Bus Services (Wales) Act 2026

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.