Legislative and Regulatory Reform Bill                                               1
Part 1 -- Power to reform legislation etc




A BILL [AS AMENDED IN STANDING COMMITTEE A] TO

Enable provision to be made for the purpose of reforming legislation and
implementing recommendations of the Law Commission, the Scottish Law
Commission and the Northern Ireland Law Commission; to make provision
about the exercise of regulatory functions; to make provision about the
interpretation of legislation relating to the European Communities and the
European Economic Area; to make provision relating to section 2(2) of the
European Communities Act 1972; and for connected purposes.

 
BE IT ENACTED by the Queen's most Excellent Majesty, by and with the advice and
consent of the Lords Spiritual and Temporal, and Commons, in this present
Parliament assembled, and by the authority of the same, as follows:--



                                               PART 1

                                 POWER TO REFORM LEGISLATION ETC


                                          Order-making power


1       Purpose

  (1)     A Minister of the Crown may by order make provision for either or both of the   5
          following purposes--
             (a)   reforming legislation;
             (b)   implementing recommendations of any one or more of the United
                   Kingdom Law Commissions, with or without changes.

  (2)     An order under this section must be made in accordance with this Part.         10

  (3)     In this Part "legislation" means a provision of--
             (a) any public general Act or local Act, or



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                                                       Part 1 -- Power to reform legislation etc


       (b)   any Order in Council, order, rules, regulations, scheme, warrant,
             byelaw or other subordinate instrument made under a public general
             Act or local Act,
     but does not include any instrument which is, or is made under, Northern
     Ireland legislation.                                                                          5

 (4) In this Part "the United Kingdom Law Commissions" means--
       (a)   the Law Commission;
       (b)   the Scottish Law Commission; and
       (c)   the Northern Ireland Law Commission.


2   Provision                                                                                     10

 (1) An order under section 1 may for either purpose specified in subsection (1) of
     that section make provision amending, repealing or replacing any legislation.

 (2) Provision under subsection (1) may amend, repeal or replace legislation in any
     way that an Act might, and in particular may amend, repeal or replace
     legislation so as to--                                                                       15
       (a)   confer functions on any person (including functions of legislating or
             functions relating to the charging of fees);
       (b)   modify the functions conferred on any person by legislation;
       (c)   transfer, or provide for the transfer or delegation of, the functions
             conferred on any person by legislation.                                              20
     This is subject to sections 4 to 7.

 (3) An order under section 1 may for the purpose specified in subsection (1)(b) of
     that section also make--
       (a)   provision amending or abolishing any rule of law;
       (b)   provision codifying rules of law.                                                    25

 (4) An order under section 1 may make such consequential, supplementary,
     incidental or transitional provision (including provision amending, repealing
     or replacing any legislation or other provision) as the Minister making it
     considers appropriate.

 (5) An order under section 1 may bind the Crown.                                                 30


3   Preconditions

 (1) A Minister may not make an order under section 1 containing--
       (a)   provision under section 2(1), other than provision which merely
             restates legislation, or
       (b)   provision under section 2(3)(a),                                                     35
     unless he considers that the conditions in subsection (2), where relevant, are
     satisfied in relation to that provision.

 (2) Those conditions are that--
       (a)   the policy objective intended to be secured by the provision could not
             be satisfactorily secured by non-legislative means;                                  40
       (b)   the effect of the provision is proportionate to the policy objective;
       (c)   the provision, taken as a whole, strikes a fair balance between the
             public interest and the interests of any person adversely affected by it;
       (d)   the provision does not remove any necessary protection;

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Part 1 -- Power to reform legislation etc


             (e)   the provision does not prevent any person from continuing to exercise
                   any right or freedom which that person might reasonably expect to
                   continue to exercise.

  (3)     A Minister may not make an order under section 1 containing--
             (a)   provision under section 2(1) which merely restates legislation, or            5
             (b)   provision under section 2(3)(b),
          unless he considers that the condition in subsection (4) is satisfied in relation to
          that provision.

  (4)     That condition is that the provision made would make the law more accessible
          or more easily understood.                                                            10


                                             Restrictions


4       Subordinate legislation

  (1)     Provision under section 2(1) may not confer a function of legislating on a
          Minister of the Crown (alone or otherwise) unless the conditions in subsections
          (2) and (3) are satisfied.                                                            15

  (2)     The condition in this subsection is that the function is exercisable by statutory
          instrument.

  (3)     The condition in this subsection is that such a statutory instrument--
             (a)   is subject to annulment in pursuance of a resolution of either House of
                   Parliament; or                                                               20
             (b)   is not to be made unless a draft of the statutory instrument has been laid
                   before and approved by a resolution of each House of Parliament.

  (4)     Subsection (1) does not apply to provision which merely restates legislation.


5       Taxation

  (1)     Provision under section 2(1) may not impose or increase taxation.                     25

  (2)     Subsection (1) does not apply to provision which merely restates legislation.


6       Criminal penalties

  (1)     Provision under section 2(1) may not create a new offence that is punishable,
          or increase the penalty for an existing offence so that it is punishable--
             (a)   on indictment, with imprisonment for a term exceeding two years; or          30
             (b)   on summary conviction, with--
                       (i)   imprisonment for a term exceeding the normal maximum term;
                             or
                      (ii)   a fine exceeding level 5 on the standard scale.

  (2)     In subsection (1)(b)(i), "the normal maximum term" means--                            35
             (a) in relation to England and Wales--
                       (i)   in the case of a summary offence, 51 weeks; and
                      (ii)   in the case of an offence triable either way, twelve months; and
             (b)   in relation to Scotland or Northern Ireland, six months.

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 (3) In the case of an offence which, if committed by an adult, is triable either on
     indictment or summarily and is not an offence triable on indictment only by
     virtue of--
        (a)  Part 5 of the Criminal Justice Act 1988 (c. 33), or
        (b)  section 292(6) and (7) of the Criminal Procedure (Scotland) Act 1995                    5
             (c. 46),
     the reference in subsection (1)(b)(ii) to a fine exceeding level 5 on the standard
     scale is to be construed as a reference to the statutory maximum.

 (4) If an order under section 1 containing provision under section 2(1) creating an
     offence, or altering the penalty for an offence, is made before the date on which              10
     section 281(5) of the Criminal Justice Act 2003 (c. 44) comes into force, the order
     must provide that, in relation to a summary offence committed before that
     date, any reference to a term of imprisonment of 51 weeks is to be read as a
     reference to six months.

 (5) If an order under section 1 containing provision under section 2(1) creating an                15
     offence, or altering the penalty for an offence, is made before the date on which
     section 154(1) of the Criminal Justice Act 2003 comes into force, the order must
     provide that, in relation to an offence triable either way committed before that
     date, any reference to a term of imprisonment of twelve months is to be read as
     a reference to six months.                                                                     20

 (6) Subsection (1) does not apply to provision--
        (a)  which merely restates legislation;
        (b)  to the extent that it implements recommendations of any one or more
             of the United Kingdom Law Commissions.


7   Forcible entry etc                                                                              25

 (1) Provision under section 2(1) may not--
        (a)  authorise any forcible entry, search or seizure; or
        (b)  compel the giving of evidence.

 (2) Subsection (1) does not prevent an order under section 1 from extending any
     power for purposes similar to those to which the power applied before the                      30
     order was made.

 (3) Subsection (1) does not apply to provision--
        (a)  which merely restates legislation;
        (b)  to the extent that it implements recommendations of any one or more
             of the United Kingdom Law Commissions.                                                 35


                                     Devolution


8   Scotland

     An order under section 1 may not, except by virtue of section 2(4), make
     provision which would be within the legislative competence of the Scottish
     Parliament if it were contained in an Act of that Parliament.                                  40


9   Wales

     An order under section 1 may not make any provision--

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Part 1 -- Power to reform legislation etc


             (a)   conferring a function on the Assembly,
             (b)   modifying or removing a function of the Assembly, or
             (c)   restating any provision which confers a function on the Assembly,
          except with the agreement of the Assembly.


                                             Procedure                                           5


10      Procedure: introductory

  (1)     An order under section 1 must be made by statutory instrument.

  (2)     A Minister may not make an order under section 1 unless--
             (a)   he has consulted in accordance with section 11;
             (b)   following that consultation, he has laid a draft order and explanatory       10
                   document before Parliament in accordance with section 12; and
             (c)   the order is made, as determined under section 13, in accordance
                   with--
                       (i)   the negative resolution procedure (see section 14);
                      (ii)   the affirmative resolution procedure (see section 15); or          15
                     (iii)   the super-affirmative resolution procedure (see section 16).


11      Consultation

  (1)     If a Minister proposes to make an order under section 1 he must--
             (a)   consult such organisations as appear to him to be representative of
                   interests substantially affected by the proposals,                           20
             (b)   where the proposals relate to the functions of one or more statutory
                   bodies, consult those bodies, or persons appearing to him to be
                   representative of those bodies,
             (c)   consult the Assembly where the proposals, so far as applying in or as
                   regards Wales, relate to any matter in relation to which the Assembly        25
                   exercises functions (and where the Assembly's agreement is not
                   required under section 9),
             (d)   where the order is made for the purpose of implementing a
                   recommendation of any one or more of the United Kingdom Law
                   Commissions, consult that Commission or those Commissions, and               30
             (e)   consult such other persons as he considers appropriate.
          But this subsection does not apply to the extent that subsection (2) applies.

  (2)     To the extent that a Minister proposes to make an order under section 1 for the
          purpose of implementing a recommendation of any one or more of the United
          Kingdom Law Commissions without material changes, the Minister must                   35
          carry out such consultation as he considers appropriate having regard to the
          consultation carried out by that Commission or those Commissions.

  (3)     If, as a result of any consultation required by subsection (1) or (2), it appears to
          the Minister that it is appropriate to change the whole or any part of his
          proposals, he must undertake such further consultation with respect to the            40
          changes as he considers appropriate.

  (4)     If, before the day on which this section comes into force, any consultation was
          undertaken which, had it been undertaken after that day, would to any extent

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                                                          Part 1 -- Power to reform legislation etc


      have satisfied the requirements of this section, those requirements shall to that
      extent be taken to have been satisfied.

  (5) Where--
         (a)   proposals for an order under section 1 are the same as proposals for an
               order under section 1 of the Regulatory Reform Act 2001 (c. 6),                        5
         (b)   consultation has at any time been undertaken in relation to the
               proposals under section 5 of that Act, and
         (c)   that consultation satisfied the requirements of that section in relation to
               the proposals,
      the requirements of this section shall be taken to have been satisfied in relation             10
      to the proposals.

  (6) In subsection (1)(b) "statutory body" means--
         (a)   a body established by or under any enactment; or
         (b)   the holder of any office so established.


12   Draft order and explanatory document laid before Parliament                                     15

  (1) If, after the conclusion of the consultation required by section 11, the Minister
      considers it appropriate to proceed with the making of an order under section
      1, he must lay before Parliament--
         (a)   a draft of the order, together with
         (b)   an explanatory document.                                                              20

  (2) The explanatory document must--
         (a)   explain whether the provision contained in the order is made for the
               purpose in section 1(1)(a) or (b) or both;
         (b)   introduce and give reasons for the provision;
         (c)   explain why the Minister considers that--                                             25
                  (i)  the conditions in section 3(2) are satisfied (where relevant); or
                 (ii)  the condition in section 3(4) is satisfied;
        (d)    to the extent that it is appropriate to do so having regard to the likely
               effect of the order, include an assessment of--
                  (i)  the savings or the increase in costs likely to result from the                30
                       provision; and
                 (ii)  the other benefits and disbenefits of the provision;
         (e)   identify and give reasons for--
                  (i)  any powers to legislate conferred by the order; and
                 (ii)  the procedural requirements attaching to those powers; and                    35
          (f)  give details of--
                  (i)  any consultation undertaken under section 11;
                 (ii)  any representations received as a result of the consultation;
                 (iii) the changes (if any) made as a result of those representations.

  (3) In the case of any provision contained in the order which is made solely for the               40
      purpose in section 1(1)(a), if the Minister considers that the provision would
      have the effect of--
         (a)   simplifying or modernising legislation,
         (b)   making the overall effect of legislation less onerous, or
         (c)   removing inconsistencies or anomalies in legislation,                                 45
      he must under subsection (2)(b) explain why.

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Part 1 -- Power to reform legislation etc


  (4)     In the case of any provision contained in the order which is made for the
          purpose in section 1(1)(b), the explanatory document must under subsection
          (2)(b)--
             (a)   identify the recommendations being implemented;
             (b)   identify the manner in which the order is intended to implement each       5
                   of the recommendations; and
             (c)   give details of, and reasons for, any differences between the
                   recommendations and the Minister's proposals.

  (5)     Where a person making representations in response to consultation under
          section 11 has requested the Minister not to disclose them, the Minister must      10
          not disclose them under subsection (2)(f)(ii) if or to the extent that to do so
          would (disregarding any connection with proceedings in Parliament)
          constitute a breach of confidence actionable by any person.

  (6)     If information in representations made by a person in response to consultation
          under section 11 relates to another person, the Minister need not disclose the     15
          information under subsection (2)(f)(ii) if or to the extent that--
             (a)   it appears to the Minister that the disclosure of that information could
                   adversely affect the interests of that other person; and
             (b)   the Minister has been unable to obtain the consent of that other person
                   to the disclosure.                                                        20

  (7)     Subsections (5) and (6) do not affect any disclosure that is requested by, and
          made to, a committee of either House of Parliament charged with reporting on
          the draft order.


13      Determination of Parliamentary procedure

  (1)     The explanatory document laid with a draft order under section 12 must             25
          contain a recommendation by the Minister as to which of the following should
          apply in relation to the making of an order pursuant to the draft order--
             (a)   the negative resolution procedure (see section 14);
             (b)   the affirmative resolution procedure (see section 15); or
             (c)   the super-affirmative resolution procedure (see section 16).              30

  (2)     The explanatory document must give reasons for the Minister's
          recommendation.

  (3)     Where the Minister's recommendation is that the negative resolution
          procedure should apply, that procedure shall apply unless, within the 21-day
          period--                                                                           35
             (a)   either House of Parliament requires that the super-affirmative
                   resolution procedure shall apply, in which case that procedure shall
                   apply; or
             (b)   in a case not falling within paragraph (a), either House of Parliament
                   requires that the affirmative resolution procedure shall apply, in which  40
                   case that procedure shall apply.

  (4)     Where the Minister's recommendation is that the affirmative resolution
          procedure should apply, that procedure shall apply unless, within the 21-day
          period, either House of Parliament requires that the super-affirmative
          resolution procedure shall apply, in which case the super-affirmative              45
          resolution procedure shall apply.

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  (5) Where the Minister's recommendation is that the super-affirmative resolution
      procedure should apply, that procedure shall apply.

  (6) For the purposes of this section a House of Parliament shall be taken to have
      required a procedure within the 21-day period if--
         (a)  that House resolves within that period that that procedure shall apply;               5
              or
         (b)  in a case not falling within paragraph (a), a committee of that House
              charged with reporting on the draft order has recommended within
              that period that that procedure should apply and the House has not by
              resolution rejected that recommendation within that period.                          10

  (7) In this section the "21-day period" means the period of 21 days beginning with
      the day on which the draft order was laid before Parliament under section 12.


14   Negative resolution procedure

  (1) For the purposes of this Part, the "negative resolution procedure" in relation to
      the making of an order pursuant to a draft order laid under section 12 is as                 15
      follows.

  (2) The Minister may make an order in the terms of the draft order unless within
      the 40-day period either House of Parliament resolves that an order may not be
      so made.

  (3) For the purposes of subsection (2) an order is made in the terms of a draft order            20
      if it contains no material changes to the provisions of the draft order.

  (4) In subsection (2) the "40-day period" means the period of 40 days beginning
      with the day on which the draft order was laid before Parliament under section
      12.


15   Affirmative resolution procedure                                                              25

  (1) For the purposes of this Part the "affirmative resolution procedure" in relation
      to the making of an order pursuant to a draft order laid under section 12 is as
      follows.

  (2) If after the expiry of the 40-day period the draft order is approved by a
      resolution of each House of Parliament, the Minister may make an order in the                30
      terms of the draft.

  (3) For the purposes of subsection (2) an order is made in the terms of a draft order
      if it contains no material changes to the provisions of the draft order.

  (4) In subsection (2) "the 40-day period" has the meaning given by section 14(4).


16   Super-affirmative resolution procedure                                                        35

  (1) For the purposes of this Part the "super-affirmative resolution procedure" in
      relation to the making of an order pursuant to a draft order laid under section
      12 is as follows.

  (2) The Minister must have regard to--
         (a)  any representations,                                                                 40
         (b)  any resolution of either House of Parliament, and

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Part 1 -- Power to reform legislation etc


             (c)   any recommendations of a committee of either House of Parliament
                   charged with reporting on the draft order,
          made during the 60-day period with regard to the draft order.

  (3)     If, after the expiry of the 60-day period, the Minister wishes to make an order
          in the terms of the draft, he must lay before Parliament a statement giving         5
          details of any representations made under subsection (2)(a).

  (4)     The Minister may after the laying of such a statement make an order in the
          terms of the draft if it is approved by a resolution of each House of Parliament.

  (5)     If, after the expiry of the 60-day period, the Minister wishes to make an order
          consisting of a version of the draft order with material changes, he must lay      10
          before Parliament--
             (a)   a revised draft order; and
             (b)   a statement giving details of--
                       (i)   any representations made under subsection (2)(a); and
                      (ii)   the revisions proposed.                                         15

  (6)     The Minister may after laying a revised draft order and statement under
          subsection (5) make an order in the terms of the revised draft if it is approved
          by a resolution of each House of Parliament.

  (7)     For the purposes of subsections (4) and (6) an order is made in the terms of a
          draft order if it contains no material changes to the provisions of the draft      20
          order.

  (8)     In this section the "60-day period" means the period of 60 days beginning with
          the day on which the draft order was laid before Parliament under section 12.


                                             General


17      Calculation of time periods                                                          25

          In calculating any period of days for the purposes of sections 13 to 16, no
          account shall be taken of any time during which Parliament is dissolved or
          prorogued or during which either House is adjourned for more than four days.


18      Combination with powers under European Communities Act 1972

  (1)     The power to make an order under section 1 may be exercised together with,         30
          and by the same instrument as, the power to make an order under section 2(2)
          of the European Communities Act 1972 (c. 68).

  (2)     Where the powers referred to in subsection (1) are so exercised--
             (a)   sections 10(2) to 16 above apply to the order under section 2(2) of the
                   European Communities Act 1972 as to the order under section 1; and        35
             (b)   paragraph 2(2) of Schedule 2 to the European Communities Act 1972
                   does not apply.


19       Interpretation of Part 1

          In this Part--
                "legislation" has the meaning given by section 1(3);                         40

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           to "legislate" means to legislate by order, rules, regulations or other
             subordinate instrument;
           "restate" means replace with alterations only of form or arrangement (and
             for these purposes to remove an ambiguity is to make an alteration
             other than one of form or arrangement);                                                  5
           "the United Kingdom Law Commissions" has the meaning given by
             section 1(4).

                                        PART 2

                                     REGULATORS


                            Exercise of regulatory functions                                         10


20   Principles

  (1) Any person exercising a regulatory function to which this section applies must
      have regard to the principles in subsection (2) in the exercise of the function.

  (2) Those principles are that--
        (a)  regulatory activities should be carried out in a way which is                           15
             transparent, accountable, proportionate and consistent;
        (b)  regulatory activities should be targeted only at cases in which action is
             needed.

  (3) The duty in subsection (1) is subject to any other requirement affecting the
      exercise of the regulatory function.                                                           20


21   Code of practice

  (1) A Minister of the Crown may issue and from time to time revise a code of
      practice in relation to the exercise of regulatory functions.

  (2) Any person exercising a regulatory function to which this section applies must
      have regard to the code in the exercise of the function.                                       25

  (3) The duty in subsection (2) is subject to any other requirement affecting the
      exercise of the regulatory function.

  (4) Where--
        (a)  a court or tribunal finds that a person has failed to comply with any
             requirement, restriction or condition,                                                  30
        (b)  the duty in subsection (2) applies in relation to the enforcement of that
             requirement, restriction or condition, and
        (c)  it appears to the court or tribunal that there has been a failure to comply
             with that duty,
      the court or tribunal may take the failure to comply with the duty under                       35
      subsection (2) into account in deciding how to deal with the failure to comply
      with the requirement, restriction or condition.


22   Code of practice: procedure

  (1) Where a Minister of the Crown proposes to issue or revise a code of practice
      under section 21, he shall prepare a draft of the code (or revised code).                      40

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Part 2 -- Regulators


  (2)     The Minister shall, in preparing the draft, seek to secure that it is consistent
          with the principles specified in section 20(2).

  (3)     The Minister shall consult the following about the draft--
             (a)   persons appearing to him to be representative of persons exercising
                   regulatory functions;                                                          5
             (b)   such other persons as he considers appropriate.

  (4)     If the Minister determines to proceed with the draft (either in its original form
          or with modifications) he shall lay the draft before Parliament.

  (5)     If, within the period of 40 days beginning with the day on which it is laid before
          Parliament, either House resolves not to approve the draft, the Minister shall         10
          take no further steps in relation to that draft.

  (6)     If no such resolution is made within that period, the Minister shall issue the
          code (or revised code) in the form of the draft, and it shall come into force on
          such date as the Minister may by order made by statutory instrument appoint.

  (7)     For the purposes of subsection (5), no account shall be taken of any period            15
          during which Parliament is dissolved or prorogued or during which either
          House is adjourned for more than four days.


                                        Supplementary


23      Functions to which sections 20 and 21 apply

  (1)     Sections 20 and 21 apply to regulatory functions specified under this section.         20

  (2)     A Minister of the Crown may by order in accordance with this section specify
          regulatory functions as functions to which sections 20 and 21 apply.

  (3)     A Minister may not under subsection (2) specify--
             (a)   a regulatory function so far as exercisable in Scotland, if or to the extent
                   that the function relates to matters which are not reserved matters;          25
             (b)   a regulatory function so far as exercisable in Northern Ireland, if or to
                   the extent that the function relates to matters which are transferred
                   matters; or
             (c)   a regulatory function exercisable only in or as regards Wales.

  (4)     The Assembly may by order in accordance with this section specify regulatory           30
          functions exercisable only in or as regards Wales as functions to which sections
          20 and 21 apply.

  (5)     An order under this section may not specify regulatory functions conferred on
          or exercisable by any of the following--
             (a)   the Gas and Electricity Markets Authority;                                    35
             (b)   the Office of Communications;
             (c)   the Office of Rail Regulation;
             (d)   the Postal Services Commission;
             (e)   the Water Services Regulation Authority.

  (6)     Before making an order under this section, the authority making the order              40
          must consult the following--
             (a)   any person (other than the authority) whose functions are to be
                   specified in the order;

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        (b)   such other persons as the authority considers appropriate.

  (7) An order under this section may make such consequential, supplementary,
      incidental, or transitional provision (including provision amending any
      enactment) as the authority making it considers appropriate; and may make
      different provision for different purposes.                                                   5

  (8) An order under this section must be made by statutory instrument.

  (9) A Minister of the Crown may not make a statutory instrument containing an
      order under this section unless a draft has been laid before, and approved by
      resolution of, each House of Parliament.

 (10) In this section--                                                                            10
           "reserved matter" and "Scotland" have the same meanings as in the
              Scotland Act 1998 (c. 46);
           "transferred matter" and "Northern Ireland" have the same meanings as
              in the Northern Ireland Act 1998 (c. 47);
           "Wales" has the same meaning as in the Government of Wales Act 1998                     15
              (c. 38).


24   "Regulatory functions"

  (1) In this Part "regulatory function" means--
        (a)   a function under any enactment of imposing requirements, restrictions
              or conditions in relation to any activity;                                           20
        (b)   a function which relates to the securing of compliance with, or the
              enforcement of, requirements, restrictions or conditions imposed in
              relation to any activity under or by virtue of any enactment.

  (2) In subsection (1)--
        (a)   the references to a function include a function exercisable by or on                 25
              behalf of the Crown;
        (b)   the references to an activity include--
                 (i)  providing any goods or services;
                (ii)  employing or offering employment to any person.

  (3) The functions referred to in subsection (1)(b) do not include functions of                   30
      conducting criminal or civil proceedings.

                                       PART 3

            LEGISLATION RELATING TO THE EUROPEAN COMMUNITIES ETC


                              Interpretation of legislation


25   References to Community instruments                                                           35

  (1) In the Interpretation Act 1978 (c. 30), after section 20 insert--

      "20A References to Community instruments

              Where an Act passed after the commencement of this section refers to
              a Community instrument that has been amended, extended or applied
              by another such instrument, the reference, unless the contrary intention             40

Legislative and Regulatory Reform Bill                                                    13
Part 3 -- Legislation relating to the European Communities etc


                    appears, is a reference to that instrument as so amended, extended or
                    applied."

  (2)     In that Act, in section 22(1) (application to Acts and Measures), after "passed
          after the commencement of this Act" insert "(subject, in the case of section 20A,
          to the provision made in that section)".                                              5

  (3)     In that Act, in section 24 (application to Northern Ireland), after subsection (3)
          insert--

         "(3A)      Section 20A applies to Northern Ireland legislation as it applies to
                    Acts."

  (4)     In the Scotland Act 1998 (Transitory and Transitional Provisions) (Publication       10
          and Interpretation etc of Acts of the Scottish Parliament) Order 1999 (S.I. 1999/
          1379), in Schedule 1 (statutory interpretation and operation) at the end insert--

          "References to Community instruments

            16         Where an Act of the Scottish Parliament passed after the
                       commencement of this paragraph refers to a Community instrument         15
                       that has been amended, extended or applied by another such
                       instrument, the reference, unless the contrary intention appears, is a
                       reference to that instrument as so amended, extended or applied."


26      EEA agreement and EEA state

  (1)     In the Interpretation Act 1978 (c. 30), in Schedule 1 (defined expressions), after   20
          the definition of "Crown Estate Commissioners" insert--

                       ""EEA agreement" means the agreement on the European Economic
                       Area signed at Oporto on 2nd May 1992, together with the Protocol
                       adjusting that Agreement signed at Brussels on 17th March 1993, as
                       from time to time modified or supplemented by or under the              25
                       Community Treaties. [The date of the coming into force of this
                       paragraph.]

                       "EEA state", in relation to any time, means--
                           (a)    a state which at that time is a member State; or
                          (b)     any other state which at that time is a party to the EEA     30
                                  agreement. [The date of the coming into force of this
                                  paragraph.]"

  (2)     In that Act, in section 24 (application to Northern Ireland), in subsection (4),
          after "The Corporation Tax Acts" insert--
                           "EEA agreement and EEA state;".                                     35

  (3)     In the Scotland Act 1998 (Transitory and Transitional Provisions) (Publication
          and Interpretation etc of Acts of the Scottish Parliament) Order 1999 (S.I. 1999/
          1379), in Schedule 2 (general definitions), after the definition of "Devolution
          issue" insert--

                       ""EEA agreement" means the agreement on the European Economic           40
                       Area signed at Oporto on 2nd May 1992, together with the Protocol
                       adjusting that Agreement signed at Brussels on 17th March 1993, as
                       from time to time modified or supplemented by or under the
                       Community Treaties.

14                                                              Legislative and Regulatory Reform Bill
                                       Part 3 -- Legislation relating to the European Communities etc


                "EEA state", in relation to any time, means--
                   (a)   a state which at that time is a member State; or
                   (b)   any other state which at that time is a party to the EEA
                         agreement."

  (4) The amendment made by subsection (3) does not have effect in relation to--                         5
         (a)  an Act of the Scottish Parliament passed before the commencement of
              this section; or
         (b)  Scottish subordinate legislation (within the meaning of the Order
              referred to in subsection (3)) made before the commencement of this
              section.                                                                                  10


                     Implementation of Community obligations etc


27   Power to make orders, rules and schemes

  (1) In section 2 of the European Communities Act 1972 (c. 68) (general
      implementation of Treaties)--
         (a)  in subsection (2), for "by regulations" substitute "by order, rules,                      15
              regulations or scheme";
         (b)  in subsection (4), for "and regulations" substitute "or orders, rules,
              regulations or schemes".

  (2) In Schedule 2 to that Act (provisions as to subordinate legislation)--
         (a)  in paragraph 2, in sub-paragraphs (1) and (2), for "regulations"                          20
              substitute "any order, rules, regulations or scheme";
         (b)  in paragraph 3, for "regulations", wherever occurring, substitute
              "order, rules, regulations or scheme".

  (3) In section 29 of the Government of Wales Act 1998 (c. 38) (implementation of
      Community law) in subsections (2) and (3), for "regulations", wherever                            25
      occurring, substitute "any order, rules, regulations or scheme".

  (4) In Schedule 8 to the Scotland Act 1998 (c. 46), in paragraph 15(3), for
      "regulations" substitute "any order, rules, regulations or scheme".

  (5) Where any enactment passed, or subordinate legislation made, before the
      coming into force of this section refers to regulations under subsection (2) of                   30
      section 2 of the European Communities Act 1972, a Minister of the Crown may
      by order or regulations amend the enactment or subordinate legislation so that
      it includes a reference to any order, rules or scheme under that subsection.

  (6) The powers of a Minister of the Crown under subsection (5)--
         (a)  so far as exercisable in relation to a matter the exercise of functions in                35
              respect of which is within devolved competence (within the meaning of
              the Scotland Act 1998), shall also be exercisable by the Scottish
              Ministers;
         (b)  so far as exercisable in relation to a transferred matter (within the
              meaning of the Northern Ireland Act 1998 (c. 47)), shall also be                          40
              exercisable by a Northern Ireland department;
         (c)  so far as exercisable in relation to a matter in respect of which functions
              are exercisable by the Assembly, shall also be exercisable by the
              Assembly.

  (7) The power under subsection (5) to make an order or regulations--                                  45

Legislative and Regulatory Reform Bill                                                      15
Part 3 -- Legislation relating to the European Communities etc


             (a)    so far as exercisable by a Minister of the Crown, the Scottish Ministers
                    or the National Assembly for Wales, shall be exercisable by statutory
                    instrument;
             (b)    so far as exercisable by a Northern Ireland department, shall be
                    exercisable by statutory rule for the purposes of the Statutory Rules         5
                    (Northern Ireland) Order 1979 (S.I. 1979/1573 (N.I. 12)).

  (8)     A statutory instrument or statutory rule containing an order or regulations
          under subsection (5)--
             (a)    if made by a Minister of the Crown, shall be subject to annulment in
                    pursuance of a resolution of either House of Parliament;                     10
             (b)    if made by the Scottish Ministers, shall be subject to annulment in
                    pursuance of a resolution of the Scottish Parliament; and
             (c)    if made by a Northern Ireland department, shall be subject to negative
                    resolution, within the meaning of the Interpretation Act (Northern
                    Ireland) 1954 (1954 c. 33 (N.I.)), as if it were a statutory instrument      15
                    within the meaning of that Act.

  (9)     In subsection (5)--
             (a)    "enactment" includes Acts of the Scottish Parliament and Northern
                    Ireland legislation;
             (b)    "subordinate legislation" means any Order in Council, order, rules,          20
                    regulations, scheme, warrant, byelaws or other instrument made under
                    any Act, Act of the Scottish Parliament or Northern Ireland legislation.


28      Power to make ambulatory references to Community instruments

          In the European Communities Act 1972 (c. 68), in Schedule 2 (provisions as to
          subordinate legislation), after paragraph 1 insert--                                   25

            "1A (1) Where--
                           (a)    subordinate legislation makes provision for a purpose
                                  mentioned in section 2(2) of this Act,
                          (b)     the legislation contains a reference to a Community
                                  instrument or any provision of a Community instrument,         30
                                  and
                           (c)    it appears to the person making the legislation that it is
                                  necessary or expedient for the reference to be construed as a
                                  reference to that instrument or that provision as amended
                                  from time to time,                                             35
                       the subordinate legislation may make express provision to that
                       effect.

                  (2) In this paragraph "subordinate legislation" means any Order in
                       Council, order, rules, regulations, scheme, warrant, byelaws or other
                       instrument made after the coming into force of this paragraph under       40
                       any Act, Act of the Scottish Parliament or Northern Ireland
                       legislation passed or made before or after the coming into force of
                       this paragraph."


29      Combination of powers

          In Schedule 2 to the European Communities Act 1972, after paragraph 2                  45

16                                                            Legislative and Regulatory Reform Bill
                                     Part 3 -- Legislation relating to the European Communities etc


    insert--

     "2A (1) This paragraph applies where, pursuant to paragraph 2(2) above, a
              draft of a statutory instrument containing provision made in exercise
              of the power conferred by section 2(2) of this Act is laid before
              Parliament for approval by resolution of each House of Parliament                        5
              and--
                (a)   the instrument also contains provision made in exercise of a
                      power conferred by any other enactment; and
                (b)   apart from this paragraph, any of the conditions in sub-
                      paragraph (2) below applies in relation to the instrument so                    10
                      far as containing that provision.

          (2) The conditions referred to in sub-paragraph (1)(b) above are that--
                (a)   the instrument, so far as containing the provision referred to
                      in sub-paragraph (1)(a) above, is by virtue of any enactment
                      subject to annulment in pursuance of a resolution of either                     15
                      House of Parliament;
                (b)   in a case not falling within paragraph (a) above, the
                      instrument so far as containing that provision is by virtue of
                      any enactment required to be laid before Parliament after
                      being made but is not required by virtue of any enactment to                    20
                      be approved by resolution of each House of Parliament in
                      order to come into or remain in force;
                (c)   the instrument so far as containing that provision is not by
                      virtue of any enactment required to be laid before Parliament
                      after being made.                                                               25

          (3) Where this paragraph applies in relation to the draft of a statutory
              instrument--
                (a)   the instrument, so far as containing the provision referred to
                      in sub-paragraph (1)(a) above, may not be made unless the
                      draft is approved by a resolution of each House of                              30
                      Parliament;
                (b)   in a case where the condition in sub-paragraph (2)(a) above is
                      satisfied, the instrument so far as containing that provision is
                      not subject to annulment in pursuance of a resolution of
                      either House of Parliament; and                                                 35
                (c)   in a case where the condition in sub-paragraph (2)(b) above
                      is satisfied, the instrument so far as containing that provision
                      is not required to be laid before Parliament after being made.

          (4) In this paragraph, references to an enactment are to an enactment
              passed or made before or after the coming into force of this                            40
              paragraph.

     2B (1) This paragraph applies where, pursuant to paragraph 2(2) above, a
              statutory instrument containing provision made in exercise of the
              power conferred by section 2(2) of this Act is laid before Parliament
              under section 5 of the Statutory Instruments Act 1946 (instruments                      45
              subject to annulment) and--
                (a)   the instrument also contains provision made in exercise of a
                      power conferred by any other enactment; and

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Part 3 -- Legislation relating to the European Communities etc


                          (b)     apart from this paragraph, either of the conditions in sub-
                                  paragraph (2) below applies in relation to the instrument so
                                  far as containing that provision.

                  (2) The conditions referred to in sub-paragraph (1)(b) above are that--
                           (a)    the instrument so far as containing the provision referred to    5
                                  in sub-paragraph (1)(a) above is by virtue of any enactment
                                  required to be laid before Parliament after being made but--
                                      (i)  is not subject to annulment in pursuance of a
                                           resolution of either House of Parliament; and
                                     (ii)  is not by virtue of any enactment required to be       10
                                           approved by resolution of each House of Parliament
                                           in order to come into or remain in force;
                          (b)     the instrument so far as containing that provision is not by
                                  virtue of any enactment required to be laid before Parliament
                                  after being made.                                               15

                  (3) Where this paragraph applies in relation to a statutory instrument,
                       the instrument, so far as containing the provision referred to in sub-
                       paragraph (1)(a) above, is subject to annulment in pursuance of a
                       resolution of either House of Parliament.

                  (4) In this paragraph, references to an enactment are to an enactment           20
                       passed or made before or after the coming into force of this
                       paragraph.

            2C         Paragraphs 2A and 2B above apply to a Scottish statutory instrument
                       containing provision made in the exercise of the power conferred by
                       section 2(2) of this Act (and a draft of any such instrument) as they      25
                       apply to any other statutory instrument containing such provision
                       (or, as the case may be, any draft of such an instrument), but subject
                       to the following modifications--
                           (a)    references to Parliament and to each or either House of
                                  Parliament are to be read as references to the Scottish         30
                                  Parliament;
                          (b)     references to an enactment include an enactment comprised
                                  in, or in an instrument made under, an Act of the Scottish
                                  Parliament; and
                           (c)    the reference in paragraph 2B(1) to section 5 of the Statutory  35
                                  Instruments Act 1946 is to be read as a reference to article
                                  10(2) of the Scotland Act 1998 (Transitory and Transitional
                                  Provisions) (Statutory Instruments) Order 1999 (S.I. 1999/
                                  1096)."

                                                  PART 4                                          40

                                      SUPPLEMENTARY AND GENERAL


                                               Supplementary


30      Repeals and savings

  (1)     The enactments mentioned in the Schedule to this Act are repealed to the
          extent specified in the second column of that Schedule.                                 45

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                                                           Part 4 -- Supplementary and general


  (2) Where a document has been laid before Parliament under section 6(1) of the
      2001 Act before the day on which this Act comes into force, the repeal by this
      Act of sections 1 to 8 of the 2001 Act does not affect the application of those
      sections in relation to the making of an implementing order.

  (3) In subsection (2) an "implementing order" in relation to any document laid                   5
      before Parliament under section 6(1) of the 2001 Act means an order to give
      effect (with or without variations) to proposals in that document.

  (4) Nothing in this Act affects the continuation in force of any order under section
      1 of the 2001 Act which--
        (a)   was made before the day on which this Act comes into force; or                      10
        (b)   is made on or after that day by virtue of subsection (2).

  (5) Nothing in this Act affects the continuation in force of any order under section
      1 of the Deregulation and Contracting Out Act 1994 (c. 40) which, immediately
      before the coming into force of this Act, continues in force by virtue of section
      12(4) of the 2001 Act.                                                                      15

  (6) In this section "the 2001 Act" means the Regulatory Reform Act 2001 (c. 6).


31   Consequential amendments

  (1) In section 6 of the Deregulation and Contracting Out Act 1994 (model
      provisions with respect to appeals), in subsection (7), for the definition of
      "enforcement action" substitute--                                                           20
                   ""enforcement action" means--
                        (a)   in relation to any restriction, requirement or condition,
                              any action taken with a view to or in connection with
                              imposing any sanction (whether criminal or otherwise)
                              for failure to observe or comply with it; and                       25
                        (b)   in relation to a restriction, requirement or condition
                              relating to the grant or renewal of licences, includes any
                              refusal to grant, renew or vary a licence, the imposition
                              of any condition on the grant or renewal of a licence and
                              any variation or revocation of a licence;".                         30

  (2) In section 100 of the Local Government Act 2003 (c. 26) (exercise of powers by
      reference to authorities' performance categories), in subsection (2)(d), for
      "section 1 of the Regulatory Reform Act 2001 (c. 6)" substitute "section 1 of the
      Legislative and Regulatory Reform Act 2006".


                                        General                                                   35


32   General interpretation

      In this Act--
            "the Assembly" means the National Assembly for Wales;
            "Minister of the Crown" has the same meaning as in the Ministers of the
              Crown Act 1975 (c. 26).                                                             40


33   Commencement

      This Act comes into force at the end of the period of two months beginning
      with the day on which it is passed.

Legislative and Regulatory Reform Bill                                             19
Part 4 -- Supplementary and general


34      Extent

  (1)     An order under section 1 which amends, repeals or replaces legislation
          extending outside England and Wales, Scotland and Northern Ireland may
          have the same extent as that legislation.

  (2)     Section 31 extends to England and Wales only.                                5

  (3)     The repeals in the Schedule have the same extent as the enactments to which
          they relate.


35      Short title

          This Act may be cited as the Legislative and Regulatory Reform Act 2006.

