An Act to amend the Health Services Act 1997 to constitute local health districts and establish boards for such districts; to make consequential amendments to certain Acts and statutory rules; and for other purposes.
1 Name of Act
This Act is the Health Services Amendment (Local Health Districts and Boards) Act 2011.
2 Commencement
This Act commences on a day or days to be appointed by proclamation.
Schedule 1 Amendment of Health Services Act 1997 No 154
1.1 Principal amendments
[1] Section 17
Omit the section. Insert instead:17 Constitution of local health districts(1) There are constituted by this section such local health districts as are specified from time to time in column 1 of Schedule 1.(2) A local health district is a body corporate with the corporate name specified in column 1 of Schedule 1.
[2] Section 26
Omit the section. Insert instead:26 Constitution of local health district boards(1) A local health district board is to be established for each local health district.(2) A local health district board is to consist of 6 to 13 persons appointed by the Minister, selected in accordance with subsections (3) and (4).(3) The Minister is to select the membership of a local health district board so that the membership of the board has an appropriate mix of skills and expertise required to oversee and provide guidance to the district, including members who:(a) have expertise and experience in health management, business management and financial management, and(b) have expertise and experience in the provision of clinical and other health services, and(c) where appropriate, are representatives of universities, clinical schools or research centres, and(d) have knowledge and understanding of the community served by the district, and(e) have other backgrounds, skills, expertise, knowledge or experience appropriate for the district.(4) A local health district board is to have at least one member (who may also be one of the kinds of members referred to in subsection (3) (a)–(e)) who has expertise, knowledge or experience in relation to Aboriginal health.(5) A member of a local health district board holds office for such period (not exceeding 4 years) as may be specified in the member’s instrument of appointment.(6) A member whose term of office expires is eligible (if otherwise qualified) for re-appointment, but may not be appointed so as to hold office for more than 8 years in total (whether or not the appointments are consecutive).(7) One of the members of a local health district board is, by the relevant instrument of appointment or by a further instrument signed by the Minister, to be appointed as the chairperson of the board.(8) A member of a local health district board is entitled to be paid such remuneration (including travelling and subsistence allowances) as the Minister may from time to time determine in respect of the member.(9) Subject to this section, the constitution and procedure of a local health district board are to be as prescribed by the regulations.
[3] Section 41 Constitutions of statutory health corporations
Insert “specialty” before “network” in section 41 (3).
[4] Section 42 Amendment of Schedule 2 (Statutory health corporations)
Insert “specialty” before “network” wherever occurring in section 42 (a1).
[5] Section 52F
Omit the section. Insert instead:52F Boards of specialty network governed health corporations(1) A board is to be established for each specialty network governed health corporation.(2) The provisions of Division 2 of Part 2 of Chapter 3 (except section 26 (1)) apply in relation to a board of a specialty network governed health corporation in the same way as they apply to a local health district board, subject to the following modifications:(a) a reference in those provisions (however expressed) to a local health district board is to be read as if it were a reference to the board for a specialty network governed health corporation,(b) a reference in those provisions (however expressed) to a local health district is to be read as if it were a reference to a specialty network governed health corporation,(c) a reference in those provisions (however expressed) to the chief executive of a local health district is to be read as if it were a reference to the chief executive of a specialty network governed health corporation,(d) such other modifications as may be prescribed by the regulations.
[6] Schedule 1, heading
Omit “networks”. Insert instead “districts”.
[7] Schedule 1, Column 1
Omit “local health network” and “Network” wherever occurring.Insert instead “local health district” and “District”, respectively.
[8] Schedule 2 Statutory health corporations
Omit “Network” wherever occurring in column 2.Insert instead “Specialty network”.
[9] Schedule 7 Savings, transitional and other provisions
Insert at the end of clause 1 (1):
[10] Schedule 7
Insert after Part 7:Part 8 Provisions consequent on enactment of Health Services Amendment (Local Health Districts and Boards) Act 2011Division 1 Preliminary83 Interpretation(1) In this Part:amending Act means the Health Services Amendment (Local Health Districts and Boards) Act 2011.existing by-laws means any by-laws made (or taken to have been made) by an existing local health network that were in force immediately before the reconstitution day.existing local health network means a local health network in existence immediately before the reconstitution day.existing local health network governing council means a local health network governing council for an existing local health network in existence immediately before the reconstitution day.existing network governed health corporation means a network governed health corporation in existence immediately before the reconstitution day.initial local health district means a local health district constituted by this Act (as in force on the reconstitution day).instrument means an instrument (other than this Act or an instrument made under this Act) or any other document that creates, modifies or extinguishes rights or liabilities (or would do so if lodged, filed or registered in accordance with any law), and includes any judgment, order, process or other instrument issued by a court or tribunal.reconstitution day means the day on which section 17 is substituted by the amending Act.successor, in relation to an existing local health network, means an initial local health district having substantially the same name as the existing local health network.(2) For the purposes of the definition of successor in subclause (1), an initial local health district has substantially the same name as an existing local health network if the only difference between the corporate names of the district and network is the use of the word “District” instead of the word “Network”.Division 2 Dissolution and reconstitution of existing local health networks84 Dissolution of existing local health networks(1) On the reconstitution day:(a) each existing local health network is dissolved, and(b) each existing local health network governing council is dissolved, and(c) the members (including chairpersons and deputy chairpersons) of each existing local health network governing council cease to hold office as such, but are eligible (if otherwise qualified) to be appointed as members (including chairpersons and deputy chairpersons) of local health district boards, and(d) any person who ceases to be a member (including a chairperson or deputy chairperson) of an existing local health network governing council because of the operation of this clause is not entitled to any compensation for the loss of that office.(2) Subject to this Division, on the dissolution of an existing local health network, the network’s successor is taken for all purposes (including the rules of private international law) to be a continuation of and the same legal entity as the network.85 Constitution of initial local health districts(1) Each of the local health districts specified in Schedule 1 (as amended by the amending Act on the reconstitution day) is constituted as such on that day, subject to subclause (2).(2) Nothing in this clause prevents the amendment of Schedule 1 (whether on or after the reconstitution day) by an order made under section 19 or 20.86 Transfer of existing local health network’s undertaking to network’s successor(1) The following provisions have effect in relation to the assets, rights and liabilities of an existing local health network on its dissolution:(a) the assets of the network vest in the network’s successor by virtue of this clause and without the need for any further conveyance, transfer, assignment or assurance,(b) the rights or liabilities of the network become by virtue of this clause the rights or liabilities of the network’s successor,(c) all proceedings relating to the assets, rights or liabilities commenced before the network’s dissolution by or against the network or a predecessor of the network and pending immediately before the network’s dissolution are taken to be proceedings pending by or against the network’s successor,(d) any act, matter or thing done or omitted to be done in relation to the assets, rights or liabilities before the network’s dissolution by, to or in respect of the network is (to the extent to which that act, matter or thing has any force or effect) taken to have been done or omitted by, to or in respect of the network’s successor,(e) the network’s successor has all the entitlements and obligations of the network in relation to those assets, rights and liabilities that the network would have had but for its dissolution, whether or not those entitlements and obligations were actual or potential at the time the dissolution took effect.(2) Without limiting subclause (1):(a) any agreement between an existing local health network and any person that was in force (or taken to be in force) immediately before the dissolution of the network is taken on and from that dissolution to have been entered into between the network’s successor and the person, and(b) any delegation given (or taken to have been given) by an existing local health network in force immediately before the dissolution of that network is taken on and from that dissolution to have been given by the network’s successor.(3) The operation of this clause is not to be regarded:(a) as a breach of contract or confidence or otherwise as a civil wrong, or(b) as a breach of any contractual provision prohibiting, restricting or regulating the assignment or transfer of assets, rights or liabilities, or(c) as giving rise to any remedy by a party to an instrument, or as causing or permitting the termination of any instrument, because of a change in the beneficial or legal ownership of any asset, right or liability, or(d) as an event of default under any contract or other instrument.(4) No attornment to an existing local health network’s successor by a lessee from the network is required.(5) No compensation is payable to any person or body in connection with the transfer of any asset, right or liability by operation of this clause.(6) State tax is not payable in relation to:(a) an exempt matter, or(b) anything done because of, or for a purpose connected with or arising out of, an exempt matter.(7) The Minister may, by notice in writing, confirm that particular assets, rights or liabilities have become the assets, rights or liabilities of an initial local health district by operation of this clause. Such a notice is conclusive evidence of that fact.(8) In this clause:exempt matter means any of the following:(a) the transfer of any assets, rights or liabilities by operation of this clause (including, without limitation, any instrument executed only for a purpose ancillary to or consequential on the operation of this clause),(b) anything certified by the Minister in writing as having been done in consequence of such a transfer (for example, the transfer or registration of an interest in land).State tax means application or registration fees, duty or any other tax, fee or charge imposed by any legislation or other law of the State.87 Existing chief executives continue in officeOn the reconstitution day, any person holding office as a chief executive of an existing local health network immediately before its dissolution is taken to have been appointed as the chief executive of the network’s successor for the balance of his or her term of office as the chief executive of the local health network, unless the person vacates office before the expiry of the balance of that term.88 Continuation of existing by-laws(1) Subject to the regulations, the existing by-laws of an existing local health network continue in force on and from the reconstitution day as by-laws of the network’s successor (with such modifications as are necessary or prescribed by the regulations) until by-laws are made by the successor.(2) Subject to the regulations, any committee, subcommittee or council established (or taken to have been established or continued in existence) under the existing by-laws of an existing local health network continues in existence as a committee, subcommittee or council of the network’s successor until such time as a replacement committee, subcommittee or council is established under the successor’s by-laws.(3) The continuation of an existing committee, subcommittee or council by operation of this clause does not alter or otherwise affect the existing membership or functions of the committee, subcommittee or council.89 Continuation of existing approved quality assurance committees(1) Subject to the regulations, each of the committees declared (or taken to have been declared) as an approved quality assurance committee under section 20E of the Health Administration Act 1982 in relation to any local health network that is in existence immediately before the reconstitution day is taken on and from that day to be an approved quality assurance committee of the network’s successor.(2) The continuation of an approved quality assurance committee by operation of this clause does not alter or otherwise affect the existing membership or functions of the committee.90 Updating of references to local health networks and their governing councils(1) Subject to the regulations:(a) a reference in any other Act or instrument made under any other Act or in any instrument of any kind to a local health network constituted under this Act (other than a particular local health network) is to be read on and from the reconstitution day as being a reference to a local health district constituted under this Act, and(b) a reference in any other Act or instrument made under any other Act or in any instrument of any kind to a particular local health network is to be read on and from the reconstitution day as being a reference to the network’s successor, and(c) a reference in any other Act or instrument made under any other Act or in any instrument of any kind to a local health network governing council established under this Act (other than a local health network governing council of a particular local health network) is to be read on and from the reconstitution day as being a reference to a local health district board established under this Act, and(d) a reference in any other Act or instrument made under any other Act or in any instrument of any kind to a local health network governing council for a particular local health network is to be read on and from the reconstitution day as being a reference to the local health district board for the network’s successor.(2) Subclause (1) does not apply in relation to clause 38 of the Children (Criminal Proceedings) Regulation 2005 or such other references as may be prescribed by the regulations.Division 3 Miscellaneous91 Change in corporate governance of existing network governed health corporations(1) On the conversion day:(a) the governance of each existing network governed health corporation changes to specialty network governance and, accordingly, the corporation becomes a specialty network governed health corporation within the meaning of this Act, and(b) each governing council for an existing network governed health corporation is dissolved, and(c) the members (including chairpersons and deputy chairpersons) of each governing council for an existing network governed health corporation cease to hold office as such, but are eligible (if otherwise qualified) to be appointed as members (including chairpersons and deputy chairpersons) of the boards for specialty network governed health corporations, and(d) any person who ceases to be a member (including a chairperson or deputy chairperson) of a governing council for an existing network governed health corporation because of the operation of this clause is not entitled to any compensation for the loss of that office.(2) Without limiting clause 1, the regulations may make provision for or with respect to the re-appointment of existing council members of the SCHN to the new board of the SCHN.Note—The SCHN becomes a specialty network governed health corporation on the conversion day by operation of subclause (1) (a).(3) Any regulation made for the purposes of subclause (2) has effect despite anything to the contrary in subclause (1) or in Division 2 of Part 2 of Chapter 3 (as applied to specialty network governed health corporations by section 52F), including in relation to the maximum number of members for the board of a specialty network governed health corporation.(4) A change in the governance of an existing network governed health corporation that is effected by operation of this clause does not operate:(a) to create a new legal entity, or(b) to prejudice or affect the identity of the body corporate constituted as the health corporation or its continuity as a body corporate, or(c) to affect the property, or the rights or obligations, of the health corporation, or(d) to render defective any legal proceedings by or against the health corporation, or(e) to affect the appointment of the chief executive of the health corporation.(5) In this clause:conversion day means the day on which Schedule 1.1 [3] to the amending Act commences.existing council member of the SCHN means a person who is a member (including the chairperson or deputy chairperson) of the governing council of the SCHN immediately before the conversion day.SCHN means the statutory health corporation with the corporate name “The Sydney Children’s Hospitals Network (Randwick and Westmead) (incorporating The Royal Alexandra Hospital for Children)”.92 Status of local health districts and specialty network governed health corporations for purposes of NHHN AgreementIt is declared that each local health district and specialty network governed health corporation constituted under this Act is intended to operate as a local hospital network of the kind referred to in the NHHN Agreement.93 RegulationsWithout limiting clause 1, the regulations may make provision for or with respect to the following:(a) the updating of references in any other Acts or instruments made under any other Acts or in any instruments of any kind to local health networks, local health network governing councils, network governed health corporations or governing councils of network governed health corporations,(b) the application (whether with or without modifications) of the by-laws of existing local health networks to local health districts,(c) the continuation of committees declared (or taken to have been declared) as approved quality assurance committees under section 20E of the Health Administration Act 1982 and of committees, subcommittees and councils established (or taken to be established or continued in existence) under existing by-laws.
[11] Dictionary
Omit the definitions of local health network, local health network governing council and network governed health corporation from Part 1.Insert in alphabetical order:local health district—see section 8.local health district board means a local health district board for a local health district established under section 26.specialty network governed health corporation means a statutory health corporation that, as specified in Schedule 2, is specialty network governed.
1.2 Related amendments updating references and other minor amendments
[1] The whole Act (except sections 4 (a) and (c1), 41 and 62B, Schedules 2, 6 and 7 and the definition of “NHHN Agreement” in Part 1 of the Dictionary and except as otherwise amended by this Act)
Omit each term or expression specified in Column 1 of the following Table wherever occurring (including definitions, headings and notes) and regardless of capitalisation.Insert instead the term or expression specified in Column 2 opposite the term or expression specified in Column 1 with capitalisation that corresponds to that of the omitted term or expression:Table
[2] Section 4 Objects of Act
Omit “local health networks” from section 4 (a).Insert instead “local health districts”.
[3] Section 30 Combined management or assistance in management of public hospitals, health institutions, health services or health support services
Omit “non-area” wherever occurring in section 30 (1), (2) and (4).Insert instead “non-district”.
[4] Section 30 (5), definition of “non-area health organisation”
Omit “non-area”. Insert instead “non-district”.
[5] Section 133B Personal liability of members of boards of statutory health organisations
Omit “or governing council” wherever occurring in section 133B (b) and (c).
[6] Section 133B (d)
Omit “organisation, board or governing council”.Insert instead “organisation or board”.
[7] Section 136 Proof of certain matters not required
Omit “board, governing council or governing body” wherever occurring.Insert instead “board or governing body”.
[8] Section 140 Regulations
Insert after section 140 (2) (m):(n) the updating of any reference in any Act, in any instrument made under any Act or in any document of any kind to any public health organisation (or to any officer, body or function of the organisation) that is (or will become) out of date or otherwise incorrect because of the dissolution, amalgamation, change in governance or renaming of the organisation or the transfer of any of its functions, assets, rights or liabilities.
[9] Schedule 4 Transfers, dissolutions, amalgamations and changes of name or nature of governance
Omit “or governing council of the corporation (as the case requires)” wherever occurring in clause 4 (1) (b) and (2) (b).Insert instead “of the corporation”.
[10] Schedule 4, clause 4 (3) (b)
Omit “or the governing council of a network governed health corporation”.Insert instead “or a specialty network governed health corporation”.
[11] Schedule 4, clauses 4 (3) (b) (i), (4A) and (4B) and 16 (1)
Omit “or governing council” wherever occurring.
[12] Schedule 4, clause 4 (4A) and (4B)
Insert “specialty” before “network governance” wherever occurring.
[13] Schedule 4, clause 10 (1) (e)
Insert “subject to the regulations,” before “a reference” where firstly occurring.
[14] Dictionary
Insert “, and includes any agreement that replaces or supersedes that Agreement” after “in force from time to time” in the definition of NHHN Agreement in Part 1.
Schedule 2 Consequential amendment of other Acts and statutory rules
[1] Dictionary
Omit “network” and “the service” from paragraph (b) of the definition of designated person.Insert instead “district” and “the district”, respectively.
[2] Dictionary, definition of “hospital”
Omit “network” from paragraph (a) of the definition. Insert instead “district”.
Section 4 Definitions
Omit “network” from paragraph (b) of the definition of public sector agency.Insert instead “district”.
Section 7 Constitution of the Board
Omit “Central Sydney Area Health Service” from section 7 (3) (c).Insert instead “Sydney Local Health District”.
Schedule 1 Scheduled agencies
Omit “network” from the matter relating to a local health network.Insert instead “district”.
Section 30 Director-General’s investigations and assessment
Omit “network” from the note to the section. Insert instead “district”.
[1] Clause 21 Constitution of Coordination Groups
Omit “network” wherever occurring in clause 21 (1) (d).Insert instead “district”.
[2] Clause 28A Evaluation and monitoring of scheme
Omit “network” from paragraph (c) of the definition of participating State agency in clause 28A (2).Insert instead “district”.
[3] Clause 38 Savings and transitional provisions
Insert after clause 38 (2A):(2B) The amendment made to clause 21 (1) by the Health Services Amendment (Local Health Districts and Boards) Act 2011 does not affect the continued validity of any nomination made for a local health network under clause 21 (1) (d) before the commencement of that amendment.
Clause 206 Provision of information relating to offenders
Omit “network” from clause 206 (1) (a). Insert instead “district”.
Clause 6 Responsible persons
Omit “Sydney West Area Health Service”.Insert instead “Health Reform Transitional Organisation Western”.
[1] Clause 10 Provision of information to Drug Court
Omit “Networks” from clause 10 (1) (a). Insert instead “Districts”.
[2] Clause 10 (1) (b)
Omit “Northern Sydney and Central Coast Area Health Service”.Insert instead “Health Reform Transitional Organisation Northern”.
[1] Clause 37 Threshold increase applications—consultation requirements
Omit “network” from clause 37 (2) (d). Insert instead “district”.
[2] Clause 41 Consultation and advertising requirements
Omit “network” from clause 41 (2) (b) (ii). Insert instead “district”.
[1] Section 3 Definitions
Omit “network” from paragraph (a) (v) of the definition of exempt premises in section 3 (1).Insert instead “district”.
[2] Section 45AA Tribunal may approve clinical trials
Omit “network” from paragraph (b) (i) of the definition of ethics committee in section 45AA (5).Insert instead “district”.
[1] Section 4 Definitions
Omit the definition of local health network from section 4 (1).Insert instead:local health district means a local health district constituted under the Health Services Act 1997.
[2] Section 20L Definitions
Omit “network” from paragraph (a) of the definition of relevant health services organisation.Insert instead “district”.
Schedule 1 Modification of Health Practitioner Regulation National Law
Omit “network” wherever occurring in clauses 6 (2) (i), 7 (2) (a), 8 (2) (a) and 9 (2) (a) of Schedule 5C of the modifications to the Health Practitioner Regulation National Law set out in Schedule 1 [25].Insert instead “district”.
Clause 5 Certain public sector agencies to be treated as a single agency
Omit “networks” from clause 5 (c). Insert instead “districts”.
[1] Clause 12 Local health district descriptions
Omit “Network” wherever occurring. Insert instead “District”.
[2] Schedule 1, heading
Omit “network governing councils”. Insert instead “district boards”.
[3] Schedule 1
Omit “network” and “network’s” wherever occurring (except as otherwise amended by this Subschedule).Insert instead “district” and “district’s”, respectively.
[4] Schedule 1, clause 1
Omit the definition of Governing Council.Insert in alphabetical order:Board means the local health district board for a local health district.
[5] Schedule 1
Omit “Governing Council”, “Governing Council’s” and “the Council” wherever occurring (except as otherwise amended by this Subschedule).Insert instead “Board”, “Board’s” and “the Board”, respectively.
Clause 19 Principal officers of public authorities
Omit “network” wherever occurring in clause 19 (1) (b).Insert instead “district”.
Section 2 Definitions
Omit “network” from paragraph (b) of the definition of Institution in section 2 (1).Insert instead “district”.
Section 556 What land is exempt from all rates, other than water supply special rates and sewerage special rates?
Omit “network” from section 556 (1) (k). Insert instead “district”.
Schedule 1 Alcohol and drug use—random breath testing and related matters
Omit “network” from paragraph (a) of the definition of hospital in clause 1 (1).Insert instead “district”.
Section 162A Tribunal may request information or services from other agencies
Omit “network” from section 162A (1). Insert instead “district”.
Section 76J Exchange of information
Omit “network” from paragraph (a) of the definition of associated agency in section 76J (6).Insert instead “district”.
Section 39A Definitions
Omit “network” from paragraph (a) of the definition of public hospital in section 39A (1).Insert instead “district”.
Section 24 Interpretation
Omit “network” from paragraph (a) of the definition of Public hospital in section 24 (1).Insert instead “district”.
Section 123 Proceedings against successors of government corporations
Omit “network” from section 123 (1) (c). Insert instead “district”.
Section 25A Definitions
Omit “network” from paragraph (b) of the definition of designated government agency in section 25A (1).Insert instead “district”.
Clause 3 Definitions
Omit “Sydney West Area Health Service” from paragraph (a) of the definition of approved laboratory in clause 3 (1).Insert instead “Health Reform Transitional Organisation Western”.
Schedule 2 NSW specific provisions
Omit “networks” and “network” wherever occurring in clause 8 (including the heading).Insert instead “districts” and “district”, respectively.
[1] Schedule 1 Definitions of “authority” and “controlled entity”
Omit “network” from the matter relating to a local health network in Part 1.Insert instead “district”.
[2] Schedule 2 Authorities having Part 2 investment powers
Omit “Northern Sydney and Central Coast Area Health Service”, “Sydney South West Area Health Service” and “Sydney West Area Health Service”.Insert in alphabetical order:Central Coast Local Health DistrictNepean Blue Mountains Local Health DistrictNorthern Sydney Local Health DistrictSouth Western Sydney Local Health DistrictSydney Local Health DistrictWestern Sydney Local Health District
Schedule 1 Prescribed audits
Omit “networks” from item 19B in Part 1. Insert instead “districts”.
Clause 9 Board may arrange supply or disposal for other public bodies
Omit “network” from paragraph (b) of the definition of public body in clause 9 (5).Insert instead “district”.
Clause 3 Definitions
Omit “Western Sydney Area Health Service” from paragraph (a) of the definition of approved laboratory in clause 3 (1).Insert instead “Health Reform Transitional Organisation Western”.
Dictionary
Omit “network” from paragraph (a) of the definition of hospital in clause 1.Insert instead “district”.
[1] Clause 129 Analysis of oral fluid, blood and urine samples—prescribed laboratory
Omit “Western Sydney Area Health Service”.Insert instead “Health Reform Transitional Organisation Western”.
[2] Schedule 3 Declared organisations
Omit “Hunter New England Area Health Service” from Column 1.Insert instead “Hunter New England Local Health District”.
[3] Schedule 3, Column 1
Omit “Western Sydney Area Health Service”.Insert instead “Western Sydney Local Health District”.
Section 3 Definitions
Omit “network” from paragraph (a) of the definition of hospital in section 3 (1).Insert instead “district”.
[1] Section 9A Dame Eadith Walker Hospital
Omit “Central Sydney Area Health Service” from section 9A (3).Insert instead “Sydney Local Health District”.
[2] Section 19B Lease or licence of trust land
Omit “Central Sydney Area Health Service” wherever occurring in section 19B (1) and (5).Insert instead “Sydney Local Health District”.
[3] Section 19C Validation
Omit “Central Sydney Area Health Service” from section 19C (1).Insert instead “Sydney Local Health District”.
Schedule 4 Land exempt from water supply authority service charges
Omit “network” wherever occurring in item (6). Insert instead “district”.
Section 59 Definitions
Omit “network” from paragraph (a) of the definition of public hospital.Insert instead “district”.