March 16, 1999

Mr. Speaker:

Your APPROPRIATIONS AND FINANCE COMMITTEE, to whom has been referred

HOUSE BUSINESS AND INDUSTRY COMMITTEE SUBSTITUTE FOR HOUSE BILL 863

has had it under consideration and reports same with recommendation that it DO PASS, amended as follows:

1. On page 7, line 8, strike "in".

2. On page 8, line 19, following "criteria", insert "taking into consideration changes in the local health care market conditions or economy".

3. On page 9, line 4, strike the semicolon, insert in lieu thereof a period, strike the remainder of the line and strike lines 5 and 6.

4. On page 10, strike lines 15 through 25 and strike lines 1 through 12 on page 11.

5. On page 11, between lines 12 and 13, insert the following new sections:

"Section 13. NONPROFIT HOSPITALS OWNED BY A GOVERNMENTAL ENTITY--WAIVER OF REVIEW PROCESS REQUIREMENT.--Nonprofit hospitals that are owned by a governmental entity shall receive a waiver of the requirement of review by the attorney general if the governmental entity certifies to the attorney general that the sale of the nonprofit hospital will otherwise satisfy all of the criteria in Sections 3, 5 and 6 of the Nonprofit Hospital Sale Act. The department shall provide the governmental entity with its written report pursuant to Section 7 of the Nonprofit Hospital Sale Act.

Section 14. NONPROFIT HOSPITALS OWNED BY A GOVERNMENTAL ENTITY--USE OF NET SALE PROCEEDS FROM ACQUISITION.--A governmental entity shall maintain the net sale proceeds from an acquisition of a nonprofit hospital owned by the governmental entity in a dedicated fund for at least five years. The interest from the dedicated fund shall be used only for health care related purposes. After five years, the net sale proceeds from the acquisition and any accumulated interest may be released from the dedicated fund and may be used for other essential governmental purposes only after the governmental entity:

A. conducts at least one public hearing to solicit public input into whether the net sale proceeds should be used for purposes other than health care;

B. determines that the present and future health care needs of the affected community are being met;

C. determines whether there is a need for retaining all or part of the net sale proceeds in the dedicated fund for the support and promotion of health care in the affected community; and

D. determines that all or part of the net sale proceeds are necessary to fund other essential governmental services.".

6. Renumber the succeeding section accordingly.

Respectfully submitted,

Max Coll, Chairman

Adopted Not Adopted

(Chief Clerk) (Chief Clerk)

The roll call vote was 12 For 2 Against

Yes: 12

No: Coll, Heaton

Excused: Abeyta, Pearce, Watchman

Absent: None

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