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Session 2010 - 12
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Report Stage Proceedings: 6 September 2011
763

Health and Social Care (Re-Committed) Bill, continued

65KB
Secretary of State’s response to regulator’s decision

(1)
Within the period of 30 working days beginning with the day on which

the Secretary of State receives the reports referred to in section 65KA(3),

the Secretary of State must decide whether the Secretary of State is

satisfied—

(a)
that the persons to which the NHS foundation trust in question

provides services under this Act have discharged their functions

for the purposes of this Chapter,

(b)
that the trust special administrator has carried out the

administration duties (within the meaning of section

65KA(1)(b)),

(c)
that the regulator has discharged its functions for the purposes of

this Chapter,

(d)
that the action recommended in the final report would secure the

continued provision of the services provided by the trust to

which the objective set out in section 65DA applies,

(e)
that the recommended action would secure the provision of

services that are of sufficient safety and quality to be provided

under this Act, and

(f)
that the recommended action would provide good value for

money.

(2)
If the Secretary of State is not satisfied as mentioned in subsection (1),

the Secretary of State must as soon as reasonably practicable—

(a)
give the trust special administrator a notice of the decision and of

the reasons for it;

(b)
give a copy of the notice to the regulator;

(c)
publish the notice;

(d)
lay a copy of it before Parliament.

65KC
Action following Secretary of State’s rejection of final report

(1)
Within the period of 20 working days beginning with the day on which

the trust special administrator receives a notice under section 65KB(2),

the administrator must provide to the regulator the final report varied so

far as the administrator considers necessary to secure that the Secretary

of State is satisfied as mentioned in section 65KB(1).

(2)
Where the administrator provides to the regulator a final report under

subsection (1), section 65KA applies in relation to the report as it applies

in relation to a final report under section 65I; and for that purpose, that

section has effect as if—

(a)
in subsection (1), for “20 working days” there were substituted

“10 working days”, and

(b)
subsection (3)(b) were omitted.

(3)
If the Secretary of State thinks that, in the circumstances, it is not

reasonable for the administrator to be required to carry out the duty under

subsection (1) within the period mentioned in that subsection, the

Secretary of State may by order extend the period.

(4)
If an order is made under subsection (3), the administrator must—

(a)
publish a notice stating the date on which the period will expire,

and

Report Stage Proceedings: 6 September 2011
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Health and Social Care (Re-Committed) Bill, continued

(b)
where the administrator is proposing to carry out consultation in

response to the notice under section 65KB(2), publish a

statement setting out the means by which the administrator will

consult during the extended period.

65KD
Secretary of State’s response to re-submitted final report

(1)
Within the period of 30 working days beginning with the day on which

the Secretary of State receives a final report under section 65KA(3) as

applied by section 65KC(2), the Secretary of State must decide whether

the Secretary of State is, in relation to the report, satisfied as to the

matters in 65KB(1)(a) to (f).

(2)
If the Secretary of State is not satisfied as mentioned in subsection (1),

the Secretary of State must as soon as reasonably practicable—

(a)
publish a notice of the decision and the reasons for it;

(b)
lay a copy of the notice before Parliament.

(3)
Where the Secretary of State publishes a notice under subsection (2)(a),

subsections (4) to (8) apply.

(4)
If the notice states that the Board has failed to discharge a function—

(a)
the Board is to be treated for the purposes of this Act as having

failed to discharge the function, and

(b)
the failure is to be treated for those purposes as significant (and

section 13Z1 applies accordingly).

(5)
If the notice states that a clinical commissioning group has failed to

discharge a function—

(a)
the group is to be treated for the purposes of this Act as having

failed to discharge the function,

(b)
the Secretary of State may exercise the functions of the Board

under section 14Z19(2), (3)(a) and (8)(a), and

(c)
the Board may not exercise any of its functions under section

14Z19.

(6)
Where, by virtue of subsection (5)(b), the Secretary of State exercises the

function of the Board under subsection (3)(a) of section 14Z19,

subsection (9)(a) of that section applies but with the substitution for the

references to the Board of references to the Secretary of State.

(7)
If the notice states that the trust special administrator has failed to

discharge the administration duties (within the meaning of section

65KA(1)(b))—

(a)
the administration duties are to be treated for the purposes of this

Act as functions of the regulator,

(b)
the regulator is to be treated for the purposes of this Act as having

failed to discharge those functions, and

(c)
the failure is to be treated for those purposes as significant (and

section 66 of the Health and Social Care Act 2011 applies

accordingly, but with the omission of subsection (3)).

(8)
If the notice states that the regulator has failed to discharge a function—

(a)
the regulator is to be treated for the purposes of this Act as having

failed to discharge the function, and

Report Stage Proceedings: 6 September 2011
765

Health and Social Care (Re-Committed) Bill, continued

(b)
the failure is to be treated for those purposes as significant (and

section 66 of the Health and Social Care Act 2011 applies

accordingly, but with the omission of subsection (3)).

(9)
Within the period of 60 working days beginning with the day on which

the Secretary of State publishes a notice under subsection (2)(a), the

Secretary of State must decide what action to take in relation to the trust.

(10)
The Secretary of State must as soon as reasonably practicable—

(a)
publish a notice of the decision and the reasons for it;

(b)
lay a copy of the notice before Parliament.”’.

Mr Secretary Lansley

Agreed to  206

Page  166,  line  8  [Clause  179],  leave out from ‘insert’ to ‘to’ in line 12 and insert

‘—

“(2A)
For the purposes of subsection (1) in its application to the case of an NHS

foundation trust, the reference to section 65K is to be read as a reference

to section 65KD(9); and this section also applies in the case of an NHS

foundation trust if—

(a)
the Secretary of State is satisfied as mentioned in section

65KB(1) or 65KD(1) in relation to the trust, and

(b)
the action recommended in the final report is to do something

other than dissolve the trust.

(2B)
For the purposes of subsection (2) in its application to the case of an NHS

foundation trust—

(a)
the reference to the Secretary of State is to be read as a

reference’.

Mr Secretary Lansley

Agreed to  207

Page  166,  line  23  [Clause  179],  at end insert—

‘( )
After that section insert—

“65LA
Trusts to be dissolved

(1)
This section applies if—

(a)
the Secretary of State is satisfied as mentioned in section

65KB(1) or 65KD(1), and

(b)
the action recommended in the final report is to dissolve the NHS

foundation trust in question.

(2)
This section also applies if the Secretary of State decides under section

65KD(9) to dissolve the NHS foundation trust in question.

(3)
The regulator may make an order—

(a)
dissolving the trust, and

(b)
transferring, or providing for the transfer of, the property and

liabilities of the trust—

(i)
to another NHS foundation trust or the Secretary of

State, or

Report Stage Proceedings: 6 September 2011
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Health and Social Care (Re-Committed) Bill, continued

(ii)
between another NHS foundation trust and the Secretary

of State.

(4)
An order under subsection (3) may include provision for the transfer of

employees of the trust.

(5)
The liabilities that may be transferred to an NHS foundation trust by

virtue of subsection (3)(b) include criminal liabilities.”

( )
For the cross-heading preceding section 65K substitute “Action by the Secretary

of State and the regulator”.’.

Mr Secretary Lansley

Agreed to  208

Page  166,  line  29  [Clause  180],  at end insert—

‘( )
In section 65N of that Act (power to issue guidance), after subsection (2) insert—

“(2A)
It must include guidance about the publication of—

(a)
notices under section 65KC(4)(a);

(b)
statements under section 65KC(4)(b).”’.

Mr Secretary Lansley

Agreed to  209

Page  166,  line  38  [Clause  180],  leave out ‘65K or 65L’ and insert ‘65L or 65LA’.

Mr Secretary Lansley

Agreed to  210

Page  166,  line  40  [Clause  180],  at end insert—

‘(ia)
a copy of any notice published under section 65F, 65H, 65J,

65KA, 65KB or 65KD,’.

Mr Secretary Lansley

Agreed to  211

Page  166  [Clause  180],  leave out line 42.

Mr Secretary Lansley

Agreed to  212

Page  167,  line  15  [Clause  180],  leave out ‘65K(4)’ and insert ‘65(KC)(3)’.

Mr Secretary Lansley

Agreed to  213

Page  167,  line  15  [Clause  180],  before ‘and’, insert—

‘( )
after “65L(2) or (4)” insert “65LA(3)”,’.

Mr Secretary Lansley

Agreed to  214

Page  167,  line  21  [Clause  180],  leave out ‘65K’ and insert ‘65LA’.

Mr Secretary Lansley

Agreed to  215

Page  167,  line  23  [Clause  180],  at end insert—



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