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(1)A local authority may use any sums it receives in respect of fixed penalties payable in pursuance of notices given under section 73 (its “penalty receipts”) only for the purposes of functions of its that are qualifying functions.
(2)The following are qualifying functions for the purposes of this section—
(a)functions under this Chapter;
(b)functions under the Noise Act 1996 (c. 37);
(c)functions under sections 79 to 82 of the Environmental Protection Act 1990 (c. 43) (statutory nuisances) in connection with statutory nuisances falling with section 79(1)(g) or (ga) (noise) of that Act;
(d)functions of a description specified in regulations made by the appropriate person.
(3)Regulations under subsection (2)(d) may (in particular) have the effect that a local authority may use its penalty receipts for the purposes of any of its functions.
(4)A local authority must supply the appropriate person with such information relating to the use of its penalty receipts as the appropriate person may require.
(5)The appropriate person may by regulations—
(a)make provision for what a local authority is to do with its penalty receipts—
(i)pending their being used for the purposes of qualifying functions of the authority;
(ii)if they are not so used before such time after their receipt as may be specified by the regulations;
(b)make provision for accounting arrangements in respect of a local authority’s penalty receipts.
(6)The provision that may be made under subsection (5)(a)(ii) includes (in particular) provision for the payment of sums to a person (including the appropriate person) other than the local authority.
(7)Before making regulations under this section the appropriate person must consult—
(a)the local authorities to which the regulations are to apply, and
(b)such other persons as the appropriate person thinks fit.
(8)The powers to make regulations conferred by this section are, for the purposes of subsection (1) of section 100 of the Local Government Act 2003 (c. 26), to be regarded as included among the powers mentioned in subsection (2) of that section.
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