39BStep-in arrangements for existing bus service contracts

#### 39B Step-in arrangements for existing bus service contracts 39B Step-in arrangements for existing bus service contracts > > (1) The Director-General may, by notice published in the Gazette, implement the step-in arrangements specified in the notice if of the opinion that it is necessary to do so to maintain regular bus services provided under an existing bus service contract. > > > (2) The Director-General may take action under subclause (1)— > > > > > (a) on or before the expiry of an existing bus service contract, or > > > > > (b) on or before termination of an existing bus service contract by the Director-General (other than under this Part), or > > > > > (c) not later than 60 days after notice of termination, or termination without notice, of an existing bus service contract by an existing service provider, or > > > > > (d) in such other circumstances as may be prescribed by the regulations. > > > (3) The Director-General may, with the approval of the Minister under clause 39A, also take action under subclause (1) if an existing service provider fails to comply with a service breach notice, whether or not the existing bus service contract concerned has been terminated or has expired. > > > (4) The step-in arrangements take effect on the day the notice is published in the Gazette, or on such later day as may be specified in the notice. > > > (5) Step-in arrangements implemented under subclause (2) may not take effect before the expiry or termination of the contract concerned. > > > (6) The step-in arrangements may do any one or more of the following— > > > > > (a) provide for the appointment of the Director-General, or a person nominated by the Director-General, (the step-in party) to exercise functions of the existing service provider that are or were conferred under the existing bus service contract, > > > > > (b) authorise the step-in party to take possession of, and use, buses or premises or other assets used or required by the existing service provider to provide the regular bus services concerned, > > > > > (c) require the existing service provider or any other person to take such steps as are necessary in the opinion of the Director-General to make buses, premises or other assets referred to in paragraph (b) available to the step-in party, > > > > > (d) authorise or require the step-in party or any other person to carry out functions under the contract as if the contract were in force, > > > > > (e) specify the terms and conditions on which the step-in arrangements are to be implemented, > > > > > (f) without limiting paragraph (e), specify terms and conditions relating to the following matters— > > > > > > > (i) payments to the existing service provider of a kind payable under the contract after deduction of the costs of the step-in party and other specified costs from amounts payable to the existing service provider, > > > > > > > (ii) the use of staff employed by the existing service provider in connection with the provision of the regular bus services and arrangements for payment for the use of services of those staff, > > > > > > > (iii) payments to third parties (such as suppliers, lessors and providers of assets and services) in connection with the provision of the regular bus services under the step-in arrangements, > > > > > (g) specify the period (being a period not exceeding 12 months) for which the step-in arrangements are in force, > > > > > (h) specify any other circumstances in which the step-in arrangements cease to be in force, > > > > > (i) contain any other necessary consequential or ancillary provisions. > > > (7) In determining the step-in arrangements, and any terms and conditions on which they are to be implemented, the Director-General is to consider the terms and conditions of the existing bus service contract concerned and any relevant commercial arrangements or security transactions of the existing service provider or other persons, being arrangements or transactions entered into at arms-length, relating to assets affected by the proposed step-in arrangements or the provision of the regular bus services. > > > (8) A step-in party may provide bus services in accordance with step-in arrangements in force under this clause despite any other provision of this Act or the regulations or any other law. > > > (9) A notice under this clause may be revoked or varied by the Director-General by notice published in the Gazette. > > > (10) Nothing in this clause prevents the Director-General from making arrangements of a kind referred to in clause 35 or taking action under any other law to maintain a regular bus service that may be the subject of arrangements under this clause. > > Note. > > This clause is a transitional clause and does not apply to contracts entered into under Division 3 of Part 3 (as substituted by the [Passenger Transport Amendment (Bus Reform) Act 2004](/view/html/repealed/current/act-2004-054)) and so will only affect commercial bus service contracts in force before that Division was inserted and certain interim contracts entered into pending new contracts coming into force. When these existing and interim contracts cease to be in force, this clause will cease to have operation.