Commonwealth Numbered Acts

Health Legislation Amendment Act 1983 No. 54 of 1983 - SECT 99

99. After section 73A of the Principal Act the following section is inserted:
Effect of a grant of registration under sub-section 73 (2)

''73AA. Where an organization becomes, by reason of the Minister having
granted under sub-section 73 (2) an application under section 68, a registered
health benefits organization in respect of a State or the Northern Territory
with effect from 1 February 1984, and that organization was, immediately
before that date, a registered hospital benefits organization, a registered
medical benefits organization, or both, in respect of that State or Territory,
then, by force of this section-

   (a)  the registration of that organization as a registered hospital
        benefits organization, as a registered medical benefits organization,
        or as both a registered hospital benefits organization and
        a registered medical benefits organization, in respect of that State
        or Territory, shall be taken to have been cancelled on that date but
        the hospital benefits fund, the medical benefits fund, or both the
        hospital benefits fund and the medical benefits fund, as the case
        requires, conducted by that organization in respect of that State or
        Territory shall not be wound up;

   (b)  the assets of the hospital benefits fund, of the medical benefits fund
        or of both the hospital benefits fund and the medical benefits fund,
        as the case requires, conducted by the organization in respect of that
        State or Territory shall, with effect from that date, constitute the
        initial assets of the health benefits fund that, under the rules of
        the organization, is to be conducted by the organization in respect of
        that State or Territory; and

   (c)  the organization shall become liable, with effect from that date, to
        meet from the health benefits fund conducted by it in respect of that
        State or Territory all the liabilities, whether present or contingent,
        which, if the hospital benefits fund, the medical benefits fund, or
        both the hospital benefits fund and the medical benefits fund,
        conducted by it in respect of that State or Territory, as the case
        requires, had continued to be conducted, the organization would have
        been required to meet from one or other of those funds.''.