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40.—(1) Section 12 (transfer schemes at end of franchising agreements) is amended as follows.
(2) In subsection (3)—
(a)after paragraph (a) insert—
“(aa)the Welsh Ministers;”;
(b)in paragraph (c) after “the Secretary of State” insert “, the Welsh Ministers”;
(c)after paragraph (d) omit “and” and insert—
“(da)a company which is jointly owned by the Secretary of State and the Welsh Ministers; and”.
(3) In subsection (8), in the definition of “the appropriate national authority”—
(a)before paragraph (a) insert—
“(za)in relation to a franchise agreement the franchised services under which consist of Wales-only services, the Welsh Ministers;”;
(b)omit paragraph (a);
(c)after paragraph (b) insert—
“(c)in relation to any other franchise agreement, the Secretary of State;”.
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