Commonwealth Numbered Acts

HEALTH INSURANCE COMMISSION (REFORM AND SEPARATION OF FUNCTIONS) ACT 1997 No. 159 of 1997 - SECT 20

(1) The object of this section is to enable a Commission contract to be split
into 2 separate contracts so that one of those contracts can be transferred to
the nominated company under this Division.

(2) For the purposes of this section, a Commission contract is a contract
between the Commission and another person (the supplier) for the supply to the
Commission of goods or services.

(3) The Minister may, by writing, declare that:

   (a)  a specified Commission contract terminates at a specified time without
        giving the supplier any entitlement to compensation or damages (other
        than an entitlement (if any) under section 46); and

   (b)  the Commission is taken to have entered into a contract (the Medibank
        Private contract) with the supplier at that time for the supply of
        some of those goods or services in the terms set out in the
        declaration; and

   (c)  the Commission is taken to have entered into a contract (the residual
        contract) with the supplier at that time for the supply of some of
        those goods or services in the terms set out in the declaration.

(4) A declaration under subsection (3) has effect accordingly.

(5) A copy of a declaration under subsection (3) is to be published in the
Gazette within 14 days after the making of the declaration.

(6) A copy of a declaration under subsection (3) is to be given to the
supplier as soon as practicable after the making of the declaration.

(7) If a declaration is made under subsection (3) in relation to a Commission
contract:

   (a)  the sum of:

        (i)    the consideration that is to be paid to the supplier under the
               Medibank Private contract; and

        (ii)   the consideration that is to be paid to the supplier under the
               residual contract; must equal the consideration that would have
               been paid to the supplier under the Commission contract if the
               declaration had not been made; and

   (b)  the aggregate of:

        (i)    the obligations imposed on the supplier under the Medibank
               Private contract; and

        (ii)   the obligations imposed on the supplier under the residual
               contract; must not be more onerous than the obligations that
               would have been imposed on the supplier under the Commission
               contract if the declaration had not been made.

(8) In this section: goods has the same meaning as in the
Trade Practices Act 1974. person includes a partnership. services has the same
meaning as in the Trade Practices Act 1974. supply has the same meaning as in
the Trade Practices Act 1974.

(9) To avoid doubt, a reference in this section to services includes a
reference to rights arising under a computer software licence.

(10) Subsection (9) is to be disregarded in interpreting a law of the
Commonwealth (other than this section).