Section 27     Transitional provision as respects quality contract schemes

50. This section empowers the Scottish Ministers to make, by regulations, such transitional provision as they consider appropriate in connection with the coming into operation of QC schemes, the variation of such schemes and the ending of such schemes (whether or not as a result of their revocation). The Scottish Ministers may also make regulations to modify or remove the impact of sections 6 to 9 of the Transport Act 1985.

Ticketing arrangements and ticketing schemes

Section 28     Ticketing arrangements

51. This section imposes a duty on authorities to determine what ticketing arrangements (as defined in subsection (5)) should be made available on local bus services in their area. This enables authorities to determine whether the provision of ticketing arrangements is necessary, and if so, to determine whether those arrangements are being made available. Before making such a determination, the authority must consult organisations representative of local bus users.

52. If it is considered that appropriate ticketing arrangements are not being made available the authority must seek to make arrangements with operators for the provision of such arrangements on a voluntary basis. If such voluntary arrangements cannot be made an authority may impose a ticketing scheme under section 29 of the Act. However it is for the operator to determine the way in which the ticketing transactions are carried out.

Section 29     Ticketing schemes

53. If satisfactory arrangements cannot be made under section 28, this section enables local transport authorities, alone or jointly, to set up ticketing schemes, whereby operators of local bus services are required to make and implement ticketing arrangements (as defined in section 28(5)). In doing so the local transport authority must be satisfied that this is in the public interest and would to any extent implement their relevant general policies (as defined in section 48(1)). A ticketing scheme may not be made unless the authority have complied with the notice and consultation requirements in section 30.

Section 30     Consultation as to proposed ticketing schemes

54. Authorities must give notice of proposed ticketing schemes in at least one local newspaper circulating in the area, and specify the proposed date on which the proposed scheme is to come into effect. After giving notice of the proposed scheme the authority must consult operators of local services, representatives of bus users, the traffic commissioner and other such persons the authority thinks fit.

Section 31     Making of a ticketing scheme

55. This section enables authorities to make a ticketing scheme if they have complied with the consultation requirements in section 30. The scheme may be made as proposed or with modifications, and shall specify the date it comes into force (not less than 3 months after it is made). There are additional requirements as to publicity and the giving of notice (not later than 14 days after a scheme is made) when a decision is taken to make a scheme. Authorities must give notice of the proposed schemes in at least one local newspaper circulating in the area, and specify the date on which the scheme will come into effect and identify the classes of local services affected by it. The traffic commissioner and bus operators must also be notified separately. The Scottish Ministers may prescribe by regulations what other manner of notice should be given, or any other persons to be notified.

Section 32     Effect of ticketing scheme

56. This section imposes a duty on operators to implement the scheme from the date it comes into force. Failure to do so may result in enforcement action by the traffic commissioner under section 6 of the 1985 Act (by virtue of subsection (2)) and under section 111 of the 1985 Act (by virtue of amendments in section 40 of the Act).

Provision of information

Section 33     Information about bus services

57. This section enables an authority to determine in accordance with their relevant general policies (as defined in section 48(1)), how and what local bus information should be made available in their area. Before making such a determination, the authority must consult the traffic commissioner, organisations representative of local bus users and such other persons as the authority thinks fit. If it is determined that information is not being made available in an appropriate way the authority must seek to make arrangements with operators for its provision in that way. This section and sections 34 and 35 do not apply to any authority to the extent that part of their area falls within the passenger transport area of the SPTA.

Section 34     Duty of authority to make information available

58. This section provides that, if arrangements cannot be made by agreement, local transport authorities, alone or jointly, must make the bus information available, or secure that it is made available. In such a case the authority may recover reasonable costs from the operators concerned. Operators must furnish information to the authority or a third party in such circumstances, to enable the authority to meet these obligations. The traffic commissioner must be informed of any requirement to provide information imposed on operators of local services, and failure to implement such obligations may result in enforcement action by the traffic commissioner under section 111 of the 1985 Act (by virtue of consequential amendments made to that section by section 40 of the Act).

Section 35     Bus information: supplementary

59. This section provides that, in exercising their powers under sections 33 and 34, authorities must have regard to economy, efficiency and effectiveness, and must not discriminate against operators of local services.

Financial and competition provisions

Section 36     Agreements providing for service subsidies

60. This section amends the criteria by reference to which authorities must decide which tender to accept in the case of tenders for additional subsidised public transport services under section 9A of the Transport Act 1968 and section 63 of the Transport Act 1985. It introduces a new "best value" test by requiring authorities to have regard to economy, efficiency and effectiveness and also to have regard to their relevant general policies, and environmental issues, namely the reduction or limitation of traffic congestion, noise or air pollution.

61. This section also removes the present constraint (imposed by section 92(1) of the 1985 Act) that in exercising powers to subsidise those services authorities must not act so as "to inhibit competition". It is replaced with a new duty to have regard to the interests of the public and of operators. This is intended to make it easier for authorities to subsidise additional service frequency in appropriate circumstances by removing them from the requirement to consider whether competition might be inhibited.

Section 37     Competition test for exercise of bus functions

62. This section introduces a new competition test that will apply to the functions of making and varying of QP and ticketing schemes, and inviting and accepting tenders under section 89 or 91 of the Transport Act 1985. The competition test is met unless the measure has or is likely to have a significantly adverse effect on competition and is not justified by reference to the following criteria: that its effect on competition is proportionate and that it either secures improvements in the quality of vehicles or facilities used, secures other improvements in local services or reduces or limits traffic congestion, noise or air pollution.

Section 38     Grants to bus service operators

63. The grant making power contained in this section will replace the current Fuel Duty Rebate scheme operated under section 92 of the Finance Act 1965, which is repealed by subsection (6). This section makes new statutory provision for grants to bus operators, including power to make regulations as to the classes of bus services for which grant may be paid, and the method of calculation.

Section 39     Penalties

64. This section makes alternative provision to the penalties that are currently available to the traffic commissioner under section 111 of the Transport Act 1985 (as amended by section 40 of the Act). The section provides that the traffic commissioner may impose a penalty on an operator who has failed to operate a registered local service, or has failed to operate a local service in accordance with a QP or QC scheme, have failed to comply with a ticketing scheme or who has failed to provide information required by an authority under section 34(3). The maximum penalty under this section is £550 or such other sum as the Scottish Ministers may by order specify multiplied by the number of vehicles the operator is licensed to use under his public service vehicle licence. There is a right of appeal for operators to the Transport Tribunal.

Section 40     Repayment of grants towards bus fuel duty

65. This section amends section 111 of the Transport Act 1985 to enable the traffic commissioner to impose a penalty on a bus operator, if that operator fails "to a significant extent" to operate services as registered under section 6 of the 1985 Act. The amended provision enables the traffic commissioner to impose additional penalties in relation to:

- Operators using QP facilities when not entitled to do so (section 8(4));

- Operators providing a service within a QC area without entering into a QC with the local transport authority (section 22(1)(b) or (2));

- Operators failing to implement a ticketing scheme when required to do so (section 32(1)); and

- Operators failing to provide information to a local transport authority (section 34(3)).

66. The section also amends the current level of penalty, which the traffic commissioner must impose - a penalty of 20% of the fuel duty rebate paid in the previous three months. The amendment will enable the traffic commissioner to impose a penalty between 1% and 20% and there will no longer be a requirement to be satisfied that the operator has failed "to a significant extent", thus allowing a more flexible use of the power. This amendment only has effect, however, only until such time as section 111 of the 1985 Act is replaced by the provisions of section 38 of the Act.

Section 41     Bus User Complaints Tribunal

67. This section provides the Scottish Ministers with the power to establish by regulations a Tribunal whose remit will be to deal with complaints by bus users where the operator has not satisfactorily dealt with their complaints.

68. Subsection (2) provides that the Tribunal will have a convenor and two other members, who will be appointed by the Scottish Ministers. Subsection (3) provides that regulations may make provision in connection with such matter as the form of complaints, the procedure to be followed by the Tribunal, the matters to which the Tribunal shall have regard, the powers of the Tribunal on making determinations, the tenure of Tribunal members, the payment of remuneration and allowances, the making of reports to the Scottish Ministers, reporting arrangements and appeals.

69. Subsection (4) provides that the traffic commissioner shall make available the necessary staff, pay remuneration, allowances and any other expenses and provide the Tribunal with any other reasonable assistance. Subsection (6) provides that the Scottish Ministers shall pay the traffic commissioner an amount agreed as appropriate to reimburse this expense.

Section 42     Traffic regulation conditions to reduce or limit noise or air pollution

70. This section extends the powers of the traffic commissioner to impose traffic regulation conditions on local bus services under section 7 of the Transport Act 1985. Previously, these powers permitted the traffic commissioner, at the request of local authorities, to impose restrictions on routes and stopping places in the interests of preventing danger to road users or reducing severe traffic congestion. This section enables the traffic commissioner to do so for the additional purposes of reducing or limiting noise or air pollution.

Section 43     Power to obtain information about local services

71. This section enables a local transport authority to obtain from bus operators basic statistical data which may be needed in connection with any of its public transport functions - for example, in the context of local transport strategies or tendering of bus services. The data is limited in subsection (2) to passenger journeys, bus mileage and fare structures. There is a requirement in subsection (3) to produce it in any reasonable form; and in subsections (4) and (5) not to disclose it except with consent or in other specified circumstances.

72. A local transport authority that, without reasonable excuse, discloses information other than in accordance with subsections (4) and (5) commits an offence and is liable on conviction to a fine not exceeding level 5 on the standard scale. In certain circumstances an employee of the authority can also commit an offence and be subject to the same penalties as the authority.

Section 44     Civil penalties for bus lane contraventions

73. This section enables the Scottish Ministers to make regulations allowing "approved" local authorities to impose civil penalties on motorists committing certain bus lane driving offences. Where such a scheme exists, the offences in question will have been decriminalised and the local authority enforcing the scheme will be able to retain receipts received through the penalties imposed. The receipts will, however, have to be used by the local authority for the purposes of achieving policies set out in their local transport strategy.

74. A local authority will be regarded as being "approved" for the purpose of this section if an order has been made designating the whole or part of their area as a permitted or special parking area or the Scottish Ministers have made an order specifying them as such.

Section 45     Registered services: minimum period of operation

75. This section amends section 6 of the Transport Act 1985 in order to require operators of local services to operate new or varied registered services for a period of at least 90 days, or such other period as the traffic commissioner may specify.

Section 46     Power to restrict dates on which scheduled timings of local services may be varied

76. This section amends section 6 of the Transport Act 1985 to enable the Scottish Ministers, by regulations, to restrict the dates on which operators of local services may vary a registration in so far as it relates to the scheduled times of that local service. The regulations may specify the local authority area or areas which are to be subject to such a restriction. Such regulations cannot specify more than 4 dates in any calendar year on which a registration may be varied, and they cannot have effect for a period of more than 3 years.

Section 47     Co-operation

77. This section requires local transport authorities, when carrying out their functions under this Act in relation to QP, QC and ticketing schemes and the provision of information to have regard to the desirability of joint arrangements with other authorities and to co-operate with one another.

PART 3

ROAD USER CHARGING

Road user charging schemes

Section 49     Charging schemes

78. This section sets out the meaning of a road user charging scheme. A road user charging scheme may only be introduced by local authorities as the local traffic authorities, acting either singly or jointly. It will be for local authorities to decide whether or not they wish to bring forward a scheme. Subsection (2) provides that a charging scheme made by a local authority or authorities acting jointly may apply only to roads for which the charging authority or charging authorities are the traffic authority. This means that the charging authority have no powers to charge for the use of trunk roads, even where they fall within the area of a local charging scheme.

79. Subsection (3) provides that charging schemes should be introduced only where the charging authority have a local transport strategy (as defined in section 82(1)) setting out the authority's agreed policies for transport in their area. Section 79 provides that the Scottish Ministers may issue guidance relating to the preparation of strategies.

80. A charging scheme is defined in subsection (5) as a scheme for imposing charges on the use or keeping of motor vehicles on specified local roads. The term "keeping" is required to allow for the inspection of stationary vehicles in a paper-based area-licensing scheme. The keeper of the vehicle will usually be liable for the charge incurred, although there may be cases where the Scottish Ministers specify that other persons (e.g. the driver or the signatory of a hire agreement) are liable.

Section 50     Charging schemes to be made, varied and revoked by order

81. This section sets out the means by which a road user-charging scheme must be made. It states that a local authority or authorities acting jointly wanting to introduce a charging scheme must do it by making an order. If an authority want to change or revoke a scheme, this must also be done by order.

82. The Scottish Ministers are given power to make regulations as to the form and publication of orders and the consultation procedures relating to them.

Section 51     Confirmation of orders

83. This section sets out the means by which a road user-charging scheme must be confirmed. A charging scheme order cannot come into force without the approval of the Scottish Ministers. If a charging authority or authorities wish to vary or revoke a scheme by order, it too cannot come into force without the approval of the Scottish Ministers (subsection (1)).

84. The Scottish Ministers can define by means of regulations circumstances where subsection (1) will not apply. This will allow specified minor variations to a scheme, for example making slight alterations to the length of the charged period, to be made without ministerial confirmation.

85. The Scottish Ministers will be able to make modifications to the charging scheme order before they confirm it.

Section 52     Charging schemes: consultation and inquiries

86. This section defines the roles of charging authorities and the Scottish Ministers in relation to consulting on orders setting up, varying and revoking charging schemes.

87. Authorities will be able to consult others before deciding to introduce, vary or revoke an order. The Scottish Ministers will similarly be able to consult others or to require authorities to consult others about a proposed charging scheme or the variation or revocation of an existing charging scheme.

88. Subsections (3) and (4) enable the Scottish Ministers or authorities to hold an inquiry on the making, variation or revocation of a scheme themselves and to appoint a person or persons to adjudicate on such an inquiry. Subsection (5) provides that the Scottish Ministers may set out in regulations particular circumstances in which an inquiry will be required.

Section 53     Matters to be dealt with in charging schemes

89. This section sets out the basic elements that must be included in the order establishing the charging scheme. It allows the authority to make detailed provision on how exactly a scheme will operate in their area. It is for the charging authority to determine what is included in the order under each of the basic elements.

90. In summary, an order will set out the roads which are to be charged, how the charges are to be defined, the classes of motor vehicle which will be charged (and those which are exempt or eligible for reduced rates of charge), the levels of charge, the duration of the scheme, and matters relating to the collection, payment and recording of charges. It is for the charging authority to determine these matters.

91. Subsection (3) ensures that charging powers cannot be used purely as a charge on parked vehicles.

92. Some of the factors by reference to which different charges might be imposed are described in subsection (4), but this is not an exhaustive list. This gives local authorities a degree of flexibility as to how they may raise a charge so that the scheme might best meet their local policy aspirations. Thus they might, for example, decide to vary the charge to reflect the most congested times of the day. Alternatively, they might view the charging scheme as a device to reduce peak time commuting to work and simply not charge in the evenings or at the weekend.

93. Subsection (5) allows authorities to increase charges in line with inflation (as defined by the retail prices index) on specified dates, if they so wish. An authority must make it clear during consultation if they wish to increase charges in this way over the lifetime of the scheme.

94. Authorities will be required to set the level of the charge with regard to the purposes for which they intend to use the net proceeds. The Scottish Ministers do not intend to approve any charging scheme designed simply to be a revenue raiser and will expect authorities to have an estimate before introducing a scheme of how much the scheme will raise and what local transport improvements they intend to fund with the net proceeds.

95. A charging scheme may require documents or equipment to be carried in or fitted to a vehicle when it is on a charged road. This gives charging authorities power to ensure that everyone who enters a scheme must have a permit or electronic payment unit in their vehicle, or be liable to pay a penalty charge.

Section 54     Charging schemes: exemptions etc.

96. This section enables the Scottish Ministers to make regulations to set national exemptions from charges or apply reduced rates of charges. Subsection (2) ensures that no road will be subject to double charging because it is covered by more than one charging scheme.

Section 55     Penalties and liabilities for charges

97. Sections 55 and 56 allow the Scottish Ministers to make regulations to provide for the fair and effective enforcement of road user charging schemes. This includes arrangements for adjudication. The Act provides that non-payment of a road user charge will be a civil matter rather than a criminal offence, and outstanding charges will be recoverable as a civil debt. Removing a charging scheme penalty notice without good reason will however be a criminal offence. Deliberate tampering with any in-vehicle or roadside equipment with intent to avoid payment is identified as being of a more serious nature and will therefore be subject to greater maximum criminal penalties. The various subsections set out the power to make regulations covering each element.

98. Subsection (2) sets out the powers to make regulations covering penalties, including surcharges or discounts. This would allow the charging authority, for example, to increase the level of fines for persistent offenders or late payment, or offer a discount for the prompt payment of a fine.

99. Subsection (3) makes it clear that the registered keeper of the vehicle will generally be liable to pay any road user charge and any penalty notice. However, there will be instances where the keeper of the vehicle is not responsible, including where the vehicle has been stolen or where the vehicle in question is owned by a hire company. Regulations will set out the detail.

100. The level of fines is in line with standard criminal offences and penalties.

Section 56     Examination, immobilisation and removal of vehicles etc.

101. This section provides powers for the Scottish Ministers to make regulations to allow enforcement actions such as the examination or entering of vehicles in order to establish whether the correct documentation is displayed, and whether the specified equipment is fitted in a correct manner, is in good working order or has been unlawfully tampered with. Subsection (2) allows the charging authority to authorise individuals to act as enforcement officers. Anyone who obstructs an authorised person acting in the exercise of these powers commits a criminal offence and is liable on summary conviction to a fine not exceeding the statutory maximum, or on conviction on indictment to a fine. The Scottish Ministers may also by regulations allow for the immobilisation of vehicles and the fixing of notices to such vehicles, the removal and storage of vehicles and the release, sale or destruction of vehicles. Subsection (8) provides that these powers shall only be used if a vehicle is on a road.

Section 57     Equipment etc.

102. This section allows charging authorities to install and maintain any equipment or building in connection with the effective operation of a charging scheme. The Scottish Ministers are given powers to make regulations setting out the standards for equipment installed or authorised to be installed.

Section 58     Traffic signs

103. This section allows the Scottish Ministers to direct a charging authority to put up traffic signs on land in relation to a charging scheme.

Section 59     Non-domestic rating exemption

104. This section amends the Valuation and Rating (Scotland) Act 1956 to ensure that roads which are part of a charging scheme do not become liable for non-domestic rates. Further, it provides that buildings (apart from office buildings) that are solely used in connection with a charging scheme are exempt from non-domestic rates. This is required to exclude the necessary road side equipment structures associated with a charging scheme, such as gantries, booths or buildings housing electronic equipment.

Supplementary

Section 61     Powers of charging authorities

105. This section allows charging authorities to spend money developing, setting up and operating a charging scheme and to enter into contracts with third parties in connection with the setting up and operation of a scheme. This will allow authorities, for example, to enter into a contract with a private company for the installation and maintenance of electronic equipment at the roadside.

Section 62     Grants to charging authorities

106. This section enables the Scottish Ministers to make grants to assist authorities interested in bringing forward a charging scheme. The payment of such a grant does not commit an authority to introduce a charging scheme; nor does it commit the Scottish Ministers to approve any particular scheme.

Section 63     Information

107. This section allows various bodies carrying out statutory functions to share information in relation to charging schemes. This will allow, for example, information needed for enforcement purposes to be given by the Driver and Vehicle Licensing Agency to the charging authority.

Section 64     Determination of disputes, appeals and evidence

108. This section gives the Scottish Ministers a power to make regulations to provide for appeals and adjudication in respect of charging schemes.

Section 65     Offences by bodies corporate and partnerships

109. This section sets out the circumstances in which an officer of a body corporate or a partner of a Scottish partnership is also guilty of an offence committed by the body or partnership.

PART 4

MISCELLANEOUS AND GENERAL

Section 68     Travel concession schemes

110. This section gives the Scottish Ministers the power, by order, to require local authorities, either acting alone or jointly with other local authorities, to provide a minimum level of travel concession for pensioners and disabled people.

111. The Scottish Ministers may by order require local transport authorities to provide a minimum level of travel concession for eligible persons i.e. elderly and disabled people, on eligible services which are defined in subsection (7) as including bus services, ferry services and others services which the Scottish Ministers may by order specify. The Scottish Ministers may also by order extend eligibility for travel concessions to other specified groups.