national land transport bill
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National Land Transport Bill. Portfolio Committee on Transport Clause-by Clause Explanation 29 July 2008. 1: Definitions. Some major changes to definitions: “contracting authority”: now includes designated planning authorities (DPAs) (note: “DPA” includes transport authorities (TAs) - PowerPoint PPT PresentationTRANSCRIPT
National Land Transport Bill
Portfolio Committee on Transport
Clause-by Clause Explanation
29 July 2008
1: Definitions
Some major changes to definitions:
“contracting authority”: now includes designated planning authorities (DPAs) (note: “DPA” includes transport authorities (TAs)
“designated planning authority”: the 12 largest cities. Minister can add others after consultation
“minibus” and other vehicle types: changed by Act 26 of 2006 to be in line with National R Traffic Act, 1996
1: Definitions cont.
Some major changes to definitions cont.:
“municipal public transport”: wider definition
“negotiated contract”: now only applies to first round of contracts, i.e. one-off contracts, for:
- Integrating services – e.g. for PT networks (IRPTNs)- Promoting small business and PDIs- Restructuring of parastatal or municipal operators
“permit”: there are still many unconverted permits (also outstanding SLP & “Be Legal” applications) – clauses 56 to 58 provide a transitional strategy
“public transport”: wider definition
2. Purpose and scopeof Act
Explains purpose and scope of Bill Complete transformation process Give effect to national policy Prescribe national policies, principles, requirements etc.
3. Application of Act Act will apply throughout the country
Previous approach of having Ch.2 dealing with national issues and Ch. 3 dealing with provincial issues led to disparate laws and confusion
Bill provides for a more uniform, national approach Provinces can still make laws on public transport
4. Principles for national land
transport policy Principles will now be in regulations, not in the Act
These principles will be similar to s.4 of the NLTTA
5. Functions of Minister
Largely based on the NLTTA Some new functions added, e.g
Only the Minister is responsible for land transport arrangements with other countries
Minister can issue directives to provinces not acting in strategic interests of country
6. Information systems
Deals with the National Info. System (NIS) Has been expanded, e.g. to ensure that info
systems cater fully for registration of operators
Existing OLAS and RAS and SUMS systems will be incorporated: the combined system will be called the Operating Licence Administrative System (OLAS)
7. Delegations by Minister Provides for delegation of Minister’s functions
to officials in the Department
8. Regulations by Minister
Empowers the Minister to make regulations on land transport issues
Will be more uniform national regulations, e.g. on applying for operating licences
9. Functions of MECs
Provides for functions of MECs Provinces feel that these should be expanded
to include a wider range of issues
10. Regulations by MEC
Empowers the MECs to make regulations Provinces feel that the list should be expanded
11. Roles of spheres of government Explains the roles of the 3 spheres of government in
response to the need identified by the National LT Strategy
12. Impartiality
As with the NLTTA, provides that certain officials and politicians should remain impartial and not have financial interests in the PT industry
Clause includes officials of new entities to be established
13. Planning authorities
This clause provides for the general functions of planning authorities, which are defined as municipalities and TAs
14. Intermodal planning committees
These committees were suggested by the PT Strategy Every DPA must establish such a committee Function is to co-ordinate transport between the modes A major need is to co-ordinate between rail and road PT
15. Land transport advisory boards A planning authority (PA) may establish such
a board Its function will be to advise the PA Minister may make regulations on
membership, procedures etc.
16. Establishment of TAs & related matters The TA model is essentially the same as with
the NLTTA as suggested by the PT Strategy One or more municipalities may form a TA for
a “functional transport area” However, the NT has insisted that a TA must
be a municipal entity under the Municipal Systems Act and subject to the MFMA
This means that the governing body will be professional and may not consist of councillors
17. Directions by Minister The Minister may direct one or more municipalities to form a TA,
after consulting the MEC(s) This is a new concept Provinces suggest that the clause be amended to provide for
encouragement rather than direction
18. Founding agreements for TAs
Provides for founding agreements to establish TAs The MEC or MECs must be a party to the agreement Gauteng Province has commented that other spheres of
government do not need to be involved
19. TAs: Governing bodies and staffing As stated above, governing bodies must
comply with the Systems Act and may not consist of councillors
This clears up the confusion created by the amendments to the Systems Act after the NLTTA came into force
TAs may employ their own staff or use existing departments within the municipality/ies
20. Powers and functions of TAs Deals with the powers and functions of TAs In the NLTTA there were 6 compulsory
functions and a range of voluntary ones In the Bill, the full list of functions will be
compulsory, except municipal roads, as recommended by the PT Strategy
The function of municipal roads remains voluntary
21. Transport areas & TAsacross provincial boundaries As with the NLTTA, TAs may stretch across
provincial boundaries, e.g. Tshwane/N West Depends on functional transport area
22. Finances of TAs
Deals with finances of TAs Detail will be in regulations
23. Dissolution of TAs
All municipalities party to the TA and the MEC must agree in writing to dissolve a TA
Is a change from the NLTTA: detail will be in regulations
24. Establishment of National PT Regulator Will be a national entity responsible for
operating licences (OLs) for interprovincial and tourist services
Will consist of not more than 5 designated officials of the DoT
Will have additional support staff Comments received that there must be a
representative from the tourist industry and that appointment should be more flexible
25. Functions of NPTR
NPTR will monitor and oversee PT in the country and other entities
Will be responsible for interprovincial and tourist transport
Will provide a procedures manual
26. Powers of NPTR
NPTR may make inquiries and hold hearings Powers of the NPTR will be provided for in
regulations
27. Establishment ofProv Regulatory Entities Every MEC must establish a PRE PREs will replace the Provincial OL Boards Will consist of not more than 4 dedicated
officials in the provincial department Will have additional support staff Provinces have commented that the MECs
should have more flexibility in appointing PREs
28. Functions of PREs
PREs will monitor and oversee PT in the province
Will deal with OL applications for intraprovincial transport outside of DPA areas
29. Powers of PREs
PREs may make inquiries and hold hearings Other powers will be in regulations
30. Designated planning authorities The 12 DPAs (others may be added later by Minister)
must establish a dedicated unit within their administrations
That unit must consist of dedicated officials The DPA must arrange or re-organise its
administration to integrate land use planning etc. Provinces have commented that DPAs should not be
appointed automatically, but should apply to the MEC, who may appoint them as APAs if: They have the capacity They have an acceptable integrated transport plan They have re-organised their administrations
31. Functions of DPAs
DPAs will perform all of the TA functions listed in clause 20
DPAs will deal with OL applications for services within their areas
Where services take place in adjoining DPA areas, concurrence of the other DPA is required
Where services take place in a DPA area and also in the area of another PA, the PA must be asked for recommendations
The Minister may defer the date on which a DPA takes over the function, if it lacks the capacity etc.
The provinces have commented that the regulatory function in respect of all transport between municipal or TA areas should remain with the province
32. Powers of DPAs
DPAs may make inquiries or hold hearings Other powers will be in regulations
33. National LT Fund
This clause creates a NLT Fund as suggested by the PT Strategy
Will be a dedicated fund for land transport Minister may make payments from the Fund to
provinces, TAs or municipalities The NT have not objected to the funding clauses
34. Provincial LT funds
Provides for the creation of a provincial LT fund for each province
MEC will administer the fund and may make payments to TAs or municipalities
35. Municipal LT funds
Provides for the creation of a LT fund for each designated planning authority (includes TAs)
In the case of a TA, this fund must be kept separate from its normal funds
36. Public transport user charges DPAs will be empowered to raise these user charges The charges are similar to those in section 21 of the
Urban Transport Act, 1977 Money must be paid into the relevant municipal LT
fund
37. Minister may provide funds for LT
Minister may provide funding to other spheres, including TAs, for land transport
38. MEC may provide funds for LT The MEC may provide funding to TAs or
municipalities for land transport
39. Municipalities may provide funds to TAs
A municipality may appropriate money for a TA of which it is a part for land transport
40. General principles for transport planning Provides for principles for transport planning
and its integration with land use planning Detail will be in regulations
41. Types of plans required by this Act
Describes the types of transport plans required by the Act
42. General provisions on transport planning Deals with general provisions for transport planning Planning provisions are essentially the same as the
NLTTA, as amended by Act 26 of 2006
43. NLT Strategic Framework
The Minister must prepare and update the NLTSF, as with the NLTTA
The NLTSF will now include the National Transport Master Plan, the National Rail Plan etc., in terms of the Planning Requirements
44. Provincial LT frameworks Each MEC must prepare and update the
PLTF, as with the NLTTA
45. Integrated transport plans
All planning authorities must prepare and update ITPs, as with the NLTTA
Minimum Requirements for ITPs were published in the Gazette on 30 November 2007
46. Freight transport
Deals with freight transport Planning authorities must develop a freight
transport strategy The strategy must include routes for
transporting dangerous goods In line with the PT Strategy, freight will remain
deregulated by legislation, but there should be incentives etc., e.g. to encourage the move from road to rail
47. Publication of transport plans Provides for the publication of transport plans
and their effect on land use, as with the NLTTA
48. Cancellation of OLs in rationalising PT Where there is a surplus of services, a PA
may: Offer the operator an alternative route, or Impose a moratorium on the route
If this fails, the PA may effect cancellation of the OL after giving the operator an opportunity to make representations
49. Integration of bus contract system Provinces and PAs must take steps to
integrate services subject to contracts into the larger PT system in terms of ITPs
50. Negotiated contracts
Contracting authorities may enter into negotiated contracts with existing holders of permits or other operators as a first round to establish IRPTNs
Purpose is to: Integrate services Promote small business or persons previously
disadvantaged Facilitate restructuring of parastatal or municipal
operators A negotiated contract will be for a maximum of 12
years After first round, services must go out on tender
51. Subsidised service contracts After expiry of negotiated contracts or existing
contracts, services must be put out to tender Validity period of contracts may not exceed 7 years The Minister can still prescribe model documents, but
they will be more flexible
52. Commercial service contracts
These are contracts between a contracting authority and an operator where no subsidy is involved
Minister may make regulations for the conversion of all scheduled services to contracted services
53. Requirements to qualify as tenderer Requirements will be specified in regulations Will essentially be the same as NLTTA (financial
ringfencing etc.)
54. Involvement of municipalities & TAs in PT
Deals with involvement of municipalities and TAs in PT services
Municipal operators must be financially ringfenced to tender for contracts
55. Lapsing of certaincontract arrangements Where an existing contract is hampering the
establishment of an IRPTN, the authority must negotiate with the operator for inclusion in the IRPTN, or make an offer
If this fails, the contract will lapse
56. Rationalisation of existing services
Existing permits remain valid until they expire, or if indefinite, will expire after 7 years if not converted to OLs
Operators may not receive subsidy or other government assistance if they have not converted their permits
57. Rationalisation of ex. scheduled services In areas where there are contracts, permits must be
converted to OLs specific to the contract Permits for non-contracted services with the same
operator in the same area will be cancelled Existing non-contracted scheduled services will be
converted to commercial service contracts Minister must make regulations in 2 years to integrate
existing non-contracted scheduled services with contracted services and covert them to commercial service contracts
58. Rationalisation of minibus taxi services Holders of permits or OLs can apply to recap and may either:
Get scrapping allowance and leave the industry, or Acquire a new, approved vehicle and obtain an OL for it A move from minibus to midibus on a “one-for-one” basis is
allowed if PA approves Permits not converted after 7 years will lapse NB: clause should be amended to provide that the new OL must
be route based, and that it must be based on the operator’s actual operations over the previous 180 days
NT and DoT want the clause to be amended to remove reference to scrapping allowances as a statutory requirement
59. Regulation of road based PT No one may operate a road-based PT service
without holding an OL or permit Clause should be amended to add “or permit,
subject to sections 56 to 58” OLs must be based on transport plans (ITPs)
60. Entities that must issue OLs
Provides for the entities that must issue OLs
61. Maximum validity period of OLs Maximum validity period of OLs is extended to 7
years Where a negotiated contract is awarded for more
than 7 years, the OL will be valid for the contract period
62. Exemptions
Some services are exempt from the OL requirement Minister may make regulations to impose controls on
them, e.g. courtesy services
63. Application for new OL Deals with applications for new OLs
64. OLs for services provided for in transport plans
Where the NPTR or a PRE deals with an application, it must refer it to relevant PAs for their recommendations
The relevant ITP will dictate whether the OL should be granted or not
PAs must make their plans available to the NPTR and PREs
65. OLs for contracted services Where a contract has been awarded, the operator is
entitled to an OL for each vehicle used in terms of the contract
The OL must be specific to the contract
66. Disposing of OL applications for non-contracted services
This clause provides the factors to be considered in dealing with an application for an OL for a non-contracted service
67. Renewal, amendment or transfer of an OL This clause provides for the renewal,
amendment or transfer of an OL Transfer is allowed if the existing holder or
his/her executor consents and the new operator is approved by the relevant entity
68. Publication of decisions Entities must give notice of OL applications in
the prescribed manner Regulations will not always require
publication in the Gazette If no objections received, the entity may
proceed
69. Special events
An operator who already holds a permit or OL may apply for a temporary OL for a special event if the area/route is not already covered by the permit/OL
70. Major special events Minister may make special regulations for
large events such as 2010 The regulations may override or expedite
normal procedures etc., but just for the period of the event
71. Issue and contentsof OL Provides for the issuing and contents of OLs A valid tax clearance is required, proof of
insurance as prescribed in regulations, valid roadworthy certificate, etc.
72. Authority conveyed by an OL
An OL does not authorise activities prevented or regulated by other laws
73. Persons who may hold OLs Only a person registered under the National
R Traffic Act as owner or operator of the vehicle may hold an OL
This includes persons who have leased a vehicle from a financial institution
An OL may be issued to a sub-contractor in the case of a contract with an authority
74. Long distance services Provides for factors to be considered in the
case of long distance services An OL may authorise both local and long
distance services if the PA approves
75. Metered taxi services Metered taxis must have SABS approved
meters Entities may specify an area for picking up
passengers, but no longer have to do so Minister may make regulations on standards,
livery etc.
76. Charter services
An OL may authorise pre-booked charter services in addition to other services
Vehicles with drivers are allowed, provided that the entity is satisfied that they should not rather be metered taxi services
77. Staff services
Provides for the regulation of staff services Minister may make regulations to regulate
them
78. Lift clubs
The current requirement that every member of the lift club must own a vehicle may be relaxed, but the Minister may make regulations, e.g. requiring a letter from the employer to be kept in the vehicle
79. Tuk-tuks
Tuk-tuks may be used where the ITP allows for it
Minister may make regulations, e.g on routes or maximum speeds
80. Adapted LDVs
LDVs must be adapted according to the National R Traffic Act to carry passengers for reward
LDVs may be used if no other acceptable transport, subject to regulations
81. Transporting of scholars & students Minister may make special regulations on scholar
transport
82. Amendment of OL to replace the vehicle
An OL may be amended “over the counter” to replace the vehicle
Vehicle must fall in the same category or, in case of a bus, must be not more than 20% larger
83. Temporary re-placement of vehicle Provides for temporary replacement of a
vehicle, as with the NLTTA
84. Cross-border transport Provides for the interaction between domestic
and cross-border transport C-B transport is regulated by the Cross-
Border Road Transport Act 4 of 1998 – a permit is required from the CBRTA
Where passengers intend to cross a border, this is C-B transport
Where passengers are picked up or set down within 2 km of a border, this will be deemed to be C-B transport in a criminal prosecution
85. Duties of holderof an OL These duties will be specified in regulations
86. No cession, hiring etc. of an OL
The holder of an OL may not cede, hire or alienate it, except in the case of a transfer authorised by the relevant entity
87. Cancellation of OLnot in use Where an OL has not been in use for 180 days it may
be cancelled The holder may provide representations: if there is
good reason the non-use may be condoned
88. Withdrawal or suspension of an OL
An OL or permit may be withdrawn for “misconduct”, e.g failure to comply with its conditions
89. Tourist transport services Due to the new accreditation system for
tourist transport operators, this clause provides that operators must also comply with tourist legislation
90. Accreditation of tourist operators All operators of tourist transport will have to
apply for accreditation Operator must be a “fit and proper person”
and comply with technical requirements Operators must renew their accreditation
every 5 years
91. Application foraccreditation Provides procedures and requirements to
apply for accreditation
92. Cancellation of accreditation
Provides for cancellation of accreditation, e.g. when required standards are no longer met
93. Certification of vehicles Where an operator is accredited, he/she may
only use certified vehicles
94. LT law enforcement
Provides for agreements between LT law enforcement agencies, as with NLTTA
95. Appointment of inspectors Provinces, TAs and DPAs may appoint
inspectors for PT
96. Impoundment of vehicles
Provides for the impoundment of vehicles used for unauthorised services
97. Presumptions andproof Deals with presumptions and proof in
prosecutions
98. Powers of authorised officers
Provides for powers of authorised officers, as in NLTTA
99. Offences and penalties Provides for offences and penalties
100. Extraordinary measures
The Minister or MEC may declare areas where there is unrest etc., and may close routes or ranks
101. Appeals
All appeals from OL applications will now be to the national TAT
Provincial appeal tribunals will no longer be provided for
102. Transitional provisions Provides for transitional measures
103. Laws repealed or amended
Provides for the repeal of the NLTTA etc.
104. Act binds the State
Provides that the Act will bind the State
105. Short title and commencement
Provides for the short title and date of commencement of the Act