National Land Transport Bill

1. National Land Transport Bill Portfolio Committee on Transport Clause-by Clause Explanation 29 July 2008

2. 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

3. 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

4. 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

5. 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. 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. 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

8. 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

9. 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

10. 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

11. 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.

12. 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

13. 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

14. 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

15. 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

16. 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

17. 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

18. 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

19. 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

20. 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

21. 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

22. 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

23. 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

24. 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

25. 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

26. 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

27. 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

28. 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

29. 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

30. 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

31. 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

32. 47. Publication of transport plans • Provides for the publication of transport plans and their effect on land use, as with the NLTTA

33. 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

34. 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

35. 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

36. 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

37. 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

38. 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

39. 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

40. 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

41. 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

42. 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

43. 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

44. 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

45. 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

46. 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

47. 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

48. 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

49. 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

50. 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