Legislative and Regulatory Reform Bill

House of Lords

Session 2005 - 06
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Other Bills before Parliament

Legislative and Regulatory Reform Bill

Legislative and Regulatory Reform Bill
Part 1 — Order-making powers
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Wales
An order under this Part may not make any provision—
(a)
conferring a function on the Assembly,
(b)
modifying or removing a function of the Assembly, or
(c)
restating any provision which confers a function on the Assembly,
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except with the agreement of the Assembly.
Procedure
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Procedure: introductory
(1)
An order under this Part must be made by statutory instrument.
(2)
A Minister may not make an order under this Part unless—
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(a)
he has consulted in accordance with section 13;
(b)
following that consultation, he has laid a draft order and explanatory
document before Parliament in accordance with section 14; and
(c)
the order is made, as determined under section 15, in accordance
with—
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(i)
the negative resolution procedure (see section 16);
(ii)
the affirmative resolution procedure (see section 17); or
(iii)
the super-affirmative resolution procedure (see section 18).
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Consultation
(1)
If a Minister proposes to make an order under this Part he must—
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(a)
consult such organisations as appear to him to be representative of
interests substantially affected by the proposals;
(b)
where the proposals relate to the functions of one or more statutory
bodies, consult those bodies, or persons appearing to him to be
representative of those bodies;
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(c)
consult the Assembly where the proposals, so far as applying in or as
regards Wales, relate to any matter in relation to which the Assembly
exercises functions (and where the Assembly’s agreement is not
required under section 11);
(d)
in such cases as he considers appropriate, consult the Law Commission,
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the Scottish Law Commission or the Northern Ireland Law
Commission; and
(e)
consult such other persons as he considers appropriate.
(2)
If, as a result of any consultation required by subsection (1), it appears to the
Minister that it is appropriate to change the whole or any part of his proposals,
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he must undertake such further consultation with respect to the changes as he
considers appropriate.
(3)
If, before the day on which this section comes into force, any consultation was
undertaken which, had it been undertaken after that day, would to any extent
have satisfied the requirements of this section, those requirements shall to that
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extent be taken to have been satisfied.
(4)
Where—

Legislative and Regulatory Reform Bill
Part 1 — Order-making powers
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(a)
proposals for an order under this Part are the same as proposals for an
order under section 1 of the Regulatory Reform Act 2001 (c. 6),
(b)
consultation has at any time been undertaken in relation to the
proposals under section 5 of that Act, and
(c)
that consultation satisfied the requirements of that section in relation to
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the proposals,

the requirements of this section shall be taken to have been satisfied in relation
to the proposals.
(5)
In subsection (1)(b) “statutory body” means—
(a)
a body established by or under any enactment; or
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(b)
the holder of any office so established.
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Draft order and explanatory document laid before Parliament
(1)
If, after the conclusion of the consultation required by section 13, the Minister
considers it appropriate to proceed with the making of an order under this
Part, he must lay before Parliament—
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(a)
a draft of the order, together with
(b)
an explanatory document.
(2)
The explanatory document must—
(a)
explain under which power or powers in this Part the provision
contained in the order is made;
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(b)
introduce and give reasons for the provision;
(c)
explain why the Minister considers that—
(i)
the conditions in section 3(2) are satisfied (where relevant); or
(ii)
the condition in section 3(4) is satisfied;
(d)
in the case of an order under section 1, include, so far as appropriate, an
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assessment of the extent to which the provision made by the order
would remove or reduce any burden or burdens (within the meaning
of subsection (2) of that section);
(e)
identify and give reasons for—
(i)
any functions of legislating conferred by the order; and
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(ii)
the procedural requirements attaching to the exercise of those
functions; and
(f)
give details of—
(i)
any consultation undertaken under section 13;
(ii)
any representations received as a result of the consultation;
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(iii)
the changes (if any) made as a result of those representations.
(3)
Where a person making representations in response to consultation under
section 13 has requested the Minister not to disclose them, the Minister must
not disclose them under subsection (2)(f)(ii) if or to the extent that to do so
would (disregarding any connection with proceedings in Parliament)
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constitute a breach of confidence actionable by any person.
(4)
If information in representations made by a person in response to consultation
under section 13 relates to another person, the Minister need not disclose the
information under subsection (2)(f)(ii) if or to the extent that—
(a)
it appears to the Minister that the disclosure of that information could
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adversely affect the interests of that other person; and

Legislative and Regulatory Reform Bill
Part 1 — Order-making powers
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(b)
the Minister has been unable to obtain the consent of that other person
to the disclosure.
(5)
Subsections (3) and (4) do not affect any disclosure that is requested by, and
made to, a committee of either House of Parliament charged with reporting on
the draft order.
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(6)
In subsection (2)(e) “function of legislating” has the same meaning as in section
4.
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Determination of Parliamentary procedure
(1)
The explanatory document laid with a draft order under section 14 must
contain a recommendation by the Minister as to which of the following should
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apply in relation to the making of an order pursuant to the draft order—
(a)
the negative resolution procedure (see section 16);
(b)
the affirmative resolution procedure (see section 17); or
(c)
the super-affirmative resolution procedure (see section 18).
(2)
The explanatory document must give reasons for the Minister’s
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recommendation.
(3)
Where the Minister’s recommendation is that the negative resolution
procedure should apply, that procedure shall apply unless, within the 30-day
period—
(a)
either House of Parliament requires that the super-affirmative
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resolution procedure shall apply, in which case that procedure shall
apply; or
(b)
in a case not falling within paragraph (a), either House of Parliament
requires that the affirmative resolution procedure shall apply, in which
case that procedure shall apply.
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(4)
Where the Minister’s recommendation is that the affirmative resolution
procedure should apply, that procedure shall apply unless, within the 30-day
period, either House of Parliament requires that the super-affirmative
resolution procedure shall apply, in which case the super-affirmative
resolution procedure shall apply.
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(5)
Where the Minister’s recommendation is that the super-affirmative resolution
procedure should apply, that procedure shall apply.
(6)
For the purposes of this section a House of Parliament shall be taken to have
required a procedure within the 30-day period if—
(a)
that House resolves within that period that that procedure shall apply;
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or
(b)
in a case not falling within paragraph (a), a committee of that House
charged with reporting on the draft order has recommended within
that period that that procedure should apply and the House has not by
resolution rejected that recommendation within that period.
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(7)
In this section the “30-day period” means the period of 30 days beginning with
the day on which the draft order was laid before Parliament under section 14.

Legislative and Regulatory Reform Bill
Part 1 — Order-making powers
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Negative resolution procedure
(1)
For the purposes of this Part, the “negative resolution procedure” in relation to
the making of an order pursuant to a draft order laid under section 14 is as
follows.
(2)
The Minister may make an order in the terms of the draft order subject to the
5
following provisions of this section.
(3)
The Minister may not make an order in the terms of the draft order if either
House of Parliament so resolves within the 40-day period.
(4)
A committee of either House 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-
10
day period, recommend under this subsection that the Minister not make an
order in the terms of the draft order.
(5)
Where a recommendation is made by a committee of either House under
subsection (4) in relation to a draft order, the Minister may not make an order
in the terms of the draft order unless the recommendation is, in the same
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Session, rejected by resolution of that House.
(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—
(a)
the “30-day period” has the meaning given by section 15(7); and
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(b)
the “40-day period” means the period of 40 days beginning with the
day on which the draft order was laid before Parliament under section
14.
(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 either House
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but the recommendation is rejected by that House under subsection (5), no
account shall be taken of any day between the day on which the
recommendation was made and the day on which the recommendation was
rejected.
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Affirmative resolution procedure
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(1)
For the purposes of this Part the “affirmative resolution procedure” in relation
to the making of an order pursuant to a draft order laid under section 14 is as
follows.
(2)
If after the expiry of the 40-day period the draft order is approved by a
resolution of each House of Parliament, the Minister may make an order in the
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terms of the draft.
(3)
However, a committee of either House 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.
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(4)
Where a recommendation is made by a committee of either House under
subsection (3) in relation to a draft order, no proceedings may be taken in
relation to the draft order in that House under subsection (2) unless the
recommendation is, in the same Session, rejected by resolution of that House.

Legislative and Regulatory Reform Bill
Part 1 — Order-making powers
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(5)
For the purposes of subsection (2) an order is made in the terms of a draft order
if it contains no material changes to the provisions of the draft order.
(6)
In this section—
(a)
the “30-day period” has the meaning given by section 15(7); and
(b)
the “40-day period” has the meaning given by section 16(7).
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(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 either House
but the recommendation is rejected by that House under subsection (4), no
account shall be taken of any day between the day on which the
recommendation was made and the day on which the recommendation was
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rejected.
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Super-affirmative resolution procedure
(1)
For the purposes of this Part the “super-affirmative resolution procedure” in
relation to the making of an order pursuant to a draft order laid under section
14 is as follows.
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(2)
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,
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made during the 60-day period with regard to the draft order.
(3)
If, after the expiry of the 60-day period, the Minister wishes to make an order
in the terms of the draft, he must lay before Parliament a statement—
(a)
stating whether any representations were made under subsection
(2)(a); and
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(b)
if any representations were so made, giving details of them.
(4)
The Minister may after the laying of such a statement make an order in the
terms of the draft if it is approved by a resolution of each House of Parliament.
(5)
However, a committee of either House charged with reporting on the draft
order may, at any time after the laying of a statement under subsection (3) and
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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
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relation to the draft order in that House under subsection (4) unless the
recommendation is, in the same Session, rejected by resolution of that House.
(7)
If, after the expiry of the 60-day period, the Minister wishes to make an order
consisting of a version of the draft order with material changes, he must lay
before Parliament—
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(a)
a revised draft order; and
(b)
a statement giving details of—
(i)
any representations made under subsection (2)(a); and
(ii)
the revisions proposed.

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Part 1 — Order-making powers
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(8)
The Minister may after laying a revised draft order and statement under
subsection (7) make an order in the terms of the revised draft 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
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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
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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)
Subsections (3) to (5) of section 14 shall apply in relation to the disclosure of
representations under subsections (3)(b) and (7)(b)(i) of this section as they
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apply in relation to the disclosure of representations under subsection (2)(f)(ii)
of that section.
(12)
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.
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(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 under section 14.
General
19
Calculation of time periods
In calculating any period of days for the purposes of sections 15 to 18, no
25
account shall be taken of any time during which Parliament is dissolved or
prorogued or during which either House is adjourned for more than four days.
20
Combination with powers under European Communities Act 1972
(1)
The power to make an order under this Part may be exercised together with,
and by the same instrument as, the power to make an order under section 2(2)
30
of the European Communities Act 1972 (c. 68).
(2)
Where the powers referred to in subsection (1) are so exercised—
(a)
sections 12(2) to 18 above apply to the order under section 2(2) of the
European Communities Act 1972 as to the order under this Part; and
(b)
paragraph 2(2) of Schedule 2 to the European Communities Act 1972
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does not apply.

Legislative and Regulatory Reform Bill
Part 2 — Regulators
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Part 2
Regulators
Exercise of regulatory functions
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Principles
(1)
Any person exercising a regulatory function to which this section applies must
5
have regard to the principles in subsection (2) in the exercise of the function.
(2)
Those principles are that—
(a)
regulatory activities should be carried out in a way which is
transparent, accountable, proportionate and consistent;
(b)
regulatory activities should be targeted only at cases in which action is
10
needed.
(3)
The duty in subsection (1) is subject to any other requirement affecting the
exercise of the regulatory function.
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Code of practice
(1)
A Minister of the Crown may issue and from time to time revise a code of
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practice in relation to the exercise of regulatory functions.
(2)
Any person exercising a regulatory function to which this section applies must,
except in a case where subsection (3) applies, have regard to the code in
determining any general policy or principles by reference to which the person
exercises the function.
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(3)
Any person exercising a regulatory function to which this section applies
which is a function of setting standards or giving guidance generally in relation
to the exercise of other regulatory functions must have regard to the code in the
exercise of the function.
(4)
The duties in subsections (2) and (3) are subject to any other requirement
25
affecting the exercise of the regulatory function.
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Code of practice: procedure
(1)
Where a Minister of the Crown proposes to issue or revise a code of practice
under section 22, he shall prepare a draft of the code (or revised code).
(2)
The Minister shall, in preparing the draft, seek to secure that it is consistent
30
with the principles specified in section 21(2).
(3)
The Minister shall consult the following about the draft—
(a)
persons appearing to him to be representative of persons exercising
regulatory functions;
(b)
such other persons as he considers appropriate.
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(4)
If the Minister determines to proceed with the draft (either in its original form
or with modifications) he shall lay the draft before Parliament.