MO HB777

Permits cities with hospitals meeting specific criteria (organized under Chapter 96, no city appropriated funds for 20 years, licensed for 250+ beds) to convert to public benefit corporations governed by Missouri's nonprofit corporation law effective January 1, 2013.

Allows conversion through either a majority vote of the board of trustees or a voter referendum initiated by petition signed by 5% of registered city voters, with a five-year waiting period before another petition can be filed if voters reject the proposal.

Prohibits the converted hospital from selling, leasing, or transferring substantially all assets to or merging with for-profit entities for 15 years after conversion; after 15 years, such transactions require voter approval.

Requires board notification to the attorney general and residents before conversion, satisfaction of any outstanding hospital revenue bonds, and preservation of donated assets for healthcare services in the city and previously served geographic region.

Establishes minimum 15-member board of trustees with majority consisting of county residents, at least half of whom must be city residents, with all trustee appointment and compensation powers vested in the board.