(b) if the Secretary of State directs, send a copy of the report on the
accounts to the Secretary of State, and

(c) if the Secretary of State directs, lay copies of the accounts and the
report on them before Parliament.

5Annual report

28 (1) As soon as is feasible after the end of each financial year, HEE must prepare
an annual report on how it has exercised its functions during the year.

(2) The report must include, in particular, HEE’s assessment of—

(a) the extent to which is has during the year—

(i) 10achieved the objectives and reflected the priorities set by the
Secretary of State for the purposes of section 90(1); and

(ii) achieved the outcomes set by the Secretary of State for the
purposes of section 90(2); and

(b) how effectively it discharged its duties under this Act or under
15regulations under this Act.

(3) HEE must—

(a) lay a copy of the report before Parliament, and

(b) send a copy of it to the Secretary of State.

(4) HEE must provide the Secretary of State with such other reports and
20information relating to the exercise of its functions as the Secretary of State
may request.

Part 4 Consequential amendments

Public Records Act 1958

29 25In Part 2 of the Table in Schedule 1 to the Public Records Act 1958, at the
appropriate place insert—

• “Health Education England.”

Public Bodies (Admission to Meetings) Act 1960

30 In the Schedule to the Public Bodies (Admission to Meetings) Act 1960, after
30paragraph (bl) insert—

“(bm) Health Education England;”.

Parliamentary Commissioner Act 1967

31 In Schedule 2 to the Parliamentary Commissioner Act 1967, at the
appropriate place insert—

• 35“Health Education England”.

House of Commons Disqualification Act 1975

32 In Part 2 of Schedule 1 to the House of Commons Disqualification Act 1975,
at the appropriate place insert—

• “Health Education England.”

Copyright, Designs and Patents Act 1988

33 In section 48(6) of the Copyright, Designs and Patents Act 1988 (definition of
“the Crown”), after “the Care Quality Commission” insert “, Health
Education England”.

5Freedom of Information Act 2000

34 In Part 3 of Schedule 1 to the Freedom of Information Act 2000 (health
service), at the appropriate place insert—

• “Health Education England.”

Equality Act 2010

35 10In Part 1 of Schedule 19 to the Equality Act 2010 (authorities subject to the
public sector equality duty), in the group of entries under the heading
“Health, social care and social security”, before the entry for the Health
Service Commissioner for England, insert—

• “Health Education England.”

Section 94

15SCHEDULE 6 Local Education and Training Boards

The area for which an LETB is appointed

1 (1) HEE must ensure that the areas of LETBs—

(a) do not coincide or overlap, and

(b) 20together cover the whole of England.

(2) HEE may vary the area of an LETB.

(3) HEE must—

(a) keep an up-to-date record of the area of each LETB, and

(b) publish the record.

25Assessment of whether the appointment criteria are being met in relation to LETBs

2 (1) HEE must, whenever it considers appropriate, assess—

(a) whether the appointment criteria are being met in relation to an
LETB, and

(b) if they are not, whether enough of the appointment criteria are being
30met for the LETB in question to be able to exercise its functions.

(2) Having carried out an assessment under sub-paragraph (1), HEE must
notify the LETB of, and then publish—

(a) the result of the assessment, and

(b) if HEE is not satisfied that the criteria are being met in relation to the
35LETB, HEE’s reasons for not being so satisfied.

(3) Where, on an assessment under sub-paragraph (1), HEE is not satisfied that
all the appointment criteria are being met in relation to an LETB but is
satisfied that enough of them are being met for the LETB to be able to

exercise its functions, HEE may impose conditions on the LETB relating to
its operation.

(4) Where, on an assessment under sub-paragraph (1), HEE is not satisfied that
enough of the appointment criteria are being met in relation to the LETB for
5the LETB to be able to exercise its functions, HEE may do one or more of the
following—

(a) appoint new members of the LETB (whether as well as or instead of
existing members);

(b) exercise functions on behalf of the LETB;

(c) 10make arrangements for the persons who provide health services in
the area for which the LETB was appointed to be represented by
another LETB instead.

(5) Before imposing conditions under sub-paragraph (3) or taking action under
sub-paragraph (4), HEE must notify the LETB concerned of—

(a) 15the conditions it proposes to impose or action it proposes to take, and

(b) its reasons for proposing to impose those conditions or take that
action.

(6) Having imposed conditions under sub-paragraph (3) or taken action under
sub-paragraph (4), HEE must publish—

(a) 20details of the conditions it imposed or action it took, and

(b) its reasons for imposing those conditions or taking that action.

(7) Before making arrangements under sub-paragraph (4)(c), HEE must obtain
the approval of the other LETB.

(8) Regulations must require specified commissioners of health services to
25include in the arrangements under the National Health Service Act 2006 for
the provision of such services terms to ensure that a provider of such
services—

(a) co-operates with any LETB which represents that provider by virtue
of arrangements made by HEE under sub-paragraph (4)(c), in such
30manner and to such extent as that LETB may request, in planning the
provision of, and in providing, education and training for health care
workers;

(b) provides that LETB with such information as it may request.

(9) Regulations may specify other circumstances in which HEE may intervene
35in the operation of an LETB (whether by imposing conditions or in such
other way as is specified).

(10) A reference to exercising a function includes a reference to exercising it
properly.

Publication and review of the appointment criteria

3 (1) 40HEE must publish the appointment criteria; but before doing so it must
obtain the approval of the Secretary of State.

(2) HEE must keep the appointment criteria under review and may revise them;
and the duty to obtain approval under sub-paragraph (1) applies to revised
criteria only in so far as HEE considers the revisions significant.

Exercise of functions

4 (1) Regulations may—

(a) give LETBs additional functions relating to the provision of
education and training for health care workers or to the planning of
5its provision;

(b) impose requirements on LETBs relating to how they exercise
functions.

(2) An LETB may do anything which appears to it to be necessary or desirable
for the purposes of or in connection with the exercise of its functions.

(3) 10If HEE considers that an LETB is failing or has failed to exercise a function,
or that there is a significant risk that it will fail to do so, HEE must direct the
LETB to exercise such function within such period, and in such manner, as
the direction specifies.

(4) If an LETB fails to comply with a direction under sub-paragraph (3), HEE
15may take action under one or more of paragraphs (a) to (c) of paragraph 2(4)
(with paragraph 2(5) to (7) applying accordingly).

(5) The reference in sub-paragraph (3) to exercising a function includes a
reference to exercising it properly.

Section 99

SCHEDULE 7 20The Health Research Authority

Part 1 Constitution

Membership

1 (1) The HRA consists of—

(a) 25a chair appointed by the Secretary of State,

(b) at least three but no more than four other members appointed by the
Secretary of State,

(c) a chief executive appointed by the members appointed under
paragraphs (a) and (b), and

(d) 30at least two but no more than three other members appointed by the
members appointed under paragraphs (a) and (b).

(2) The members appointed under sub-paragraph (1)(a) and (b)—

(a) are not employees of the HRA, and

(b) are referred to in this Schedule as the “non-executive members”.

(3) 35The members appointed under sub-paragraph (1)(c) and (d)—

(a) are employees of the HRA, and

(b) are referred to in this Schedule as the “executive members”.

(4) The number of non-executive members must exceed the number of
executive members.

Non-executive members: terms of office

2 (1) A person holds office as a non-executive member of the HRA on the terms
of that person’s appointment.

(2) A person may not be appointed as a non-executive member for a period of
5more than four years.

(3) A person who ceases to be a non-executive member is eligible for re-
appointment.

(4) A person may resign from office as a non-executive member by giving notice
to the Secretary of State.

(5) 10The Secretary of State may remove a person from office as a non-executive
member on any of the following grounds—

(a) incapacity;

(b) misbehaviour;

(c) failure to carry out his or her duties as a non-executive member.

(6) 15The Secretary of State may suspend a person from office as a non-executive
member if it appears to the Secretary of State that there are or may be
grounds to remove that person from office under sub-paragraph (5).

Non-executive members: suspension from office

3 (1) Having decided to suspend a person under paragraph 2(6), the Secretary of
20State must give notice of the decision to the person; and the suspension takes
effect when the person receives the notice.

(2) The notice may be—

(a) delivered in person (in which case the person is taken to receive it
when it is delivered), or

(b) 25sent by first class post to the person’s last known address (in which
case, the person is taken to receive it on the third day after the day on
which it is posted).

(3) The initial period of suspension must not exceed six months.

(4) The Secretary of State may review the suspension.

(5) 30The Secretary of State—

(a) must review the suspension, if requested in writing by the person to
do so, but

(b) need not review the suspension less than three months after the
beginning of the initial period of suspension.

(6) 35Following a review during a period of suspension, the Secretary of State
may—

(a) revoke the suspension, or

(b) suspend the person for a period of no more than six months from the
expiry of the current period.

(7) 40The Secretary of State must revoke the suspension if the Secretary of State—

(a) decides that there are no grounds to remove the person from office
under paragraph 2(5), or

(b) decides that there are grounds to do so but nonetheless decides not
to do so.

4 (1) Where a person is suspended from office as the chair under paragraph 2(6),
the Secretary of State may appoint a non-executive member as interim chair
5to exercise the chair’s functions.

(2) Appointment as interim chair is for a term not exceeding the shorter of—

(a) the period ending with either—

(i) the appointment of a new chair, or

(ii) the revocation or expiry of the existing chair’s suspension,
10and

(b) the remainder of the interim chair’s term as a non-executive member.

(3) A person who ceases to be the interim chair is eligible for re-appointment.

Non-executive members: pay

5 (1) The HRA must pay its non-executive members such remuneration as the
15Secretary of State may decide.

(2) The HRA must pay, or provide for the payment of, such allowances or
gratuities as the Secretary of State may decide to a person who is or has been
a non-executive member of the HRA.

Employees: terms of office

6 (1) 20Each executive member of the HRA is appointed as an employee of the HRA
on such terms as it decides.

(2) A person may not be appointed as chief executive without the consent of the
Secretary of State.

(3) The HRA may appoint, on such terms as it decides, other persons as
25employees of the HRA (in addition to those appointed as executive
members).

Employees: pay

7 (1) The HRA must pay its employees such remuneration as it decides.

(2) The HRA may pay, or provide for the payment of, such pensions,
30allowances or gratuities as it decides to or in respect of a person who is or
has been an employee of the HRA.

(3) Before making a decision about pay under this paragraph, the HRA must
obtain the approval of the Secretary of State to its policy on the matter.

Committees and sub-committees

8 (1) 35The HRA must appoint a committee for the purpose of giving advice—

(a) to the HRA in connection with the exercise of the HRA’s function
under regulation 5(1)(a) of the Health Service (Control of Patient
Information) Regulations 2002 (S.I. 2002/1438S.I. 2002/1438) (approval for
processing confidential patient information);

(b) to the Secretary of State in connection with the exercise of the
Secretary of State’s functions under regulations 2, 3(4) and 5 of those
Regulations (processing of confidential patient information).

(2) The HRA may appoint other committees and sub-committees.

(3) 5The committee appointed under sub-paragraph (1) must consist of persons
who are not members or employees of the HRA.

(4) Any other committee or sub-committee may consist of or include such
persons.

(5) The HRA may pay such remuneration and allowances as it decides to a
10person who is a member of a committee or sub-committee, but is not an
employee of the HRA, regardless of whether the person is a non-executive
member of the HRA.

Procedure

9 (1) The HRA may regulate its own procedure.

(2) 15A vacancy among the members of the HRA, or a defect in the appointment
of a member, does not affect the validity of any act of the HRA.

Seal and evidence

10 (1) The application of the HRA’s seal must be authenticated by the signature of
a member of the HRA or a person who has been authorised (whether
20generally or specifically) for the purpose.

(2) A document purporting to be duly executed under the HRA’s seal or to be
signed on its behalf must be received in evidence and, unless the contrary is
proved, taken to be so executed or signed.

(3) But this paragraph does not apply in relation to a document which is, or is
25to be, signed in accordance with the law of Scotland.

Status of the HRA

11 (1) The HRA is not to be regarded as a servant or agent of the Crown, or as
enjoying any status, privilege or immunity of the Crown.

(2) The HRA’s property is not to be regarded as property of, or property held
30on behalf of, the Crown.

Part 2 Functions

Exercise of functions

12 (1) The HRA must exercise its functions effectively, efficiently and
35economically.

(2) The HRA may arrange for any person (other than a devolved authority) to
exercise any of its functions on its behalf.

(3) The HRA may arrange for any person to help it in the exercise of its functions
(whether in a particular case or in cases of a particular description).

(4) Arrangements under sub-paragraph (2) or (3) may provide for the payment
of remuneration and allowances to the persons with whom the HRA makes
5the arrangements.

(5) The HRA may do anything which appears to it to be necessary or desirable
for the purposes of or in connection with the exercise of its functions.

Help or advice for other public authorities

13 (1) The HRA may provide help or advice to another public authority for the
10purpose of the exercise by that authority of its functions.

(2) Help or advice under this paragraph may be provided on such terms as the
HRA decides (including terms relating to payment of remuneration and
allowances).

(3) “Public authority”—

(a) 15includes any person certain of whose functions are functions of a
public nature, but

(b) does not include either House of Parliament or a person exercising
functions in connection with proceedings in Parliament.

(4) A reference to a public authority—

(a) 20includes a public authority in the Channel Islands or the Isle of Man,
but

(b) subject to that, does not include a reference to a public authority
outside the United Kingdom.

Arrangements with devolved authorities

14 (1) 25The HRA may arrange with a devolved authority for the HRA—

(a) to exercise on behalf of the devolved authority any function which
corresponds to a function of the HRA;

(b) to provide services or facilities in so far as the devolved authority
requires them in connection with the exercise of such a function.

(2) 30The terms and conditions on which arrangements under this paragraph may
be made include provision for payment to the HRA in respect of its costs in
giving effect to the arrangements.

Failure to exercise functions

15 (1) If the Secretary of State considers that the HRA is failing or has failed to
35exercise any of its functions, and that the failure is significant, the Secretary
of State may direct the HRA to exercise such of its functions, in such manner
and within such period, as the direction specifies.

(2) If the HRA fails to comply with a direction under this paragraph, the
Secretary of State may—

(a) 40exercise the functions specified in the direction, or

(b) make arrangements for some other person to exercise them on the
Secretary of State’s behalf.

(3) Where the Secretary of State exercises a power under sub-paragraph (1) or
(2), the Secretary of State must publish the reasons for doing so.

(4) The reference in sub-paragraph (1) to exercising a function includes a
reference to exercising it properly.

5Part 3 Finance and reports

Funding

16 The Secretary of State may, with the consent of the Treasury, make payments
to the HRA at such times and on such conditions (if any) as the Secretary of
10State considers appropriate.

Fees and indemnities

17 (1) Regulations may require payment of a fee in relation to the exercise of a
specified function of the HRA; and the amount of the fee is to be the amount
specified in, or determined in accordance with, the regulations.

(2) 15Where the amount of a fee is to be specified in regulations under this
paragraph—

(a) the Secretary of State must, before specifying the amount of the fee,
have regard to the cost incurred in the exercise of the function to
which the fee relates, and

(b) 20the HRA must provide the Secretary of State with such information,
in such form, as the Secretary of State may request.

(3) Regulations under this paragraph may require the HRA to determine the
amount of a fee; and, where they do so, the regulations—

(a) must require the HRA, before determining the amount of the fee, to
25have regard to the cost incurred in the exercise of the function to
which the fee relates, and

(b) must require the HRA to obtain the approval of the Secretary of State
to the proposed amount of the fee.

(4) Regulations under this paragraph which provide for the amount of a fee to
30be determined may specify factors in accordance with which it is to be
determined.

(5) Regulations under this paragraph may include provision—

(a) for determining the time by which a fee is payable;

(b) for any unpaid balance to be recoverable as a debt due to the HRA
35(but for this not to affect any other method of recovery).

(6) Before making regulations under this paragraph, the Secretary of State must
consult such persons as the Secretary of State considers appropriate.

(7) Section 265 of the Public Health Act 1875 (which relates to the protection of
members and officers of certain authorities from personal liability) has effect
40as if there were included in the authorities referred to in that section a
reference to the HRA.

(8) In its application to the HRA as a result of sub-paragraph (7), section 265 of
that Act has effect as if any reference in that section to that Act were a
reference to this Act.

(9) In section 71(2) of the National Health Service Act 2006 (schemes for meeting
5losses and liabilities etc. of certain health service bodies), after paragraph (f)
insert—

“(fa) the Health Research Authority;”.

Accounts

18 (1) The HRA must keep accounts in such form as the Secretary of State may
10determine.

(2) The HRA must prepare annual accounts in respect of each financial year in
such form as the Secretary of State may determine.

(3) The HRA must send copies of the annual accounts to—

(a) the Secretary of State, and

(b) 15the Comptroller and Auditor General,

within such period after the end of the financial year to which the accounts
relate as the Secretary of State may determine.

(4) The Comptroller and Auditor General must—

(a) examine, certify and report on the annual accounts, and

(b) 20lay copies of them and the report on them before Parliament.

(5) In this paragraph and paragraph 19, “financial year” includes the period—

(a) beginning with the day on which the HRA is established, and

(b) ending with the following 31 March or, if the period ending with that
date is 3 months or less, ending with the 31 March following that
25date.

Annual report

19 (1) As soon as is feasible after the end of each financial year, the HRA must
prepare an annual report on—

(a) the activities it has undertaken during the year, and

(b) 30the activities it proposes to undertake during the current financial
year.

(2) The report must set out the steps the HRA has taken during the year to fulfil
its main objective (see section 100(2)).

(3) The HRA must—

(a) 35lay a copy of the report before Parliament, and

(b) send a copy of it to the Secretary of State.

(4) The HRA must provide the Secretary of State with such other reports and
information relating to the exercise of its functions as the Secretary of State
may request.