39. (1) The Regulator, in consequence of the findings of a standards assessment that an AHB is failing to comply with an approved standard, as set out in an assessment report under section 38, may, by notice given to the AHB, require it to submit to the Regulator a plan (in this Act referred to as a “compliance plan”), in the form and manner and within the period specified in the notice, setting out the measures taken or proposed to be taken by the AHB to rectify the failure concerned.

(2) A notice given under subsection (1) shall state that failure to submit a compliance plan in accordance with the notice may result in the AHB being given a notice of non-compliance with the approved standard (in this Act referred to as a “notice of non-compliance”).

(3) The Regulator may extend the period specified in a notice given under subsection (1), on application to it in that behalf, in writing, by the AHB concerned, where the Regulator is satisfied that there is good and sufficient reason for the extension.

(4) Where an AHB fails to submit a compliance plan within the period specified in a notice under subsection (1) or any extension of that period under subsection (3), the Regulator may give a notice of non-compliance to the AHB.

(5) Where an AHB submits a compliance plan within the period specified in a notice under subsection (1) or any extension of that period under subsection (3), the Regulator may, give a notice to the AHB—

(a) approving the compliance plan, with or without modifications or subject to any conditions it considers appropriate, as the case may be, or

(b) stating that—

(i) it proposes to reject the compliance plan, setting out its reasons, and

(ii) the AHB may make representations to the Regulator within the period specified in the notice.

(6) The Regulator having considered the representations, if any, made to it in accordance with a notice under subsection (5), may give a notice to the AHB—

(a) approving the compliance plan, with or without modifications or subject to any conditions it considers appropriate, as the case may be, or

(b) stating that it proposes to give a notice of non-compliance to the AHB and informing the AHB of the matters referred to in subsection (8).

(7) Where a compliance plan is approved under subsection (5)(a) or (6)(a), as the case may be—

(a) it shall be implemented in accordance with its terms by the AHB, and

(b) the Regulator shall, as soon as may be after the compliance plan has been so approved make an entry on the register that the plan has been so approved, including the details (in summary form) of the measures taken or proposed to be taken by the AHB pursuant to the plan.

(8) Where an AHB is given a notice under subsection (6)(b), the AHB may appeal the notice to the Appeals Panel under Part 7 not later than 21 days from the date of the notice.