Health and Social Care Bill

Session 2010 - 12
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Other Bills before Parliament

Health and Social Care Bill

Health and Social Care Bill
Part 4 — NHS foundation trusts & NHS trusts
152

      (2)
If a declaration under this paragraph proves to be, or becomes,
inaccurate or incomplete, a further declaration must be made.
      (3)
Any declaration required by this paragraph must be made before the
corporation enters into the transaction or arrangement.
      (4)
This paragraph does not require a declaration of an interest of which
5
the director is not aware or where the director is not aware of the
transaction or arrangement in question.
      (5)
A director need not declare an interest—
(a)
if it cannot reasonably be regarded as likely to give rise to a
conflict of interest;
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(b)
if, or to the extent that, the directors are already aware of it;
(c)
if, or to the extent that, it concerns terms of the director’s
appointment that have been or are to be considered—
(i)
by a meeting of the board of directors, or
(ii)
by a committee of the directors appointed for the
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purpose under the constitution.”
(4)
After paragraph 18C of that Schedule insert—
“18D  (1)
Before holding a meeting, the board of directors must send a copy of
the agenda of the meeting to the council of governors.
      (2)
As soon as practicable after holding a meeting, the board of directors
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must send a copy of the minutes of the meeting to the council of
governors.”
(5)
After paragraph 18D of that Schedule insert—
“18E  (1)
The constitution must provide for meetings of the board of directors
to be open to members of the public.
25
      (2)
But the constitution may provide for members of the public to be
excluded from a meeting for special reasons.”
153
Members
(1)
In section 61 of the National Health Service Act 2006 (representative
membership), the existing text becomes subsection (1) and, in that subsection,
30
for “An authorisation may require an NHS foundation trust to” substitute “An
NHS foundation trust must”.
(2)
After that subsection insert—
“(2)
In deciding which areas are to be areas for public constituencies, or in
deciding whether there is to be a patients’ constituency, an NHS
35
foundation trust must have regard to the need for those eligible for
such membership to be representative of those to whom the trust
provides services.”
154
Accounts: initial arrangements
(1)
In paragraph 24 of Schedule 7 to the National Health Service Act 2006
40

Health and Social Care Bill
Part 4 — NHS foundation trusts & NHS trusts
153

(accounts: general), for sub-paragraph (1) substitute—
    “(1)
A public benefit corporation must keep proper accounts and proper
records in relation to the accounts.
     (1A)
The regulator may with the approval of the Secretary of State give
directions to the corporation as to the content and form of its
5
accounts.”
(2)
In sub-paragraph (3) of that paragraph, in paragraph (b) for “any records”
substitute “the records”.
(3)
In paragraph 25 of that Schedule (annual accounts), in sub-paragraph (1), for
“the Treasury” substitute “the Secretary of State”.
10
(4)
After sub-paragraph (1) of that paragraph insert—
   “(1A)
The regulator may with the approval of the Secretary of State direct
a public benefit corporation—
(a)
to prepare accounts in respect of such period or periods as
may be specified in the direction;
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(b)
that any accounts prepared by it by virtue of paragraph (a)
are to be audited in accordance with such requirements as
may be specified in the direction.”
(5)
In sub-paragraph (2) of that paragraph—
(a)
after “annual accounts” insert “or in preparing any accounts by virtue
20
of sub-paragraph (1A)(a)”,
(b)
for “the Treasury” substitute “the Secretary of State”, and
(c)
for “information to be given in” substitute “content and form of”.
(6)
In sub-paragraph (3) of that paragraph, after “annual accounts” insert “, or of
any accounts to be prepared by it by virtue of sub-paragraph (1A)(a),”.
25
(7)
In sub-paragraph (4) of that paragraph, in paragraph (b)—
(a)
omit “once it has done so,”, and
(b)
at the end insert “within such period as the regulator may direct”.
(8)
After that sub-paragraph insert—
   “(4A)
The corporation must send to the regulator within such period as the
30
regulator may direct—
(a)
a copy of any accounts prepared by the corporation by virtue
of sub-paragraph (1A)(a), and
(b)
a copy of any report of an auditor on them prepared by virtue
of sub-paragraph (1A)(b).”
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155
Accounts: variations to initial arrangements
(1)
In paragraph 24 of Schedule 7 to the National Health Service Act 2006
(accounts: general), in sub-paragraph (1A), for “The regulator may with the
approval of the Secretary of State” substitute “The Secretary of State may with
the approval of the Treasury”.
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(2)
In sub-paragraph (5) of that paragraph, for “the regulator” substitute “the
Secretary of State”.

Health and Social Care Bill
Part 4 — NHS foundation trusts & NHS trusts
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(3)
In paragraph 25 of that Schedule (annual accounts), in sub-paragraph (1), for
“the regulator may with the approval of the Secretary of State” substitute “the
Secretary of State may with the approval of the Treasury”.
(4)
In sub-paragraph (1A) of that paragraph, for “The regulator may with the
approval of the Secretary of State” substitute “The Secretary of State may with
5
the approval of the Treasury”.
(5)
In sub-paragraph (2) of that paragraph, for “the regulator with the approval of
the Secretary of State” substitute “the Secretary of State with the approval of
the Treasury”.
(6)
In sub-paragraphs (3), (4) and (4A) of that paragraph, for “the regulator”, in
10
each place it appears, substitute “the Secretary of State”.
(7)
This section applies to such financial year as is specified in the order under
section 306 that brings the preceding provisions of this section into force (and
to the subsequent financial years); accordingly, this section does not affect the
application of paragraphs 24 and 25 of Schedule 7 to the National Health
15
Service Act 2006 (as amended by section 154) to the financial years preceding
the specified financial year.
(8)
In subsection (7), “financial year” has the meaning given in section 275(1) of the
National Health Service Act 2006.
156
Annual report and forward plan
20
(1)
In sub-paragraph (2) of paragraph 26 of Schedule 7 to the National Health
Service Act 2006 (information that must be included in annual report), after
paragraph (aa) (inserted by section 151(8)) insert—
“(ab)
information on the corporation’s policy on pay and on the
work of the committee established under paragraph 18(2)
25
and such other procedures as the corporation has on pay,
(ac)
information on the remuneration of the directors and on the
expenses of the governors and the directors,”.
(2)
After that sub-paragraph insert—
   “(2A)
Before imposing a requirement under sub-paragraph (2)(b) that the
30
regulator considers is sufficiently significant to justify consultation,
the regulator must consult such persons as it considers appropriate.”
(3)
The Secretary of State may by order—
(a)
amend sub-paragraph (2) of paragraph 26 of that Schedule so as to
substitute for paragraph (b) the following—
35
“(b)
such other information as may be prescribed.”, and
(b)
repeal sub-paragraph (2A) of that paragraph.
(4)
In paragraph 27(1) of that Schedule (duty to send forward plan to regulator),
for “the regulator” substitute “the Secretary of State”.
(5)
Omit section 39(2)(e) of that Act (requirement for copy of forward plan to be on
40
register).
(6)
In paragraph 22(1) of Schedule 7, omit paragraph (e) (duty to make forward
plan available to the public).

Health and Social Care Bill
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157
Meetings
(1)
After paragraph 27 of Schedule 7 to the National Health Service Act 2006
insert—
“Annual meeting of members
27A   (1)
A public benefit corporation must hold an annual meeting of its
5
members.
      (2)
The meeting must be open to members of the public.
      (3)
At least one member of the board of directors of the corporation must
attend the meeting and present the following documents to the
members at the meeting—
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(a)
the annual accounts,
(b)
any report of the auditor on them,
(c)
the annual report.
      (4)
Where an amendment is made to the constitution in relation to the
powers or duties of the council of governors of a public benefit
15
corporation (or otherwise with respect to the role that the council has
as part of the corporation)—
(a)
at least one member of the council of governors must attend
the next meeting to be held under this paragraph and present
the amendment, and
20
(b)
the corporation must give the members an opportunity to
vote on whether they approve the amendment.
      (5)
If more than half of the members voting approve the amendment, the
amendment continues to have effect; otherwise, it ceases to have
effect and the corporation must take such steps as are necessary as a
25
result.”
(2)
In paragraph 28 of that Schedule (meeting of council of governors to consider
annual accounts and reports), the existing text of which becomes sub-
paragraph (1), after that sub-paragraph insert—
    “(2)
Nothing in sub-paragraph (1) prevents the council of governors from
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holding a general meeting more than once a year.”
(3)
After that paragraph insert—
“Combined meetings of members and governors
28A
A public benefit corporation may hold a meeting which combines a
meeting under paragraph 27A with a meeting under paragraph 28.”
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158
Voting
(1)
After paragraph 29 of Schedule 7 to the National Health Service Act 2006
insert—
“Power to make provision about voting
30    (1)
Regulations may amend this Chapter so as to add, vary or omit
40
provision relating to voting by members of the council of governors

Health and Social Care Bill
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of a public benefit corporation that is an NHS foundation trust, by its
directors or by its members.
      (2)
The power under sub-paragraph (1) is exercisable only in relation to
provision in this Chapter that was inserted, or otherwise provided
for, by Part 4 of the Health and Social Care Act 2012.”
5
(2)
In section 64(3) of that Act (regulations under Chapter 5 of Part 2 of that Act
that are subject to affirmative procedure), after paragraph (a) (but before the
“or” following it) insert—
“(aa)
regulations under paragraph 30(1) of Schedule 7,”.
Foundation trust status
10
159
Authorisation
(1)
In section 30(1) of the National Health Service Act 2006 (definition of NHS
foundation trust), for “which is authorised under this Chapter to provide”
substitute “the function of which is to provide in accordance with this
Chapter”.
15
(2)
Omit section 33(2)(a) of that Act (requirement for application for authorisation
to describe goods and services to be provided).
(3)
In section 35(2) of that Act (matters as to which the regulator must be satisfied
before giving authorisation), for paragraph (e) substitute—
“(e)
the applicant will be able to provide goods and services for the
20
purposes of the health service in England,”.
(4)
After section 35(3) of that Act (things the regulator must consider before
deciding whether it is satisfied as to the matters in section 35(2)) insert—
“(3A)
The regulator must not give an authorisation unless it is notified by the
Care Quality Commission that it is satisfied that the applicant is
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complying with (so far as applicable) the requirements mentioned in
section 12(2) of the Health and Social Care Act 2008 in relation to the
regulated activity or activities the applicant carries on.
(3B)
In subsection (3A), “regulated activity” has the same meaning as in
section 8 of the Health and Social Care Act 2008.”
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(5)
Omit section 35(4) and (7) of that Act (power to give authorisation on terms the
regulator considers appropriate).
(6)
Omit section 38 of that Act (variation of authorisation).
(7)
Omit section 39(2)(b) of that Act (requirement for copy of authorisation to be
on register).
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(8)
Omit section 49 of that Act (authorisation to require trust to allow regulator to
enter and inspect trust’s premises).
(9)
Omit paragraph 22(1)(b) of Schedule 7 to that Act (requirement for copy of
authorisation to be available for public inspection).