Cap. 230 - Public Bus Services Ordinance

To provide for the granting of franchises to operate public bus services on specified routes, the regulation of the operation and maintenance of such services and for matters ancillary thereto and connected therewith. [1 September 1975](Format changes—E.R. 1 of 2021) Part I Preliminary 1. Short title This Ordinance may be cited as the Public Bus Services Ordinance.(Amended 75 of 1982 s. 114) 2. Interpretation In this Ordinance, unless the context otherwise requires—bus (巴士) has the same meaning as in the Road Traffic Ordinance (Cap. 374); (Replaced 75 of 1982 s. 114)Commissioner (署長) means the Commissioner for Transport;franchise (專營權) means the right to operate a public bus service granted under section 5;franchise period (專營期) means the period for which a franchise is granted under section 6(1) and any period for which the franchise is extended under section 6(2) or (3);grantee (專營公司) means a company to which a franchise has been granted;North-west Transit Service Area (西北鐵路服務範圍) means the North-west Transit Service Area within the meaning of the Kowloon-Canton Railway Corporation Ordinance (Cap. 372); (Added 56 of 1986 s. 22)passenger (乘客) in relation to a bus means any person carried in or on it other than the driver or conductor or any other employee of the grantee who is in uniform and on duty; (Added 88 of 1988 s. 2)profit control scheme (利潤管制計劃) means the profit control scheme provided for by Part V;programme (計劃) means a programme in force under section 12A; (Added 44 of 1984 s. 2)proper and efficient service (適當而有效率的服務) means a proper and efficient public bus service within the meaning of section 12; (Added 44 of 1984 s. 2)public bus service (公共巴士服務) means a bus service for the carriage of passengers for reward at separate fares;Schedule of Routes order (路綫表令) means an order under section 5(1);specified route (指明路綫) means a route specified in the Schedule of Routes order applying in the case of a grantee and any new route on which a public bus service is operated by that grantee in accordance with a requirement under section 14 or 15, or an approval under section 16A. (Amended 44 of 1984 s. 2) 2A. Construction of references to the Ordinance in a franchise, programme or agreement Unless the context otherwise requires, any reference to this Ordinance (whether as the Public Omnibus Services Ordinance 1975 (59 of 1975) or otherwise), or to any provision thereof, franchise, programme, agreement or other document under or in pursuance of this Ordinance shall be deemed to be a reference to this Ordinance or such provision thereof as amended from time to time.(Added 44 of 1984 s. 3) 3. Power of Chief Executive to give directions to a public officer (1) The Chief Executive may give to a public officer such directions as he thinks fit with respect to the exercise or performance of his powers, functions and duties under this Ordinance, either generally or in any particular case.(2) A public officer shall, in the exercise or performance of his powers, functions and duties under this Ordinance, comply with any direction given by the Chief Executive under subsection (1).(Amended 44 of 1984 s. 4; 62 of 1999 s. 3) Part II Public Bus Service Franchises 4. Prohibition of operation of public bus service except under franchise (1) A public bus service shall not be operated except under a franchise granted under this Ordinance or another enactment.(2) Any person who—(a) operates, or manages or assists in the management of, a public bus service; or(b) uses, or causes or permits to be used, a bus in the operation of a public bus service,which is operated in contravention of subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine at level 6. (Amended E.R. 1 of 2021)(3) This section does not apply to a public bus service which is—(a) a tour service, that is to say, a service—(i) for the carriage of passengers at separate fares;(ii) entitling the passengers to travel together on a journey, with or without breaks, from the place or places at which they are taken up (being the same place or 2 or more places in the same vicinity) to one or more other places and back to the place or places at which they were taken up;(iii) in which all the passengers are carried for the greater part of the journey; and(iv) in which no passenger is a person who frequently, or as a matter of routine, travels, at or about the time of day at which the journey is made, to or to the vicinity of a place from or through which the journey is made; (Replaced 72 of 1976 s. 2)(b) an international passenger service, that is to say, a service for the carriage of passengers in either direction between any one or more of the following places, that is to say, the Hong Kong International Airport, Hung Hom Railway Station, Macao Ferry Pier or any other pier, any Hong Kong border crossing, any hotel, airline office or ferry or similar terminal, where the passengers on the service consist only of— (Amended 31 of 2025 s. 81)(i) persons arriving in or intending to leave Hong Kong by aircraft, railway, ferry vessel, ship or motor vehicle;(ii) persons meeting or accompanying the persons referred to in subparagraph (i); or(iii) persons employed by an airline or the agent of an airline, or by any travel, shipping or railway agent; (Replaced 44 of 1984 s. 5)(c) an hotel service, that is to say, a service for the carriage of passengers residing at an hotel where every passenger is taken up or set down at the hotel;(d) a student service, that is to say, a service for the carriage to or from a school, university or other educational establishment of students thereof, persons accompanying or in charge of such students or who teach at the school, university or other educational establishment;(e) an employees’ service, that is to say, a service provided by an employer for the carriage to or from their place of work of passengers who are persons employed by him; (Amended 44 of 1984 s. 5)(f) a residents’ service, that is to say, a service approved by the Commissioner, after considering the interests of any grantee franchised to operate over any part of the route to be covered by the service and any other relevant matter, and provided by or on behalf of the management, residents or owners of any residential development for the carriage of passengers to or from the residential development; (Added 44 of 1984 s. 5)(g) a multiple transport service, that is to say, a service (other than a service provided mainly for the carriage of passengers to or from a residential development) in which no passenger is a person who frequently or as a matter of routine travels, at or about the time of day at which the journey is to be made, to or to the vicinity of a place from or through which the journey is made, approved by the Commissioner, after considering the interests of any grantee franchised to operate over any part of the route to be covered by the service and any other relevant matter, for the carriage of passengers by a public bus service in combination with carriage by another mode or modes of public transport service from one departure point to one destination and where a combined fare is paid for the whole journey, single or return, at a place other than at the boarding point of the bus or on the bus. (Added 44 of 1984 s. 5. Amended 66 of 1984 s. 13)(4) For the purposes of this Ordinance, a payment made by a person entitling him to be carried as a passenger in a bus shall be treated as a separate fare notwithstanding that it is made in consideration of other matters in addition to the journey and irrespective of the person by or to whom it is made. 5. Grant of franchises (1) Subject to this Ordinance, the Chief Executive in Council may grant to any company registered under the Companies Ordinance (Cap. 622), or under the Companies Ordinance (Cap. 32) as in force from time to time before the commencement date# of section 2 of Schedule 9 to the Companies Ordinance (Cap. 622), the right to operate a public bus service on such routes as he specifies by order. (Amended 28 of 2012 ss. 912 & 920)(2) A franchise may confer on the grantee the exclusive right to operate a service on any specified route.(3) A franchise—(a) may be granted following a public tender or in such other manner as the Chief Executive in Council thinks fit;(b) shall, except where the Legislative Council by resolution excludes the application of all or any of the provisions of the profit control scheme, be subject to the profit control scheme;(c) shall be subject to such conditions as the Chief Executive in Council specifies; and(d) shall prescribe whether it may be extended under section 6(2) or (3).(4) Without prejudice to any other provision of this Ordinance, a franchise may, with the consent of the grantee, be amended by the Chief Executive in Council.(5) A franchise may, with or without the consent of the grantee, be amended by the Chief Executive in Council by order in the Gazette so as to restrict or prohibit the taking up or setting down of passengers within the North-west Transit Service Area or, where the boundaries of that Area are varied under section 2(3) of the Kowloon-Canton Railway Corporation Ordinance (Cap. 372), to alter such a restriction or prohibition to take account of such variation. (Added 56 of 1986 s. 22)(6) Where an amendment to a franchise is made under subsection (5) without the consent of the grantee, the grantee shall be entitled to compensation for the loss of any permitted return (as defined in Part V) on any investment which the grantee may reasonably have been expected to make had the franchise not been so amended, subject to the deduction from that permitted return of any sum required to be deducted under sections 28 and 29. (Added 56 of 1986 s. 22)(7) In determining any compensation payable under subsection (6) account shall be had of any opportunity which the grantee may have had to mitigate his loss and to the effect the construction and operation of the North-west Railway under the Kowloon-Canton Railway Corporation Ordinance (Cap. 372) would have had on the operations of the grantee (being an effect for which no compensation is payable) had his franchise not been amended. (Added 56 of 1986 s. 22)(8) Compensation payable under subsection (6) shall be in such amount as may be agreed between the Commissioner and the grantee or, in the event of a failure to agree, as may be determined by arbitration under the Arbitration Ordinance (Cap. 609) and, for the purposes of that Ordinance, the reference in this subsection to arbitration shall be deemed to be arbitration under that Ordinance with 2 arbitrators, one appointed by the grantee and one by the Commissioner. (Added 56 of 1986 s. 22. Amended 17 of 2010 s. 112)(9) The powers conferred on the Chief Executive in Council by subsection (5) shall cease to be exercisable after a period of 20 years from the commencement* of the Kowloon-Canton Railway Corporation (Amendment) Ordinance 1986 (56 of 1986) or such further period or periods as may be authorized by resolution of the Legislative Council. (Added 56 of 1986 s. 22)(Amended 62 of 1999 s. 3) Editorial Note: # Commencement date: 3 March 2014. * Commencement date: 1 November 1986. 6. Periods of grants and extensions thereof (1) A franchise may be granted for a period not exceeding 10 years, and in calculating a franchise period no account shall be taken of any change from time to time in the specified routes.(2) If, not less than 15 months before the expiry of the period for which a franchise was granted under subsection (1), the grantee has by notice in writing to the Financial Secretary requested an extension of such period, the Chief Executive in Council may, if he is satisfied that the grantee is capable of maintaining a proper and efficient service, extend the franchise for a further period not exceeding 5 years. (Amended 44 of 1984 s. 6; 82 of 1995 s. 2; L.N. 362 of 1997; L.N. 144 of 2022)(2A) Where notice has been given by a grantee under subsection (2), the Secretary for Transport and Logistics shall, not less than 9 months before the expiry of the period for which the franchise was granted under subsection (1), submit to the Chief Executive in Council a report setting out his recommendation as to whether the franchise should be extended for a further period under this section. (Added 82 of 1995 s. 2. Amended L.N. 106 of 2002; L.N. 130 of 2007; L.N. 144 of 2022)(3) The Chief Executive in Council may, at any time during a franchise period—(a) whenever he considers it appropriate having regard to any circumstances affecting the franchise; and(b) if he is satisfied that the grantee is capable of maintaining a proper and efficient service, (Replaced 44 of 1984 s. 6)extend the franchise from time to time for a further period not exceeding 2 years. (Amended 44 of 1984 s. 6)(Amended 62 of 1999 s. 3) Editorial Note: The application of this section is affected by section 7 of the Public Bus Services (Amendment) Ordinance 1995 (82 of 1995). 7. Restriction on assignment or other disposition of franchise A grantee shall not assign or otherwise dispose of its franchise, or any part thereof, without the approval of the Chief Executive in Council.(Amended 62 of 1999 s. 3) 8. Directors of grantee companies (1) Save where the Chief Executive in Council otherwise permits on the granting of a franchise, a majority of the directors of a grantee shall be individuals who are ordinarily resident in Hong Kong. (Amended 80 of 1982 s. 2; 28 of 1998 s. 2; 62 of 1999 s. 3)(2) A majority of the directors required under subsection (1) shall participate actively in the direction of the grantee. 9. Chief Executive may appoint additional directors (1) The Chief Executive may, notwithstanding any provision of the Companies Ordinance (Cap. 622), the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32) or any other law or of any document, appoint not more than 2 persons to be additional directors of a grantee; and, notwithstanding any such provision as aforesaid, a person so appointed may not be removed from the board of a grantee except by the Chief Executive. (Amended 62 of 1999 s. 3; 28 of 2012 ss. 912 & 920)(2) A person so appointed to be an additional director of a grantee shall represent the Government and for that purpose shall be entitled to participate at meetings of the grantee and the board of the grantee, to have access to all material concerning the affairs of the grantee which is available to any other director and require such information with respect to the grantee’s affairs as he may specify to be furnished to him, and, without prejudice to the foregoing but subject to subsection (3), any such person shall be treated for all purposes as if he had been appointed at a general meeting of the grantee as a director thereof.(3) No fee or reward, financial or otherwise, shall be paid by a grantee to a person appointed to be an additional director of the grantee under this section in respect of his performance of the functions of such a director. 10. Grantee not to alter memorandum or articles without Chief Executive’s approval No alteration shall be made during the franchise period to the memorandum of association (if any) or articles of association of a grantee without the approval of the Chief Executive.(Amended 62 of 1999 s. 3; 28 of 2012 ss. 912 & 920) Part III Operation and Control of Services 11. Grantee to operate on specified routes only (1) Subject to subsection (2), a grantee shall not operate a public bus service otherwise than on a specified route.(2) Whenever circumstances beyond the control of a grantee so require, a grantee may cause a public bus service to be diverted from a specified route for so long as such circumstances continue to so require. 12. Grantee to maintain proper service (1) A grantee shall, at all times during the franchise period, maintain to the satisfaction of the Commissioner a proper and efficient public bus service.(2) Without prejudice to the generality of subsection (1), the grantee shall not be treated for any purpose of this Ordinance as maintaining a proper and efficient public bus service unless it maintains the service and operates the same in accordance with its franchise, this Ordinance, any direction or requirement under its franchise or this Ordinance and any programme or any approval under section 16A. (Amended 44 of 1984 s. 7) 12A. Forward planning programme (1) With effect from 1 January 1985, a grantee shall in each year, not later than 30 June, prepare a programme of the operations of the grantee for the following 5 years in respect of the matters specified in the Schedule, and the grantee and the Commissioner shall, subject to subsection (4), take all reasonable steps to reach agreement on the programme by 30 September in that year; and the programme as agreed under this subsection or as settled under subsection (4) shall be submitted to the Secretary for Transport and Logistics by the Commissioner.(2) A programme submitted to the Secretary for Transport and Logistics under subsection (1) in any year shall upon such submission come into force and supersede the programme (if any) so submitted in the immediately preceding year, but where a programme is not submitted in any year the programme submitted in the previous year shall, without prejudice to subsection (5), continue in force until it is superseded or it expires, whichever is the earlier.(3) A programme which is in force under this section may from time to time be altered by mutual consent of the Commissioner and a grantee and such alterations shall be submitted to the Secretary for Transport and Logistics by the Commissioner and upon such submission the programme shall continue in force as altered.(4) If the grantee and the Commissioner fail to reach agreement on any point in a programme prepared by a grantee under subsection (1) in any year, or fail to mutually agree any alterations under subsection (3), the grantee and the Commissioner shall forward the details of the point in disagreement to the Secretary for Transport and Logistics who shall decide on the point having regard to the submissions of the grantee and the Commissioner and such decisions of the Secretary for Transport and Logistics shall, subject to section 33, be final and shall be incorporated in the programme and such programme shall be the settled programme.(5) Where, without reasonable excuse, a grantee fails to prepare a programme in compliance with subsection (1) it shall be deemed to be incapable of maintaining a proper and efficient service.(Added 44 of 1984 s. 8. Amended L.N. 106 of 2002; L.N. 130 of 2007; L.N. 144 of 2022) 12B. Relevance of programme and non-compliance in certain circumstances (1) In the exercise of any power under this Ordinance, the Chief Executive in Council and the Commissioner shall have regard to a programme. (Amended 62 of 1999 s. 3)(2) Where a grantee fails to comply with a programme by reason of circumstances beyond its control, such failure shall not be taken as a breach of its franchise or a failure to maintain a proper and efficient services.(Added 44 of 1984 s. 8) 13. Fares (1) The Chief Executive in Council may determine— (Amended 62 of 1999 s. 3)(a) the scale of fares which may be charged for the carriage of passengers, baggage and goods on any specified route or group of specified routes; and(b) the maximum rate of increase which may be permitted by the Commissioner under subsection (3) in the scale of fares determined under paragraph (a).(2) Where the Commissioner requires a grantee under section 15, or approves an application by a grantee under section 16A, to—(a) alter a specified route temporarily; or(b) operate a temporary public bus service on a route, not being a specified route,the Commissioner shall determine the fares which may be charged for the carriage of passengers, baggage and goods on such altered route or temporary service, and such fares shall be based on the appropriate scale of fares determined under subsection (1)(a):Provided that the Commissioner shall not reduce the fares on a specified route under this subsection where the reason for the temporary alteration arises out of circumstances beyond the control of the grantee. (Replaced 44 of 1984 s. 9)(3) Where circumstances require a public bus service to be operated on a specified route—(a) on any day at a frequency greater than that specified in a direction under section 16(1)(a) or in an application approved under section 16A;(b) during a period or on a day other than that specified in a direction under section 16(1)(a) or in an application approved under section 16A; or(c) with a bus of a carrying capacity or of a type other than that specified in a direction under section 16(1)(b) or in an application approved under section 16A,the Commissioner may by notice in writing to the grantee permit the grantee to charge an increased fare for the carriage of passengers, baggage and goods on such route during such operation of a public bus service, and such increased fare shall be based on the appropriate scale of fares determined under subsection (1)(a) to which may be added such increase as the Commissioner may think fit at a rate not exceeding the rate of increase determined under subsection (1)(b). (Replaced 44 of 1984 s. 9)(4) A grantee shall not charge any passenger—(a) a fare exceeding the fare determined in accordance with the appropriate scale of fares determined under subsection (1)(a) or the fare determined under subsection (2) or permitted under subsection (3); or(b) except with the prior permission of the Commissioner, a fare lower than that so determined or, where applicable, the increased fare permitted under subsection (3). (Amended 44 of 1984 s. 9) 14. Alteration of routes and provision of additional routes (1) Subject to subsections (4) and (5), the Chief Executive in Council may by notice in writing to the grantee require it, before the expiry of such period as may be specified in the notice, to—(a) alter a specified route in the manner specified in the notice, whether by way of extending or curtailing or otherwise varying the route;(b) operate a public bus service on such route, not being a specified route, as may be specified in the notice.(2) Where under subsection (1) the Chief Executive in Council requires a grantee to operate a service on a new route, he may confer on the grantee the exclusive right to operate a public bus service on that route.(3) The period of notice referred to in subsection (1) shall be—(a) in the case of a notice served under paragraph (a) thereof, not less than 3 months; and(b) in the case of a notice served under paragraph (b) thereof, not less than 6 months.(4) A requirement shall not be made under subsection (1)(a) unless the Commissioner has consulted the grantee with respect thereto. (Amended 44 of 1984 s. 10)(5) Before a requirement under subsection (1)(b) is made, the Commissioner shall consult the grantee on the proposed service and satisfy himself that the grantee, if he is required to operate a public bus service on a new route, will—(a) have available a sufficient number of buses for use on the new route and all existing routes; and(b) be able to maintain a proper and efficient service on the new route and all existing routes,and shall submit a report of his findings, and details of any points in disagreement between the grantee and him, to the Chief Executive in Council. (Added 44 of 1984 s. 10)(Amended 44 of 1984 s. 10; 62 of 1999 s. 3) 15. Temporary alteration of routes and provision of additional routes (1) The Commissioner may, after consultation with a grantee, by notice in writing to the grantee, require it, before the expiry of such period (being not less than 3 months) as may be specified in the notice, to—(a) alter a specified route temporarily in the manner specified in the notice, whether by way of extending or curtailing or otherwise varying the route;(b) operate a temporary public bus service on such route, not being a specified route, as may be specified in the notice.(2) A requirement under subsection (1) shall have effect for such period, not exceeding 12 months, as may be specified in the notice, and may be extended by the Commissioner for a further period not exceeding 12 months.(3) Before a requirement under subsection (1)(b) is made, the Commissioner shall satisfy himself that the grantee, if he is required to operate a public bus service on a new route, will—(a) have available a sufficient number of buses for use on the new route and all existing routes; and(b) be able to maintain a proper and efficient service on the new route and all existing routes. (Added 44 of 1984 s. 11) 16. Commissioner to specify frequency of services and carrying capacity and types of buses (1) The Commissioner shall, after consultation with a grantee, from time to time as he thinks necessary, direct by notice in writing to the grantee—(a) the frequency at and the period on each day during which a public bus service shall be operated on a specified route;(b) the carrying capacity and types of the buses to be used on any such route.(2) Where the effect of a notice under subsection (1) is to alter the frequency at which a public bus service is being operated under such a notice in force at the time that the first-mentioned notice is given, such first-mentioned notice shall take effect on such day as the Commissioner may specify, being not less than 3 months after the service of the notice.(3) Subject to subsection (3A), a grantee may, on any specified route in respect of which it has the exclusive right to operate a public bus service, increase the frequency at which the service is operated on that route in accordance with a direction under subsection (1) whenever in its opinion circumstances so require. (Amended 44 of 1984 s. 12)(3A) For the purposes of subsection (3)—(a) subject to paragraph (b), before a grantee increases the frequency of service on any specified route he shall give to the Commissioner notice in writing of not less than 14 days or such lesser period as the Commissioner may allow;(b) where due to the special circumstances of any case a grantee increases the frequency of service on any specified route without notice as required under paragraph (a), he shall, within 7 days after the date on which the frequency of service is increased, give to the Commissioner notice in writing of such increase and of the circumstances necessitating it. (Added 44 of 1984 s. 12)(4) A grantee may, on any specified route in respect of which it does not have the exclusive right to operate a public bus service, increase the frequency at which the service is operated on that route in accordance with a direction under subsection (1) whenever in its opinion circumstances so require, if the increase in the frequency is—(a) agreed between the grantee and any other grantee which operates a public bus service on that route; and(b) approved by the Commissioner.(5) Before a direction under subsection (1) is given, the Commissioner shall satisfy himself that the grantee, if he is required to operate a public bus service on a route at the frequency required, will—(a) have available a sufficient number of buses for use on the route and all other routes; and(b) be able to maintain a proper and efficient service on the route and all other routes. (Added 44 of 1984 s. 12) 16A. Temporary variation of route, frequency of services, carrying capacity and types of buses on grantee’s application (1) A grantee may apply in writing to the Commissioner—(a) to alter a specified route temporarily by way of extending or curtailing or otherwise varying the route;(b) to operate a temporary public bus service on a route, not being a specified route, or to suspend a public bus service on a specified route;(c) to vary temporarily the frequency at and the period on each day during which a public bus service is operated on a specified route;(d) to vary temporarily the carrying capacity and types of buses used on any route, whether specified or not.(2) An application under subsection (1) shall be delivered to the Commissioner not less than 14 days prior to the date upon which the grantee desires to introduce the variation set out in his application:Provided that, where special circumstances exist, the Commissioner may shorten the period of notice to be given by the grantee.(3) The Commissioner may approve, subject to such conditions as he thinks fit, or may refuse any application under subsection (1), and where the Commissioner refuses any application he shall give the grantee in writing the reasons for such refusal.(4) An approval under subsection (3) shall have effect for such period, not exceeding 12 months, as the Commissioner shall specify.(5) The requirements of a notice under section 14 or 15 or a direction under section 16 shall, so far as they are inconsistent with an approval of an application under subsection (3), be suspended during the period of the approval and shall again take effect on the expiration of the period of the approval.(Added 44 of 1984 s. 13) 17. (Repealed 72 of 1984 s. 2) 18. Records (1) A grantee shall keep, to the satisfaction of the Commissioner, proper records in respect of the following matters—(a) the number and capacity of the buses in use on each specified route on each day;(b) the number of journeys and the total kilometres travelled by each such bus on each day on each such route; (Amended 75 of 1982 s. 114; L.N. 307 of 1984)(c) the number of passengers carried by each such bus on each day on each such route; (Amended 75 of 1982 s. 114)(d) the daily receipts in respect of each such route;(e) the total kilometres lost each day in relation to each such route due to accidents, breakdowns and vehicle and staff shortages, respectively; (Amended L.N. 307 of 1984)(f) the maintenance of vehicles and stores; (Amended 44 of 1984 s. 14)(g) the number and types of buses, and their carrying capacity, on order or under construction together with details of the likely availability of such buses for use in the operation of the public bus service. (Added 44 of 1984 s. 14)(2) A grantee shall furnish to the Commissioner, at such times and in such form as he may require, copies of the records kept by the grantee in accordance with subsection (1).(3) A grantee shall permit the Commissioner, and any person authorized in writing by him, to inspect at any reasonable time all such records and all accounts kept by the grantee in connexion with its franchise; and the Commissioner or any such person may make copies of any such records or accounts. 19. Provision of vehicle maintenance facilities, etc. A grantee shall provide and maintain such premises as the Commissioner considers necessary for construction, repair and maintenance of vehicles used by the grantee in connexion with its franchise and for the parking of all such vehicles when they are not in use. 20. Restrictions in connection with section 19 Except with the written permission of the Commissioner, a grantee shall not—(a) use any premises provided and maintained in accordance with section 19 other than for the construction, repair, maintenance or parking of vehicles used by the grantee in connection with its franchise; or(b) undertake or permit to be undertaken the construction, repair or maintenance of vehicles used by the grantee in connection with its franchise, or the parking of such vehicles when they are not in use, other than in premises provided and maintained in accordance with section 19.(Replaced 82 of 1995 s. 3) Editorial Note: The application of this section is affected by section 7 of the Public Bus Services (Amendment) Ordinance 1995 (82 of 1995). 21. Inspection of premises, maintenance facilities and vehicles (1) The Commissioner, and any person authorized in writing by him, may—(a) at all reasonable times inspect—(i) any premises used by a grantee in connexion with its franchise and all facilities provided by a grantee for the construction, repair and maintenance of vehicles so used by it;(ii) any vehicle used by a grantee in connexion with its franchise;(b) require a grantee to carry out in respect of all such vehicles, or such of those vehicles as he may specify, such repair, maintenance or other works, within such time (being not less than 3 months), as he may specify; (Amended 44 of 1984 s. 15)(c) require a grantee to carry out in respect of all or any vehicles used by the grantee in connexion with its franchise any maintenance and servicing in accordance with any programme. (Added 44 of 1984 s. 15)(2) A grantee shall afford such facilities for the inspections referred to in subsection (1)(a) as may be required by the Commissioner. 22. Chief Executive in Council may impose financial penalty (1) The Chief Executive in Council may, by notice in writing to a grantee, require the payment of the financial penalty specified in such notice. (Amended 62 of 1999 s. 3)(2) A financial penalty may be imposed in respect of any failure by a grantee to comply with its franchise or this Ordinance or any direction or requirement under its franchise or this Ordinance, or with any programme or any approval under section 16A. (Amended 44 of 1984 s. 16; 66 of 1994 s. 2)(2A) Without affecting the generality of subsection (2), a financial penalty may be imposed under this section in respect of a failure by the grantee as regards—(a) a particular route operated by it; or(b) 2 or more routes so operated. (Added 66 of 1994 s. 2)(3) A financial penalty imposed under this section shall not exceed $10,000 for the first occasion on which a penalty is imposed, and shall not exceed $20,000 for the second occasion on which a penalty is imposed, and shall not exceed $50,000 for any subsequent occasion on which a penalty is imposed. (Amended 66 of 1994 s. 2)(3A) In determining for the purposes of subsection (3) whether an occasion (the occasion) is the first, second or a subsequent occasion on which a financial penalty was imposed, the following shall apply—(a) a previous occasion on which a financial penalty was imposed and which occurred more than 5 years prior to the occasion shall not be taken into account; and(b) a financial penalty previously imposed—(i) either in respect of the same route or any other route (where the financial penalty being imposed relates to a failure as regards a route); or(ii) for any other reason,shall be taken into account. (Added 66 of 1994 s. 2)(4) A financial penalty shall not be imposed under this section unless—(a) the Commissioner is satisfied that the grantee has had a reasonable opportunity of complying with its franchise or this Ordinance or the direction or requirement, or with any programme or any approval under section 16A, as the case may be;(b) the Commissioner has notified the grantee of the failure and the details thereof; and(c) the grantee has been given an opportunity of showing cause to the Commissioner why the penalty should not be imposed. (Replaced 44 of 1984 s. 16)(5) A financial penalty imposed under this section shall be recoverable as a civil debt. Part IV Emergency and Revocation 23. Emergency (1) If the Chief Executive in Council considers that an emergency exists he may direct that the franchise of a grantee be suspended, either altogether or in respect of any specified route he may specify, until the Chief Executive in Council declares that the emergency no longer exists. (Amended 62 of 1999 s. 3)(2) Where under subsection (1) a franchise is suspended altogether or in respect of any specified route, the Government may by written notice served on the company and published in the Gazette require the company to deliver to the Government possession of the following property, that is to say—(a) any premises provided and maintained in accordance with section 19;(b) any property (other than premises mentioned in paragraph (a)) used or kept by the company for the purposes of or in connection with its franchise,and may at the time of or as soon as practicable after service of the notice take possession of such property.(3) Any property taken possession of under subsection (2)—(a) may be retained by the Government until such time as the Chief Executive in Council declares that the emergency no longer exists, and may be so retained notwithstanding that the franchise period of the grantee has expired during the period of the emergency; and (Amended 62 of 1999 s. 3)(b) may during its retention be used by the Government or its nominee in the operation of such bus service as the Commissioner thinks fit.(4) Subject to subsection (9), where possession is taken under subsection (2) of any property, the person having for the time being the right to possession over the property during its retention by the Government under subsection (3) shall be entitled to compensation as provided in subsections (5) to (7).(5) The compensation payable under subsection (4) shall be an amount equal to the open market rental that a willing lessor might be expected to realize under a lease of the property on the following terms, that is to say a lease—(a) which is terminable by either party upon the giving of 1 month’s notice;(b) which is subject to terms and conditions similar to the provisions applying by virtue of section 25A in respect of possession of the property under this section; and(c) under which the rental is payable monthly in arrears.(6) For the purposes of subsection (5)—(a) in the case of property being a number of motor vehicles, reference to the open market rental shall be taken to be reference to the open market rental that a lessor might be expected to realize in respect of that number of vehicles leased as a single lot;(b) in the case of property being land or buildings on land, reference to a lease of the property shall be construed as reference to a lease on terms prohibiting the use of the property other than in accordance with the terms of any Government lease under which the land is held. (Amended 29 of 1998 s. 105)(7) Notwithstanding subsection (5)—(a) the compensation payable in respect of property being spare parts and other consumables shall be an amount equal to the difference in book value of the stock of such consumables taken over the period of the Government’s possession of the property under subsection (3);(b) the compensation payable in respect of property being the fixed assets of the franchisee (including plant and machinery) other than motor vehicles and land or buildings on land shall be an amount equal to the depreciation in the value of the property over the period of the Government’s possession of the property under subsection (3) as calculated at the rate of depreciation applicable in respect of that property for the purposes of section 30,and any such compensation shall be payable at the end of that period of possession.(8) A grantee shall, in addition to any entitlement to compensation under subsection (4), be entitled to compensation for any loss or damage sustained during the franchise period in consequence of any suspension of its franchise under subsection (1), but nothing in this subsection shall be construed so as to entitle a grantee to receive compensation under both this subsection and subsection (4) in respect of the same loss or damage.(9) The liability of the Government under this section to pay compensation to any person under subsection (4) shall cease to accrue upon the making of a declaration by the Chief Executive in Council under subsection (1). (Amended 62 of 1999 s. 3)(10) Compensation payable under this section shall, unless otherwise stated, be payable monthly in arrears.(Replaced 82 of 1995 s. 4) 24. Revocation of right to operate a service on a specified route or of franchise (1) If—(a) it appears to the Chief Executive in Council that without good cause a grantee has failed, or is likely to fail, to maintain a proper and efficient public bus service, either generally or in respect of any specified route, in accordance with section 12; or(b) a grantee has failed to pay any financial penalty imposed under section 22,the Chief Executive in Council may direct the Commissioner to serve on the grantee a notice requiring the grantee to show cause in writing, within 28 days after the service of such notice—(i) why its right to operate a public bus service on such specified routes as are set out in such notice should not be revoked; or(ii) why its franchise should not be revoked altogether,and any such notice shall specify the ground on which such right or the franchise may be revoked.(2) If, after the service of a notice under subsection (1)(i)—(a) the grantee does not show cause why its right to operate a public bus service on the specified routes set out therein should not be revoked; or(b) the Chief Executive in Council, having considered any representations made by the grantee, is of the opinion that the grantee has not shown good cause why such right should not be revoked,the Chief Executive in Council may, with effect from such date as he may specify, revoke such right.(3) If, after the service of a notice under subsection (1)(ii)—(a) the grantee does not show cause why the franchise should not be revoked altogether; or(b) the Chief Executive in Council, having considered any representations made by the grantee, is of the opinion that the grantee has not shown good cause why the franchise should not be revoked altogether,the Chief Executive in Council may, with effect from such date as he may specify, revoke the franchise.(4) Notice of the revocation of a right or franchise under this section shall be served on the grantee and, as soon as practicable thereafter, shall be published in the Gazette.(5) A grantee shall not be entitled to compensation in respect of the revocation of a right or franchise under this section and where a franchise is revoked altogether the grantee shall be liable to pay to the Government any expense incurred by the Government in connexion with the franchise or the revocation thereof.(Amended 62 of 1999 s. 3) 25. Temporary retention by Government of bus assets used by company whose franchise is revoked or has expired (1) Where—(a) a franchise has been revoked under section 24(3); or(b) a franchise period has expired and no new franchise has been granted under section 5(1) to the company,the company shall deliver to the Government possession of such of the following property as may be specified by the Government in a notice served on the company and published in the Gazette, that is to say—(i) any premises provided and maintained in accordance with section 19 within the period of 3 months immediately prior to the service of a notice on the company under section 24(1) or within the period of 3 months ending with the expiry of the franchise period (as the case may be);(ii) any property (other than premises mentioned in paragraph (i)) used or kept by the company for the purposes of or in connection with its revoked or expired franchise within that period,and the Government may take possession of such property as from the time that the notice has effect.(2) A notice served and published in accordance with subsection (1) shall have effect—(a) where the notice was served and published prior to the revocation of the franchise or the expiry of the franchise period, as from such revocation or expiry;(b) in any other case, as from the time of its service and publication.(3) Subject to subsection (8), any property taken possession of under subsection (1)—(a) may be retained by the Government for such periods not exceeding 3 years in aggregate, and not exceeding 2 years in the case of any one such period, as the Chief Executive in Council may direct; and (Amended 62 of 1999 s. 3)(b) may during its retention be used by the Government or its nominee, or by a third party designated by the Government for the purposes of this subsection, in the operation of such bus service as the Commissioner thinks fit.(4) Subject to subsection (8), where possession is taken under subsection (1) of any property, a person having for the time being the right to possession over the property during its retention by the Government under subsection (3) shall be entitled to compensation as provided in subsections (5) to (7).(5) The compensation payable under subsection (4) shall be an amount equal to the open market rental that a willing lessor might be expected to realize under a lease of the property on the following terms, that is to say a lease—(a) for the period specified in the notice given under subsection (1) as the period of the Government’s intended possession of the property and terminable by the lessee on giving 3 months’ notice;(b) which is subject to terms and conditions similar to the provisions applying by virtue of section 25A in respect of possession of the property under this section;(c) under which the rental is payable monthly in arrears.(6) For the purposes of subsection (5)—(a) in the case of property being a number of motor vehicles, reference to the open market rental shall be taken to be reference to the open market rental that a lessor might be expected to realize in respect of that number of vehicles leased as a single lot;(b) in the case of property being land or buildings on land—(i) no regard shall be had to any improvements made to the property—(A) after notice has been served on the company under section 24(1); or(B) within a period of 1 year before the expiry of the franchise period,as the case may be, except that sub-subparagraph (B) shall not apply as regards any improvements made with the prior written approval of the Commissioner given for the purposes of this section; and(ii) reference to a lease of the property shall be construed as reference to a lease on terms prohibiting the use of the property other than in accordance with the terms of any Government lease under which the land is held. (Amended 29 of 1998 s. 105)(7) Notwithstanding subsection (5)—(a) the compensation payable in respect of property being spare parts and other consumables shall be an amount equal to the difference in book value of the stock of such consumables taken over the period of the Government’s possession of the property under subsection (3);(b) the compensation payable in respect of property being the fixed assets of the franchisee (including plant and machinery) other than motor vehicles and land or buildings on land shall be an amount equal to the depreciation in the value of the property over the period of the Government’s possession of the property under subsection (3) as calculated at the rate of depreciation applicable in respect of that property for the purposes of section 30,and any such compensation shall be payable at the end of that period of possession.(8) The liability of the Government under subsection (4) to pay compensation to any person shall cease to accrue, and its right to retain possession of any property under subsection (3) shall terminate—(a) at the expiry of the period specified in the notice given under subsection (1) as the period for which the Government intends to retain possession of the property, or at the expiry of any extension of that period that the Government may specify by notice under this paragraph published in the Gazette; or(b) on such earlier date as the Government may specify by notice under this paragraph published in the Gazette, being a date not earlier than 3 months after the date of publication of the notice.(9) Compensation payable under this section shall, unless otherwise stated, be payable monthly in arrears.(10) For the avoidance of doubt it is declared that subsection (4) has effect notwithstanding section 24(5).(Replaced 82 of 1995 s. 5) Editorial Note: The application of this section is affected by section 7 of the Public Bus Services (Amendment) Ordinance 1995 (82 of 1995). 25A.

Terms upon which Government takes possession under section 23 or 25 (1) Where the Government takes possession of any property under section 23 or 25 (in either case referred to in this section as the relevant section) the following provisions shall have effect—(a) if the property is land or buildings on land—(i) the Government shall be liable to pay a fair and reasonable proportion (apportioned in respect of the period of its possession of the property under the relevant section) of all rates and other outgoings of a periodically recurring nature incurred in respect of the property during the period of its possession of the property under the relevant section;(ii) the Government may replace from time to time any fixtures and fittings on the property which may be or become beyond repair at any time during the period of its possession of the property under the relevant section, without any obligation to reinstate the property at the termination of its right to possession of the property;(iii) the Government shall be at liberty at any time during the period of its possession of the property under the relevant section to undertake any works that it may reasonably deem necessary to render the property safe or to ensure the safety of any person lawfully using the property, without any obligation to reinstate the property at the termination of its right to possession of the property, and the reasonable cost of any such work shall be recoverable from the owner of the property as a civil debt due to the Government;(iv) subject to subparagraphs (ii) and (iii), at the termination of its right to possession of the property under the relevant section, the Government shall ensure that the property is left in its original condition, fair wear and tear excepted and excepting any damage not caused by any act or default of the Government or anyone on the property with the Government’s authority and under the Government’s control;(b) if the property is property other than land or buildings on land—(i) the Government may during the period of its possession of the property under the relevant section fit any such new parts to any item of the property as shall from time to time be necessary, without any obligation to reinstate the property at the termination of its right to possession of the property;(ii) the Government shall be liable to pay a fair and reasonable proportion (apportioned in respect of the period of its possession under the relevant section) of all outgoings of a periodically recurring nature incurred in respect of the property during the period of its possession of the property under the relevant section;(iii) the Government may at its own expense during the period of its possession of the property under the relevant section add to or install on any item of the property any safety or other equipment, or make any alteration or modification to the property, as may be required under any Ordinance, without any obligation to reinstate the property at the termination of its right to possession of the property;(iv) subject to subparagraphs (i) and (iii), at the termination of its right to possession of the property under the relevant section, the Government shall ensure that the property, other than such property as may have been acquired by the Government under section 25B, is left in its original state of repair and working order, fair wear and tear excepted, and excepting any damage not caused by any act or default of the Government or anyone in possession of the property with the Government’s authority and under the Government’s control.(2) In this section original condition (原來狀況) and original state of repair and working order (原來的維修及操作狀態) mean, in relation to any property, the condition or state of repair and working order of the property at the time of the Government’s taking possession of it under the relevant section.(Added 82 of 1995 s. 6) Editorial Note: The application of this section is affected by section 7 of the Public Bus Services (Amendment) Ordinance 1995 (82 of 1995). 25B. Acquisition of bus assets (other than land) used by grantee whose franchise is revoked or has expired (1) Where—(a) a franchise is revoked under section 24(3); or(b) a franchise period expires and no new franchise is granted under section 5(1) to the company,the Government may acquire, in its own name or in the name of a third party designated by the Government for the purposes of this section, any property (other than land, interests in land or buildings on land) used or kept by the company for the purposes of or in connection with its franchise within the period of 3 months immediately prior to the service of a notice on the company under section 24(1) or within the period of 3 months ending with the expiry of the franchise period (as the case may be).(2) In respect of any property of which the Government has taken possession under section 25(3), the power conferred by subsection (1) may be exercised at any time within the period of 1 year from the date of revocation or expiry of the franchise period, as the case may be.(3) Where the Government acquires any property under subsection (1), any person having an interest or right in or over that property shall be entitled to compensation in an amount equal to the open market value that a willing vendor might be expected to realize on the sale of such interest or right in the property.(4) In subsection (3), in the case of an interest or right in property being a number of motor vehicles reference to the open market value shall be taken to be reference to the open market value of the interest in that number of vehicles when dealt with as a single lot.(5) Where any property is acquired under this section the owner of the property or any person having an interest or right in or over the property shall, when called upon to do so by the Government, execute a transfer in favour of the Government or a third party designated by the Government for the purposes of subsection (1).(Added 82 of 1995 s. 6) Editorial Note: The application of this section is affected by section 7 of the Public Bus Services (Amendment) Ordinance 1995 (82 of 1995). 25C. Power of entry The Government or its nominee may, for the purpose of taking possession of property under this Part, enter upon any land or buildings on land where it is reasonably necessary to do so for that purpose.(Added 82 of 1995 s. 6) Editorial Note: The application of this section is affected by section 7 of the Public Bus Services (Amendment) Ordinance 1995 (82 of 1995). 25D. Determination of compensation by arbitrator (1) The Government may compromise or settle any claim for compensation under this Part.(2) In default of an agreement between a claimant for compensation under this Part and the Government as regards the amount of compensation, if any, payable to the claimant the compensation shall be determined by arbitration under the Arbitration Ordinance (Cap. 609) and for that purpose the Government and the claimant shall be regarded as having made an arbitration agreement within the meaning of that Ordinance whose provisions shall be deemed to include a provision that the compensation referred to shall, in the absence of an agreement, be determined by a single arbitrator. (Amended 17 of 2010 s. 112)(Added 82 of 1995 s. 6)Editorial Note:The application of this section is affected by section 7 of the Public Bus Services (Amendment) Ordinance 1995 (82 of 1995).. 25E. Provisional payment pending determination of compensation (1) Where any offer of compensation made by the Government to any person under this Part in respect of any claim is not accepted, the Government may, pending the determination by the arbitrator of the compensation, if any, payable in respect of such claim under this Part, pay—(a) an amount as a provisional payment of the amount payable by virtue of such determination; and(b) interest on any payment made under paragraph (a), for the period from the date on which the amount becomes payable until the date on which the payment is made, calculated at a rate equal to the 7 day deposit rate plus 2%, where 7 day deposit rate (7天通知存款利率) means the highest rate of interest (expressed as a percentage) paid from time to time by the continuing members of the Committee of The Hong Kong Association of Banks on deposits of that amount fixed for 7 days.(2) Any payment made by the Government under subsection (1) in respect of any claim shall be without prejudice to the claim or the submission of the claim to, or its determination by, the arbitrator under this Part; but the amount of compensation payable by virtue of such determination in respect of such claim shall be reduced by the amount of such payment.(3) Where the amount of compensation payable by virtue of a determination of the arbitrator under this Part is reduced under subsection (2) by the amount of any payment made under subsection (1), such compensation shall not as from the date on which the payment is made bear interest except on the amount of the compensation as so reduced.(4) Where the amount of any payment made by the Government under subsection (1) in respect of any claim exceeds the amount of the compensation determined by the arbitrator in respect of such claim, the amount of the excess shall be recoverable by the Government as a civil debt.(Added 82 of 1995 s. 6) Editorial Note: The application of this section is affected by section 7 of the Public Bus Services (Amendment) Ordinance 1995 (82 of 1995). 25F. Payment of compensation and interest (1) At any time after agreement or determination by the arbitrator of the amount of compensation to be paid under this Part, the Government may by notice published in the Gazette require the person entitled to such compensation to collect the same within the time and at the place specified in the notice.(2) Subject to section 25E(3), any sum of money payable as compensation by virtue of an agreement under this Part or a determination of the arbitrator shall bear interest from the date on which it became payable until the expiration of the time specified in the notice referred to in subsection (1); but no interest shall be payable on any costs or remuneration.(3) The rate of interest for the purposes of subsection (2) shall be a rate equal to the 7 day deposit rate plus 2%, where 7 day deposit rate (7天通知存款利率) means the highest rate of interest (expressed as a percentage) paid from time to time by the continuing members of the Committee of The Hong Kong Association of Banks on deposits fixed for 7 days of an amount equal to the amount of compensation payable.(Added 82 of 1995 s. 6) Editorial Note: The application of this section is affected by section 7 of the Public Bus Services (Amendment) Ordinance 1995 (82 of 1995). Part V Profit Control Scheme 26. Interpretation In this Part, unless the context otherwise requires—accounting year (會計年度) means the accounting year adopted by a grantee for drawing up its annual profit and loss accounts and balance sheet;average net fixed assets (固定資產平均淨值) for any accounting year means the average of the opening and closing balances for that accounting year, as shown by the records of a grantee, of its net fixed assets;Development Fund (發展基金) means the Development Fund referred to in section 27(1);fixed assets (固定資產) means the stocks of capital items of stores and spares, investments in land, buildings, buses and other motor vehicles, plant, machinery and equipment, furniture, fixtures and fittings and other fixed assets (including assets in the course of construction, goods in transit and payments on account) used or kept by a grantee for the purposes of or in connexion with its franchise;net fixed assets (固定資產淨值) means the fixed assets of a grantee after any depreciation under section 30; operating costs (經營成本) means— (a) the total operating costs incurred by a grantee in connexion with its franchise; (b) any realized and unrealized currency exchange losses arising after the date of commencement# of the Public Bus Services (Amendment) Ordinance 1986 (30 of 1986) from transactions in connexion with the franchise of a grantee; and (c) depreciation effected in accordance with section 30; (Added 30 of 1986 s. 2) operating profit (經營利潤) of a grantee means the difference between its operating receipts and its operating costs, to which difference is added the interest (referred to in section 29(1)(b)) on all borrowed capital of the grantee; (Added 30 of 1986 s. 2) operating receipts (經營收入) means— (a) the total gross sums received by a grantee by way of—(i) the fares charged by the grantee for the carriage of passengers, baggage and goods on public buses;(ii) any charges imposed or other benefits obtained by the grantee under this Ordinance or its franchise; (Amended 30 of 1986 s. 2)(iia) any realized currency exchange profits arising after the date of commencement# of the Public Bus Services (Amendment) Ordinance 1986 (30 of 1986) from transactions in connexion with the franchise of the grantee; (Added 30 of 1986 s. 2)(iib) any proceeds of sale of obsolete or used stores and spares which were, when new or before being used, acquired by the grantee for the purposes of or in connexion with its franchise; and (Added 30 of 1986 s. 2)(iii) any other revenue, including revenue from advertisements, derived from the use of fixed assets, but does not include interest or dividends on deposits or investments and the proceeds of the sale or redemption of investments or fixed or other assets; and (b) the gross value, as determined by the Financial Secretary, of any fixed assets, services or facilities received by a grantee in lieu of any part of such total gross sums; (c) the interest or dividends accruing in respect of cash or securities which are for the time being deposited by a grantee with the Director of Accounting Services for the purposes of section 4(4)(c) of the Motor Vehicles Insurance (Third Party Risks) Ordinance (Cap. 272); (Added 88 of 1988 s. 3) permitted return (准許收益) means the return allowed to a grantee in an accounting year and which is computed in accordance with section 28(1). (Replaced 30 of 1986 s. 2) Editorial Note: # Commencement date: 6 June 1986. 26A. Deduction of financial penalty payments In ascertaining as regards a grantee, its—(a) operating costs; or(b) service related expenditure,for any purpose related to this Ordinance or the franchise granted to such grantee under this Ordinance, neither of the following shall be taken into account—(i) any amount paid by or recovered from the grantee as a financial penalty imposed under section 22; or(ii) any costs paid or incurred by it in connection with the recovery of a financial penalty under section 22(5).(Added 66 of 1994 s. 3) 27. Development Fund (1) A grantee shall, for the purposes of its franchise, maintain a Reserve to be called the Development Fund the purpose of which, subject to section 28(4) and (5), shall be to assist in the acquisition of fixed assets.(2) The balance in the Development Fund represents a liability of a grantee and shall not be applied except as provided in this Part or in the franchise of a grantee. 28. Permitted return (1) The permitted return to a grantee in an accounting year shall be an amount equal to the percentage per annum specified in its franchise of the average net fixed assets of the grantee in that accounting year. (Amended 30 of 1986 s. 3)(2) There shall be deducted from the permitted return the amounts specified in section 29.(3) Where in an accounting year the operating receipts of a grantee exceed the aggregate of—(a) the operating costs of the grantee; (Replaced 30 of 1986 s. 3)(b) any profits tax arising from the operating profit of the grantee; and (Replaced 30 of 1986 s. 3)(c) any deferred tax (the inclusion of deferred tax in the accounts for that accounting year being at the discretion of the grantee), (Added 30 of 1986 s. 3)for that accounting year, the grantee shall deduct the permitted return from such excess or so much thereof as is permitted by such excess, and in the former case any excess remaining thereafter shall be added to the Development Fund.(4) Where in an accounting year—(a) the operating receipts of a grantee are less than the aggregate of the amounts in respect of subsection (3)(a), (b) and (c); or (Amended 30 of 1986 s. 3)(b) only part of the permitted return has been deducted under subsection (3),the grantee shall, subject to subsection (5), deduct from the Development Fund—(i) in the case of paragraph (a), the deficiency in the operating receipts and the entire amount of the permitted return; and(ii) in the case of paragraph (b), such part of the permitted return as has not been deducted under subsection (3).(5) If in an accounting year there is no balance in the Development Fund, or the balance in the Development Fund is insufficient, for the purposes of subsection (4)(i) or (ii) as the case may be, the Financial Secretary may in writing permit the grantee to deduct from the Development Fund in subsequent years any amount due to it under that subsection in that accounting year. 29. Deductions from permitted return (1) Subject to such conditions as may be specified in its franchise, there shall be deducted from the permitted return in each accounting year of a grantee—(a) a charge at the rate specified in its franchise on the average of the opening and closing balances of the Development Fund in the accounting year; and(b) interest at the rate specified in its franchise on all borrowed capital of the grantee.(2) Any amounts deducted under subsection (1)(a) shall be added to the Development Fund in the accounts of each accounting year and shall form part of the opening balance of the Development Fund in the next following accounting year. 30. Depreciation Subject to such conditions as may be specified in its franchise, the annual rates of depreciation and the residual value in respect of the fixed assets of a grantee shall be as specified in its franchise. 31. Review of profit control scheme The operation of the profit control scheme in respect of a grantee shall be reviewed by the Chief Executive in Council every 2 years.(Amended 62 of 1999 s. 3) 32. Powers of Financial Secretary to require production of accounts, etc. The Financial Secretary may require a grantee—(a) to produce to him, at such time and place as he may specify, such books and statements of account of the grantee; and(b) to provide to him such information in relation to the public bus service operations of the grantee,as he may require. Part VI Miscellaneous 33. Appeal by grantee (1) A grantee which is aggrieved by any decision, direction or requirement of the Secretary for Transport and Logistics, or a public officer given directions under section 3, or the Commissioner, or any person authorized by him, under this Ordinance or its franchise may, within 28 days of the giving or making of the decision, direction or requirement, appeal by petition to the Chief Executive in Council, and the decision of the Chief Executive in Council on any such appeal shall be final. (Amended 44 of 1984 s. 17; L.N. 106 of 2002; L.N. 130 of 2007; L.N. 144 of 2022)(2) Where a grantee has appealed under subsection (1), the decision, direction or requirement, as the case may be, shall not have effect until the appeal has been determined, unless the Chief Executive in Council otherwise directs.(Amended 62 of 1999 s. 3) 34. Amendment of Schedule of Routes orders The Commissioner shall, whenever necessary in consequence of—(a) the exercise of any power conferred on the Chief Executive in Council by section 14;(aa) a revocation of a right to operate a public bus service on any specified route by mutual consent of the Commissioner and a grantee or in consequence of an order under section 5(5); (Added 44 of 1984 s. 18. Amended 56 of 1986 s. 22)(b) a revocation under section 24(2); or(c) any decision of the Chief Executive in Council on an appeal under section 33,by order amend the Schedule of Routes order affected thereby.(Amended 62 of 1999 s. 3) 35. Secretary for Transport and Logistics to make regulations (Amended L.N. 130 of 2007; L.N. 144 of 2022)(1) The Secretary for Transport and Logistics may make regulations for all or any of the following matters— (Amended 66 of 1994 s. 4; L.N. 106 of 2002; L.N. 130 of 2007; L.N. 144 of 2022)(a) the provision of adequate signs and destination indicators on buses used by a grantee;(b) the provision of uniforms and badges for the drivers, conductors and authorized persons employed by a grantee; (Amended 44 of 1984 s. 19)(c) regulating the conduct of such drivers, conductors and authorized persons while so employed; (Amended 44 of 1984 s. 19)(d) generally as to the conduct of passengers and intending passengers on buses used by a grantee; (Replaced 88 of 1988 s. 4)(da) (Repealed 88 of 1988 s. 4)(db) controlling or prohibiting the carriage of goods and dangerous items on such buses; (Added 44 of 1984 s. 19)(dc) controlling or prohibiting the carriage of animals and birds on such buses; (Added 44 of 1984 s. 19)(dd) the control and disposal of property lost on such buses; (Added 44 of 1984 s. 19)(e) the method of payment of fares by passengers using such buses;(f) the designation of bus stops and the erection of appropriate signs and notices thereon;(fa) during the period referred to in section 5(9), prohibiting or restricting the putting down or taking up of passengers or of any class of passengers by a grantee within the North-west Transit Service Area otherwise than as may be permitted by its franchise; (Added 56 of 1986 s. 22)(g) regulating the number of the seated passengers and standing passengers respectively whom a bus used by a grantee is constructed or adapted and fit to carry;(h) regulating the number of such passengers respectively who may be carried in such a bus;(i) the marks to be carried on such a bus showing the numbers referred to in paragraphs (g) and (h) and the manner in which those marks are to be carried;(j) regulating, in relation to the drivers of buses used by a grantee—(i) the maximum number of hours during which any such driver may be permitted to drive such a bus; and(ii) the intervals to be provided by a grantee for the rest and refreshment of such drivers,in any period specified in the regulations; (Amended 44 of 1984 s. 19)(k) generally for the purposes of this Ordinance.(2) The Chief Executive in Council may by regulation provide— (Amended 62 of 1999 s. 3)(a) that the contravention of any regulation made pursuant to subsection (1) is an offence; and(b) in respect of such offence, a penalty of a fine not exceeding level 2 and imprisonment not exceeding 6 months. (Added 66 of 1994 s. 4. Amended E.R. 1 of 2021) 36. By-laws (1) Subject to this Ordinance and its franchise, a grantee may make by-laws for all or any of the following matters—(a) the protection of property owned or controlled by the grantee from damage or injury;(b) the prevention of frauds on the grantee;(c) the safe and efficient operation of the grantee’s public bus service;(d) the procedure to be followed in case of accident;(e) generally as to the conduct of passengers while using the grantee’s buses and in particular (but without prejudice to the generality of the foregoing) for—(i)-(ii) (Repealed 44 of 1984 s. 20)(iii) requiring a passenger to declare, if so requested by the driver or conductor, the journey he intends to take or has taken in the bus and to pay the fare for the whole of that journey and to accept any ticket provided therefor; (Amended 75 of 1982 s. 114)(iv) requiring, on demand being made for the purpose by the driver or conductor or other person authorized by the grantee, production during the journey and surrender at the end of the journey by the holder thereof of any ticket issued to him;(v) requiring a passenger, if so requested by the driver or conductor, to leave the bus on the completion of the journey the fare for which he has paid; (Amended 75 of 1982 s. 114)(vi) requiring the surrender by the holder thereof on the expiry of the period for which it is issued of a ticket issued to him.(2) All by-laws made under subsection (1) shall be subject to the approval of the Legislative Council.(3) Any such by-laws may provide that a contravention of specified provisions thereof shall be an offence and may provide penalties therefor not exceeding a fine at level 1. (Amended E.R. 1 of 2021)(4) A grantee shall cause printed copies of all by-laws made under this section to be kept at its registered office and to be sold at a reasonable charge to any person applying therefor. 36A. Further powers in relation to regulations and by-laws (1) Any regulations made under section 35 or by-laws made under section 36 may—(a) require a passenger or intending passenger to comply with any reasonable direction given in the interests of public safety by a driver, conductor or authorized person;(b) authorize the removal from a bus of any person committing an offence against the regulations or by-laws, as the case may be, by the driver, the conductor or an authorized person, or by a police officer at the request of a driver, conductor or authorized person;(c) require any person whom a driver, conductor or authorized person has reasonable grounds to believe has committed an offence against the regulations or by-laws, as the case may be, to give his name and proof of his identity to the driver, conductor or authorized person;(d) authorize a driver, conductor or authorized person to arrest without a warrant and detain until he can be handed over to a police officer, any person whom he has reasonable grounds to believe has committed an offence under the regulations or by-laws, as the case may be.(2) Any such regulations or by-laws may—(a) authorize a police officer, to whom a person has been handed over under subsection (1)(d), to take such person into custody without a warrant; and(b) apply sections 51 and 52 of the Police Force Ordinance (Cap. 232) to persons taken into custody under the regulations or by-laws.(Added 88 of 1988 s. 5) 37. Power to amend Schedule The Chief Executive may, by order published in the Gazette, amend the Schedule.(Added 44 of 1984 s. 21. Amended 62 of 1999 s. 3) 38. Transitional For the avoidance of doubt it is hereby declared that, notwithstanding the provisions of a franchise, agreement or other document under or in pursuance of this Ordinance, which franchise, agreement or document is in existence at the commencement* of the Public Omnibus Services (Amendment) Ordinance 1984 (44 of 1984) (the amending Ordinance), the amendments to this Ordinance effected by the amending Ordinance shall apply to and in relation to such a franchise, agreement or document in the same manner and to the same extent as they would apply to a franchise, agreement or document granted or made after the commencement of the amending Ordinance.(44 of 1984 s. 22 incorporated) Editorial Note: * Commencement date: 29 June 1984. 39. Saving of existing regulations Any regulation made under this Ordinance—(a) whether in the exercise of the enabling powers in the Ordinance only or those and other enabling powers; and(b) which was in force immediately before the commencement* of the Public Bus Services (Amendment) Ordinance 1994 (66 of 1994) (the amending Ordinance),shall continue to be in force and have effect as if made by the authority who, having regard to the subject-matter of the regulation, is empowered to make that regulation on or after the commencement of the amending Ordinance and may be amended or revoked by such authority.(Added 66 of 1994 s. 5) Editorial Note: * Commencement date: 8 July 1994. Schedule [s. 12A]Contents of Programme (Schedule added 44 of 1984 s. 21) A programme of the operations of a grantee for the following 5 years prepared in any year under section 12A shall contain—(a) a bus route development programme, together with details of proposed changes to the routes operated, their frequency and vehicle allocation, on a monthly basis for the first 2 years of the programme and half yearly thereafter;(b) an estimate of the number and types of buses required in daily service to meet the requirements of the route development programme referred to in paragraph (a);(c) an estimate of the overall number of buses required to meet the daily public bus service requirements, with allowance being made for a reasonable proportion of the buses being unavailable for use in the operation of the service due to accidents, breakdowns or for any other reason;(d) a programme for the scrapping of buses that are or are likely to be unfit for use in the operation of the public bus service, and for the purchase or construction of additional buses for the replacement of buses that are to be scrapped or for the expansion of the fleet of buses for use in the operation of the service;(e) a programme for the provision and equipment of premises necessary for the construction, repair and maintenance of vehicles used by the grantee in connexion with its franchise and for the parking of all such vehicles when they are not in use;(f) a programme for the regular maintenance and servicing of all vehicles used by the grantee in connexion with its franchise;(g) a forecast of the financial implications of the adherence to the overall programme prepared under section 12A, including estimates of the timing and magnitude of any adjustments to fare levels that may be necessary;(h) any other matters, whether or not specified in paragraphs (a) to (g) inclusive, as may be required by the Commissioner by notice in writing to the grantee.