The Welsh government has announced a new franchising model will replace the current de-regulated system by enabling public, private or third sector operators to bid for packages of local bus services.
It will also lift the restrictions on existing publicly owned bus companies, putting them on an equal footing with other bus operators.
Its hoped that this will deliver a more customer focused, integrated network of services where decisions on routes, timetables and fares, will be made by Welsh Government, Transport for Wales and local councils, who will work collaboratively.
The Bill is expected to be introduced to the Senedd early next year and the rollout of a franchised model will be on regional basis.
This will start with South West Wales in 2027, North Wales in 2028, South in 2029 and Mid-Wales in 2030.
Cabinet secretary for Transport and North Wales, Ken Skates said: “Delivering a bus bill, which fundamentally changes the way bus services are delivered in Wales, is one of my key priorities.
“We know that buses are a lifeline for many people to get people to work, visit friends and family and gain access to services.
“The new franchising model will help us make better use of the significant funding the Welsh Government provides to the bus industry and will allow us to design a network that works for people and communities – alleviating transport poverty to create a fairer and more equal Wales.”