SB 2858 — Sale of community hospital by owner; revise procedure for referendum by the electors prior to any bid or agreement.

SB2858 (As Introduced)Passed the Senate) - 2019 Regular Session MISSISSIPPI LEGISLATURE Regular Session To:

Senator(s) McMahan, Jordan Senate Bill 2858 (As Passed the Senate) AN ACT TO AMEND SECTION 41-13-15, MISSISSIPPI CODE OF 1972, TO REQUIREPROVIDE THAT WHEN AN OWNER OF A REFERENDUMCOMMUNITY BYHOSPITAL WISHES TO SELL THE ELECTORSHOSPITAL OFOR LEASE THE COUNTYHOSPITAL PRIORWITH AN OPTION TO SELL IT, A PETITION REQUESTING AN ELECTION ON THE BIDQUESTION PROCESSOF ANDWHETHER EXECUTIONTHE OWNER SHOULD PROCEED WITH THE PROCESS OF ANYSEEKING AGREEMENTPROPOSALS FOR THE SALE OFOR ALEASE COMMUNITYOF THE HOSPITAL BYMAY BE FILED WITH THE CLERK OF THE OWNER;

TO PROVIDE THAT IF LESS THAN A MAJORITY OF THE VOTERS IN THE ELECTION VOTE IN FAVOR OF THE QUESTION, THEN THE OWNER IS NOT AUTHORIZED TO SELL OR LEASE THE HOSPITAL;

TO PROVIDE THAT IF A MAJORITY OF THE VOTERS IN THE ELECTION VOTE IN FAVOR OF THE QUESTION, OR IF NO SUCH PETITION REQUESTING AN ELECTION IS TIMELY FILED WITH THE CLERK, THEN THE OWNER MAY SEEK PROPOSALS FOR THE SALE OR LEASE OF THE HOSPITAL AND MAY SELL OR LEASE THE HOSPITAL TO THE RESPONDENT SUBMITTING THE HIGHEST AND BEST PROPOSAL AFTER PUBLISHING NOTICE;

     41-13-15.  (1)  Any county and/or any political or judicial subdivision of a county and/or any municipality of the State of Mississippi, acting individually or jointly, may acquire and hold real estate for a community hospital either recognized and/or licensed as such by either the State of Mississippi or the United States government,Government, and may, after complying with applicable health planning and licensure statutes, construct a community hospital thereon and/or appropriate funds according to the provisions of this chapter for the construction, remodeling, maintaining, equipping, furnishing and expansion of such facilities by the board of trustees upon such real estate.

     (3)  The owners may likewise contract with each other, or on behalf of any subordinate political or judicial subdivision, or with the board of trustees of a community hospital, and/or any agency of the State of Mississippi or the United States government,Government, for necessary purposes related to the establishment, operation or maintenance of community hospitals and related programs wherever located, and may either accept from, sell or contribute to the other entities, monies, personal property or existing health facilities.  The owners or the board of trustees may also receive monies, property or any other valuables of any kind through gifts, donations, devises or other recognized means from any source for the purpose of hospital use.

          (d) (d) An An analysis of the hospital's options, including service mix and pricing strategies.  If the study concludes that a sale or lease should occur, the study shall include an analysis of which option would be best for the community and how much revenues should be derived from the lease or sale.

     (9)  After the review and analysis under subsection (8) of this section, an owner may choose to sell or lease the community hospital.  If an owner chooses to sell such hospital or lease the hospital with an option to sell it, the owner shall follow the procedure specified in subsection (10) of this section.  If an owner chooses to lease the hospital without an option to sell it, it shall first spread upon its minutes why such a lease is in the best interests of the persons living in the area served by the facility to be leased, and it shall make public any and all findings and recommendations made in the review required under proposals for the lease, which shall state clearly the minimum required terms of all respondents and the evaluation process that will be used when the owner reviews the proposals.  The owner (7 shall lease to the respondent submitting the highest and best proposal.  In no case may the owner deviate from the process provided for in the request for proposals.

     (10)  If an owner wishes to sell such community hospital or lease the hospital with an option to sell it, the owner first shall conduct a public hearing on the issue of the proposed sale or lease with an option to sell the hospital,hospital.  and following the public hearing shall call for a referendum on the proposition as hereinafter provided.  Notice of the date, time, location and purpose of the public hearing shall be published once a week for at least three (3) consecutive weeks in at least one (1) newspaper published in the county or city, as the case may be, or if none be so published, in a newspaper having a general circulation therein.  The first publication of the notice shall be made not less than twenty-one (21) days before the date of the public hearing and the last publication shall be made not more than seven (7) days before that date.  If,If there is filed with the clerk of the owner not more than sixty (60) days after the publicdate hearing,of the public hearing, * * *the owner chooses to sell or lease with an option to sell the hospital, a petition signed by twenty percent (20%) or fifteen hundred (1500), whichever is less, of the qualified voters of the owner, requesting that an election be called and held on the question of whether the owner should proceed with the process of seeking proposals for the sale or lease with an option to sell the hospital, then it shall be the duty of the owner to call and provide for the holding of an election as petitioned for.  Notice of the election shall be given by publication in the same manner as provided for the publication of the notice of the public hearing.  The election shall be conducted and the return thereof made, canvassed and declared in the same manner as provided by law in the case of general elections in the owner.  If less than a majority of the qualified voters of the owner who vote on the proposition at such election vote in favor of the owner proceeding with the process of seeking proposals for the sale or lease with an option to sell the hospital, then the owner is not authorized to sell or lease the hospital.  If a majority of the qualified voters of the owner who vote on the proposition at such election vote in favor of the owner proceeding with the process of seeking proposals for the sale or lease with an option to sell the hospital, then the owner may seek proposals for the sale or lease of the hospital.  If no such petition is timely filed with the clerk of the owner, then the owner may proceed with the process of seeking proposals for the sale or lease with an option to sell the hospital.  The owner shall adopt a resolution describing its intention to sell or lease with an option to sell the hospital, which shall include the owner's reasons why such a sale or lease is in the best interests of the persons living in the area served by the facility to be sold or leased.  The owner then shall publish a copy of the resolution;

the requirements for proposals for the sale or lease with an option to sell the hospital, which shall state clearly the minimum required terms of all respondents and the evaluation process that will be used when the owner reviews the proposals * * *;,proposals; and the date proposed by the owner for the sale or lease with an option to sell the hospital. * * *  Such publication shall be made once a week for at least three (3) consecutive weeks in at least one (1) newspaper published in the county or city, as the case may be, or if none be so published, in a newspaper having a general circulation therein.  The first publication of the notice shall be made not less than twenty‑one (21) days before the date proposed for the sale or lease with an option to sell the hospital and the last publication shall be made not more than seven (7) days before that date.  If, on or before the date proposed for the sale or lease of the hospital, there is filed with the clerk of the owner a petition signed by twenty percent (20%) or fifteen hundred (1500), whichever is less, of the qualified voters of the owner, requesting that an election be called and held  Any such resolution by the owner shall also call for an election to be held on the question of the sale or lease with an option to sell the hospital * * *, then it shall be the duty of the owner to call and provide for the holding of an election as petitioned for.  In that case, no such sale or lease shall be entered into unless authorized by the affirmative vote of the majority of the qualified voters of the owner who vote on the proposition at such election.  Notice of the election shall be given by publication in the same manner as provided for the publication of the initial resolution.  The election shall be conducted and the return thereof made, canvassed and declared in the same manner as provided by law in the case of general elections in the owner. * * *If, on or before the date proposed for the sale or lease of the hospital, no such petition is filed with the clerk of the owner, then the owner may sell or lease with an option to sell the hospital.  In no case may the owner execute such sale or lease unless it is approved by majority vote of the electors voting in the referendum.  If approved, such sale or lease shall be made to the respondent submitting the highest and best proposal.  In no case may the owner deviate from the process provided for in the request for proposals.

and the date proposed by the owner for the sale or lease with an option to sell the hospital.  Such publication shall be made once a week for at least three (3) consecutive weeks in at least one (1) newspaper published in the county or city, as the case may be, or if none be so published, in a newspaper having a general circulation therein.  The first publication of the notice shall be made not less than twenty-one (21) days before the date proposed for the sale or lease with an option to sell the hospital and the last publication shall be made not more than seven (7) days before that date. * * *  If, on or before the date proposed for the sale or lease of the hospital, there is filed with the clerk of the owner a petition signed by twenty percent (20%) or fifteen hundred (1500), whichever is less, of the qualified voters of the owner, requesting that an election be called and held on the question of the sale or lease with an option to sell the hospital, then it shall be the duty of the owner to call and provide for the holding of an election as petitioned for.  In that case, no such sale or lease shall be entered into unless authorized by the affirmative vote of the majority of the qualified voters of the owner who vote on the proposition at such election.  Notice of the election shall be given by publication in the same manner as provided for the publication of the initial resolution.  The election shall be conducted and the return thereof made, canvassed and declared in the same manner as provided by law in the case of general elections in the owner.  If, on or before the date proposed for the sale or lease of the hospital, no such petition is filed with the clerk of the owner, then the owner may sell or lease with an option to sell the hospital.  After receiving proposals, such sale or lease shall be made to the respondent submitting the highest and best proposal.  In no case may the owner deviate from the process provided for in the request for proposals.

     SECTION 2.  This act shall take effect and be in force from and after itsJuly passage.1, 2019.