[F1123KLocal service contractsE+W
(1)If a franchising scheme covers the whole or part of the combined area of two or more franchising authorities, a local service contract for a local service specified in the scheme is to be entered by the authorities acting jointly.
(2)A franchising authority or authorities may only enter into a local service contract with a person who is the holder of either—
(a)a PSV operator's licence, or
(b)a community bus permit.
(3)But subsection (2)(a) does not include a licence to which a condition is attached under section 26 of the Transport Act 1985 (power of traffic commissioner to attach conditions to licences) prohibiting the holder from using vehicles under the licence to provide local services of all descriptions or of any description to which the condition relates.
(4)A person may not provide a local service under a local service contract until—
(a)the expiry of the period that, under the scheme, must expire between the making of the contract and the provision of the local service under the contract (see section 123H(2)(d) and (3)(c)), or
(b)such later time as may be specified in the contract.
(5)Subsection (4) is subject to section 123L.
(6)If—
(a)a franchising authority or authorities enter into a local service contract, and
(b)the contract is—
(i)the first contract for the provision of a local service specified in the scheme that is entered into, or
(ii)for any scheme sub-area, the first contract for the provision of a local service specified in relation to that scheme sub-area that is entered into,
they must give notice of the contract to a traffic commissioner.
(7)A notice under subsection (6) must be given within a period of 14 days beginning with the date on which the local service contract in question is entered into.]
Textual Amendments
F1Ss. 123A-123X and cross-heading inserted (27.4.2017 for specified purposes, 27.6.2017 in so far as not already in force) by Bus Services Act 2017 (c. 21), ss. 4, 26(3)