Health and Social Care Bill

House of Commons

Session 2010 - 11
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Other Bills before Parliament

Health and Social Care Bill

Health and Social Care Bill
Schedule 1 — The National Health Service Commissioning Board
226

(b)
lay copies of the accounts and the report on them before
Parliament.
      (5)
In this paragraph, “financial year” includes the period which
begins with the day on which the Board is established, and ends
on the following 31 March.
5
Interim Accounts
17    (1)
The Secretary of State may, with the approval of the Treasury,
direct the Board to prepare accounts in respect of such period or
periods as may be specified in the direction (“interim accounts”).
      (2)
The interim accounts in respect of any period must contain—
10
(a)
the Board’s accounts in respect of that period, and
(b)
a consolidation of the Board’s accounts in respect of that
period and any accounts of commissioning consortia in
respect of that period which are prepared by virtue of
paragraph 12(3) of Schedule 1A.
15
      (3)
The Board must send copies of any interim accounts to—
(a)
the Secretary of State, and
(b)
if the Secretary of State directs, the Comptroller and
Auditor General,

within such period as the Secretary of State may direct.
20
      (4)
The Comptroller and Auditor General must—
(a)
examine, certify and report on any interim accounts sent
by virtue of sub-paragraph (3)(b),
(b)
if the Secretary of State so directs, send a copy of the report
on the accounts to the Secretary of State, and
25
(c)
if the Secretary of State so directs, lay copies of the accounts
and the report on them before Parliament.
Seal and evidence
18    (1)
The application of the Board’s seal must be authenticated by the
signature of any member of the Board or any other person who has
30
been authorised (generally or specially) for that purpose.
      (2)
A document purporting to be duly executed under the Board’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.”

Health and Social Care Bill
Schedule 2 — Commissioning consortia
Part 2 — Further provision about commissioning consortia
227

Schedule 2
21(2)

Commissioning consortia
“Schedule 1A
Commissioning consortia
Part 1
5
Constitution of commissioning consortia
1
A commissioning consortium must have a constitution.
2
The constitution must specify—
(a)
the name of the consortium,
(b)
the members of the consortium, and
10
(c)
the area of the consortium.
3     (1)
The constitution must specify the arrangements made by the commissioning
consortium for the discharge of its functions (including its functions in
determining the remuneration and the other terms and conditions of its
employees).
15
      (2)
The arrangements may include provision for—
(a)
the appointment of committees or sub-committees of the
commissioning consortium, and
(b)
for any such committees to consist of or include persons other than
members or employees of the commissioning consortium.
20
      (3)
The arrangements may include provision for any functions of the
commissioning consortium to be exercised on its behalf by—
(a)
any of its members or employees, or
(b)
a committee or sub-committee of the consortium.
4     (1)
The constitution must specify the procedure to be followed by the
25
commissioning consortium in making decisions.
      (2)
The constitution must, in particular, make provision for dealing with
conflicts of interests of members or employees of the commissioning
consortium.
5
The provision made by paragraphs 3 and 4 must secure that there is effective
30
participation by each member of the commissioning consortium in the
exercise of the consortium’s functions.
6
In addition to the provision authorised or required to be included under this
Part of this Schedule, the constitution may make further provision.
Part 2
35
Further provision about commissioning consortia
Status
7     (1)
A commissioning consortium is a body corporate.

Health and Social Care Bill
Schedule 2 — Commissioning consortia
Part 2 — Further provision about commissioning consortia
228

      (2)
A commissioning consortium is not to be regarded as a servant or agent of
the Crown or as enjoying any status, privilege or immunity of the Crown.
      (3)
The property of a commissioning consortium is not to be regarded as
property of, or property held on behalf of, the Crown.
Staff
5
8     (1)
A commissioning consortium may appoint such persons to be employees of
the consortium as it considers appropriate.
      (2)
A commissioning consortium must—
(a)
pay its employees such remuneration as it may determine, and
(b)
employ them on such other terms and conditions as it may
10
determine.
      (3)
Regulations may make provision requiring a commissioning consortium to
publish, in accordance with the regulations, prescribed information relating
to the remuneration determined by it under sub-paragraph (2)(a).
      (4)
The Board may publish guidance for commissioning consortia on the
15
determination of remuneration under sub-paragraph (2)(a).
      (5)
A commissioning consortium may, for or in respect of such of its employees
as it may determine, make arrangements for providing pensions, allowances
or gratuities.
      (6)
Such arrangements may include the establishment and administration, by
20
the consortium or otherwise, of one or more pension schemes.
      (7)
The arrangements that may be made under sub-paragraph (5) include
arrangements for the provision of pensions, allowances or gratuities by way
of compensation to or in respect of any of the consortium’s employees who
suffer loss of office or employment or loss or diminution of emoluments.
25
Accountable officer
9     (1)
A commissioning consortium 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 consortium (and in the following provisions of this paragraph such an
30
appointment is referred to as a “joint appointment”).
      (4)
The accountable officer may be—
(a)
an individual who is a member of the consortium or of any body that
is a member of the consortium or, in the case of a joint appointment,
an individual who is a member of any of the consortia in question or
35
of any body that is a member of any of those consortia, or
(b)
an employee of the consortium or of any member of the consortium
or, in the case of a joint appointment, an employee of any of the
consortia in question or of any member of those consortia.
      (5)
If the accountable officer is not an employee of the consortium or, in the case
40
of a joint appointment, of any of the consortia in question, the consortium or
any of the consortia may pay such remuneration to the accountable officer
as it may determine.

Health and Social Care Bill
Schedule 2 — Commissioning consortia
Part 2 — Further provision about commissioning consortia
229

      (6)
The accountable officer is responsible for ensuring that the consortium or, in
the case of a joint appointment, each of the consortia in question—
(a)
complies with its obligations under—
(i)
sections 14K and 14L,
(ii)
sections 223I to 223K,
5
(iii)
paragraphs 12 and 13 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)
exercises its functions in a way which provides good value for
10
money.
Trust funds and trustees
10    (1)
The Secretary of State may by order provide for the appointment of trustees
for a commissioning consortium to hold property on trust—
(a)
for the general or any specific purposes of the consortium, or
15
(b)
for any purposes relating to the health service in England.
      (2)
An 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 be
20
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 State after consultation with such
25
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 any trust property
30
from the consortium to the trustees.
Externally financed development agreements
11    (1)
The powers of a consortium include power to enter into externally financed
development agreements.
      (2)
For the purposes of this paragraph, an agreement is an externally financed
35
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)
in 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 consortium of any of its functions, and
40
(b)
a person proposes to make a loan to, or provide any other form of
finance for, another party in connection with the agreement.
      (4)
If a consortium enters into an externally financed development agreement it
may also, in connection with that agreement, enter into an agreement with a

Health and Social Care Bill
Schedule 2 — Commissioning consortia
Part 2 — Further provision about commissioning consortia
230

person who falls within 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 consortium.
      (6)
The fact that an agreement made by a consortium has not been certified
5
under this paragraph does not affect its validity.
Accounts and audits
12    (1)
A commissioning consortium must keep proper accounts and proper
records in relation to the accounts.
      (2)
A commissioning consortium must prepare annual accounts in respect of
10
each financial year.
      (3)
The Board may, with the approval of the Secretary of State, direct a
commissioning consortium to prepare accounts in respect of such period or
periods as may be specified in the direction.
      (4)
The Board may, with the approval of the Secretary of State, give directions
15
to a commissioning consortium 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
20
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 Board 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
25
(b)
any report on them by the auditor or auditors.
      (7)
A commissioning consortium must send its audited annual accounts, 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 commissioning consortium to send its unaudited
30
annual accounts, and any unaudited 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.
      (9)
Nothing in this paragraph requires a commissioning consortium to keep
accounts or records, or to prepare annual accounts, in respect of anything
35
done by it as trustee.
     (10)
For the purposes of this paragraph “financial year” includes the period
which begins on the day the consortium is established and ends on the
following 31 March.
Provision of financial information to Board
40
13    (1)
The Board may direct a commissioning consortium 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.

Health and Social Care Bill
Schedule 2 — Commissioning consortia
Part 3 — Transfer orders
231

      (2)
The power conferred by sub-paragraph (1) includes power to direct a
commissioning consortium 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 enable it
5
to verify any other information supplied to it under sub-paragraph
(1).
      (3)
A commissioning consortium 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.
10
      (4)
In this section, 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
14    (1)
The Secretary of State may require each commissioning consortium to
provide the Board with such information as the Secretary of State considers
15
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 section must be exercised in the same way in
20
relation to each commissioning consortium.
      (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 time or within such
period, as the Secretary of State may require.
Incidental powers
25
15
The power conferred on a commissioning consortium by section 2 includes
in particular power to—
(a)
enter into agreements,
(b)
acquire and dispose of property, and
(c)
accept gifts (including property to be held on trust for the purposes
30
of the commissioning consortium).
Part 3
Transfer orders
16
The things that may be transferred under a property transfer scheme or a
staff transfer scheme under section 14I include—
35
(a)
property, rights and liabilities that could not otherwise be
transferred;
(b)
property acquired, and rights and liabilities arising, after the making
of the scheme;
(c)
criminal liabilities.
40
17
A property transfer scheme or a staff transfer scheme may make
supplementary, incidental, transitional and consequential provision and
may in particular—

Health and Social Care Bill
Schedule 3 — Pharmaceutical remuneration
232

(a)
create 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 (including legal
5
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 transferred to be treated as
references to the transferee.
10
18
A property transfer scheme may make provision for the shared ownership
or use of property.
19
A staff transfer scheme may make provision which is the same or similar to
the Transfer of Undertakings (Protection of Employment) Regulations 2006
(SI 2006/246).
15
20
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.”
20
Schedule 3
Section 43

Pharmaceutical remuneration
“Schedule 12A
Pharmaceutical remuneration
Interpretation
25
1
In this Schedule—
(a)
“drugs” includes medicines and listed appliances (within
the meaning of section 126), and
(b)
pharmaceutical remuneration means remuneration paid
by the Board to persons providing pharmaceutical services
30
or local pharmaceutical services.
Pharmaceutical remuneration to be apportioned among consortia
2     (1)
The 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.
35
      (2)
In this Schedule, those elements of pharmaceutical remuneration
are referred to as “designated elements”.
      (3)
The Board must notify each commissioning consortium of a
determination under sub-paragraph (1).