Wales Bill Explanatory Notes
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This is a corrected copy and is being issued free of charge to all known recipients of the original publication. WALES BILL EXPLANATORY NOTES What these notes do These Explanatory Notes relate to the Wales Bill as introduced in the House of Commons on 7 June 2016 (Bill 5). • 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. Bill 5‐EN 56/2 Table of Contents Subject Page of these Notes Overview of the Bill 7 Policy background 7 Legal background 8 Territorial extent and application 8 Commentary on provisions of the Bill 10 Part 1: Constitutional Arrangements 10 Chapter 1: Permanence of the National Assembly for Wales and Welsh Government 10 Clause 1: Permanence of the National Assembly for Wales and Welsh Government 10 Chapter 2: Convention about Parliament legislating on devolved matters 10 Clause 2: Convention about Parliament legislating on devolved matters 10 Chapter 3: Legislative competence 10 Clause 3: Legislative competence 10 Schedule 1: New Schedule 7A to the Government of Wales Act 2006 12 Schedule 2: New Schedule 7B to the Government of Wales Act 2006 54 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 Chapter 5: Other provisions about legislation by the Assembly 60 Clause 8: Super‐majority requirement for certain legislation 60 Clause 9: Super‐majority requirement: amendments relating to procedure etc. 61 Clause 10: Introduction of Bills: justice impact assessment 61 Clause 11: Submission of Bills for Royal Assent: role of Presiding Officer 62 Chapter 6: Other provision about the Assembly 62 Clause 12 Financial control, accounts and audit 62 Clause 13: Composition of Assembly committees 62 Clause 14: Assembly proceedings: participation by UK Ministers etc 62 Clause 15: Change of the name of the Assembly etc: translation of references 63 Chapter 7: Welsh rates of income tax: removal of referendum requirement 63 Clause 16: Welsh rates of income tax: removal of referendum requirement 63 Chapter 8: Executive competence 64 Clause 17: Functions of Welsh Ministers 64 Clause 18: Implementation of EU law 65 Clause 19: Transfer of Ministerial Functions 65 Clause 20: Transferred Ministerial functions. 65 Clause 21: Consultation about cross‐border bodies 65 Part 2: Legislative and executive competence: further provision 66 Chapter 9: Onshore petroleum 66 These Explanatory Notes relate to the Wales Bill as introduced to the House of Commons on 7 June 2016 (Bill 5). 1 Clause 22: Onshore petroleum licensing 66 Clause 23: Onshore petroleum: existing licences 66 Clause 24 Onshore petroleum: right to use deep‐level land in Wales 67 Chapter 10: Road transport 68 Clause 25: Roads: speed limits, pedestrian crossings and traffic signs 68 Clause 26: Bus service registration and Traffic Commissioners 69 Clause 27: Taxis: transfer of certain functions to Welsh Ministers 69 Chapter 11: Harbours 69 Clause 28: Transfer of executive functions in relation to Welsh harbours 69 Clause 29: Transfer of executive functions: amendments of the Harbours Act 1964 70 Clause 30: Transfer of harbour functions: application of general provisions 70 Clause 31: Welsh harbours: reserved trust ports 70 Clause 32: Welsh harbours: development consent 70 Clause 33: Cross‐border harbours 71 Clause 34: Cross‐border exercise of pilotage functions 71 Clause 35: Regulations modifying the application of sections 33 and 34 71 Chapter 12: Planning for electricity generating stations 72 Clause 36: Planning consent for generating stations with 350MW capacity or less 72 Clause 37: Generating stations and public rights of navigation 72 Clause 38: Associated development of overhead lines 72 Clause 39: Alignment of associated development consent 73 Chapter 13: Equal opportunities 73 Clause 40: Equal opportunities: public sector equality duty 73 Clause 41: Public sector duty regarding socio‐economic inequalities 74 Chapter 14: Marine licensing and conservation 74 Clause 42: Marine licensing in the Welsh offshore region 74 Clause 43: Marine conservation zones 75 Chapter 15: Miscellaneous 75 Clause 44: Intervention in case of serious adverse impact on sewerage services etc 75 Clause 45: Transfer of functions in relation to excepted energy buildings 76 Clause 46: Renewable energy incentive schemes: consultation 76 Part 3: Miscellaneous 76 Clause 47: Provision of information to the Office for Budget Responsibility 76 Clause 48: Gas and Electricity Markets Authority 76 Clause 49: Licensing of coal‐mining operations: approval by Welsh Ministers 77 Clause 50: Office of Communications 77 Part 4: General 77 Clause 51: Consequential provision 77 Schedule 5: Minor and consequential amendments 78 Part 1: Amendments of the Government of Wales Act 2006 78 Part 2: Amendments relating to onshore petroleum 78 Part 3: Amendments of other Acts 80 Clause 52: Transitional provision and savings 82 Schedule 6: Transitional provisions 83 Clause 53: Commencement 84 Clause 54: Short title 84 Commencement 84 Financial implications of the Bill 84 Compatibility with the European Convention on Human Rights 85 These Explanatory Notes relate to the Wales Bill as introduced to the House of Commons on 7 June 2016 (Bill 5). 2 Related documents 85 Annex A ‐ Territorial extent and application 86 Minor or consequential effects 87 Annex B ‐ The legislative competence tests 88 These Explanatory Notes relate to the Wales Bill as introduced to the House of Commons on 7 June 2016 (Bill 5). 3 89 These Explanatory Notes relate to the Wales Bill as introduced to the House of Commons on 7 June 2016 (Bill 5). 4 90 These Explanatory Notes relate to the Wales Bill as introduced to the House of Commons on 7 June 2016 (Bill 5). 5 91 These Explanatory Notes relate to the Wales Bill as introduced to the House of Commons on 7 June 2016 (Bill 5). 6 Overview of the Bill 1 The Wales Bill will implement those elements of the St David’s Day agreement which require legislative changes. It will create 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 permanent parts of the UKʹs constitutional arrangements and will not be abolished without a decision of the people of Wales, and that the UK Parliament will not normally legislate in devolved areas 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 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 The Government established what became known as the St David’s Day process in November 2014. 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. The process also looked at whether there was political consensus to implement for Wales some elements of the Smith Commission proposals for Scotland. 7 The command paper, Powers for a purpose: Towards a lasting devolution settlement for Wales, published on 27 February 2015, set out the recommendations on which there was political consensus. Those recommendations requiring legislative change were included in the draft Bill which was published on the 20 October 2015 for pre‐legislative scrutiny. The Bill as introduced includes changes that have been made as a result of that scrutiny process and changes that These Explanatory Notes relate to the Wales Bill as introduced to the House of Commons on 7 June 2016 (Bill 5). 7 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.