DRAFT NATIONAL LAND TRANSPORT BILL (NLTB) PRESENTATION T0 PORTFOLIO COMMITTEE, 18 JUNE 2008

Contents  Background  Public Transport Strategy & Action Plan 2007  General approach  Chapter 1: General provisions  Chapter 2: Institutional arrangements  Chapter 3: Funding arrangements  Chapter 4: Transport planning  Chapter 5: Contracting for public transport services  Chapter 6: Regulation of road based public transport  Registration  Chapter 7: Law enforcement  Chapter 8: Appeals  Acts to be repealed  Process & Way forward  Recommendations 2 2

Background  NLTTA is transitional for many reasons, e.g. funding, taxi formalisation, transport planning, TA’s,etc.  Policy changes since 1996 White Paper e.g. Public Transport Strategy & Action Plan, 2007; special events, etc  Problems & issues: NLTTA amended twice (Acts31 of 2001 and 26 of 2006)  Other issues raised e.g. tourist transport, concerns of provinces, taxi industry, concurrencies etc.  Now is the time to prepare a final Act

Public Transport Strategy and Action Plan  Main focus of NLTTA is public transport  Two major thrusts of PT Strategy & Action Plan:  First thrust: Modal Upgrading = the many current initiatives to improve our PT system such as taxi recap & Railplan  However - unlikely to halt the ongoing switch to cars from low quality public transport.  Second thrust is about implementing high quality, integrated, mass rapid public transport networks.  By 2014 the aim is to have functioning networks in 12 cities and six rural districts

Public Transport Strategy and Action Plan…  The three building blocks for the Strategy are:  Integrated Rapid Public Transport Network Implementation Plans  Authority control over integrated networks  A maximum stake for existing bus/minibus sector in rapid public transport network operations  Also move from operator control on net contract to authority control through gross contract

General approach  NLTB Draft is based on Strategy Document (SD) presented on 23 August 2007  SD was based on interviews and policy docs since 2000, e.g Public Transport Strategy & Action Plan approved by Cabinet in 2007  Basic policy thrusts in 1996 White Paper remain the same

General approach...  Some salient changes:  Chapter 2 and 3 format revised: applicability more uniform and standard  Framework legislation. More detail in regulations in contrast to the NLTTA  Creation of National Public Transport Regulator (NPTR), Provincial Regulatory Entities (PREs) and designated planning authorities authorised to grant permits and issue service contracts (authorised planning authorities- APA’s)  Provision for funding mechanism

General approach…  Some salient changes cont.:  Provision for 1 st phase negotiated contracts for IRPTNs  Longer validity period for OLs (7 years maximum); and/or tied to contract period  Special measures for major special events (e.g. 2010)  More detailed provision for service types, e.g. lift clubs, courtesy services, tuk-tuks, car-plus-driver, metered taxis, etc.  Accreditation system for tourist services  Registrar functions taken over by PRE’s and APA’s

Ch.1: General provisions  Chapter 1 deals with general provisions. It covers—  Definitions*.  Purpose and scope of the Act  Application of the Act in provinces*  Principles for land transport policy  Functions of the Minister*  National integrated land transport information system  Regulations by Minister  Delegations by the Minister  Functions of MECs*  Regulations by MECs

Ch.1: General provisions…  PURPOSE AND SCOPE OF THE ACT  The Act provides for final land transport legislation to complete the process of transforming and restructuring the land transport system started by the previous Act (NLTTA), and to give effect to national policy as it has developed since the promulgation of the previous Act  APPLICATION OF ACT IN PROVINCES  Act prescribes policies, principles norms, standards etc. to be the same for all provinces, to achieve the objects of section 2  The provisions of the Act are regarded as provisions contemplated in s.146(2) of the Constitution and, except where indicated otherwise, apply to the exclusion of inconsistent national or provincial laws  MECs may promulgate regulations in terms of s.7 that add to or supplement the Act, or which provide more detailed substance  Subject to s.146 of the Constitution, provincial laws must be read with the Act as being supplementary, but where such a law is inconsistent and the two cannot be read together or reconciled.

Ch.1: General provisions…  Definitions requiring comment:  “contracting authority”: provinces, APAs & TAs)  “courtesy service”: can limit number of vehicles and provide for registration  “minibus” and other vehicle types: changed by Act 26 of 2006 to be in line with NR Traffic Act  “municipal public transport”  “negotiated contract”: for IRPTNs in PA areas  NB: Definition of DPA and reference thereto have been removed. Function of authorising certain planning authorities to deal with OL and contracts now rests with the MEC’s (clause 30)

Ch.1: General provisions…  Definitions requiring comment cont.:  “permit”: there are still many unconverted permits (also SLPs & Be Legal applications) – s.56 to 58 provide a transitional strategy  “public transport service”: more general definition  5. Functions of Minister: some new ones added:  e.g. only Min. may negotiate cross border transport arrangement  Set standards for inoperability between fare collection & ticketing system  Provinces suggested removal of the Minister’s opinion to intervene  6. National Information System:  OLAS & RAS and SUMS will be combined and be interoperable with eNaTIS  Will include info. formerly kept by Registrars  NB. State law advisors amended the definition of NLTIS

Ch.2:Institutional arrangements…  Roles Of The Three Spheres Of Government :  National  National policy and strategy  NLTSF  Coordination Provincial Sphere  Coordination of municipalities and TAs  Detailed provincial policy & strategy  Liaise with national government  Assist TAs & municipalities  Execute other functions of the MEC  Municipal Sphere  Responsible for municipal transport functions  Municipal transport planning  Provision for joint provincial/municipal arrangement (provincial entity)

Ch.2:Institutional arrangements…  Part 2: Provides The Framework For Institutions That Will Drive Land Transport  National public transport regulator (NPTR)  Provincial regulatory entities (PREs)  Transport authorities (TAs)  Planning authorities with power to grant OL’s & service contracts (APAs)  Other planning authorities  Joint arrangements with provinces  Intermodal planning committees (include rail component)  Land transport advisory board

Ch.2:Institutional arrangements…  Transport authorities:  Model essentially the same: one or more municipalities may form a TA to do municipal functions  Minister may direct municipality/ies to form TAs, after consulting MEC(s) and municipality/ies  TA is a “municipal entity” ito Systems Act & must comply with MFMA  Governing body – professional board ito Systems Act  Staffing: TA’s own staff or department(s) of participating municipalities  All functions compulsory, except mun. roads  Provinces: MEC’s to approve establishment of TA, functions of TA’s shoul;d be as are in the NLTTA.

Ch.2:Institutional arrangements…  National Public Transport Regulator:  Will deal with interprovincial & tourist services  Oversight role  Will set national standards & procedures  Communications can be electronic, but may have satellite offices  Applications referred to planning authorities for comments

Ch.2:Institutional arrangements…  Provincial Regulatory Entities (PREs):  Grant intra-provincial OL’s and contracts  Monitors transport in the province  PAs to provide PREs with transport planning data to facilitate OL applications  Assist APAs- where an APA delays a OL decision unnecessarily a PRE may intervene

Ch.2:Institutional arrangements…  Planning authorities with the power to grant OLs and service contracts:  Specialised unit in administration of PA (TA or municipality)  Minister may defer functions if functions are not integrated or they lack capacity or ITP not acceptable  Transport between 2 APA areas and/or an APA and other PAs: PRE function

Ch.3:Funding arrangements…  Dedicated funds created in each sphere of government  APAs can levy user charges to—  Raise money for PT infrastructure & services  Promote public transport (e.g levies on entering CBD or on parking spaces)  3 spheres of govt. can still provide funds for public transport

Ch.4:Transport Planning…  Planning provisions in NLTTA were revamped and simplified by Act 26 of 2006  NLTSF, PLTFs and ITPs remain: Planning Requirements published on 30 Nov 2007  Regulations: CITPs for larger cities, DITPs for district municipalities and LITPs for local municipalities.  Freight: PAs must draw up a strategy for freight movement – also to and from ports and airports  OLs can still be cancelled if ITP shows a surplus – operator must be given alternative route(s) if possible

Ch.5: Contracting for PT services  Current model documents only allow for a net contract option for subsidised service contracts  Bill allows for other options – e.g. gross contract option for IRPTNs and other areas  Existing subsidised services in designated cities converted to first-phase negotiated contracts: 7 years.  Provinces: negotiated contracts should include SMME promotion as another purpose.

Ch.5: Contracting for PT services…  Services must be put out to tender after expiry of the first round of contracts  Bus (public transport) subsidy function will be consolidated with other functions  Province will still manage subsidies outside of APA areas  Goal is to convert non-contracted services to commercial service contracts over time

Ch.6: Regulation of road based public transport Part 1: Transitional Provisions:  Definite permits will be valid until their expiry date. If the permit is still valid 7 years from date of commencement of the Act, it will lapse  Indefinite permits will remain valid (subject to s.57 & 58), but lapse after seven years after the date of commencement of the Act  The holder may apply for conversion to an OL during the 7 year period. No compensation is payable if the permit has lapsed or is cancelled  An operator may not receive subsidy or financial assistance from any sphere of government, unless the operator has complied with this Part (i.e. converted)

Ch.6: Regulation PART 1: Rationalisation of existing scheduled services  If a permit authorises scheduled services provided for in a contract with a contracting authority, the relevant authority must cancel the permit and issue an OL for the vehicle specific to the contract  Where the contracting authority is a provincial department, refer the permit to the relevant authority in whose area most of the services take place for conversion.  The contracting authority in either case must cancel any permit that authorises uncontracted services in the same area, i.e. not carry forward such authorisation to the OL  The Minister must make regulations within 2 years of the date of commencement of the Act to integrate permits for uncontracted scheduled services into the larger PT system

Ch.6: Regulation… PART 1:Rationalisation of minibus taxi- type services  The holder of a permit/OL for mini-bus taxi type services may for purposes of TRP convert his/her permit/OL in a manner to be prescribed by the Minister in consultation with MECs

Ch.6: Regulation…  Part Two: Road Based Public Transport  Road based public transport services can only be operated by holders of an OL issued for the specific vehicle  A vehicle may be licenced to operate more than one type of service  Applications i.c.w OLs for services provided for in an ITP, will be determined on the basis of that plan  Part 2 also provides in s.60 that an OL can only be issued on application

Ch.6: Regulation…  Validity Period Of Operating Licences  Maximum validity period of 7 years  An exception is where an OL is issued as a result of an awarded negotiated contract in terms of s.50 for more than 7 years: the OLs must be in line with the contract period  For non-contracted services, the following must be considered subject to the directives of the ITP if any:  Trends in utilisation (current and envisaged)  Efficiency of the proposed services in meeting users needs  Likelihood of service not to be required in future in terms of the ITP or the likelihood that it may become the subject of a commercial service contract or subsidised service contract

Ch.6: Regulation…  Exemptions  The following services are exempted from applying for operating licences:  A courtesy service – but Minister may make regulations, e.g. to register them or limit the number of vehicles  A lift club – but Min. may make regulations, e.g. that written confirmation from employer must be in vehicle or registration  Farmers or municipalities conveying own workers  Ambulances  Own employees conveyed in the course of their duties  Conveyance of learners, teachers etc. for purposes of sport or recreation by means of a vehicle of which the school or institution of higher learning is the owner or has contracted it to an operator

Ch.6: Regulation…  Application For A New Operating Licence  NPTR can only receive applications for interprovincial and tourist services  PRE can receive applications for the following:  An intraprovincial services outside of APAs and between APAs  APA’s can receive the following applications:  For services/ operations within their boundries

Ch.6: Regulation… Ols for PT Services provided for in Transport Plans  The NPTR or PRE must inform all planning authorities in whose areas the services will be operated with a request to provide data based on their ITP  Exceptions – contracted services (automatic OL) and “off-plan services”, e.g tourist, charter  The planning authority must in the prescribed format  Indicate if there is a need for the service  Submit the response to the NPTR or PRE  Or direct the NPT or PRE to refuse the application  NPTR or PRE may condone late submission of a response that it has requested from other affected planning authorities  NPTR or PRE can dispose of the application without any input from other planning authorities where they failed to respond

Ch.6: Regulation… Operating Licences For Contracted Services  Where a negotiated contract, subsidised service contract or commercial service contract has been concluded, the relevant contracting authority, must issue an OL for each vehicle specific to the contract Disposing of Applications for OL’s for Non-Contracted Services  An application made to the NPTR for the granting, renewal, amendment or transfer of an operating licence in respect of a non-contracted service may be granted or refused on the following grounds:  In line or not in line with the transport plans  Suitability of vehicle  Availability of facilities (ranks, terminals etc.)  Existence of by-law or regulation that prohibits or restricts  Previous convictions for relevant offences  The ability of the applicant

Ch.6: Regulation…  Renewal, Amendment Or Transfer Of An Ol Or Permit  The holder of an OL may apply for renewal, amendment or transfer of the OL to whichever entity may grant a new application  OLs and temporary OLs should remain valid until an application for renewal is granted but not beyond the expiry period of the original OL?  Publication Of Decisions  The decision of the NPTR, a PRE or a APA to grant an OL must be published by putting it up on a notice board (no more Govt. Gazette)  If there are comments or objections, the decision may be reconsidered  The Minister may prescribe that such decisions must be published in the Gazette or press in certain cases

Ch.6: Regulation…  Special Events  S.69 deals with special events: Temporary OL may be issued to an existing operator for the duration of the event  The Minister may make regulations providing that temporary OLs may be granted or issued by municipalities or other bodies, institutions or officials (problem that entities are closed over weekends and holidays); subject to other laws of the Repaublic

Ch.6: Regulation…  MAJOR SPECIAL EVENTS (E.G. 2010)  The Minister may make regulations to facilitate speedy and smooth conveyance of people for these events  S.70 empowers the Minister to make regulations to provide or facilitate land transport arrangements for major special events  The Minister may exempt foreign registered vehicles brought into the Republic temporarily from provisions of Acts, but must register and have adequate insurance  Minister may appoint one or more institutions to receive applications for special OLs

Ch.6: Regulation…  CONDITIONS FOR ISSUING AN OPERATING LICENCE  An Operating Licence can be issued if the applicant:  has applied in accordance with the Act  has furnished a valid tax clearance certificate  has signed a statement committing himself/herself to comply with labour laws in respect of drivers and other staff  has submitted a current roadworthy certificate  In the case of renewal, amendment or transfer, has returned the previous OL

Ch.6: Regulation…  PERSONS CAPABLE OF HOLDING OPERATING LICENCES  The holder of an OL must is the owner or operator of the vehicle in terms of the National Road Traffic Act  OTHER SERVICES DEALT WITH:  Long distance services  Metered taxi services  Charter services (including “car-plus-driver”)  Staff services  Lift clubs  Tuk-tuks  Adapted light delivery vehicles  Transporting of scholars, students, teachers and lectures

Ch.6: Regulation…  AMENDMENT OF OPERATING LICENCE TO REPLACE SPECIFIED VEHICLE  The holder of an OL or permit is allowed to replace the specified vehicle with another vehicle  He/she must apply to the entity that issued the OL or if the OL or permit was issued before the date of commencement of the Act, to the entity to which applications for new OLs must be made  The authorised official must allow the replacement and issue an amended licence and in the case of a permit, a new OL  Where a subcontractor operates any part of the service on behalf of the holder in terms of a contract, the subcontractor may rely on this section

Ch.6: Regulation…  TEMPORARY REPLACEMENT OF VEHICLE  The entity that issued an OL may on application by the holder grant written authorisation where a vehicle specified in the OL or permit has become temporarily defective  INTERACTION BETWEEN PUBLIC TRANSPORT AND CROSS-BORDER ROAD TRANSPORT  This separates cross-border road passenger transport from domestic transport  I.t.o the Cross-Border Act, where passengers intend to cross a border it is cross-border transport  This section should be read in conjunction with the Cross-Border Road Transport Act  Presumption created in prosecutions: where passengers picked up or set down within 2 km of a border, it will be presumed to be cross-border transport  N.B.: Does not prevent domestic picking up or setting down within 2 km of a border (e.g. Ficksburg)

Ch.6: Regulation…  CESSION, ALIENATION OR HIRING OUT OF OPERATING LICENCE  This is prohibited in terms of s.86(1) with the exception of a transfer in accordance with the Act  CANCELLATION OF OPERATING LICENCES AND PERMITS NOT IN USE  S.87 provides that OLs or permits not in use for 180 days may be cancelled. Operator may make representations  WITHDRAWAL, SUSPENSION OR AMENDMENT  S.88 governs the way in which an OL/permit can be withdrawn or amended, e.g. failing to comply with conditions

Ch.6: Regulation…  Part 3 deals with regulation of tourist services:  The main features of this section are:  No one may operate tourist services unless accredited by the NPTR  Only those who apply in the prescribed manner can be accredited to do so  Recommendations from tourist authority is required (if there is one)  Accredited operators to be reviewed every five years  An OL is still required, but will be easy to get  Cancellation of accreditation:  The NPTR may cancel the accreditation of an operator if he/she no longer complies with the requirements

Registration…  Registration of associations and operators was a transitional measure for minibus taxis  Registration of other modes could be provided in provincial laws: process not started yet  Registrars’ functions will now be covered by NPTR, PREs and APAs  RAS and OLAS systems will be combined

Ch.7: Law enforcement  Most provisions of the NLTTA are retained:  Provides for law enforcement agreements  Inspectors can now be appointed by provinces and DPAs  Impoundment of vehicles  Presumptions  Powers of authorised officers  Allows for MEC (or failing the MEC, the Minister) to close routes and ranks in situations of violence & unrest

Ch.8: Appeals…  All appeals will now be heard at the national TAT  Provincial appeal bodies no longer provided for  The TAT Act 39 of 1998 is amended to provide for the changes

Accepted Stakeholder inputs  Comments received from Provinces, OLBs, Treasury, SABOA, taxi industry, State Law Advisors, etc. ClauseChanges made to initial draft Bill 1Definition of Designation of Planning Authorities has been removed 5(6)Reformulated to remove the “opinion” of the Minister 6(7)Reformulated to remove the names of IT systems*. The emphasis in on integration and interoperability 9Functions of the MEC’s have been increased to include coordination, approval of TA’s and PA’s 11Reformulated to refer intervention subject to section 100 of the constitution

Accepted Stakeholder inputs… ClauseChanges made to initial draft Bill 12(2)Disqualification of certain categories of people (MP’s, MPL’s & councillors) to serve on regulatory bodies has been removed. 14(3)This function (establishment and operations of IMPC) has been re- assigned to the MEC’s 16(5)Approval of TA’s re-assigned to MEC’s after consultation with the Minister 25(2)NPTR: listing of skills has been removed 25(3) & (4)NPTR: exclusion of certain people to serve has been removed. 26Reformulate to separate admin and quasi- judicial functions of regulatory institutions 30Reformulated to remove automatic designation of DPA’s 50Reformulated to negotiate contracts to promote SMME 58Reformulated unresticted permit/OL conversions to promote TRP

Acts to be repealed  NLTTA, 22 of 2000  NLTTAA, 31 of 2001  NLTTAA, 26 of 2006  National Land Transport Transition Act, 45 of 2006 (Roads Board provisions?)  The Black Transport Services Amendment Act, 11 of 1972  The Black Transport Services Amendment Act, 47 of 1974  The Black Transport Services Amendment Act, 76 of 1982  The Transport Services of the Coloured Persons and Indians Amendment Act, 77 of 1982 * The Road Transportation Act, 74 of 1977 and the Urban Transport Act, 78 of 1977; as amended cannot be repealed under/by this Bill as they have been assigned to Provinces and it’s only the Provinces that can introduce legislation to repeal them.

Process  Internal DOT workshop on the Bill- 28 Feb  Stakeholders’ workshop (provinces, municipalities, SANTACO, NTA, SABOA, SARCC, OLBs, Registrars, Transnet, etc.) - 26 March 2008  Bill published in Gazette on 1 April  Comments deadline 30 April 2008  One-on-one meetings (COTO, Provinces, OLB’s, SANTACO, SABOA, National Treasury, etc.) throughout April and May 2008  Cabinet approved the Draft Bill marked 8 May 2008  20 May 2008 was draft agreed to after more consultations; especially with Provinces.  6 June 2008 draft amended 20 May 2008 one after COTO (6/6/2008) discussions This draft is the one to be proposed to Parliament during hearings  Errors and typos have been spotted in the State Law advisors’ certified draft (undated)- will have to be highlited in Parliament.