50-4-715. Criteria for attorney general approval of conversion transaction. (1) The attorney general may not approve a conversion transaction except upon a finding that the conversion transaction is in the public interest. If the attorney general or a court pursuant to 50-4-704 determines that the transaction does not involve public assets, the attorney general may not disapprove the conversion transaction under the provisions of this part.

(2) In determining whether a conversion transaction is in the public interest, the attorney general shall require that:

(a) the fair market value of public assets is preserved and protected;

(b) the fair market value of public assets is expended or invested with reasonable and prudent consideration of the potential risk of financial loss associated with the conversion transaction;

(c) the fair market value of the public assets of a nonprofit health entity will be distributed as provided in 50-4-720;

(d) no part of the public assets of the transferor inure directly or indirectly to an officer, director, or trustee of the transferor or to the transferee or an officer, director, trustee, shareholder, or employee of the transferee or to any other person that is not a foundation or nonprofit organization approved to receive the assets by the attorney general; and

(e) an officer, director, or trustee of the nonprofit health entity does not receive any immediate or future remuneration as a result of a proposed conversion transaction except for the reasonable value of services rendered pursuant to a valid contract between the officer, director, or trustee and the nonprofit health entity.

(3) For purposes of the attorney general's review under 35-2-609, 35-2-617, and this section, there is a rebuttable presumption that the assets of a nonprofit health entity are public assets.

History: En. Sec. 13, Ch. 214, L. 2005.