(A) The governing body of any hospital public service district is authorized to transfer its assets and properties for the delivery of medical services upon assumption by the transferee of the responsibilities of the district for the delivery of medical services as set forth in the legislation creating the hospital public service district.

(B) The transfer is not completed until the question of the transfer has been submitted to and approved by a favorable referendum vote of a majority of the qualified electors of the district voting in the referendum. The referendum vote may be conducted either as a special referendum within the district for this specific purpose or at the same time as a general election.

(C) Provided, however, that the requirements of subsection (B) do not apply to a transfer by a hospital public service district that owns or controls less than one hundred forty-five licensed or otherwise authorized acute care hospital beds and is located entirely within a county with a population of less than forty thousand persons, and the:

(1) transfer is to a not-for-profit entity whose governing board is appointed by the Governor, upon the recommendation of the legislative delegation from the county where the hospital public service district is located, and which otherwise is in compliance with subsection (A); or

(2) transfer is to an entity created pursuant to the provisions of Chapter 31, Title 33, or the provisions of Chapter 35, Title 33, or the provisions of Articles 15 and 16, Chapter 7, Title 44, and whose governing board is appointed by the Governor, upon recommendation of the legislative delegation from the county where the hospital public service district is located; or

(3) transfer is to another governmental entity.

(D) Any hospital public service district which transfers its assets and properties as provided in this section may dissolve the hospital public service district upon the completion of the transfer and upon the assumption or other appropriate disposition by the transferee of all of the responsibilities and obligations of the hospital public service district.

(E) If the hospital public service district transfers its assets to an entity outside of its geographic boundaries, then any proceeds from the transfer must be used solely for the provision of health care services in a manner consistent with the obligations and responsibilities of the transferring hospital public service district.

(F) Notwithstanding any other provision of law, the provisions of this section do not apply to any transaction that includes the hospital public service district's entry into a lease of any or all of its real property associated with the delivery of hospital services regardless of:

(1) the length of the term of the real property lease; or

(2) whether or not the transaction also includes the sale or lease of other assets of the district.

HISTORY: 1987 Act No. 93 Section 2, eff May 13, 1987; 1999 Act No. 94, Section 1, eff June 11, 1999; 2015 Act No. 14 (S.673), Sections 1, 2, eff May 7, 2015.

Editor's Note

1987 Act No. 93, Section 1, provides as follows:

"The General Assembly finds that under certain circumstances public service districts created prior to March 7, 1973, which were created to provide clinical medical services could better accomplish their initial intended purpose and provide for a more complete utilization of services, assets, and properties of the district if they were authorized to transfer their assets and properties to another political subdivision or an appropriate health care provider located within the district. It is the purpose of this act to authorize the transfer of these assets and properties upon favorable referendum vote of a majority of the qualified electors of the district voting in the referendum. It is also the purpose of this act to authorize the public service district to dissolve upon completion of the transfer of its assets and properties."

Effect of Amendment

The 1999 amendment added subsection identifiers, inserted "hospital" preceding "public service district" throughout the section, deleted "clinical" preceding "medical services" in two locations in the subsection (A), deleted a provision in subsection (A) regarding eligible transferees, moved a referendum provision to subsection (B), and added subsections (C) and (E).

2015 Act No. 14, Section 1, added (F).

2015 Act No. 14, Section 2, in (C), substituted "less than one hundred forty-five" for "less than one hundred thirty", and made nonsubstantive changes in (C)(2).