Chapter 3 Local health districts
Part 1 Constitution of local health districts
17 Constitution of local health districts
(1) There are constituted by this section such local health districts as are specified from time to time in column 1 of Schedule 1.(2) A local health district is a body corporate with the corporate name specified in column 1 of Schedule 1.
18 Areas in respect of which local health districts constituted
(cf AHS Act ss 4 and 7)
(1) The area in respect of which a local health district is constituted is:(a) if the area comprises a local government area (or part of a local government area) or a local government area constituted as a city (or a part of such a city)—the local government area (or part of a local government area) or city (or part of a city) described in column 2 of Schedule 1 in relation to the local health district, or(b) if the area comprises an area other than a local government area (or part of a local government area)—the area described in any manner (including by reference to a description contained in another document) in column 3 of Schedule 1 in relation to the local health district.(2) A reference in column 2 of Schedule 1 to a part of a local government area is a reference to such part of the local government area as is described by the regulations for the purposes of that reference.(3) A reference in column 3 of Schedule 1 to the unincorporated area is a reference to such part of the land within the Western Division of the State as is not within a local government area.
19 Amendment of Schedule 1 (Names and areas of local health districts)
(cf AHS Act ss 6 and 8)
(1) The Governor may, by order published on the NSW legislation website:(a) amend column 1 of Schedule 1 by inserting, altering or omitting the name of a local health district, or(b) amend column 2 or 3 (or both) of Schedule 1 by inserting, altering or omitting a description of the area in respect of which a local health district is (or was) constituted, or(c) omit Schedule 1 and insert instead a Schedule containing the names of local health districts and descriptions of the areas in respect of which the local health districts are constituted.(2) If an area in respect of which a local health district is constituted:(a) is described by reference to a local government area that is constituted as a city, and(b) the name of the city (but not the boundaries) is changed,a reference in column 2 of Schedule 1 to the old name of the city is taken to include a reference to the new name of the city.(3) The boundaries of the area in respect of which a local health district that is described by reference to any local government area or part of any local government area are unaffected by a change in the boundaries of the local government area and, for that purpose, the boundaries of the local government area are taken to remain the same as they were when reference to the local government area was included in column 2 of Schedule 1.
20 Dissolution, amalgamation or change of name of local health districts
(cf AHS Act s 9)
(1) The Governor may, by order published on the NSW legislation website:(a) dissolve a local health district, or(b) amalgamate 2 or more local health districts, or(c) change the name of a local health district,and may, in the order, amend Schedule 1 accordingly.(2) An order under this section must specify the date (being a date that is on or after the date it is published on the NSW legislation website) on which it takes effect. However, if no date is specified in the order, the order is taken to have specified the date on which it is published on the NSW legislation website as the date on which it takes effect.(3) An order is not to be made under this section unless the Minister is of the opinion that the order is in the public interest and has recommended to the Governor that the order be made.(4) A dissolution, amalgamation or change of name under this section may be effected without holding an inquiry.Note. Part 3 of Chapter 10 provides for the transfer by order of the Governor of public hospitals, health institutions, health services, health support services and property between local health districts and statutory health corporations.Section 116 provides for the transfer of staff between public health organisations.
21 Consequential and transitional provisions on the making of orders
(cf AHS Act s 10)
(1) Schedule 4 has effect with respect to orders made under this Part.(2) An order under this Part may contain provisions, not inconsistent with the provisions of or made under Schedule 4, of a savings and transitional nature consequent on the making of the order.
22 Provisions relating to the corporate nature of local health districts
(cf AHS Act s 11)
(1) A local health district:(a) has perpetual succession, and(b) is to have an official seal, and(c) may take proceedings, and be proceeded against, in its corporate name, and(d) may do and suffer all other things that a body corporate may, by law, do and suffer and that are necessary for or incidental to the purposes for which the local health district is constituted, and(e) does not represent the Crown.Note. Section 150 (1) of the Evidence Act 1995 provides for judicial notice to be taken in relation to a seal of any body established under an Act.(2) However, a local health district cannot employ any staff.Note. Staff may be employed under Part 1 of Chapter 9 in the NSW Health Service to enable a local health district to exercise its functions.
Part 2 Control and management of local health districts
Division 1 The chief executive
23 Appointment of chief executive
(1) A chief executive is to be appointed for each local health district.(2) The employment of the chief executive is subject to Part 3 of Chapter 9.Note. Under Part 3 of Chapter 9, the chief executive is a member of the Health Executive Service.(3) (Repealed)
24 Chief executive to manage and control affairs of local health district
(1) The affairs of a local health district are to be managed and controlled by the chief executive of the district.(2) Any act, matter or thing done in the name of, or on behalf of, a local health district by its chief executive is taken to have been done by the district.
25 Functions of chief executive generally
The chief executive of a local health district:(a) has, and may exercise, such functions as are conferred or imposed on the chief executive by or under this or any other Act, and(b) is, in the exercise of his or her functions, accountable to the local health district board constituted for the district.
Division 2 Local health district boards
26 Constitution of local health district boards
(1) A local health district board is to be established for each local health district.(2) A local health district board is to consist of 6 to 13 persons appointed by the Minister, selected in accordance with subsections (3) and (4).(3) The Minister is to select the membership of a local health district board so that the membership of the board has an appropriate mix of skills and expertise required to oversee and provide guidance to the district, including members who:(a) have expertise and experience in health management, business management and financial management, and(b) have expertise and experience in the provision of clinical and other health services, and(c) where appropriate, are representatives of universities, clinical schools or research centres, and(d) have knowledge and understanding of the community served by the district, and(e) have other backgrounds, skills, expertise, knowledge or experience appropriate for the district.(4) A local health district board is to have at least one member (who may also be one of the kinds of members referred to in subsection (3) (a)–(e)) who has expertise, knowledge or experience in relation to Aboriginal health.(5) A member of a local health district board holds office for such period (not exceeding 4 years) as may be specified in the member’s instrument of appointment.(6) A member whose term of office expires is eligible (if otherwise qualified) for re-appointment, but may not be appointed so as to hold office for more than 8 years in total (whether or not the appointments are consecutive).(7) One of the members of a local health district board is, by the relevant instrument of appointment or by a further instrument signed by the Minister, to be appointed as the chairperson of the board.(8) A member of a local health district board is entitled to be paid such remuneration (including travelling and subsistence allowances) as the Minister may from time to time determine in respect of the member.(9) Subject to this section, the constitution and procedure of a local health district board are to be as prescribed by the regulations.
28 Functions of local health district boards
The local health district board for a local health district has the following functions:(a) to ensure effective clinical and corporate governance frameworks are established to support the maintenance and improvement of standards of patient care and services by the local health district and to approve those frameworks,(b) to approve systems:(i) to support the efficient and economic operation of the local health district, and(ii) to ensure the district manages its budget to ensure performance targets are met, and(iii) to ensure that district resources are applied equitably to meet the needs of the community served by the district,(c) to ensure strategic plans to guide the delivery of services are developed for the local health district and to approve those plans,(d) to provide strategic oversight of and monitor the local health district’s financial and operational performance in accordance with the State-wide performance framework against the performance measures in the performance agreement for the district,(e) to make recommendations for the appointment of the chief executive of the local health district and, where it considers it appropriate to do so, to make recommendations concerning the removal of the chief executive,(f) to confer with the chief executive of the local health district in connection with the operational performance targets and performance measures to be negotiated in the service agreement for the district under the National Health Reform Agreement,(g) to approve the service agreement for the local health district under the National Health Reform Agreement,(h) to seek the views of providers and consumers of health services, and of other members of the community served by the local health district, as to the district’s policies, plans and initiatives for the provision of health services, and to confer with the chief executive of the district on how to support, encourage and facilitate community and clinician involvement in the planning of district services,(i) to advise providers and consumers of health services, and other members of the community served by the local health district, as to the district’s policies, plans and initiatives for the provision of health services,(j) to endorse the local health district’s annual report,(k) to liaise with the boards of other local health districts and specialty network governed health corporations in relation to both local and State-wide initiatives for the provision of health services,(l) such other functions as are conferred or imposed on it by the regulations.
29 Removal of members of local health district board and appointment of administrator
(1) The Minister may at any time, for any reason or no reason and without notice, by order published in the Gazette:(a) remove any member or all members of a local health district board from office, or(b) remove all members of a local health district board from office and appoint, as administrator of the local health district concerned, the chief executive of the district or any other person specified in the order for such period as may be specified in the order.(2) If the Minister appoints an administrator of a local health district under this section, the Minister is (as soon as is reasonably practicable after the appointment is made) to make a statement in Parliament concerning the basis for the appointment of the administrator.(3) An administrator of a local health district has and may exercise, subject to any conditions that may be specified in the order by which the administrator is appointed, all the functions of the chief executive and board for that district.(4) An administrator of a local health district is entitled to be paid from the funds of that district such remuneration (including travelling and subsistence allowances) as the Minister may from time to time determine in respect of the administrator.(5) The regulations may make provision with respect to administrators of local health districts.
Division 3 Other committees and councils
29B Other committees and councils
The chief executive may establish such committees and councils as he or she considers appropriate to assist the local health district in the exercise of its functions.
Part 3 Functions of local health districts
30 Combined management or assistance in management of public hospitals, health institutions, health services or health support services
(cf AHS Act s 22)
(1) Any two or more local health districts, or any one or more local health districts and any one or more non-district health organisations, may, by agreement, jointly control and manage any public hospital, health institution, health service or health support service.(2) A local health district may, by agreement, manage any public hospital, health institution, health service or health support service under the control of another local health district or a non-district health organisation, or assist in that management, for and on behalf of that other local health district or non-district health organisation.(3) A local health district must not enter into an agreement under this section without the approval of the Minister.(4) A public hospital, health institution, health service or health support service is not, for the purposes of this or any other Act, to be regarded as being under the control of a local health district because the local health district manages, or assists in the management of, the hospital, health institution, health service or health support service for and on behalf of another local health district or of a non-district health organisation.(5) In this section:non-district health organisation means:
(a) a statutory health corporation, or(b) an affiliated health organisation.
31 Opening and closing of hospitals, health institutions, health services or health support services
(cf AHS Act s 23)
(1) A local health district may, subject to any direction under this Act, at any time establish such hospitals, health institutions, health services or health support services as it thinks necessary for the exercise of its functions.(2) A local health district may, subject to any direction under this Act, at any time:(a) close any public hospital or health institution, or cease to provide any health service or health support service, under its control, or(b) restrict the range of health care or treatment provided by any public hospital, health institution, health service or health support service under its control.(3) A local health district must, before implementing any decision to exercise its functions under subsection (1) or (2):(a) notify the Director-General of the decision, and(b) ensure that the decision is appropriate having regard to the functions of the local health district.(4) (Repealed)
32 Determination of role, functions and activities of local health districts
(1) The Director-General may, from time to time, determine the role, functions and activities of any public hospital, health institution, health service or health support service under the control of a local health district and, for that purpose, give any necessary directions to the local health district.(2) The Minister may direct a local health district to do any of the following if the Minister is satisfied that it is in the public interest to do so:(a) establish any hospital, health institution, health service or health support service,(b) close any public hospital or health institution, or cease to provide any health service or health support service, under its control,(c) restrict the range of health care or treatment provided by any public hospital, health institution or health service under its control.
34 Powers in relation to property
(cf AHS Act s 27)
(1) A local health district may do all or any of the following:(a) acquire land (including an interest in land), for the purpose of the exercise of its functions, by agreement or by compulsory process in accordance with the Land Acquisition (Just Terms Compensation) Act 1991 and acquire any other property (whether or not the land or other property is required for the purposes of any public hospital, health institution, health service or health support service under the control of the local health district),(b) sell, lease, mortgage or otherwise dispose of land or any other property,(c) dedicate land as a public road under the Roads Act 1993.(2) A local health district must not, without the approval of the Minister, do any of the following:(a) acquire land by any means,(b) dispose of land by sale, lease, mortgage or otherwise,(c) dedicate land as a public road.(3) A local health district may request the Minister to give approval to (and the Minister may approve) a disposition or dedication of land or a use of land, being a disposition, dedication or use:(a) that is contrary to a provision of, or a trust arising under, the Crown grant of that land, or(b) that, if this section had not been enacted, may make the land liable to be forfeited to the Crown.(4) If the Minister has given an approval under this section to a disposition or dedication of land, or to a use of land, neither the disposition or dedication of the land (or its subsequent use) nor the use of the land:(a) is to be regarded as a breach of any provision of, or any trust arising under, the Crown grant of that land, or(b) is to make the land liable to be forfeited to the Crown.
35 Application of Public Works Act 1912
(cf AHS Act s 28)
(1) For the purposes of the Public Works Act 1912, any acquisition of land under section 34 (1) (a) is taken to be for an authorised work and the local health district concerned is, in relation to that authorised work, taken to be the Constructing Authority.(2) Sections 34, 35, 36 and 37 of the Public Works Act 1912 do not apply in respect of works constructed under this Act.
36 Power to accept property by gifts, devises and bequests
(cf AHS Act s 29)
(1) A local health district may acquire any property by gift, devise or bequest and may agree to and carry out the conditions of any such gift, devise or bequest, but only if the carrying out of any such conditions is not inconsistent with the purposes and functions of the district.(2) The rule of law against remoteness of vesting does not apply to any such condition to which a local health district has agreed.(3) A local health district may act as trustee of money or other property vested in the local health district on trust.
37 Contracts of local health district
(cf AHS Act s 30)
(1) A local health district may make and enter into contracts or agreements with any person for the performance of services, or for the supply of goods, plant, machinery or material, by that person with respect to the exercise by the local health district of its functions conferred or imposed by or under this or any other Act.(2) A local health district may also, with the approval of the Director-General, make and enter into contracts or agreements with any person for the provision of any service by the local health district to that person. Any such contract or agreement may extend to the provision of the service outside the area of the local health district.(3) Any contract or agreement under this section is taken, for the purposes of the Constitution Act 1902, to be a contract or agreement for or on account of the Public Service of New South Wales.
(cf AHS Act s 31)
(1) A local health district may invest money held by it:(a) in such manner as may be authorised by the Public Authorities (Financial Arrangements) Act 1987, or(b) if that Act does not confer power to invest money so held, in any manner authorised for the time being for the investment of trust funds and in any other manner approved by the Minister with the concurrence of the Treasurer.(2) A local health district may at any time dispose of any of its investments and apply the proceeds for the purpose of exercising its functions.(3) This section is, in relation to the investment of any funds, subject to the terms of any trust applying to those funds.
39 Local health district may make by-laws
(cf AHS Act s 32)
(1) Power to make by-laws
A local health district may, with the approval of the Director-General, make by-laws, not inconsistent with this Act or the regulations, for or with respect to the following:(a) the management of any public hospital, health institution, health service or health support service under its control,(b) the provision of hospital services and other health services to patients of any public hospital or health institution under its control and to other persons,(c) the appointment, control and governance of visiting practitioners in connection with public hospitals, health institutions and health services under its control, including the conditions subject to which visiting practitioners may perform work at or in relation to any such hospital, institution or service,(d) regulating or prohibiting smoking at any public hospital, health institution or health service under its control, including by designating an area as a smoke-free area for the purposes of section 6A (Smoke-free areas—outdoor public places) of the Smoke-free Environment Act 2000,(e) the custody and use of the seal of the local health district,(f) the keeping of records concerning its acts and decisions,(g) the appointment and functions of its councils and committees.(h) (Repealed)(2) Publication of model by-laws
The Director-General may publish an order in the Gazette setting out the terms of model by-laws.(3) Preconditions for making of by-laws
A by-law may not be made by a local health district for or with respect to any matter referred to in subsection (1) (c) unless:(a) it is in substance the same as a model by-law under an order for the time being in force under subsection (2) and the Director-General has received advice from the Medical Services Committee in relation to the substance of the model by-law, or(b) the Director-General has received advice from the Medical Services Committee in relation to the substance of the by-law proposed to be made by the local health district.(4) Exception to preconditions
Subsection (3) does not apply to a by-law if the Medical Services Committee does not furnish advice to the Director-General in relation to the relevant model by-law or the by-law:(a) within 30 days after a notice from the Director-General requesting such advice has been served on the Committee, or(b) within such further period as the Director-General may specify in the notice or in another notice served on the Committee.(5) What by-laws may provide for
A provision of a by-law may do any one or any combination of the following:(a) apply generally or be limited in its application by reference to specified exceptions or factors,(b) apply differently according to different factors of a specified kind,(c) authorise any matter or thing to be from time to time determined, applied or regulated by any specified person or body.(6) Judicial notice
Judicial notice is to be taken of a by-law authenticated by the seal of the local health district concerned or in accordance with section 135. It is to be presumed, in the absence of evidence to the contrary, that all conditions and preliminary steps precedent to the making of the by-law have been complied with and performed.
40 Delegations by local health district
(cf AHS Act s 34)
(1) A local health district may delegate any of its functions (other than a function set out in subsection (1A)) to:(a) any member of the NSW Health Service, or(b) a visiting practitioner, council or committee appointed by the local health district, or(c) a body appointed by the Minister or Director-General under this or any other Act, or(d) a person or body of a class prescribed by the regulations.Note. Section 49 of the Interpretation Act 1987 contains general provisions relating to the delegation of functions.(1A) A local health district cannot delegate:(a) its power of delegation under this section, or(b) its functions under section 31 (2), or(c) the power to make by-laws.(2) The Director-General may give any direction to a local health district concerning delegations under this section that the Director-General thinks fit.(3) Nothing in this section authorises a local health district to delegate the whole of its functions to another person.(4) (Repealed)