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After section 106 of the Transport Act 1985 there is inserted—
(1)A parish council or community council may make grants to any body towards expenditure incurred or to be incurred by that body in connection with the operation of—
(a)a bus service appearing to the council to be wholly or mainly for the benefit of members of the public who are elderly or disabled; or
(b)a community bus service (as defined in section 22 of this Act).
(2)The power in subsection (1) above may only be exercised if—
(a)the bus service benefits, or appears to the council likely to benefit, persons living in the council’s area, and
(b)a permit in relation to the use of the vehicle by means of which the service is, or is to be, provided has been granted to the body concerned under section 19 or 22 of this Act.
(3)Grants under this section may be made in such cases and subject to such terms and conditions as the council think fit.”
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