ID H0603

Hospital districts may lease or sell real property, facilities, and personal property/equipment through their board of trustees, except those already covered by section 39-1339, but such transactions require approval by a majority of qualified district electors at an election.

Hospital districts can alternatively convey or lease property to a nonprofit corporation without voter approval if the nonprofit's initial governing body consists of the incumbent hospital district trustees.

Nonprofit corporations receiving hospital district property must have articles of incorporation providing for broadly representative public membership or a single nonprofit corporate member, with governing body members limited to two consecutive three-year terms.

Receiving nonprofits must provide care for indigent patients, assume all assets and liabilities or agree to an alternative price, and transfer patients, staff, employees, and maintain existing trusts and records.

If a conveyed hospital ceases nonprofit operation, ownership reverts to the hospital district unless proceeds from a sale are used to build or enlarge another nonprofit hospital; leased hospitals have their leases terminated under the same condition.

The act becomes effective July 1, 2022, and is declared an emergency measure.