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Wales Bill Explanatory Notes WALES BILL EXPLANATORY NOTES What these notes do These Explanatory Notes relate to the Wales Bill as brought from the House of Commons on 13 September 2016 (HL Bill 63). These Explanatory Notes have been prepared by the Wales Office in order to assist the reader of the Bill and to help inform debate on it. They do not form part of the Bill and have not been endorsed by Parliament. These Explanatory Notes explain what each part of the Bill will mean in practice; provide background information on the development of policy; and provide additional information on how the Bill will affect existing legislation in this area. These Explanatory Notes might best be read alongside the Bill. They are not, and are not intended to be, a comprehensive description of the Bill. So where a provision of the Bill does not seem to require any explanation or comment, the Notes simply say in relation to it that the provision is self‐explanatory. HL Bill 63‐EN 56/2 Table of Contents Subject Page of these Notes Overview of the Bill 4 Policy background 4 Legal background 5 Territorial extent and application 5 Commentary on provisions of the Bill 7 Part 1: Constitutional Arrangements 7 Chapter 1: Permanence of the National Assembly for Wales and Welsh Government 7 Clause 1: Permanence of the National Assembly for Wales and Welsh Government 7 Chapter 2: Convention about Parliament legislating on devolved matters 7 Clause 2: Convention about Parliament legislating on devolved matters 7 Chapter 3: Legislative competence 7 Clause 3: Legislative competence 7 Schedule 1: New Schedule 7A to the Government of Wales Act 2006 9 Schedule 2: New Schedule 7B to the Government of Wales Act 2006 53 Clause 4: Wales public authorities 57 Chapter 4: Elections 58 Clause 5: Power to make provision about elections 58 Clause 6: Timing of elections 59 Clause 7: Electoral registration: the Digital Service 60 Clause 8: Elections of police and crime commissions 61 Chapter 5: Other provisions about legislation by the Assembly 61 Clause 9: Super‐majority requirement for certain legislation 61 Clause 10: Super‐majority requirement: amendments relating to procedure etc. 62 Clause 11: Introduction of Bills: justice impact assessment 63 Clause 12: Submission of Bills for Royal Assent: role of Presiding Officer 63 Chapter 6: Other provision about the Assembly 63 Clause 13 Financial control, accounts and audit 63 Clause 14: Composition of Assembly committees 64 Clause 15: Assembly proceedings: participation by UK Ministers etc 64 Clause 16: Change of the name of the Assembly etc: translation of references 64 Chapter 7: Welsh rates of income tax: removal of referendum requirement 65 Clause 17: Welsh rates of income tax: removal of referendum requirement 65 Chapter 8: Executive competence 65 Clause 18: Functions of Welsh Ministers 65 Clause 19: Implementation of EU law 66 Clause 20: Transfer of Ministerial Functions 66 Clause 21: Transferred Ministerial functions. 67 Clause 22: Consultation about cross‐border bodies 67 Part 2: Legislative and executive competence: further provision 67 Chapter 9: Onshore petroleum 67 These Explanatory Notes relate to the Wales Bill as brought from the House of Commons on 13 September 2016 (HL Bill 63). 1 Clause 23: Onshore petroleum licensing 67 Clause 24: Onshore petroleum: existing licences 68 Clause 25 Onshore petroleum: right to use deep‐level land in Wales 68 Chapter 10: Road transport 70 Clause 26: Roads: speed limits, pedestrian crossings and traffic signs 70 Clause 27: Bus service registration and Traffic Commissioners 70 Clause 28: Taxis: transfer of certain functions to Welsh Ministers 71 Chapter 11: Harbours 71 Clause 29: Transfer of executive functions in relation to Welsh harbours 71 Clause 30: Transfer of executive functions: amendments of the Harbours Act 1964 71 Clause 31: Transfer of harbour functions: application of general provisions 71 Clause 32: Welsh harbours: reserved trust ports 72 Clause 33: Development consent 72 Clause 34: Cross‐border harbours 72 Clause 35: Cross‐border exercise of pilotage functions 72 Clause 36: Sections 34 and 35: supplementary 73 Chapter 12: Planning for electricity generating stations 73 Clause 37: Planning consent for generating stations with 350MW capacity or less 73 Clause 38: Generating stations and public rights of navigation 74 Clause 39: Safety zones around renewable energy installations 74 Clause 40: Associated development of overhead lines 74 Clause 41: Alignment of associated development consent 75 Chapter 13: Equal opportunities 75 Clause 42: Equal opportunities: public sector equality duty 75 Clause 43: Public sector duty regarding socio‐economic inequalities 76 Chapter 14: Marine licensing and conservation 76 Clause 44: Marine licensing in the Welsh offshore region 76 Clause 45: Marine conservation zones 77 Chapter 15: Miscellaneous 77 Clause 46: Intervention in case of serious adverse impact on sewerage services etc 77 Clause 47: Transfer of functions in relation to excepted energy buildings 78 Clause 48: Renewable energy incentive schemes: consultation 78 Part 3: Miscellaneous 78 Clause 49: Provision of information to the Office for Budget Responsibility 78 Clause 50: Gas and Electricity Markets Authority 79 Clause 51: Licensing of coal‐mining operations: approval by Welsh Ministers 79 Clause 52: Office of Communications 79 Part 4: General 80 Clause 53: Consequential provision 80 Schedule 5: Minor and consequential amendments 80 Part 1: Amendments of the Government of Wales Act 2006 80 Part 2: Amendments relating to onshore petroleum 81 Part 3: Amendments of other Acts 83 Clause 54: Transitional provision and savings 87 Schedule 6: Transitional provisions 88 Clause 55: Commencement 89 Clause 56: Short title 90 Commencement 90 Financial implications of the Bill 90 These Explanatory Notes relate to the Wales Bill as brought from the House of Commons on 13 September 2016 (HL Bill 63). 2 Compatibility with the European Convention on Human Rights 90 Related documents 90 Annex A ‐ Territorial extent and application 92 Minor or consequential effects 93 Annex B ‐ The legislative competence tests 94 These Explanatory Notes relate to the Wales Bill as brought from the House of Commons on 13 September 2016 (HL Bill 63). 3 Overview of the Bill 1 The Wales Bill seeks to implement those elements of the St David’s Day agreement which require legislative changes. It is aimed at creating a clearer and stronger settlement in Wales which is durable and long‐lasting. 2 The Bill is an enabling Bill and the majority of the provisions in the Bill set out the powers that are being transferred to the National Assembly for Wales (the Assembly) and/or the Welsh Ministers. 3 In particular, the Wales Bill amends the Government of Wales Act 2006 (GoWA) by moving to a reserved powers model for Wales. This is the model that underpins the devolution settlement in Scotland. The reserved powers model set out in the Bill will provide a clearer separation of powers between what is devolved and what is reserved, enabling the Assembly to legislate on any subject except those specifically reserved to the UK Parliament. 4 The Bill includes a declaration that the Assembly and the Welsh Ministers are considered a permanent part of the UKʹs constitutional arrangements and will not be abolished without a decision of the people of Wales. It is also declared that the UK Parliament will not normally legislate with regard to devolved matters without the consent of the Assembly, whilst retaining the sovereignty to do so. 5 The Bill also devolves further powers to the Assembly and the Welsh Ministers in areas where there was political consensus in support of further devolution. These include: a. Devolving greater responsibility to the Assembly to run its own affairs, including deciding its name; b. Devolving responsibility to the Assembly for ports policy, speed limits, bus registration, taxi regulation, local government elections, sewerage and energy consenting up to 350MW (see below for additional detail); c. Devolving responsibility to Welsh Ministers for marine licensing and conservation and energy consents in the Welsh offshore region; and extending responsibility for building regulations to include excepted energy buildings; d. Devolving power over all elements of Assembly elections; and e. Devolving powers over the licensing of onshore oil and gas extraction Policy background 6 In November 2014 the Government established what became known as the St David’s Day process. Its aim was to determine where there was political consensus to implement the recommendations of Sir Paul Silk’s Commission on Devolution in Wales second report (Silk II) on the powers of the Assembly (see Empowerment and Responsibility: legislative powers to strengthen Wales, published in March 2014). The process also looked at whether there was political consensus to implement for Wales some elements of the Smith Commission proposals for Scotland (see Report of the Smith Commission for further devolution of powers to the Scottish Parliament), published in November 2014). 7 The command paper, Powers for a purpose: Towards a lasting devolution settlement for Wales, published on 27 February 2015 (Cm 9020), set out the recommendations on which there was These Explanatory Notes relate to the Wales Bill as brought from the House of Commons on 13 September 2016 (HL Bill 63). 4 political consensus. Those recommendations requiring legislative change were included in the draft Wales Bill which was published on the 20 October 2015 for pre‐legislative scrutiny (Cm 9144). The Bill as introduced includes changes that have been made as a result of that scrutiny process and changes that have been made as a consequence of discussions with the Welsh Government and the Assembly Commission. 8 The St David’s Day process also examined some of the powers which are being devolved to Scotland under the Smith Commission agreement. The Bill takes forward two significant commitments from this exercise around which there was strong political consensus.
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