Section 123J Effect of local service contracts: registration requirements and provision of servicesC3C4F1C1C2
Where a franchising scheme has been made, subsections (2) and (3) apply as soon as the effective time of any local service contract to which the franchising scheme relates is reached, subject to subsection (4).
Sections 6 to 9 of the Transport Act 1985 (registration of local services) do not have effect in relation to the area to which the franchising scheme relates.
No local service may be provided in the area to which the franchising scheme relates (if there is a stopping place for the service in that area) unless—
it is provided under a local service contract,
it is an interim service (see section 123O), or
it is provided under a service permit (see section 123P).
If the scheme provides for scheme sub-areas, subsections (2) and (3) apply in relation to each scheme sub-area as soon as the effective time of any local service contract for the provision of a local service in that scheme sub-area is reached, as if references in subsections (2) and (3) to the area to which the scheme relates were references to the scheme sub-area.
Subsections (2) and (3) do not apply in relation to—
a local service which is excepted from regulation arising because of the proposed scheme by any provision of the scheme that is made under section 123H(5), F2...
the use of a vehicle under a permit granted under section 22 of the Transport Act 1985 F3, or
a service falling within subsection (8).
If it appears to a franchising authority that—
a person is operating or has operated a local service in contravention of subsection (3), and
in operating that local service, the person is failing or has failed to take all reasonable precautions and to exercise all due diligence to avoid contravening subsection (3),
the authority must inform a traffic commissioner.
The effective time, in relation to a local service contract, is the beginning of the day on which a local service may first be provided under the contract (see sections 123K(4) and 123L).
A service falls within this subsection if it is a local service provided under an agreement entered into, where a service for the carriage of passengers by railway or tramway has been temporarily interrupted—
under section 40 of the Railways Act 2005 (substitute road services), or
with the person who usually provides the railway or tramway service.
Annotations
Textual amendments
- F1
Ss. 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)
- F2
Word in s. 123J(5)(a) omitted (26.1.2026) by virtue of Bus Services Act 2025 (c. 24), ss. 8(2)(a), 41(5); S.I. 2026/46, reg. 2(g)
- F3
S. 123J(5)(c) and word inserted (26.1.2026) by Bus Services Act 2025 (c. 24), ss. 8(2)(b), 41(5); S.I. 2026/46, reg. 2(g)
- F4
S. 123J(8) inserted (26.1.2026) by Bus Services Act 2025 (c. 24), ss. 8(3), 41(5); S.I. 2026/46, reg. 2(g)
Modifications
- C1
Ss. 123A-123X: functions transferred (28.2.2024) by The East Midlands Combined County Authority Regulations 2024 (S.I. 2024/232), regs. 1(2), 15(2)
- C2
Ss. 112-159: transfer of functions (5.2.2025) by The Hull and East Yorkshire Combined Authority Order 2025 (S.I. 2025/113), arts. 1(2), 7
- C3
Pt. 2: transfer of functions (2.11.2018) by The Newcastle Upon Tyne, North Tyneside and Northumberland Combined Authority (Establishment and Functions) Order 2018 (S.I. 2018/1133), arts. 1, 7 (with art. 28)
- C4
Pt. 2: functions made exercisable (2.11.2018) by The Newcastle Upon Tyne, North Tyneside and Northumberland Combined Authority (Establishment and Functions) Order 2018 (S.I. 2018/1133), arts. 1, 9 (with art. 28)
Notes on Part II
Modifications
- C1
Pt. 2: power to amend conferred (17.10.2007 for specified purposes, 1.4.2008 in so far as not already in force) by Concessionary Bus Travel Act 2007 (c. 13), ss. 8(1), 9(1)(2), 10(1)(2), 15(1); S.I. 2007/2799, arts. 2, 3 (with art. 4)
- C2
Pt. 2: transfer of functions (1.4.2014) by The Halton, Knowsley, Liverpool, St Helens, Sefton and Wirral Combined Authority Order 2014 (S.I. 2014/865), arts. 1, 8(1)(b) (with arts. 8(4), 12)
- C3
Pt. 2: transfer of functions (15.4.2014) by The Durham, Gateshead, Newcastle Upon Tyne, North Tyneside, Northumberland, South Tyneside and Sunderland Combined Authority Order 2014 (S.I. 2014/1012), arts. 1, 8, 9 (with art. 11)
- C4
Pt. 2: delegation of functions (1.4.2016) by The Tees Valley Combined Authority Order 2016 (S.I. 2016/449), arts. 1(a), 6(b)
- C5
Pt. 2: functions made exercisable (9.2.2017) by The West of England Combined Authority Order 2017 (S.I. 2017/126), arts. 1(3), 8
- C6
Pt. 2: functions made exercisable (9.2.2017) by The West of England Combined Authority Order 2017 (S.I. 2017/126), arts. 1(3), 8(1)
- C7
Pt. 2: functions made exercisable (3.3.2017) by The Cambridgeshire and Peterborough Combined Authority Order 2017 (S.I. 2017/251), arts. 1(2)(b), 8(b)
- C8
Pt. 2: functions made exercisable (8.5.2017) by The Tees Valley Combined Authority (Functions and Amendment) Order 2017 (S.I. 2017/431), arts. 1(2), 4(1)(2)
- C11
Pt. 2 applied (with modifications) (W.) (28.2.2022) by The South East Wales Corporate Joint Committee Regulations 2021 (S.I. 2021/343), regs. 1(3)(b), 12(2)
- C12
Pt. 2 applied (with modifications) (30.6.2022) by The North Wales Corporate Joint Committee Regulations 2021 (S.I. 2021/339), regs. 1(3)(b), 12(2)
- C13
Pt. 2 applied (with modifications) (30.6.2022) by The Mid Wales Corporate Joint Committee Regulations 2021 (S.I. 2021/342), regs. 1(3)(b), 12(2)
- C14
Pt. 2 applied (with modifications) (W.) (30.6.2022) by The South West Wales Corporate Joint Committee Regulations 2021 (S.I. 2021/352), regs. 1(3)(b), 12(2)
- C15
Pt. 2: functions made exercisable (20.12.2023) by The York and North Yorkshire Combined Authority Order 2023 (S.I. 2023/1432), arts. 1(2), 13(1)(2)
- C16
Pt. 2: functions made exercisable (28.2.2024) by The East Midlands Combined County Authority Regulations 2024 (S.I. 2024/232), regs. 1(2), 15(1)
- C17
Pt. 2: functions made exercisable concurrently (E.) (7.5.2024) by The North East Mayoral Combined Authority (Establishment and Functions) Order 2024 (S.I. 2024/402), arts. 1(3), 19(c) (with art. 9)
- C18
Pt. 2: transfer of functions (with modifications) (5.2.2025) by The Devon and Torbay Combined County Authority Regulations 2025 (S.I. 2025/115), regs. 1(2), 10
- C19
Pt. 2: functions made exercisable (with modifications) (5.2.2025) by The Greater Lincolnshire Combined County Authority Regulations 2025 (S.I. 2025/117), regs. 1(2), 14
- C20
Pt. 2: functions made exercisable (5.2.2025) by The Hull and East Yorkshire Combined Authority Order 2025 (S.I. 2025/113), arts. 1(2), 7
- C21
Pt. 2: functions made exercisable (with modifications) (5.2.2025) by The Lancashire Combined County Authority Regulations 2025 (S.I. 2025/118), regs. 1(2), 10