(b)in subsection (1)—

(i)for “Secretary of State” substitute “appropriate national authority”;

(ii)for “he” substitute “it”;

(c)in subsection (2)—

(i)for “Secretary of State” substitute “appropriate national authority”;

(ii)for the words from “make an order” to the end substitute “make a transfer order in respect of the body in default.”;

(d)after subsection (2) insert—

“(3)The Secretary of State must consult the regulator before making an order under subsection (1) or (2).

(4)The Secretary of State may also make a transfer order in respect of a local authority if—

(a)under section 58Z7(2) the regulator recommends that the Secretary of State make a transfer order in respect of the authority, and

(b)the Secretary of State is satisfied that the way in which the authority exercises its functions under this Act—

(i)falls short of the standards expected, and

(ii)puts, or may put, the safety of persons in or about buildings at risk,

and is likely to continue to do so.

(5)The Welsh Ministers may also make a transfer order in respect of a local authority if the Welsh Ministers are satisfied that the way in which the authority exercises its functions under this Act—

(a)falls short of the standards expected, and

(b)puts, or may put, the safety of persons in or about buildings at risk,

and is likely to continue to do so.

(6)A “transfer order”, in respect of a local authority or joint board, is an order transferring to the appropriate national authority, or to another local authority, such functions of the authority or board as may be specified in the order.”

(3)In section 117 (expenses)—

(a)in the heading for “Secretary of State” substitute “appropriate national authority”;

(b)before subsection (1) insert—

“(A1)This section applies where the appropriate national authority has transferred functions to itself by a transfer order under section 116.

(A2)Any expenses incurred by the Secretary of State in discharging the transferred functions are to be paid in the first instance out of money provided by Parliament.”;

(c)in subsection (1)—

(i)for the words before paragraph (a) substitute “The amount of any expenses certified by the appropriate national authority as having been incurred by the authority in discharging the transferred functions”;

(ii)in paragraph (a) for “him” substitute “the authority”;

(iii)in paragraph (b) for the words from “him” to the end substitute “the authority from the body as a debt due to the authority”;

(d)in subsection (2) for “Secretary of State” substitute “appropriate national authority”.

(4)In section 118 (variation or revocation of transfer order)—

(a)in subsection (1)—

(i)for “Secretary of State” substitute “appropriate national authority”;

(ii)for “an order under section 116(2)” substitute “a transfer order under section 116”;

(iii)for “he” substitute “it”;

(b)after subsection (1) insert—

“(1A)The Secretary of State must consult the regulator before making an order under subsection (1).”;

(c)in subsection (2)—

(i)for “Secretary of State” substitute “appropriate national authority”;

(ii)for “him”, in the first place it occurs, substitute “it”;

(iii)for the words from “by him” to the end substitute “, by the person to whom the revoked order transferred functions, in discharging those functions.”