Health and Social Care Bill

House of Commons

Session 2010 - 11
Internet Publications
Other Bills before Parliament

Health and Social Care Bill

Health and Social Care Bill
Schedule 15 — The National Institute for Health and Care Excellence
324

Schedule 15
Section 216

The National Institute for Health and Care Excellence
Membership, appointment, etc.
1     (1)
NICE consists of—
(a)
at least six members appointed by the Secretary of State (referred to
5
in this Schedule as the “non-executive members”), and
(b)
at least three but not more than five other members appointed by the
non-executive members (referred to in this Schedule as the
“executive members”).
      (2)
One of the non-executive members must be appointed as the chair.
10
      (3)
One of the executive members must be appointed as the chief executive; but
the appointment may not be made without the approval of the Secretary of
State.
      (4)
The executive members are employees of NICE.
      (5)
Regulations may—
15
(a)
prescribe the number of executive members (subject to paragraph
(1)(b)), and
(b)
provide that all or any of the executive members (other than the chief
executive) must hold posts of descriptions specified in the
regulations.
20
Tenure of non-executive office
2     (1)
The chair and other non-executive members—
(a)
hold and vacate office in accordance with the terms of their
appointments, but
(b)
may resign office by giving notice to the Secretary of State.
25
      (2)
The Secretary of State may remove a person from office as the chair or other
non-executive member on any of the following grounds—
(a)
incapacity,
(b)
misbehaviour, or
(c)
failure to carry out his or her duties as a non-executive member.
30
      (3)
The Secretary of State may suspend a person from office as the chair or other
non-executive member if it appears to the Secretary of State that there are or
may be grounds to remove the person from office under sub-paragraph (2).
      (4)
A non-executive member may not be appointed for a period of more than
four years.
35
      (5)
A person who ceases to be the chair or another non-executive member is
eligible for re-appointment.
Suspension from non-executive office
3     (1)
This paragraph applies where a person is suspended under paragraph 2(3).
      (2)
The Secretary of State must give notice of the decision to the person; and the
40
suspension takes effect on receipt by the person of the notice.

Health and Social Care Bill
Schedule 15 — The National Institute for Health and Care Excellence
325

      (3)
The notice may be—
(a)
delivered in person (in which case, the person is taken to receive it
when it is delivered), or
(b)
sent 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
5
which it is posted).
      (4)
The initial period of suspension must not exceed six months.
      (5)
The Secretary of State may at any time review the suspension.
      (6)
The Secretary of State—
(a)
must review the suspension if requested in writing by the person to
10
do so, but
(b)
need not review the suspension less than three months after the
beginning of the initial period of suspension.
      (7)
Following a review during a period of suspension, the Secretary of State
may—
15
(a)
revoke the suspension, or
(b)
suspend the person for another period of not more than six months
from the expiry of the current period.
      (8)
The 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
20
under paragraph 2(2), or
(b)
decides that there are grounds to do so but does not remove the
person from office under that provision.
4     (1)
This paragraph applies where a person is suspended from office as the chair
under paragraph 2(3).
25
      (2)
The Secretary of State may appoint a non-executive member as the interim
chair to exercise the chair’s functions.
      (3)
The interim chair—
(a)
holds and vacates office in accordance with the terms of the
appointment, but
30
(b)
may resign office by giving notice in writing to the Secretary of State.
      (4)
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,
35
and
(b)
the remainder of the interim chair’s term as a non-executive member.
      (5)
A person who ceases to be the interim chair is eligible for re-appointment.
Remuneration etc. of non-executive members
5     (1)
NICE must pay to the non-executive members such remuneration and
40
allowances as the Secretary of State may determine.

Health and Social Care Bill
Schedule 15 — The National Institute for Health and Care Excellence
326

      (2)
NICE must pay or make provision for the payment of such pensions,
allowances or gratuities as the Secretary of State may determine to or in
respect of any person who is or has been a non-executive member.
      (3)
If a person ceases to be a non-executive member and the Secretary of State
decides that there are exceptional circumstances which mean that the person
5
should be compensated, NICE must pay compensation to the person of such
amount as the Secretary of State may determine.
Staff
6     (1)
NICE may appoint such persons to be employees of NICE as it considers
appropriate.
10
      (2)
Employees of NICE are to be paid such remuneration and allowances as
NICE may determine.
      (3)
Employees of NICE are to be appointed on such other terms and conditions
as NICE may determine.
      (4)
NICE may pay or make provision for the payment of such pensions,
15
allowances or gratuities as it may determine to or in respect of any person
who is or has been an employee of NICE.
      (5)
Before making a determination as to remuneration, pensions, allowances or
gratuities for the purposes of sub-paragraph (2) or (4), NICE must obtain the
approval of the Secretary of State to its policy on that matter.
20
Committees
7     (1)
NICE may appoint such committees and sub-committees as it considers
appropriate.
      (2)
A committee or sub-committee may consist of or include persons who are
not members or employees of NICE.
25
      (3)
NICE may pay such remuneration and allowances as it may determine to
any person who—
(a)
is a member of a committee or sub-committee, but
(b)
is not an employee of NICE,

whether or not that person is a non-executive member of NICE.
30
Procedure
8     (1)
NICE may regulate its own procedure.
      (2)
But regulations may make provision about procedures to be adopted by
NICE for dealing with conflicts of interest of members of NICE or members
of a committee or sub-committee.
35
      (3)
The validity of any act of NICE is not affected by any vacancy among the
members or by any defect in the appointment of a member.
Exercise of functions
9
NICE may arrange for the exercise of its functions on its behalf by—
(a)
a non-executive member;
40

Health and Social Care Bill
Schedule 15 — The National Institute for Health and Care Excellence
327

(b)
an employee (including an executive member);
(c)
a committee or sub-committee.
General powers
10    (1)
NICE may do anything which appears to it to be necessary or expedient for
the purposes of, or in connection with, the exercise of its functions.
5
      (2)
But, except as provided by paragraph 11(3), NICE has no power to borrow
money.
      (3)
NICE may do any of the following only with the approval of the Secretary
of State—
(a)
form, or participate in the forming of, companies,
10
(b)
invest in companies (whether by acquiring assets, securities or rights
or otherwise), and
(c)
provide loans and guarantees and make other kinds of financial
provision to or in respect of companies.
      (4)
The approval of the Secretary of State may be given for the purposes of sub-
15
paragraph (3) subject to such conditions as the Secretary of State thinks
appropriate.
      (5)
In this paragraph “company” has the same meaning as in the Companies
Acts (see section 1(1) of the Companies Act 2006).
Finance
20
11    (1)
The Secretary of State may make payments to NICE out of money provided by
Parliament of such amounts as the Secretary of State thinks appropriate.
      (2)
Payments made under sub-paragraph (1) may be made at such times and on
such conditions (if any) as the Secretary of State thinks appropriate.
      (3)
The Secretary of State may lend money to NICE on such terms (including as
25
to repayment and interest) as the Secretary of State may determine.
Reports
12    (1)
As soon as practicable after the end of each financial year, NICE must
prepare an annual report on how it has exercised its functions during the
year.
30
      (2)
NICE must—
(a)
lay a copy of the report before Parliament, and
(b)
once it has done so, send a copy of it to the Secretary of State.
      (3)
NICE must provide the Secretary of State with such other reports and
information relating to the exercise of NICE’s functions as the Secretary of
35
State may require.
      (4)
In this paragraph and paragraph 14 “financial year” means—
(a)
the period beginning on the day on which section 216 comes into
force and ending on the following 31 March;
(b)
each successive period of 12 months.
40

Health and Social Care Bill
Schedule 15 — The National Institute for Health and Care Excellence
328

Accounts
13    (1)
NICE must keep proper accounts and proper records in relation to the
accounts.
      (2)
The Secretary of State may, with the approval of the Treasury, give
directions to NICE as to—
5
(a)
the content and form of its accounts, and
(b)
the methods and principles to be applied in the preparation of its
accounts.
      (3)
In sub-paragraph (2) a reference to accounts includes NICE’s annual
accounts prepared under paragraph 14 and any interim accounts prepared
10
by virtue of paragraph 15.
14    (1)
NICE must prepare annual accounts in respect of each financial year.
      (2)
NICE must send copies of the annual accounts to the Secretary of State and
the 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
15
direct.
      (3)
The Comptroller and Auditor General must—
(a)
examine, certify and report on the annual accounts, and
(b)
lay copies of them and the report before Parliament.
15    (1)
The Secretary of State may, with the approval of the Treasury, direct NICE
20
to prepare accounts in respect of such period or periods as may be specified
in the direction (“interim accounts”).
      (2)
NICE must send copies of any interim accounts to the Secretary of State and
the Comptroller and Auditor General within such period as the Secretary of
State may direct.
25
      (3)
The Comptroller and Auditor General must—
(a)
examine, certify and report on any interim accounts sent by virtue of
sub-paragraph (2), and
(b)
if the Secretary of State so directs—
(i)
send a copy of the report on the accounts to the Secretary of
30
State, and
(ii)
lay copies of them and the report before Parliament.
Seal and evidence
16    (1)
The application of NICE’s seal must be authenticated by the signature of the
chair or of any employee who has been authorised (generally or specifically)
35
for that purpose.
      (2)
A document purporting to be duly executed under NICE’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.
Status
40
17    (1)
NICE must not be regarded as the servant or agent of the Crown or as
enjoying any status, immunity or privilege of the Crown.

Health and Social Care Bill
Schedule 16 — Part 8: consequential amendments
329

      (2)
NICE’s property must not be regarded as property of, or property held on
behalf of, the Crown.
Schedule 16
Section 233

Part 8: consequential amendments
5
Public Bodies (Admission to Meetings) Act 1960
1
In the Schedule to the Public Bodies (Admission to Meetings) Act 1960
(bodies to which that Act applies) in paragraph 1, after paragraph (m)
insert—
“(n)
the National Institute for Health and Care Excellence;”.
10
Parliamentary Commissioner Act 1967
2
In Schedule 2 to the Parliamentary Commissioner Act 1967 (departments etc.
subject to investigation) at the appropriate place insert—
“National Institute for Health and Care Excellence.”
Local Government Act 1972
15
3
In section 113 of the Local Government Act 1972 (placing of staff of local
authorities at disposal of other local authorities and health bodies) in
subsection (1A)—
(a)
after “agreement with” insert “the National Institute for Health and
Care Excellence,”,
20
(b)
in paragraph (a), after “disposal of” insert “the National Institute for
Health and Care Excellence,”, and
(c)
in paragraph (b), after “employed by” insert “the National Institute
for Health and Care Excellence,”.
House of Commons Disqualification Act 1975 (c. 24)
25
4
In Part 2 of Schedule 1 to the House of Commons Disqualification Act 1975
(bodies of which all members are disqualified) at the appropriate place
insert—
“The National Institute for Health and Care Excellence.”
Northern Ireland Assembly Disqualification Act 1975 (c. 25)
30
5
In Part 2 of Schedule 1 to the Northern Ireland Assembly Disqualification
Act 1975 (bodies of which all members are disqualified) at the appropriate
place insert—
“The National Institute for Health and Care Excellence.”
Employment Rights Act 1996
35
6
In section 218 of the Employment Rights Act 1996 (change of employer) in
subsection (10), after paragraph (cb) insert—
“(cc)
the National Institute for Health and Care Excellence,”.

Health and Social Care Bill
Schedule 16 — Part 8: consequential amendments
330

Freedom of Information Act 2000
7
In Part 6 of Schedule 1 to the Freedom of Information Act 2000 (other public
bodies and offices: general) at the appropriate place insert—
“The National Institute for Health and Care Excellence.”
International Development Act 2002
5
8
In Schedule 1 to the International Development Act 2002 (bodies which may
enter agreements to provide international development assistance etc.) after
the entry for an NHS foundation trust insert—
“The National Institute for Health and Care Excellence.”
National Health Service Act 2006 (c. 41)
10
9     (1)
The National Health Service Act 2006 is amended as follows.
      (2)
In section 9 (NHS contracts) in subsection (4), after paragraph (k) insert—
“(ka)
NICE,”.
      (3)
In section 71 (schemes for losses and liabilities of certain health service
bodies) in subsection (2), after paragraph (d) insert—
15
“(da)
NICE,”.
      (4)
In section 72 (co-operation between NHS bodies)—
(a)
the existing text becomes subsection (1), and
(b)
after that subsection insert—
“(2)
For the purposes of this section, NICE is an NHS body.”
20
      (5)
In section 275 (interpretation) in subsection (1), after the definition of “NHS
trust” insert—
“NICE” means the National Institute for Health and Care
Excellence;”.
National Health Service (Wales) Act 2006 (c. 42)
25
10
In section 7 of the National Health Service (Wales) Act 2006 (NHS contracts)
in subsection (4), after paragraph (k) insert—
“(ka)
the National Institute for Health and Care Excellence,”.
Health and Social Care Act 2008
11    (1)
The Health and Social Care Act 2008 is amended as follows.
30
      (2)
Omit section 45 (standards set by the Secretary of State) and the preceding
cross-heading.
      (3)
In section 53 (information and advice given by Care Quality Commission to
Secretary of State) in subsection (3)—
(a)
at the end of paragraph (a) insert “or”, and
35
(b)
omit paragraph (c) and the word “or” immediately preceding it.
Health Act 2009
12
In section 2 of the Health Act 2009 (duty to have regard to the NHS