(1) Sections 8, 106, and 114 come into force on the day after the date on which this Act receives the Royal assent.

(2) The rest of this Act comes into force on 1 January 2001.

(1) The purpose of this Act is to provide for the public funding and provision of personal health services, public health services, and disability support services, and to establish new publicly-owned health and disability organisations, in order to pursue the following objectives:

• (a) to achieve for New Zealanders—

  • (i) the improvement, promotion, and protection of their health:

  • (ii) the promotion of the inclusion and participation in society and independence of people with disabilities:

  • (iii) the best care or support for those in need of services:

• (b) to reduce health disparities by improving the health outcomes of Maori and other population groups:

• (c) to provide a community voice in matters relating to personal health services, public health services, and disability support services—

  • (i) by providing for elected board members of DHBs:

  • (ii) by providing for board meetings and certain committee meetings to be open to the public:

  • (iii) by providing for consultation on strategic planning:

• (d) to facilitate access to, and the dissemination of information to deliver, appropriate, effective, and timely health services, public health services and programmes, both for the protection and the promotion of public health, and disability support services.

(2) The objectives stated in subsection (1) are to be pursued to the extent that they are reasonably achievable within the funding provided.

(3) To avoid any doubt, nothing in this Act—

• (a) entitles a person to preferential access to services on the basis of race; or

• (b) limits section 73 of the Human Rights Act 1993 (which relates to measures to ensure equality).

(4) In giving effect to the purposes set out in subsection (1), the Crown and DHBs must endeavour to promote the integration of all health services, especially primary and secondary services.

(5) In giving effect to the purposes set out in subsection (1), the Crown and DHBs must endeavour to provide for health services to be organised at either a local, regional, or national level depending on the optimum arrangement for the most effective delivery of properly co-ordinated health services.

In order to recognise and respect the principles of the Treaty of Waitangi, and with a view to improving health outcomes for Maori, Part 3 provides for mechanisms to enable Maori to contribute to decision-making on, and to participate in the delivery of, health and disability services.

(1) In general terms, this Act relates to, and reorganises, the public health and disability sector.

(2) Ministerial responsibilities (Part 2) include—

• (a) determining health and disability strategies (section 8):

• (b) negotiating and entering into agreements under which the Crown provides a person money in return for the person providing or arranging for the provision of health services or disability support services (section 10):

• (c) establishing and appointing committees (section 11), including—

  • (i) a national advisory committee on health and disability (section 13):

  • (ii) a health workforce advisory committee (section 15):

  • (iii) a national advisory committee on health and disability support services ethics (section 16):

  • (iv) mortality review committees (section 18 and Schedule 5).

(3) District Health Boards (DHBs) are established (Part 3 and Schedules 1 to 3), and take over functions like those of Hospital and Health Services (HHSs), which are dissolved (Part 7). DHBs—

• (a) have boards that include members elected by the community and representation of Maori:

• (b) will provide, or fund the provision of, health services and disability support services:

• (c) have the objective of reducing health disparities by improving health outcomes for Maori and other New Zealanders:

• (d) are statutory entities rather than companies:

• (e) are accountable in a number of ways (under the Crown Entities Act 2004 and sections 38 to 42), for example, through plans prepared under section 38, and statements of intent.

(4) The board of each DHB must have 3 permanent advisory committees (the community and public health advisory committee, disability support advisory committee, and hospital advisory committee (sections 34 to 36 and Schedule 4)), but may also establish other committees (Schedule 3—clause 38(1)).

(5) A statutory entity called the Pharmaceutical Management Agency (Pharmac) is established (Part 4—sections 46 to 53, and sections 61 to 69, and Schedule 6), and takes over functions relating to the pharmaceutical schedule from the company called Pharmaceutical Management Agency Limited, which is dissolved (Part 7).

(6) A statutory entity called the New Zealand Blood Service (NZBS) is established (Part 4—sections 54 to 56, and sections 61 to 69, and Schedule 6), and takes over functions relating to blood and controlled human substances from the company called New Zealand Blood Service Limited, which is dissolved (Part 7).

(7) A statutory entity called the Crown Health Financing Agency (CHFA) is continued (Part 4—sections 57 to 59, and sections 61 to 69, and Schedule 6), and continues to have functions (including the management of certain public health and disability sector assets and liabilities) given to it under any enactment or by the Minister of Health.

(7A) A statutory entity called the Health Quality and Safety Commission (HQSC) is established (Part 4—sections 59A to 59E, 60, 61, 66, 67, and 69 and Schedule 6), and has functions that relate to the improvement of the quality and safety of health and disability support services.

(8) Inquiry boards may be appointed by the Minister of Health to conduct an inquiry into, and report to the Minister on, matters like the funding or provision of health services or disability support services, or the management of any publicly-owned health and disability organisation (Part 5—sections 72 to 86).

(9) The Health Funding Authority (HFA) is dissolved, and its functions, employees, and assets and liabilities transferred to the Crown, acting through the Ministry of Health (Part 7). However, funding of the provision of health services or disability support services may be further devolved under this Act.

(10) Subsections (1) to (9) are only a guide to the general scheme and effect of this Act.

(1) In this Act, unless the context otherwise requires,—

(2) For the purposes of this Act, a person who is a member of a board of a DHB or a member of a committee of such board or a delegate of such board is interested in a transaction of a DHB if, and only if, the board member or member of the committee or the delegate—

• (a) is a party to, or will derive a financial benefit from, the transaction; or

• (b) has a financial interest in another party to the transaction; or

• (c) is a director, member, official, partner, or trustee of another party to, or person who will or may derive a financial benefit from, the transaction, not being a party that is—

  • (i) the Crown; or

  • (ii) a publicly-owned health and disability organisation; or

  • (iii) a body that is wholly owned by 1 or more publicly-owned health and disability organisations; or

• (d) is the parent, child, spouse or partner of another party to, or person who will or may derive a financial benefit from, the transaction; or

• (e) is otherwise directly or indirectly interested in the transaction.

(3) A person is not interested in a transaction for the purposes of subsection (2)—

• (a) if his or her interest is so remote or insignificant that it cannot reasonably be regarded as likely to influence him or her in carrying out his or her responsibilities under this Act or another Act; or

• (b) because he or she receives remuneration or other benefits authorised under this Act or another Act.

This Act binds the Crown.

(1) The Minister must determine a strategy for health services, called the New Zealand health strategy, to provide the framework for the Government's overall direction of the health sector in improving the health of people and communities; and the Minister may amend or replace that strategy at any time.

(2) The Minister of the Crown who is responsible for disability issues must determine a strategy for disability support services, called the New Zealand disability strategy, to provide the framework for the Government's overall direction of the disability sector in improving disability support services; and may amend or replace that strategy at any time.

(3) Before determining the New Zealand health strategy or the New Zealand disability strategy, or amending or replacing either of them, the relevant Minister must consult any organisations and individuals that the Minister considers appropriate.

(4) The relevant Minister must in each year report on progress in implementing the New Zealand health strategy or the New Zealand disability strategy, as the case may require.

(5) The relevant Minister must make publicly available, and present to the House of Representatives, a copy of any strategy, amendment, replacement, or report as soon as practicable after the strategy, amendment, replacement, or report has been determined or made under this section.

(1) The Minister must, as soon as reasonably practicable after the commencement of this section, determine a strategy for the development and use of—

• (a) nationally consistent standards and quality assurance programmes for health services and consumer safety; and

• (b) nationally consistent performance monitoring of health services and consumer safety against those standards and programmes.

(2) Before determining the strategy, or amending or replacing it, the Minister must consult any organisations that the Minister considers appropriate.

(3) The Minister must in each year report on progress in implementing the strategy.

(4) The Minister must make publicly available, and present to the House of Representatives, a copy of any strategy, amendment, replacement, or report as soon as practicable after the strategy, amendment, replacement, or report has been determined or made.

(1) In this Act, Crown funding agreement means an agreement that the Crown enters into with any person, under which the Crown agrees to provide money in return for the person providing, or arranging for the provision of, services specified in the agreement.

(2) The Minister may, on behalf of the Crown,—

• (a) negotiate and enter into a Crown funding agreement containing any terms and conditions that may be agreed; and

• (b) negotiate and enter into an agreement that amends a Crown funding agreement; and

• (c) monitor performance under a Crown funding agreement.

(2A) A Crown funding agreement is an output agreement for the purposes of Part 4 of the Crown Entities Act 2004 in respect of any outputs covered by the agreement and section 170(2) to (5) of the Crown Entities Act 2004 applies to a Crown funding agreement, with any necessary modifications.

(3) Except to the extent that the Minister determines by written notice to the Ministry of Health, the Ministry of Health may exercise the Minister's powers under subsection (2) on the Minister's behalf.

(4) Nothing in this section limits section 39 or section 64 or any other enactment, or any powers that the Minister or the Crown has under any enactment or rule of law.

(5) As soon as practicable after giving a notice under subsection (3), the Minister must publish a copy of the notice in the Gazette.

(6) To avoid doubt, a Minister may not require a publicly-owned health and disability organisation to have in place a separate output agreement under section 170(1) of the Crown Entities Act 2004, in respect of any outputs covered by a Crown funding agreement.

(1) The Minister may by written notice—

• (a) establish any committee that the Minister considers necessary or desirable for any purpose relating to this Act or its administration or to any services; and

• (b) appoint any person to be a member or chairperson of the committee; and

• (c) terminate the committee or the appointment of a member or chairperson of the committee.

(2) Every committee established under this section (other than the committees referred to in sections 13 to 16) has the functions that the Minister determines by written notice to the committee.

(3) Every committee established under this section—

• (a) consists of such members as the Minister determines; and

• (b) may, subject to any written directions that the Minister gives to the committee, regulate its procedure in any manner that the committee thinks fit.

(4) Each member of a committee established under this section is appointed on any terms and conditions (including terms and conditions as to remuneration and travelling allowances and expenses) that the Minister determines by written notice to the member.

(5) Nothing in this section or in sections 13 to 16 limits any powers that the Minister has under any other enactment or rule of law.

(1) As soon as practicable—

• (a) after giving a notice establishing any committee under section 11, the Minister must present to the House of Representatives a copy of the notice that includes or has attached to it the following information:

  • (i) the name of the committee; and

  • (ii) the number of members of the committee:

• (b) after giving a notice appointing any person to be a member or chairperson of a committee established under section 11, the Minister must present to the House of Representatives a copy of the notice that includes or has attached to it the following information:

  • (i) the name of the chairperson of the committee; and

  • (ii) the names of the members of that committee.

(2) As soon as practicable after giving a notice terminating any committee established under section 11, the Minister must present to the House of Representatives a copy of the notice that includes or has attached to it the following information:

• (a) the name of the committee terminated; and

• (b) the reason or reasons for the termination of the committee.

(3) As soon as practicable after giving a notice under section 11(2) determining a function of a committee established under section 11, the Minister must present to the House of Representatives a copy of the notice that includes or has attached to it the following information:

• (a) the functions of the committee; and

• (b) any other terms of reference or directions (other than directions as to procedure).

(4) As soon as practicable after giving, under section 11(3)(b), a written direction as to the procedure of a committee established under section 11, the Minister must present to the House of Representatives a copy of the direction.

(5) In every annual report of the Ministry of Health, the Ministry must—

• (a) give the following information in respect of every committee established under section 11:

  • (i) the name of the committee:

  • (ii) the name of the chairperson of the committee:

  • (iii) the name of every member of the committee; and

• (b) indicate whether there is a committee established under section 11 that has not reported to the Minister in the year to which the report relates.

(1) The Minister may appoint a committee established under section 11, to be known as the national advisory committee on health and disability, to advise the Minister on—

• (a) the kinds, and relative priorities, of public health services, personal health services, and disability support services that should, in the committee's opinion, be publicly funded; and

• (b) other matters relating to public health, including—

  • (i) personal health matters relating to public health; and

  • (ii) regulatory matters relating to public health; and

• (c) any other matters that the Minister specifies by notice to the committee.

(2) The advice given by the committee to the Minister under subsection (1) is to be formulated after consultation by the committee with any members of the public, persons involved in the provision of services, and other persons that the committee considers appropriate.

(3) The committee must, at least once each year, deliver to the Minister a report setting out its advice on the matters referred to in subsection (1)(a) and (b).

(4) As soon as practicable after giving a notice under subsection (1)(c) or receiving a report under subsection (3), the Minister must present a copy of the notice or report to the House of Representatives.

(1) The national advisory committee on health and disability must establish a committee called the public health advisory committee to provide independent advice to the Minister and to the national advisory committee on health and disability on the following matters:

• (a) public health issues, including factors underlying the health of people and communities:

• (b) the promotion of public health:

• (c) the monitoring of public health:

• (d) any other matters the national advisory committee on health and disability specifies by notice to the committee.

(2) The advice given by the public health advisory committee is to be formulated after consultation by the committee with any interested organisation or individual that the committee considers appropriate.

(3) The Minister must make publicly available, and present to the House of Representatives, a copy of any advice given by the public health advisory committee.

(1) The Minister may appoint a committee established under section 11 to advise the Minister on health workforce issues that the Minister specifies by notice to the committee.

(2) The advice given by the committee to the Minister under subsection (1) is to be formulated after consultation by the committee with persons involved in the provision of services and any other persons that the committee considers appropriate.

(3) As soon as practicable after giving a notice under subsection (1), the Minister must present a copy of the notice to the House of Representatives.

(4) The committee must, at least once a year, deliver to the Minister a report setting out its advice on the matters referred to it under subsection (1).

(5) As soon as practicable after receiving a report under subsection (4), the Minister must present a copy of the report to the House of Representatives.

(1) The Minister must, by written notice, appoint a national advisory committee on the ethics governing health and disability support services for the purpose of obtaining advice on ethical issues of national significance in respect of any health and disability matters (including research and health services).

(2) The national advisory committee appointed under subsection (1) must determine nationally consistent ethical standards across the health sector and provide scrutiny for national health research and health services.

(3) For the purpose of obtaining advice on specific ethical issues of national, regional, or public significance in respect of any health or disability matters, the Minister may, by written notice, appoint any 1 or more of the following committees:

• (a) 1 or more committees established under section 11:

• (b) the ethics committee of the Health Research Council established under section 24 of the Health Research Council Act 1990—

to consider matters specified by the Minister and to report to the Minister or a person specified by the Minister.

(4) Before a committee appointed under subsection (1) or subsection (3) gives advice, the committee must consult with any members of the public, persons involved in the funding or provision of services, and other persons that the committee considers appropriate.

(5) As soon as practicable after giving a notice under subsection (1) or subsection (3), the Minister must present a copy of the notice to the House of Representatives.

(6) Any committee appointed under this section must, at least once a year, deliver to the Minister a report setting out its activities and summarising its advice on the matters referred to it under this section.

(7) As soon as practicable after receiving a report under subsection (6), the Minister must present a copy of the report to the House of Representatives.

(1) This section establishes each of the organisations named in column 1 of Schedule 1 as a DHB in respect of the geographical area specified in that schedule for the organisation.

(2) Schedule 1 may be amended by Order in Council.

(3) The Governor-General may, by Order in Council, divide any geographical area specified in Schedule 1 for a DHB into 2 or more constituencies, and determine—

• (a) the boundaries of each constituency, whether by reference to a current or former local government unit or otherwise; and

• (b) the number of members of the board of the DHB that are to be elected by the electors of each constituency.

(4) An Order in Council under this section may not take effect in the period commencing after 30 April in a year in which triennial elections under the Local Electoral Act 2001 are to be held and ending with the close of the 58th day after polling day appointed for those elections if the Order—

• (a) alters a geographical area specified in Schedule 1; or

• (b) divides such an area into constituencies; or

• (c) alters a constituency; or

• (d) changes the number of members to be elected by the electors of a constituency.

(5) With the written permission of the Minister, a DHB may adopt an operating name that is different from the name of the DHB specified in Schedule 1.

(1) Whenever, at any time after 31 December 2001, the Minister or 1 or more DHBs or any other person proposes to alter the geographical area of any DHB, the Minister, or DHBs, or other person must consult with the public in the area affected.

(2) The consultation under subsection (1) must include—

• (a) producing a discussion document explaining the proposed change, and including a discussion of any advantages or disadvantages that may flow from the implementation of the proposal; and

• (b) giving the public in the area affected and in other parts of New Zealand that may be affected an opportunity to make submissions on the proposal.

(3) Before the proposal is finalised, the person who issued the discussion document must—

• (a) fully consider any submissions received in response to the document; and

• (b) publish in any affected area an analysis of the submissions and the person's conclusions and recommendations on the proposal.

(4) A person (other than the Minister) who prepares a discussion document or publishes a report of the kind referred to in subsection (3) must deliver a copy of the discussion document or the report to the Minister, as soon as practicable after the preparation of the document or report.

(5) As soon as practicable after issuing or receiving a copy of a discussion document or report under this section, the Minister must present to the House of Representatives a copy of the document or report.

(6) No Order in Council that alters the geographical area of a DHB may be made under section 19 unless the requirements of this section have been followed.

(1) Each DHB is a Crown entity owned by the Crown for the purposes of section 7 of the Crown Entities Act 2004.

(2) The Crown Entities Act 2004 applies to each DHB except to the extent that this Act expressly provides otherwise.

(3) As provided elsewhere in this Act, the following sections of the Crown Entities Act 2004 do not apply to DHBs, or their boards, board members, committee members or employees:

• (a) section 38 (removal of elected members):

• (b) section 60(1) (applications by board members to restrain action):

• (c) sections 62 to 72 (conflicts of interest):

• (d) sections 73 to 76 (delegations):

• (e) section 78 (provisions in Schedule 5):

• (f) section 96 (acquisition of subsidiaries):

• (g) section 100 (acquisition of shares or other interests):

• (h) sections 116 and 117 (employment of employees and chief executives):

• (i) sections 120 to 126 (immunities, indemnities, and insurance):

• (j) section 161 (in relation to shares and interests covered by section 28):

• (k) section 170(1) (in relation to any outputs covered by a Crown funding agreement):

• (l) Schedule 5 (board procedure for statutory entities).

(1) Every DHB has the following objectives:

• (a) to improve, promote, and protect the health of people and communities:

• (b) to promote the integration of health services, especially primary and secondary health services:

• (ba) to seek the optimum arrangement for the most effective and efficient delivery of health services in order to meet local, regional, and national needs:

• (c) to promote effective care or support for those in need of personal health services or disability support services:

• (d) to promote the inclusion and participation in society and independence of people with disabilities:

• (e) to reduce health disparities by improving health outcomes for Maori and other population groups:

• (f) to reduce, with a view to eliminating, health outcome disparities between various population groups within New Zealand by developing and implementing, in consultation with the groups concerned, services and programmes designed to raise their health outcomes to those of other New Zealanders:

• (g) to exhibit a sense of social responsibility by having regard to the interests of the people to whom it provides, or for whom it arranges the provision of, services:

• (h) to foster community participation in health improvement, and in planning for the provision of services and for significant changes to the provision of services:

• (i) to uphold the ethical and quality standards commonly expected of providers of services and of public sector organisations:

• (j) to exhibit a sense of environmental responsibility by having regard to the environmental implications of its operations:

• (k) to be a good employer in accordance with section 118 of the Crown Entities Act 2004.

(2) Each DHB must pursue its objectives in accordance with any plan prepared under section 38, its statement of intent, and any directions or requirements given to it by the Minister under section 33, 33A, or 33B of this Act, or section 103 of the Crown Entities Act 2004, or under section 107 of the Crown Entities Act 2004.

(1) For the purpose of pursuing its objectives, each DHB has the following functions:

• (a) to ensure the provision of services for its resident population and for other people as specified in its Crown funding agreement:

• (b) to actively investigate, facilitate, sponsor, and develop co-operative and collaborative arrangements with persons in the health and disability sector or in any other sector to improve, promote, and protect the health of people, and to promote the inclusion and participation in society and independence of people with disabilities:

• (ba) to collaborate with relevant organisations to plan and co-ordinate at local, regional, and national levels for the most effective and efficient delivery of health services:

• (c) to issue relevant information to the resident population, persons in the health and disability sector, and persons in any other sector working to improve, promote, and protect the health of people for the purposes of paragraphs (a) and (b):

• (d) to establish and maintain processes to enable Maori to participate in, and contribute to, strategies for Maori health improvement:

• (e) to continue to foster the development of Maori capacity for participating in the health and disability sector and for providing for the needs of Maori:

• (f) to provide relevant information to Maori for the purposes of paragraphs (d) and (e):

• (g) to regularly investigate, assess, and monitor the health status of its resident population, any factors that the DHB believes may adversely affect the health status of that population, and the needs of that population for services:

• (h) to promote the reduction of adverse social and environmental effects on the health of people and communities:

• (i) to monitor the delivery and performance of services by it and by persons engaged by it to provide or arrange for the provision of services:

• (j) to participate, where appropriate, in the training of health practitioners and other workers in the health and disability sector:

• (k) to provide information to the Minister for the purposes of policy development, planning, and monitoring in relation to the performance of the DHB and to the health and disability support needs of New Zealanders:

• (l) to provide, or arrange for the provision of, services on behalf of the Crown or any Crown entity within the meaning of the Crown Entities Act 2004:

• (m) to collaborate with pre-schools and schools within its geographical area on the fostering of health promotion and on disease prevention programmes:

• (n) to perform any other functions it is for the time being given by or under any enactment, or authorised to perform by the Minister by written notice to the board of the DHB after consultation with it.

(2) The Minister must, as soon as practicable after giving a notice to a DHB under subsection (1)(n), publish in the Gazette, and present to the House of Representatives, a copy of the notice.

(3) Subsection (1)(c), (f), and (k) is subject to the Privacy Act 1993.

(4) Subsection (1)(c) and (f) does not require a DHB to provide any information that could properly be withheld under the Official Information Act 1982, if a request for that information were made under that Act.

(5) A DHB that, in reliance on subsection (4), decides not to provide relevant information must advise the persons concerned of that decision.

(6) To avoid any doubt, subsection (1)(d) does not limit the capacity of a DHB to establish and maintain processes to enable other population groups to participate in, and contribute to, strategies for the improvement of the health of those groups.

(7) In performing any of its functions in relation to the supply of pharmaceuticals, a DHB must not act inconsistently with the pharmaceutical schedule.

(8) In subsection (1)(ba), relevant organisations means 1 or more organisations that a DHB considers relevant to the provision of health services at a local, regional, or national level (for example, a DHB, the Ministry of Health, or an organisation that provides services under a service agreement).

(1) Except as provided in subsection (2), for the purpose of performing its function under section 23(1)(b), a DHB may enter into a co-operative agreement or arrangement with any person (whether or not that person is involved in the health sector) in order to—

• (a) assist the DHB to meet its objectives set out in section 22; or

• (b) enhance health or disability outcomes for people; or

• (c) enhance efficiencies in the health sector.

(2) A DHB may not enter into a co-operative agreement or arrangement under subsection (1) unless,—

• (a) if the consent of the Minister or authority by regulations is required for that agreement or arrangement by section 28, that consent or authority exists; or

• (b) in any other case, the DHB is authorised to enter into the agreement or arrangement by a plan prepared under section 38, or by the Minister.

(3) Any authority given by the Minister for the purposes of subsection (2) may be given subject to any conditions the Minister specifies.

(4) The Minister must, within 6 months of the commencement of this section, produce guidelines to be followed by DHBs in establishing co-operative agreements or arrangements under subsection (1) so that DHBs follow processes that are fully transparent and designed to ensure that DHBs accomplish their objectives in ways that—

• (a) take full account of all issues concerned; and

• (b) are effective and efficient so as to maximise the benefit to the public or group whom the agreements or arrangements are intended to benefit.

(5) In determining whether or not to enter into co-operative agreements or arrangements under subsection (1), DHBs must comply fully with any guidelines issued under subsection (4).

(6) As soon as practicable after issuing the guidelines for DHBs under subsection (4), the Minister must present to the House of Representatives a copy of those guidelines.

(1) In this Act, service agreement means an agreement under which 1 or more DHBs agree to provide money to a person in return for the person providing services or arranging for the provision of services.

(2) A DHB may, if permitted to do so by a plan prepared under section 38 and in accordance with that plan,—

• (a) negotiate and enter into service agreements containing any terms and conditions that may be agreed; and

• (b) negotiate and enter into agreements to amend service agreements.

(3) A DHB that has entered into a service agreement must monitor the performance under that agreement of the other parties to that agreement.

(1) The board of a DHB has the role set out in section 25 of the Crown Entities Act 2004.

(2) [Repealed]

(3) The board of a DHB must delegate to the chief executive of the DHB, under clause 39 of Schedule 3, the power to make decisions on management matters relating to the DHB, but any such delegation may be made on such terms and conditions as the board thinks fit.

(4) This section does not limit clause 44 of Schedule 3.

(1) The board of a DHB must ensure that the DHB acts in a manner consistent with any relevant plan prepared under section 38, and any directions under section 33, 33A, or 33B of this Act or section 103 or section 107 of the Crown Entities Act 2004.

(2) The duty in subsection (1)—

• (a) applies in addition to the duties of the board in sections 49 to 52 of the Crown Entities Act 2004; and

• (b) is a collective duty owed to the Minister for the purposes of section 58 of the Crown Entities Act 2004.

(3) Despite section 60(1) of the Crown Entities Act 2004, a member of a board of a DHB may not apply for a court order under that section.

(1) Except with the consent of the Minister or in accordance with regulations made under this Act, no DHB may—

• (a) hold any shares or interests in a body corporate or in a partnership, joint venture, or other association of persons; or

• (b) settle, or be or appoint a trustee of, a trust.

(2) The Minister's consent under subsection (1) may be given subject to any conditions the Minister specifies.

(3) Conditions specified by the Minister under subsection (2) must be consistent with section 97 of the Crown Entities Act 2004.

(4) Sections 96 and 100 of the Crown Entities Act 2004 do not apply to DHBs.

(5) Section 161 of the Crown Entities Act 2004 applies to DHBs except in relation to acquisition of securities that are covered by this section.

(1) The board of each DHB consists of—

• (a) 7 members elected in accordance with Schedule 2; and

• (b) up to 4 members appointed by the Minister under section 28(1)(a) of the Crown Entities Act 2004.

(2) If, at an election of members of a board of a DHB, fewer than 7 members are elected or no members are elected, the Minister may, in accordance with the procedure in section 28 of the Crown Entities Act 2004, appoint persons who were eligible to stand in that election to fill the vacant elected member positions, and the persons so appointed hold office in all respects as if they had been elected under this Act.

(3) Where a vacancy occurs in an elective position on a board, the Minister may, in accordance with the procedure in section 28 of the Crown Entities Act 2004, appoint a person for the remainder of the term of office of the person who vacated office, and the provisions of this Act applying to elected members apply to the person so appointed.

(4) In making appointments to a board, the Minister must endeavour to ensure that—

• (a) Maori membership of the board is proportional to the number of Maori in the DHB's resident population (as estimated by Statistics New Zealand); and

• (b) in any event, there are at least 2 Maori members of the board.

(5) Subsection (4) does not limit section 29 of the Crown Entities Act 2004.

(6) Section 31(1)(c) of the Crown Entities Act 2004 applies as if the reference in that section to “interests” were replaced by a reference to “conflicts of interest” (as defined in section 6 of this Act).

(1) If the Minister considers that it is desirable to do so for the purpose of assisting in improving the performance of a DHB, the Minister may appoint 1 or more persons (in this section called Crown monitors) in relation to that DHB.

(2) A board of a DHB must—

• (a) permit each Crown monitor appointed by the Minister in relation to the DHB to attend any meeting of the board; and

• (b) provide the Crown monitor with copies of all notices, documents, and other information that is provided to board members.

(3) The functions of a Crown monitor are to—

• (a) observe the decision-making processes, and the decisions of the board:

• (b) assist the board in understanding the policies and wishes of the Government so that they can be appropriately reflected in board decisions:

• (c) advise the Minister on any matters relating to the DHB, the board, or its performance.

(4) The appointment of a person as a Crown monitor is on terms and conditions agreed between the Minister and the person.

(5) A Crown monitor may provide to the Minister any information that the Crown monitor obtains in the course of acting as such.

(6) Subsection (5) is subject to the Privacy Act 1993.

(1) Where the Minister is seriously dissatisfied with the performance of a board of a DHB, the Minister may, by written notice to the board and the commissioner, dismiss all members of the board and replace the board with a commissioner.

(1A) The Minister may also replace the board with a commissioner, by written notice to the board and the commissioner, if all the members of the board of a DHB are removed from office under this Act and the Crown Entities Act 2004.

(2) Where the Minister replaces a board with a commissioner, the commissioner has all the functions, duties, powers, and protections of the board and of a member of the board except that—

• (a) clauses 14 to 35 of Schedule 3 do not apply to a commissioner; and

• (b) where the commissioner has an interest of the kind described in section 6(2), the commissioner must make the required disclosure to the Minister, and the Minister, under clause 37 of that schedule, must notify any waiver or modification of clause 36(2) of that schedule to the commissioner.

(3) A commissioner may appoint, on any terms and conditions that may be agreed, up to 3 deputy commissioners, each of whom must be a person who would be eligible to be appointed by the Minister to a board of a DHB.

(4) The Minister may at any time, by written notice, dismiss a commissioner from office, and a commissioner may at any time, by written notice, dismiss a deputy commissioner from office with the agreement of the Minister.

(5) All the provisions of this Act and the Crown Entities Act 2004 that apply to appointed members of a board apply, with any necessary modifications, to a commissioner and a deputy commissioner.

(6) A commissioner and any deputy commissioner hold office only until the persons elected at the next election of members of boards take office as board members.

(1) Subpart 1 of Part 3 of the Crown Entities Act 2004 applies to the giving of Ministerial directions.

(2) Without limiting subsection (1), the Minister may, under that Act, give a DHB any directions—

• (a) that specify the persons who are eligible to receive services funded under this Act; and

• (b) that the Minister considers necessary or expedient in relation to any matter relating to the DHB; and

• (c) that are consistent with the objectives and functions of the DHB.

(3) No direction may require the supply to any person of any information relating to an individual that would enable the identification of the individual.

(4) Section 33, and not this section nor Part 3 of the Crown Entities Act 2004, applies to a direction that would more appropriately be given under section 33.

(1) The Minister may, from time to time, by written notice to a DHB, require the DHB to provide or arrange for the provision of any services that are specified in the notice, but the notice may not—

• (a) require the supply of services to any named individuals or organisations; or

• (b) require the supply of services by any named individuals or organisations (other than any DHB); or

• (c) specify the price for any services.

(2) Before giving the notice, the Minister must—

• (a) have regard to section 22 and section 23, the New Zealand health strategy, the New Zealand disability strategy, and any plan prepared under section 38 that the DHB is a party to; and

• (b) consult the board of the DHB as to the services that are to be required to be provided or arranged, and the cost and funding of those services.

(3) A notice under subsection (1) is a direction for the purposes of the Crown Entities Act 2004 and must be published in the Gazette and presented to the House of Representatives in accordance with section 115 of that Act.

(1) A proposal stating how administrative, support, and procurement services within the public health and disability sector should be obtained may be submitted to the Minister by the Director-General or any person or body approved by the Minister for the purpose.

(2) If the Minister has reason to believe that the proposal will enhance the effective and efficient operation of the public health and disability sector and should be implemented, the Minister must—

• (a) consider whether the proposal can be reasonably implemented without a direction under subsection (3); and

• (b) consult any DHB that is not already a party to the proposal and is likely to be affected by it; and

• (c) consult any other person or body that the Minister considers appropriate.

(3) If the Minister considers that the proposal cannot be reasonably implemented otherwise, he or she may give a direction to 1 or more DHBs—

• (a) stating how administrative, support, and procurement services must be obtained (for example, specifying a process to be followed in obtaining those services); or

• (b) stating who must provide particular administrative, support, and procurement services for the DHB or DHBs.

(4) The direction must be in writing and must be signed by the Minister and the Minister of Finance.

(5) Sections 113 and 114(3)(a) of the Crown Entities Act 2004 do not apply to this section.

(6) In this section, administrative, support, and procurement services—

• (a) means services that do not relate directly to, but are necessary for, the provision of care to patients or care or support to people with disabilities; and

• (b) without limiting the generality of paragraph (a), includes any of the following:

  • (i) procurement of non-clinical and clinical supplies:

  • (ii) financial services:

  • (iii) human resources and payroll services:

  • (iv) clerical services:

  • (v) facilities management, engineering, and maintenance services:

  • (vi) information systems and technology.

(1) The Minister may give a direction to all DHBs to comply with stated requirements for the purpose of supporting government policy on improving the effectiveness and efficiency of the public health and disability sector.

(2) The direction must be in writing and must be signed by the Minister and the Minister of Finance.

(3) Before giving the direction, the Minister must, to the extent (if any) that the Minister considers necessary in the circumstances,—

• (a) consult all DHBs; and

• (b) consult persons that the Minister considers are representative of the interests of persons likely to be substantially affected by the proposed direction.

(4) As soon as practicable after giving the direction, the Minister must—

• (a) notify all DHBs that the direction has been given and that it will come into force subject to subsection (5); and

• (b) present a copy of the direction to the House of Representatives.

(5) The direction comes into force 15 sitting days after it is presented to the House of Representatives unless the House of Representatives resolves, in that period, to disapply the direction.

(6) Every DHB must give effect to the direction as soon as it comes into force.

(7) As soon as practicable after the direction comes into force, the Minister must ensure that a copy of it is published in the Gazette and on an Internet site operated by the Ministry of Health.

(8) If the direction does not come into force, the Minister must, as soon as practicable, notify all DHBs that the direction has been disapplied and that it will not come into force.

(9) Section 113 of the Crown Entities Act 2004 applies to a direction given under this section as if it were a Ministerial direction given under that Act.

(10) No direction may be given under this section to Crown entity subsidiaries.

(11) For the purposes of section 115(5) of the Crown Entities Act 2004, the procedure set out in this section is a procedure for giving directions.

The board of a DHB must, within 3 months of the commencement of this Act, establish a committee, to advise on health improvement measures, called the community and public health advisory committee, and must provide for Maori representation on the committee.

The board of a DHB must, within 3 months of the commencement of this Act, establish a committee, to advise on disability issues, called the disability support advisory committee, and must provide for Maori representation on the committee.

The board of a DHB must, within 3 months of the commencement of this Act, establish a committee, to advise on matters relating to hospitals, called the hospital advisory committee, and must provide for Maori representation on the committee.

(1) The Minister—

• (a) must direct every DHB to prepare a plan for each financial year beginning on or after 1 July 2011; and

• (b) may direct a DHB to prepare or contribute to 1 or more other plans.

(2) Every plan—

• (a) must address—

  • (i) local, regional, and national needs for health services; and

  • (ii) how health services can be properly co-ordinated to meet those needs; and

  • (iii) the optimum arrangement for the most effective and efficient delivery of health services; and

• (b) must demonstrate how a DHB that is a party to the plan is to give effect to the purposes of this Act; and

• (c) must demonstrate how a DHB that is a party to the plan is to operate in a financially responsible manner; and

• (d) must reflect the overall direction set out in, and not be inconsistent with, the New Zealand health strategy and the New Zealand disability strategy.

(3) A DHB that is a party to a plan must comply with any requirements (including any procedural requirements) relating to the plan that are stated in regulations (if any).

(4) The plan is finalised once it is—

• (a) approved by the Minister after he or she is satisfied that the requirements of subsections (2) and (3) have been met; and

• (b) signed by the Minister and every DHB that is a party to the plan.

(5) A DHB that is a party to the plan must give effect to it and any amendments to it.

(6) The plan may be amended at any time in the same manner as it was made.

(7) A DHB that is a party to the plan must ensure that the plan and any amendments to it are publicly available as soon as is reasonably practicable after the plan is finalised.

(8) In making the plan (and any amendments to it) publicly available, a DHB may omit any information that may properly be withheld under the Official Information Act 1982 if a request for that information were made under that Act.

(1) The Minister may act under subsection (2) if, after the Minister directs 1 or more DHBs to prepare or contribute to a plan under section 38,—

• (a) 2 or more DHBs that are parties to the plan cannot agree on its contents; or

• (b) 1 or more DHBs that are parties to the plan and the Minister cannot agree on its contents.

(2) If subsection (1) applies, the Minister may establish an advisory body and refer the dispute to it for its consideration and advice.

(3) The advisory body must consist of at least 3 members, each appointed by the Minister on any terms and conditions (including terms and conditions as to remuneration and travelling allowances and expenses) that the Minister determines by written notice to the member.

(4) The Minister must—

• (a) make a decision on the dispute by taking into account the advice given by the advisory body; and

• (b) as soon as practicable after making the decision, publish the decision in general terms on an Internet site operated by the Ministry of Health.

(5) A DHB that is a party to the dispute must give effect to the Minister's decision.

(1) Every DHB must operate in a financially responsible manner and, for this purpose, must endeavour to cover all its annual costs (including the cost of capital) from its net annual income.

(2) This section does not limit section 51 of the Crown Entities Act 2004.

(1) Each DHB must prepare statements of intent, annual financial statements, and annual reports in accordance with Part 4 of the Crown Entities Act 2004 and regulations made under section 92(1)(d) of this Act.

(2) Without limiting sections 141 to 149 of the Crown Entities Act 2004, every statement of intent of a DHB must include provisions stating the procedure for any disposal of land transferred to, or vested in, the DHB under the Health Sector (Transfers) Act 1993.

(3) Without limiting section 151 of the Crown Entities Act 2004, every annual report of a DHB must contain—

• (a) [Repealed]

• (b) a report on the extent to which the DHB has met its other objectives under section 22; and

• (c) a report on the performance of the hospital and related services it owns, including the amount of any capital investment made or required; and

• (d) [Repealed]

• (e) [Repealed]

• (f) [Repealed]

• (g) the names of any bodies corporate, partnerships, joint ventures, or other associations of persons, or trusts with which the DHB is involved in accordance with section 28(1) or any other provision of this Act; and

• (h) a list of all shares or interests held in bodies corporate, partnerships, joint ventures, or other associations of persons, or trusts named in accordance with paragraph (g); and

• (i) a statement of how the DHB has given effect and intends to give effect to its functions specified in section 23(1)(b) to (e).

(4) For the purposes of section 151(1)(j) of the Crown Entities Act 2004, the annual report of a DHB must disclose any interests to which a permission, waiver, or modification given under clause 36(4) or clause 37(1) of Schedule 3 or clause 38(4) or clause 39(1) of Schedule 4 relates, together with a statement of who gave the permission, waiver, or modification, and any conditions of amendments to, or revocation of, the permission, waiver, or modification.

(1) Without limiting sections 133 and 134 of the Crown Entities Act 2004, the Minister of Finance may, by written notice, require any DHB to supply to that Minister or any other person or class of persons that the Minister specifies, any economic or financial forecasts or other economic or financial information relating to the DHB or any or all of its Crown entity subsidiaries that the Minister specifies in the notice, and the DHB must comply with the requirement.

(2) [Repealed]

(3) No requirement of the Minister under this section may require the supply of any information that would infringe the privacy of any natural person or deceased natural person, unless the person (or a representative of the deceased person) has consented to the supply.

(4) Subsection (3) applies despite section 134 of the Crown Entities Act 2004.

(1) Schedules 2 and 3 apply in respect of DHBs.

(2) Schedule 4 applies to each community and public health advisory committee, disability support advisory committee, and hospital advisory committee.

(3) Section 78 and Schedule 5 of the Crown Entities Act 2004 do not apply to the board of a DHB.

(1) An organisation called the Pharmaceutical Management Agency (Pharmac) is established.

(2) Pharmac is a Crown entity for the purposes of section 7 of the Crown Entities Act 2004.

(3) The Crown Entities Act 2004 applies to Pharmac except to the extent that this Act expressly provides otherwise.

(4) Pharmac is owned by the Crown.

The objectives of Pharmac are—

• (a) to secure for eligible people in need of pharmaceuticals, the best health outcomes that are reasonably achievable from pharmaceutical treatment and from within the amount of funding provided; and

• (b) any other objectives it is given by or under any enactment, or authorised to perform by the Minister by written notice to the board of Pharmac after consultation with it.

The functions of Pharmac are to perform the following within the amount of funding provided to it and in accordance with its statement of intent (including the statement of forecast service performance) and (subject to section 65) any directions given under the Crown Entities Act 2004:

• (a) to maintain and manage a pharmaceutical schedule that applies consistently throughout New Zealand, including determining eligibility and criteria for the provision of subsidies:

• (b) to manage incidental matters arising out of paragraph (a), including in exceptional circumstances providing for subsidies for the supply of pharmaceuticals not on the pharmaceutical schedule:

• (c) to engage as it sees fit, but within its operational budget, in research to meet the objectives set out in section 47(a):

• (d) to promote the responsible use of pharmaceuticals:

• (e) any other functions it is for the time being given by or under any enactment, or authorised to perform by the Minister by written notice to the board of Pharmac after consultation with it.

In carrying out its functions under section 48, Pharmac must, when it considers it appropriate to do so,—

• (a) consult on matters that relate to the management of pharmaceutical expenditure with any sections of the public, groups, or individuals that, in the view of Pharmac, may be affected by decisions on those matters; and

• (b) take measures to inform the public, groups, and individuals of Pharmac's decisions concerning the pharmaceutical schedule.

(1) The board of Pharmac must establish the following advisory committees under clause 14(1)(a) of Schedule 5 of the Crown Entities Act 2004:

• (a) a pharmacology and therapeutics advisory committee to provide objective advice to Pharmac on pharmaceuticals and their benefits:

• (b) a consumer advisory committee to provide input from a consumer or patient point of view.

(2) [Repealed]

(3) [Repealed]

(4) Despite clause 14(1)(a) of Schedule 5 of the Crown Entities Act 2004, the members of the pharmacology and therapeutics advisory committee are appointed by the Director-General in consultation with the board of Pharmac.

The Minister must, as soon as practicable after giving a notice under section 47 or section 48, publish in the Gazette, and present to the House of Representatives, a copy of the notice.

(1) The board of Pharmac consists of up to 6 members appointed under section 28 of the Crown Entities Act 2004.

(2) [Repealed]

(3) [Repealed]

(1) In this section, unless the context otherwise requires,—

(2) It is declared that nothing in Part 2 of the Commerce Act 1986 applies to—

• (a) any agreement to which Pharmac is a party and that relates to pharmaceuticals for which full or part-payments may be made from money appropriated under the Public Finance Act 1989; or

• (b) any act, matter, or thing, done by any person for the purposes of entering into such an agreement; or

• (c) any act, matter, or thing, done by any person to give effect to such an agreement.

(1) An organisation called the New Zealand Blood Service (NZBS) is established.

(2) NZBS is a Crown entity for the purposes of section 7 of the Crown Entities Act 2004.

(3) The Crown Entities Act 2004 applies to NZBS except to the extent that this Act expressly provides otherwise.

(4) NZBS is owned by the Crown.

(1) The functions of NZBS are—

• (a) to manage the donation, collection, processing, and supply of blood, controlled human substances, and related or incidental matters, in accordance with its statement of intent (including the statement of forecast service performance) and (subject to section 65) any directions given under the Crown Entities Act 2004; and

• (b) if it is an appointed entity (as defined in section 55 of the Human Tissue Act 2008), to perform the functions for which it is for the time being responsible under section 63 of that Act; and

• (c) to undertake any other functions it is for the time being given by or under any enactment, or authorised to perform by the Minister by written notice to the board of NZBS after consultation with it, in accordance with its statement of intent (including the statement of forecast service performance) and (subject to section 65) any directions given under the Crown Entities Act 2004.

(2) The Minister must, as soon as practicable after giving a notice under subsection (1), publish in the Gazette, and present to the House of Representatives, a copy of the notice.

(3) In this section, blood and controlled human substance have the same meaning as in section 55 of the Human Tissue Act 2008.

(1) The board of NZBS consists of up to 7 members appointed under section 28 of the Crown Entities Act 2004.

(2) [Repealed]

(3) [Repealed]

(1) The body corporate established by section 16 of the Health Sector (Transfers) Act 1993 is continued under the name of the Crown Health Financing Agency (CHFA).

(2) CHFA is a Crown entity for the purposes of section 7 of the Crown Entities Act 2004.

(3) The Crown Entities Act 2004 applies to CHFA except to the extent that this Act expressly provides otherwise.

(4) CHFA is owned by the Crown.

(1) The functions of CHFA are to undertake the following in accordance with its statement of intent (including the statement of forecast service performance) and any directions given under the Crown Entities Act 2004:

• (a) any functions that are given to it by or under any enactment (whether before or after the commencement of this Act):

• (b) any other functions it is authorised to perform by the Minister by written notice to the board of CHFA after consultation with it.

(2) The Minister must, as soon as practicable after giving a notice under subsection (1), publish in the Gazette, and present to the House of Representatives, a copy of the notice.

(1) The board of CHFA consists of up to 5 members appointed under section 28 of the Crown Entities Act 2004.

(2) [Repealed]

(3) [Repealed]

(4) Each director of CHFA who holds office as such at the time of the commencement of this section continues in office as a member of the board of CHFA for the remainder of his or her existing term.

(5) [Repealed]

(6) [Repealed]

(1) An organisation called the Health Quality and Safety Commission (HQSC) is established.

(2) HQSC is a Crown entity for the purposes of section 7 of the Crown Entities Act 2004.

(3) The Crown Entities Act 2004 applies to HQSC except to the extent that this Act expressly provides otherwise.

The objectives of HQSC are to lead and co-ordinate work across the health and disability sector for the purposes of—

• (a) monitoring and improving the quality and safety of health and disability support services; and

• (b) helping providers across the health and disability sector to improve the quality and safety of health and disability support services.

(1) The functions of HQSC are—

• (a) to advise the Minister on how quality and safety in health and disability support services may be improved; and

• (b) to advise the Minister on any matter relating to—

  • (i) health epidemiology and quality assurance; or

  • (ii) mortality; and

• (c) to determine quality and safety indicators (such as serious and sentinel events) for use in measuring the quality and safety of health and disability support services; and

• (d) to provide public reports on the quality and safety of health and disability support services as measured against—

  • (i) the quality and safety indicators; and

  • (ii) any other information that HQSC considers relevant for the purpose of the report; and

• (e) to promote and support better quality and safety in health and disability support services; and

• (f) to disseminate information about the quality and safety of health and disability support services; and

• (g) to perform any other function that—

  • (i) relates to the quality and safety of health and disability support services; and

  • (ii) HQSC is for the time being authorised to perform by the Minister by written notice to HQSC after consultation with it.

(2) In performing its functions HQSC must, to the extent it considers appropriate, work collaboratively with—

• (a) the Ministry of Health; and

• (b) the Health and Disability Commissioner; and

• (c) providers; and

• (d) any groups representing the interests of consumers of health or disability support services; and

• (e) any other organisations, groups, or individuals that HQSC considers have an interest in, or will be affected by, its work.

(3) The Minister must, as soon as practicable after giving a notice to HQSC under subsection (1)(g)(ii), publish in the Gazette, and present to the House of Representatives, a copy of the notice.

The board of HQSC consists of at least 7 members appointed under section 28 of the Crown Entities Act 2004.

(1) HQSC may appoint 1 or more committees to carry out any of the following functions that HQSC specifies by notice to the committee:

• (a) to review and report to HQSC on specified classes of deaths of persons, or deaths of persons of specified classes, with a view to reducing the numbers of deaths of those classes or persons, and to continuous quality improvement through the promotion of ongoing quality assurance programmes:

• (b) to advise on any other matters related to mortality that HQSC specifies in the notice.

(2) A committee appointed under subsection (1) (a mortality review committee) must develop strategic plans and methodologies that—

• (a) are designed to reduce morbidity and mortality; and

• (b) are relevant to the committee's functions.

(3)  HQSC—

• (a) must, at least annually, provide the Minister with a report on the progress of mortality review committees; and

• (b) must include each such report in HQSC's next annual report.

(4) The provisions of Schedule 5 apply in relation to a mortality review committee.

(5) Every person who fails, without reasonable excuse, to comply with a requirement imposed under Schedule 5 by the chairperson of a mortality review committee commits an offence and is liable to a fine not exceeding $10,000.

(6) Every person who discloses information contrary to Schedule 5 commits an offence and is liable on summary conviction to a fine not exceeding $10,000.

(7) Any member of a registered occupational profession who commits an offence under subsection (5) or (6) is liable to any disciplinary proceedings of that profession in respect of the offence, whether or not he or she is fined under that subsection.

In sections 61 to 69, organisation means each of the following organisations:

• (a) Pharmac:

• (b) NZBS:

• (c) CHFA:

• (d) HQSC.

The board of an organisation has the role set out in section 25 of the Crown Entities Act 2004.

(1) [Repealed]

(2) [Repealed]

(3) No direction may be given to Pharmac under section 103 of the Crown Entities Act 2004 that would—

• (a) require Pharmac to purchase a pharmaceutical from a particular source or at a particular price; or

• (b) provide any pharmaceutical or pharmaceutical subsidy or other benefit to a named individual.

(4) No direction under section 103 of the Crown Entities Act 2004 may be issued to NZBS unless it concerns—

• (a) [Repealed]

• (b) protecting the gift status, donation, collection, processing, and supply of blood or controlled human substances (as defined in section 55 of the Human Tissue Act 2008); or

• (c) withdrawal of contaminated blood or contaminated controlled human substances from supply.

(4A) Despite anything in the Crown Entities Act 2004, subsection (4) does not limit—

• (a) the ability of the Minister to direct NZBS under section 147 of that Act; or

• (b) section 107 of that Act.

(5) [Repealed]

(6) Directions given under section 20 of the Health Sector (Transfers) Act 1993 to RHMU are deemed to be directions given under section 103 of the Crown Entities Act 2004.

(1) Every organisation must operate in a financially responsible manner and for this purpose must endeavour to cover all its annual costs (including the cost of capital) from its net annual income.

(1A) Subsection (1) does not apply to HQSC in respect of costs, which are to be met by the Ministry of Health in a financially responsible manner that allows HQSC to carry out its functions to a high standard.

(2) This section does not limit section 51 of the Crown Entities Act 2004.

The statements of intent, annual financial statements, and annual reports of an organisation under the Crown Entities Act 2004 must comply with any regulations made under section 92(1)(d) of this Act.

(1) Without limiting section 133(2) of the Crown Entities Act 2004, the Minister of Finance may from time to time, by written notice, require any organisation to supply to that Minister, or any other person or class of persons that the Minister specifies, any economic or financial forecasts or other economic or financial information relating to the organisation or any or all of its Crown entity subsidiaries that the Minister specifies in the notice, and the organisation must comply with the requirement.

(2) [Repealed]

(3) No requirement of the Minister under this section may require the supply of any information that would infringe the privacy of any natural person or deceased natural person, unless the person (or a representative of the deceased person) has consented to the supply.

(4) Subsection (3) applies despite section 134 of the Crown Entities Act 2004.

The provisions set out in Schedule 6 apply in respect of Pharmac, NZBS, CHFA, and HQSC.

(1) The Minister may appoint 1 or more persons as a Commission under the Commissions of Inquiry Act 1908 to conduct an inquiry or investigation into, and report to the Minister on, 1 or more of the following:

• (a) the funding or provision of health services, disability support services, or both:

• (b) the management of any publicly-owned health and disability organisation:

• (c) a complaint or matter that arises or may arise under this Act or out of the administration of this Act.

(2) Any appointment under subsection (1) may be made subject to any terms and conditions (being terms and conditions not inconsistent with any enactment) the Minister determines.

(3) Sections 11 and 12 of the Commissions of Inquiry Act 1908 (which relate to costs) do not apply to any Commission appointed under subsection (1).

(4) There may be paid out of money appropriated by Parliament for the purpose to any person or persons appointed under subsection (1)—

• (a) remuneration not within paragraph (b) for services as a member at a rate and of a kind determined by the Minister in accordance with the fees framework; and

• (b) reimbursement for actual and reasonable travelling and other expenses incurred in carrying out his or her office as a member.

(4A) For the purposes of subsection (4), fees framework means the framework determined by the Government from time to time for the classification and remuneration of statutory and other bodies in which the Crown has an interest.

(5) Any Commission appointed under subsection (1) may regulate its procedure in any manner (being a manner not inconsistent with any enactment or with any terms and conditions determined under subsection (2)) it thinks fit.

(6) Nothing in this section limits any powers that the Minister has under any enactment or rule of law.

(1) The Minister may appoint a person or persons (an inquiry board) to conduct an inquiry into, and report to the Minister on, 1 or more of the following:

• (a) the funding or provision of health services, disability support services, or both:

• (b) the management of any publicly-owned health and disability organisation:

• (c) a complaint or matter that arises or may arise under this Act or out of the administration of this Act.

(2) For the purposes of subsection (1)(a), the services need not be or have been funded or provided—

• (a) under this Act; or

• (b) after the commencement of this section.

(3) The Director-General may, without further authority than this subsection, exercise the Minister's powers under subsection (1) in relation to a proposed inquiry, and, if the Director-General does so, then, in relation to the inquiry, it is only the Director-General who—

• (a) may exercise the Minister's powers under sections 73 to 75; and

• (b) must perform the Minister's duties under those sections.

(4) The Director-General must not exercise the Minister's powers under sections 73 to 75, and perform the Minister's duties under those sections, in accordance with subsection (3), unless the Director-General has first consulted the Minister about the Director-General doing so.

(5) Nothing in this section, or sections 73 to 75, limits any powers that the Minister, or the Director-General, has under any other enactment or rule of law.

(1) Subsection (2) applies if the Minister proposes to appoint an inquiry board under section 72(1) to inquire into a matter—

• (a) that is being investigated by the Health and Disability Commissioner; or

• (b) that is the subject of proceedings—

  • (i) that relate to an alleged breach of the Code of Health and Disability Services Consumers' Rights; and

  • (ii) that are known to the Health and Disability Commissioner; or

• (c) that includes a complaint—

  • (i) that is made against, or that directly involves, a health practitioner (within the meaning of section 4 of the Health and Disability Commissioner Act 1994); and

  • (ii) that is the subject of proceedings before the appropriate health professional body (within the meaning of section 38(2) of that Act).

(2) If this subsection applies, the Minister must, before appointing the inquiry board, consult the Health and Disability Commissioner or, as the case requires, the appropriate health professional body, on the proposed appointment.

(3) If the Minister proposes to appoint an inquiry board under section 72(1) to inquire into a matter in which the Ministry of Health is, or was, or may be, or may have been, involved, the Minister must seek advice on the proposed appointment from any adviser independent from the Ministry of Health (for example, the Solicitor-General) the Minister thinks fit.

Before appointing an inquiry board under section 72(1), the Minister must select a person as prospective sole or principal member of the proposed inquiry board, and discuss with the person—

• (a) the content of the terms of reference for the proposed inquiry (including the time by which the inquiry board must finally report); and

• (b) whether the inquiry should be conducted in an inquisitorial or in an adversarial manner, and any other instructions as to procedure to be given under section 75(3)(b); and

• (c) the terms and conditions of appointment of the sole or principal member of the proposed inquiry board; and

• (d) whether the inquiry board needs any additional member (or additional members) and, if so, who might be appointed as an additional member (or as additional members) of the inquiry board; and

• (e) the support personnel, resources, and services that the proposed inquiry board is likely to need to be able to conduct the inquiry in accordance with—

  • (i) the instructions proposed to be given under section 75(3)(b); and

  • (ii) the requirements stated in sections 78 and 79.

(1) After the discussions referred to in section 74, the Minister may, under section 72(1), appoint a person as sole or principal member of the inquiry board on mutually acceptable terms and conditions.

(2) If, after the discussions referred to in section 74, the Minister considers an inquiry board needs a member or members in addition to the sole or principal member, the Minister may, under section 72(1), appoint any person or persons as an additional member or as additional members of the inquiry board on mutually acceptable terms and conditions.

(3) On appointing an inquiry board for an inquiry under section 72(1), the Minister must—

• (a) set the terms of reference for the inquiry (including the time by which the inquiry board must finally report); and

• (b) give the following procedural instructions that the inquiry board (and its support personnel) must, together with the procedural requirements stated in sections 78 and 79, apply and follow during the inquiry:

  • (i) an instruction referred to in section 77(a); and

  • (ii) an instruction referred to in section 77(g) if (and only if)—

    • (A) the instruction referred to in section 77(a) given by the Minister is that the inquiry be conducted in an inquisitorial manner; and

    • (B) the Minister thinks fit to give an instruction referred to in section 77(g); and

  • (iii) any other instruction or instructions referred to in section 77 that the Minister thinks fit to give.

(4) In any inquiry the Minister may, at any time after appointing the inquiry board,—

• (a) alter the inquiry board (including the sole or principal member) appointed:

• (b) alter the terms of reference set (including the time by which the inquiry board must finally report):

• (c) add, to the instructions already given to the inquiry board under subsection (3)(b), further instructions referred to in any paragraph (except paragraph (a) or paragraph (g)) of section 77.

No member of an inquiry board (or of the support personnel for an inquiry board) has any civil liability for anything the member does or says or reports, or omits to do or say or report, in good faith in pursuance or intended pursuance of his or her duties as a member of the inquiry board (or of the support personnel for the inquiry board).

The instructions referred to in section 75(3)(b) are—

• (a) that the inquiry be conducted in an inquisitorial or in an adversarial manner:

• (b) that the inquiry be conducted efficiently and with as much expedition as is possible, while retaining procedural flexibility:

• (c) that the inquiry board avoid unnecessary formality:

• (d) that, to the extent reasonably possible, costs of the inquiry be kept within reasonable bounds:

• (e) that the inquiry board recognise tikanga Maori where appropriate:

• (f) that the inquiry board receive any evidence written or spoken in Maori (but the fact that this instruction has, or has not, been given to the inquiry board is not to affect the application (if any) of the Maori Language Act 1987 in proceedings before the inquiry board):

• (g) that the questioning of witnesses (other than by the inquiry board or its support personnel) be available only if—

  • (i) a person's interests may be adversely affected by evidence or a statement of a witness or, and in exceptional circumstances only, a refusal to allow questioning would otherwise contravene natural justice; and

  • (ii) no other procedure would protect adequately the person's interests or avoid the other contravention of natural justice:

• (h) that the inquiry board hold public hearings in places specified by the Minister, subject to the inquiry board's powers under section 79 to hold hearings in private and prohibit publication or disclosure of proceedings:

• (i) that witnesses who give information in a hearing be given a transcript of the hearing relating to the information and a reasonable chance to clarify the information or to provide any relevant further information:

• (j) that the inquiry board have the powers under section 82 to investigate and the power under section 83 to summon witnesses.

In any inquiry, the inquiry board must—

• (a) give witnesses notice before a hearing of matters in respect of which they will be asked questions in the hearing:

• (b) give persons who are the subject of damaging or adverse allegations a reasonable chance to respond to those allegations:

• (c) draw to a person's attention any proposed criticisms by the inquiry board of the person, so that the person has a reasonable chance to respond to those criticisms.

(1) Each hearing an inquiry board conducts for the purposes of its inquiry must be held in public.

(2) Subsection (1) is subject to subsections (3) to (5).

(3) An inquiry board that considers it proper to do so after having had regard to the interests of any person and to the public interest may—

• (a) hold all or any part of a hearing in private:

• (b) make an order prohibiting the publication or disclosure of any report or account of all or any part of the proceedings before it, whether held in public or in private:

• (c) make an order prohibiting the publication or disclosure of all or any part of any evidence given, or any books, papers, documents, or records produced, at any hearing.

(4) An inquiry board may make an order under subsection (3)(b) or (c) on its own initiative or an application by any person for the purpose.

(5) If an inquiry board makes an order under subsection (3), the inquiry board must state in the order—

• (a) the inquiry board's reasons for making the order; and

• (b) in the case of an order made under subsection (3)(b) or (c), the time (if any) at which, or the circumstances (if any) in which, the order ceases to have effect.

(6) If an inquiry board makes an order, under subsection (3)(b) or (c), in respect of information, that information must not while that order has effect be made available under any of the Local Government Official Information and Meetings Act 1987, the Official Information Act 1982, or the Privacy Act 1993.

(7) An inquiry board may at any time deliberate in private as to its decision on any matter or question arising in the course of the inquiry.

(8) Nothing in this section prevents an inquiry board from at any time seeking information or questioning people outside a hearing as to where information relevant to the inquiry might be obtained.

In any inquiry, the inquiry board may adopt further procedures for the inquiry that are not inconsistent with—

• (a) instructions given under subsections (3)(b) and (4)(c) of section 75:

• (b) the requirements stated in sections 78 and 79.

(1) An inquiry board may receive as evidence any statement, document, information, or matter that, in the inquiry team's opinion, may help it meet its terms of reference, whether or not the statement, document, information, or matter would be admissible in a court of law.

(2) An inquiry board may take evidence on oath.

(3) An inquiry board may permit a person appearing as a witness before it to give evidence by tendering a written statement and, if the inquiry board thinks fit, verifying it by oath.

(1) If the Minister has given an inquiry board an instruction referred to in section 77(j) then, for the purposes of its inquiry, the inquiry board or any person authorised by it in writing to do so may—

• (a) inspect and examine any books, papers, documents, records, or things (for example, medical equipment, parts of or substances from a human body, or specimens):

• (b) require any person to produce for examination any books, papers, documents, records, or things (for example, medical equipment, parts of or substances from a human body, or specimens) in the person's possession or control, and to allow copies of or extracts from any of those books, papers, documents, or records to be made:

• (c) require any person to give, in a form approved by or acceptable to the inquiry board, any information or particulars it requires, and any copies of or extracts from any books, papers, documents, or records referred to in paragraph (b).

(2) The inquiry board may, if it thinks fit, require that any written information or particulars or any copies or extracts given under this section be verified by statutory declaration or another means the inquiry board identifies.

(3) Every person has the same privileges in relation to the giving of information to the inquiry board, the answering of questions put by the inquiry board, and the production of books, papers, documents, records, and things to the inquiry board, as witnesses have in courts of law.

(1) If the Minister has given an inquiry board an instruction referred to in section 77(j) then, for the purposes of its inquiry, the inquiry board may issue a summons requiring any person to—

• (a) attend and give evidence; and

• (b) produce any books, papers, documents, records, or things in the person's possession or control that are relevant to the subject of the inquiry.

(2) A witness is not required to attend and give evidence or produce any things in accordance with a summons issued under subsection (1) unless, at the time of the service of the summons or at some other reasonable time before the day on which the attendance of the witness would, apart from this subsection, be required, there is tendered or paid to the witness a sum in respect of the witness' allowances and travelling expenses in accordance with the scale prescribed for the time being by regulations made under the Summary Proceedings Act 1957.

(3) The summons must be in writing and state the place and time at which the witness is required to attend.

(4) The inquiry board may issue a summons on its own initiative or an application by any person for the purpose.

(5) The power to issue the summons may be exercised by—

• (a) the sole or principal member of the inquiry board; or

• (b) any other member of the inquiry board purporting to act by direction or with the authority of the principal member of the inquiry board.

(1) A summons to a witness may be served by—

• (a) delivering it to the witness; or

• (b) leaving it at the witness' usual place of residence; or

• (c) posting it by registered post addressed to the witness at the witness' usual place of residence.

(2) The summons must be served at least 10 days before the day on which the attendance of the witness is required.

(3) A summons served under subsection (1)(c) must be treated as having been served at the time when the letter would be delivered in the ordinary course of post.

Every witness giving evidence, and every counsel or agent or other person appearing, before an inquiry board, has the same privileges and immunities as witnesses and counsel in courts of law.

(1) Every person commits an offence who, after being summoned to attend to give evidence before an inquiry board or to produce to it any books, papers, documents, records, or things, without sufficient cause,—

• (a) fails to attend in accordance with the summons; or

• (b) refuses to be sworn or to give evidence, or having been sworn refuses to answer any question that the person is lawfully required by the inquiry board or any member of it to answer concerning the subject of the inquiry; or

• (c) fails to produce any such book, paper, document, record, or thing.

(2) Every person commits an offence who without lawful excuse contravenes any order made by an inquiry board under section 79(3)(b) or (c).

(3) Every person commits an offence who—

• (a) wilfully obstructs or hinders an inquiry board or any member of it or any authorised person in any inspection or examination of books, papers, documents, records, or things, under section 82(1)(a); or

• (b) without sufficient cause, fails to comply with any requirement of an inquiry board or any authorised person made under section 82(1)(b) or (c).

(4) Every person commits an offence who wilfully interrupts or obstructs any hearing conducted by an inquiry board.

(5) Every person who commits an offence against this section is liable on summary conviction to a fine not exceeding $10,000.

The validity or enforceability of any deed, agreement, right, or obligation entered into, or incurred by, the Crown or a publicly-owned health and disability organisation is not affected by a failure by the Crown or the organisation to comply with—

• (a) any provision in sections 3, 4, or 8, or Parts 3 and 4; or

• (b) any regulations made under section 92(1)(e); or

• (c) any provision of Schedules 3 to 6; or

• (d) any provision in any statement of intent or plan prepared under section 38; or

• (e) any direction or requirement given under this Act or any other Act.

(1) Where the Crown or a DHB gives notice of the terms and conditions on which the Crown or the DHB will make a payment to any person or persons, and, after notice is given, such a payment is accepted by any such person from the Crown or DHB, then—

• (a) acceptance by the person of the payment constitutes acceptance by the person of the terms and conditions; and

• (b) compliance by the person with the terms and conditions may be enforced by the Crown or DHB (as the case may be) as if the person had signed a deed under which the person agreed to the terms and conditions.

(2) Any terms and conditions of which notice is given under subsection (1), unless they expressly provide otherwise, are deemed to include a provision to the effect that 12 weeks' notice must be given of any amendment or revocation of the terms and conditions.

(3) Every notice, and every amendment or revocation of a notice, must be published in the Gazette before the notice, amendment, or revocation takes effect; and, as soon as practicable, the Minister must present a copy to the House of Representatives.

(4) No notice may be issued under this section that would bind Pharmac or NZBS.

(1) The principles stated in subsection (2) apply to the Crown and to a DHB whenever the Crown or a DHB proposes to issue a notice under section 88.

(2) The principles are—

• (a) that it is desirable to maintain national consistency in the terms and conditions set in respect of the same or substantially the same services; but

• (b) that it needs to be recognised that there are circumstances when there is good reason to depart from terms and conditions set in respect of the same or substantially the same services, including, without limitation,—

  • (i) special circumstances relating to a geographical area; or

  • (ii) the need to adjust the amounts payable for services; or

  • (iii) the need to update standards set for services.

(3) A DHB may not issue a notice under section 88 without the written approval of the Minister if the proposed notice—

• (a) relates to services in respect of which the DHB has not previously issued a notice; or

• (b) sets terms and conditions in respect of particular services that depart from terms and conditions set out in an existing notice in respect of the same or substantially the same services; or

• (c) differentiates between persons or classes of person accepting payment under section 88.

(4) The Minister's approval may be given subject to any conditions the Minister specifies.

(5) Any notice under section 88 that departs from an existing notice in the manner referred to in subsection (3)(b) or differentiates in the manner referred to in subsection (3)(c) must include a statement of the reasons for the departure or differentiation.

(6) In this section, existing notice means a notice issued under section 88, or continued by section 112(3), that is for the time being in force.

(7) The Minister must present to the House of Representatives a copy of any approval given under this section.

(1) A member of a board, or of a committee of a board, of a publicly-owned health and disability organisation is not liable for any liability, or act or omission, of the organisation.

(2) A member of a board, or of a committee of a board, of a publicly-owned health and disability organisation is not liable to the organisation for any act or omission done or omitted in his or her capacity as a member, if he or she acted in good faith, and with reasonable care, in pursuance of the functions of the organisation.

(2A) Section 59(3) of the Crown Entities Act 2004 (which provides that a statutory entity may bring an action against a member for breach of an individual duty) does not apply to a member of a publicly-owned health and disability organisation, unless it is shown by that publicly-owned health and disability organisation that the person did not act with good faith, or with reasonable care.

(3) Every member of the board, or of any committee of the board, of a publicly-owned health and disability organisation is indemnified by the organisation—

• (a) for costs and damages for any civil liability arising from any action brought by a third party in respect of any act or omission done or omitted in his or her capacity as a member, if he or she acted in good faith, and with reasonable care, in pursuance of the functions of the organisation; and

• (b) for costs arising from any successfully defended criminal proceeding in relation to any such act or omission.

(4) A member of a committee established or appointed under Part 2 is not liable for any act or omission done or omitted in his or her capacity as a member, if he or she acted in good faith, and with reasonable care, in pursuance of the functions of the committee.

(5) Sections 120 to 126 of the Crown Entities Act 2004 do not apply to a publicly-owned health and disability organisation, members of the board or a committee of the board of a publicly-owned health and disability organisation, or office holders or employees of a publicly-owned health and disability organisation.

Neither the Crown nor any publicly-owned health and disability organisation may make any payment to, or otherwise compensate, any person in respect of the person ceasing for any reason to hold any office established by or under this Act.

(1) The Governor-General may, by Order in Council, make regulations for all or any of the following purposes:

• (a) imposing restrictions and requirements relating to reinsurance, service agreements, and notices under section 88:

• (b) specifying the circumstances in which a person may lend money to a DHB:

• (c) specifying any class of shares or interests that, and any conditions on which, DHBs may—

  • (i) hold in a body corporate or in a partnership, joint venture, or other association of persons; or

  • (ii) settle, or be or appoint a trustee of, a trust:

• (d) specifying the form of any document of the kind referred to in section 42 or section 67, and specifying matters to be stated in any such document in addition to those required by those sections or the Crown Entities Act 2004:

• (e) imposing procedural requirements in relation to any consultation required by or under this Act, not being requirements that are inconsistent with any provision of this Act:

• (f) specifying kinds of information for the purposes of clause 49 of Schedule 3:

• (g) in relation to any plans to be prepared under section 38(1)(a) or 38(1)(b),—

  • (i) specifying the form of the plan; and

  • (ii) imposing requirements relating to the content of the plan; and

  • (iii) imposing procedural requirements (such as a requirement for consultation) that must be complied with in the preparation of the plan:

• (h) [Repealed]

• (i) prescribing standard provisions that are to be regarded as being included in all Crown funding agreements between the Crown and DHBs:

• (j) providing for any other matters contemplated by this Act or necessary for its administration or necessary for giving it full effect.

(2) The Governor-General may, by Order in Council made on the recommendation of the Minister, make regulations prescribing rules by which disputes or differences between any 1 or more publicly-owned health and disability organisations or providers of services or other persons are to be mediated or arbitrated.

(3) The Governor-General may, by Order in Council, make regulations for all or any of the following purposes:

• (a) providing for the issue of entitlement cards (including cards that may record information of any description that is capable of being read or processed by a computer, but not including cards that are themselves capable of processing information) to various classes of persons or the continuation of use of such cards issued under the Health Entitlement Cards Regulations 1993:

• (b) prescribing the classes of persons eligible to be issued with the cards:

• (c) prescribing and regulating the use of the cards, including (but not limited to)—

  • (i) their use to obtain any payment or exemption from payment for health services or disability support services supplied to the holder of a card, or his or her dependent spouse or partner or child:

  • (ii) specifying time limits on the validity of the cards:

  • (iii) requiring holders to return the cards to the Ministry of Health:

  • (iv) any other conditions relating to their use:

• (d) providing for reviews or appeals, or both, of any decisions made under any regulations authorised by paragraphs (a) to (c):

• (e) prescribing offences relating to the improper use of the cards and the fines (not exceeding $10,000) that may be imposed in respect of any such offences.

(4) The Health Entitlement Card Regulations 1993 are deemed to have been made under subsection (3) and may be amended or revoked accordingly.

In this Part, unless the context otherwise requires,—

(1) The Health Funding Authority is dissolved.

(2) No person who, immediately before the commencement of this section, held office as a director of the Health Funding Authority is entitled to compensation for loss of the office.

(3) On the commencement of this section, the assets and liabilities of the Health Funding Authority vest in the Crown (acting, in the case of any shares vested, through the Minister and, in the case of any other assets or liabilities vested, through the Ministry of Health).

(1) Every hospital and health service is dissolved.

(2) No person who, immediately before the commencement of this section, held office as a director of a hospital and health service is entitled to compensation for loss of the office.

(3) Except as provided in subsection (4), on the commencement of this section, the assets and liabilities of each hospital and health service (other than New Zealand Blood Service Limited) vest in the DHB whose name is shown opposite the name of the hospital and health service in column 2 of Schedule 7.

(4) The assets and liabilities vested by subsection (3) do not include rights or obligations under any contract of service under which a person was, before the commencement of this section, employed as the chief executive of a hospital and health service.

(5) The Registrar of Companies must remove from the register of companies kept under section 360(1)(a) of the Companies Act 1993 the name of every hospital and health service.

On the commencement of this section, the assets and liabilities of New Zealand Blood Service Limited vest in NZBS.

(1) Every person who, on the date immediately before the commencement of this section, held office as a director of New Zealand Blood Service Limited is to be taken to have been appointed under section 56 as a member of the board of NZBS for the period that, as at the close of that date, represents the remainder of the person's term as a director of New Zealand Blood Service Limited.

(2) Within 28 days after the commencement of this section, every member continuing in office under subsection (1) must give the Minister the statement required to be completed by section 56(2), and that subsection applies to the member as if he or she were to be appointed as a member of the board of NZBS on the 29th day after that commencement.

(3) If on the 29th day after the commencement of this section a member affected by subsection (1) has failed to comply with subsection (2), the member ceases to be a member of the board of NZBS on that day.

(1) Pharmaceutical Management Agency Limited is dissolved.

(2) No person who, immediately before the commencement of this section, held office as a director of Pharmaceutical Management Agency Limited is entitled to compensation for loss of the office.

(3) On the commencement of this section, the assets and liabilities of the Pharmaceutical Management Agency Limited vest in Pharmac.

(4) The Registrar of Companies must remove from the register of companies kept under section 360(1)(a) of the Companies Act 1993 the name of Pharmaceutical Management Agency Limited.

(1) Every person who, immediately before the commencement of this section, held office as a director of Pharmaceutical Management Agency Limited is to be taken to have been appointed under section 52 as a member of the board of Pharmac for the period that, as at the close of that date, represents the remainder of the person's term as a director of Pharmaceutical Management Agency Limited.

(2) Within 28 days after the commencement of this section, every member continuing in office under subsection (1) must give the Minister the statement required to be completed by section 52(2), and that subsection applies to the member as if he or she were to be appointed as a member of the board of Pharmac on the 29th day after that commencement.

(3) If on the 29th day after the commencement of this section a member affected by subsection (1) has failed to comply with subsection (2), the member ceases to be a member of the board of Pharmac on that day.

(1) Section 6, sections 8 to 14, and Schedule 1 of the Health Sector (Transfers) Act 1993 apply to the vestings effected by sections 94 to 96 and section 98 as if—

• (a) each vesting had been effected under section 5 of that Act; and

• (b) each dissolved entity were a transferor within the meaning of that Act.

(2) For the purposes of the Government Superannuation Fund Act 1956, a person who, as a result of any of the vestings by sections 94 to 96 and section 98 becomes an employee of a transferee and who, immediately before becoming such an employee, was an officer or employee of a dissolved entity and a contributor to the Government Superannuation Fund under that Act is, so long as that person continues to be employed by a transferee,—

• (a) to be taken to be employed in the Government service; and

• (b) that Act applies to that person as if service with the transferee were Government service.

(3) Subject to the Government Superannuation Fund Act 1956, nothing in subsection (2) entitles any such person to become a contributor to the Government Superannuation Fund after that person has ceased to be a contributor.

(4) For the purposes of applying the Government Superannuation Fund Act 1956, in accordance with subsection (2), to a person who is in the service of a transferee and is a contributor to the Government Superannuation Fund, the term controlling authority, in relation to that person, means the chief executive of the transferee.

(1) Section 13 of the Health Sector (Transfers) Act 1993 applies to any person who, at any time in the period commencing on 1 April 2000 and ending with the commencement of this section, was an employee of a dissolved entity as if—

• (a) in subsection (1) of that section there were inserted, before the words “an employee of a transferor”, the words “on or after 1 April 2000”:

• (b) in subsection (2) of that section there were inserted, before the words “an employee of a transferor”, the words “on or after 1 August 2000”:

• (c) in subsection (2) of that section there were substituted for the expression “9 months”, the expression “3 months”:

• (d) in subsection (6) of that section there were substituted for the words “31st day of December 1994”, the words “commencement of section 101 of the New Zealand Public Health and Disability Act 2000”.

(2) For the purposes of subsection (1), every dissolved entity is to be taken to be a transferor as well as a transferee within the meaning of the Health Sector (Transfers) Act 1993.

(3) Before 31 December 2002, the Director-General may give notice to any employee of the Director-General that the employee may, through the operation of section 4 or section 5 of the Health Sector (Transfers) Act 1993, become an employee of a DHB or of a subsidiary of a DHB.

(4) From the date of a notice given to an employee under subsection (3), the Health Sector (Transfers) Act 1993 applies to the employee as if—

• (a) in section 13(2) there were substituted for the expression “9 months”, the expression “3 months”:

• (b) in section 13(6) there were substituted for the words “the 31st day of December 1994”, the expression “31 December 2002”:

• (c) in section 15(1) there were substituted for the words “the 31st day of March 1994”, the expression “31 December 2002”.

As from the commencement of this section, unless the context otherwise requires, every reference in any notice or document—

• (a) to the Health Funding Authority must be read as a reference to the Crown (acting, in the case of any shares formerly held by the Health Funding Authority, through the Minister and, in any other case, through the Ministry of Health):

• (b) to a hospital and health service (other than New Zealand Blood Service Limited) must be read as a reference to the DHB in whom the assets and liabilities of the hospital and health service are vested by section 95:

• (c) to New Zealand Blood Service Limited must be read as a reference to NZBS:

• (d) to the Pharmaceutical Management Agency Limited must be read as a reference to Pharmac.

Every person in whom the assets and liabilities of a dissolved entity are vested by any of sections 94 to 96 and 98 is deemed to be the dissolved entity for the purposes of any requirement or entitlement under—

• (a) the Goods and Services Tax Act 1985; or

• (b) any enactment or accounting practice relating to accounting records or financial statements.

In section 105, final report, in relation to a dissolved entity, means—

• (a) a report setting out the information specified in section 41I of the Public Finance Act 1989 in relation to the dissolved entity's operations for the period beginning on 1 July 2000 and ending with the close of the day immediately before the commencement of this section; and

• (b) the dissolved entity's financial statements for that period, which—

  • (i) set out the information specified in section 41 of the Public Finance Act 1989; and

  • (ii) are accompanied by an audit opinion prepared by the Audit Office in accordance with section 43 of that Act.

(1) As soon as reasonably practicable after the commencement of this section, the Minister must receive—

• (a) from the Director-General the final report of the Health Funding Authority:

• (b) from each DHB the final report of the hospital and health service whose assets and liabilities are vested in the DHB by section 95:

• (c) from NZBS the final report of New Zealand Blood Service Limited:

• (d) from Pharmac the final report of the Pharmaceutical Management Agency Limited.

(2) As soon as practicable after receiving each final report, the Minister must present the report to the House of Representatives.

(1) In the period commencing with the commencement of this section and ending with the first elections of members of boards of DHBs, the Minister may appoint up to 11 members to the board of each DHB (whether that DHB has been, or is to be, established) to hold the positions that are, after those elections, to be held by elected and appointed members.

(2) The provisions of this Act that apply to appointed members of DHBs apply to members appointed under subsection (1), except that—

• (a) the appointment of such a member (whether as member, chairperson, or deputy chairperson) must be made by written notice to the member, and need not be notified in the Gazette; and

• (b) such a member need not complete the statement under section 29(6) before his or her appointment, but must complete that statement before the 29th day after his or her appointment; and

• (c) if such members hold a meeting of a board of a DHB before 1 February 2001, clauses 16 to 24, 28 and 31 to 35 of Schedule 3 do not apply to that meeting.

(3) As soon as practicable after the commencement of this section, the Minister must make appointments under subsection (1) to enable each DHB to operate on and from 1 January 2001.

(4) For the purpose of enabling a DHB to operate on and from 1 January 2001, the members appointed under subsection (1) in respect of a DHB may, before that date, exercise or perform any duty, power, or function of the board of the DHB.

(5) A record of every meeting of the board of a DHB held in accordance with subsection (2)(c) and of every decision taken in respect of the board of a DHB under subsection (4) must be tabled at the first meeting of the board that is publicly notified under clause 16 of Schedule 3.

(6) Despite subsection (2), when the first elected members of a board of a DHB come into office, every member appointed under subsection (1) ceases to be a member of the board.

Amendment(s) incorporated in the Act(s).

Amendment(s) incorporated in the Act(s).

Amendment(s) incorporated in the Act(s).

(1) The following Acts are repealed:

• (a) Health and Disability Services Act 1993 (1993 No 22):

• (b) Maternal Mortality Research Act 1968 (1968 No 26).

(2) The instruments specified in Schedule 8 are revoked.

(1) The Acts specified in Schedule 9 are amended in the manner indicated in that schedule.

(2) The regulations specified in Schedule 10 are amended in the manner indicated in that schedule.

(1) The direction concerning the eligibility of persons for Crown-funded services given to the Health Funding Authority under section 25 of the Health and Disability Services Act 1993, and in force immediately before the commencement of this section, is deemed to have been given, under section 32, to every DHB.

(2) The Minister may at any time amend or revoke the direction referred to in subsection (1) by issuing a direction under section 32.

(3) Every notice given, under section 51 of the Health and Disability Services Act 1993, and in force immediately before the commencement of this section, continues in force as if the notice had been given by the Crown under section 88.

(4) The Crown (acting through the Ministry of Health) may at any time amend or revoke a notice referred to in subsection (3) by issuing a notice under section 88.

(5) Despite sections 28 and 63, during the period of 1 year ending after the commencement of this section, a publicly-owned health and disability organisation may—

• (a) hold any shares or interests in a body corporate or in a partnership, joint venture, or other association of persons if those shares or interests were vested in the organisation by this Act; and

• (b) be the trustee of a trust if the office as trustee was vested in the organisation by this Act.

(6) On the expiry of the period referred to subsection (5), no organisation may continue to hold such shares or interests or be such a trustee without the consent of the Minister, given in accordance with section 28 or section 63, as the case may require.

(1) Liabilities of up to a total of $1,200,000,000 may, during the 2000/01 year, be incurred in advance of appropriation in relation to Vote Health to provide the capital injections required to establish the District Health Boards.

(2) All liabilities incurred under this section must be charged in the manner to be specified in an Appropriation Act for the 2000/01 year and, until the coming into force of the Appropriation Act in which that manner is specified, may be incurred during the 2000/01 year as if they had been incurred in accordance with one of the separate appropriations specified in section 4(3) of the Public Finance Act 1989.

(1) The consultation undertaken, before the commencement of this section, by the Minister on proposals for a New Zealand health strategy is to be taken to be consultation for the purposes of section 8(3) for the first New Zealand health strategy determined after the commencement of this section.

(2) The consultation undertaken, before the commencement of this section, by the Minister of the Crown who is responsible for disability issues on proposals for a New Zealand disability strategy is to be taken to be consultation for the purposes of section 8(3) for the first New Zealand disability strategy determined after the commencement of this section.