21. (1) Section 63 of the Principal Act is amended by substituting the following for subsection (4):

“(4) Subject to law, the functions of a local authority shall be performed for or on behalf of the local authority and in its name by the elected council (including the municipal district members in respect of each municipal district pursuant to section 131A) or the chief executive, as may be appropriate, in accordance with Part 14.”.

(2) Section 131 of the Principal Act is amended—

(a) in subsection (1)(a) by substituting “Subject to section 131A, the elected council of a local authority or the members of a joint body shall” for “The elected council of a local authority or the members of a joint body shall”,

(b) in subsection (2) by substituting the following for paragraph (a):

“(a) designated as a reserved function by any provision of the Local Government Acts 1925 to 2014 (including a designation by order under subsection (3)), a provision of any other Act that is to be construed together with those Acts, or as specified in Schedule 14 or, subject to section 131B(1), Schedule 14A,”,

and

(c) in subsection (3) by inserting the following after paragraph (b):

“(c) An order under paragraph (a) may provide that a specified function designated by such order to be a reserved function may be performed, or shall be performed, as provided in the order, in respect of each municipal district in the county or the city and county, as the case may be, by the municipal district members concerned, subject to the provisions of subsections (4) to (6) of section 131A.”.

(3) The Principal Act is amended by inserting the following section after section 131:

“Performance of reserved functions in respect of municipal district members

131A. (1) Subject to subsection (4), in respect of the elected council of a local authority that is the council of a county (other than the council of a county to which section 22A(4) relates) or of a city and county, a reserved function which is specified in—

(a) paragraphs 1 and 3 (other than in respect of a joint body) of Schedule 14 and Part 1 of Schedule 14A shall be performed in respect of each municipal district within the administrative area of the local authority by the municipal district members concerned, and

(b) paragraphs 5, 6 or 7 of Schedule 14 and Part 2 of Schedule 14A, may be performed in respect of a municipal district within the administrative area of the local authority by—

(i) the municipal district members, or

(ii) the local authority.

(2)(a) In addition to the functions referred to in subsection (1), a local authority that is the council of a county or a city and county may, subject to paragraph (e), by resolution delegate with or without restrictions to the municipal district members for any municipal district in the area of the local authority any of its functions that may be performed by resolution and a function so delegated shall, accordingly, be performed in respect of each such municipal district in the administrative area of the local authority (or any part of such district) by the municipal district members concerned.

(b) A local authority may, following consultation with the municipal district members concerned, by resolution, revoke the delegation by it under this subsection of a function, but the revocation is without prejudice to anything previously done by virtue of the delegated function.

(c) A function shall not be delegated by a local authority in such a manner that, at the same time, it is exercisable—

(i) by a committee established under section 51, and

(ii) by municipal district members under this subsection.

(d) A resolution of a local authority delegating or revoking the delegation of a function to municipal district members shall not be treated as having been passed unless at least a half of the total number of members of the local authority concerned vote in favour of the resolution.

(e) A local authority shall not delegate any of its functions to which subparagraphs (i) to (iv) of section 51(2) (a) relates to the municipal district members.

(3) The functions, by virtue of subsection (2) (a), of municipal district members shall not be delegated by the municipal district members.

(4) Municipal district members may by resolution decide, subject to the approval by resolution of the local authority and the approval of the Minister, that a particular function to which subsection (1) relates should be performed only by the local authority.

(5)(a) The Minister may make regulations specifying conditions, restrictions, procedures or other provisions to apply—

(i) generally in relation to the performance of functions to which subsections (1) and (2) relate,

(ii) specifically in relation to performance of one or more than one function to which any of those sections relate,

(iii) in relation to the delegation of functions or the revocation of a delegation of functions under subsection (2), or

(iv) in relation to a decision under subsection (4).

(b) Without prejudice to the generality of paragraph (a), regulations under this subsection may provide for any of the following:

(i) requirements for the purpose of ensuring that municipal district members performing functions do so in a manner consistent with the policies, strategies, programmes or plans of the local authority concerned;

(ii) requirements for the purpose of ensuring the avoidance of unnecessary duplication in the performance of functions between the municipal district members for each of the municipal districts in a local authority area or between the municipal district members and the local authority for that area;

(iii) that specified functions may not be delegated under subsection (2), or may only be delegated with the approval of the Minister;

(iv) that, in circumstances provided for in the regulations, a local authority may perform a specified delegated function in place of the municipal district members in a particular case or occasion;

(v) arrangements for the resolution of any difference or disagreement between a local authority and the municipal district members in relation to the performance of a function which is specified in paragraphs 5, 6 or 7 of Schedule 14 or Part 2 of Schedule 14A;

(vi) that a particular function set out in paragraphs 5, 6 or 7 of Schedule 14 or Part 1 or 2 of Schedule 14A shall only be performable in every instance by the local authority concerned;

(vii) provisions to determine whether a function specified in paragraph 5, 6 or 7 of Schedule 14 and Part 2 of Schedule 14A should, in particular circumstances be performed by municipal district members or by the local authority.

(6) The Minister may issue general policy guidelines to local authorities for the purposes of any provision of this section (including any regulations made under it) and each local authority shall comply with any such guidelines.

Supplemental provisions to section 131 and 131A

131B. (1) For the purposes of sections 131 and 131A, and for convenience of reference only, there is set out in column (3) of Parts 1, 2 and 3 of Schedule 14A the provisions of enactments under which reserved functions are conferred.

(2) The validity of any function conferred on a local authority by law is not affected by the fact that it is not specified in Schedule 14 or 14A.”.

(4) The Principal Act is amended by inserting, after Schedule 14, the Schedule set out in Schedule 3.