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).”