) of the 1988 Act, (c)any amounts which it estimates will be transferred from its collection fund to its general fund pursuant to a direction under section 98(4) of the 1988 Act and will be credited to a revenue account for the year, and (d)the amount of the financial reserves which the authority estimates it will use in order to provide for the items mentioned in subsection (2)(a), (b), (e) and (f) above. (4)If the aggregate calculated under subsection (2) above exceeds that calculated under subsection (3) above, the authority must calculate the amount equal to the difference; and the amount so calculated is to be its council tax requirement for the year. (5)In making the calculation under subsection (2) above the authority must ignore payments which must be met from its collection fund under section 90(2) of the 1988 Act or from a trust fund. (6)In estimating under subsection (2)(a) above the authority must take into account— (a)the amount of any expenditure which it estimates it will incur in the year in making any repayments of grants or other sums paid to it by the Secretary of State, and (b)the amount of any precept issued to it for the year by a local precepting authority and the amount of any levy or special levy issued to it for the year. (7)But (except as provided by regulations under section 41 below or regulations under section 74 or 75 of the 1988 Act) the authority must not anticipate a precept, levy or special levy not issued. (8)For the purposes of subsection (2)(c) above an authority’s estimated future expenditure is— (a)that which the authority estimates it will incur in the financial year following the year in question, will charge to a revenue account for the year in accordance with proper practices and will have to defray in the year before the following sums are sufficiently available— (i)sums which will be payable for the year into its general fund and in respect of which amounts will be credited to a revenue account for the year in accordance with proper practices, and (ii)sums which will be transferred as regards the year from its collection fund to its general fund, and (b)that which the authority estimates it will incur in the financial year referred to in paragraph (a) above or any subsequent financial year in performing its functions and which will be charged to a revenue account for that or any other year in accordance with proper practices. (9)In making the calculation under subsection (3) above the authority must ignore— (a)payments which must be made into its collection fund under section 90(1) of the 1988 Act or to a trust fund, and (b)subject to paragraphs (b) and (c) of subsection (3) above, sums which have been or are to be transferred from its collection fund to its general fund. (10)The Secretary of State may by regulations do either or both of the following— (a)alter the constituents of any calculation to be made under subsection (2) or (3) above (whether by adding, deleting or amending items); (b)alter the rules governing the making of any calculation under subsection (2) or (3) above (whether by deleting or amending subsections (5) to (9) above, or any of them, or by adding other provisions, or by a combination of those methods). (11)Calculations to be made in relation to a particular financial year under this section must be made before 11th March in the preceding financial year, but they are not invalid merely because they are made on or after that date. (12)This section is subject to section 52ZS below (which requires a direction to a billing authority that the referendum provisions in Chapter 4ZA are not to apply to the authority for a financial year to state the amount of the authority’s council tax requirement for the year). (13)In this section “BID Revenue Account” has the same meaning as in Part 4 of the Local Government Act 2003. 31BCalculation of basic amount of tax by authorities in England (1)In relation to each financial year a billing authority in England must calculate the basic amount of its council tax by applying the formula— where— R is the amount calculated (or last calculated) by the authority under section 31A(4) above as its council tax requirement for the year; T is the amount which is calculated by the authority as its council tax base for the year and, where one or more major precepting authorities have power to issue precepts to it, is notified by it to those authorities (“the major precepting authorities concerned”) within the prescribed period. (2)Where the aggregate calculated (or last calculated) by the authority for the year under subsection (2) of section 31A above does not exceed that so calculated under subsection (3) of that section, the amount for item R in subsection (1) above is to be nil. (3)The Secretary of State must make regulations containing rules for making for any year the calculation required by item T in subsection (1) above; and a billing authority must make the calculation for any year in accordance with the rules for the time being effective (as regards the year) under the regulations. (4)Regulations prescribing a period for the purposes of item T in subsection (1) above may provide that, in any case where a billing authority fails to notify its calculation to the major precepting authorities concerned within that period, that item must be determined in the prescribed manner by such authority or authorities as may be prescribed. (5)The Secretary of State may by regulations do either or both of the following— (a)alter the constituents of any calculation to be made under subsection (1) above (whether by adding, deleting or amending items); (b)provide for rules governing the making of any calculation under that subsection (whether by adding provisions to, or deleting or amending provisions of, this section, or by a combination of those methods).” 75Council tax calculations by major precepting authorities in England Before section 43 of the Local Government Finance Act 1992 insert— “42ACalculation of council tax requirement by authorities in England (1)In relation to each financial year a major precepting authority in England must make the calculations required by this section. (2)The authority must calculate the aggregate of— (a)the expenditure the authority estimates it will incur in the year in performing its functions and will charge to a revenue account for the year in accordance with proper practices, (b)such allowance as the authority estimates will be appropriate for contingencies in relation to amounts to be charged or credited to a revenue account for the year in accordance with proper practices, (c)the financial reserves which the authority estimates it will be appropriate to raise in the year for meeting its estimated future expenditure, and (d)such financial reserves as are sufficient to meet so much of the amount estimated by the authority to be a revenue account deficit for any earlier financial year as has not already been provided for. (3)The authority must calculate the aggregate of— (a)the income which it estimates will accrue to it in the year and which it will credit to a revenue account for the year in accordance with proper practices, other than income which it estimates will accrue to it in respect of any precept issued by it, and (b)the amount of the financial reserves which the authority estimates that it will use in order to provide for the items mentioned in paragraphs (a) and (b) of subsection (2) above. (4)If the aggregate calculated under subsection (2) above exceeds that calculated under subsection (3) above, the authority must calculate the amount equal to the difference; and the amount so calculated is to be its council tax requirement for the year. (5)In making the calculation under subsection (2) above the authority must ignore payments which must be met from a trust fund. (6)In estimating under subsection (2)(a) above an authority must take into account— (a)the amount of any expenditure which it estimates it will incur in the year in making any repayments of grants or other sums paid to it by the Secretary of State, and (b)in the case of an authority which is a county council, the amount of any levy issued to it for the year. (7)But (except as provided by regulations under section 74 of the 1988 Act) the authority must not anticipate a levy not issued. (8)For the purposes of subsection (2)(c) above an authority’s estimated future expenditure is— (a)that which the authority estimates it will incur in the financial year following the year in question, will charge to a revenue account for the year in accordance with proper practices and will have to defray in the year before the following sums are sufficiently available— (i)sums which will be payable to it for the year, and (ii)sums in respect of which amounts will be credited to a revenue account for the year in accordance with proper practices, and (b)that which the authority estimates it will incur in the financial year referred to in paragraph (a) above or any subsequent financial year in performing its functions and which will be charged to a revenue account for that or any other year in accordance with proper practices. (9)In making the calculation under subsection (3) above the authority must ignore payments which must be made into a trust fund. (10)In estimating under subsection (3)(a) above the authority must take into account the sums which the authority estimates will be paid to it in the year by billing authorities in accordance with regulations under section 99(3) of the 1988 Act. (11)The Secretary of State may by regulations do one or both of the following— (a)alter the constituents of any calculation to be made under subsection (2) or (3) above (whether by adding, deleting or amending items); (b)alter the rules governing the making of any calculation under subsection (2) or (3) above (whether by deleting or amending subsections (5) to (10) above, or any of them, or by adding other provisions, or by a combination of those methods). (12)This section is subject to section 52ZT below (which requires a direction to a major precepting authority that the referendum provisions in Chapter 4ZA are not to apply to the authority for a financial year to state the amount of the authority’s council tax requirement for the year). 42BCalculation of basic amount of tax by authorities in England (1)In relation to each financial year a major precepting authority in England must calculate the basic amount of its council tax by applying the formula— where— R is the amount calculated (or last calculated) by the authority under section 42A(4) above as its council tax requirement for the year; T is the aggregate of the amounts which are calculated by the billing authorities to which the authority issues precepts (“the billing authorities concerned”) as their council tax bases for the year for their areas, or (as the case may require) for the parts of their areas falling within the authority’s area, and are notified by them to the authority within the prescribed period. (2)Where the aggregate calculated (or last calculated) by the authority for the year under subsection (2) of section 42A above does not exceed that so calculated under subsection (3) of that section, the amount for item R in subsection (1) above is to be nil. (3)The Secretary of State must make regulations containing rules for making for any year the calculation required by item T in subsection (1) above; and the billing authorities concerned must make the calculations for any year in accordance with the rules for the time being effective (as regards the year) under the regulations. (4)Regulations prescribing a period for the purposes of item T in subsection (1) above may provide that, in any case where a billing authority fails to notify its calculation to the precepting authority concerned within that period, that item must be determined in the prescribed manner by such authority or authorities as may be prescribed. (5)The Secretary of State may by regulations do either or both of the following— (a)alter the constituents of any calculation to be made under subsection (1) above (whether by adding, deleting or amending items); (b)provide for rules governing the making of any calculation under that subsection (whether by adding provisions to, or deleting or amending provisions of, this section, or by a combination of those methods).” 76Calculation of council tax requirement by the Greater London Authority (1)Section 85 of the Greater London Authority Act 1999 (calculation of component and consolidated budget requirements) is amended as follows. (2)In the section heading for “budget” substitute “council tax”. (3)In subsection (1) for “43” substitute “42A”. (4)In subsection (4)— (a)in paragraph (a) for the words from “, other than” to “the 1988 Act” substitute “in accordance with proper practices”, and (b)in paragraph (b)— (i)for “expenditure to be charged” substitute “amounts to be charged or credited”, and (ii)after “for the year” insert “in accordance with proper practices”. (5)In subsection (5) for paragraph (a) substitute— “(a)the income which the Authority estimates will accrue to or for the body in the year and which will be credited to a revenue account for the year in accordance with proper practices, other than income which the Authority estimates will accrue in respect of any precept issued by it;”. (6)In subsection (6)(b) for “budget” substitute “council tax”. (7)In subsection (7) for “budget” substitute “council tax”. (8)In subsection (8) for “budget” in both places substitute “council tax”. (9)Omit subsection (9). (10)Section 86 of that Act (provisions supplemental to section 85) is amended as follows. (11)After subsection (1) insert— “(1A)In making any calculation under subsection (4) of section 85 above the Authority shall ignore payments which must be met from a trust fund. (1B)In estimating under subsection (4)(a) of section 85 above— (a)in the case of any functional body, the Authority shall take into account the amount of any expenditure which it estimates will be incurred in the year in respect of the body under section 43(1) of the Local Government Act 2003 or in paying any BID levy for which the body is liable, and (b)in the case of the Mayor, the Authority shall take into account the amount of any expenditure which it estimates will be incurred in the year in respect of the Authority under section 43(1) of the Local Government Act 2003 or in paying any BID levy for which the Authority is liable.” (12)After subsection (2A) insert— “(2B)In estimating under subsection (4)(a) of section 85 above in the case of the Mayor, the Authority shall take into account the amount of any expenditure which the Authority estimates it will incur in the year in pursuance of regulations under section 99(3) of the Local Government Finance Act 1988.” (13)After subsection (4) insert— “(4A)In making any calculation under subsection (5) of section 85 above, the Authority must ignore payments which must be made into a trust fund. (4B)In estimating under subsection (5)(a) of section 85 above in the case of the Mayor, the Authority shall take into account— (a)the amounts which the Authority estimates will be paid to it in the year by billing authorities in accordance with regulations under section 99(3) of the Local Government Finance Act 1988, and (b)the amount of any expenditure which it estimates will be incurred in the year by the Authority in making any repayments of grants or other sums paid to the Authority by the Secretary of State. (4C)In estimating under subsection (5)(a) of section 85 above in the case of a functional body, the Authority shall take into account the amount of any expenditure which it estimates will be incurred in the year in making by or in respect of the body any repayments of grants or other sums paid to or for the body by the Secretary of State. (4D)In estimating under subsection (5)(a) of section 85 above in the case of the Mayor’s Office for Policing and Crime, the Authority must use such amounts as may be prescribed by the Secretary of State as the sums that are payable to the Mayor’s Office for Policing and Crime in respect of the following items— (a)redistributed non-domestic rates, (b)revenue support grant, (c)general GLA grant, and (d)additional grant. (4E)In subsection (4D) above, “prescribed” means specified in, or determined in accordance with, either— (a)the appropriate report or determination, or (b)regulations made by the Secretary of State,as the Secretary of State may determine in the case of any particular item and any particular financial year or years. (4F)In subsection (4E) above, “the appropriate report or determination” means— (a)in the case of an item specified in paragraph (a) or (b) of subsection (4D) above, the local government finance report for the financial year in question, (b)in the case of the item specified in paragraph (c) of that subsection, the determination under section 100 below for the financial year in question, and (c)in the case of the item specified in paragraph (d) of that subsection, the report under section 85 of the Local Government Finance Act 1988 relating to that item.” (14)In subsection (5)(b) for “(4)” substitute “(4F)”. (15)Omit subsection (6). 77Calculation of basic amount of tax by the Greater London Authority (1)Section 88 of the Greater London Authority Act 1999 (calculation of basic amount of tax) is amended as follows. (2)In subsection (1) for “44” substitute “42B”. (3)For subsection (2) substitute— “(2)In relation to each financial year the Authority shall calculate the basic amount of its council tax by applying the formula— ” where— R is the amount calculated (or last calculated) by the Authority under section 85(8) above as its consolidated council tax requirement for the year; A is the amount of the special item; T is the aggregate of the amounts which are calculated by the billing authorities to which the Authority issues precepts (“the billing authorities concerned”) as their council tax bases for the year for their areas and are notified by them to the Authority within the prescribed period.” (4)Omit subsections (3) to (5). (5)In subsection (8) for paragraph (b) substitute— “(b)provide for rules governing the making of any calculation under that subsection (whether by adding provisions to, or deleting or amending provisions of, this section, or by a combination of those methods).” (6)Section 89 of that Act (additional calculations: special item for part of Greater London) is amended as follows. (7)For subsection (4) substitute— “(4)For dwellings in any part of Greater London to which the special item relates, the amount in respect of the special item is given by the formula— ” where— S2 is the amount of the special item; TP2 is the aggregate of the amounts which are calculated by the billing authorities to which the Authority has power to issue precepts as respects the special item (“the billing authorities concerned”) as their council tax bases for the year for their areas and are notified by them to the Authority within the prescribed period.” (8)Omit subsections (5) and (6). (9)In subsection (9) for paragraph (b) substitute— “(b)provide for rules governing the making of any calculation under or by virtue of that subsection (whether by adding provisions to, or deleting or amending provisions of, this section, or by a combination of those methods).” 78Council tax calculation by local precepting authorities in England Before section 50 of the Local Government Finance Act 1992 insert— “49ACalculation of council tax requirement by authorities in England (1)In relation to each financial year a local precepting authority in England must make the calculations required by this section. (2)The authority must calculate the aggregate of— (a)the expenditure the authority estimates it will incur in the year in performing its functions and will charge to a revenue account for the year in accordance with proper practices, (b)such allowance as the authority estimates will be appropriate for contingencies in relation to amounts to be charged or credited to a revenue account for the year in accordance with proper practices, (c)the financial reserves which the authority estimates it will be appropriate to raise in the year for meeting its estimated future expenditure, and (d)such financial reserves as are sufficient to meet so much of the amount estimated by the authority to be a revenue account deficit for any earlier financial year as has not already been provided for. (3)The authority must calculate the aggregate of— (a)the income which it estimates will accrue to it in the year and which it will credit to a revenue account for the year in accordance with proper practices, other than income which it estimates will accrue to it in respect of any precept issued by it, and (b)the amount of the financial reserves which the authority estimates that it will use in order to provide for the items mentioned in paragraphs (a) and (b) of subsection (2) above. (4)If the aggregate calculated under subsection (2) above exceeds that calculated under subsection (3) above, the authority must calculate the amount equal to the difference; and the amount so calculated is to be its council tax requirement for the year. (5)For the purposes of subsection (2)(c) above an authority’s estimated future expenditure is— (a)that which the authority estimates it will incur in the financial year following the year in question, will charge to a revenue account for the year in accordance with proper practices and will have to defray in the year before the following sums are sufficiently available, namely, sums— (i)which will be payable to it for the year, and (ii)in respect of which amounts will be credited to a revenue account for the year in accordance with proper practices, and (b)that which the authority estimates it will incur in the financial year referred to in paragraph (a) above or any subsequent financial year in performing its functions and which will be charged to a revenue account for that or any other year in accordance with proper practices. (6)This section is subject to section 52ZV below (which requires a direction to a local precepting authority that the referendum provisions in Chapter 4ZA are not to apply to the authority for a financial year to state the amount of the authority’s council tax requirement for the year). 49BSubstitute calculations (1)A local precepting authority which has made calculations in accordance with section 49A above in relation to a financial year (originally or by way of substitute) may make calculations in substitution in relation to the year in accordance with that section. (2)None of the substitute calculations are to have any effect if the amount calculated under section 49A(4) above would exceed that so calculated in the previous calculations. (3)Subsection (2) above does not apply if the previous calculation under subsection (4) of section 49A above has been quashed because of a failure to comply with that section in making the calculation.” 79Council tax: minor and consequential amendments Schedule 7 (council tax: minor and consequential amendments) has effect. 80Council tax revaluations in Wales (1)The Local Government Finance Act 1992 is amended as follows. (2)In section 22B(3) (new Welsh valuation lists to be prepared on earlier of tenth anniversary of compilation of previous list and 1 April in such year as may be specified by the Welsh Ministers) for the words from “the earlier” to the end substitute “1 April in each year specified by order made by the Welsh Ministers.” (3)In section 22B (compilation and maintenance of new valuation lists) after subsection (11) insert— “(12)No order under subsection (3) may be made unless a draft of the statutory instrument containing it has been laid before, and approved by a resolution of, the National Assembly for Wales.” (4)In section 113(1) and (2) (orders and regulations may make differential and incidental etc provision) for “National Assembly for Wales” substitute “Welsh Ministers”. (5)In section 113(2) for “, they or it thinks” substitute “or they think”. (6)In section 113(4) (power of National Assembly for Wales to make orders or regulations is exercisable by statutory instrument) for “National Assembly for Wales” substitute “Welsh Ministers”. CHAPTER 2 Community right to challenge 81Duty to consider expression of interest (1)A relevant authority must consider an expression of interest in accordance with this Chapter if— (a)it is submitted to the authority by a relevant body, and (b)it is made in writing and complies with such other requirements for expressions of interest as the Secretary of State may specify by regulations.This is subject to section 82 (timing of expressions of interest). (2)In this Chapter “relevant authority” means— (a)a county council in England, (b)a district council, (c)a London borough council, or (d)such other person or body carrying on functions of a public nature as the Secretary of State may specify by regulations. (3)The persons or bodies who may be specified by regulations under subsection (2)(d) include a Minister of the Crown or a government department. (4)In this Chapter “expression of interest”, in relation to a relevant authority, means an expression of interest in providing or assisting in providing a relevant service on behalf of the authority. (5)In this Chapter “relevant service”, in relation to a relevant authority, means a service provided by or on behalf of that authority in the exercise of any of its functions in relation to England, other than a service of a kind specified in regulations made by the Secretary of State. (6)In this Chapter “relevant body” means— (a)a voluntary or community body, (b)a body of persons or a trust which is established for charitable purposes only, (c)a parish council, (d)in relation to a relevant authority, two or more employees of that authority, or (e)such other person or body as may be specified by the Secretary of State by regulations. (7)For the purposes of subsection (6) “voluntary body” means a body, other than a public or local authority, the activities of which are not carried on for profit. (8)The fact that a body’s activities generate a surplus does not prevent it from being a voluntary body for the purposes of subsection (6) so long as that surplus is used for the purposes of those activities or invested in the community. (9)For the purposes of subsection (6) “community body” means a body, other than a public or local authority, that carries on activities primarily for the benefit of the community. (10)The Secretary of State may by regulations— (a)amend or repeal any of paragraphs (a) to (d) of subsection (6); (b)amend or repeal any of subsections (7) to (9); (c)make other amendments to this Chapter (including amendments to any power to make regulations) in consequence of provision made under subsection (2)(d) or (6)(e) or paragraph (a) or (b) of this subsection. 82Timing of expressions of interest (1)Subject as follows, a relevant body may submit an expression of interest to a relevant authority at any time. (2)A relevant authority may specify periods during which expressions of interest, or expressions of interest in respect of a particular relevant service, may be submitted to the authority. (3)The relevant authority must publish details of each specification under subsection (2) in such manner as it thinks fit (which must include publication on the authority’s website). (4)The relevant authority may refuse to consider an expression of interest submitted outside a period specified under subsection (2). 83Consideration of expression of interest (1)The relevant authority must— (a)accept the expression of interest, or (b)reject the expression of interest.This is subject to section 84(1) (modification of expression of interest). (2)If the relevant authority accepts the expression of interest it must carry out a procurement exercise relating to the provision on behalf of the authority of the relevant service to which the expression of interest relates. (3)The exercise required by subsection (2) must be such as is appropriate having regard to the value and nature of the contract that may be awarded as a result of the exercise. (4)A relevant authority must specify— (a)the minimum period that will elapse between— (i)the date of the relevant authority’s decision to accept an expression of interest, and (ii)the date on which it will begin the procurement exercise required by subsection (2) as a result of that acceptance, and (b)the maximum period that will elapse between those dates. (5)The relevant authority may specify different periods for different cases. (6)The relevant authority must publish details of a specification under subsection (4) in such manner as it thinks fit (which must include publication on the authority’s website). (7)The relevant authority must comply with a specification under subsection (4). (8)A relevant authority must, in considering an expression of interest, consider whether acceptance of the expression of interest would promote or improve the social, economic or environmental well-being of the authority’s area. (9)A relevant authority must, in carrying out the exercise referred to in subsection (2), consider how it might promote or improve the social, economic or environmental well-being of the authority’s area by means of that exercise. (10)Subsection (9) applies only so far as is consistent with the law applying to the awarding of contracts for the provision on behalf of the authority of the relevant service in question. (11)The relevant authority may reject the expression of interest only on one or more grounds specified by the Secretary of State by regulations. 84Consideration of expression of interest: further provisions (1)A relevant authority that is considering an expression of interest from a relevant body may modify the expression of interest. (2)A relevant authority may exercise the power in subsection (1) only if— (a)the authority thinks that the expression of interest would not otherwise be capable of acceptance, and (b)the relevant body agrees to the modification. (3)A relevant authority must specify the maximum period that will elapse between— (a)the date on which it receives an expression of interest submitted by a relevant body, and (b)the date on which it notifies the relevant body of its decision in respect of the expression of interest. (4)The relevant authority may specify different periods for different cases. (5)The relevant authority must publish details of a specification under subsection (3) in such manner as it thinks fit (which must include publication on the authority’s website). (6)A relevant authority that receives an expression of interest from a relevant body in accordance with this Chapter must notify the relevant body in writing of the period within which it expects to notify the relevant body of its decision in respect of the expression of interest. (7)The relevant authority must give the notification under subsection (6) — (a)where the expression of interest is one to which a specification under section 82(2) relates and is made within a period so specified, within the period of 30 days beginning immediately after the end of the period so specified, or (b)otherwise, within the period of 30 days beginning with the day on which the relevant authority receives the expression of interest. (8)The relevant authority must— (a)notify the relevant body in writing of its decision in respect of the expression of interest within the period specified by it under subsection (3), and (b)if the authority’s decision is to modify or reject the expression of interest, give reasons for that decision in the notification. (9)The relevant authority must publish the notification in such manner as it thinks fit (which must include publication on the authority’s website). (10)A relevant body may withdraw an expression of interest after submitting it to a relevant authority (whether before or after a decision has been made by the authority in respect of the expression of interest). (11)The withdrawal of an expression of interest, or the refusal of a relevant body to agree to modification of an expression of interest, does not prevent the relevant authority from proceeding as described in section 83(2) if the relevant authority thinks that it is appropriate to do so. 85Supplementary (1)The Secretary of State may by regulations make further provision about the consideration by a relevant authority of an expression of interest submitted by a relevant body. (2)A relevant authority must, in exercising its functions under or by virtue of this Chapter, have regard to guidance issued by the Secretary of State. 86Provision of advice and assistance (1)The Secretary of State may do anything that the Secretary of State considers appropriate for the purpose of giving advice or assistance to a relevant body in relation to— (a)the preparation of an expression of interest for submission to a relevant authority and its submission to a relevant authority, (b)participation in a procurement exercise carried out by a relevant authority in response to an expression of interest, or (c)the provision of a relevant service on behalf of a relevant authority following such a procurement exercise. (2)The Secretary of State may do anything that the Secretary of State considers appropriate for the purpose of giving advice or assistance about the operation of this Chapter to a body or person other than a relevant body. (3)The things that the Secretary of State may do under this section include, in particular— (a)the provision of financial assistance to a relevant body; (b)the making of arrangements with a body or person (whether or not a relevant body), including arrangements for things that may be done by the Secretary of State under this section to be done by that body or person; (c)the provision of financial assistance to a body or person other than a relevant body in connection with arrangements under paragraph (b). (4)In this section references to a relevant body include a body that the Secretary of State considers was formed wholly or partly by employees or former employees of the relevant authority for the purposes of, or for purposes including— (a)participating in a procurement exercise carried out by the authority, or (b)providing a relevant service on the authority’s behalf. (5)In this section— (a)the reference to giving advice or assistance includes providing training or education, and (b)any reference to the provision of financial assistance is to the provision of financial assistance by any means (including the making of a loan and the giving of a guarantee or indemnity). CHAPTER 3 Assets of community value List of assets of community value 87List of assets of community value (1)A local authority must maintain a list of land in its area that is land of community value. (2)The list maintained under subsection (1) by a local authority is to be known as its list of assets of community value. (3)Where land is included in a local authority’s list of assets of community value, the entry for that land is to be removed from the list with effect from the end of the period of 5 years beginning with the date of that entry (unless the entry has been removed with effect from some earlier time in accordance with provision in regulations under subsection (5)). (4)The appropriate authority may by order amend subsection (3) for the purpose of substituting, for the period specified in that subsection for the time being, some other period. (5)The appropriate authority may by regulations make further provision in relation to a local authority’s list of assets of community value, including (in particular) provision about— (a)the form in which the list is to be kept; (b)contents of an entry in the list (including matters not to be included in an entry); (c)modification of an entry in the list; (d)removal of an entry from the list; (e)cases where land is to be included in the list and— (i)different parts of the land are in different ownership or occupation, or (ii)there are multiple estates or interests in the land or any part or parts of it; (f)combination of the list with the local authority’s list of land nominated by unsuccessful community nominations. (6)Subject to any provision made by or under this Chapter, it is for a local authority to decide the form and contents of its list of assets of community value. 88Land of community value (1)For the purposes of this Chapter but subject to regulations under subsection (3), a building or other land in a local authority’s area is land of community value if in the opinion of the authority— (a)an actual current use of the building or other land that is not an ancillary use furthers the social wellbeing or social interests of the local community, and (b)it is realistic to think that there can continue to be non-ancillary use of the building or other land which will further (whether or not in the same way) the social wellbeing or social interests of the local community. (2)For the purposes of this Chapter but subject to regulations under subsection (3), a building or other land in a local authority’s area that is not land of community value as a result of subsection (1) is land of community value if in the opinion of the local authority— (a)there is a time in the recent past when an actual use of the building or other land that was not an ancillary use furthered the social wellbeing or interests of the local community, and (b)it is realistic to think that there is a time in the next five years when there could be non-ancillary use of the building or other land that would further (whether or not in the same way as before) the social wellbeing or social interests of the local community. (3)The appropriate authority may by regulations— (a)provide that a building or other land is not land of community value if the building or other land is specified in the regulations or is of a description specified in the regulations; (b)provide that a building or other land in a local authority’s area is not land of community value if the local authority or some other person specified in the regulations considers that the building or other land is of a description specified in the regulations. (4)A description specified under subsection (3) may be framed by reference to such matters as the appropriate authority considers appropriate. (5)In relation to any land, those matters include (in particular)— (a)the owner of any estate or interest in any of the land or in other land; (b)any occupier of any of the land or of other land; (c)the nature of any estate or interest in any of the land or in other land; (d)any use to which any of the land or other land has been, is being or could be put; (e)statutory provisions, or things done under statutory provisions, that have effect (or do not have effect) in relation to— (i)any of the land or other land, or (ii)any of the matters within paragraphs (a) to (d); (f)any price, or value for any purpose, of any of the land or other land. (6)In this section— “legislation” means— (a)an Act, or (b)a Measure or Act of the National Assembly for Wales; “social interests” includes (in particular) each of the following— (a)cultural interests; (b)recreational interests; (c)sporting interests; “statutory provision” means a provision of— (a)legislation, or (b)an instrument made under legislation. 89Procedure for including land in list (1)Land in a local authority’s area which is of community value may be included by a local authority in its list of assets of community value only— (a)in response to a community nomination, or (b)where permitted by regulations made by the appropriate authority. (2)For the purposes of this Chapter “community nomination”, in relation to a local authority, means a nomination which— (a)nominates land in the local authority’s area for inclusion in the local authority’s list of assets of community value, and (b)is made— (i)by a parish council in respect of land in England in the parish council’s area, (ii)by a community council in respect of land in Wales in the community council’s area, or (iii)by a person that is a voluntary or community body with a local connection. (3)Regulations under subsection (1)(b) may (in particular) permit land to be included in a local authority’s list of assets of community value in response to a nomination other than a community nomination. (4)The appropriate authority may by regulations make provision as to— (a)the meaning in subsection (2)(b)(iii) of “voluntary or community body”; (b)the conditions that have to be met for a person to have a local connection for the purposes of subsection (2)(b)(iii); (c)the contents of community nominations; (d)the contents of any other nominations which, as a result of regulations under subsection (1)(b), may give rise to land being included in a local authority’s list of assets of community value. (5)The appropriate authority may by regulations make provision for, or in connection with, the procedure to be followed where a local authority is considering whether land should be included in its list of assets of community value. 90Procedure on community nominations (1)This section applies if a local authority receives a community nomination. (2)The authority must consider the nomination. (3)The authority must accept the nomination if the land nominated— (a)is in the authority’s area, and (b)is of community value. (4)If the authority is required by subsection (3) to accept the nomination, the authority must cause the land to be included in the authority’s list of assets of community value. (5)The nomination is unsuccessful if subsection (3) does not require the authority to accept the nomination. (6)If the nomination is unsuccessful, the authority must give, to the person who made the nomination, the authority’s written reasons for its decision that the land could not be included in its list of assets of community value. 91Notice of inclusion or removal (1)Subsection (2) applies where land— (a)is included in, or (b)removed from,a local authority’s list of assets of community value. (2)The authority must give written notice of the inclusion or removal to the following persons— (a)the owner of the land, (b)the occupier of the land if the occupier is not also the owner, (c)if the land was included in the list in response to a community nomination, the person who made the nomination, and (d)any person specified, or of a description specified, in regulations made by the appropriate authority,but where it appears to the authority that it is not reasonably practicable to give a notice under this subsection to a person to whom it is required to be given, the authority must instead take reasonable alternative steps for the purpose of bringing the notice to the person’s attention. (3)A notice under subsection (2) of inclusion of land in the list must describe the provision made by and under this Chapter, drawing particular attention to— (a)the consequences for the land and its owner of the land’s inclusion in the list, and (b)the right to ask for review under section 92. (4)A notice under subsection (2) of removal of land from the list must state the reasons for the removal. 92Review of decision to include land in list (1)The owner of land included in a local authority’s list of assets of community value may ask the authority to review the authority’s decision to include the land in the list. (2)If a request is made— (a)under subsection (1), and (b)in accordance with the time limits (if any) provided for in regulations under subsection (5),the authority concerned must review its decision. (3)Where under subsection (2) an authority reviews a decision, the authority must notify the person who asked for the review— (a)of the decision on the review, and (b)of the reasons for the decision. (4)If the decision on a review under subsection (2) is that the land concerned should not have been included in the authority’s list of assets of community value— (a)the authority must remove the entry for the land from the list, and (b)where the land was included in the list in response to a community nomination— (i)the nomination becomes unsuccessful, and (ii)the authority must give a written copy of the reasons mentioned in subsection (3)(b) to the person who made the nomination. (5)The appropriate authority may by regulations make provision as to the procedure to be followed in connection with a review under this section. (6)Regulations under subsection (5) may (in particular) include— (a)provision as to time limits; (b)provision requiring the decision on the review to be made by a person of appropriate seniority who was not involved in the original decision; (c)provision as to the circumstances in which the person asking for the review is entitled to an oral hearing, and whether and by whom that person may be represented at the hearing; (d)provision for appeals against the decision on the review. List of land nominated by unsuccessful community nominations 93List of land nominated by unsuccessful community nominations (1)A local authority must maintain a list of land in its area that has been nominated by an unsuccessful community nomination (see sections 90(5) and 92(4)(b)(i)). (2)The list maintained under subsection (1) by a local authority is to be known as its list of land nominated by unsuccessful community nominations. (3)Where land is included in a local authority’s list of land nominated by unsuccessful community nominations, the entry in the list for the land— (a)may (but need not) be removed from the list by the authority after it has been in the list for 5 years, and (b)while it is in the list, is to include the reasons given under section 90(6) or 92(3)(b) for not including the land in the authority’s list of assets of community value. (4)Subject to any provision made by or under this Chapter, it is for a local authority to decide the form and contents of its list of land nominated by unsuccessful community nominations. Provisions common to both lists 94Publication and inspection of lists (1)A local authority must publish— (a)its list of assets of community value, and (b)its list of land nominated by unsuccessful community nominations. (2)A local authority must at a place in its area make available, for free inspection by any person, both— (a)a copy of its list of assets of community value, and (b)a copy of its list of land nominated by unsuccessful community nominations. (3)A local authority must provide a free copy of its list of assets of community value to any person who asks it for a copy, but is not required to provide to any particular person more than one free copy of the same version of the list. (4)A local authority must provide a free copy of its list of land nominated by unsuccessful community nominations to any person who asks it for a copy, but is not required to provide to any particular person more than one free copy of the same version of the list. (5)In this section “free” means free of charge. Moratorium on disposing of listed land 95Moratorium (1)A person who is an owner of land included in a local authority’s list of assets of community value must not enter into a relevant disposal of the land unless each of conditions A to C is met. (2)Condition A is that that particular person has notified the local authority in writing of that person’s wish to enter into a relevant disposal of the land. (3)Condition B is that either— (a)the interim moratorium period has ended without the local authority having received during that period, from any community interest group, a written request (however expressed) for the group to be treated as a potential bidder in relation to the land, or (b)the full moratorium period has ended. (4)Condition C is that the protected period has not ended. (5)Subsection (1) does not apply in relation to a relevant disposal of land— (a)if the disposal is by way of gift (including a gift to trustees of any trusts by way of settlement upon the trusts), (b)if the disposal is by personal representatives of a deceased person in satisfaction of an entitlement under the will, or on the intestacy, of the deceased person, (c)if the disposal is by personal representatives of a deceased person in order to raise money to— (i)pay debts of the deceased person, (ii)pay taxes, (iii)pay costs of administering the deceased person’s estate, or (iv)pay pecuniary legacies or satisfy some other entitlement under the will, or on the intestacy, of the deceased person, (d)if the person, or one of the persons, making the disposal is a member of the family of the person, or one of the persons, to whom the disposal is made, (e)if the disposal is a part-listed disposal of a description specified in regulations made by the appropriate authority, and for this purpose “part-listed disposal” means a disposal of an estate in land— (i)part of which is land included in a local authority’s list of assets of community value, and (ii)part of which is land not included in any local authority’s list of assets of community value, (f)if the disposal is of an estate in land on which a business is carried on and is at the same time, and to the same person, as a disposal of that business as a going concern, (g)if the disposal is occasioned by a person ceasing to be, or becoming, a trustee, (h)if the disposal is by trustees of any trusts— (i)in satisfaction of an entitlement under the trusts, or (ii)in exercise of a power conferred by the trusts to re-settle trust property on other trusts, (i)if the disposal is occasioned by a person ceasing to be, or becoming, a partner in a partnership, or (j)in cases of a description specified in regulations made by the appropriate authority. (6)In subsections (3) and (4)— “community interest group” means a person specified, or of a description specified, in regulations made by the appropriate authority, “the full moratorium period”, in relation to a relevant disposal, means the six months beginning with the date on which the local authority receives notification under subsection (2) in relation to the disposal, “the interim moratorium period”, in relation to a relevant disposal, means the six weeks beginning with the date on which the local authority receives notification under subsection (2) in relation to the disposal, and “the protected period”, in relation to a relevant disposal, means the eighteen months beginning with the date on which the local authority receives notification under subsection (2) in relation to the disposal. (7)For the purposes of subsection (5)(d), a person (“M”) is a member of the family of another person if M is— (a)that other person’s spouse or civil partner, or (b)a lineal descendant of a grandparent of that other person. (8)For the purposes of subsection (7)(b) a relationship by marriage or civil partnership is to be treated as a relationship by blood. (9)For the meaning of “relevant disposal”, and for when a relevant disposal is entered into, see section 96. 96Meaning of “relevant disposal” etc in section 95 (1)This section applies for the purposes of section 95. (2)A disposal of the freehold estate in land is a relevant disposal of the land if it is a disposal with vacant possession. (3)A grant or assignment of a qualifying leasehold estate in land is a relevant disposal of the land if it is a grant or assignment with vacant possession. (4)If a relevant disposal within subsection (2) or (3) is made in pursuance of a binding agreement to make it, the disposal is entered into when the agreement becomes binding. (5)Subject to subsection (4), a relevant disposal within subsection (2) or (3) is entered into when it takes place. (6)In this section “qualifying leasehold estate”, in relation to any land, means an estate by virtue of a lease of the land for a term which, when granted, had at least 25 years to run. (7)The appropriate authority may by order amend this section. 97Publicising receipt of notice under section 95(2) (1)This section applies if a local authority receives notice under section 95(2) in respect of land included in the authority’s list of assets of community value. (2)The authority must cause the entry in the list for the land to reveal— (a)that notice under section 95(2) has been received in respect of the land, (b)the date when the authority received the notice, and (c)the ends of the initial moratorium period, the full moratorium period and the protected period that apply under section 95 as a result of the notice. (3)If the land is included in the list in response to a community nomination, the authority must give written notice, to the person who made the nomination, of the matters mentioned in subsection (2)(a), (b) and (c). (4)The authority must make arrangements for those matters to be publicised in the area where the land is situated. 98Informing owner of request to be treated as bidder (1)Subsection (2) applies if— (a)after a local authority has received notice under section 95(2) in respect of land included in the authority’s list of assets of community value, and (b)before the end of the interim moratorium period that applies under section 95 as a result of the notice,the authority receives from a community interest group a written request (however expressed) for the group to be treated as a potential bidder in relation to the land. (2)The authority must, as soon after receiving the request as is practicable, either pass on the request to the owner of the land or inform the owner of the details of the request. (3)In this section “community interest group” means a person who is a community interest group for the purposes of section 95(3) as a result of regulations made under section 95(6) by the appropriate authority. 99Compensation (1)The appropriate authority may by regulations make provision for the payment of compensation in connection with the operation of this Chapter. (2)Regulations under subsection (1) may (in particular)— (a)provide for any entitlement conferred by the regulations to apply only in cases specified in the regulations; (b)provide for any entitlement conferred by the regulations to be subject to conditions, including conditions as to time limits; (c)make provision about— (i)who is to pay compensation payable under the regulations; (ii)who is to be entitled to compensation under the regulations; (iii)what compensation under the regulations is to be paid in respect of; (iv)the amount, or calculation, of compensation under the regulations; (v)the procedure to be followed in connection with claiming compensation under the regulations; (vi)the review of decisions made under the regulations; (vii)appeals against decisions made under the regulations. Miscellaneous 100Local land charge If land is included in a local authority’s list of assets of community value— (a)inclusion in the list is a local land charge, and (b)that authority is the originating authority for the purposes of the Local Land Charges Act 1975. 101Enforcement (1)The appropriate authority may by regulations make provision— (a)with a view to preventing, or reducing the likelihood of, contraventions of section 95(1); (b)as to the consequences applicable in the event of contraventions of section 95(1). (2)The provision that may be made under subsection (1) includes (in particular)— (a)provision for transactions entered into in breach of section 95(1) to be set aside or to be ineffective; (b)provision about entries on registers relating to land. (3)The provision that may be made under subsection (1) includes provision amending— (a)legislation, or (b)an instrument made under legislation. (4)In subsection (3) “legislation” means— (a)an Act, or (b)a Measure or Act of the National Assembly for Wales. 102Co-operation If different parts of any land are in different local authority areas, the local authorities concerned must co-operate with each other in carrying out functions under this Chapter in relation to the land or any part of it. 103Advice and assistance in relation to land of community value in England (1)The Secretary of State may do anything that the Secretary of State considers appropriate for the purpose of giving advice or assistance— (a)to anyone in relation to doing any of the following— (i)taking steps under or for purposes of provision contained in, or made under, this Chapter so far as applying in relation to England, or (ii)preparing to, or considering or deciding whether to, take steps within sub-paragraph (i), or (b)to a community interest group in relation to doing any of the following— (i)bidding for, or acquiring, land in England that is included in a local authority’s list of assets of community value, (ii)preparing to, or considering or deciding whether or how to, bid for or acquire land within sub-paragraph (i), or (iii)preparing to, or considering or deciding whether or how to, bring land within sub-paragraph (i) into effective use. (2)The things that the Secretary of State may do under this section include, in particular— (a)the provision of financial assistance to any body or other person; (b)the making of arrangements with a body or other person, including arrangements for things that may be done by the Secretary of State under this section to be done by that body or other person. (3)In this section— (a)the reference to giving advice or assistance includes providing training or education, (b)“community interest group” means a person who is a community interest group for the purposes of section 95(3) as a result of regulations made under section 95(6) by the Secretary of State, and (c)the reference to the provision of financial assistance is to the provision of financial assistance by any means (including the making of a loan and the giving of a guarantee or indemnity). 104Advice and assistance in relation to land of community value in Wales (1)The Welsh Ministers may do anything that they consider appropriate for the purpose of giving advice or assistance— (a)to anyone in relation to doing any of the following— (i)taking steps under or for purposes of provision contained in, or made under, this Chapter so far as applying in relation to Wales, or (ii)preparing to, or considering or deciding whether to, take steps within sub-paragraph (i), or (b)to a community interest group in relation to doing any of the following— (i)bidding for, or acquiring, land in Wales that is included in a local authority’s list of assets of community value, (ii)preparing to, or considering or deciding whether or how to, bid for or acquire land within sub-paragraph (i), or (iii)preparing to, or considering or deciding whether or how to, bring land within sub-paragraph (i) into effective use. (2)The things that the Welsh Ministers may do under this section include, in particular— (a)the provision of financial assistance to any body or other person; (b)the making of arrangements with a body or other person, including arrangements for things that may be done by the Welsh Ministers under this section to be done by that body or other person. (3)In this section— (a)the reference to giving advice or assistance includes providing training or education, (b)“community interest group” means a person who is a community interest group for the purposes of section 95(3) as a result of regulations made under section 95(6) by the Welsh Ministers, and (c)the reference to the provision of financial assistance is to the provision of financial assistance by any means (including the making of a loan and the giving of a guarantee or indemnity). 105Crown application This Chapter binds the Crown. Interpretation of Chapter 106Meaning of “local authority” (1)In this Chapter “local authority” in relation to England means— (a)a district council, (b)a county council for an area in England for which there are no district councils, (c)a London borough council, (d)the Common Council of the City of London, or (e)the Council of the Isles of Scilly. (2)The Secretary of State may by order amend this section for the purpose of changing the meaning in this Chapter of “local authority” in relation to England. (3)In this Chapter “local authority” in relation to Wales means— (a)a county council in Wales, or (b)a county borough council. (4)The Welsh Ministers may by order amend this section for the purpose of changing the meaning in this Chapter of “local authority” in relation to Wales. 107Meaning of “owner” (1)In this Chapter “owner”, in relation to land, is to be read as follows. (2)The owner of any land is the person in whom the freehold estate in the land is vested, but not if there is a qualifying leasehold estate in the land. (3)If there is just one qualifying leasehold estate in any land, the owner of the land is the person in whom that estate is vested. (4)If there are two or more qualifying leasehold estates in the same land, the owner of the land is the person in whom is vested the qualifying leasehold estate that is more or most distant (in terms of the number of intervening leasehold estates) from the freehold estate. (5)In this section “qualifying leasehold estate”, in relation to any land, means an estate by virtue of a lease of the land for a term which, when granted, had at least 25 years to run. (6)The appropriate authority may by order amend this section— (a)for the purpose of changing the definition of “owner” for the time being given by this section; (b)for the purpose of defining “owner” for the purposes of this Chapter in a case where, for the time being, this section does not define that expression. 108Interpretation of Chapter: general (1)In this Chapter— “appropriate authority”— (a)in relation to England means the Secretary of State, and (b)in relation to Wales means the Welsh Ministers; “building” includes part of a building; “community nomination” has the meaning given by section 89(2); “land” includes— (a)part of a building, (b)part of any other structure, and (c)mines and minerals, whether or not held with the surface; “land of community value” is to be read in accordance with section 88; “local authority” is to be read in accordance with section 106; “owner”, in relation to any land, is to read in accordance with section 107; “unsuccessful”, in relation to a community nomination, has the meaning given by sections 90(5) and 92(4)(b)(i). (2)For the meaning of “list of assets of community value” see section 87(2). (3)For the meaning of “list of land nominated by unsuccessful community nominations” see section 93(2). PART 6 Planning CHAPTER 1 Plans and strategies 109Abolition of regional strategies (1)The following provisions are repealed— (a)sections 70(5), 82(1) and (2) and 83 of the Local Democracy, Economic Development and Construction Act 2009 (interpretation and effect of regional strategies), and (b)the remaining provisions of Part 5 of that Act (regional strategy). (2)Subsection (1)(b) does not apply to— (a)section 85(1) (consequential provision) of that Act, (b)Schedule 5 to that Act (regional strategy: amendments) (but see Part 16 of Schedule 25 to this Act), or (c)Part 4 of Schedule 7 to that Act (regional strategy: repeals). (3)The Secretary of State may by order revoke the whole or any part of a regional strategy under Part 5 of that Act. (4)An order under subsection (3) may, in particular, revoke all of the regional strategies (or all of the remaining regional strategies) under Part 5 of that Act. (5)The Secretary of State may by order revoke the whole or any part of a direction under paragraph 1(3) of Schedule 8 to the Planning and Compulsory Purchase Act 2004 (directions preserving development plan policies) if and so far as it relates to a policy contained in a structure plan. (6)An order under subsection (5) may, in particular, revoke all directions (or all remaining directions) under paragraph 1(3) of that Schedule so far as they relate to policies contained in structure plans. (7)Schedule 8 (which contains amendments that are consequential on this section) has effect. 110Duty to co-operate in relation to planning of sustainable development (1)In Part 2 of the Planning and Compulsory Purchase Act 2004 (local development) after section 33 insert— “33ADuty to co-operate in relation to planning of sustainable development (1)Each person who is— (a)a local planning authority, (b)a county council in England that is not a local planning authority, or (c)a body, or other person, that is prescribed or of a prescribed description,must co-operate with every other person who is within paragraph (a), (b) or (c) or subsection (9) in maximising the effectiveness with which activities within subsection (3) are undertaken. (2)In particular, the duty imposed on a person by subsection (1) requires the person— (a)to engage constructively, actively and on an ongoing basis in any process by means of which activities within subsection (3) are undertaken, and (b)to have regard to activities of a person within subsection (9) so far as they are relevant to activities within subsection (3). (3)The activities within this subsection are— (a)the preparation of development plan documents, (b)the preparation of other local development documents, (c)the preparation of marine plans under the Marine and Coastal Access Act 2009 for the English inshore region, the English offshore region or any part of either of those regions, (d)activities that can reasonably be considered to prepare the way for activities within any of paragraphs (a) to (c) that are, or could be, contemplated, and (e)activities that support activities within any of paragraphs (a) to (c),so far as relating to a strategic matter. (4)For the purposes of subsection (3), each of the following is a “strategic matter”— (a)sustainable development or use of land that has or would have a significant impact on at least two planning areas, including (in particular) sustainable development or use of land for or in connection with infrastructure that is strategic and has or would have a significant impact on at least two planning areas, and (b)sustainable development or use of land in a two-tier area if the development or use— (i)is a county matter, or (ii)has or would have a significant impact on a county matter. (5)In subsection (4)— “county matter” has the meaning given by paragraph 1 of Schedule 1 to the principal Act (ignoring sub-paragraph 1(1)(i)), “planning area” means— (a)the area of— (i)a district council (including a metropolitan district council), (ii)a London borough council, or (iii)a county council in England for an area for which there is no district council, but only so far as that area is neither in a National Park nor in the Broads, (b)a National Park, (c)the Broads, (d)the English inshore region, or (e)the English offshore region, and “two-tier area” means an area— (a)for which there is a county council and a district council, but (b)which is not in a National Park. (6)The engagement required of a person by subsection (2)(a) includes, in particular— (a)considering whether to consult on and prepare, and enter into and publish, agreements on joint approaches to the undertaking of activities within subsection (3), and (b)if the person is a local planning authority, considering whether to agree under section 28 to prepare joint local development documents. (7)A person subject to the duty under subsection (1) must have regard to any guidance given by the Secretary of State about how the duty is to be complied with. (8)A person, or description of persons, may be prescribed for the purposes of subsection (1)(c) only if the person, or persons of that description, exercise functions for the purposes of an enactment. (9)A person is within this subsection if the person is a body, or other person, that is prescribed or of a prescribed description. (10)In this section— “the English inshore region” and “the English offshore region” have the same meaning as in the Marine and Coastal Access Act 2009, and “land” includes the waters within those regions and the bed and subsoil of those waters.” (2)In section 16 of the Planning and Compulsory Purchase Act 2004 (applying Part 2 for purposes of a county council’s minerals and waste development scheme) after subsection (4) insert— “(5)Also, subsection (3)(b) does not apply to section 33A(1)(a) and (b).” (3)In section 20(5) of the Planning and Compulsory Purchase Act 2004 (development plan documents: purpose of independent examination) after paragraph (b) insert “; and (c)whether the local planning authority complied with any duty imposed on the authority by section 33A in relation to its preparation.” 111Local development schemes (1)Section 15 of the Planning and Compulsory Purchase Act 2004 (preparation, revision and promulgation of local development schemes) is amended as follows. (2)Omit subsection (3) (requirements as to preparation of schemes). (3)In subsection (4) (Secretary of State or Mayor of London may direct that scheme be amended) after “thinks appropriate” insert “for the purpose of ensuring effective coverage of the authority’s area by the development plan documents (taken as a whole) for that area”. (4)In subsection (6A)(b) (provision about directions given by Mayor of London under subsection (4)) for “the scheme is not to be brought into effect” substitute “effect is not to be given to the direction”. (5)For subsection (7) (regulations about publicity, inspection and bringing schemes into effect) substitute— “(7)To bring the scheme into effect, the local planning authority must resolve that the scheme is to have effect and in the resolution specify the date from which the scheme is to have effect.” (6)After subsection (8A) insert— “(8AA)A direction may be given under subsection (8)(b) only if the person giving the direction thinks that revision of the scheme is necessary for the purpose of ensuring effective coverage of the authority’s area by the development plan documents (taken as a whole) for that area.” (7)After subsection (9) insert— “(9A)The local planning authority must make the following available to the public— (a)the up-to-date text of the scheme, (b)a copy of any amendments made to the scheme, and (c)up-to-date information showing the state of the authority’s compliance (or non-compliance) with the timetable mentioned in subsection (2)(f).” 112Adoption and withdrawal of development plan documents (1)The Planning and Compulsory Purchase Act 2004 is amended as follows. (2)For section 20(7) (independent examiner must make recommendations with reasons) substitute— “(7)Where the person appointed to carry out the examination— (a)has carried it out, and (b)considers that, in all the circumstances, it would be reasonable to conclude— (i)that the document satisfies the requirements mentioned in subsection (5)(a) and is sound, and (ii)that the local planning authority complied with any duty imposed on the authority by section 33A in relation to the document’s preparation,the person must recommend that the document is adopted and give reasons for the recommendation. (7A)Where the person appointed to carry out the examination— (a)has carried it out, and (b)is not required by subsection (7) to recommend that the document is adopted,the person must recommend non-adoption of the document and give reasons for the recommendation. (7B)Subsection (7C) applies where the person appointed to carry out the examination— (a)does not consider that, in all the circumstances, it would be reasonable to conclude that the document satisfies the requirements mentioned in subsection (5)(a) and is sound, but (b)does consider that, in all the circumstances, it would be reasonable to conclude that the local planning authority complied with any duty imposed on the authority by section 33A in relation to the document’s preparation. (7C)If asked to do so by the local planning authority, the person appointed to carry out the examination must recommend modifications of the document that would make it one that— (a)satisfies the requirements mentioned in subsection (5)(a), and (b)is sound.” (3)For section 23(2) and (3) (adoption of development plan documents, whether as prepared or with modifications, must be in accordance with independent examiner’s recommendations) substitute— “(2)If the person appointed to carry out the independent examination of a development plan document recommends that it is adopted, the authority may adopt the document— (a)as it is, or (b)with modifications that (taken together) do not materially affect the policies set out in it. (2A)Subsection (3) applies if the person appointed to carry out the independent examination of a development plan document— (a)recommends non-adoption, and (b)under section 20(7C) recommends modifications (“the main modifications”). (3)The authority may adopt the document— (a)with the main modifications, or (b)with the main modifications and additional modifications if the additional modifications (taken together) do not materially affect the policies that would be set out in the document if it was adopted with the main modifications but no other modifications.” (4)Omit section 22(2) (development plan document not to be withdrawn once submitted for independent examination unless examiner or Secretary of State directs that it be withdrawn). (5)In section 21 (intervention by Secretary of State) after subsection (9) insert— “(9A)The Secretary of State may at any time— (a)after a development plan document has been submitted for independent examination under section 20, but (b)before it is adopted under section 23,direct the local planning authority to withdraw the document.” (6)The amendments made by subsections (2) and (3) apply in relation to all adoptions of development plan documents that take place after the coming into force of those subsections, including an adoption where steps in relation to the document have taken place before then. 113Local development: monitoring reports (1)Section 35 of the Planning and Compulsory Purchase Act 2004 (local planning authority must make annual report to Secretary of State) is amended as follows. (2)Omit subsection (1) (duty to make annual report). (3)In subsection (2) (contents of annual report) for “The annual report must contain” substitute “Every local planning authority must prepare reports containing”. (4)In subsection (3) (rules about annual reports) for the words from the beginning to the end of paragraph (b) substitute—“A report under subsection (2) must— (a)be in respect of a period— (i)which the authority considers appropriate in the interests of transparency, (ii)which begins with the end of the period covered by the authority’s most recent report under subsection (2), and (iii)which is not longer than 12 months or such shorter period as is prescribed;”. (5)After subsection (3) insert— “(4)The authority must make the authority’s reports under this section available to the public.” (6)In the heading for “Annual” substitute “Authorities’” and for “report” substitute “reports”. CHAPTER 2 Community Infrastructure Levy 114Community Infrastructure Levy: approval of charging schedules (1)The Planning Act 2008 is amended as follows. (2)In section 211 (amount of levy) after subsection (7) insert— “(7A)A charging authority must use appropriate available evidence to inform the charging authority’s preparation of a charging schedule. (7B)CIL regulations may make provision about the application of subsection (7A) including, in particular— (a)provision as to evidence that is to be taken to be appropriate, (b)provision as to evidence that is to be taken to be not appropriate, (c)provision as to evidence that is to be taken to be available, (d)provision as to evidence that is to be taken to be not available, (e)provision as to how evidence is, and as to how evidence is not, to be used, (f)provision as to evidence that is, and as to evidence that is not, to be used, (g)provision as to evidence that may, and as to evidence that need not, be used, and (h)provision as to how the use of evidence is to inform the preparation of a charging schedule.” (3)For section 212(4) to (7) (draft must be accompanied by declaration of compliance with requirements, and examiner must consider the requirements and make recommendations with reasons) substitute— “(4)In this section and sections 212A and 213 “the drafting requirements” means the requirements of this Part and CIL regulations (including the requirements to have regard to the matters listed in section 211(2) and (4)), so far as relevant to the drafting of the schedule. (7)The examiner must consider whether the drafting requirements have been complied with and— (a)make recommendations in accordance with section 212A, and (b)give reasons for the recommendations.” (4)After section 212 insert— “212ACharging schedule: examiner’s recommendations (1)This section applies in relation to the examination, under section 212, of a draft charging schedule. (2)If the examiner considers— (a)that there is any respect in which the drafting requirements have not been complied with, and (b)that the non-compliance with the drafting requirements cannot be remedied by the making of modifications to the draft,the examiner must recommend that the draft be rejected. (3)Subsection (4) applies if the examiner considers— (a)that there is any respect in which the drafting requirements have not been complied with, and (b)that the non-compliance with the drafting requirements could be remedied by the making of modifications to the draft. (4)The examiner must— (a)specify the respects in which the drafting requirements have not been complied with, (b)recommend modifications that the examiner considers sufficient and necessary to remedy that non-compliance, and (c)recommend that the draft be approved with— (i)those modifications, or (ii)other modifications sufficient and necessary to remedy that non-compliance. (5)Subject to subsections (2) to (4), the examiner must recommend that the draft be approved. (6)If the examiner makes recommendations under subsection (4), the examiner may recommend other modifications with which the draft should be approved in the event that it is approved. (7)If the examiner makes recommendations under subsection (5), the examiner may recommend modifications with which the draft should be approved in the event that it is approved.” (5)For section 213(1) (charging authority has to follow examiner’s recommendations when approving charging schedule) substitute— “(1)A charging authority may approve a charging schedule only if— (a)the examiner makes recommendations under section 212A(4) or (5), and (b)the charging authority has had regard to those recommendations and the examiner’s reasons for them. (1A)Accordingly, a charging authority may not approve a charging schedule if, under section 212A(2), the examiner recommends rejection. (1B)If the examiner makes recommendations under section 212A(4), the charging authority may approve the charging schedule only if it does so with modifications that are sufficient and necessary to remedy the non-compliance specified under section 212A(4)(a) (although those modifications need not be the ones recommended under section 212A(4)(b)). (1C)If a charging authority approves a charging schedule, it may do so with all or none, or some one or more, of the modifications (if any) recommended under section 212A(6) or (7). (1D)The modifications with which a charging schedule may be approved include only— (a)modifications required by subsection (1B), and (b)modifications allowed by subsection (1C).” (6)In section 213 (approval of charging schedules) after subsection (3) insert— “(3A)Subsection (3B) applies if— (a)the examiner makes recommendations under section 212A(4), and (b)the charging schedule is approved by the charging authority. (3B)The charging authority must publish a report setting out how the charging schedule as approved remedies the non-compliance specified under section 212A(4)(a). (3C)CIL regulations may make provision about the form or contents of a report under subsection (3B).” (7)In section 213 after subsection (4) insert— “(5)In this section “examiner” means examiner under section 212.” (8)The amendments made by this section do not apply in relation to cases where an examiner submits recommendations to a charging authority before the coming into force of this section, but subject to that the cases in relation to which the amendments apply include a case in which steps in relation to the charging schedule have been taken before then. 115Use of Community Infrastructure Levy (1)The Planning Act 2008 is amended as follows. (2)In section 205(2) (requirement to aim to ensure that overall purpose of the levy is to ensure that costs of providing infrastructure to support development of an area can be funded by owners or developers of land)— (a)for “providing infrastructure to support” substitute “supporting”, and (b)after “land” insert “in a way that does not make development of the area economically unviable”. (3)In the Table in section 205(3) (which describes the provisions of the Part) for “Section 216” substitute “Sections 216 to 216B”. (4)In section 211(4) (particular provision that may be included in regulations about setting rates, or other criteria, by reference to which the amount of levy chargeable is to be determined) after paragraph (a) insert— “(aa)to have regard, to the extent and in the manner specified by the regulations, to actual and expected costs of anything other than infrastructure that is concerned with addressing demands that development places on an area (whether by reference to lists prepared by virtue of section 216(5)(a) or otherwise); (ab)to have regard, to the extent and in the manner specified by the regulations, to other actual and expected sources of funding for anything other than infrastructure that is concerned with addressing demands that development places on an area;”. (5)In section 216 (application of levy)— (a)in subsection (1) (levy to be used to fund infrastructure, or pay compensation under section 219)— (i)for “section” substitute “sections 216A(1), 216B(2) and”, and (ii)for “funding infrastructure” substitute “supporting development by funding the provision, improvement, replacement, operation or maintenance of infrastructure”, (b)in subsection (2) (meaning of “infrastructure” in subsection (1)) for “subsection (1)” substitute “this section (except subsection (3)) and sections 216A(2) and 216B(2)”, (c)in subsection (4)(a) (power to specify facilities that are to be, or not to be, funded) for “that are to be, or not to” substitute “whose provision, improvement or replacement may or is to be, or may not”, (d)in subsection (4) (matters that may be specified by regulations) after paragraph (a) insert— “(aa)maintenance activities and operational activities (including operational activities of a promotional kind) in connection with infrastructure that may or are to be, or may not be, funded by CIL, (ab)things within section 216A(2)(b) that may or are to be, or may not be, funded by CIL passed to a person in discharge of a duty under section 216A(1), (ac)things within section 216B(2)(b) that may or are to be, or may not be, funded by CIL to which provision under section 216B(2) relates,”, (e)in subsection (4)(b) (power to specify criteria for determining areas in relation to which infrastructure may be funded) for “in relation to which infrastructure may be funded” substitute “that may benefit from funding”, (f)in subsection (5)(a) (power to require authorities to list projects that are to be, or may be, funded) for “projects that are” substitute “what is”, (g)in subsection (5)(c) (power to make provision about funding projects not on list) for “projects” substitute “anything”, (h)in subsection (6)(b) (regulations about funding may permit levy to be reserved for expenditure on future projects) for “on future projects” substitute “in the future”, (i)in subsection (6)(c) (regulations may permit funding of administrative expenses in connection with infrastructure) after “infrastructure” insert “or anything within section 216A(2)(b) or 216B(2)(b)”, and (j)in subsection (6)(e) (regulations may make provision for the use of funding where the projects to be funded no longer require funding)— (i)for “the projects” substitute “anything”, and (ii)for “require” substitute “requires”. (6)After section 216 insert— “216ADuty to pass receipts to other persons (1)CIL regulations may require that CIL received in respect of development of land in an area is to be passed by the charging authority that charged the CIL to a person other than that authority. (2)CIL regulations must contain provision to secure that money passed to a person in discharge of a duty under subsection (1) is used to support the development of the area to which the duty relates, or of any part of that area, by funding— (a)the provision, improvement, replacement, operation or maintenance of infrastructure, or (b)anything else that is concerned with addressing demands that development places on an area. (3)A duty under subsection (1) may relate to— (a)the whole of a charging authority’s area or the whole of the combined area of two or more charging authorities, or (b)part only of such an area or combined area. (4)CIL regulations may make provision about the persons to whom CIL may or must, or may not, be passed in discharge of a duty under subsection (1). (5)A duty under subsection (1) may relate— (a)to all CIL (if any) received in respect of the area to which the duty relates, or (b)such part of that CIL as is specified in, or determined under or in accordance with, CIL regulations. (6)CIL regulations may make provision in connection with the timing of payments in discharge of a duty under subsection (1). (7)CIL regulations may, in relation to CIL passed to a person in discharge of a duty under subsection (1), make provision about— (a)accounting for the CIL, (b)monitoring its use, (c)reporting on its use, (d)responsibilities of charging authorities for things done by the person in connection with the CIL, (e)recovery of the CIL, and any income or profits accruing in respect of it or from its application, in cases where— (i)anything to be funded by it has not been provided, or (ii)it has been misapplied,including recovery of sums or other assets representing it or any such income or profits, and (f)use of anything recovered in cases where— (i)anything to be funded by the CIL has not been provided, or (ii)the CIL has been misapplied. (8)This section does not limit section 216(7)(f). 216BUse of CIL in an area to which section 216A(1) duty does not relate (1)Subsection (2) applies where— (a)there is an area to which a particular duty under section 216A(1) relates, and (b)there is also an area to which that duty does not relate (“the uncovered area”). (2)CIL regulations may provide that the charging authority that charges CIL received in respect of development of land in the uncovered area may apply the CIL, or cause it to be applied, to— (a)support development by funding the provision, improvement, replacement, operation or maintenance of infrastructure, or (b)support development of the uncovered area, or of any part of that area, by funding anything else that is concerned with addressing demands that development places on an area. (3)Provision under subsection (2) may relate to the whole, or part only, of the uncovered area. (4)Provision under subsection (2) may relate— (a)to all CIL (if any) received in respect of the area to which the provision relates, or (b)such part of that CIL as is specified in, or determined under or in accordance with, CIL regulations.” CHAPTER 3 Neighbourhood planning 116Neighbourhood planning (1)Schedule 9 (which makes provision about neighbourhood development orders and neighbourhood development plans) has effect. (2)After Schedule 4A to the Town and Country Planning Act 1990 insert the Schedule 4B set out in Schedule 10 to this Act. (3)After the inserted Schedule 4B to that Act insert the Schedule 4C set out in Schedule 11 to this Act. 117Charges for meeting costs relating to neighbourhood planning (1)The Secretary of State may with the consent of the Treasury make regulations providing for the imposition of charges for the purpose of meeting expenses incurred (or expected to be incurred) by local planning authorities in, or in connection with, the exercise of their neighbourhood planning functions. (2)A local planning authority’s “neighbourhood planning functions” are any of their functions exercisable under any provision made by or under— (a)any of sections 61E to 61Q of, or Schedule 4B or 4C to, the Town and Country Planning Act 1990 (neighbourhood development orders), (b)any of sections 38A to 38C of the Planning and Compulsory Purchase Act 2004 (neighbourhood development plans), or (c)this section. (3)The regulations must secure— (a)that the charges are payable in relation to development for which planning permission is granted by a neighbourhood development order made under section 61E of the Town and Country Planning Act 1990, (b)that the charges become payable when the development is commenced (determined in accordance with the regulations), and (c)that the charges are payable to local planning authorities. (4)The regulations may authorise local planning authorities to set the amount of charges imposed by the regulations; and, if so, the regulations may— (a)provide for the charges not to be payable at any time unless at that time a document (a “charging document”) has been published by the authority setting out the amounts chargeable under the regulations in relation to development in their area, (b)make provision about the approval and publication of a charging document, (c)prescribe matters to which the authorities must have regard in setting the charges, (d)require the authorities, in setting the charges, to disregard such expenditure expected to be incurred as mentioned in subsection (1) as falls within a description prescribed by the regulations, (e)authorise the authorities to set different charges for different cases, circumstances or areas (either generally or only to the extent specified in the regulations), and (f)authorise the authorities to make exceptions (either generally or only to the extent specified in the regulations). (5)The regulations must make provision about liability to pay a charge imposed by the regulations. (6)The regulations may make provision— (a)enabling any person to assume (in accordance with any procedural provision made by the regulations) the liability to pay a charge imposed by the regulations before it becomes payable, (b)about assumption of partial liability, (c)about the withdrawal of assumption of liability, (d)about the cancellation by a local planning authority of assumption of liability, (e)for the owner or developer of land to be liable to pay the charge in cases prescribed by the regulations, (f)about joint liability (with or without several liability), (g)about liability of partnerships, (h)about apportionment of liability, including provision for referral to a specified body or other person for determination and provision for appeals, and (i)about transfer of liability (whether before or after the charge becomes due and whether or not liability has been assumed). (7)In subsection (6)(e)— (a)“owner” of land means a person who owns an interest in land, and (b)“developer” means a person who is wholly or partly responsible for carrying out a development. (8)The provision for appeals that may be made as a result of subsection (6)(h) includes provision about— (a)the period within which the right of appeal may be exercised, (b)the procedure on appeals, and (c)the payment of fees, and award of costs, in relation to appeals (including provision requiring local planning authorities to bear expenses incurred in connection with appeals). 118Regulations under section 117: collection and enforcement (1)Regulations under section 117 must include provision about the collection of charges imposed by the regulations. (2)The regulations may make provision— (a)for payment on account or by instalments, (b)about repayment (with or without interest) in cases of overpayment, and (c)about the source of payments in respect of a Crown interest or Duchy interest (within the meaning of section 227(3) or (4) of the Planning Act 2008). (3)Regulations under section 117 must include provision about enforcement of charges imposed by the regulations; and that provision must include provision— (a)for a charge (or other amount payable under the regulations) to be treated as a civil debt due to a local planning authority, and (b)for the debt to be recoverable summarily. (4)The regulations may make provision— (a)about the consequences of failure to assume liability, to give a notice or to comply with another procedure under the regulations, (b)for the payment of interest (at a rate specified in, or determined in accordance with, the regulations), (c)for the imposition of a penalty or surcharge (of an amount specified in, or determined in accordance with, the regulations), (d)replicating or applying (with or without modifications) any provision made by any of sections 324 to 325A of the Town and Country Planning Act 1990 (rights of entry), and (e)for enforcement in the case of death or insolvency of a person liable for the charge. 119Regulations under section 117: supplementary (1)Regulations under section 117 may make provision about procedures to be followed in connection with charges imposed by the regulations. (2)The regulations may make provision about— (a)procedures to be followed by a local planning authority proposing to start or stop imposing a charge, (b)procedures to be followed by a local planning authority in relation to the imposition of a charge, (c)the arrangements of a local planning authority for the making of any decision prescribed by the regulations, (d)consultation, (e)the publication or other treatment of reports, (f)timing and methods of publication, (g)making documents available for inspection, (h)providing copies of documents (with or without charge), (i)the form and content of documents, (j)giving notice, (k)serving notices or other documents, and (l)procedures to be followed in connection with actual or potential liability for a charge. (3)Provision made by the regulations as a result of subsection (2)(c) is to have effect despite provision made by any enactment as to the arrangements of a local planning authority for the exercise of their functions (such as section 101 of the Local Government Act 1972 or section 13 of the Local Government Act 2000). (4)Regulations under section 117 may make provision binding the Crown. (5)Regulations under section 117 may make— (a)provision applying any enactment (with or without modifications), and (b)provision for exceptions. (6)A local planning authority must have regard to any guidance issued by the Secretary of State in the exercise of any of their functions under regulations under section 117. (7)For the purposes of sections 117 and 118 and this section “local planning authority” means an authority that have made or have power to make— (a)a neighbourhood development order under section 61E of the Town and Country Planning Act 1990, or (b)a neighbourhood development plan under section 38A of the Planning and Compulsory Purchase Act 2004. (8)Nothing in section 117, 118 or this section that authorises the inclusion of any particular kind of provision in regulations under section 117 is to be read as restricting the generality of the provision that may be included in the regulations. 120Financial assistance in relation to neighbourhood planning (1)The Secretary of State may do anything that the Secretary of State considers appropriate— (a)for the purpose of publicising or promoting the making of neighbourhood development orders or neighbourhood development plans and the benefits expected to arise from their making, or (b)for the purpose of giving advice or assistance to anyone in relation to the making of proposals for such orders or plans or the doing of anything else for the purposes of, or in connection with, such proposals or such orders or plans. (2)The things that the Secretary of State may do under this section include, in particular— (a)the provision of financial assistance (or the making of arrangements for its provision) to any body or other person, and (b)the making of agreements or other arrangements with any body or other person (under which payments may be made to the person). (3)In this section— (a)the reference to giving advice or assistance includes providing training or education, (b)any reference to the provision of financial assistance is to the provision of financial assistance by any means (including the making of a loan and the giving of a guarantee or indemnity), (c)any reference to a neighbourhood development order is to a neighbourhood development order under section 61E of the Town and Country Planning Act 1990, and (d)any reference to a neighbourhood development plan is to a neighbourhood development plan under section 38A of the Planning and Compulsory Purchase Act 2004. 121Consequential amendments Schedule 12 (neighbourhood planning: consequential amendments) has effect. CHAPTER 4 Consultation 122Consultation before applying for planning permission (1)In the Town and Country Planning Act 1990, before section 62 (and before the italic heading which precedes that section) insert— “Consultation before applying for planning permission 61WRequirement to carry out pre-application consultation (1)Where— (a)a person proposes to make an application for planning permission for the development of any land in England, and (b)the proposed development is of a description specified in a development order,the person must carry out consultation on the proposed application in accordance with subsections (2) and (3). (2)The person must publicise the proposed application in such manner as the person reasonably considers is likely to bring the proposed application to the attention of a majority of the persons who live at, or otherwise occupy, premises in the vicinity of the land. (3)The person must consult each specified person about the proposed application. (4)Publicity under subsection (2) must— (a)set out how the person (“P”) may be contacted by persons wishing to comment on, or collaborate with P on the design of, the proposed development, and (b)give such information about the proposed timetable for the consultation as is sufficient to ensure that persons wishing to comment on the proposed development may do so in good time. (5)In subsection (3) “specified person” means a person specified in, or of a description specified in, a development order. (6)Subsection (1) does not apply— (a)if the proposed application is an application under section 293A, or (b)in cases specified in a development order. (7)A person subject to the duty imposed by subsection (1) must, in complying with that subsection, have regard to the advice (if any) given by the local planning authority about local good practice. 61XDuty to take account of responses to consultation (1)Subsection (2) applies where a person— (a)has been required by section 61W(1) to carry out consultation on a proposed application for planning permission, and (b)proposes to go ahead with making an application for planning permission (whether or not in the same terms as the proposed application). (2)The person must, when deciding whether the application that the person is actually to make should be in the same terms as the proposed application, have regard to any responses to the consultation that the person has received. 61YPower to make supplementary provision (1)A development order may make provision about, or in connection with, consultation which section 61W(1) requires a person to carry out on a proposed application for planning permission. (2)The provision that may be made under subsection (1) includes (in particular)— (a)provision about, or in connection with, publicising the proposed application; (b)provision about, or in connection with, the ways of responding to the publicity; (c)provision about, or in connection with, consultation under section 61W(3); (d)provision about, or in connection with, collaboration between the person and others on the design of the proposed development; (e)provision as to the timetable (including deadlines) for— (i)compliance with section 61W(1), (ii)responding to publicity under section 61W(2), or (iii)responding to consultation under section 61W(3); (f)provision for the person to prepare a statement setting out how the person proposes to comply with section 61W(1); (g)provision for the person to comply with section 61W(1) in accordance with a statement required by provision under paragraph (f). (3)Provision under subsection (1) may be different for different cases.” (2)In section 62 of the Town and Country Planning Act 1990 (applications for planning permission) after subsection (6) insert— “(7)In subsection (8) “a relevant application” means the application for planning permission in a case where a person— (a)has been required by section 61W(1) to carry out consultation on a proposed application for planning permission, and (b)is going ahead with making an application for planning permission (whether or not in the same terms as the proposed application). (8)A development order must require that a relevant application be accompanied by particulars of— (a)how the person complied with section 61W(1), (b)any responses to the consultation that were received by the person, and (c)the account taken of those responses.” (3)The amendments made by subsections (1) and (2) cease to have effect at the end of 7 years beginning with the day on which the inserted section 61W(1) comes fully into force, but this is subject to subsection (4). (4)The Secretary of State may by order provide that the amendments are, instead of ceasing to have effect at the time they would otherwise cease to have effect, to cease to have effect at the end of a period of not more than 7 years from that time. CHAPTER 5 Enforcement 123Retrospective planning permission (1)The Town and Country Planning Act 1990 is amended as follows. (2)After section 70B insert— “70CPower to decline to determine retrospective application (1)A local planning authority in England may decline to determine an application for planning permission for the development of any land if granting planning permission for the development would involve granting, whether in relation to the whole or any part of the land to which a pre-existing enforcement notice relates, planning permission in respect of the whole or any part of the matters specified in the enforcement notice as constituting a breach of planning control. (2)For the purposes of the operation of this section in relation to any particular application for planning permission, a “pre-existing enforcement notice” is an enforcement notice issued before the application was received by the local planning authority.” (3)In section 78(2)(aa) (which refers to an authority not having given notice that it has exercised its power under section 70A or 70B to decline to determine an application) after “or 70B” insert “or 70C”. (4)In section 174 (appeal against enforcement notice) after subsection (2) insert— “(2A)An appeal may not be brought on the ground specified in subsection (2)(a) if— (a)the land to which the enforcement notice relates is in England, and (b)the enforcement notice was issued at a time— (i)after the making of a related application for planning permission, but (ii)before the end of the period applicable under section 78(2) in the case of that application. (2B)An application for planning permission for the development of any land is, for the purposes of subsection (2A), related to an enforcement notice if granting planning permission for the development would involve granting planning permission in respect of the matters specified in the enforcement notice as constituting a breach of planning control.” (5)In section 177 (grant or modification of planning permission on appeals against enforcement notice) after subsection (1B) insert— “(1C)If the land to which the enforcement notice relates is in England, subsection (1)(a) applies only if the statement under section 174(4) specifies the ground mentioned in section 174(2)(a).” (6)In section 177(5) (deemed application for planning permission where appeal brought against enforcement notice) for the words from the beginning to “the appellant” substitute—“Where an appeal against an enforcement notice is brought under section 174 and— (a)the land to which the enforcement notice relates is in Wales, or (b)that land is in England and the statement under section 174(4) specifies the ground mentioned in section 174(2)(a),the appellant”. 124Time limits for enforcing concealed breaches of planning control (1)In the Town and Country Planning Act 1990 after section 171B insert— “171BATime limits in cases involving concealment (1)Where it appears to the local planning authority that there may have been a breach of planning control in respect of any land in England, the authority may apply to a magistrates’ court for an order under this subsection (a “planning enforcement order”) in relation to that apparent breach of planning control. (2)If a magistrates’ court makes a planning enforcement order in relation to an apparent breach of planning control, the local planning authority may take enforcement action in respect of— (a)the apparent breach, or (b)any of the matters constituting the apparent breach,at any time in the enforcement year. (3)“The enforcement year” for a planning enforcement order is the year that begins at the end of 22 days beginning with the day on which the court’s decision to make the order is given, but this is subject to subsection (4). (4)If an application under section 111(1) of the Magistrates’ Courts Act 1980 (statement of case for opinion of High Court) is made in respect of a planning enforcement order, the enforcement year for the order is the year beginning with the day on which the proceedings arising from that application are finally determined or withdrawn. (5)Subsection (2)— (a)applies whether or not the time limits under section 171B have expired, and (b)does not prevent the taking of enforcement action after the end of the enforcement year but within those time limits. 171BBPlanning enforcement orders: procedure (1)An application for a planning enforcement order in relation to an apparent breach of planning control may be made within the 6 months beginning with the date on which evidence of the apparent breach of planning control sufficient in the opinion of the local planning authority to justify the application came to the authority’s knowledge. (2)For the purposes of subsection (1), a certificate— (a)signed on behalf of the local planning authority, and (b)stating the date on which evidence sufficient in the authority’s opinion to justify the application came to the authority’s knowledge,is conclusive evidence of that fact. (3)A certificate stating that matter and purporting to be so signed is to be deemed to be so signed unless the contrary is proved. (4)Where the local planning authority apply to a magistrates’ court for a planning enforcement order in relation to an apparent breach of planning control in respect of any land, the authority must serve a copy of the application— (a)on the owner and on the occupier of the land, and (b)on any other person having an interest in the land that is an interest which, in the opinion of the authority, would be materially affected by the taking of enforcement action in respect of the apparent breach. (5)The persons entitled to appear before, and be heard by, the court hearing an application for a planning enforcement order in relation to an apparent breach of planning control in respect of any land include— (a)the applicant, (b)any person on whom a copy of the application was served under subsection (4), and (c)any other person having an interest in the land that is an interest which, in the opinion of the court, would be materially affected by the taking of enforcement action in respect of the apparent breach. (6)In this section “planning enforcement order” means an order under section 171BA(1). 171BCMaking a planning enforcement order (1)A magistrates’ court may make a planning enforcement order in relation to an apparent breach of planning control only if— (a)the court is satisfied, on the balance of probabilities, that the apparent breach, or any of the matters constituting the apparent breach, has (to any extent) been deliberately concealed by any person or persons, and (b)the court considers it just to make the order having regard to all the circumstances. (2)A planning enforcement order must— (a)identify the apparent breach of planning control to which it relates, and (b)state the date on which the court’s decision to make the order was given. (3)In this section “planning enforcement order” means an order under section 171BA(1).” (2)In section 188 of the Town and Country Planning Act 1990 (register of enforcement and stop notices)— (a)in subsection (1) (matters to which registers apply) before paragraph (a) insert— “(za)to planning enforcement orders,”, (b)in subsection (2)(a) (development order may make provision about removal of entries from register)— (i)before “enforcement notice” insert “planning enforcement order,”, (ii)before “any such notice” insert “any planning enforcement order or”, and (iii)after “specified in the” insert “development”, (c)in subsection (2)(b) (development order may make provision about supply of information by county planning authority) after “served by” insert “, and planning enforcement orders made on applications made by,”, (d)after subsection (3) insert— “(4)In this section “planning enforcement order” means an order under section 171BA(1).”, and (e)in the heading after “and stop notices” insert “and other enforcement action”. (3)In section 191 of the Town and Country Planning Act 1990 (certificate of lawfulness of existing use or development) after subsection (3) insert— “(3A)In determining for the purposes of this section whether the time for taking enforcement action in respect of a matter has expired, that time is to be taken not to have expired if— (a)the time for applying for an order under section 171BA(1) (a “planning enforcement order”) in relation to the matter has not expired, (b)an application has been made for a planning enforcement order in relation to the matter and the application has neither been decided nor been withdrawn, or (c)a planning enforcement order has been made in relation to the matter, the order has not been rescinded and the enforcement year for the order (whether or not it has begun) has not expired.” 125Assurance as regards prosecution for person served with enforcement notice In the Town and Country Planning Act 1990 after section 172 (issue and service of enforcement notice) insert— “172AAssurance as regards prosecution for person served with notice (1)When, or at any time after, an enforcement notice is served on a person, the local planning authority may give the person a letter— (a)explaining that, once the enforcement notice had been issued, the authority was required to serve the notice on the person, (b)giving the person one of the following assurances— (i)that, in the circumstances as they appear to the authority, the person is not at risk of being prosecuted under section 179 in connection with the enforcement notice, or (ii)that, in the circumstances as they appear to the authority, the person is not at risk of being prosecuted under section 179 in connection with the matters relating to the enforcement notice that are specified in the letter, (c)explaining, where the person is given the assurance under paragraph (b)(ii), the respects in which the person is at risk of being prosecuted under section 179 in connection with the enforcement notice, and (d)stating that, if the authority subsequently wishes to withdraw the assurance in full or part, the authority will first give the person a letter specifying a future time for the withdrawal that will allow the person a reasonable opportunity to take any steps necessary to avoid any risk of prosecution that is to cease to be covered by the assurance. (2)At any time after a person has under subsection (1) been given a letter containing an assurance, the local planning authority may give the person a letter withdrawing the assurance (so far as not previously withdrawn) in full or part from a time specified in the letter. (3)The time specified in a letter given under subsection (2) to a person must be such as will give the person a reasonable opportunity to take any steps necessary to avoid any risk of prosecution that is to cease to be covered by the assurance. (4)Withdrawal under subsection (2) of an assurance given under subsection (1) does not withdraw the assurance so far as relating to prosecution on account of there being a time before the withdrawal when steps had not been taken or an activity had not ceased. (5)An assurance given under subsection (1) (so far as not withdrawn under subsection (2)) is binding on any person with power to prosecute an offence under section 179.” 126Planning offences: time limits and penalties (1)The Town and Country Planning Act 1990 is amended as follows. (2)In section 187A(12) (maximum penalty of level 3 on standard scale for offence of being in breach of a breach of condition notice) for “fine not exceeding level 3 on the standard scale” substitute “fine— (a)not exceeding level 4 on the standard scale if the land is in England; (b)not exceeding level 3 on the standard scale if the land is in Wales”. (3)In section 210 (penalties for non-compliance with tree preservation regulations) after subsection (4) insert— “(4A)Proceedings for an offence under subsection (4) may be brought within the period of 6 months beginning with the date on which evidence sufficient in the opinion of the prosecutor to justify the proceedings came to the prosecutor’s knowledge. (4B)Subsection (4A) does not authorise the commencement of proceedings for an offence more than 3 years after the date on which the offence was committed. (4C)For the purposes of subsection (4A), a certificate— (a)signed by or on behalf of the prosecutor, and (b)stating the date on which evidence sufficient in the prosecutor’s opinion to justify the proceedings came to the prosecutor’s knowledge,is conclusive evidence of that fact. (4D)A certificate stating that matter and purporting to be so signed is to be deemed to be so signed unless the contrary is proved. (4E)Subsection (4A) does not apply in relation to an offence in respect of a tree in Wales.” (4)In section 224 (enforcement of control as to advertisements) after subsection (6) insert— “(7)Proceedings for an offence under subsection (3) may be brought within the period of 6 months beginning with the date on which evidence sufficient in the opinion of the prosecutor to justify the proceedings came to the prosecutor’s knowledge. (8)Subsection (7) does not authorise the commencement of proceedings for an offence more than 3 years after the date on which the offence was committed. (9)For the purposes of subsection (7), a certificate— (a)signed by or on behalf of the prosecutor, and (b)stating the date on which evidence sufficient in the prosecutor’s opinion to justify the proceedings came to the prosecutor’s knowledge,is conclusive evidence of that fact. (10)A certificate stating that matter and purporting to be so signed is to be deemed to be so signed unless the contrary is proved. (11)Subsection (7) does not apply in relation to an offence in respect of an advertisement in Wales.” (5)An amendment made by this section applies only in relation to offences committed after the amendment has come into force. 127Powers in relation to: unauthorised advertisements; defacement of premises (1)In Part 8 of the Town and Country Planning Act 1990 (special controls) in Chapter 3 (advertisements) after section 225 insert— “225APower to remove structures used for unauthorised display (1)Subject to subsections (2), (3) and (5) and the right of appeal under section 225B, the local planning authority for an area in England may remove, and then dispose of, any display structure— (a)which is in their area; and (b)which, in the local planning authority’s opinion, is used for the display of advertisements in contravention of regulations under section 220. (2)Subsection (1) does not authorise the removal of a display structure in a building to which there is no public right of access. (3)The local planning authority may not under subsection (1) remove a display structure unless the local planning authority have first served a removal notice on a person who appears to the local planning authority to be responsible for the erection or maintenance of the display structure. (4)Subsection (3) applies only if there is a person— (a)who appears to the local planning authority to be responsible for the erection or maintenance of the display structure; and (b)whose name and address are either known by the local planning authority or could be ascertained by the local planning authority after reasonable enquiry. (5)If subsection (3) does not apply, the local planning authority may not under subsection (1) remove a display structure unless the local planning authority have first— (a)fixed a removal notice to the display structure or exhibited a removal notice in the vicinity of the display structure; and (b)served a copy of that notice on the occupier of the land on which the display structure is situated. (6)Subsection (5)(b) applies only if the local planning authority know who the occupier is or could identify the occupier after reasonable enquiry. (7)Where— (a)the local planning authority has served a removal notice in accordance with subsection (3) or (5)(b), and (b)the display structure is not removed by the time specified in the removal notice,the local planning authority may recover, from any person on whom the removal notice has been served under subsection (3) or (5)(b), expenses reasonably incurred by the local planning authority in exercising the local planning authority’s power under subsection (1). (8)Expenses are not recoverable under subsection (7) from a person if the person satisfies the local planning authority that the person was not responsible for the erection of the display structure and is not responsible for its maintenance. (9)Where in the exercise of power under subsection (1) any damage is caused to land or chattels, compensation may be recovered by any person suffering the damage from the local planning authority exercising the power, but compensation is not recoverable under this subsection or section 325(6)— (a)for damage caused to the display structure; or (b)for damage reasonably caused in removing the display structure. (10)The provisions of section 118 apply in relation to compensation under subsection (9) as they apply in relation to compensation under Part 4. (11)In this section “removal notice”, in relation to a display structure, means notice— (a)stating that in the local planning authority’s opinion the display structure is used for the display of advertisements in contravention of regulations under section 220; (b)stating that the local planning authority intend after a time specified in the notice to remove the display structure; and (c)stating the effect of subsections (7) and (8). (12)A time specified under subsection (11)(b) may not be earlier than the end of 22 days beginning with the date of the notice. (13)In this section “display structure” means (subject to subsection (14))— (a)a hoarding or similar structure used, or designed or adapted for use, for the display of advertisements; (b)anything (other than a hoarding or similar structure) principally used, or designed or adapted principally for use, for the display of advertisements; (c)a structure that is itself an advertisement; or (d)fitments used to support anything within any of paragraphs (a) to (c). (14)Something is a “display structure” for the purpose of this section only if— (a)its use for the display of advertisement requires consent under this Chapter, and (b)that consent has not been granted and is not deemed to have been granted. (15)In subsection (13) “structure” includes movable structure. 225BAppeal against notice under section 225A (1)A person on whom a removal notice has been served in accordance with section 225A(3) or (5)(b) may appeal to a magistrates’ court on any of the following grounds— (a)that the display structure concerned is not used for the display of advertisements in contravention of regulations under section 220; (b)that there has been some informality, defect or error in, or in connection with, the notice; (c)that the period between the date of the notice and the time specified in the notice is not reasonably sufficient for the removal of the display structure; (d)that the notice should have been served on another person. (2)For the purposes of subsection (3), a person is a “permitted appellant” in relation to a removal notice if— (a)the removal notice has been fixed or exhibited in accordance with section 225A(5)(a); (b)the person is an owner or occupier of the land on which the display structure concerned is situated; and (c)no copy of the removal notice has been served on the person in accordance with section 225A(5)(b). (3)A person who is a permitted appellant in relation to a removal notice may appeal to a magistrates’ court on any of the following grounds— (a)that the display structure concerned is not used for the display of advertisements in contravention of regulations under section 220; (b)that there has been some informality, defect or error in, or in connection with, the notice; (c)that the period between the date of the notice and the time specified in the notice is not reasonably sufficient for the removal of the display structure. (4)So far as an appeal under this section is based on the ground mentioned in subsection (1)(b) or (3)(b), the court must dismiss the appeal if it is satisfied that the informality, defect or error was not a material one. (5)If an appeal under subsection (1) is based on the ground mentioned in subsection (1)(d), the appellant must serve a copy of the notice of appeal on each person who the appellant considers is a person on whom the removal notice should have been served in accordance with section 225A(3) or (5)(b). (6)If— (a)a removal notice is served on a person in accordance with section 225A(3) or (5)(b), and (b)the local planning authority bring proceedings against the person for the recovery under section 225A(7) of any expenses,it is not open to the person to raise in the proceedings any question which the person could have raised in an appeal under subsection (1). (7)In this section “removal notice” and “display structure” have the same meaning as in section 225A. 225CRemedying persistent problems with unauthorised advertisements (1)Subsections (2) and (3) apply if the local planning authority for an area in England have reason to believe that there is a persistent problem with the display of unauthorised advertisements on a surface of— (a)any building, wall, fence or other structure or erection; or (b)any apparatus or plant. (2)The local planning authority may serve an action notice on the owner or occupier of the land in or on which the surface is situated. (3)If after reasonable enquiry the local planning authority— (a)are unable to ascertain the name and address of the owner, and (b)are unable to ascertain the name and address of the occupier,the local planning authority may fix an action notice to the surface. (4)For the purposes of this section “an action notice”, in relation to a surface, is a notice requiring the owner or occupier of the land in or on which the surface is situated to carry out the measures specified in the notice by a time specified in the notice. (5)A time may be specified in an action notice if it is a reasonable time not earlier than the end of 28 days beginning with the date of the notice. (6)Measures may be specified in an action notice if they are reasonable measures to prevent or reduce the frequency of the display of unauthorised advertisements on the surface concerned. (7)The time by which an owner or occupier must comply with an action notice may be postponed by the local planning authority. (8)This section has effect subject to— (a)the other provisions of the enactments relating to town and country planning; (b)the provisions of the enactments relating to historic buildings and ancient monuments; and (c)Part 2 of the Food and Environmental Protection Act 1985 (which relates to deposits in the sea). (9)Subsection (10) applies if— (a)an action notice is served under subsection (2) or fixed under subsection (3); and (b)the measures specified in the notice are not carried out by the time specified in the notice. (10)The local planning authority may— (a)carry out the measures; and (b)recover expenses reasonably incurred by the local planning authority in doing that from the person required by the action notice to do it. (11)Power under subsection (10)(a) is subject to the right of appeal under section 225D. (12)Where in the exercise of power under subsection (10)(a) any damage is caused to land or chattels, compensation may be recovered by any person suffering the damage from the local planning authority exercising the power, but compensation is not recoverable under this subsection for damage reasonably caused in carrying out the measures. (13)The provisions of section 118 apply in relation to compensation under subsection (12) as they apply in relation to compensation under Part 4. (14)The local planning authority may not recover expenses under subsection (10)(b) in respect of a surface that— (a)forms part of a flat or a dwellinghouse; (b)is within the curtilage of a dwellinghouse; or (c)forms part of the boundary of the curtilage of a dwellinghouse. (15)Each of sections 275 and 291 of the Public Health Act 1936 (provision for authority to agree to take the required measures at expense of owner or occupier, and provision for expenses to be recoverable also from owner’s successor or from occupier and to be charged on premises concerned) applies as if the reference in that section to that Act included a reference to this section. (16)In this section— “dwellinghouse” does not include a building containing one or more flats, or a flat contained within such a building; “flat” means a separate and self-contained set of premises constructed or adapted for use as a dwelling and forming part of a building from some other part of which it is divided horizontally; “unauthorised advertisement” means an advertisement in respect of which an offence— (a)under section 224(3), or (b)under section 132 of the Highways Act 1980 (unauthorised marks on highway), is committed after the coming into force of this section. 225DRight to appeal against notice under section 225C (1)A person on whom notice has been served under section 225C(2) may appeal to a magistrates’ court on any of the following grounds— (a)that there is no problem with the display of unauthorised advertisements on the surface concerned or any such problem is not a persistent one; (b)that there has been some informality, defect or error in, or in connection with, the notice; (c)that the time within which the measures specified in the notice are to be carried out is not reasonably sufficient for the purpose; (d)that the notice should have been served on another person. (2)The occupier or owner of premises which include a surface to which a notice has been fixed under section 225C(3) may appeal to a magistrates’ court on any of the following grounds— (a)that there is no problem with the display of unauthorised advertisements on the surface concerned or any such problem is not a persistent one; (b)that there has been some informality, defect or error in, or in connection with, the notice; (c)that the time within which the measures specified in the notice are to be carried out is not reasonably sufficient for the purpose. (3)So far as an appeal under this section is based on the ground mentioned in subsection (1)(b) or (2)(b), the court must dismiss the appeal if it is satisfied that the informality, defect or error was not a material one. (4)If an appeal under subsection (1) is based on the ground mentioned in subsection (1)(d), the appellant must serve a copy of the notice of appeal on each person who the appellant considers is a person on whom the notice under section 225C(2) should have been served. (5)If— (a)notice under section 225C(2) is served on a person, and (b)the local planning authority bring proceedings against the person for the recovery under section 225C(10)(b) of any expenses,it is not open to the person to raise in the proceedings any question which the person could have raised in an appeal under subsection (1). 225EApplying section 225C to statutory undertakers’ operational land (1)Subsection (2) and (3) apply where the local planning authority serves a notice under section 225C(2) requiring a statutory undertaker to carry out measures in respect of the display of unauthorised advertisements on a surface on its operational land. (2)The statutory undertaker may, within 28 days beginning with the date of service of the notice, serve a counter-notice on the local planning authority specifying alternative measures which will in the statutory undertaker’s reasonable opinion have the effect of preventing or reducing the frequency of the display of unauthorised advertisements on the surface to at least the same extent as the measures specified in the notice. (3)Where a counter-notice is served under subsection (2), the notice under section 225C(2) is to be treated— (a)as requiring the alternative measures specified in the counter-notice to be carried out (instead of the measures actually required by the notice under section 225C(2)); and (b)as having been served on the date on which the counter-notice is served. (4)The time by which a statutory undertaker must carry out the measures specified in a counter-notice served under subsection (2) may be postponed by the local planning authority.” (2)In Part 8 of the Town and Country Planning Act 1990 (special controls) after Chapter 3 insert— “CHAPTER 4 Remedying defacement of premises 225FPower to remedy defacement of premises (1)Subsections (2) and (3) apply if— (a)premises in England include a surface that is readily visible from a place to which the public have access; (b)either— (i)the surface does not form part of the operational land of a statutory undertaker, or (ii)the surface forms part of the operational land of a statutory undertaker and subsection (11) applies to the surface; (c)there is a sign on the surface; and (d)the local planning authority consider the sign to be detrimental to the amenity of the area or offensive. (2)The local planning authority may serve on the occupier of the premises a notice requiring the occupier to remove or obliterate the sign by a time specified in the notice. (3)If it appears to the local planning authority that there is no occupier of the premises, the local planning authority may fix to the surface a notice requiring the owner or occupier of the premises to remove or obliterate the sign by a time specified in the notice. (4)A time specified under subsection (2) or (3) may not be earlier than the end of 15 days beginning the date of service or fixing of the notice. (5)Subsection (6) applies if— (a)a notice is served under subsection (2) or fixed under subsection (3); and (b)the sign is neither removed nor obliterated by the time specified in the notice. (6)The local planning authority may— (a)remove or obliterate the sign; and (b)recover expenses reasonably incurred by the local planning authority in doing that from the person required by the notice to do it. (7)Power under subsection (6)(a) is subject to the right of appeal under section 225I. (8)Expenses may not be recovered under subsection (6)(b) if the surface— (a)forms part of a flat or a dwellinghouse; (b)is within the curtilage of a dwellinghouse; or (c)forms part of the boundary of the curtilage of a dwellinghouse. (9)Section 291 of the Public Health Act 1936 (provision for expenses to be recoverable also from owner’s successor or from occupier and to be charged on premises concerned) applies as if the reference in that section to that Act included a reference to this section. (10)For the purposes of this section, a universal postal service provider is treated as being the occupier of any plant or apparatus that consists of a universal postal service letter box or a universal postal service pouch-box belonging to it. (11)This subsection applies to a surface if the surface abuts on, or is one to which access is given directly from, either— (a)a street; or (b)any place, other than a street, to which the public have access as of right. (12)In this section— “dwellinghouse” does not include a building containing one or more flats, or a flat contained within such a building; “flat” means a separate and self-contained set of premises constructed or adapted for use as a dwelling and forming part of a building from some other part of which it is divided horizontally; “premises” means building, wall, fence or other structure or erection, or apparatus or plant; “sign”— (a)includes any writing, letter, picture, device or representation, but (b)does not include an advertisement; “statutory undertaker” does not include a relevant airport operator (within the meaning of Part 5 of the Airports Act 1986); “street” includes any highway, any bridge carrying a highway and any road, lane, mews, footway, square, court, alley or passage, whether a thoroughfare or not; “universal postal service letter box” has the meaning given in section 86(4) of the Postal Services Act 2000; “universal postal service pouch-box” has the meaning given in paragraph 1(10) of Schedule 6 to that Act. 225GNotices under section 225F in respect of post boxes (1)The local planning authority may serve a notice under section 225F(2) on a universal postal service provider in respect of a universal postal service letter box, or universal postal service pouch-box, belonging to the provider only if— (a)the authority has served on the provider written notice of the authority’s intention to do so; and (b)the period of 28 days beginning with the date of service of that notice has ended. (2)In this section— “universal postal service letter box” has the meaning given in section 86(4) of the Postal Services Act 2000; “universal postal service pouch-box” has the meaning given in paragraph 1(10) of Schedule 6 to that Act. 225HSection 225F powers as respects bus shelters and other street furniture (1)The local planning authority may exercise the power conferred by section 225F(6)(a) to remove or obliterate a sign from any surface on a bus shelter, or other street furniture, of a statutory undertaker that is not situated on operational land of the statutory undertaker only if— (a)the authority has served on the statutory undertaker notice of the authority’s intention to do so; (b)the notice specified the bus shelter, or other street furniture, concerned; and (c)the period of 28 days beginning with the date of service of the notice has ended. (2)In this section “statutory undertaker” does not include an airport operator (within the meaning of Part 5 of the Airports Act 1986). 225IRight to appeal against notice under section 225F (1)A person on whom notice has been served under section 225F(2) may appeal to a magistrates’ court on any of the following grounds— (a)that the sign concerned is neither detrimental to the amenity of the area nor offensive; (b)that there has been some informality, defect or error in, or in connection with, the notice; (c)that the time within which the sign concerned is to be removed or obliterated is not reasonably sufficient for the purpose; (d)that the notice should have been served on another person. (2)The occupier or owner of premises which include a surface to which a notice has been fixed under section 225F(3) may appeal to a magistrates’ court on any of the following grounds— (a)that the sign concerned is neither detrimental to the amenity of the area nor offensive; (b)that there has been some informality, defect or error in, or in connection with, the notice; (c)that the time within which the sign concerned is to be removed or obliterated is not reasonably sufficient for the purpose. (3)So far as an appeal under this section is based on the ground mentioned in subsection (1)(b) or (2)(b), the court must dismiss the appeal if it is satisfied that the informality, defect or error was not a material one. (4)If an appeal under subsection (1) is based on the ground mentioned in subsection (1)(d), the appellant must serve a copy of the notice of appeal on each person who the appellant considers is a person on whom the notice under section 225F(2) should have been served. (5)If— (a)notice under section 225F(2) is served on a person, and (b)the local planning authority bring proceedings against the person for the recovery under section 225F(6)(b) of any expenses,it is not open to the person to raise in the proceedings any question which the person could have raised in an appeal under subsection (1). 225JRemedying defacement at owner or occupier’s request (1)Subsection (2) applies if— (a)premises in England include a surface that is readily visible from a place to which the public have access; (b)there is a sign on the surface; and (c)the owner or occupier of the premises asks the local planning authority to remove or obliterate the sign. (2)The local planning authority may— (a)remove or obliterate the sign; and (b)recover expenses reasonably incurred by the local planning authority in doing that from the person who asked the local planning authority to do it. (3)In this section “premises” means building, wall, fence or other structure or erection, or apparatus or plant. (4)In this section “sign”— (a)includes— (i)any writing, letter, picture, device or representation, and (ii)any advertisement, but (b)does not include an advertisement for the display of which deemed or express consent has been granted under Chapter 3. CHAPTER 5 Application of provisions of Chapters 3 and 4 to statutory undertakers 225KAction under sections 225A, 225C and 225F: operational land (1)This section applies in relation to the exercise by the local planning authority of— (a)power conferred by section 225A(1), or section 324(3) so far as applying for the purposes of section 225A(1), to— (i)enter on any operational land of a statutory undertaker, or (ii)remove a display structure situated on operational land of a statutory undertaker; (b)power conferred by section 225C(10)(a), or section 324(3) so far as applying for the purposes of section 225C(10)(a), to— (i)enter on any operational land of a statutory undertaker, or (ii)carry out any measures to prevent or reduce the frequency of the display of unauthorised advertisements on a surface on operational land of a statutory undertaker; or (c)power conferred by section 225F(6)(a), or section 324(3) so far as applying for the purposes of section 225F(6)(a), to— (i)enter on any operational land of a statutory undertaker, or (ii)remove or obliterate a sign on a surface of premises that are, or are on, operational land of a statutory undertaker. (2)The authority may exercise the power only if— (a)the authority has served on the statutory undertaker notice of the authority’s intention to do so; (b)the notice specified the display structure, surface or sign concerned and its location; and (c)the period of 28 days beginning with the date of service of the notice has ended. (3)If— (a)a notice under subsection (2) is served on a statutory undertaker, and (b)within 28 days beginning with the date the notice is served, the statutory undertaker serves a counter-notice on the local planning authority specifying conditions subject to which the power is to be exercised,the power may only be exercised subject to, and in accordance with, the conditions specified in the counter-notice. (4)The conditions which may be specified in a counter-notice under subsection (3) are conditions which are— (a)necessary or expedient in the interests of safety or the efficient and economic operation of the undertaking concerned; or (b)for the protection of any works, apparatus or other property not vested in the statutory undertaker which are lawfully present on, in, under or over the land upon which entry is proposed to be made. (5)If— (a)a notice under subsection (2) is served on a statutory undertaker, and (b)within 28 days beginning with the date the notice is served, the statutory undertaker serves a counter-notice on the local planning authority requiring the local planning authority to refrain from exercising the power,the power may not be exercised. (6)A counter-notice under subsection (5) may be served only if the statutory undertaker has reasonable grounds to believe, for reasons connected with the operation of its undertaking, that the power cannot be exercised under the circumstances in question— (a)without risk to the safety of any person; or (b)without unreasonable risk to the efficient and economic operation of the statutory undertaker’s undertaking. (7)In this section “statutory undertaker” does not include an airport operator (within the meaning of Part 5 of the Airports Act 1986).” (3)In section 324(3) of the Town and Country Planning Act 1990 (power of entry where necessary for purposes of section 225) after “225” insert “, 225A(1), 225C(10)(a) or 225F(6)(a)”. (4)In the London Local Authorities Act 1995 (c. x) omit sections 11 to 13 (provision as respects London which is generally superseded as a result of the provision as respects England made by the preceding provisions of this section). (5)In section 11 of the London Local Authorities Act 2007 (c. ii) after subsection (10) insert— “(11)The definition of “an advertising offence” given by section 4 of this Act applies for the purposes of subsection (10) above with— (a)the omission of paragraphs (a) and (b), and (b)in paragraph (d), the substitution of “paragraph” for “paragraphs (a) to”.” CHAPTER 6 Nationally significant infrastructure projects 128Abolition of Infrastructure Planning Commission (1)The Infrastructure Planning Commission ceases to exist on the day on which this subsection comes into force. (2)Schedule 13 (amendments in consequence of Commission’s abolition, including amendments transferring its functions to Secretary of State) has effect. (3)On the coming into force of this subsection, the property, rights and liabilities of the Infrastructure Planning Commission vest by virtue of this subsection in the Secretary of State. (4)Subsection (3) operates in relation to property, rights and liabilities— (a)whether or not they would otherwise be capable of being transferred, (b)without any instrument or other formality being required, and (c)irrespective of any requirement for consent that would otherwise apply. (5)The transfer by virtue of subsections (2) to (4) is to be treated as a relevant transfer for the purposes of the Transfer of Undertakings (Protection of Employment) Regulations 2006 (S.I. 2006/246) if it would not otherwise be a relevant transfer for those purposes. (6)Subsections (3) and (4) do not affect the operation of those Regulations in relation to that transfer. 129Transitional provision in connection with abolition (1)The Secretary of State may, in connection with the operation of the abolition provisions, give a direction about the handling on and after the abolition date of— (a)an application received by the Infrastructure Planning Commission before the abolition date that purports to be an application for an order granting development consent under the Planning Act 2008, (b)a proposed application notified to the Commission under section 46 of that Act before the abolition date, or (c)an application received by the Secretary of State on or after the abolition date where— (i)the application purports to be an application for an order granting development consent under that Act, and (ii)a proposed application that has become that application was notified to the Commission under section 46 of that Act before the abolition date. (2)A direction under subsection (1) may (in particular)— (a)make provision about the effect on and after the abolition date of things done before that date; (b)provide for provisions of or made under the Planning Act 2008 to apply on and after that date as they applied before that date, with or without modifications specified in the direction; (c)provide for provisions of or made under that Act to apply on and after the abolition date with modifications specified in the direction; (d)make provision for a person who immediately before the abolition date— (i)is a member of the Commission, and (ii)is a member of the Panel, or is the single Commissioner, handling an application for an order granting development consent under that Act,to be, or to be treated as being, a member of the Panel that under Chapter 2 of Part 6 of that Act, or the appointed person who under Chapter 3 of that Part, is to handle the application on and after the abolition date; (e)make other transitional provision and savings; (f)make provision binding the Crown. (3)In this section— “the abolition date” means the date on which section 128(1) comes into force; “the abolition provisions” means section 128, Schedule 13 and Part 20 of Schedule 25. 130National policy statements (1)The Planning Act 2008 is amended as follows. (2)In section 5(4) (statement may be designated as national policy statement only if consultation, publicity and parliamentary requirements have been complied with) after “have been complied with in relation to it” insert “and— (a)the consideration period for the statement has expired without the House of Commons resolving during that period that the statement should not be proceeded with, or (b)the statement has been approved by resolution of the House of Commons— (i)after being laid before Parliament under section 9(8), and (ii)before the end of the consideration period.” (3)In section 5 (national policy statements) after subsection (4) insert— “(4A)In subsection (4) “the consideration period”, in relation to a statement, means the period of 21 sitting days beginning with the first sitting day after the day on which the statement is laid before Parliament under section 9(8), and here “sitting day” means a day on which the House of Commons sits.” (4)In section 5(9) omit paragraph (b) (designated statement must be laid before Parliament). (5)In section 6(7) (national policy statement may be amended only if consultation, publicity and parliamentary requirements have been complied with) after “have been complied with in relation to the proposed amendment” insert “and— (a)the consideration period for the amendment has expired without the House of Commons resolving during that period that the amendment should not be proceeded with, or (b)the amendment has been approved by resolution of the House of Commons— (i)after being laid before Parliament under section 9(8), and (ii)before the end of the consideration period.” (6)In section 6 (review and amendment of national policy statements) after subsection (7) insert— “(7A)In subsection (7) “the consideration period”, in relation to an amendment, means the period of 21 sitting days beginning with the first sitting day after the day on which the amendment is laid before Parliament under section 9(8), and here “sitting day” means a day on which the House of Commons sits.” (7)In section 6(8) (subsections (6) and (7) do not apply if amendment does not materially affect national policy) for “and (7)” substitute “to (7A)”. (8)After section 6 insert— “6AInterpretation of sections 5(4) and 6(7) (1)This section applies for the purposes of section 5(4) and 6(7). (2)The consultation and publicity requirements set out in section 7 are to be treated as having been complied with in relation to a statement or proposed amendment (“the final proposal”) if— (a)they have been complied with in relation to a different statement or proposed amendment (“the earlier proposal”), (b)the final proposal is a modified version of the earlier proposal, and (c)the Secretary of State thinks that the modifications do not materially affect the policy as set out in the earlier proposal. (3)The consultation and publicity requirements set out in section 7 are also to be treated as having been complied with in relation to a statement or proposed amendment (“the final proposal”) if— (a)they have been complied with— (i)in relation to a different statement or proposed amendment (“the earlier proposal”), and (ii)in relation to modifications of the earlier proposal (“the main modifications”), (b)the final proposal is a modified version of the earlier proposal, and (c)there are no modifications other than the main modifications or, where the modifications include modifications other than the main modifications, the Secretary of State thinks that those other modifications do not materially affect the policy as set out in the earlier proposal modified by the main modifications. (4)If section 9(8) has been complied with in relation to a statement or proposed amendment (“the final proposal”), the parliamentary requirements set out in section 9(2) to (7) are to be treated as having been complied with in relation to the final proposal where— (a)the final proposal is not the same as what was laid under section 9(2), but (b)those requirements have been complied with in relation to what was laid under section 9(2). (5)Ignore any corrections of clerical or typographical errors in what was laid under section 9(8). 6BExtension of consideration period under section 5(4A) or 6(7A) (1)The Secretary of State may— (a)in relation to a proposed national policy statement, extend the period mentioned in section 5(4A), or (b)in relation to a proposed amendment of a national policy statement, extend the period mentioned in section 6(7A),by 21 sitting days or less. (2)The Secretary of State does that by laying before the House of Commons a statement— (a)indicating that the period is to be extended, and (b)setting out the length of the extension. (3)The statement under subsection (2) must be laid before the period would have expired without the extension. (4)The Secretary of State must publish the statement under subsection (2) in a way the Secretary of State thinks appropriate. (5)The period may be extended more than once.” (9)In section 8(1)(a) (local authorities within subsection (2) or (3) to be consulted about publicity required for proposed statement identifying a location) for “or (3)” substitute “, (3) or (3A)”. (10)In section 8(3) (consultation with local authorities that share a boundary with the local authority (“B”) whose area contains a location) before the “and” at the end of paragraph (a) insert— “(aa)B is a unitary council or a lower-tier district council,”. (11)In section 8 (consultation on publicity requirements) after subsection (3) insert— “(3A)If any of the locations concerned is in the area of an upper-tier county council (“C”), a local authority (“D”) is within this subsection if— (a)D is not a lower-tier district council, and (b)any part of the boundary of D’s area is also part of the boundary of C’s area.” (12)In section 8, after subsection (4) (meaning of “local authority”) insert— “(5)In this section— “lower-tier district council” means a district council in England for an area for which there is a county council; “unitary council” means a local authority that is not an upper-tier county council, a lower-tier district council, a National Park authority or the Broads Authority; “upper-tier county council” means a county council in England for each part of whose area there is a district council.” (13)In section 9 (parliamentary requirements for national policy statements and their amendments) after subsection (7) insert— “(8)After the end of the relevant period, but not before the Secretary of State complies with subsection (5) if it applies, the Secretary of State must lay the proposal before Parliament. (9)If after subsection (8) has been complied with— (a)something other than what was laid under subsection (8) becomes the proposal, or (b)what was laid under subsection (8) remains the proposal, or again becomes the proposal, despite the condition in section 5(4)(a) not having been met in relation to it,subsection (8) must be complied with anew. (10)For the purposes of subsection (9)(a) and (b) ignore any proposal to correct clerical or typographical errors in what was laid under subsection (8).” (14)Section 12 (power to designate pre-commencement statements of policy and to take account of pre-commencement consultation etc) is repealed. 131Power to alter effect of requirement for development consent on other consent regimes (1)The Planning Act 2008 is amended as follows. (2)In section 33 (effect of requirement for development consent on other consent regimes) after subsection (4) insert— “(5)The Secretary of State may by order— (a)amend subsection (1) or (2)— (i)to add or remove a type of consent, or (ii)to vary the cases in relation to which a type of consent is within that subsection; (b)make further provision, or amend or repeal provision, about— (i)the types of consent that are, and are not, within subsection (1) or (2), or (ii)the cases in relation to which a type of consent is, or is not, within either of those subsections. (6)In this section “consent” means— (a)a consent or authorisation that is required, under legislation, to be obtained for development, (b)a consent, or authorisation, that— (i)may authorise development, and (ii)is given under legislation, or (c)a notice that is required by legislation to be given in relation to development. (7)In subsection (6) “legislation” means an Act or an instrument made under an Act. (8)An order under subsection (5) may not affect— (a)a requirement for a devolved consent to be obtained for, or given in relation to, development, or (b)whether development may be authorised by a devolved consent. (9)A consent is “devolved” for the purposes of subsection (8) if— (a)provision for the consent would be within the legislative competence of the National Assembly for Wales if the provision were contained in an Act of the Assembly, (b)provision for the consent is, or could be, made by the Welsh Ministers in an instrument made under an Act, (c)the consent is not within subsection (6)(c) and the Welsh Ministers have a power or duty— (i)to decide, or give directions as to how to decide, whether the consent is given, (ii)to decide, or give directions as to how to decide, some or all of the terms on which the consent is given, or (iii)to revoke or vary the consent, or (d)the consent is within subsection (6)(c) and the notice has to be given to the Welsh Ministers or otherwise brought to their attention. (10)An order under subsection (5)(b) may amend this Act.” (3)In section 232 (orders and regulations)— (a)in subsection (5)(d) (orders not subject to annulment by either House of Parliament) after “14(3),” insert “33(5),”, and (b)in subsection (6) (orders that must be approved in draft by both Houses of Parliament before being made) after “14(3),” insert “33(5),”. (4)In paragraph 4 of Schedule 12 (application of section 33 to Scotland: modifications)— (a)in sub-paragraph (a) for paragraph (i) substitute— “(i)for “none of the following is” there were substituted “the following are not”, and”, (b)omit the “and” at the end of sub-paragraph (a), (c)in sub-paragraph (b) for “subsections (2) to (4)” substitute “paragraphs (a) to (c) of subsection (2), and subsections (3) and (4),”, and (d)after sub-paragraph (b) insert “, and (c)in subsection (7) “Act” includes an Act of the Scottish Parliament.” 132Secretary of State’s directions in relation to projects of national significance (1)Section 35 of the Planning Act 2008 (directions in relation to projects of national significance) is amended in accordance with subsections (2) to (9). (2)In subsection (1) (circumstances in which the Secretary of State may give directions)— (a)omit paragraph (a) (requirement that an application for a consent or authorisation mentioned in section 33(1) or (2) has been made), and (b)in paragraph (b)— (i)omit “the”, and (ii)after “project” insert “, or proposed project,”. (3)For subsection (4) (directions the Secretary of State may give) substitute— “(4)The Secretary of State may direct the developmen