Section 22(2)

SCHEDULE 2 Clinical commissioning groups

Sections 14B(6), 14D(2) and 14I(4)

“Schedule 1 Clinical commissioning groups

5Part 1 Constitution of clinical commissioning groups

General

1 A clinical commissioning group must have a constitution.

(1) The constitution must specify—

(a) 10the name of the clinical commissioning group,

(b) the members of the group, and

(c) the area of the group.

(2) The name of the group must comply with such requirements as
may be prescribed.

(1) 15The constitution must specify the arrangements made by the
clinical commissioning group for the discharge of its functions
(including its functions in determining the terms and conditions of
its employees).

(2) The arrangements may include provision—

(a) 20for the appointment of committees or sub-committees of
the clinical commissioning group, and

(b) for any such committees to consist of or include persons
other than members or employees of the clinical
commissioning group.

(3) 25The arrangements may include provision for any functions of the
clinical commissioning group to be exercised on its behalf by—

(a) any of its members or employees,

(b) its governing body, or

(c) a committee or sub-committee of the group.

(1) 30The constitution must specify the procedure to be followed by the
clinical commissioning group in making decisions.

(2) The constitution must, in particular, make provision for dealing
with conflicts of interests of members or employees of the clinical
commissioning group.

(3) 35The constitution must also specify the arrangements made by the
clinical commissioning group for securing that there is
transparency about the decisions of the group and the manner in
which they are made.

5 The provision made by virtue of paragraphs 3 and 4 must secure
40that there is effective participation by each member of the clinical
commissioning group in the exercise of the group’s functions.

Governing bodies of clinical commissioning groups

(1) The constitution must specify the arrangements made by the
clinical commissioning group for the discharge of the functions of
its governing body.

(2) 5The arrangements—

(a) must include provision for the appointment of the audit
committee and remuneration committee of the governing
body, and

(b) may include provision for the appointment of other
10committees or sub-committees of the governing body.

(3) Arrangements under sub-paragraph (2)(a) may include provision
for the audit committee to include individuals who are not
members of the governing body.

(4) Arrangements under sub-paragraph (2)(b) may include provision
15for a committee or sub-committee to include individuals who are
not members of the governing body but are—

(a) members of the clinical commissioning group, or

(b) individuals of a description specified in the constitution.

(5) The arrangements may include provision for any functions of the
20governing body to be exercised on its behalf by—

(a) any committee or sub-committee of the governing body,

(b) a member of the governing body,

(c) a member of the clinical commissioning group who is an
individual (but is not a member of the governing body), or

(d) 25an individual of a description specified in the constitution.

(6) In this paragraph, references to the functions of the governing
body of a clinical commissioning group include references to the
functions of the clinical commissioning group which are
exercisable by the governing body under arrangements specified
30in the constitution by virtue of paragraph 3(3).

(1) The constitution must specify the procedure to be followed by the
governing body in making decisions.

(2) The constitution must, in particular, make provision for dealing
with conflicts of interests of members of the governing body.

(3) 35The constitution must also specify the arrangements made by the
clinical commissioning group for securing that there is
transparency about the decisions of the governing body and the
manner in which they are made.

(4) The provision made under sub-paragraph (3) must include
40provision for meetings of governing bodies to be open to the
public, except where the clinical commissioning group considers
that it would not be in the public interest to permit members of the
public to attend a meeting or part of a meeting.

Supplemental

8 In addition to the provision authorised or required to be included
under this Part of this Schedule, the constitution may make further
provision.

5Part 2 Further provision about clinical commissioning groups

Status

(1) A clinical commissioning group is a body corporate.

(2) A clinical commissioning group is not to be regarded as a servant
10or agent of the Crown or as enjoying any status, privilege or
immunity of the Crown.

(3) The property of a clinical commissioning group is not to be
regarded as property of, or property held on behalf of, the Crown.

Staff

(1) 15A clinical commissioning group may appoint such persons to be
employees of the group as it considers appropriate.

(2) A clinical commissioning group must—

(a) pay its employees remuneration and travelling or other
allowances in accordance with determinations made by its
20governing body under section 14L (3)(a), and

(b) employ them on such other terms and conditions as it may
determine.

(3) A clinical commissioning group may, for or in respect of such of
its employees as it may determine, make arrangements for
25providing pensions, allowances or gratuities.

(4) Such arrangements may include the establishment and
administration, by the clinical commissioning group or otherwise,
of one or more pension schemes.

(5) The arrangements that may be made under sub-paragraph (3)
30include arrangements for the provision of pensions, allowances or
gratuities by way of compensation to or in respect of any of the
clinical commissioning group’s employees who suffer loss of
office or employment or loss or diminution of emoluments.

Accountable officer

(1) 35A clinical commissioning group must have an accountable officer.

(2) The accountable officer is to be appointed by the Board.

(3) The Board may appoint a person to be the accountable officer for
more than one clinical commissioning group (and in the following
provisions of this paragraph such an appointment is referred to as
40a “joint appointment”).

(4) The accountable officer may be—

(a) an individual who is a member of the clinical
commissioning group or of any body that is a member of
the group or, in the case of a joint appointment, an
5individual who is a member of any of the groups in
question or of any body that is a member of any of those
groups, or

(b) an employee of the group or of any member of the group
or, in the case of a joint appointment, an employee of any
10of the groups in question or of any member of those
groups.

(6) A clinical commissioning group may, for or in respect of its
accountable officer, make arrangements for providing pensions,
20allowances or gratuities.

(7) The arrangements that may be made under sub-paragraph (6)
include arrangements for the provision of pensions, allowances or
gratuities by way of compensation to or in respect of the
accountable officer where the officer suffers loss of office or loss or
25diminution of emoluments.

(8) Where a clinical commissioning group has, by virtue of paragraph
10(4), established a pension scheme, the arrangements that may be
made under sub-paragraph (6) include arrangements for the
accountable officer to be a member of the scheme.

(9) 30The accountable officer is responsible for ensuring that the clinical
commissioning group or, in the case of a joint appointment, each
of the groups in question—

(a) complies with its obligations under—

(i) sections 14P and 14Q,

(ii) 35sections 223H to 223J,

(iii) paragraphs 16 to 18 of this Schedule, and

(iv) any other provision of this Act specified in a
document published by the Board for the purposes
of this sub-paragraph, and

(b) 40exercises its functions in a way which provides good value
for money.

Remuneration etc for members of governing bodies

(1) A clinical commissioning group may pay members of its
governing body such remuneration and travelling or other
45allowances as it considers appropriate.

(2) A clinical commissioning group may, for or in respect of such
members of its governing body as it may determine, make
arrangements for providing pensions, allowances or gratuities.

(3) Such arrangements may include the establishment and
administration, by the clinical commissioning group or otherwise,
of one or more pension schemes.

(4) The arrangements that may be made under sub-paragraph (2)
5include arrangements for the provision of pensions, allowances or
gratuities by way of compensation to or in respect of any members
of the governing body who suffer loss or diminution of
emoluments.

(5) Where a clinical commissioning group has, by virtue of paragraph
1010(4), established a pension scheme, the arrangements that may be
made under sub-paragraph (2) include arrangements for members
of the governing body to be members of the scheme.

(6) Sub-paragraph (2) does not apply to members of the governing
body who are—

(a) 15members or employees of the clinical commissioning
group, or

(b) members or employees of a body that is a member of the
clinical commissioning group.

Additional powers in respect of payment of allowances

13 20A clinical commissioning group may pay such travelling or other
allowances as it considers appropriate to any of the following—

(a) members of the clinical commissioning group who are
individuals;

(b) individuals authorised to act on behalf of a member of the
25clinical commissioning group in dealings between the
member and the group;

(c) members of any committee or sub-committee of the
clinical commissioning group or its governing body.

Trust funds and trustees

(1) 30The Secretary of State may by order provide for the appointment
of trustees for a clinical commissioning group to hold property on
trust—

(a) for the general or any specific purposes of the group, or

(b) for any purposes relating to the health service in England.

(2) 35An order under sub-paragraph (1) may—

(a) make provision as to the persons by whom trustees must
be appointed and generally as to the method of their
appointment,

(b) make any appointment subject to such conditions as may
40be specified in the order (including conditions requiring
the consent of the Secretary of State),

(c) make provision as to the number of trustees to be
appointed, including provision under which that number
may from time to time be determined by the Secretary of
45State after consultation with such persons as the Secretary
of State considers appropriate, and

(d) make provision with respect to the term of office of any
trustee and his or her removal from office.

(3) Where trustees have been appointed by virtue of sub-paragraph
(1), the Secretary of State may by order provide for the transfer of
5any trust property from the clinical commissioning group to the
trustees.

Externally financed development agreements

(1) The powers of a clinical commissioning group include power to
enter into externally financed development agreements.

(2) 10For the purposes of this paragraph, an agreement is an externally
financed agreement if it is certified as such in writing by the
Secretary of State.

(3) The Secretary of State may give a certificate under this paragraph
if—

(a) 15in the Secretary of State’s opinion the purpose or main
purpose of the agreement is the provision of services or
facilities in connection with the discharge by a clinical
commissioning group of any of its functions, and

(b) a person proposes to make a loan to, or provide any other
20form of finance for, another party in connection with the
agreement.

(4) If a clinical commissioning group enters into an externally
financed development agreement it may also, in connection with
that agreement, enter into an agreement with a person who falls
25within sub-paragraph (3)(b) in relation to the externally financed
development agreement.

(5) In sub-paragraph (3)(b) “another party” means any party to the
agreement other than the clinical commissioning group.

(6) The fact that an agreement made by a clinical commissioning
30group has not been certified under this paragraph does not affect
its validity.

Accounts and audits

(1) A clinical commissioning group must keep proper accounts and
proper records in relation to the accounts.

(2) 35A clinical commissioning group must prepare annual accounts in
respect of each financial year.

(3) The Board may, with the approval of the Secretary of State, direct
a clinical commissioning group to prepare accounts in respect of
such period or periods as may be specified in the direction.

(4) 40The Board may, with the approval of the Secretary of State, give
directions to a clinical commissioning group as to—

(a) the methods and principles according to which its annual
or other accounts must be prepared, and

(b) the form and content of such accounts.

(5) The annual accounts and, if the Board so directs, accounts
prepared by virtue of sub-paragraph (3) must be audited in
accordance with the Audit Commission Act 1998 by an auditor or
auditors appointed in accordance with arrangements made by the
5Board for the purposes of this paragraph.

(6) The Comptroller and Auditor General may examine—

(a) the annual accounts and any records relating to them, and

(b) any report on them by the auditor or auditors.

(7) A clinical commissioning group must send its audited annual
10accounts, and any audited accounts prepared by it by virtue of
sub-paragraph (3), to the Board by no later than the date specified
in a direction by the Board.

(8) The Board may direct a clinical commissioning group to send its
unaudited annual accounts, and any unaudited accounts
15prepared by it by virtue of sub-paragraph (3), to the Board by no
later than the date specified in a direction by the Board.

(9) For the purposes of this paragraph “financial year” includes the
period which begins on the day the clinical commissioning group
is established and ends on the following 31 March.

20Provision of financial information to Board

(1) The Board may direct a clinical commissioning group to supply it
with such information relating to its accounts or to its income or
expenditure, or its use of resources, as may be specified in the
direction.

(2) 25The power conferred by sub-paragraph (1) includes power to
direct a clinical commissioning group to supply the Board with—

(a) estimates of its future income or expenditure or its future
use of resources;

(b) any information which the Board considers is necessary to
30enable it to verify any other information supplied to it
under sub-paragraph (1).

(3) A clinical commissioning group must supply the Board with any
information specified in a direction under sub-paragraph (1)
within such period as may be specified in the direction.

(4) 35In this paragraph, a reference to the use of resources is a reference
to their expenditure, consumption or reduction in value.

Provision of information required by the Secretary of State

(1) The Secretary of State may require each clinical commissioning
group to provide the Board with such information as the Secretary
40of State considers it necessary to have for the purposes of the
functions of the Secretary of State in relation to the health service.

(2) The information must be provided in such form, and at such time
or within such period, as the Secretary of State may require.

(3) The powers conferred by this paragraph must be exercised in the
same way in relation to each clinical commissioning group.

(4) The Board must give any information obtained by it under sub-
paragraph (1) to the Secretary of State, in such form, and at such
5time or within such period, as the Secretary of State may require.

Incidental powers

19 The power conferred on a clinical commissioning group by section
2 includes in particular power to—

(a) enter into agreements,

(b) 10acquire and dispose of property, and

(c) accept gifts (including property to be held on trust for the
purposes of the clinical commissioning group).

Part 3 Transfer schemes

20 15The things that may be transferred under a property transfer
scheme or a staff transfer scheme under section 14I include—

(a) property, rights and liabilities that could not otherwise be
transferred;

(b) property acquired, and rights and liabilities arising, after
20the making of the scheme;

(c) criminal liabilities.

21 A property transfer scheme or a staff transfer scheme may make
supplementary, incidental, transitional and consequential
provision and may in particular—

(a) 25create rights, or impose liabilities, in relation to property or
rights transferred;

(b) make provision about the continuing effect of things done
by the transferor in respect of anything transferred;

(c) make provision about the continuation of things
30(including legal proceedings) in the process of being done
by, on behalf of or in relation to the transferor in respect of
anything transferred;

(d) make provision for references to the transferor in an
instrument or other document in respect of anything
35transferred to be treated as references to the transferee.

22 A property transfer scheme may make provision for the shared
ownership or use of property.

23 A staff transfer scheme may make provision which is the same or
similar to the Transfer of Undertakings (Protection of
40Employment) Regulations 2006 (SI 2006/246SI 2006/246).

24 A property transfer scheme or a staff transfer scheme may
provide—

(a) for the scheme to be modified by agreement after it comes
into effect, and

(b) for any such modifications to have effect from the date
when the original scheme comes into effect.”

Section 48

SCHEDULE 3 Pharmaceutical remuneration

Section 165A

5“Schedule 1 Pharmaceutical remuneration

Interpretation

1 In this Schedule—

(a) “drugs” includes medicines and listed appliances (within
10the meaning of section 126), and

(b) “pharmaceutical remuneration” means remuneration paid
by the Board to persons providing pharmaceutical services
or local pharmaceutical services.

Pharmaceutical remuneration to be apportioned among clinical commissioning groups

(1) 15The Board must determine the elements of pharmaceutical
remuneration in respect of which apportionments are to be made
in relation to a financial year in accordance with this paragraph.

(2) In this Schedule, those elements of pharmaceutical remuneration
are referred to as “designated elements”.

(3) 20The Board must notify each clinical commissioning group of a
determination under sub-paragraph (1).

(4) The Board must apportion the sums paid by it in respect of each
designated element during the financial year among all clinical
commissioning groups, in such manner as the Board thinks
25appropriate.

(5) In apportioning sums under sub-paragraph (4), the Board may, in
particular, take into account the financial consequences of orders
for the provision of drugs that are attributable to the members of
each clinical commissioning group.

(6) 30Where an amount of pharmaceutical remuneration is apportioned
to a clinical commissioning group, the Board—

(a) may deduct that amount from the sums that it would
otherwise pay to the group under section 223G (1), and

(b) if it does so, must notify the group accordingly.

(7) 35The Secretary of State may direct the Board that an element of
pharmaceutical remuneration specified in the direction is not to be
included in a determination under sub-paragraph (1).

(8) In determining the amount to be allotted to a clinical
commissioning group for the purposes of section 223G, the Board
40must take into account the effect of this Schedule.

(9) For the purposes of sections 223H and 223I (3) and paragraph 16 of
Schedule 1A, any amount of which a clinical commissioning
group is notified under sub-paragraph (6) is to be treated as
expenditure of the group which is attributable to the performance
5by it of its functions in the year in question.

Other pharmaceutical remuneration

(1) This paragraph applies in relation to pharmaceutical
remuneration paid in a financial year other than—

(a) designated elements of such remuneration, and

(b) 10remuneration of a prescribed description.

(2) The Board may require a person to reimburse the Board for any
pharmaceutical remuneration to which this paragraph applies if
the drugs or services to which the remuneration relates were—

(a) ordered by that person, or

(b) 15ordered in the course of the delivery of a service arranged
by that person.

(3) Any sum payable to the Board by virtue of sub-paragraph (2) may
be recovered summarily as a civil debt (but this does not affect any
other method of recovery).

20Exercise of functions

4 The Board may, with the consent of the Secretary of State—

(a) direct a Special Health Authority to exercise any functions
of the Board under this Schedule, or

(b) arrange for any other person to exercise any of those
25functions.”

Section 52(1)

SCHEDULE 4 Amendments of the National Health Service Act 2006

Part 1 The health service in England

(1) 30For section 2 substitute—

“2 General power

The Secretary of State, the Board or a clinical commissioning group
may do anything which is calculated to facilitate, or is conducive or
incidental to, the discharge of any function conferred on that person
35by this Act.”

(2) For the cross-heading preceding section 2 substitute “General power”.

(1) Section 6 (performance of functions outside England) is amended as follows.