Penalty

50HGrounds for imposition

1

The Welsh Ministers may require a registered social landlord to pay a penalty if they are satisfied that—

a

any of the following cases applies, and

b

the imposition of a penalty is appropriate (whether or not as part of a response including other action).

2

Case 1 is where the registered social landlord has failed to meet a standard under section 33A.

3

Case 2 is where there has been misconduct or mismanagement in the affairs of the registered social landlord.

4

Case 3 is where the registered social landlord has failed to comply with an enforcement notice.

5

Case 4 is where the registered social landlord has given an undertaking under section 6A and failed to comply with it.

6

Case 5 is where an offence under this Part has been committed by the registered social landlord.

7

Where the Welsh Ministers are satisfied that an offence under this Part has been committed in respect of a registered social landlord but by another person (such as a member, employee or agent of the registered social landlord)—

a

Case 5 applies,

b

the Welsh Ministers may require the other person to pay a penalty, and

c

this Chapter applies with the substitution of references to that other person for references to the registered social landlord.

8

In order to rely on Case 5 the Welsh Ministers must be satisfied beyond reasonable doubt that it applies.

50IImposition

1

A penalty is imposed by the Welsh Ministers giving notice (a “penalty notice”) to the registered social landlord.

2

The notice must specify—

a

the grounds on which the penalty is imposed,

b

the amount of the penalty,

c

how the penalty must be paid,

d

a period within which it must be paid, and

e

any interest or additional penalty which, by virtue of section 50M, is payable in the event of late payment.

3

The notice may require the registered social landlord to publish information about the penalty in a specified manner.

4

The notice must explain the effect of sections 50M(1), (3) and (5) and 50N.

50JAmount

1

The amount of a penalty imposed on the ground specified in Case 5 of section 50H may not exceed the maximum amount of fine that a magistrates' court could impose for the relevant offence.

2

The amount of a penalty imposed on the ground specified in any other Case of that section may not exceed £5,000.

3

The Welsh Ministers may by order amend the amount specified in subsection (2).

4

An order under subsection (3) is to be made by statutory instrument and must not be made unless a draft of the instrument has been laid before, and approved by a resolution of, the National Assembly for Wales.

50KWarning

1

Before giving a penalty notice to a registered social landlord the Welsh Ministers must give the landlord a notice (a “pre-penalty warning”)—

a

specifying grounds on which the Welsh Ministers think a penalty could be imposed,

b

warning the landlord that the Welsh Ministers are considering imposing a penalty,

c

including any indication that the Welsh Ministers are able to give of the likely amount of any penalty, and

d

explaining the effect of sections 50L, 50M(1), (3) and (5) and 50N.

2

The Welsh Ministers must send a copy of a pre-penalty warning to any person they think appropriate (having regard, in particular, to any person who provided information as a result of which the pre-penalty warning is given).

3

A pre-penalty warning must—

a

refer to section 6A, and

b

indicate whether or to what extent the Welsh Ministers would accept a voluntary undertaking instead of, or in mitigation of, a penalty.

4

A pre-penalty warning may be combined with notice under one or more of the following—

a

section 50S,

b

paragraphs 15C, 15E and 15G of Schedule 1.

50LRepresentations

1

A pre-penalty warning must specify a period during which the registered social landlord may make representations to the Welsh Ministers.

2

The period must—

a

be a period of at least 28 days, and

b

begin with the date on which the registered social landlord receives the pre-penalty warning.

3

Representations may address—

a

whether a penalty should be imposed;

b

the amount of any penalty that may be imposed.

4

After the end of the period specified under subsection (1) the Welsh Ministers must—

a

consider any representations made, and

b

decide whether to impose a penalty.

50MEnforcement

1

A penalty is to be treated as a debt owed to the Welsh Ministers.

2

The Welsh Ministers may—

a

charge interest on a penalty not paid during the period specified under section 50I(2)(d);

b

impose one or more additional penalties where a penalty is not paid during that period.

3

Interest and additional penalty are to be treated as penalty (and may have the effect of increasing the penalty above a limit set by section 50J).

4

A penalty notice may include provision allowing a discount if the penalty is paid on or before a date specified in the notice (falling within the period specified under section 50I(2)(d)).

5

A person to whom a penalty notice is given on the ground in Case 5 of section 50H may not be prosecuted for the offence by reference to which the penalty notice was given.

50NAppeal

A registered social landlord who is given a penalty notice may appeal to the High Court against—

a

the imposition of the penalty,

b

its amount, or

c

both.