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