Queensland Bills Explanatory Notes

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HEALTH LEGISLATION AMENDMENT BILL 2003

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                    Health Legislation Amendment Bill 2003


   HEALTH LEGISLATION AMENDMENT
              BILL 2003


                      EXPLANATORY NOTES

                                   FOR

  AMENDMENTS TO BE MOVED IN COMMITTEE BY
     THE HONOURABLE WENDY EDMOND MP

Title of the Bill
  Health Legislation Amendment Bill 2003


Objectives of the Amendments
  The main objective of the amendments is to insert provisions in the
Hospitals Foundations Act 1982 to clarify that two or more bodies
corporate established under that Act may amalgamate.


Achievement of the Objectives
   Amendments to the Hospitals Foundations Act are inserted into the Bill to
clarify:
     ·    the steps necessary for bodies corporate established under that
          Act to amalgamate; and
     ·    that assets, liabilities, bequests, rights and obligations of the
          bodies corporate which sought to amalgamate become those of
          the amalgamated body.


Estimated Cost for Government Implementation
  The amendments will not have any financial impact on Government.
 
 
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                  Health Legislation Amendment Bill 2003


Consistency with Fundamental Legislative Principles
  The amendments are consistent with Fundamental Legislative
Principles.


Consultation
  Consultation has occurred with the Royal Brisbane and Women's
Hospital Foundation and the Royal Women's Hospital Research and
Development Foundation who have approached Government to
amalgamate.




                   NOTES ON PROVISIONS

  Clause 1 corrects a minor drafting error.
  Clause 2 inserts a new Part 8A into the Health Legislation Amendment
Bill 2003, which contains amendments to the Hospitals Foundations Act
1982.
  Clause 59A is to be inserted to specify that the new part will amend the
Hospitals Foundations Act 1982.
   Clause 59B inserts a new section 71A into the Act to set out the steps to
be undertaken, and other matters, for the amalgamation of bodies corporate
established under the Act.
   Subsection (1) enables two or more bodies corporate to apply to the
Minister to be amalgamated. Subsection (2) specifies that the application is
to set out relevant matters, including the proposed process by which the
bodies corporate are to be amalgamated. There are two broad options for
amalgamating bodies corporate, which are:
     ·    Establishing a new body corporate comprised of two or more
          existing bodies corporate.    Under this option, Hospital
          Foundation A and Hospital Foundation B apply to be
          amalgamated. As a result, a new Hospital Foundation C is
          established to replace Hospital Foundation A and Hospital
          Foundation B.
     ·    Subsuming one or more bodies corporate into an existing body
          corporate. Under this option, Hospital Foundation X and
 
 
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                    Health Legislation Amendment Bill 2003


           Hospital Foundation Y apply to be amalgamated. As a result,
           Foundation X is dissolved and subsumed into Hospital
           Foundation Y.
   Subsection (3) enables the Minister to recommend the Governor in
Council to make a regulation to effect the amalgamation. Subsection (4)
requires the regulation to specify the process by which the bodies corporate
are to be amalgamated.
   As bodies corporate established under the Act may provide funding or
assistance for health services and research1, it is vital that the source of
funds for these activities is not interrupted by an amalgamation. As a
result, subsection (4) provides that the regulation may also clarify the effect
of the amalgamation on matters such as the assets, liabilities, rights,
obligations, legal proceedings, instruments, bequests and funds of the
amalgamating bodies corporate. In addition, the regulation may deal with
ancillary matters necessary for, or connected with, the effective
amalgamation of the bodies corporate.
   Subsection (5) clarifies that the members of a body corporate that is
dissolved go out of office. It should be noted that this would not apply to
the members of a body corporate that is continued, such as Hospital
Foundation Y, in the example provided for subsection (2).
   Subsection (6) provides that a new body corporate established on the
amalgamation of existing bodies is taken to have been established under
section 7 of the Act. As a result, the processes set out in the Act for
registration, appointment of members, and other relevant provisions, apply
to the new body corporate.
  To remove doubt it is clarified that sections 56 to 61, which include
winding up and dissolution provisions, do not apply to the amalgamation of
bodies corporate.
  Clauses 3 to 6 correct minor typographical errors and update the
definitions in the Health Rights Commission Act 1991, to be consistent with
the change of name of the Nursing Tribunal.
    Clause 7 corrects a minor drafting error.




1      See Hospitals Foundations Act 1982, section 13, `Objects for which bodies
      corporate may apply property'.
 
 
© State of Queensland 2003

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