The Public Service Vehicles (Registration of Local Services) (Franchising Schemes Transitional Provisions and Amendments) (England) Regulations 2018

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations make provision about local services with stopping places in England only, and cater for the transition of the bus market into, and out of, franchising. They make provision about registrations, variations and cancellations when a franchising scheme has been made but before sections 6 to 9 (registration of local services) of the Transport Act 1985 (“1985 Act”) cease to have effect in a franchising scheme area. They also make provision which enable services which could not otherwise be registered when a franchising scheme is in operation, to be registered, varied or cancelled, and provide that the relevant notice period in relation to such services expires when a service no longer has a stopping place in any franchising scheme area.

A franchising scheme is made under the Transport Act 2000 (“2000 Act”). Under such a scheme a franchising authority or authorities determine the local services in the area to which their scheme relates. Where a scheme is in operation, sections 6 to 9 of the 1985 Act (registration of local services) cease to have effect, and the prohibition on the provision of certain local services set out in section 123J(3) of the 2000 Act (“the prohibition”) has effect. The prohibition means that a local service may only be provided under a local service contract or a service permit, or if it is an interim service. These provisions do not affect local services that are excepted by a provision in a franchising scheme or provided by using a vehicle under a permit granted under section 22 of the 1985 Act. A local service contract is an agreement under which the franchising authority or authorities grant to another person the exclusive right to operate local services to which the contract relates, and the person undertakes to provide the local services on such terms as may be specified in the agreement.

Regulation 3 requires a franchising authority or authorities to include in their franchising scheme, and in any notice of a decision to vary their franchising scheme by adding an area to it (“expansion notice”), the date on which a local service may first be provided under a local service contract in their franchising scheme area or in the area added to that area. It also requires a franchising scheme or expansion notice to be updated if that date changes.

Regulation 4 provides that a franchising authority or authorities may publish a notice which provides that when an application to vary or cancel a service with a stopping place in their franchising scheme area is accepted by a traffic commissioner before their franchising scheme comes into operation, the period that must expire before the variation or cancellation is effective is the period specified in the notice (“transitional notice”). If a service has a stopping place in more than one franchising scheme area and more than one transitional notice relates to that service, regulation 4 provides that the period that applies is the longest specified in any of those notices. Where an application is only to enable an operator to comply with a traffic regulation condition or other such restriction, or only in respect of a change of address, the notice period ends on the date given to a traffic commissioner by an operator. A transitional notice must be published at the same time as a franchising scheme or expansion notice, and must not specify a period longer than 112 days. The notice may specify different periods for different cases and may provide for a notice period to have effect immediately after a traffic commissioner has accepted an application. The franchising authority or authorities must inform a traffic commissioner of the publication of the notice.

Regulation 5 provides that there is a short notice period for applications to register certain services which have a stopping place in a franchising scheme area and which are accepted in the period leading up to a franchising scheme coming into operation. This regulation applies to applications in relation to services provided pursuant to an agreement with a franchising authority or authorities. The period of notice in relation to those applications is the date given to a traffic commissioner by the operator.

Regulation 6 provides that a traffic commissioner must not accept an application to register, vary or cancel a service, other than an excepted service or an exempt service, received before sections 6 to 9 of the 1985 Act cease to have effect in any franchising scheme area in which the service to which the application relates has a stopping place, once those sections cease to have effect.

Regulation 7 provides that certain provisions in the 1985 Act, certain provisions in the Public Service Vehicles (Registration of Local Services) Regulations 1986 (“the 1986 Regulations”) and the Public Service Vehicles (Registration Restrictions) (England and Wales) Regulations 2009 (“the 2009 Regulations”), which would not have effect as a result of the application of section 123J of the 2000 Act, nevertheless have effect in order to facilitate the registration of services, and the variation and cancellation of such services, in the period when a franchising scheme is in operation. It also provides that a traffic commissioner is able to accept applications in that period other than applications received later than 70 days before the reduction or revocation of a franchising scheme has effect (“cut-off date”). A traffic commissioner must, however, accept an application after the cut-off date if it is in relation to a service provided pursuant to an agreement with a franchising authority or authorities. This regulation does not permit an operator to operate a service that has been registered during the period of operation of a franchising scheme

Regulation 8 provides that where an application is received to register a service before the cut-off date, the notice period expires on the latest date any franchising scheme ceases to have effect in an area in which the service has a stopping place. Regulation 9 makes similar provision in relation to applications to vary or cancel a service.

Regulation 10 introduces a Schedule which amends, in their application to England, two sets of Regulations. The 1986 Regulations are amended so as to ensure that in circumstances when these Regulations apply, the relevant regulations in the 1986 Regulations do not apply; and require a traffic commissioner to cancel the registration of a service when the prohibition set out in section 123J(3) of the 2000 Act requires a service to cease. The Schedule also amends the 2009 Regulations to ensure that when a traffic commissioner determines a notice period or date in relation to an application to which registration restrictions relate, and the application is accepted when a franchising scheme is in operation, the expiry date is no earlier than the latest date on which the service to which the application relates ceases to have a stopping place in an area to which a franchising scheme relates.

A full impact assessment has not been published for these Regulations. However, an assessment has been made of the impact of the Bus Services Act 2017. Copies of that impact assessment may be obtained from the Buses and Taxis Division, Department for Transport, 2/14 Great Minster House, 33 Horseferry Road, London, SW1P 4DR or from the Department for Transport website: https://www.gov.uk/government/pubications/bus-services-bill-impact-assessments.

An Explanatory Memorandum is published alongside the instrument at www.legislation.gov.uk.