House of Commons portcullis
House of Commons
Session 2005 - 06
Internet Publications
Other Bills before Parliament

National Health Service Bill [HL]


National Health Service Bill [HL]
Part 2 — Health service bodies
Chapter 5 — NHS foundation trusts

26

 

(b)   

another NHS foundation trust or an NHS trust,

   

to the regulator for authorisation of the dissolution of the trusts and the

transfer of some or all of their property and liabilities to a new NHS foundation

trust established under this section.

(2)   

The application must—

5

(a)   

be supported by the Secretary of State if one of the parties to it is an

NHS trust,

(b)   

specify the property and liabilities proposed to be transferred to the

new NHS foundation trust,

(c)   

describe the goods and services which it is proposed should be

10

provided by the new trust, and

(d)   

be accompanied by a copy of the proposed constitution of the new

trust,

   

and must give any further information which the regulator requires the

applicants to give.

15

(3)   

The applicants may modify the application with the agreement of the regulator

at any time before authorisation is given under this section.

(4)   

The regulator may—

(a)   

issue a certificate incorporating the directors of the applicants as a

public benefit corporation, and

20

(b)   

give an authorisation under this section to the corporation to become an

NHS foundation trust,

   

if the regulator is satisfied as to the following matters.

(5)   

The matters are that—

(a)   

the constitution of the new trust will be in accordance with Schedule 7

25

and will otherwise be appropriate,

(b)   

the applicants have taken steps to secure that (taken as a whole) the

actual membership of any public constituency, and (if there is one) of

the patients’ constituency, will be representative of those eligible for

such membership,

30

(c)   

the new trust will be able to provide the goods and services which the

authorisation will require it to provide, and

(d)   

any other requirements which the regulator considers appropriate are

met.

(6)   

In deciding whether it is satisfied as to the matters referred to in subsection

35

(5)(c), the regulator must consider (among other things)—

(a)   

any report or recommendation in respect of either of the applicants

made by the Commission for Healthcare Audit and Inspection,

(b)   

the financial position of the applicants.

(7)   

The applicants must consult about the application in accordance with

40

regulations.

(8)   

In the course of the consultation the applicants must seek the views of—

(a)   

any Patients’ Forum for an applicant,

(b)   

the staff employed by the applicants,

(c)   

individuals who live in any area specified in the proposed constitution

45

as the area for a public constituency,

 
 

National Health Service Bill [HL]
Part 2 — Health service bodies
Chapter 5 — NHS foundation trusts

27

 

(d)   

any local authority that would be authorised by the proposed

constitution to appoint a member of the board of governors,

(e)   

if the proposed constitution provides for a patients’ constituency,

individuals who would be able to apply to become members of that

constituency,

5

(f)   

any prescribed persons.

(9)   

The regulator may not give an authorisation under this section unless it is

satisfied that the applicants have complied with the regulations.

(10)   

The certificate is conclusive evidence of incorporation; and the authorisation is

conclusive evidence that the corporation is an NHS foundation trust.

10

(11)   

On an authorisation being given under this section, the proposed constitution

of the NHS foundation trust has effect, but the directors of the applicants may

exercise the functions of the trust on its behalf until a board of directors is

appointed in accordance with the constitution.

57      

Section 56: supplementary

15

(1)   

Where an authorisation is given under section 56, the regulator must specify

the property and liabilities to be transferred to the new NHS foundation trust.

(2)   

Where such an authorisation is given, the Secretary of State must make an

order—

(a)   

dissolving the trusts in question, and

20

(b)   

transferring, or providing for the transfer of, the property and liabilities

specified by the regulator to the new NHS foundation trust.

(3)   

The order may—

(a)   

transfer, or provide for the transfer of, any of the remaining property or

liabilities to the persons mentioned in section 54(3),

25

(b)   

include provisions corresponding to those of Schedule 9.

(4)   

In section 56(1) and (2), and subsections (1) and (2) of this section, “liabilities”

includes criminal liabilities; and an order under subsection (3) of this section

may transfer any remaining criminal liabilities to any of the bodies mentioned

in section 54(4)(a) to (c).

30

(5)   

Where one of the parties to an application under section 56 is an NHS trust, the

powers conferred on the Secretary of State by Part 3 of Schedule 4 are not

exercisable in relation to the trust.

(6)   

Section 35(4) applies to an authorisation under section 56 as it does in relation

to an authorisation under that section.

35

Miscellaneous

58      

Taxation

Section 61(3) of the National Health Service and Community Care Act 1990

(c. 19) (health service bodies: stamp duty) applies to an NHS foundation trust

as it applies to an NHS trust.

40

 
 

National Health Service Bill [HL]
Part 2 — Health service bodies
Chapter 5 — NHS foundation trusts

28

 

59      

Conduct of elections

(1)   

Regulations may make provision as to the conduct of elections for membership

of the board of governors of an NHS foundation trust.

(2)   

The regulations may in particular provide for—

(a)   

nomination of candidates and obligations to declare their interests,

5

(b)   

systems and methods of voting, and the allocation of places on the

board of governors, at contested elections,

(c)   

filling of vacancies,

(d)   

supervision of elections,

(e)   

elections expenses and publicity,

10

(f)   

questioning of elections and the consequences of irregularities.

(3)   

Regulations under this section may create offences punishable on summary

conviction with a maximum fine not exceeding level 4 on the standard scale.

(4)   

An NHS foundation trust must secure that its constitution is in accordance

with regulations under this section.

15

(5)   

Pending the coming into force of regulations under this section, elections for

membership of the board of governors of an NHS foundation trust, if

contested, must be by secret ballot.

60      

Voting and standing for election

(1)   

A person may not vote at an election for the board of governors of an NHS

20

foundation trust unless, within the specified period, he has made a declaration

in the specified form of the particulars of his qualification to vote as a member

of the constituency, or class within a constituency, for which the election is

being held.

(2)   

A person may not stand for election to the board unless—

25

(a)   

he has within the specified period made a declaration in the specified

form of the particulars of his qualification to vote as a member of the

constituency, or class within a constituency, for which the election is

being held, and

(b)   

he is not prevented from being a member of the board by paragraph 8

30

of Schedule 7.

(3)   

A person elected to the board may not vote at a meeting of the board unless—

(a)   

he has within the specified period made a declaration in the specified

form of the particulars of his qualification to vote as a member of the

trust, and

35

(b)   

he is not prevented from being a member of the board by paragraph 8

of Schedule 7.

(4)   

This section does not apply to an election held for the staff constituency.

(5)   

“Specified” means specified in the trust’s constitution.

(6)   

A person is guilty of an offence if he—

40

(a)   

makes a declaration under this section which he knows to be false in a

material particular, or

(b)   

recklessly makes such a declaration which is false in a material

particular.

 
 

National Health Service Bill [HL]
Part 2 — Health service bodies
Chapter 5 — NHS foundation trusts

29

 

(7)   

A person guilty of an offence under this section is liable on summary

conviction to a fine not exceeding level 4 on the standard scale.

61      

Representative membership

An authorisation may require an NHS foundation trust to take steps to secure

that (taken as a whole) the actual membership of any public constituency and

5

(if there is one) of the patients’ constituency is representative of those eligible

for such membership.

62      

Audit

Schedule 10 makes provision in relation to the audit of accounts of NHS

foundation trusts.

10

63      

General duty of NHS foundation trusts

An NHS foundation trust must exercise its functions effectively, efficiently and

economically.

Supplementary

64      

Orders and regulations under this Chapter

15

(1)   

Any power under this Chapter to make an order or regulations is exercisable

by statutory instrument.

(2)   

Subject to subsections (3) and (4), a statutory instrument made by virtue of this

Chapter is subject to annulment in pursuance of a resolution of either House of

Parliament.

20

(3)   

A statutory instrument containing—

(a)   

the first regulations under section 55(4) or 59, or

(b)   

an order or regulations under this Chapter making, by virtue of

subsection (5)(b), provision which amends or repeals any part of the

text of an Act,

25

   

may not be made unless a draft of the instrument has been laid before, and

approved by resolution of, each House of Parliament.

(4)   

Subsection (2) does not apply to a statutory instrument containing an order

under—

(a)   

section 51,

30

(b)   

section 54(4), or

(c)   

section 57.

(5)   

Any order or regulations under this Chapter—

(a)   

may make different provision for different purposes, and

(b)   

may make incidental, supplementary, consequential, transitory or

35

transitional or saving provision.

(6)   

Any power under this Chapter to make an order or regulations (as well as

being exercisable in relation to all cases to which it extends) may be exercised

in relation to all those cases subject to exceptions or in relation to any particular

case or class of case.

40

 
 

 
previous section contents continue
 
House of Commons home page Houses of Parliament home page House of Lords home page search page enquiries

© Parliamentary copyright 2006
Revised 12 October 2006