Chapter 2: Other Provision Local authority governance Section 72: Transfer of functions: changes in governance arrangements Effect
This section introduces new sections 9NC (Transfer of functions: changes in governance arrangements not subject to a referendum) and 9ND (Transfer of functions: changes in governance subject to a referendum) to the 2000 Act. These apply where the Secretary of State has made regulations under section 16 of the 2016 Act to confer onto the local authority some functions of a public authority; for example following agreement of a devolution deal between the government and local authority.  It also amends sections 9KC, 9MB and 9MF accordingly.
	New section 9NC, inserted by subsection (5) provides that where Secretary of State has made regulations under section 16 of the 2016 Act to confer public authority functions on a local authority, and where the local authority’s governance model was adopted following a resolution, that local authority has to comply with certain requirement if it subsequently wishes to make one of the changes to its governance arrangements specified in section 9NC(8).
	Section 9NC(3) requires the local authority to notify the Secretary of State of the local authority’s proposed changes to governance arrangements. Subsection (4) requires the Secretary of State, on receiving a notification, to consider whether, as a result of the proposed change, the section 16 regulations should be amended or revoked. Subsection (6) provides that if the Secretary of State considers that the section 16 regulations should be amended or revoked, the local authority may not proceed with a resolution on changing governance arrangements until the regulations have been so amended or revoked.
	Subsection (5) also inserts new section 9ND to the 2000 Act. This provides that where Secretary of State has made Section 16 regulations to confer public authority functions on a local authority, and where the local authority’s governance model was adopted following a referendum, that local authority has to comply with certain requirements if it subsequently wishes make one of the changes to its governance arrangements specified in section 9NC(8). Section 9ND(4) requires the local authority to notify the Secretary of State its proposed changes to governance arrangements. Subsection (5) provides that if the Secretary of State receives a notification, they are required to consider whether, as a result of the proposed change, the section 16 regulations should be amended or revoked. Under subsection (7) if the Secretary of State considers that the section 16 regulations should be amended or revoked, the local authority may proceed with a referendum but if the referendum approved the proposal, the local authority may not proceed with a resolution on changing governance arrangements until the regulations have been so amended or revoked.
	Subsections (2) – (4) make corresponding changes to sections 9KC, 9MB and 9MF of the 2000 Act.
	Subsection (6) amends section 17 of the 2016 Act to amend the factors to which the Secretary of State has regard when considering whether to revoke or amend section 16 regulations following a notification under the new sections 9NC and 9ND of the 2000 Act of proposed changes to a local authority’s governance arrangements.