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This is a Bill, not an Act. For current law, see the Acts databases.
New South Wales
Health Services Amendment (Local
Health Networks) Bill 2010
Contents
Page
1 Name of Act 2
2 Commencement 2
Schedule 1 Amendments to Health Services Act 1997 No 154 3
Schedule 2 Consequential amendment of other Acts and
statutory rules 25
I certify that this public bill, which originated in the Legislative Assembly, has
finally passed the Legislative Council and the Legislative Assembly of New
South Wales.
Clerk of the Legislative Assembly.
Legislative Assembly,
Sydney, , 2010
New South Wales
Health Services Amendment (Local
Health Networks) Bill 2010
Act No , 2010
An Act to amend the Health Services Act 1997 to implement a health network system
for the purposes of the National Health and Hospitals Network Agreement; to make
consequential amendments to certain other Acts and statutory rules; and for other
purposes.
I have examined this bill and find it to correspond in all respects with the bill as
finally passed by both Houses.
Assistant Speaker of the Legislative Assembly.
Clause 1 Health Services Amendment (Local Health Networks) Bill 2010
The Legislature of New South Wales enacts:
1 Name of Act
This Act is the Health Services Amendment (Local Health Networks)
Act 2010.
2 Commencement
(1) This Act commences on a day or days to be appointed by proclamation,
except as provided by subsection (2).
(2) Schedule 1.1 [40], [42], [44][48] and [50] commence on the date of
assent to this Act.
Page 2
Health Services Amendment (Local Health Networks) Bill 2010
Amendments to Health Services Act 1997 No 154 Schedule 1
Schedule 1 Amendments to Health Services Act
1997 No 154
1.1 Principal amendments
[1] Section 4 Objects of Act
Omit section 4 (a). Insert instead:
(a) to establish a system of local health networks for the whole
of the State to deliver health services and to enable their
recognition as health networks for the purposes of the
NHHN Agreement, and
[2] Section 4 (c1)
Insert after section 4 (c):
(c1) to enable the recognition of some statutory health
corporations and affiliated health organisations as health
networks for the purposes of the NHHN Agreement, and
[3] Section 6 What is the public health system?
Omit "health support" from section 6 (d).
[4] Section 8 What is a local health network?
Omit the note at the end of the section.
[5] Section 10 Functions of local health networks
Insert after section 10 (f):
(f1) to co-operate with other local health networks and the
Director-General in relation to the provision of services
involving more than one public health organisation or on a
State-wide basis,
[6] Section 25 Functions of chief executive generally
Omit "subject to the control and direction of the Director-General" from
section 25 (b).
Insert instead "accountable to the local health network governing council
constituted for the network".
Page 3
Health Services Amendment (Local Health Networks) Bill 2010
Schedule 1 Amendments to Health Services Act 1997 No 154
[7] Section 26 Constitution of local health network governing council
Omit section 26 (2) and (3). Insert instead:
(2) A local health network governing council is to consist of 6 to 13
persons appointed by the Minister, selected in accordance with
subsections (3) and (3A).
(3) The Minister is to select the membership of a local health
network governing council so that the membership of the council
has an appropriate mix of skills and expertise required to oversee
and provide guidance to the network, including members who:
(a) have expertise and experience in health management,
business management and financial management, and
(b) have expertise and experience in the provision of clinical
and other health services, and
(c) where appropriate, are representatives of universities,
clinical schools or research centres, and
(d) have knowledge and understanding of the community
served by the network, and
(e) have other backgrounds, skills, expertise, knowledge or
experience appropriate for the network.
(3A) A local health network governing council is to have at least one
member (who may also be one of the kinds of members referred
to in subsection (3) (a)(e)) who has expertise, knowledge or
experience in relation to Aboriginal health.
[8] Section 27 Role of area health advisory councils
Omit the section.
[9] Section 28
Omit the section. Insert instead:
28 Functions of local health network governing councils
The local health network governing council for a local health
network has the following functions:
(a) to ensure effective clinical and corporate governance
frameworks are established to support the maintenance
and improvement of standards of patient care and services
by the local health network and to approve those
frameworks,
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Health Services Amendment (Local Health Networks) Bill 2010
Amendments to Health Services Act 1997 No 154 Schedule 1
(b) to approve systems:
(i) to support the efficient and economic operation of
the local health network, and
(ii) to ensure the network manages its budget to ensure
performance targets are met, and
(iii) to ensure that network resources are applied
equitably to meet the needs of the community
served by the network,
(c) to ensure strategic plans to guide the delivery of services
are developed for the local health network and to approve
those plans,
(d) to provide strategic oversight of and monitor the local
health network's financial and operational performance in
accordance with the State-wide performance framework
against the performance measures in the performance
agreement for the network,
(e) to make recommendations for the appointment of the chief
executive of the local health network and, where it
considers it appropriate to do so, to make
recommendations concerning the removal of the chief
executive,
(f) to confer with the chief executive of the local health
network in connection with the operational performance
targets and performance measures to be negotiated in the
service agreement for the network under the NHHN
Agreement,
(g) to approve the service agreement for the local health
network under the NHHN Agreement,
(h) to seek the views of providers and consumers of health
services, and of other members of the community served
by the local health network, as to the network's policies,
plans and initiatives for the provision of health services,
and to confer with the chief executive of the network on
how to support, encourage and facilitate community and
clinician involvement in the planning of network services,
(i) to advise providers and consumers of health services, and
other members of the community served by the local
health network, as to the network's policies, plans and
initiatives for the provision of health services,
(j) to endorse the local health network's annual report,
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Health Services Amendment (Local Health Networks) Bill 2010
Schedule 1 Amendments to Health Services Act 1997 No 154
(k) to liaise with the governing councils of other local health
networks and network governed health corporations in
relation to both local and State-wide initiatives for the
provision of health services,
(l) such other functions as are conferred or imposed on it by
the regulations.
[10] Section 29
Omit sections 29 and 29A. Insert instead:
29 Removal of members of local health network governing council
and appointment of administrator
(1) The Minister may at any time, for any reason or no reason and
without notice, by order published in the Gazette:
(a) remove any member or all members of a local health
network governing council from office, or
(b) remove all members of a local health network governing
council from office and appoint, as administrator of the
local health network concerned, the chief executive of the
network or any other person specified in the order for such
period as may be specified in the order.
(2) If the Minister appoints an administrator of a local health network
under this section, the Minister is (as soon as is reasonably
practicable after the appointment is made) to make a statement in
Parliament concerning the basis for the appointment of the
administrator.
(3) An administrator of a local health network has and may exercise,
subject to any conditions that may be specified in the order by
which the administrator is appointed, all the functions of the chief
executive and governing council for that network.
(4) An administrator of a local health network is entitled to be paid
from the funds of that network such remuneration (including
travelling and subsistence allowances) as the Minister may from
time to time determine in respect of the administrator.
(5) The regulations may make provision with respect to
administrators of local health networks.
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Health Services Amendment (Local Health Networks) Bill 2010
Amendments to Health Services Act 1997 No 154 Schedule 1
[11] Section 32 Determination of role, functions and activities of local health
networks
Omit "the chief executive of the area health service" from section 32 (1).
Insert instead "the local health network".
[12] Section 41 Constitution of statutory health corporations
Omit section 41 (3). Insert instead:
(3) A statutory health corporation is to be a chief executive governed
health corporation, a board governed health corporation or a
network governed health corporation, as specified from time to
time in Schedule 2.
[13] Section 42 Amendment of Schedule 2 (Statutory health corporations)
Omit section 42 (a). Insert instead:
(a) amend Schedule 2 by inserting, altering or omitting the
name of a statutory health corporation, or
(a1) amend Schedule 2 by changing its governance from:
(i) chief executive governance to board governance or
network governance, or
(ii) board governance to chief executive governance or
network governance, or
(iii) network governance to chief executive governance
or board governance, or
[14] Chapter 4, Part 2, heading
Omit the Part heading. Insert instead:
Part 2 Control and management of statutory
health corporations
[15] Section 52C
Omit the section. Insert instead:
52C Functions of chief executive generally
The chief executive of a chief executive governed health
corporation has, and may exercise, such functions as are
conferred or imposed on the chief executive by or under this or
any other Act.
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Health Services Amendment (Local Health Networks) Bill 2010
Schedule 1 Amendments to Health Services Act 1997 No 154
[16] Chapter 4, Part 2, Division 3
Insert after Division 2:
Division 3 Network governed health corporations
52F Governing councils of network governed health corporations
(1) There is constituted a governing council for each network
governed health corporation.
(2) The provisions of Division 2 of Part 2 of Chapter 3 (except
section 26 (1)) apply in relation to a governing council of a
network governed health corporation in the same way as they
apply to a local health network governing council, subject to the
following modifications:
(a) a reference in those provisions (however expressed) to a
local health network governing council is to be read as if it
were a reference to the governing council for a network
governed health corporation,
(b) a reference in those provisions (however expressed) to a
local health network is to be read as if it were a reference
to a network governed health corporation,
(c) a reference in those provisions (however expressed) to the
chief executive of a local health network is to be read as if
it were a reference to the chief executive of a network
governed health corporation,
(d) such other modifications as may be prescribed by the
regulations.
52G Chief executives of network governed health corporations
(1) A chief executive is to be appointed for each network governed
health corporation.
(2) The provisions of Division 1 of Part 2 of Chapter 3 (except
section 23 (1)) apply in relation to a chief executive of a network
governed health corporation in the same way as they apply to a
chief executive of a local health network, subject to the following
modifications:
(a) a reference in those provisions (however expressed) to the
chief executive of a local health network is to be read as if
it were a reference to the chief executive of a network
governed health corporation,
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Health Services Amendment (Local Health Networks) Bill 2010
Amendments to Health Services Act 1997 No 154 Schedule 1
(b) a reference in those provisions (however expressed) to a
local health network is to be read as if it were a reference
to a network governed health corporation,
(c) a reference in those provisions (however expressed) to a
local health network governing council is to be read as if it
were a reference to the governing council of a network
governed health corporation,
(d) such other modifications as may be prescribed by the
regulations.
[17] Section 53 Determination of functions of statutory health corporations
Insert at the end of section 53 (1) (b):
, or
(c) in the case of a network governed health corporation, to the
corporation.
[18] Section 53 (3) (b)
Insert "or network governed health corporation" after "corporation".
[19] Section 58 Contracts of statutory health corporations
Insert "or network governed health corporation" after "corporation" in
section 58 (4) (b).
[20] Section 60 Statutory health corporation may make by-laws
Insert "or network governed health corporation" after "corporation" in
section 60 (7) (b).
[21] Section 61 Delegations by statutory health corporations
Insert "or network governed health corporation" after "corporation" in
section 61 (5) (b).
[22] Section 62B
Insert after section 62A:
62B Recognition of networked affiliated health organisations
(1) The Minister may, by order published in the Gazette, declare that
one or more affiliated health organisations are to be treated as a
network for the purposes of the NHHN Agreement in respect of
some or all of their recognised establishments or recognised
services.
Page 9
Health Services Amendment (Local Health Networks) Bill 2010
Schedule 1 Amendments to Health Services Act 1997 No 154
(2) Such an order may be made:
(a) on the application of one or more affiliated health
organisations, or
(b) on the Minister's own initiative.
(3) The Minister may make an order pursuant to the application of
one or more affiliated health organisations only if the Minister is
satisfied that:
(a) in the case of an application by one affiliated health
organisation:
(i) the affiliated health organisation has more than one
recognised establishment or service, or
(ii) the affiliated health organisation provides State
wide services or services of State significance, or
(b) in the case of an application by two or more affiliated
health organisations, the affiliated health organisations
have agreed to form a health network.
(4) An order under this section may specify a name for the network.
(5) An order cannot be made under this section in relation to an
affiliated health organisation except with the concurrence of the
organisation (or its governing body).
[23] Section 122 Functions of the Director-General
Insert after section 122 (c):
(c1) to provide governance, oversight and control of the public
health system and the statutory health organisations within
it,
[24] Section 122 (f1)
Insert after section 122 (f):
(f1) to give directions to statutory health organisations,
Page 10
Health Services Amendment (Local Health Networks) Bill 2010
Amendments to Health Services Act 1997 No 154 Schedule 1
[25] Section 126 Director-General may enter into performance agreement
with a public health organisation
Omit section 126 (2). Insert instead:
(2) A performance agreement may:
(a) include the provisions of a service agreement (within the
meaning of the NHHN Agreement) for the organisation,
and
(b) set operational performance targets for the organisation in
the exercise of specified functions during a specified
period, and
(c) provide for the evaluation and review of results in relation
to those targets, and
(d) provide for the provision of such data or other information
by a public health organisation concerning the exercise of
its functions that the State determines is required to
comply with the State's performance reporting obligations
under the NHHN Agreement.
[26] Section 126B Director-General to provide certain services
Omit section 126B (1). Insert instead:
(1) The Director-General may provide services for any or both of the
following purposes:
(a) to support the public health system and public health
organisations and the public hospitals they control,
(b) to enable the co-ordinated provision of health services
involving more than one public health organisation or on a
State-wide basis.
[27] Section 126G Directions by Minister in relation to acquisition of services
Omit "health support services" from section 126G (1) (a).
Insert instead "services".
[28] Section 126G (2) (e) (i)
Omit "health support services". Insert instead "services".
Page 11
Health Services Amendment (Local Health Networks) Bill 2010
Schedule 1 Amendments to Health Services Act 1997 No 154
[29] Section 131 Transfer of hospitals, health institutions, services and
property between statutory health organisations
Omit section 131 (5).
[30] Chapter 11 Miscellaneous
Omit the last sentence from the Introduction at the beginning of the Chapter.
[31] Section 133B
Insert after section 133A:
133B Personal liability of members of boards or governing councils of
statutory health organisations
A matter or thing done or omitted to be done by:
(a) a statutory health organisation, or
(b) the board or governing council of a statutory health
organisation, or
(c) a member of the board or governing council of a statutory
health organisation, or
(d) a person acting under the direction of such an organisation,
board or governing council,
does not, if the matter or thing was done or omitted to be done in
good faith for the purposes of executing this or any other Act,
subject such a member or person personally to any action,
liability, claim or demand.
[32] Section 136 Proof of certain matters not required
Insert ", governing council or governing body" after "board" wherever
occurring.
[33] Section 138 Repeal of the Area Health Services Act 1986 No 50 and the
Public Hospitals Act 1929 No 8
Omit the section.
Page 12
Health Services Amendment (Local Health Networks) Bill 2010
Amendments to Health Services Act 1997 No 154 Schedule 1
[34] Schedule 1
Omit the Schedule. Insert instead:
Schedule 1 Names and areas of local health
networks
(Sections 17 and 18)
Column 1 Column 2 Column 3
Name of local health Description of local Description of area
network government area or other than local
city government area
Sydney Local Health Ashfield, Burwood,
Network Canada Bay, Canterbury,
Leichhardt, Marrickville,
Strathfield, Sydney (part)
South Western Sydney Bankstown, Camden,
Local Health Network Campbelltown, Fairfield,
Liverpool, Wingecarribee,
Wollondilly
South Eastern Sydney Botany Bay, Hurstville, Lord Howe Island
Local Health Network Kogarah, Randwick,
Rockdale, Sutherland,
Sydney (part), Waverley,
Woollahra
Illawarra Shoalhaven Kiama, Shellharbour,
Local Health Network Shoalhaven, Wollongong
Western Sydney Local Auburn, Baulkham Hills,
Health Network Blacktown, Holroyd,
Parramatta
Nepean Blue Mountains Blue Mountains,
Local Health Network Hawkesbury, Lithgow,
Penrith
Northern Sydney Local Hornsby, Hunters Hill,
Health Network Ku-ring-gai, Lane Cove,
Manly, Mosman, North
Sydney, Pittwater, Ryde,
Warringah, Willoughby
Central Coast Local Health Gosford, Wyong
Network
Page 13
Health Services Amendment (Local Health Networks) Bill 2010
Schedule 1 Amendments to Health Services Act 1997 No 154
Column 1 Column 2 Column 3
Name of local health Description of local Description of area
network government area or other than local
city government area
Hunter New England Local Armidale Dumaresq,
Health Network Cessnock, Dungog, Glen
Innes Severn, Gloucester,
Great Lakes, Greater
Taree, Gunnedah, Guyra,
Gwydir, Inverell, Lake
Macquarie, Liverpool
Plains, Maitland, Moree
Plains, Muswellbrook,
Narrabri, Newcastle, Port
Stephens, Singleton,
Tamworth Regional,
Tenterfield, Upper Hunter,
Uralla, Walcha
Murrumbidgee Local Balranald, Berrigan,
Health Network Bland, Boorowa,
Carrathool, Conargo,
Coolamon, Cootamundra,
Corowa, Deniliquin,
Greater Hume, Griffith,
Gundagai, Harden, Hay,
Jerilderie, Junee, Leeton,
Lockhart, Murray,
Murrumbidgee,
Narrandera, Temora,
Tumbarumba, Tumut,
Urana, Wagga Wagga,
Wakool, Wentworth,
Young
Southern NSW Local Bega Valley, Bombala,
Health Network Cooma-Monaro,
Eurobodalla, Goulburn
Mulwaree, Palerang,
Queanbeyan, Snowy
River, Upper Lachlan,
Yass Valley
Page 14
Health Services Amendment (Local Health Networks) Bill 2010
Amendments to Health Services Act 1997 No 154 Schedule 1
Column 1 Column 2 Column 3
Name of local health Description of local Description of area
network government area or other than local
city government area
Western NSW Local Bathhurst Regional,
Health Network Blaney, Bogan, Bourke,
Brewarrina, Cabonne,
Cobar, Coonamble,
Cowra, Dubbo, Forbes,
Gilgandra, Lachlan,
Mid-Western Regional,
Narromine, Oberon,
Orange, Parkes, Walgett,
Warren, Warrumbungle,
Weddin, Wellington
Far West Local Health Broken Hill, Central Unincorporated Far West
Network Darling
Mid North Coast Local Bellingen, Coffs Harbour,
Health Network Hastings, Kempsey,
Nambucca
Northern NSW Local Ballina, Byron, Clarence
Health Network Valley, Kyogle, Lismore,
Richmond Valley, Tweed
[35] Schedule 2 Statutory health corporations
Omit "Chief executive" from Column 2 in relation to the matter relating to The
Sydney Children's Hospitals Network (Randwick and Westmead)
(incorporating The Royal Alexandra Hospital for Children).
Insert instead "Network".
[36] Schedule 2
Insert after the matter relating to the Clinical Excellence Commission, in
columns 1 and 2 respectively:
Forensic Mental Health Network Network
[37] Schedule 4 Transfers, dissolutions, amalgamations and changes of
name or nature of governance
Omit clause 4 (1) (b) and (2) (b). Insert instead, respectively:
(b) in the case of a board governed health corporation or
network governed health corporation, the members of the
board or governing council of the corporation (as the case
Page 15
Health Services Amendment (Local Health Networks) Bill 2010
Schedule 1 Amendments to Health Services Act 1997 No 154
requires) cease to hold office, but are not entitled to be paid
any compensation by reason of ceasing to hold office, and
[38] Schedule 4, clause 4 (3) (b)
Omit the paragraph. Insert instead:
(b) the members of the board of a board governed health
corporation or the governing council of a network
governed health corporation involved in the amalgamation
cease to hold office and:
(i) if the amalgamated corporation is a board governed
health corporation or network governed health
corporation, are eligible (if otherwise qualified) to
be appointed as members of the board or governing
council of the amalgamated corporation, and
(ii) are not entitled to be paid any compensation by
reason of ceasing to hold office, and
[39] Schedule 4, clause 4 (4A) and (4B)
Omit clause 4 (4A). Insert instead:
(4A) Change of governance orders
On and from the date specified in an order made under
section 43 (1) (d) changing the nature of governance of a
statutory health corporation from board governance or network
governance to chief executive governance, the members of the
board or governing council for the corporation cease to hold
office, but are not entitled to be paid any compensation by reason
of ceasing to hold office.
(4B) On and from the date specified in an order made under
section 43 (1) (d) changing the nature of governance of a
statutory health corporation from board governance to network
governance or from network governance to board governance,
the members of the existing board or governing council cease to
hold office and:
(a) are eligible (if otherwise qualified) to be appointed as
members of the new board or governing council of the
corporation, and
(b) are not entitled to be paid any compensation by reason of
ceasing to hold office.
Page 16
Health Services Amendment (Local Health Networks) Bill 2010
Amendments to Health Services Act 1997 No 154 Schedule 1
[40] Schedule 4, clause 10 (1) (d1)
Insert after clause 10 (1) (d):
(d1) the transferee has all the entitlements and obligations of
the transferor in relation to those assets, rights and
liabilities that the transferor would have had but for the
order, whether or not those entitlements and obligations
were actual or potential at the time the transfer took effect,
[41] Schedule 4, clause 16 (1)
Insert "or governing council" before "or managing body".
[42] Schedule 4, clause 18 (1A)
Insert after clause 18 (1):
(1A) Without limiting subclause (1), a provision referred to in that
subclause may make provision for or with respect to the legal
consequences of the differential transfer of rights, obligations or
other liabilities under the same contract or other agreement to
more than one transferee.
[43] Schedule 5 Provisions relating to members and procedure of health
corporation boards
Omit clause 11.
[44] Schedule 7, heading
Omit "and transitional" from the heading.
Insert instead ", transitional and other".
[45] Schedule 7, clause 1
Insert at the end of clause 1 (1):
Health Services Amendment (Local Health Networks) Act 2010
[46] Schedule 7, clause 1 (2)
Omit the subclause. Insert instead:
(2) If the regulations so provide, any such provision may:
(a) have effect despite any specified provision of this Act
(including a provision of this Schedule), and
(b) take effect from the date of assent to the Act concerned or
a later date.
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Health Services Amendment (Local Health Networks) Bill 2010
Schedule 1 Amendments to Health Services Act 1997 No 154
[47] Schedule 7, clause 1 (3)
Omit "in the Gazette". Insert instead "on the NSW legislation website".
[48] Schedule 7, Part 7
Insert after Part 6:
Part 7 Provisions consequent on enactment of
Health Services Amendment (Local Health
Networks) Act 2010
75 Definitions
In this Part:
amending Act means the Health Services Amendment (Local
Health Networks) Act 2010.
existing area health advisory council means an area health
advisory council for an existing area health service.
existing area health service means an area health service in
existence immediately before the network establishment day.
existing by-laws means any by-laws made by an area health
service that were in force immediately before the network
establishment day.
local health network means a local health network constituted by
this Act (as in force on the network establishment day).
network establishment day means the day on which Schedule 1
is substituted by the amending Act.
76 Dissolution of existing area health services
On and from the network establishment day:
(a) each existing area health service is dissolved, and
(b) each existing area health advisory council is dissolved, and
(c) the members (including chairpersons) of each existing area
health advisory council cease to hold office as such, and
(d) any person who ceases to be a member of an existing area
health advisory council because of the operation of this
clause is not entitled to any compensation for the loss of
that office.
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Health Services Amendment (Local Health Networks) Bill 2010
Amendments to Health Services Act 1997 No 154 Schedule 1
77 Transfers of assets, rights, liabilities and staff of area health
services
(1) Without limiting the generality of section 131, the Governor may
make an order under that section during the transitional period as
if any reference in the section to a statutory health organisation
also included references to both a proposed local health network
and proposed statutory health corporation.
(2) Section 131 (3) does not apply during the transitional period in
relation to an order made under that section that transfers to a
proposed local health network, proposed statutory health
corporation, local health network or statutory health corporation:
(a) a public hospital, health institution, health service or health
support service under the control of an area health service,
or
(b) any assets, rights or liabilities of an area health service.
(3) A transfer under an order made under section 131 to a proposed
local health network or proposed statutory health corporation is
taken to have effect on the network establishment day.
(4) The provisions of Schedule 4 apply in relation to any of the
residual assets, rights and liabilities of each area health service
dissolved by operation of clause 76 as if:
(a) an order under section 20 (1) (a) had been made dissolving
the service on the network establishment day, and
(b) Schedule 4 continued to apply in relation to the dissolution
of an area health service by an order made under that
section in the same way as it applied to such a dissolution
immediately before the network establishment day.
(5) The Governor may make an order under section 131 transferring
to any one or more statutory health organisations any residual
assets, rights or liabilities of an area health service that are vested
in the Minister by operation of subclause (4) as if the Minister
were a statutory health organisation for the purposes of that
section. Section 131 (3) does not apply in relation to such an
order.
(6) Without limiting clause 18 of Schedule 4, regulations of a savings
and transitional nature may be made consequent on the
dissolution of an existing area health service by clause 76.
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Health Services Amendment (Local Health Networks) Bill 2010
Schedule 1 Amendments to Health Services Act 1997 No 154
(7) In this clause:
proposed local health network means a local health network to
be constituted on the network establishment day.
proposed statutory health corporation means a statutory health
corporation to be constituted on the network establishment day.
residual assets, rights and liabilities of an existing area health
service dissolved by operation of clause 76 means any assets,
rights and liabilities of the area health service that:
(a) have not already been transferred under this Act to another
person before the network establishment day, and
(b) will not otherwise be transferred to a local health network
or statutory health corporation on the network
establishment day by means of an order made under
section 131 or any other provision of this Act.
transitional period means the period commencing on the day on
which this clause commences and ending on the day immediately
after the network establishment day.
78 Constitution of local health networks
(1) Each of the local health networks specified in Schedule 1 (as
substituted by the amending Act) is constituted as such on the
network establishment day, subject to subclause (2).
(2) Nothing in this clause prevents the amendment of Schedule 1
(whether on or after the network establishment day) by an order
made under section 19 or 20.
79 Change in corporate governance of The Sydney Children's
Hospitals Network
(1) The SCHN becomes a network governed health corporation on
the reconstitution day.
(2) A person who was a member of the existing advisory council of
the SCHN immediately before the reconstitution day:
(a) ceases to be a member of the existing advisory council on
that day, and
(b) if the person consents, becomes instead a member of the
governing council of the SCHN.
(3) A person who becomes a member of the governing council of the
SCHN by operation of subclause (2) holds office as such for a
term of 2 years commencing on the reconstitution day unless the
person vacates office before the expiry of that term.
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Health Services Amendment (Local Health Networks) Bill 2010
Amendments to Health Services Act 1997 No 154 Schedule 1
(4) The provisions of this clause have effect despite anything to the
contrary in Division 2 of Part 2 of Chapter 3 (as applied to
network governed health corporations by section 52F), including
in relation to the maximum number of members for the governing
council of a network governed health corporation.
(5) In this clause:
existing advisory council of the SCHN means the advisory
council constituted for the SCHN under section 52D that was in
existence immediately before the reconstitution day.
reconstitution day means the day on which Schedule 1 [35] to the
amending Act commences.
SCHN means the statutory health corporation with the corporate
name "The Sydney Children's Hospitals Network (Randwick
and Westmead) (incorporating The Royal Alexandra Hospital for
Children)".
80 Preservation of existing by-laws
(1) The regulations may make provision for or with respect to the
continued application of existing by-laws made in relation to
public hospitals, health institutions, health services or health
support services controlled by area health services until new
by-laws are made under this Act in relation to such hospitals,
institutions or services.
(2) Any regulations made for the purposes of this clause may provide
for the continued application of existing by-laws subject to such
modifications as may be prescribed by the regulations.
81 Updating of references to area health services
(1) A reference in any other Act or instrument made under any other
Act or in any instrument of any kind to an area health service
constituted under this Act (other than a particular area health
service) is to be read on and from the network establishment day
as being a reference to a local health network constituted under
this Act.
(2) The regulations may make provision for or with respect to how a
reference in any other Act or instrument made under any other
Act or in any instrument of any kind to a particular area health
service (or a hospital, health institution, health service or health
support service controlled by a particular area health service) is
to be read on and from the network establishment day.
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Health Services Amendment (Local Health Networks) Bill 2010
Schedule 1 Amendments to Health Services Act 1997 No 154
82 Relationship of this Part with Interpretation Act 1987
The provisions of this Part are in addition to, and do not derogate
from, the provisions of section 26 of the Interpretation Act 1987.
Note. Section 26 of the Interpretation Act 1987 enables a power to make
instruments of a legislative or administrative character that is to be
conferred by an enacted but uncommenced amendment to an Act to be
exercised before the amendment commences. Any such instrument will
have effect on the commencement of the amendment.
[49] Dictionary
Omit the definitions of area, area health service, board and chief executive
from Part 1.
Insert in alphabetical order:
area of a local health network means the area described in
Column 2 or 3 (or both) of Schedule 1 in respect of which the
local health network is constituted.
chief executive:
(a) of a local health network--means the chief executive of
that network, or
(b) of a statutory health corporation--means the chief
executive of that corporation, or
(c) of an affiliated health organisation--means the person
who is responsible to the governing body of the
organisation for the management of its recognised
establishments and recognised services.
local health network--see section 8.
local health network governing council means a local health
network governing council for a local health network constituted
under section 26.
modification includes addition, exception, omission or
substitution.
network governed health corporation means a statutory health
corporation that, as specified in Schedule 2, is network governed.
NHHN Agreement means the National Health and Hospitals
Network Agreement entered into by the Commonwealth, certain
States and the Territories in April 2010, as in force from time to
time.
statutory health organisation means a local health network or a
statutory health corporation.
Page 22
Health Services Amendment (Local Health Networks) Bill 2010
Amendments to Health Services Act 1997 No 154 Schedule 1
[50] Dictionary, Part 1
Omit the definitions of assets, liabilities and rights.
Insert in alphabetical order:
assets means any legal or equitable estate or interest (whether
present or future, whether vested or contingent and whether
personal or assignable) in real or personal property of any
description (including money), and includes securities, choses in
action and documents.
liabilities means any liabilities, debts or obligations (whether
present or future, whether vested or contingent and whether
personal or assignable).
rights means any rights, powers, privileges or immunities
(whether present or future, whether vested or contingent and
whether personal or assignable).
1.2 General amendments updating references to local health
networks and local health network governing councils and
minor amendments
[1] The whole Act (except the long title, section 5 and Schedule 7 and except
as otherwise amended by this Act)
Omit each expression specified in Column 1 of the following Table wherever
occurring (including headings and notes).
Insert instead the expression specified in Column 2 opposite the expression
specified in Column 1:
Table
Column 1 Column 2
"An area health service" "A local health network"
"an area health service" "a local health network"
"Area health service" "Local health network"
"Area health services" "Local health networks"
"area health services" "local health networks"
"area health service's" "local health network's"
any other reference to "area health "local health network"
service"
"An area health advisory council" "A local health network governing council"
"an area health advisory council" "a local health network governing council"
Page 23
Health Services Amendment (Local Health Networks) Bill 2010
Schedule 1 Amendments to Health Services Act 1997 No 154
Column 1 Column 2
"Area health advisory councils" "Local health network governing councils"
"area health advisory councils" "local health network governing councils"
"area health advisory council's" "local health network governing council's"
any other reference to "area health "local health network governing council"
advisory council"
[2] Section 8 What is a local health network?
Omit "the services" from section 8 (2). Insert instead "the networks".
[3] Section 24 Chief executive to manage and control affairs of local health
network
Omit "the service" wherever occurring. Insert instead "the network".
[4] Section 36 Power to accept property by gifts, devises and bequests
Omit "the service" from section 36 (1). Insert instead "the network".
[5] Chapter 10, Part 1A, heading
Omit "health support".
[6] Schedule 4 Transfers, dissolutions, amalgamations and changes of
name or nature of governance
Omit "area health organisations and statutory health corporations" from
the heading to clause 6.
Insert instead "statutory health organisations".
Page 24
Health Services Amendment (Local Health Networks) Bill 2010
Consequential amendment of other Acts and statutory rules Schedule 2
Schedule 2 Consequential amendment of other Acts
and statutory rules
2.1 Adoption Act 2000 No 75
Dictionary
Omit "an area health service" from the definitions of designated person and
hospital wherever occurring.
Insert instead "a local health network".
2.2 Carers (Recognition) Act 2010 No 20
Section 4 Definitions
Omit "an area health service" from paragraph (b) of the definition of public
sector agency.
Insert instead "a local health network".
2.3 Child Protection (Offenders Registration) Act 2000 No 42
Schedule 1 Scheduled agencies
Omit the matter relating to each of the area health services referred to in the
Schedule.
Insert at the end of the Schedule:
A local health network constituted under the Health Services Act
1997
2.4 Children (Criminal Proceedings) Regulation 2005
[1] Clause 21 Constitution of Coordination Groups
Omit "an area health service" and "appropriate area health service" from
clause 21 (1) (d) wherever occurring.
Insert instead "a local health network" and "appropriate local health network",
respectively.
[2] Clause 28A Evaluation and monitoring of scheme
Omit "an area health service" from paragraph (c) of the definition of
participating State agency in clause 28A (2).
Insert instead "a local health network".
Page 25
Health Services Amendment (Local Health Networks) Bill 2010
Schedule 2 Consequential amendment of other Acts and statutory rules
[3] Clause 38 Savings and transitional provisions
Insert after clause 38 (2):
(2A) The amendment made to clause 21 (1) by the Health Services
Amendment (Local Health Networks) Act 2010 does not affect the
continued validity of any nomination made by an area health
service under clause 21 (1) (d) before the commencement of that
amendment.
2.5 Children and Young Persons (Care and Protection) Act 1998
No 157
Section 30 Director-General's investigations and assessment
Omit "an area health service" from the note to the section.
Insert instead "a local health network".
2.6 Crimes (Administration of Sentences) Regulation 2008
Clause 206 Provision of information relating to offenders
Omit "area health service" from clause 206 (1) (a).
Insert instead "local health network".
2.7 Drug Misuse and Trafficking Act 1985 No 226
[1] Section 39PA Order for disposal of dangerous exhibit
Omit paragraph (a) of the definition of analyst in section 39PA (5).
Insert instead:
(a) any person employed by the Government of New South
Wales as an analyst (including a person employed as an
analyst in the NSW Health Service), or
[2] Section 43 Certificate evidence
Omit paragraph (a) of the definition of analyst in section 43 (6). Insert instead:
(a) any person employed by the Government of New South
Wales as an analyst (including a person employed as an
analyst in the NSW Health Service), and
Page 26
Health Services Amendment (Local Health Networks) Bill 2010
Consequential amendment of other Acts and statutory rules Schedule 2
2.8 Gaming Machines Regulation 2010
[1] Clause 37 Threshold increase applications--consultation requirements
Omit "area health service" from clause 37 (2) (d).
Insert instead "local health network".
[2] Clause 41 Consultation and advertising requirements
Omit "area health service" from clause 41 (2) (b) (ii).
Insert instead "local health network".
2.9 Guardianship Act 1987 No 257
[1] Section 3 Definitions
Omit "an area health service" from paragraph (a) (v) of the definition of
exempt premises in section 3 (1).
Insert instead "a local health network".
[2] Section 45AA Tribunal may approve clinical trials
Omit "an area health service" from paragraph (b) (i) of the definition of ethics
committee in section 45AA (5).
Insert instead "a local health network".
2.10 Health Administration Act 1982 No 135
[1] Section 4 Definitions
Omit the definition of area health service from section 4 (1).
Insert in alphabetical order:
local health network means a local health network constituted
under the Health Services Act 1997.
[2] Section 20L Definitions
Omit "an area health service" from paragraph (a) of the definition of relevant
health services organisation.
Insert instead "a local health network".
Page 27
Health Services Amendment (Local Health Networks) Bill 2010
Schedule 2 Consequential amendment of other Acts and statutory rules
2.11 Health Practitioner Regulation (Adoption of National Law)
Act 2009 No 86
Schedule 1 Modification of Health Practitioner Regulation National Law
Omit "an area health service" from clauses 6 (2) (i), 7 (2) (a), 8 (2) (a) and
9 (2) (a) of Schedule 5C of the modifications to the Health Practitioner
Regulation National Law set out in Schedule 1 [25] wherever occurring.
Insert instead "a local health network".
2.12 Health Records and Information Privacy Regulation 2006
Clause 5 Certain public sector agencies to be treated as a single agency
Omit "area health services" from clause 5 (c).
Insert instead "local health networks".
2.13 Health Services Regulation 2008
Clause 12
Omit the clause. Insert instead:
12 Local health network descriptions
(1) A reference in Column 2 of Schedule 1 to the Act to Sydney
(part), in relation to the Sydney Local Health Network, is a
reference to the following Statistical Local Areas:
(a) Sydney (C)West,
(b) Sydney (C)South.
(2) A reference in Column 2 of Schedule 1 to the Act to Sydney
(part), in relation to the South Eastern Sydney Local Health
Network, is a reference to the following Statistical Local Areas:
(a) Sydney (C)Inner,
(b) Sydney (C)East.
(3) In this clause:
Statistical Local Area means a Statistical Local Area specified in
the document entitled Australian Standard Geographical
Classification (ASGC), published by the Australian Bureau of
Statistics in July 2010.
Page 28
Health Services Amendment (Local Health Networks) Bill 2010
Consequential amendment of other Acts and statutory rules Schedule 2
2.14 Independent Commission Against Corruption Regulation
2010
Clause 19 Principal officers of public authorities
Omit clause 19 (1) (b). Insert instead:
(b) a local health network within the meaning of the Health
Services Act 1997--the chief executive of the local health
network,
2.15 Land Acquisition (Charitable Institutions) Act 1946 No 55
Section 2 Definitions
Omit "an area health service" from paragraph (b) of the definition of
Institution in section 2 (1).
Insert instead "a local health network".
2.16 Local Government Act 1993 No 30
Section 556 What land is exempt from all rates, other than water supply
special rates and sewerage special rates?
Omit "an area health service" from section 556 (1) (k).
Insert instead "a local health network".
2.17 Marine Safety Act 1998 No 121
Schedule 1 Alcohol and drug use--random breath testing and related
matters
Omit "an area health service" from paragraph (a) of the definition of hospital
in clause 1 (1).
Insert instead "a local health network".
2.18 Mental Health Act 2007 No 8
Section 162A Tribunal may request information or services from other
agencies
Omit "an area health service" from section 162A (1).
Insert instead "a local health network".
Page 29
Health Services Amendment (Local Health Networks) Bill 2010
Schedule 2 Consequential amendment of other Acts and statutory rules
2.19 Mental Health (Forensic Provisions) Act 1990 No 10
Section 76J Exchange of information
Omit "an area health service" from paragraph (a) of the definition of
associated agency in section 76J (6).
Insert instead "a local health network".
2.20 Motor Accidents Act 1988 No 102
Section 39A Definitions
Omit "an area health service" from paragraph (a) of the definition of public
hospital in section 39A (1).
Insert instead "a local health network".
2.21 Motor Vehicles (Third Party Insurance) Act 1942 No 15
Section 24 Interpretation
Omit "an area health service" from paragraph (a) of the definition of Public
hospital in section 24 (1).
Insert instead "a local health network".
2.22 Occupational Health and Safety Act 2000 No 40
Section 123 Proceedings against successors of government
corporations
Omit "an area health service" from section 123 (1) (c).
Insert instead "a local health network".
2.23 Ombudsman Act 1974 No 68
Section 25A Definitions
Omit "an area health service" from paragraph (b) of the definition of
designated government agency in section 25A (1).
Insert instead "a local health network".
Page 30
Health Services Amendment (Local Health Networks) Bill 2010
Consequential amendment of other Acts and statutory rules Schedule 2
2.24 Payroll Tax Act 2007 No 21
Schedule 2 NSW specific provisions
Omit "area health services", "an area health service" and "the area health
service" from clause 8 (including the clause heading).
Insert instead "local health networks", "a local health network" and "the local
health network", respectively.
2.25 Public Authorities (Financial Arrangements) Regulation
2005
Schedule 1 Definitions of "authority" and "controlled entity"
Omit the matter relating to Area health service from Part 1.
Insert in alphabetical order of entities:
Local health network constituted under the Health Services Act
1997
2.26 Public Finance and Audit Regulation 2010
Schedule 1 Prescribed audits
Omit item 3 from Part 1.
Insert after item 19:
19A Local health networks within the meaning of the Health Services
Act 1997
2.27 Public Sector Employment and Management (Goods and
Services) Regulation 2010
Clause 9 Board may arrange supply or disposal for other public bodies
Omit "an area health service" from paragraph (b) of the definition of public
body in clause 9 (5).
Insert instead "a local health network".
Page 31
Health Services Amendment (Local Health Networks) Bill 2010
Schedule 2 Consequential amendment of other Acts and statutory rules
2.28 Road Transport (Safety and Traffic Management) Act 1999
No 20
Dictionary
Omit "an area health service" from paragraph (a) of the definition of hospital
in clause 1.
Insert instead "a local health network".
2.29 Summary Offences Act 1988 No 25
Section 3 Definitions
Omit "an area health service" from paragraph (a) of the definition of hospital
in section 3 (1).
Insert instead "a local health network".
2.30 Water Management Act 2000 No 92
Schedule 4 Land exempt from water supply authority service charges
Omit "an area health service" and "the area health service" from item (6).
Insert instead "a local health network" and "the local health network",
respectively.
2.31 Workers Compensation Act 1987 No 70
Section 59 Definitions
Omit "an area health service" from paragraph (a) of the definition of public
hospital.
Insert instead "a local health network".
Page 32
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