Bus Services (Wales) Act 2026

2026 asc 2

An Act of Senedd Cymru to make provision in connection with the regulation and provision of local bus services in Wales; and for connected purposes.

[2 February 2026]

Having been passed by Senedd Cymru and having received the assent of His Majesty, it is enacted as follows:

PART 1 KEY CONCEPTS AND GENERAL OBJECTIVES

Key concepts

1 Meaning of “local bus service”

(1) For the purposes of this Act, a local bus service is a service for the carriage of passengers by road at separate fares, using one or more public service vehicles, that—

(a) meets the condition in subsection (3), and

(b) has one or more embarkation or disembarkation points in Wales.

(2) But references in this Act to a local bus service do not include references to—

(a) a section 19 service (for which see section 44(1));

(b) a Part 3 of Schedule 1 service (for which see section 44(1));

(c) an excursion or tour;

(d) a rail replacement service.

(3) A service meets the condition in this subsection if, in the case of each of its embarkation points—

(a) the next disembarkation point is under 15 miles away (when measured in a straight line), and

(b) there is no point on the route between that embarkation point and that disembarkation point that is 15 miles away, or more than 15 miles away, from either of them (when measured in a straight line).

(4) For the purposes of this section—

(a) “public service vehicle” has the meaning given in section 1 of the 1981 Act;

(b) “excursion or tour” has the meaning given in section 137(1) of the 1985 Act;

(c) a “rail replacement service” is a service for the carriage of passengers, as a substitute for a railway passenger service that is temporarily interrupted or that has been discontinued.

(5) Where a part of a non-qualifying service would meet the condition in subsection (3) if that part were a service in its own right, that part is itself to be treated as being a local bus service for the purposes of this Act other than the duty in section 5(1)(a).

(6) For the purposes of subsection (5) a “non-qualifying service” is a service (other than one within subsection (2)) for the carriage of passengers by road at separate fares, using one or more public service vehicles, which has one or more embarkation or disembarkation points in Wales, but which does not meet the condition in subsection (3).

(7) Subsection (5)(b) and (c) of section 1 of the 1981 Act (meaning of “fares”) applies for the purposes of this section.

2 Meaning of “embarkation point” and “disembarkation point”

In this Act—

(a) references to an “embarkation point”, in relation to a service, are to any point on its route at which embarkation onto the service is permitted (whether or not passengers are also permitted to disembark from the service at that point);

(b) references to a “disembarkation point”, in relation to a service, are to any point on its route at which disembarkation from the service is permitted, otherwise than in the case of an emergency (whether or not passengers are also permitted to embark on the service at that point).

3 Meaning of “flexible local bus service” and “standard local bus service”

In this Act—

(a) references to a “flexible local bus service” are to a local bus service which, regardless of the existence of any limited fixed sections of route, is in the entirety of its operation so flexible that it would not be practicable to identify its route for the purposes of the Welsh Bus Network Plan (see section 5(1)(b));

(b) references to a “standard local bus service” are to a local bus service that is not a flexible local bus service.

Objectives

4 Welsh Ministers’ duty to have regard to objectives

(1) In exercising any function under this Act, the Welsh Ministers must have regard to the following objectives.

(2) The first objective is to promote the use of local bus services.

(3) The second objective is continuously to improve the reliability, safety, affordability and accessibility of local bus services.

(4) The third objective is to work towards increasing the availability of local bus services.

(5) The fourth objective is to work towards achieving an integrated transport system.

(6) The fifth objective is to facilitate passenger journeys that involve using more than one local bus service.

(7) The sixth objective is to reduce greenhouse gas emissions and waste from road transport.

(8) The seventh objective is to facilitate access by passengers using local bus services to places where education, training, health services or social care services are provided.

(9) The eighth objective is to work towards removing or reducing barriers that disincentivise the use of local bus services.

(10) In this section—

(a) “education” includes higher education;

(b) “greenhouse gas” has the same meaning as in Part 2 of the Environment (Wales) Act 2016 (anaw 3);

(c) “health services” means services provided under section 3 of the National Health Service (Wales) Act 2006 (c. 42) (including services regarded for the purposes of the duty in subsection (1) of that section as being provided under that duty);

(d) “social care services” means services that are treated as being regulated services for the purposes of the Regulation and Inspection of Social Care (Wales) Act 2016 (anaw 2).

PART 2 FUNCTIONS OF THE WELSH MINISTERS RELATING TO LOCAL BUS SERVICES

Core duties of the Welsh Ministers

5 Local bus services: core duties

(1) The Welsh Ministers must—

(a) determine the local bus services that they consider are required for the purpose of securing safe, integrated, sustainable, efficient and economic transport in Wales,

(b) publish a plan (to be known as the “Welsh Bus Network Plan”) setting out the key particulars of those local bus services, and

(c) so far as reasonably practicable, secure the provision of those local bus services.

(2) For the purposes of subsection (1)(b), the key particulars of a service are—

(a) in the case of a standard local bus service, the route and principal embarkation and disembarkation points that the Welsh Ministers consider are required for the purposes of the provision of that service;

(b) in the case of a flexible local bus service—

(i) the geographical area in which the Welsh Ministers consider that service is required to operate;

(ii) any fixed sections of route that the Welsh Ministers consider to be required for the purposes of the provision of that service;

(iii) any fixed embarkation or disembarkation points that the Welsh Ministers consider to be required for the purposes of the provision of that service.

(3) For further provision relating to the Welsh Bus Network Plan, see sections 6 to 8.

(4) For an exception to the duty in subsection (1)(c) in the case of cross-border services, see section 20 (cross-border services and the duty to secure the provision of services).

(5) Where the Welsh Ministers are required by this section to secure the provision of a local bus service, they may secure that service by doing any one or more of the following—

(a) entering into a local bus service contract in respect of a local bus service under section 10;

(b) granting a permit in respect of a local bus service under section 12;

(c) providing a local bus service under section 18;

(d) relying on the provision of a service as described in section 19.

(6) The Welsh Ministers must, before the end of the period of 12 months beginning on the day after the day on which this Act receives Royal Assent, lay before Senedd Cymru a statement on preparations for the coming into force of section 5(1)(c).

(7) The statement must, in particular, address preparations in relation to organisational capacity.

Welsh Bus Network Plan

6 Preparation of Welsh Bus Network Plan

(1) Before publishing the Welsh Bus Network Plan under section 5(1)(b), the Welsh Ministers must prepare a draft of the Plan.

(2) In preparing the draft of the Welsh Bus Network Plan, the Welsh Ministers must seek the views of every local authority.

(3) The Welsh Ministers must also, in preparing the draft of the Welsh Bus Network Plan, have regard to each of the following—

(a) the Wales Transport Strategy;

(b) each regional transport plan having effect under section 109A of the Transport Act 2000 (c. 38);

(c) the functions of local authorities under the Learner Travel (Wales) Measure 2008 (nawm 2).

(4) Having prepared the draft of the Welsh Bus Network Plan, the Welsh Ministers must, before publishing the Plan, consult each of the following persons on the draft—

(a) every local authority;

(b) each corporate joint committee established by regulations made under Part 5 of the Local Government and Elections (Wales) Act 2021 (asc 1);

(c) the National Park authority for each National Park in Wales;

(d) any persons appearing to the Welsh Ministers to represent the interests of operators of local bus services that the Welsh Ministers consider appropriate;

(e) any persons appearing to the Welsh Ministers to represent the interests of employees of operators of local bus services that the Welsh Ministers consider appropriate;

(f) any persons appearing to the Welsh Ministers to represent the interests of persons using or likely to use local bus services that the Welsh Ministers consider appropriate;

(g) any other person that the Welsh Ministers consider appropriate.

(5) Having consulted those persons on the draft of the Welsh Bus Network Plan, the Welsh Ministers may publish the Plan under section 5(1)(b) either in the terms of the draft or, if they consider it appropriate having regard to any views expressed in the course of the consultation, in other terms.

(6) As soon as practicable after publishing the Welsh Bus Network Plan under section 5(1)(b), the Welsh Ministers must lay it before Senedd Cymru.

(7) The requirement imposed by subsection (1) to prepare a draft of the Welsh Bus Network Plan may be satisfied by a draft prepared before the coming into force of this section.

(8) The requirement imposed by subsection (2) that the Welsh Ministers seek views in preparing a draft of the Welsh Bus Network Plan may be satisfied by seeking views before the coming into force of this section.

(9) The requirement imposed by subsection (4) to consult on a draft of the Welsh Bus Network Plan may be satisfied by consultation carried out before the coming into force of this section.

7 Review and revision of Welsh Bus Network Plan

(1) The Welsh Ministers must keep the Welsh Bus Network Plan under review.

(2) The Welsh Ministers—

(a) must make any revision to the Welsh Bus Network Plan that they consider is required to ensure that it continues to set out the key particulars referred to in section 5(2);

(b) may make any other revision to the Welsh Bus Network Plan that they consider appropriate.

(3) But subsection (2)(a) does not require the Welsh Ministers to revise the Welsh Bus Network Plan to reflect any steps taken in respect of a local bus service that would (but for this subsection) require revision to the Plan, if the Welsh Ministers consider that the period for which those steps will have effect will not exceed 14 days.

(4) In considering whether to revise the Welsh Bus Network Plan and the nature of any revision, the Welsh Ministers must have regard to each of the following—

(a) the Wales Transport Strategy;

(b) if they consider that the proposed revision may affect any part of the area of a corporate joint committee established by regulations made under Part 5 of the Local Government and Elections (Wales) Act 2021, that committee’s regional transport plan having effect under section 109A of the Transport Act 2000 (c. 38);

(c) the functions of local authorities under the Learner Travel (Wales) Measure 2008 (nawm 2).

(5) After making any revision to the Welsh Bus Network Plan, the Welsh Ministers must as soon as reasonably practicable publish the revised Welsh Bus Network Plan.

(6) If the Welsh Ministers make any revision to the Welsh Bus Network Plan after the most recent date on which it was laid before Senedd Cymru (either under this section or section 6) they must, within the period of 13 months beginning with the date on which the Plan was most recently laid before Senedd Cymru, lay before Senedd Cymru—

(a) a further copy of the Welsh Bus Network Plan, and

(b) a statement setting out the differences between that further copy of the Plan, and the preceding copy of the Plan laid before Senedd Cymru.

(7) Section 8 makes further provision about revisions to the Welsh Bus Network Plan.

8 Further provision about revisions to the Welsh Bus Network Plan

(1) This section applies in relation to any revision to the Welsh Bus Network Plan that the Welsh Ministers propose to make (a “proposed revision”), unless the Welsh Ministers consider—

(a) that the effect of the proposed revision on the provision of local bus services would be no more than minor, or

(b) that it would not be reasonably practicable to carry out consultation on the proposed revision as described in subsection (4).

(2) Before making the proposed revision, the Welsh Ministers must prepare a draft of the Welsh Bus Network Plan incorporating the proposed revision (the “revised draft Plan”).

(3) In preparing the revised draft Plan, the Welsh Ministers must, if they consider that the proposed revision may affect any part of the area of a local authority, seek the views of that authority.

(4) Having prepared the revised draft Plan, the Welsh Ministers must, before making the proposed revision to the Welsh Bus Network Plan, consult each of the following persons on the proposed revision—

(a) where the Welsh Ministers consider the proposed revision may affect any part of the area of a local authority, that authority;

(b) where the Welsh Ministers consider the proposed revision may affect any part of the area of a corporate joint committee established by regulations made under Part 5 of the Local Government and Elections (Wales) Act 2021 (asc 1), that committee;

(c) where the Welsh Ministers consider the proposed revision may affect any part of the area of a National Park authority for a National Park in Wales, that authority;

(d) any persons appearing to the Welsh Ministers to represent the interests of operators of affected local bus services that the Welsh Ministers consider appropriate;

(e) any persons appearing to the Welsh Ministers to represent the interests of employees of operators of affected local bus services that the Welsh Ministers consider appropriate;

(f) any persons appearing to the Welsh Ministers to represent the interests of persons using or likely to use affected local bus services that the Welsh Ministers consider appropriate;

(g) any other person that the Welsh Ministers consider appropriate.

(5) For the purposes of that consultation, the Welsh Ministers must provide each of those persons with a copy of the revised draft Plan.

(6) Having consulted those persons on the proposed revision, the Welsh Ministers may revise the Welsh Bus Network Plan either in the terms of the revised draft Plan or, if they consider it appropriate having regard to any views expressed in the course of the consultation, in other terms.

(7) In this section, references to “affected local bus services”, in relation to consultation on a proposed revision, are to local bus services that the Welsh Ministers consider would be affected by the proposed revision.

9 Revision of Welsh Bus Network Plan: local authority duties

(1) This section applies where the views of a local authority are sought under section 8(3).

(2) The local authority must, in giving its views, have regard to the needs of persons in its area who it considers use, or are likely to use, local bus services affected by the proposed revision, including in particular their needs relating to the accessibility of local bus services; and must consider whether for this purpose it should carry out consultation with persons in its area on the proposed revision.

Local bus service contracts

10 Local bus service contracts

(1) The Welsh Ministers may, for the purposes of fulfilling their duty under section 5(1)(c) in respect of a local bus service, enter into an agreement under this section (referred to in this Act as a “local bus service contract”) in respect of a service.

(2) A local bus service contract is a contract, in respect of a local bus service, setting out terms on which—

(a) the Welsh Ministers grant to a person within subsection (3) the right to operate the service, and

(b) that person undertakes to provide the service.

(3) The persons within this subsection are—

(a) a person who is the holder of a community bus permit;

(b) a person who is the holder of a PSV operator’s licence.

(4) In the case of a local bus service contract entered into with a person within subsection (3)(a) in respect of a service that is a community bus service, the terms specified in the contract must require that—

(a) the service in question is provided as a community bus service, and

(b) each vehicle used in providing the service is so used under and in accordance with the terms of‍ a community bus permit.

(5) The reference in subsection (3)(b) to a PSV operator’s licence does not include—

(a) a licence to which a condition is attached under section 26(1A) of the 1985 Act (power of traffic commissioner to attach conditions to licences) prohibiting the holder from using vehicles under the licence to provide local bus services of all descriptions, or of a description specified in the condition;

(b) a licence that has been suspended under section 17(2) of the 1981 Act or section 28(2) of the 1985 Act.

11 Power to make supplementary provision about local bus service contracts

(1) Regulations may make provision about terms that must be included in a local bus service contract.

(2) That provision may relate to any of the following matters (among others)—

(a) punctuality, reliability and safety;

(b) frequency and timing;

(c) routes and areas of operation;

(d) arrangements for determining when passengers are taken up or set down;

(e) embarkation points and disembarkation points;

(f) booking journeys;

(g) record keeping;

(h) vehicles (including facilities to be made available and information to be displayed on vehicles), vehicle emissions, and types of fuel or power;

(i) connections to public passenger transport services and to section 19 services;

(j) passenger journeys involving travel on more than one local bus service, or travel on both a local bus service and public passenger transport services or section 19 services;

(k) ticketing, fares, and how entitlement to travel may be evidenced;

(l) education and training;

(m) interaction with customers, including in connection with customer feedback, and procedures for dealing with complaints and incidents;

(n) compliance with statutory requirements;

(o) incentives for improving the quality of a service;

(p) facilities and amenities to be made available to any person;

(q) payments to any person.

(3) Regulations under subsection (1) may—

(a) set out a standard form for terms that must be included in a local bus service contract;

(b) prescribe circumstances in which that standard form may or must be used in a local bus service contract.

Local bus service permits

12 Local bus service permits

(1) If the Welsh Ministers consider that the requirements in subsection (3) are met, they may (whether for the purposes of fulfilling their duty under section 5(1)(c) in respect of a local bus service, or otherwise) grant a permit under this section to a person within subsection (4).

(2) A permit granted under this section (referred to in this Act as a “local bus service permit”) is a permit, in respect of a local bus service, under which the person to whom the permit is granted is authorised to provide the service during the period for which the permit has effect.

(3) The requirements are that granting the permit—

(a) would not have a material adverse impact on a local bus service provided under a local bus service contract, or provided by the Welsh Ministers under section 18;

(b) would not be inconsistent with the policies and proposals set out in the Wales Transport Strategy.

(4) The persons within this subsection are—

(a) a person who is the holder of a community bus permit;

(b) a person who is the holder of a PSV operator’s licence.

(5) The reference in subsection (4)(b) to a PSV operator’s licence does not include—

(a) a licence to which a condition is attached under section 26(1A) of the 1985 Act (power of traffic commissioner to attach conditions to licences) prohibiting the holder from using vehicles under the licence to provide local bus services of all descriptions, or of a description specified in the condition;

(b) a licence that has been suspended under section 17(2) of the 1981 Act or section 28(2) of the 1985 Act.

(6) The Welsh Ministers may grant a permit to which conditions are attached (for further provision about conditions see section 14).

13 Period for which local bus service permit has effect

(1) A local bus service permit must specify the period for which it has effect.

(2) A local bus service permit ceases to have effect—

(a) with the expiry of the period specified under subsection (1), or

(b) on its revocation under section 16 before the expiry of that period.

(3) A local bus service permit that has been suspended under section 16 has no effect during any period for which the suspension has effect.

14 Conditions attached to local bus service permits

(1) In the case of a local bus service permit granted to a person within section 12(4)(a) in respect of a service that is a community bus service, the Welsh Ministers must attach a condition to the permit requiring that—

(a) the service in question is provided as a community bus service, and

(b) each vehicle used in providing the service is so used under and in accordance with the terms of‍ a community bus permit.

(2) Regulations may make provision about further conditions that must be attached to a local bus service permit.

(3) That provision may relate to any of the following matters (among others)—

(a) punctuality, reliability and safety;

(b) frequency and timing;

(c) routes and areas of operation;

(d) arrangements for determining when passengers are taken up or set down;

(e) embarkation points and disembarkation points;

(f) booking journeys;

(g) record keeping;

(h) vehicles (including facilities to be made available and information to be displayed on vehicles), vehicle emissions, and types of fuel or power;

(i) connections to public passenger transport services and to section 19 services;

(j) passenger journeys involving travel on more than one local bus service, or travel on both a local bus service and public passenger transport services or section 19 services;

(k) ticketing, fares, and how entitlement to travel may be evidenced;

(l) education and training;

(m) interaction with customers, including in connection with customer feedback, and procedures for dealing with complaints and incidents;

(n) compliance with statutory requirements;

(o) incentives for improving the quality of a service;

(p) facilities and amenities to be made available to any person;

(q) payments to any person.

(4) The Welsh Ministers may, after a local bus service permit has been granted, remove a condition attached to the permit by giving notice of this to the permit holder and with effect from a date specified in the notic‍e.

(5) If the condition in subsection (6) or (7) is met, the Welsh Ministers may, after a local bus service permit has been granted, by giving notice of this to the permit holder and with effect from a date specified in the notice, vary the permit by—

(a) revising a condition attached to the permit;

(b) attaching a new condition to the permit.

(6) The condition is that the variation is made in consequence of provision made under subsection (2).

(7) The condition is that the permit holder has agreed to—

(a) the variation of the permit as set out in the notice, and

(b) the date specified in the notice as the date from which the variation is to take effect.

(8) The date specified in a notice given under subsection (4) or (5) may be either the date on which the notice is given, or a subsequent date.

15 Applications for local bus service permits

(1) Regulations may make provision about applications for local bus service permits.

(2) Regulations under this section may, among other things, make provision about—

(a) the form and content of an application;

(b) when and how an application is to be made;

(c) fees payable in connection with an application.

(3) If the Welsh Ministers refuse an application for a local bus service permit they must give notice of their reasons to the applicant.

16 Revocation and suspension of local bus service permits

(1) The Welsh Ministers may revoke or suspend a local bus service permit by giving notice to this effect to the person to whom the permit has been granted (the “permit holder”).

(2) The notice must specify—

(a) the ground on which the permit is revoked or suspended;

(b) when the revocation or suspension takes effect;

(c) in the case of the suspension of a permit, the period for which the suspension has effect (the “period of suspension”), and the conditions to be complied with before the expiry of that period.

(3) The grounds on which a local bus service permit may be revoked or suspended are—

(a) that there has been a failure to comply with a condition attached to the permit;

(b) that the continued provision of the service specified in the permit would endanger members of the public;

(c) in the case of a permit to which a condition has been attached under section 14(1)—

(i) that the permit holder‍ now holds no community bus permits, or

(iii) that, since the grant of the permit, a community bus permit held by the permit holder has been revoked under section 23(6) of the 1985 Act (whether or not the permit holder continues to hold other community bus permits);

(d) in the case of a permit to which a condition has not been attached under section 14(1)—

(i) that the permit holder‍ now holds no PSV operator’s licences,

(ii) that, since the grant of the permit, a PSV operator’s licence held by the permit holder has been suspended under section 17(2) of the 1981 Act (whether or not the permit holder continues to hold other PSV operator’s licences),

(iii) that, since the grant of the permit, a PSV operator’s licence held by the permit holder has been revoked under section 17(1) or (2) of the 1981 Act (whether or not the permit holder continues to hold other PSV operator’s licences), or

(iv) tha‍t, since the grant of the permit, a condition has been attached to a PSV operator’s licence held by the permit holder, under section 26(1A) of the 1985 Act, prohibiting the permit holder from using vehicles under the licence to provide local bus services of all descriptions, or of a description specified in the condition (whether or not the permit holder continues to hold other PSV operator’s licences to which no such condition has been attached);

(e) that the period of suspension specified in a notice given under subsection (1) in respect of the permit has expired without the conditions specified under subsection (2)(c) having been complied with.

(4) Subject to any provision made under subsection (5)(b), notice given under subsection (1) may specify under subsection (2)(b) that the revocation or suspension of a permit takes effect either on the date on which the notice is given, or on a subsequent date.

(5) Regulations—

(a) may modify subsection (3);

(b) may make provision about when the revocation or suspension of a local bus service permit takes effect.

17 Local bus service permits: appeals

(1) A person whose application for a local bus service permit is refused may appeal against the refusal.

(2) A person who has been granted a local bus service permit may appeal against any condition attached to the permit (including against revision of a condition).

(3) A person who has been granted a local bus service permit that is revoked may appeal against the revocation of the permit.

(4) A person who has been granted a local bus service permit that is suspended may appeal against—

(a) the suspension;

(b) the period specified under section 16(2)(c);

(c) the conditions specified under section 16(2)(c).

(5) An appeal is to be made to the First Tier Tribunal.

(6) On an appeal the First Tier Tribunal may—

(a) uphold the decision in respect of which the appeal is brought,

(b) quash the decision, or

(c) substitute another decision for the decision in respect of which the appeal is brought.

(7) In subsection (2), references to conditions do not include a reference to a condition attached to a local bus service permit in accordance with section 14(1).

Local bus services provided by the Welsh Ministers

18 Provision of local bus services by the Welsh Ministers

(1) The Welsh Ministers may, for the purposes of fulfilling their duty under section 5(1)(c) in respect of a local bus service, provide a local bus service if they are satisfied that doing so would be a more effective way of fulfilling that duty than entering into a local bus service contract under section 10 in respect of the service.

(2) Subsection (1) does not apply to a local bus service that is a community bus service.

Reliance on certain services

19 Reliance on community bus services and certain other services for the purposes of the section 5(1)(c) duty

(1) The Welsh Ministers may, for the purposes of fulfilling their duty under section 5(1)(c) in respect of a local bus service, rely on the provision by any person of a service within subsection (2) (without, in the case of a service in respect of which the powers in section 10 or 12 are available, entering into a local bus service contract or granting a local bus service permit in respect of the service).

(2) The services within this subsection are—

(a) a local bus service that is a community bus service;

(b) a local bus service provided as described in section 46(1) of the 1981 Act (paying passengers on school buses);

(c) a section 19 service;

(d) a Part 3 of Schedule 1 service.

Cross-border services

20 Cross-border services and the duty to secure the provision of services

(1) For the purposes of this section—

(a) a local bus service that is a standard local bus service is a cross-border service if—

(i) the route of the service is set out in the Welsh Bus Network Plan, and

(ii) that route is partly in Wales and partly in England;

(b) a local bus service that is a flexible local bus service is a cross-border service if—

(i) the service’s geographical area of operation is set out in the Welsh Bus Network Plan, and

(ii) that area is partly in Wales and partly in England;

(c) references to a cross-border service in England are to a cross-border service so far as—

(i) in the case of a standard local bus service, its route is in England;

(ii) in the case of a flexible local bus service, its area of operation is in England.

(2) Section 5(1)(c) is not to be treated as requiring the Welsh Ministers to secure the provision of a cross-border service in England if they consider that the condition in subsection (3) is met in relation to it.

(3) The condition is that the relevant transport needs will be met without the Welsh Ministers securing the provision of the cross-border service in England.

(4) For this purpose, “the relevant transport needs” are the transport needs in Wales that would be met by the Welsh Ministers securing the provision of the cross-border service in England.

(5) In considering whether the condition in subsection (3) is met, no account is to be taken of any provision secured by a county council in England under section 63 of the 1985 Act (functions of local councils with respect to transport).

Reporting requirements

21 Report on progress towards section 4 objectives

(1) The Welsh Ministers must prepare a report under this section, in relation to each reporting period, setting out the Welsh Ministers’ assessment of the way in which, and the extent to which, the exercise by the Welsh Ministers of functions under this Act during the reporting period has contributed to achieving the objectives in section 4.

(2) The Welsh Ministers must, no later than 12 months after the end of each reporting period—

(a) publish the report under this section that relates to that reporting period, and

(b) lay it before Senedd Cymru.

(3) In this section, the “reporting period” means—

(a) in the case of the first reporting period, the period of two years beginning with the day on which section 5(1)(c) comes into force (for any purpose or area);

(b) in the case of subsequent reporting periods, successive periods of four years.

(4) For the purposes of subsection (1), functions under this Act do not include a function exercisable under section 48.

Notification to be given to a traffic commissioner

22 Notification to be given to traffic commissioner of certain matters relating to local bus service contracts and permits

The Welsh Ministers must—

(a) as soon as reasonably practicable after a local bus service contract has been entered into under section 10, notify a traffic commissioner that the contract has been entered into;

(b) as soon as reasonably practicable after a local bus service permit has been granted under section 12, notify a traffic commissioner of the grant of the permit, and the period specified in the permit under section 13(1);

(c) as soon as reasonably practicable after a local bus service contract has terminated, whether under the terms of the contract or otherwise, notify a traffic commissioner of the termination;

(d) as soon as reasonably practicable after a local bus service permit has been revoked or suspended under section 16, notify a traffic commissioner of the revocation or suspension and, in the case of the suspension of a permit, the period for which the suspension has effect.

PART 3 RESTRICTION ON PROVIDING LOCAL BUS SERVICES

23 Restriction on providing local bus services

(1) A local bus service must not be provided in Wales unless—

(a) its provision in Wales is under a local bus service contract,

(b) its provision in Wales is under a local bus service permit, or

(c) it is provided in Wales by the Welsh Ministers under section 18.

(2) But subsection (1) does not apply to a local bus service—

(a) that is a community bus service, or

(b) that is provided as described in section 46(1) of the 1981 Act (paying passengers on school buses).

(3) Regulations may amend this section for the purposes of providing that subsection (1) applies or does not apply to a specified description of local bus service, or does or does not apply to a local bus service that is provided in a specified manner.

24 Duty on Welsh Ministers to inform traffic commissioner of any breach of the restriction

If the Welsh Ministers consider that a person is operating or has operated a local bus service in contravention of section 23 they must inform a traffic commissioner.

25 Enforcement of the restriction

(1) If a traffic commissioner is satisfied that—

(a) a person is operating or has operated a local bus service in contravention of section 23, and

(b) in operating that service, the person has failed to take all reasonable steps to avoid contravening the requirements of that section,

the traffic commissioner may make one or more orders under subsection (2).

(2) The orders are—

(a) an order that the person pay, within a time specified in the order, a penalty of any amount that the traffic commissioner thinks appropriate in all the circumstances of the case, but which does not exceed the upper limit;

(b) an order of any other description prescribed in regulations.

(3) If a person fails to comply with an order under subsection (2), and the condition in subsection (5) is met in respect of the order, a traffic commissioner may make an order under this subsection ordering the person to pay, within a period specified in the order, an additional penalty.

(4) The additional penalty may be any amount that the traffic commissioner thinks appropriate in all the circumstances of the case, but must not exceed 110% of the upper limit.

(5) The condition is that either—

(a) on an appeal under section 26 against the making of the order, the order has been upheld, or

(b) the period within which an appeal under section 26 against the making of the order may be brought to the Upper Tribunal has expired, without an appeal having been brought.

(6) After making an order under subsection (2) or (3), the traffic commissioner must give notice to—

(a) the person with respect to whom the order has been made, and

(b) the Welsh Ministers.

(7) Except to any extent provided for in regulations under this section, an amount ordered to be paid under subsection (2) or (3) is payable to the Welsh Ministers and recoverable, on the order of a court, as if payable under a court order.

(8) Regulations under this subsection may make provision about orders under this section including provision about (among other things)—

(a) the form and content of an order;

(b) the procedure to be followed by a traffic commissioner in relation to an order.

(9) The upper limit, for the purposes of a penalty that a person is ordered to pay under this section, is—

(a) in the case of a person who, at the relevant time, is licensed to use vehicles under a PSV operator’s licence, the sum that is calculated by multiplying the total number of vehicles that the person is licensed to use under all the PSV operator’s licences held by the person at the relevant time by either—

(i) an amount specified in regulations under this sub-paragraph, or

(ii) in the absence of any amount being so specified, £550;

(b) in the case of a person who, at the relevant time, is not licensed to use vehicles under a PSV operator’s licence—

(i) an amount specified in regulations under this sub-paragraph, or

(ii) in the absence of any amount being so specified, £550.

(10) For the purposes of subsection (9), the “relevant time” is—

(a) in the case of an order made under subsection (2)(a), the time at which that order is made;

(b) in the case of an order made under subsection (3) in respect of failure to comply with an order under subsection (2), the time at which that order under subsection (2) was made.

26 Enforcement of restriction: appeals

(1) A person with respect to whom an order has been made under subsection (2) or (3) of section 25 may appeal to the Upper Tribunal against the making of the order.

(2) On an appeal against the making of an order, the Upper Tribunal may—

(a) uphold the order;

(b) quash the order;

(c) substitute another order for the order made.

PART 4 INFORMATION AND DATA

Provision of information to the Welsh Ministers for the purposes of exercising certain functions

27 Provision of information to the Welsh Ministers by current and former operators for the purposes of functions under Part 2 or 3

(1) The Welsh Ministers may give notice under this section to—

(a) a person who operates or has operated a local bus service,

(b) a person who operates or has operated a section 19 service, or

(c) a person who operates or has operated a Part 3 of Schedule 1 service,

requiring the person to provide the Welsh Ministers with information specified in the notice in relation to that service.

(2) The notice—

(a) must specify how and when the information is to be provided;

(b) may not require a person to provide information that relates to a period ending more than five years before, or to a date that is more than five years before, the date on which the notice is given.

(3) Information may not be specified in the notice unless—

(a) the Welsh Ministers consider that the information is needed for the purpose of the exercise of a relevant function, and

(b) the information is of a kind that is specified in regulations under this section.

(4) Regulations under this section may specify information about (among other things)—

(a) timetables and frequencies of service, and punctuality of services;

(b) routes and areas of operation;

(c) embarkation and disembarkation points;

(d) arrangements for determining when passengers are taken up or set down;

(e) booking journeys;

(f) fares, tickets, revenue and costs associated with services;

(g) types and numbers of journeys made;

(h) passenger numbers;

(i) vehicles and their use;

(j) facilities that are available to passengers on vehicles;

(k) connections to public passenger transport services and to section 19 services;

(l) amenities and facilities (including active travel routes and related facilities) that are available in the vicinity of embarkation and disembarkation points;

(m) workforce composition;

(n) forecasts relating to any of the above matters.

(5) The regulations—

(a) must make provision about appeals;

(b) may make provision about the disclosure of information (including, among other things, about the use of information by persons to whom it is disclosed).

(6) For the purposes of this section, a “relevant function” is—

(a) a function of the Welsh Ministers that is exercisable under Part 2 or 3;

(b) a function of the Welsh Ministers that is otherwise exercisable in respect of a local bus service contract, a local bus service permit, or a service relied on under section 19.

(7) In this Part, “active travel route” and “related facilities” have the meaning given in section 2 of the Active Travel (Wales) Act 2013 (anaw 7).

28 Provision of information about infrastructure and certain other matters to the Welsh Ministers by local authorities and community councils for the purposes of functions under Part 2

(1) The Welsh Ministers may give notice under this section to a local authority or a community council requiring the authority or the council to provide the Welsh Ministers with information specified in the notice.

(2) The notice must specify how and when the information is to be provided.

(3) Information may not be specified in the notice unless—

(a) the Welsh Ministers consider that the information is needed for the purposes of the exercise of their functions under Part 2, and

(b) the information is of a kind that is specified in regulations under this section.

(4) Regulations under this section may specify information about (among other things)—

(a) routes;

(b) points where passengers are permitted to embark onto, and disembark from, bus services;

(c) infrastructure, including road transport and highways infrastructure;

(d) the operation of bus services;

(e) the availability of public passenger transport services and of section 19 services;

(f) amenities and facilities (including active travel routes and related facilities).

Information to be made available to the public

29 Duty to secure that information is made available to the public

(1) The Welsh Ministers must make arrangements to secure that the information specified in regulations under this section is made available to the public.

(2) Regulations under this section may specify information relating to a service within subsection (3).

(3) The services are—

(a) a local bus service;

(b) a section 19 service that is being relied upon as described in section 19;

(c) a Part 3 of Schedule 1 service that is being relied upon as described in section 19.

(4) The information that may be specified in the regulations includes information about (among other things)—

(a) timetables and frequencies of service, and punctuality of services;

(b) routes and areas of operation;

(c) embarkation points and disembarkation points;

(d) arrangements for determining when passengers are taken up or set down;

(e) booking journeys;

(f) fares and tickets;

(g) the operation of services, including (among other things)—

(i) the location of vehicles;

(ii) the time at which a service has arrived or is expected to arrive at a destination;

(h) facilities that are available to passengers on vehicles;

(i) connections to public passenger transport services and to section 19 services;

(j) amenities and facilities (including active travel routes and related facilities) that are available in the vicinity of embarkation and disembarkation points.

(5) The regulations must make provision specifying how and when the information is to be made available to the public.

30 Provision of information to the Welsh Ministers for the purposes of section 29

(1) Regulations under this section may require—

(a) a person who operates a local bus service,

(b) a person who operates a section 19 service that is being relied upon as described in section 19, or

(c) a person who operates a Part 3 of Schedule 1 service that is being relied upon as described in section 19,

to provide specified information in relation to the service to the Welsh Ministers.

(2) Information may not be specified in the regulations unless the Welsh Ministers consider that the information is needed for the purpose of the duty in section 29(1).

(3) The information that may be specified in the regulations includes information about (among other things)—

(a) timetables and frequencies of service, and punctuality of services;

(b) routes and areas of operation;

(c) embarkation points and disembarkation points;

(d) arrangements for determining when passengers are taken up or set down;

(e) booking journeys;

(f) fares and tickets;

(g) the operation of services, including (among other things)—

(i) the location of vehicles;

(ii) the time at which a service has arrived or is expected to arrive at a destination;

(h) facilities that are available to passengers on vehicles;

(i) connections to public passenger transport services and to section 19 services;

(j) amenities and facilities (including active travel routes and related facilities) that are available in the vicinity of embarkation and disembarkation points.

(4) The regulations must make provision specifying how and when the information is to be provided.

Legal privilege

31 Provision of information: exclusion on grounds of legal privilege

A requirement imposed on a person under section 27, 28 or 30 does not apply to information that the person would in legal proceedings be entitled to refuse to provide on grounds of legal privilege.

Enforcement

32 Enforcement of information requirements

(1) If a traffic commissioner is satisfied that a person who is operating or has operated a bus service has, without reasonable excuse, failed to comply with a requirement to provide information in accordance with a notice given under section 27 or regulations made under section 30, the traffic commissioner may make one or more orders under subsection (2).

(2) The orders are—

(a) an order that the person pay, within a time specified in the order, a penalty of any amount that the traffic commissioner thinks appropriate in all the circumstances of the case, but which does not exceed the upper limit;

(b) an order of any other description prescribed in regulations.

(3) If a person fails to comply with an order under subsection (2), and the condition in subsection (5) is met in respect of the order, a traffic commissioner may make an order under this subsection ordering the person to pay, within a period specified in the order, an additional penalty.

(4) The additional penalty may be any amount that the traffic commissioner thinks appropriate in all the circumstances of the case, but must not exceed 110% of the upper limit.

(5) The condition is that either—

(a) on an appeal under section 33 against the making of the order, the order has been upheld, or

(b) the period within which an appeal under section 33 against the making of the order may be brought to the Upper Tribunal has elapsed, without an appeal having been brought.

(6) After making an order under subsection (2) or (3), the traffic commissioner must give notice to—

(a) the person with respect to whom the order has been made, and

(b) the Welsh Ministers.

(7) Except to any extent provided for in regulations under this section, an amount ordered to be paid under subsection (2) or (3) is payable to the Welsh Ministers and recoverable, on the order of a court, as if payable under a court order.

(8) Regulations under this subsection may make provision about orders under this section including provision about (among other things)—

(a) the form and content of an order;

(b) the procedure to be followed by a traffic commissioner in relation to an order.

(9) The upper limit, for the purposes of a penalty that a person is ordered to pay under this section, is—

(a) in the case of a person who, at the relevant time, was licensed to use vehicles under a PSV operator’s licence, the sum that is calculated by multiplying the total number of vehicles that the person was licensed to use under all the PSV operator’s licences held by the person at the relevant time by either—

(i) an amount specified in regulations under this sub-paragraph, or

(ii) in the absence of any amount being so specified, £550;

(b) in the case of a person who, at the relevant time, was not licensed to use vehicles under a PSV operator’s licence—

(i) an amount specified in regulations under this sub-paragraph, or

(ii) in the absence of any amount being so specified, £550.

(10) For the purposes of subsection (9), the “relevant time” is—

(a) in the case of a failure to comply with a requirement to provide information in accordance with a notice given under section 27, the time at which the notice was given;

(b) in the case of a failure to comply with a requirement to provide information in accordance with regulations made under section 30, the time at which the person failed to comply with that requirement.

33 Enforcement of information requirements: appeals

(1) A person with respect to whom an order has been made under subsection (2) or (3) of section 32 may appeal to the Upper Tribunal against the making of the order.

(2) On an appeal against the making of an order, the Upper Tribunal may—

(a) uphold the order;

(b) quash the order;

(c) substitute another order for the order made.

PART 5 LOCAL AUTHORITY POWERS AND DUTIES

34 Provision of bus services by local authorities: removal of restriction

(1) The 1985 Act is amended as follows.

(2) In section 66 (exclusion of powers of certain councils to run bus undertakings), in subsection (1), omit “a county council or county borough council in Wales”.

35 Removal of duty to secure local bus services

In the 1985 Act, in section 63 (functions of local councils with respect to passenger transport), after subsection (1) insert—

“(1A) The duty in subsection (1) does not require a council in Wales to secure the provision of a service that is a local bus service for the purposes of section 1 of the Bus Services (Wales) Act 2026 (asc [X]).”

36 Financial assistance in connection with local bus services

(1) A local authority may give financial assistance in connection with the provision of a local bus service.

(2) Section 88(1) of the 1985 Act does not apply in relation to financial assistance given under subsection (1) (and, accordingly, sections 89 to 92 of that Act (rules relating to subsidy agreements) do not apply).

(3) In section 63 (functions of local councils with respect to passenger transport) of the 1985 Act, in subsection (9), in the opening words, after “references to services”, insert “in connection with which financial assistance has been given under section 36 of the Bus Services (Wales) Act 2026 and to services”.

PART 6 MISCELLANEOUS AND GENERAL

Transfer of undertakings

37 Application of TUPE

(1) Regulations must make provision for circumstances in which a relevant transfer is to be treated (to the extent that‍ this would not otherwise be the case) as taking place for the purposes of TUPE, upon—

(a) a local bus service contract being entered into under section 10, or terminated or varied, whether under the terms of the contract or otherwise;

(b) a local bus service permit being granted under section 12, or revoked or varied, or ceasing to have effect by virtue of the expiry of the period specified under section 13(1);

(c) the Welsh Ministers undertaking the provision of a local bus service under section 18, or ceasing to provide such a service.

(2) Regulations that make provision under subsection (1) for circumstances in which a relevant transfer is to be treated as taking place for the purposes of TUPE—

(a) must also make provision for that relevant transfer to be treated as being a relevant transfer within the meaning of TUPE for the purposes of sections 257 and 258 of the Pensions Act 2004, and any regulations made under section 258 of that Act;

(b) may make further provision in connection with the application of TUPE in respect of the relevant transfer.‍

(3) In this section—

(a) references to TUPE are to the Transfer of Undertakings (Protection of Employment) Regulations 2006 (S.I. 2006/246);‍

(b) references to a “relevant transfer” are references to a relevant transfer within the meaning given to that term in those Regulations.

Transport Act 1985: registration of services with traffic commissioner

38 Transport Act 1985: removal of requirements relating to registration

(1) The 1985 Act is amended as follows.

(2) In section 6 (registration of local services)—

(a) in subsection (1), for “or (1D)” substitute “, (1D) or (1F)”;

(b) after subsection (1E) insert—

“(1F) A service falls within this subsection if it is a local bus service for the purposes of section 1 of the Bus Services (Wales) Act 2026 (asc [X]).

(1G) But for the purposes of subsection (1F), a service that is within subsection (1I) is not to be treated as a local bus service (and is therefore a local service for the purposes of subsection (1)) unless it is—

(a) secured under a local bus service contract entered into under section 10(1) of the Bus Services (Wales) Act 2026, or

(b) a service in respect of which a local bus service permit granted under section 12(1) of that Act has effect.

(1H) For the purposes of subsection (1G)(b), a local bus service permit is to be treated as continuing to have effect throughout any period during which the permit is suspended under section 16(1) of the Bus Services (Wales) Act 2026.

(1I) The services are—

(a) a community bus service (within the meaning given in section 22(1) of this Act);

(b) a service provided as described in section 46(1) of the 1981 Act (fare-paying passengers on school buses).

(1J) In the case of a service that is a standard local bus service for the purposes of the Bus Services (Wales) Act 2026, any part of the service which is provided outside Wales is to be treated as a separate service for the purposes of subsection (1F) (and is therefore not a local bus service for the purposes of that subsection), if there is any stopping place for that part of the service outside Wales, or if there is any point outside Wales at which passengers may request to be taken up or set down (other than in the case of an emergency).

(1K) In the case of a service that is a flexible local bus service for the purposes of the Bus Services (Wales) Act 2026, any part of its area of operation which is outside Wales is to be treated as a separate service for the purposes of subsection (1F) (and is therefore not a local bus service for the purposes of that subsection).”

39 Transport Act 1985: existing registration etc. ceasing to have effect

(1) This section applies where–

(a) a local bus service is registered with a traffic commissioner under section 6 of the 1985 Act, but

(b) that service ceases to be a local service, for the purposes of section 6, by virtue of the amendments made to that section by section 38.

(2) When the service ceases to be a local service for the purposes of section 6—

(a) the registration of the service under section 6 ceases to have effect, and

(b) any condition that has been attached to a community bus permit or a PSV operator’s licence under section 8 of the 1985 Act, so far as applying in respect of the service, ceases to have effect.

Welsh Ministers’ power to secure provision of public passenger transport services

40 Restriction on the power to secure the provision of public passenger transport services under section 7 of the Transport (Wales) Act 2006

(1) Section 7 (provision of public passenger transport services) of the Transport (Wales) Act 2006 (c. 5) is amended as follows.

(2) In subsection (1), after “public passenger transport services” insert “, other than a service that is within subsection (1A),”.

(3) After subsection (1), insert—

“(1A) A service is within this subsection if it is a local bus service for the purposes of section 1 of the Bus Services (Wales) Act 2026 (asc [X]).”

(4) After subsection (4A), insert—

“(4B) The restriction in subsection (4) does not apply in the case of a local bus service contract entered into under the Bus Services (Wales) Act 2026 (asc [X]).”

Transport Act 2000: local authority schemes

41 Transport Act 2000: removal of certain local authority schemes

(1) In the Transport Act 2000 (c. 38)—

(a) omit sections 114 to 123 (quality partnership schemes);

(b) omit sections 124 to 134B (quality contracts schemes);

(c) omit sections 135 to 138 (joint ticketing schemes).

(2) Any scheme made under section 114, 124, or section 135 of that Act ceases to have effect.

General

42 Regulations under this Act

(1) A power to make regulations under this Act is exercisable by Welsh statutory instrument.

(2) A power to make regulations under this Act includes power to make different provision for different purposes and for different areas.

(3) A power to make regulations under this Act includes power to make—

(a) supplementary, incidental and consequential provision;

(b) transitional and saving provision.

(4) The provision that may be made by virtue of subsection (3) includes provision modifying any enactment (whenever enacted or made, and including this Act).

(5) A Welsh statutory instrument to which this subsection applies is subject to the Senedd approval procedure.

(6) Subsection (5) applies to a Welsh statutory instrument containing regulations under any of the following provisions—

(a) section 16(5) (revocation and suspension of local bus service permits);

(b) section 23(3) (application of restriction in section 23);

(c) section 25(2)(b) (other orders that may be made by traffic commissioner in respect of breach of restriction in section 23);

(d) section 25(9)(a)(i) and (b)(i) (determination of upper limit for penalties for breach of restriction in section 23);

(e) section 27 (provision of information to the Welsh Ministers for the purposes of functions under Part 2 or 3);

(f) section 28 (provision of information about infrastructure and other matters to the Welsh Ministers by local authorities and community councils);

(g) section 29 (information to be made available to the public);

(h) section 30 (provision of information to the Welsh Ministers for the purposes of section 29);

(i) section 32(2)(b) (other orders that may be made by traffic commissioner in respect of failure to comply with requirement to provide information);

(j) section 32(9)(a)(i) and (b)(i) (determination of upper limit for penalties for failure to comply with requirement to provide information);

(k) section 37(1) and (3) (application of TUPE);

(l) section 44(3) (meaning of operator).

(7) Subsection (5) also applies to a Welsh statutory instrument containing regulations under any provision not mentioned in subsection (6), where the regulations modify any provision of primary legislation.

(8) Any other Welsh statutory instrument containing regulations under this Act is subject to the Senedd annulment procedure.

(9) In this section, “primary legislation” means any of the following—

(a) an Act of Senedd Cymru;

(b) an Assembly Measure;

(c) an Act of the Parliament of the United Kingdom.

43 Giving notices etc.

(1) This section applies where a provision of this Act or of regulations made under this Act requires or authorises a person to—

(a) notify another person of something, or

(b) give a document to another person (whether the provision uses the word “serve” or “give” or any other term).

(2) The notification or other document may be given to the person in question in any of the following ways—

(a) by handing it to the person;

(b) by leaving it, addressed to the person, at the person’s proper address;

(c) by sending it by pre-paid post, addressed to the person at the person’s proper address;

(d) if the person has given an address for service using electronic communications, by sending it to the person at that address using an electronic communication that complies with the conditions in subsection (9).

(3) The reference in subsection (2)(a) to handing a notification or other document to a person is—

(a) if the person is a body corporate, a reference to handing it to an officer of the body;

(b) if the person is a partnership, a reference to handing it to a partner.

(4) The reference in subsection (2)(b) and (c) to a notification or other document being addressed to a person is—

(a) if the person is a body corporate, a reference to its being addressed to the body corporate, or to an officer of the body;

(b) if the person is a partnership, a reference to its being addressed to the partnership, or to a partner.

(5) Subsections (6) to (8) apply for the purposes of determining a person’s proper address as referred to in subsections (2)(b) and (c).

(6) If the person has given an address for the service of a specific notification or other document, that address is the person’s proper address for the purposes of the service of that notification or other document.

(7) In the case of service of a notification or other document in respect of which the person has not given an address for service as described in subsection (6), if the person has given an address for the service of documents generally, that address is the person’s proper address for the purposes of the service of the notification or other document.

(8) In the case of service of a notification or other document where the person has neither given an address for service as described in subsection (6) in respect of that notification or document, nor given an address for the service of documents generally, the person’s proper address for the purposes of the service of the notification or other document is—

(a) if the person is a body corporate, the address of the registered or principal office of the body;

(b) if the person is a partnership, the address of the principal office of the partnership;

(c) in any other case, the person’s last known residence or place of business.

(9) The conditions referred to in subsection (2)(d) are that the notification or other document is—

(a) capable of being accessed by the person to whom it is sent,

(b) legible in all material respects, and

(c) capable of being used for subsequent reference.

(10) For the purposes of this section—

(a) the principal office of a company registered outside the United Kingdom or of a partnership carrying on business outside the United Kingdom is their principal office within the United Kingdom;

(b) “officer”, in relation to a body corporate, means a director, manager, secretary or other similar officer of the body.

44 General interpretation

(1) In this Act—

• “the 1981 Act” (“Deddf 1981”) means the Public Passenger Vehicles Act 1981 (c. 14);

• “the 1985 Act” (“Deddf 1985”) means the Transport Act 1985 (c. 67);

• “community bus permit” (“trwydded bysiau cymunedol”) has the meaning given in section 22 of the 1985 Act;

• “community bus service” (“gwasanaeth bysiau cymunedol”) has the meaning given in section 22 of the 1985 Act;

• “functions” (“swyddogaethau”) includes powers and duties;

• “local authority” (“awdurdod lleol”) means a county or county borough council in Wales;

• “modify” (“addasu”) includes amend, repeal or revoke;

• “notice” (“hysbysiad”) means notice in writing;

• “Part 3 of Schedule 1 service” (“gwasanaeth Rhan 3 o Atodlen 1”) means a service for the carriage of passengers by road in which every vehicle used is so used in circumstances in which the conditions set out in Part 3 of Schedule 1 to the 1981 Act are met;

• “PSV operator’s licence” (“trwydded gweithredwr cerbydau gwasanaeth cyhoeddus”) has the same meaning as in the 1981 Act;

• “public passenger transport services” (“gwasanaethau trafnidiaeth gyhoeddus i deithwyr”) has the meaning given in section 7 of the Transport (Wales) Act 2006 (c. 5);

• “regulations” (“rheoliadau”) means regulations made by the Welsh Ministers;

• “section 19 service” (“gwasanaethau adran 19”) means a service for the carriage of passengers by road in which every vehicle used is so used under a permit under section 19 of the 1985 Act;

• “specified” (“penodedig” and “a bennir”) (unless the context requires otherwise) means specified in regulations;

• “traffic commissioner” (“comisiynydd traffig”) means a traffic commissioner for England and Wales appointed under section 4 of the 1981 Act;

• the “Wales Transport Strategy” (“Strategaeth Drafnidiaeth Cymru”) means the Wales Transport Strategy published under section 2 of the Transport (Wales) Act 2006 (c. 5).

(2) References in this Act to an operator, in relation to a service, are to the person, or each of the persons, providing the service; and related expressions (including references to a person having operated a service) are to be construed accordingly.

(3) Regulations may make provision about circumstances in which a person of a specified description is to be treated for the purposes of subsection (2) as providing or not providing a service

45 Index of defined terms

The Table below lists provisions in this Act that define or otherwise explain terms used in this Act (other than a term used only in a section where that term is defined or explained)—

TABLE

Term	Relevant provision
1981 Act (“Deddf 1981”)	Section 44(1)
1985 Act (“Deddf 1985”)	Section 44(1)
Active travel route (“llwybr teithio llesol”)	Section 27(7)
Cross-border service (“gwasanaeth trawsffiniol”)	Section 20(1)
Community bus permit (“trwydded bysiau cymunedol”)	Section 44(1)
Community bus service (“gwasanaeth bysiau cymunedol”)	Section 44(1)
Disembarkation point (“man disgyn”)	Section 2(b)
Embarkation point (“man esgyn”)	Section 2(a)
Flexible local bus service (“gwasanaeth bysiau lleol hyblyg”)	Section 3(a)
Functions (“ swyddogaethau”)	Section 44(1)
Local authority (“awdurdod lleol”)	Section 44(1)
Local bus service (“gwasanaeth bysiau lleol”)	Section 1
Local bus service contract (“contract gwasanaeth bysiau lleol”)	Section 10(1)
Local bus service permit (“trwydded gwasanaeth bysiau lleol”)	Section 12(2)
Modify (“ addasu”)	Section 44(1)
Notice (“ hysbysiad”)	Section 44(1)
Operator (“ gweithredwr”)	Section 44(2)
Part 3 of Schedule 1 service (“gwasanaeth Rhan 3 o Atodlen 1”)	Section 44(1)
PSV operator’s licence (“trwydded gweithredwr cerbydau gwasanaeth cyhoeddus”)	Section 44(1)
Public passenger transport services (“gwasanaethau trafnidiaeth gyhoeddus i deithwyr”)	Section 44(1)
Regulations (“ rheoliadau”)	Section 44(1)
Related facilities (“cyfleusterau cysylltiedig”)	Section 27(7)
Section 19 service (“gwasanaeth adran 19”)	Section 44(1)
Specified (“ penodedig” and “ pennu”)	Section 44(1)
Standard local bus service (“gwasanaeth bysiau lleol safonol”)	Section 3(b)
Traffic commissioner (“comisiynydd traffig”)	Section 44(1)
Wales Transport Strategy (“Strategaeth Drafnidiaeth Cymru”)	Section 44(1)
Welsh Bus Network Plan (“Cynllun Rhwydwaith Bysiau Cymru”)	Section 5(1)(b)

46 Power to make consequential, transitional etc. provision

(1) If the Welsh Ministers consider it necessary or appropriate for the purposes of, or in consequence of, or for giving full effect to any provision of this Act, they may by regulations make—

(a) supplementary, incidental and consequential provision;

(b) transitional and saving provision.

(2) Regulations under subsection (1) may modify any enactment (whenever enacted or made, and including this Act).

47 Minor and consequential amendments

The Schedule (which makes minor and consequential amendments etc.) has effect.

48 Coming into force

(1) The following provisions come into force on the day after the day on which this Act receives Royal Assent—

(a) sections 1 to 3;

(b) section 5(6) and (7);

(c) section 11;

(d) section 14(2) and (3);

(e) section 15(1) and (2);

(f) section 27(3)(b), (4) and (5);

(g) section 28(3)(b) and (4);

(h) section 29(2) to (5);

(i) section 30;

(j) section 32(2)(b), (8), (9)(a)(i) and (9)(b)(i);

(k) sections 42 to‍ 46;

(l) this section;

(m) section 49.

(2) The following provisions come into force at the end of the period of two months beginning with the day on which this Act receives Royal Assent—

(a) section 4;

(b) section 21.

(3) The other provisions of this Act come into force on a day appointed by the Welsh Ministers in an order made by Welsh statutory instrument.

(4) An order under subsection (3)—

(a) may make transitional or saving provision;

(b) may appoint different days for different purposes and different areas.

49 Short title

This Act may be referred to as—

(a) the Bus Services (Wales) Act 2026, or

(b) Deddf Gwasanaethau Bysiau (Cymru) 2026.

(introduced by section 47)

SCHEDULE MINOR AND CONSEQUENTIAL AMENDMENTS ETC.

Road Traffic Regulation Act 1984 (c. 27)

1 (1) The Road Traffic Regulation Act 1984 is amended as follows.

(2) In section 1 (traffic regulation orders outside Greater London), in subsection (3B)—

(a) omit paragraph (a);

(b) omit paragraph (b).

(3) In Schedule 9, in paragraph 27, omit sub-paragraph (3).

Transport Act 1985 (c. 67)

2 (1) The Transport Act 1985 is amended as follows.

(2) In section 6 (registration of local services)—

(a) in subsection (2A), in paragraph (a), omit “or 114(3A)” and “and quality partnership schemes”;

(b) omit subsection (2B);

(c) omit subsection (7A);

(d) in subsection (8), omit “and, in the case of variation, to section 6B of this Act”.

(3) In section 6A (applications for registration etc. where restrictions are in force)—

(a) in subsection (1), in paragraph (a), omit “or 114(3A)” and “or a quality partnership scheme”;

(b) in subsection (8), in paragraph‍ (c), omit “or 118(4)”;

(c) in subsection (12)—

(i) omit the entry for “quality partnership scheme”;

(ii) in the entry for “registration criteria”, omit paragraph (b);

(iii) in the entry for “relevant operator”, in paragraph (a), omit “or 118(4)”.

(4) Omit section 6B (applications for registration where quality contracts scheme in force).

(5) In section 26 (conditions attached to PSV operator’s licence), in subsection (1)—

(a) in paragraph (b), omit “118(4),“ and “, 129(1)(b)”;

(b) in paragraph (bza), omit “, 134B(7)(c)”;

(c) in paragraph (ba), omit “, 138”.

(6) In section 66 (exclusion of powers of certain councils to run bus undertakings), in subsection (1), omit “and 132C”.

(7) In section 82 (bus stations: restrictions on discriminatory practices etc.), in subsection (4A), omit “or a quality partnership scheme”.‍

(8) Section 93 (travel concession schemes) is amended as follows—

(a) in subsection (1), in the opening words, at the end, insert “other than services within subsection (1A)”;

(b) after subsection (1), insert—

“(1A) A service is within this subsection if it is a local bus service for the purposes of section 1 of the Bus Services (Wales) Act 2026 (asc [X]).”

(9) In section 134 (regulations, rules and orders), in subsection (7), omit paragraph (c).

(10) In section 135 (procedure for making regulations, rules and orders), in subsection (8), omit paragraph (c).

Transport Act 2000 (c. 38)

3 (1) The Transport Act 2000 is amended as follows.

(2) In section 139 (information about bus services)–

(a) in subsection (1), after “Each local transport authority” insert “whose area is in England”;

(b) in subsection (4), after “an authority” insert “whose area is in England”.

(3) In section 143 (power to obtain information about local services), in subsection (1), after “A local transport authority” insert “whose area is in England”.

(4) In section 149 (travel concessions: reimbursement of operators)—

(a) in subsection (1), in paragraph (b), after “145B(1)” insert “, other than in respect of a service that is within subsection (1A),”;

(b) after subsection (1), insert—

“(1A) A service is within this subsection if it is a local bus service for the purposes of section 1 of the Bus Services (Wales) Act [2026] (asc [X]), and it is—

(a) provided under a local bus service contract entered into under section 10 of that Act, or

(b) provided by the Welsh Ministers under section 18 of that Act.”;

(c) in subsection (2), in paragraph (a)(ii), at the beginning, insert “in respect of a service other than a service that is within subsection (1A),”.

(5) In section 153 (competition test: functions and agreements relating to buses)—

(a) in subsection (1), in paragraph (a)—

(i) omit “quality partnership schemes,” the second time it occurs;

(ii) omit “ticketing schemes,” the second time it occurs;

(b) in subsection (3), in the definition of “voluntary agreement”, omit “, or under sections 114 to 123 (quality partnership schemes)”.

(6) In section 155 (sanctions), in subsection (1)—

(a) in paragraph (b), omit “, 118(4), 129(1)(b)”;

(b) in paragraph (ba), omit “, 134B(7)(c)”;

(c) in paragraph (c), omit “, 138”.

(7) In section 162 (interpretation of Part II)—

(a) in subsection (1)—

(i) omit the entries for “appropriate national authority”, “exempt continuation proposal”, “quality contract”, “quality contracts scheme”, “quality partnership scheme” and “ticketing scheme”;

(ii) in the entry for “connecting rail or tram service”, omit paragraph (b) and the “and” before it;

(b) in subsection (4), omit “section 114(2)(a),”, “section 116(2)(a), (4)(a), (4A)(a) and, in the second place, (4C),”, “section 118(1) and (2),” and “section 129(4),”.

(8) In Schedule 10 (competition test for exercise of bus functions)—

(a) in paragraph 1, in sub-paragraph (1)—

(i) omit paragraph (a);

(ii) omit paragraph (b);

(b) in paragraph 1, in sub-paragraph (2)—

(i) omit paragraph (a);

(ii) omit paragraph (b);

(c) in paragraph 12, in sub-paragraph (2), in paragraph (b), omit “a quality partnership scheme,” and “, a ticketing scheme”;

(d) in paragraph 17, in sub-paragraph (5), in paragraph (c), omit “a quality partnership scheme,”.

(9) In Schedule 11 (minor and consequential amendments), omit paragraph 8.

Local Transport Act 2008 (c. 26)

4 (1) The Local Transport Act 2008 is amended as follows.

(2) Omit—

(a) sections 13 to 21;

(b) section 26;

(c) section 28 to 32;

(d) sections 34 and 35;

(e) sections 37 to 43;

(f) in section 44, subsection (1);

(g) section 49;

(h) in Schedule 1, paragraphs 2 and 3;

(i) in Schedule 4, paragraph 43.