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This is a Bill, not an Act. For current law, see the Acts databases.


HEALTH SERVICES AMENDMENT (LOCAL HEALTH NETWORKS) BILL 2010





                        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.




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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".




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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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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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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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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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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.




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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,




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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".




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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.




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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




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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




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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


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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.




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[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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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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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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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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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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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.




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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"



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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".




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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".




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                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




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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".




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               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.




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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".




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               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".




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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".




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               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".




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