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Health and Social Care BillPage 170

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
5applies 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) 10If 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) 15publish a notice stating the date on which the period will expire,
and

(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
20consult 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
25the 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) 30lay 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
35failed 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) 40the 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
4514Z19.

(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,

Health and Social Care BillPage 171

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
565KA(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) 10the failure is to be treated for those purposes as significant (and
section 67 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
15having failed to discharge the function, and

(b) the failure is to be treated for those purposes as significant (and
section 67 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
20the 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) 25lay a copy of the notice before Parliament.

(3) In section 65L of that Act (trusts coming out of administration), after subsection
(2) 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
30reference 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
35other 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
to the regulator, and

(b) 40the reference to the chairman and directors of the trust is to be
read as including a reference to the governors.

(4) Omit subsections (3) to (5) of that section.

(5) At the end of that section insert—

(6) Subsection (7) applies in the case of an NHS foundation trust.

(7) 45If it appears to the regulator to be necessary in order to comply with
Schedule 7, the regulator may by order—

Health and Social Care BillPage 172

(a) terminate the office of any governor or of any executive or non-
executive director of the trust;

(b) appoint a person to be a governor or an executive or non-
executive director of the trust.

(6) 5After 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) 10the 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) 15dissolving 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

(ii) 20between 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
25virtue of subsection (3)(b) include criminal liabilities.

(7) For the cross-heading preceding section 65K substitute “Action by the
Secretary of State and the regulator”.

175 Sections 171 to 174: supplementary

(1) At the end of section 65M of the National Health Service Act 2006 (replacement
30of trust special administrator) insert—

(3) For the purposes of this section in its application to the case of an NHS
foundation trust, the references to the Secretary of State are to be read
as references to the regulator.

(2) In section 65N of that Act (power to issue guidance), after subsection (2)
35insert—

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

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

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

(3) At the end of section 65N of that Act (power to issue guidance) insert—

(4) 40For the purposes of this section in its application to cases of NHS
foundation trusts, the reference in subsection (1) to the Secretary of
State is to be read as a reference to the regulator.

Health and Social Care BillPage 173

(4) In section 65O of that Act (interpretation of Chapter 5A), in the definition of
“trust special administrator”, after “65B(6)(a)” insert “, section 65D(2)”.

(5) In section 39 of that Act (register of NHS foundation trusts), in subsection (2),
at the end insert ,

(g) 5a copy of any order made under section 65D, 65J, 65K, 65L or
65LA,

(h) a copy of any report laid under section 65D,

(i) a copy of any draft report published under section 65F,

(j) a copy of any notice published under section 65F, 65H, 65J,
1065KA, 65KB or 65KD,

(k) a copy of any statement under section 65G,

(l) a copy of any final report published under section 65I,

(m) a copy of any statement published under section 65J,

(n) a copy of any information published under section 65M.

(6) 15In section 272 of that Act (orders etc.), in subsection (5), in paragraph (ab)—

(a) after “65B(1),” insert “65D(2),”,

(b) omit “65E(1),”,

(c) after “65J(2),” insert “65K(4),”, and

(d) for “(5)” substitute “(7)”.

(7) 20After subsection (6) insert—

(6ZA) The Statutory Instruments Act 1946 applies in relation to the power of
the regulator to make an order under Chapter 5A as if the regulator
were a Minister of the Crown.

(8) In subsection (6A) of that section—

(a) 25after “65B(1),” insert “65D(2),”,

(b) omit “65E(1),”,

(c) after “65J(2),” insert “65(KC)(3),”,

(d) after “65L(2) or (4)” insert “65LA(3)”, and

(e) for “(4)” substitute “(7)”.

(9) 30In section 275(1) of that Act (interpretation), in the definition of “NHS trust”,
omit the words from “and” to the end.

(10) In paragraph 22(1) of Schedule 7 to that Act (documents which must be made
available to the public free of charge), at the end insert ,

(g) a copy of any order made under section 65D, 65J, 65K, 65LA
35or 65L,

(h) a copy of any report laid under section 65D,

(i) a copy of any draft report published under section 65F,

(j) a copy of any notice published under section 65F, 65H, 65J,
65KA, 65KB or 65KD,

(k) 40a copy of any statement under section 65G,

(l) a copy of any final report published under section 65I,

(m) a copy of any statement published under section 65J,

(n) a copy of any information published under section 65M.

(11) In section 206(1) of the National Health Service (Wales) Act 2006, in the
45definition of “NHS trust”, omit the words from “(including” to the end.

Health and Social Care BillPage 174

Abolition of NHS trusts

176 Abolition of NHS trusts in England

(1) The NHS trusts established under section 25 of the National Health Service Act
2006 are abolished.

(2) 5Chapter 3 of Part 2 of that Act (NHS trusts) is repealed.

(3) Where arrangements (“franchise arrangements”) under which a person
exercises (or is to exercise) the main functions of an NHS trust on behalf of the
trust are in force immediately before the commencement of this section, the
trust is to continue after that commencement to be constituted as an NHS trust
10until—

(a) it is dissolved or becomes, merges with or is acquired by an NHS
foundation trust,

(b) where none of those events occurs before the end of the period of three
years beginning with the day on which the franchise arrangements
15come to an end, the end of that period, or

(c) where other franchise arrangements come into force before the end of
that period, the end of the period of three years beginning with the day
on which those other franchise arrangements or any subsequent
franchise arrangements come to an end.

(4) 20In subsection (3)(c), the reference to subsequent franchise arrangements is a
reference to franchise arrangements which come into force before the end of
the period of three years beginning with the day on which the preceding
franchise arrangements come to an end.

(5) For the purposes of subsection (3)—

(a) 25Chapter 3 of Part 2 of the National Health Service Act 2006 is, despite
subsection (2), to continue to have effect,

(b) the amendments made by Schedule 14 are not to have effect (and
subsection (6) is to be read accordingly), and

(c) the amendments made by paragraph 9 of Schedule 22 are not to have
30effect (and section 291 is to be read accordingly).

(6) Schedule 14 (which contains consequential amendments) has effect.

177 Repeal of provisions on authorisation for NHS foundation trusts

(1) Omit section 33 of the National Health Service Act 2006 (application by NHS
trust for authorisation).

(2) 35Omit section 35 of that Act (authorisation of NHS foundation trust).

(3) Omit section 36(1), (3) and (4) of that Act (NHS trust to become NHS
foundation trust on being given authorisation but retain liabilities); in
consequence of that, omit section 87 of this Act (licences to provide health care
services: NHS foundation trusts).

(4) 40For the title to section 36 of that Act substitute “Status etc. of NHS foundation
trusts”.

(5) For the cross-heading preceding section 33 of that Act substitute “Status etc. of
NHS foundation trusts”.

Health and Social Care BillPage 175

(6) Omit paragraph 19 of Schedule 7 to that Act and the preceding cross-heading
(initial directors of former NHS trust).

(7) Despite the preceding provisions of this section, sections 33, 35 and 36(1), (3)
and (4) of, and paragraph 19 of Schedule 7 to, that Act, and section 87(1) and
5(2) of this Act, continue to have effect in the case of an NHS trust continuing in
existence by virtue of section 176(5).

(8) The repeal by subsection (3) of section 36(4) of that Act does not affect the
continuity of anything continuing by virtue of that provision immediately
before the commencement of this section.

10Part 5 Public involvement and local government

CHAPTER 1 Public involvement

Healthwatch England

178 Healthwatch England

(1) 15The Health and Social Care Act 2008 is amended as follows.

(2) In Schedule 1 (the Care Quality Commission: constitution, etc.), in paragraph
6, after sub-paragraph (1) insert—

(1A) A committee of the Commission known as “the Healthwatch
England committee” is to be appointed in accordance with
20regulations.

(1B) The purpose of the Healthwatch England committee is to provide the
Commission or other persons with advice, information or other
assistance in accordance with provision made by or under this or any
other Act.

(1C) 25The provision that may be made by virtue of sub-paragraph (1A)
includes provision as to—

(a) the removal or suspension of members of the committee;

(b) the payment of remuneration and allowances to members.

(3) In sub-paragraph (4) of that paragraph, after “advisory committee” insert “, the
30Healthwatch England committee”.

(4) In Chapter 3 of Part 1 (quality of health and social care), before section 46 and
the preceding cross-heading insert—

Advice given by Healthwatch England
45A Functions to be exercised by Healthwatch England

(1) 35The Commission has the functions set out in subsections (2) and (3), but
must arrange for the Healthwatch England committee to exercise the
functions on its behalf.

Health and Social Care BillPage 176

(2) The function in this subsection is to provide Local Healthwatch
organisations with advice on and assistance in relation to—

(a) the making of arrangements under or in pursuance of section
221(1) of the Local Government and Public Involvement in
5Health Act 2007 (local care services);

(b) the carrying on by the organisations of activities specified in
section 221(2) of that Act.

(3) The function in this subsection is to provide the persons mentioned in
subsection (4) with information and advice on—

(a) 10the views of people who use health or social care services and of
other members of the public on their needs for and experiences
of health and social care services, and

(b) the views of Local Healthwatch organisations and of other
persons on the standard of provision of health and social care
15services and on whether or how the standard could or should
be improved.

(4) The persons referred to in subsection (3) are—

(a) the Secretary of State;

(b) the National Health Service Commissioning Board;

(c) 20Monitor;

(d) English local authorities.

(5) A person provided with advice under subsection (3) must inform the
Healthwatch England committee in writing of its response or proposed
response to the advice.

(6) 25The Healthwatch England committee may provide the Commission
with information and advice on the matters mentioned in subsection
(3)(a) and (b); and the Commission must inform the committee in
writing of its response or proposed response to the advice.

(7) The Commission must publish details of arrangements it makes under
30subsection (1) (including details of payments of remuneration or other
amounts); and inclusion of the details in a report under section 83 is not
to be regarded as a discharge of the duty imposed by this subsection.

(8) In performing functions under this section, the Healthwatch England
committee must have regard to such aspects of government policy as
35the Secretary of State may direct.

45B Reports

(1) As soon as possible after the end of each financial year, the
Healthwatch England committee—

(a) must make a report to the Commission (whether or not in
40writing) on the matters mentioned in section 45A(3)(a) and (b),
and

(b) must publish a report on the way in which it has exercised
during the year the functions exercisable by it.

(2) The committee must—

(a) 45lay before Parliament a copy of each report made under
subsection (1)(b), and

(b) send a copy of each such report to the Secretary of State.

Health and Social Care BillPage 177

(3) The committee may publish other reports at such times, and on such
matters relating to health or social care, as it thinks appropriate.

(4) Before publishing a report under subsection (1)(b) or (3), the committee
must, so far as practicable, exclude any matter which relates to the
5private affairs of an individual the publication of which, in the
committee’s opinion, would or might seriously and prejudicially affect
that individual’s interests.

(5) In this section, “financial year” means—

(a) the period beginning with the date on which the committee is
10appointed and ending with the following 31 March, and

(b) each successive period of 12 months ending with 31 March.

(5) In section 82 (failure by Commission to discharge functions), after subsection
(1) insert—

(1A) The Secretary of State may give a direction to the Healthwatch England
15committee if the Secretary of State considers that the committee—

(a) is failing or has failed to discharge a function under section 45A
or any other function it is required to discharge, or

(b) is failing or has failed properly to discharge a function under
that section or any other function it is required to discharge,

20and that the failure is significant.

(6) In subsection (2) of that section—

(a) after “(1)” insert “or (1A)”, and

(b) after “the Commission” insert “or (as the case may be) the committee”.

(7) In subsection (2A) of that section (inserted by section 288), after “(1)” insert “or
25(1A)”.

(8) In subsection (3) of that section—

(a) after “the Commission” insert “or the committee”, and

(b) after “(1)” insert “or (1A)”.

(9) In subsection (4) of that section (inserted by section 288), after “(1)” insert “,
30(1A)”.

(10) For the title to that section substitute “Failure by the Commission or
Healthwatch England in discharge of functions”.

(11) In section 83 (reports for each financial year etc), after subsection (1) insert—

(1A) The reference in subsection (1)(a) to the Commission’s functions does
35not include a reference to its functions under section 45A.

(12) After subsection (2) of that section insert—

(2A) The reports under subsection (1)(b) and (c) must, in particular, set out
(and identify as such) the contents of the report made by the
Healthwatch England committee under section 45B(1)(a) in respect of
40the year concerned.

(13) In each of the following provisions, at the end of the entry for the Care Quality
Commission insert “and the Healthwatch England committee”—

(a) Part 2 of Schedule 1 to the Public Records Act 1958,

Health and Social Care BillPage 178

(b) Part 2 of Schedule 1 to the House of Commons Disqualification Act
1975,

(c) Part 2 of Schedule 1 to the Northern Ireland Assembly Disqualification
Act 1975.

(14) 5Where the Healthwatch England committee does not consist of or include all
the members of the Care Quality Commission, the committee is nonetheless to
be treated as doing so for the purposes of section 2(1) of the Public Bodies
(Admission to Meetings) Act 1960.

Local Healthwatch organisations

179 10Establishment and constitution

(1) Part 14 of the Local Government and Public Involvement in Health Act 2007
(patient and public involvement in health and social care) is amended as
follows.

(2) For the cross-heading preceding section 221 substitute “Local Healthwatch
15organisations”.

(3) Before that section (but after that cross-heading) insert—

220A Local Healthwatch organisations

(1) There is to be a  body known as a Local Healthwatch organisation for
the area of each local authority, the main purpose of which is to carry
20on activities in that area in accordance with this Part.

(2) Schedule 16A (further provision about Local Healthwatch
organisations) has effect.

(4) In section 229 (sections 221 to 228: interpretation and supplementary)—

(a) in the title and in subsection (1), for “221” substitute “220A”, and

(b) 25in subsection (2), after “228” insert “or Schedule 16A”.

(5) After Schedule 16, insert the Schedule 16A set out in Schedule 15 to this Act.

(6) In the Schedule to the Public Bodies (Admission to Meetings) Act 1960, after
paragraph (bk) (as inserted by paragraph 2 of Schedule 13) insert—

(bl) Local Healthwatch organisations;.

(7) 30In Part 2 of Schedule 1 to the House of Commons Disqualification Act 1975, at
the appropriate place insert—

(8) In Part 2 of Schedule 1 to the Northern Ireland Assembly Disqualification Act
1975, at the appropriate place insert—

(9) In Part 2 of Schedule 1 to the Freedom of Information Act 2000 (local
government), after paragraph 35C insert—

35D A Local Healthwatch organisation.

(10) In section 65H of the National Health Service Act 2006 (de-authorisation of
40NHS foundation trusts: consultation requirements), in subsection (8)(e)—

(a) before “in pursuance of” insert “under or”, and

Health and Social Care BillPage 179

(b) for “local involvement networks” substitute “Local Healthwatch
organisations”.

(11) In section 4 of the Health and Social Care Act 2008 (matters to which the Care
Quality Commission must have regard)—

(a) 5in subsection (1)(c), for “local involvement networks” substitute “Local
Healthwatch organisations”, and

(b) omit subsection (3).

(12) In Part 1 of Schedule 19 to the Equality Act 2010 (bodies subject to public sector
equality duty), after the entry for the Health Service Commissioner for
10England insert—

180 Activities relating to local care services

(1) Section 221 of the Local Government and Public Involvement in Health Act
2007 (health services and social services) is amended as follows.

(2) 15In subsection (2), omit the “and” preceding paragraph (d).

(3) At the end of that paragraph, insert “and to the Healthwatch England
committee of the Care Quality Commission.”

(4) After that paragraph insert—

(e) providing advice and information about access to local care
20services and about choices that may be made with respect to
aspects of those services;

(f) reaching views on the matters mentioned in subsection (3) and
making those views known to the Healthwatch England
committee of the Care Quality Commission;

(g) 25making recommendations to that committee to advise the
Commission about special reviews or investigations to conduct
(or, where the circumstances justify doing so, making such
recommendations direct to the Commission); and

(h) giving that committee such assistance as it may require to
30enable it to carry out its functions effectively, efficiently and
economically.

(5) In subsection (3), after “(2)(b)” insert “and (f)”.

(6) After that subsection insert—

(3A) A person to whom views are made known or reports or
35recommendations are made under subsection (2)(d) must, in exercising
any function relating to care services, have regard to the views, reports
or recommendations.

(7) For the title to section 221 substitute “Health services and social services: local
arrangements”.

181 40Local authority arrangements

(1) Section 222 of the Local Government and Public Involvement in Health Act
2007 (arrangements under section 221 of that Act) is amended as follows.

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