PART 1 SOCIAL CARE

CHAPTER 1 PROVISION OF SOCIAL CARE SERVICES TO CHILDREN: RESTRICTIONS ON PROFIT

Regulation of social care services provided to children

3 Applications for registration in respect of restricted children’s services
(1) The 2016 Act is amended as follows.
(2) In section 6, after subsection (1) insert—

“(1A) In the case of a person, other than a local authority, who wants to provide a restricted children’s service, the application must also include such information as may be prescribed to satisfy the Welsh Ministers that the person meets the requirement in section 6A(1).”

(3) After section 6 insert—

“6A Registration in respect of a restricted children’s service
(1) To be registered in respect of a restricted children’s service, a person who is not a local authority must be a not-for-profit entity.
(2) For the purposes of this Part, a “not-for-profit entity” is a person that meets conditions 1 and 2 in subsections (3) and (4).
(3) Condition 1 is that the person’s objects or purposes primarily relate to—
(a) the welfare of children, or
(b) such other public good as the Welsh Ministers may prescribe.
(4) Condition 2 is that the person is one of the following types of undertaking (as defined in section 6B)—
(a) a charitable company limited by guarantee without a share capital,
(b) a charitable incorporated organisation,
(c) a charitable registered society, or
(d) a community interest company limited by guarantee without a share capital.

6B Registration in respect of a restricted children’s service: definitions
(1) The following definitions apply for the purposes of section 6A(4).
(2) A “charitable company limited by guarantee without a share capital” is a company—
(a) that is registered under the Companies Act 2006 (c. 46) in Wales, England, Scotland or Northern Ireland,
(b) whose liability is limited by guarantee and that does not have a share capital, and
(c) that is a charity registered under one or more of—
(i) the Charities Act 2011 (c. 25);
(ii) the Charities and Trustee Investment (Scotland) Act 2005 (asp 10);
(iii) the Charities Act (Northern Ireland) 2008 (c. 12).
(3) A “charitable incorporated organisation” is an organisation registered under—
(a) section 209, 232 or 238 of the Charities Act 2011 or regulations made under section 234 of that Act,
(b) section 55, 58 or 60 of the Charities and Trustee Investment (Scotland) Act 2005, or
(c) section 111, 114 or 117 of the Charities Act (Northern Ireland) 2008 or regulations made under section 115 of that Act.
(4) A “charitable registered society” is—
(a) a society that is—
(i) a “registered society” within the meaning of section 1(1) of the Co-operative and Community Benefit Societies Act 2014 (c. 14), and
(ii) a charity within the meaning of section 1(1) of the Charities Act 2011,
(b) a society that is—
(i) a “registered society” within the meaning of section 1(1) of the Co-operative and Community Benefit Societies Act 2014, and
(ii) a charity registered under the Charities and Trustee Investment (Scotland) Act 2005, or
(c) a society that is—
(i) a “registered society” within the meaning of section 1A(1) of the Co-operative and Community Benefit Societies Act (Northern Ireland) 1969 (c. 24), and
(ii) a charity registered under the Charities Act (Northern Ireland) 2008.
(5) A “community interest company limited by guarantee without a share capital” is a company—
(a) that is registered under the Companies Act 2006 in Wales, England, Scotland or Northern Ireland,
(b) whose liability is limited by guarantee and that does not have a share capital, and
(c) that is a community interest company under Part 2 of the Companies (Audit, Investigations and Community Enterprise) Act 2004 (c. 27).
(6) In subsections (2) and (5)—
(a) references to a company’s liability being “limited by guarantee” have the meaning given by section 3(3) of the Companies Act 2006, and
(b) a company does not have a share capital if it does not have power under its constitution to issue shares‍.”

S. 3 not in force at Royal Assent, see s. 29(2)