Part 3: Authorisations for obtaining communications data Schedule 5: Transfer and agency arrangements with public authorities: further provisions
This Schedule outlines the provisions that apply should the Home Secretary transfer ownership of the request filter to a public authority. Paragraph 1requires the Secretary of State to approve the measures to be adopted by a designated public authority for complying with the requirements in section 67. A designated public authority must send the reports required under section 69 , about the functioning of the filtering arrangements over the previous calendar year, and immediate reporting of any significant processing errors which have occurred, to the Secretary of State as well as to the Investigatory Powers Commissioner. Paragraph 2 requires the public authority to also report to the Secretary of State at least once per calendar year on their discharge of their functions, and any other matters the Secretary of State may require.
	Paragraph 3 sets out that the Secretary of State, in connection with regulations made under section 83(1), may make a scheme for the transfer of property, rights or liabilities (including rights and liabilities relating to contracts of employment). Such transfers may be from the Secretary of State (in practice, the Home Office) to a designated public authority or from one designated public authority to the Secretary of State or to another designated public authority.
	The consequential, supplementary, incidental and transitional provision that may be made by a transfer scheme include making provision the same as or similar to the TUPE regulations (the Transfer of Undertakings (Protections of Employment) Regulations 2006 (S.I. 2006/246)). A scheme may make provision for the payment of compensation, for example to a designated public authority in circumstances where functions conferred on that body are brought back within the Home Office. A transfer scheme may be included in regulations made under section 83(1) but if not, must be laid before Parliament after being made.
	Paragraph 4 provides a power for the Treasury to make regulations providing for the tax consequences of a transfer scheme made under paragraph 3. For the purposes of this power the relevant taxes are income tax, corporation tax, capital gains tax, stamp duty, stamp duty reserve tax and stamp duty land tax.