HEALTH SERVICES BILL 2014
LEGISLATIVE ASSEMBLY OF THE NORTHERN TERRITORY

MINISTER FOR HEALTH

SERIAL NO. 74
EXPLANATORY STATEMENT

General Outline
This Bill delivers on a key Government commitment.  The Bill provides for the decentralisation of the delivery of public health services to new entities to be known as Health Services.  The new entities will be governed by Boards.  The Bill repeals and replaces the Hospital Networks Governing Councils Act.
The Bill is divided into eleven parts, each part dealing with a discrete part of the new framework for health service delivery.  Part 10 contains repeal and transitional matters and Part 11 contains consequential amendments.
Notes on clauses
Part 1 Preliminary matters
Clause 1 Short title
This is a formal clause which provides for the citation of the Bill.  The Bill when passed may be cited as the Health Services Act 2014 (the Act).
Clause 2 Commencement
This is a formal clause which establishes when the Act will commence.  The Act will commence on the date fixed by the Administrator by Gazette notice.
Clause 3 Principles and objectives of a unified Australian health system
This clause sets out the principles and objectives of a unified Australian health system.  It is an interpretive guide to how functions and powers should be exercised under this Act.
Clause 4 Object of Act
This clause establishes the objects of the Act.  These objects are intended to guide decision-makers in the interpretation of this legislation.   
The key object of the Act is to establish a Public Health System that provides high quality health services to people in the Northern Territory, having regard to the principles and objectives set out in clause 3.  
Clause 5 Act binds Crown
This clause provides the Act binds the Crown in right of the Territory and, to the extent the legislative power of the Legislative Assembly permits, the Crown in all its other capacities.
Clause 6 Application of Criminal Code
This clause ensures that the criminal responsibility provisions in Part IIAA of the Criminal Code apply to offences in this Act. 
Part 2 Interpretation
Clause 7 Definitions 
This clause defines various words and expression used in the Act. 
Clause 8 Meaning of health service
This clause establishes the types of services that are considered health services.  This clause establishes that those particular services are considered public health services where they are provided by a Health Service, the Department of Health, or an affiliated health organisation. 
Clause 9 Affiliated health organisations
This clause establishes certain non-profit, religious, charitable or other non-government organisations and institutions to be recognised as part of the Public Health System.  
The recognition of the particular organisation as part of the Public Health System is to the extent it controls a hospital or institution or provides health services that significantly contribute to the operation of the Public Health System, and the extent the organisation is funded by the Territory to provide public health services.
Part 3 Overview of Public Health System
Clause 10 Purpose of Part 
This clause establishes the purpose of Part 3 to give an overview of the Act.
Clause 11 Management of the Public Health System
This clause establishes the providers of health services that comprise the Public Health System and the body with overall responsibility for the Public Health System.  
The System Manager has the overall responsibility for the development, management and performance of the Public Health System.
Clause 12 Health Services
This clause establishes Health Services as statutory bodies.  Those bodies will be the principal providers of public health services.   Each Health Service will be managed by a Board, which will be accountable to the System Manager for the performance of the Health Service.  The clause sets out some responsibilities for a Board, in addition to requirements for cooperation between the Department and each Health Service.  This is to ensure public health services are provided  in an integrated way across the Northern Territory.
Clause 13 Health Service Performance  
This clause establishes the accountability of the Health Service for its performance.  Health Services are accountable to and required to report on their performance to the System Manager.
Clause 14 System Manager
This clause establishes the responsibility of the System Manager for setting the performance standards for provision of health services, monitoring the performance of Health Services against those standards and collating and reporting on data in relation to performance of the Public Health System.
Part 4 Management of the Public Health System
Division 1 System Manager
Clause 15 Functions of System Manager 
This clause establishes the responsibility and functions of the System Manager for the overall development, management and performance of the Public Health System. 
Clause 16 Delegation by System Manager 
This clause establishes the ability of the System Manager to delegate powers and functions under this Act.  Delegation by the System Manager is permitted to an appropriately qualified public sector employee or to the Chief Operating Officer of a Health Service.
Division 2 Health Services
Clause 17 Establishment of Services 
This clause establishes a power for regulations that may prescribe an operational area for a specific Health Service and assign it a name.  Such operational areas can include a part of the Territory, a public hospital, a public health facility or any combination of those things.
The clause also establishes each Health Service as a body corporate with perpetual succession, a common seal and the capability of suing and being sued, and holding and disposing of property, in its corporate name.  The clause provides a Health Service represents the Territory.
Clause 18 Functions of a Service 
This clause establishes the functions of Health Services as the principal providers of public health services in the Territory.  
The clause also establishes responsibility for a Health Service to provide the services set out in the Service Delivery Agreement with the System Manager, and in accordance with any health service directives issued by the System Manager to a Health Service.  
Clause 19 General powers of Services
This clause establishes Health Services have the powers necessary and convenient to perform their functions.   This clause requires that in the exercise of its powers, a Health Service must comply with this Act and other relevant Acts.  The Public Health System is intended to operate within the Northern Territory Public Sector framework and these requirements are to ensure the provision of public health services in an integrated way across the Territory.
Clause 20 Specific powers and limitation on powers of Services
This clause establishes powers for Health Services to do certain things.  The clause also provides a description of things a Health Service cannot do, such as negotiating agreements with a government of another jurisdiction or undertake capital works without the approval of the System Manager.  The clause also places qualifications on a Health Service and how it exercises its functions.  Those qualifications include the expenditures of funds by a Health Service for the purpose of providing health services and the types of health services to be provided by the Health Service.
The clause also provides the Service Delivery Agreement or a health service directive may limit the way in which or the extent to which a Service may exercise its powers.  This clause is intended to ensure a unified approach to health service delivery and to manage the potential risk to the overall Public Health System where there will be multiple providers of services. 
Division 3 Service Boards
Clause 21 Establishment of Boards 
This clause establishes Boards for each Health Service.  Membership of the Board will be pursuant to Ministerial appointment. 
Subclause (3) requires a Board to include at least one member with skills or experience in managing a large and complex organisation (including commercial and financial management skills), and, clinical skills.
Clause 22 Functions of Board
This clause establishes the main functions of the Board to govern the Health Service and to negotiate and enter into a Service Delivery Agreement with the System Manager.  
Clause 23 Strategic functions of Service Boards 
This clause establishes requirements for Boards to provide strategic direction of the Health Service in regard to development, overseeing implementation and review of business plans, encouraging innovation to improve health outcomes, undertaking budget reviews, planning and developing long term priorities, and developing and overseeing implementation of strategies to improve the transition of patients between health care providers. 
Clause 24 Community leadership functions of Service Board 
This clause establishes community leadership functions of a Board that are required when a Health Service is engaging and working collaboratively with its community and other stakeholders. 
Clause 25 Other functions of Board 
This clause establishes other functions of a Board that are incidental to managing a Health Service.
Clause 26 Powers of Board
This clause establishes the powers of the Board.  The Board has powers necessary to ensure the performance of a Health Service as a provider of public health services.  The clause establishes that a function of the Health Service that is performed by its Board is taken to have been done by the Health Service.
Clause 27 Minister may direct Board
This clause establishes accountability of a Health Service Board to the Minister and the power for the Minister to provide directions to a Board.  Directions by the Minister are required to be in writing and are intended to ensure health services across the Territory are  provided in an integrated way and in accordance with Territory Government policies and any requirements of national health agreements.  The clause provides restrictions on the types of directions a Minister may issue to a Board relating to the employment of a particular person or health services provided to a particular person by a Health Service.
The clause permits the Minister to issue a direction to a Board that may be inconsistent with the Service Delivery Agreement for the Health Service, or a Health Service Directive issued by the System Manager.  In these circumstances, the clause provides the Board must comply with the Minister’s direction, despite any inconsistency.
Clause 28 Delegation by Board
This clause establishes the Board of a Health Service may delegate any of its powers and functions to the Chief Operating Officer of the Health Service.  The clause permits that where the Board approves, the Chief Operating Officer may sub-delegate the power or function of the Board to an appropriately qualified employee of the Service.
Clause 29 Chairperson and deputy chairperson 
This clause provides the Minister must appoint a Board member to be the chairperson of the Board.  The Minister may appoint another Board member to be the deputy chairperson of the Board, and where the Minister does not appoint a deputy chairperson, the members of the Board must appoint a deputy chairperson.  The clause establishes the deputy chairperson must act as chairperson during a vacancy in the office of chairperson or when the chairperson is absent or unable to perform the duties of chairperson.   
Division 4 Chief Operating Officer
Clause 30 Appointment of Chief Operating Officer 
This clause establishes that each Service has a Chief Operating Officer.  The Chief Operating Officer will be an Executive Contract Officer employed by the public service and will be appointed by the Chief Executive Officer of the Department, with the agreement of the Health Service Board.  The Health Service Board and Chief Executive Officer of the Department will be responsible for reviewing the performance of the Chief Operating Officer of the Service.
Clause 31 Acting COO
This clause establishes the Chief Executive Officer may appoint a person to act as the Chief Operating Officer of a Health Service where there is an absence or vacancy in the office.  The clause places limitations on the period in which a person may act as Chief Operating Officer to 12 months from the date of the vacancy in office.
Clause 32 Functions of COO 
This clause establishes the functions of the Chief Operating Officer as the person with day to day management responsibility of a Health Service and describes functions incidental to that responsibility.  
The clause also establishes the responsibilities the Chief Operating Officer has to the Health Service Board and the Chief Executive Officer and is subject to direction by the Board and the Chief Executive Officer.
The clause limits the powers of the Board in that it cannot provide directions to a Chief Operating Officer in respect of employment matters affecting a particular person and health services provided to a particular person by the Health Service.  
The clause makes explicit that in the event of a conflict between the directions given by the Board and the Chief Executive Officer, the directions of the Chief Executive Officer prevail to the extent of the conflict.  This is intended as the Chief Executive Officer undertakes the role of System Manager and has the overall responsibility of the development, management and performance of the Public Health System. 
Clause 33 Powers of the COO
This clause provides the Chief Operating Officer has powers provided by the Act, those powers delegated by the Board of the Service and those powers delegated by the Chief Executive Officer. 
Division 5 CEO of Department
Clause 34 CEO of Department
This clause establishes the functions of the CEO under the Act.  The CEO will provide Health Services with staff and corporate support services to allow the Health Service to perform their functions.  The CEO will continue to contribute to negotiation of Northern Territory-wide industrial agreements for the terms and conditions of employees, which is a role of the Chief Executive Officer pursuant to the Public Sector Employment and Management Act.
The clause also provides functions to the CEO to ensure that where health services are not provided by Health Services under a Service Delivery Agreement, those particular health services are to be delivered by the Department, an affiliated health organisation or another provider outside of the Territory.  The clause also requires the CEO to ensure the Department contributes to the planning and development of the Public Health System.  These functions of the CEO are System Manager obligations and are intended to protect and minimise risk to the public. 
Clause 35 CEO is System Manager
This clause establishes the CEO is the System Manager for the Act.  A Manager of a Public Health System is a requirement of the National Health Reform Agreement 2011; that Agreement recognises the States and Territories as the Managers of their respective health systems.
Clause 36 CEO is Accountable Officer for Services
This clause establishes the CEO is the Accountable Officer for the purposes of the Financial Management Act and the Procurement Act, in respect of each Health Service. It is intended the Public Health System will continue to operate within a single Agency of the Northern Territory Public Service, the Department of Health. It is intended that Health Services have operational independence and management of their allocated funding pursuant to Service Delivery Agreements; however the requirements of the Financial Management Act and the Procurement Act are that a nominated person must be accountable for the financial management of the Agency. 
Part 5 Service Delivery Agreement
Clause 37 Service Delivery Agreement 
This clause requires the Board of each Health Service and the System Manager must enter into a Service Delivery Agreement.  The requirement for Service Delivery Agreements is set out in the National Health Reform Agreement 2011.  Service Delivery Agreements are to be signed by the Chairperson of the respective Health Service Board and will bind the Health Service and the System Manager.  The Board is responsible for ensuring the Health Service complies with its Service Delivery Agreement.
Clause 38 Term of SDA
This clause provides the term of a Service Delivery Agreement is to be no shorter than 12 months and no longer than 3 years.
Clause 39 Negotiations for SDA
This clause establishes the process for negotiating a Service Delivery Agreement.  For the first Service Delivery Agreement, the System Manager and each Health Service are required to enter into negotiations immediately after the commencement of this section.  
For subsequent Service Delivery Agreements, the System Manager and the Health service must enter into negotiations at least 6 months in advance of the expiry of the existing Service Delivery Agreement.  The Board of a Health Service is required to consult with its Chief Operating Officer during the negotiation of a Service Delivery Agreement. 
Clause 40 Content of SDA
This clause sets out what is required to be included in a Service Delivery Agreement.  The Agreement is required to outline the types of services to be provided by the Health Service, the funding to be provided to the Health Service for that purpose (and the way the funding is to be provided), the performance standards, targets and measures that will apply to the provision of the service and the performance data and reporting requirements for a Health Service.  The clause also establishes additional matters that may be included in the Service Delivery Agreement, such as the performance management process to be used in relation to the Health Service, the relevant safety and quality standards that will apply and circumstances in which the Health Service may agree to purchase from or provide services to another Health Service.
Clause 41 SDA not to be inconsistent with Act
This clause establishes requirements that the Service Delivery Agreement must not purport to extend the powers of the System Manger or the Health Service, or require either of those parties to act in a manner inconsistent with the Act.
Clause 42 Obligation to negotiate in good faith 
This clause establishes a requirement for each Health Service to negotiate its Service Delivery Agreement with the System Manager in good faith.  This includes, but does not limit the requirements for the Health Service to provide the System Manager with information and data necessary for the negotiations within appropriate time frames.
Clause 43 Minister may decide on terms of SDA
This clause establishes a process for resolution where a Health Service and the System Manager cannot reach agreement in relation to some or all of the terms of a Service Delivery Agreement.  Where this occurs, the System Manager must advise the Minister, and, where an Agreement is to replace an existing Service Delivery Agreement, such advice must be provided to the Minister at least 1 month prior to expiry of the existing agreement.  The Minister must decide on the terms of the Service Delivery Agreement. 
Clause 44 Variation of SDA
This clause establishes a process for varying a Service Delivery Agreement.   Variations are to be by agreement, in writing, between the Health Service and the System Manager.  
The clause requires that Service Delivery Agreements must be varied where a Health Service Directive applying to the Health Service requires the Health Service to provide additional health services on an ongoing basis for which additional funding is appropriate.  Where agreement cannot be reached on the terms of variation, the procedure requiring the System Manager to advise the Minister set out in clause 43 applies.  The Minister must decide on the terms of any variation.
Clause 45 SDA to be publicly available
This clause requires the System Manager to make the Service Delivery Agreement publicly available within 14 days of entering into or varying the Service Delivery Agreement.  Publication of Service Delivery Agreements is a requirement of the NHRA. 

Part 6 Performance of Service
Division 1 Reporting and provision of information 
Clause 46 Service to report to System Manager
This clause requires the Board to report to the System Manager on the performance of the Health Service as required by the Service Delivery Agreement and any Health Service Directive.  The reporting by the Board must be no less frequently than quarterly.  
Subclause (3) provides the System Manager may also require a Health Service to provide other information relevant to the operations or performance of the Health Service.  This may be in circumstances, for example, to allow the CEO to respond to a Freedom of Information request.
Clause 47 Annual Report by Service to Minister
This clause requires a Health Service to give an annual report on the performance of the Service to the Minister.  The Minister must table the report in the Legislative Assembly within 6 sittings days of receiving the annual report.
Clause 48 System Manager to report quarterly to Minister 
This clause establishes a requirement for the System Manager to provide quarterly reports to the Minister about the performance of each Health Service against the requirements of the respective Service Delivery Agreement. 
Clause 49 Other reports by System Manager 
This clause establishes an obligation on the System Manger to promptly report to the Minister upon the institution of a Health Service Inquiry, Health Service Audit or a performance plan, or, upon the appointment of performance advisors or performance personnel.
Division 2 Health Service Directives
Clause 50 Health Service Directives
This clause establishes power for the System Manager to issue Health Service Directives.  Health Service Directives are intended as a tool to promote the efficient and effective operation of the Public Health System.  The clause lists a broad range of circumstance in which a Health Service Directive might apply, and lists a broad range of things a Health Service Directive might do. 
Health Service Directives may apply generally in a number of circumstances, in that a Directive may apply to a specific Health Service, a specific type of public sector health facility (such as a hospital) or a specific public health service (such as the conduct of a mass vaccination programme following outbreak of disease).
Clause 51 Consultation on Health Service Directives
This clause requires the System Manager, in developing a Health Service Directive that applies to a Health Service, to consult with that Health Service to the extent it is practicable to do so.  It is intended consultation with a Health Service will occur in nearly all circumstances, however, there may be occurrences (such as an emergency) or other urgent or critical situations where responses by the System Manager are required and consultation may be unattainable.   
Clause 52 Health Service Directives binding 
This clause provides a Health Service Directive is binding on the Health Service to which the Directive relates.  The Board of the Health Service is responsible for ensuring the Health Service complies with the Directive.
Division 3 Health Service Inquiry 
Clause 53 Inquiry by System Manager 
This clause establishes power for the System Manager to inquire into a Health Service where there is a concern about the administration, management or performance of the Health Service in delivering health services. 
Clause 54 Health Service Inquiry Officer 
This clause establishes the System Manager’s ability to appoint, in writing, an Inquiry Officer to exercise the System Manager’s power of inquiry.  The clause sets out the matters that must be included in the Inquiry Officer’s instrument of appointment, and the circumstances in which the appointment will come to an end.
Clause 55 Powers of Inquiry Officer 
This clause establishes the power of an Inquiry Officer to enter any premises or facilities controlled by a Health Service.  The clause, however, also sets out limitations on these powers; an Inquiry Officer is not permitted to enter private or residential premises without the consent of the owner or occupier of the premises. 
The clause establishes broad powers for the Inquiry Officer, which include inspecting premises, requiring an employee or the Chief Operating Officer of the Health Service to answer questions, producing documents or things under the person’s control and providing assistance to the Inquiry Officer.  These requirements extend to the provision of confidential information, taking copies or extracts of records and taking recordings necessary for the Health Service Inquiry.  
Clause 56 Report by Inquiry Officer 
This clause establishes an obligation on the Inquiry Officer to provide a report to the System manager in relation to the Health Service Inquiry.   The report may include recommendations about the administration or management of a Health Service or the performance of a Health Service.  The System Manager, having received the report, may take action (which might include issuing a Health Service Directive) and provide the report to the Board and Chief Operating Officer of the Health Service. 
Division 4 Health Service Audit
Clause 57 Health Service Audit 
This clause describes a Health Service Audit as an investigation to examine the accuracy of performance data and other data reported by a Health Service, an examination of the circumstances leading to an inability of a Health Service to meet any performance measures, or, other matters to promote the effective and efficient use of available resources in the delivery of health services. 
Clause 58 Health Service Auditor 
This clause establishes power for the System Manager to appoint a Health Service Auditor for the purposes of conducting an audit into the accuracy of performance data provided by a Health Service or why a Health Service is not meeting performance measures set out in the Service Delivery Agreement.  
The clause sets out the matters that must be included in the Health Service Auditor’s instrument of appointment, and the circumstances in which the appointment will come to an end.
Clause 59 Functions and powers of Health Service Auditor 
This clause establishes the power of a Health Service Auditor to enter any premises or facilities controlled by a Health Service for the purposes of conducting a Health Service Audit.  
The clause establishes broad powers for the Health Service Auditor to require an employee of the Department or a Health Service to provide the Auditor with a document, including where that document contains confidential information. 
Clause 60 Report by Health Service Auditor 
This clause establishes an obligation for a Health Service Auditor to prepare and provide a report to the System Manager following each Health Service Audit.  The clause sets out the recommendations that may be included in the Auditor’s report and the actions the System Manager may take following receipt of the report.  The actions available to the System Manager include issuing a Health Service Directive and providing the report to the Chief Operating Officer and the Board of the Health Service.
Division 5 Performance Improvement
Clause 61 Power of System Manager
This clause establishes the relevant circumstances where a System Manager may require a Health Service to develop a performance improvement plan.  These circumstances are where the System Manager is of the opinion that a Health Service is failing to meet the requirements of its Service Delivery Agreement or has not been performing its functions or exercising its powers in a satisfactory manner.
Clause 62 Performance Improvement Plan 
This clause establishes the matters that must be specified in a performance improvement plan, and includes the requirements or functions not being met by the Health Service and the proposed measures for improvement.  The plan must be developed by a Health Service and submitted to the System Manager for approval.  The clause permits the System Manager to require amendments to a performance improvement plan prior to approving the plan.  The Board of a Health Service and its Chief Operating Officer must comply with a performance improvement plan that has been approved by the System Manager. 
Clause 63 Performance improvement adviser
This clause establishes that the section applies if, in the opinion of the System Manager, a Health Service has failed to comply with a performance improvement plan relating to the Health Service.  
In these circumstances, the System Manager may recommend to the Minister to appoint a performance improvement adviser to assist the Board or the Chief Operating Officer of a Health Service.  Performance improvement advisers are intended to observe and provide advice to the Board or the Chief Operating Officer in regard to the requirements of the Service Delivery Agreement or other functions of the Health Service and to provide assistance to a Health Service with meeting the requirements of a performance improvement plan.  A Health Service Board and its Chief Operating Officer are obliged to assist a performance improvement adviser throughout this process.
The clause provides a performance improvement adviser holds office on the terms and conditions set out in the instrument of appointment.  The adviser is also permitted to provide advice to the System Manager, the Board or Chief Operating Officer of the Health Service to which the adviser has been appointed to advise, on any matter during the period of appointment.
Clause 64 Performance improvement personnel 
This clause establishes that the section applies if, in the opinion of the System Manager, a Health Service has failed to comply with a performance improvement plan relating to the Health Service.
In these circumstances, the System Manager may recommend to the Minister to appoint performance improvement personnel to perform specific functions or exercise specific powers of the Health Service, or the Board of the Health Service.  These appointments may be made at the same time a performance improvement plan is in place for a Health Service. A Health Service Board and its Chief Operating Officer are obliged to assist performance improvement personnel throughout this process.
The clause provides performance improvement personnel hold office on the terms and conditions set out in the instrument of appointment.  The personnel are also permitted to provide advice to the System Manager, the Board or Chief Operating Officer of the Health Service to which the personnel have been appointed to advise, on any matter during the period of appointment.
Clause 65 Dissolution of Board 
This clause establishes the circumstances in which a Board may be dissolved.  Dissolution of the Board is the role of the Minister and can be undertaken on recommendation of the System Manager, or at any time on the Minister’s own initiative.  The Minister may provide a Board notice, in writing, of any concerns prior to dissolving the Board, which the Board must have regard to.
Clause 66 Appointment of Service administrator
This clause establishes that where a Board of a Health Service is dissolved or is otherwise unable to function, the Minister must appoint a qualified person to administer the Health Service (“Service administrator”).  The CEO of the Department may be the Service Administrator.  Subsection (2) of this clause provides that until a Service administrator is appointed, the System Manager has the powers and functions of the Board and this is intended to recognise the role of the System Manager to be responsible for the management and performance of the Public Health System.
The clause also establishes when the appointment of a Service administrator may come to an end.
Part 7 Offences
Clause 67 Obstruction of authorised officer 
This clause establishes an offence where a person obstructs an authorised officer acting in an official capacity.  
Authorised officers are defined in clause 7 to mean a Health Service Inquiry Officer, a Health Service Auditor, a performance improvement adviser and performance improvement personnel.
Clause 68 Misleading information 
This clause establishes an offence where a person provides misleading information to an authorised officer acting in an official capacity. 
Authorised officers are defined in clause 7 to mean a Health Service Inquiry Officer, a Health Service Auditor, a performance improvement adviser and performance improvement personnel.
Clause 69 Falsely representing to be authorised officer 
This clause establishes an offence where a person falsely represents that they are an authorised officer.  The false representation may be by words or by conduct. 
Clause 70 Confidentiality 
This clause establishes an offence where a person obtains information in the course of carrying out functions connected with the administration of this Act and the person then engages in conduct that results in the disclosure of the information.  This is intended to apply to circumstances where a person may receive information that is considered medical-in-confidence or commercial-in-confidence.
The clause also establishes circumstances where disclosure of the information will not be considered an offence.
Part 8 Administrative matters relating to Boards
Division 1 Board members
Clause 71 Eligibility for appointment 
This clause establishes the skills or experience a person must have to be eligible for appointment as a member of a Health Service Board.  
Clause 72 Employees not eligible
This clause provides certain people are not eligible for appointment to a Health Service Board. 
Clause 73 Term of appointment
This clause establishes the term of appointment a Board member will hold office.  Each term of appointment will be a period of up to four years.  Members may serve up to 3 terms, however the Minister may appoint a person to the Board membership for a further term where there are exceptional circumstances.  This is intended to provide a level of flexibility and ability to benefit from specific expertise as the population of the Northern Territory continues to develop.
Clause 74 Vacation of office
This clause establishes the circumstances in which a Board member ceases to hold office.
Clause 75 Termination of appointment
This clause establishes the circumstances in which the Minister may terminate the appointment of a Board member. 
Division 2 Duties of Board members
Clause 76 Duties of Board members 
This clause establishes the duties of Board members required in the performance and exercise of their functions and powers as a member. 
Division 3 Business of Board
Clause 77 Holding of meetings
This clause establishes the requirement for the Board of a Health Service to hold meetings.  The requirement to hold meetings is not intended to be prescriptive, however, the clause requires meetings to be held in locations where a hospital within the Health Service is located.  This is intended to support the overall object of local decision making and greater community involvement.
Clause 78 Quorum
This clause establishes the quorum for a meeting of the Board is one half the numbers of current members, or, if one half is not a whole number, the next highest whole number.
Clause 79 Presiding member at meetings 
This clause requires the chairperson of a Health Service Board to preside at all meetings of the Board at which he or she is present.  Where the chairperson is absent from a meeting, the clause requires the deputy chairperson to preside.   Where the chairperson and deputy chairperson are both absent from a meeting, the other Board members must elect a Board member who is present to preside.
Clause 80 Procedures at meetings 
This clause establishes the procedures at meetings in regard to how a question at a meeting of a Board is decided.  The decision is by a majority of votes, and where the votes are equally divided, the presiding member has the deciding vote.
The clause also provides for the method in which meetings may be conducted, such as by telephone or video conferencing or other communication method.  The chairperson may invite a person to attend the Board meeting to provide information and advice to the Board.
Clause 81 Minutes
This clause requires the Board to keep proper minutes of its proceedings and decisions. 
Clause 82 Resolution without meeting 
This clause provides a resolution of a Board is valid, despite the resolution not being passed at a meeting, if the notice of the proposed resolution was given to all members in accordance with the procedures established by the Board and a majority of members agree in writing to the proposed resolution. 
Clause 83 Disclosure of interest 
This clause requires the disclosure of personal interests in a matter by Board members where the matter is being, or about to be considered, by the Board. 
Clause 84 Effect of personal interest 
This clause provides that where a Board member has disclosed personal interest in a matter to be considered by the Board, that member must not take part in any deliberation or decision about the matter and must be disregarded for the purposes of constituting the quorum of the Board for the deliberation or decision.  Failure by the member to disclose the interest in the matter does not, on its own, invalidate any decision of the Board about the matter. 
Clause 85 Committees of Board   
This clause requires the Board of a Service to establish the committees prescribed by regulation, and provides discretion to the Board to establish other committees of the Board for effectively and efficiently performing its functions. 
The clause requires the Board to decide the terms and reference of a committee and sets out the functions and procedures of the committee.
 
Clause 86 Other Board procedures 
This clause provides that for matters other than as provided by this Act, a Board must determine the procedures for its meetings. 
Clause 87 Variation of matters in this Division
This clause establishes power to make regulations to vary a matter set out in this Division.
Part 9 Other matters
Clause 88 Application of Information Act 
This clause establishes, for the purposes of the Information Act the Department and a Health Service are taken to be the one public sector organisation.  This is to permit sharing of information between entities, for example, to respond to a Freedom of Information request. 
Clause 89 Protection from liability 
This clause provides protection to a person from criminal or civil liability where that person, through a positive act or omission, exercises powers or performs a function under the Act in good faith.  Subsection (2) provides that the protection from liability does not affect the liability the Territory would otherwise have for the act or the omission. 
Clause 90 Donations 
This clause requires a Health Service to deal with any money donated to the Health Service or a hospital within the Health Service as trust money.  The clause requires that where a donor identifies the purpose for which a donation may be used, the donation must be managed by the Health Service in accordance with that purpose.  Where no purpose is identified, the donation must be managed by the Health Service with a purpose that is consistent with the Health Service’s priorities. 
Clause 91 Regulations 
This clause provides that the Administrator may make regulations under the Act. 
Part 10 Repeal and Transitional provisions
Division 1  Definitions 
Clause 92 Definitions
This clause defines terms used in Part 10.
Division 2 Repeal
Clause 93 Repeal 
This clause repeals the Hospital Networks Governing Councils Act.  The clause abolishes the hospital networks, and their governing councils, established under the Hospital Networks Governing Councils Act.
Division 2 Transitional matters 
Clause 94 Money held in trust 
This clause provides that any trust money held by a governing council of a hospital network before commencement of the clause is, on commencement of the clause, taken to be trust money held by a Health Service previously the responsibility of the network.  The Chief Operating Officer of the Health Service must make arrangements to transfer the trust money into a trust account in the Health Service’s name.
Clause 95 Transitional regulations 
This clause establishes power to make regulations to provide for matters of a transitional nature. 
Part 11 Consequential amendments of other Acts
Division 1 Amendment of Medical Services Act 
Clause 96 Act amended
This clause provides that the Division amends the Medical Services Act.
Clause 97 Section 8 amended
This clause amends section 8 of the Medical Services Act. Subsection (1) of that Act, on commencement of the clause, will permit the Secretary to delegate any power or function under that Act or any other Act.  
The role of Secretary in the Medical Services Act is defined as ‘the Chief Executive Officer as defined in the Public Sector Employment and Management Act, of the Agency as defined in that Act primarily responsible under the Minister for the administration of this Act’.  The Department of Health administers the Medical Services Act, accordingly, the Chief Executive Officer of the Department is the Secretary for the purposes of the Medical Services Act. 
This clause is intended to permit the Secretary to make delegations under other Acts to people, such as the Chief Operating Officer.  The amendment is required where there are specific responsibilities of the Secretary under other Acts but no express power of delegation.  
The clause also omits section 8(2) and (3) of the Medical Services Act.  These provisions are already contained in the Interpretation Act. 
Division 2 Amendment of National Health Funding Pool and Administration (National Uniform Legislation) Act
Clause 98 Act amended  
This clause amends the National Health Funding Pool and Administration (National Uniform Legislation) Act.
Clause 99 Section 3 amended
This clause amends section 3 of the National Health Funding Pool and Administration (National Uniform Legislation) Act.  The clause removes a reference to “local hospital network”.