42. (1) Where the Regulator is of the opinion that a compliance plan has not been or is not being implemented in accordance with its terms by an AHB, the Regulator may give a notice to the AHB—

(a) stating the date on which the notice is given,

(b) informing the AHB of its opinion and stating the reasons for its opinion,

(c) requiring the AHB, within a reasonable period specified in the notice, to confirm implementation of the compliance plan in accordance with its terms, and

(d) informing the AHB that failure to confirm implementation of the compliance plan within the period specified in the notice may result in the AHB being given a notice of non-implementation of the compliance plan (in this Act referred to as a “notice of non-implementation”).

(2) Where an AHB fails to comply with a requirement of the Regulator in a notice given to the AHB under subsection (1), the Regulator shall, by notice given to the AHB (in this section referred to as an “advance notice”) inform the AHB that it is proposing to give a notice of non-implementation to the AHB.

(3) An advance notice shall—

(a) state the date on which the notice is given,

(b) inform the AHB of the failure to comply with a requirement in a notice given to the AHB under subsection (1),

(c) specify a reasonable period within which the AHB shall comply with the requirement,

(d) inform the AHB that failure to comply with the requirement within the period specified in the notice may, subject to subsection (4), result in the AHB being given a notice of non-implementation, and

(e) inform the AHB that it may make representations to the Regulator in accordance with subsection (4) within the period specified in the notice.

(4) Where an AHB is given an advance notice, the AHB may, within the period specified in the advance notice, make representations, in writing, to the Regulator in respect of the proposed notice of non-implementation.

(5) The Regulator shall have regard to any representations made to it in accordance with subsection (4) in determining whether to proceed to give the notice of non-implementation.

(6) The Regulator shall, subject to subsection (5), give a notice of non-implementation to an AHB who fails to comply with a requirement in a notice given under subsection (1) within the period specified in the advance notice and the notice of non-implementation shall inform the AHB concerned of the matters referred to in subsections (7) and (8).

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

(8) A notice of non-implementation shall come into effect—

(a) where no appeal is brought under Part 7, on the expiration of the period specified in subsection (7) for bringing an appeal under that Part, or

(b) in the case where an appeal is brought under Part 7, on the date on which the notice is confirmed on appeal or the appeal is withdrawn, abandoned or otherwise not proceeded with, as the case may be.