Bill Text: AZ HB2067 | 2011 | Fiftieth Legislature 1st Regular | Engrossed
Bill Title: Board of supervisors; powers
Spectrum: Partisan Bill (Republican 1-0)
Status: (Vetoed) 2011-04-29 - Governor Vetoed [HB2067 Detail]
Download: Arizona-2011-HB2067-Engrossed.html
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Senate Engrossed House Bill |
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State of Arizona House of Representatives Fiftieth Legislature First Regular Session 2011
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HOUSE BILL 2067 |
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AN ACT
amending sections 11‑251.02, 15-1625 and 15-1637, Arizona Revised Statutes; relating to the board of regents.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 11-251.02, Arizona Revised Statutes, is amended to read:
11-251.02. Additional powers of the board
The board of supervisors may:
1. Authorize the use of county personnel, facilities, equipment, supplies and other resources in search or rescue operations involving the life or health of any person.
2. Contract for the acquisition, rental or hire of equipment, services, services supervision, supplies and other resources for use in such search or rescue operations.
3. Contract with an ambulance service provider that has a certificate of necessity issued pursuant to title 36, chapter 21.1, article 2 to provide ambulance service in the rural or wilderness service areas in counties with a population of less than five hundred thousand persons.
4. Contract with a government agency to provide the services of the constable at fees that are less than those established by section 11‑445, except for those services that are specifically authorized by law to be performed solely by the sheriff.
5. Enter into agreements pursuant to section 15‑1637, subsection G, paragraph 1.
Sec. 2. Section 15-1625, Arizona Revised Statutes, is amended to read:
15-1625. General powers of board as body corporate; prohibition
A. The Arizona board of regents is a body corporate with perpetual succession. The board has jurisdiction and control over the universities.
B. The board may:
1. Adopt a corporate seal.
2. Contract.
3. Sue and be sued.
4. Purchase, receive, hold, make and take leases and long‑term leases of and sell real and personal property for the benefit of this state and for the use of the institutions under its jurisdiction.
C. Absent express authorization by the legislature, The board shall not serve directly or indirectly as the governing body of a nonprofit corporation that leases property from the board pursuant to section 15-1637 or from any corporate member or subsidiary of that nonprofit CORPORATION, or have the right to appoint, remove or replace a majority of the members of the board of directors of that nonprofit corporation or otherwise exercise similar control, dominion or approval rights, whether by contract or otherwise, over that nonprofit corporation.
Sec. 3. Section 15-1637, Arizona Revised Statutes, is amended to read:
15-1637. Lease of property for health care institution; requirements; conditions; reports; directors, members and officers of nonprofit corporation; definition
A. The Arizona board of regents may lease real property, improvements or personal property owned by the board to a nonprofit corporation as lessee for purposes of operating a health care institution as defined in section 36‑401. If the board leases such property for such purposes, whether title to improvements on the property rests in the board or in the lessee, the lease agreement and any amendments, renewals or extensions of the agreement shall be deemed binding and effective according to its terms. If, under the provisions of the lease, improvements or personal property related to the operation of a health care institution are conveyed to the nonprofit corporation, they shall be presumed to have been conveyed for their then fair market value.
B. Any lease agreement entered into pursuant to subsection A of this section may, at the discretion of the Arizona board of regents, may contain provisions requiring the nonprofit corporation to acquire the approval of the Arizona board of regents prior to before entering into any business transactions that may could reasonably be expected to materially and adversely affect the interests of this state or that are contained in subsection G, paragraph 2 of this section. The Arizona board of regents shall specify in the lease agreement the type and nature of such transactions which that require prior approval of the board.
C. To satisfy the requirements of section 103 of the internal revenue code, as defined in section 43‑105, any nonprofit corporation which that is a lessee as described in subsection A of this section is declared to be:
1. A validly organized and existing body politic and corporate exercising its powers for the benefit of the people, to improve their health and welfare and to increase their prosperity.
2. Engaged in a purpose essential to public health care.
3. Performing an essential governmental function.
D. Any nonprofit corporation which that is a lessee as described in subsection A of this section is exempt from property taxation by this state or any agency or subdivision of this state and possesses and may exercise only those powers of the Arizona board of regents which are delegated to the nonprofit corporation by the Arizona board of regents and all of the powers which that are necessary to satisfy the requirements of section 103 of the internal revenue code, as defined in section 43‑105, as specified in the terms, conditions, restrictions and agreements of the lease agreement. These powers are in addition to all those powers granted to a nonprofit corporation by title 10, chapters 24 through 40.
E. Any nonprofit corporation which that is a lessee as described in subsection A of this section may issue bonds and incur obligations and pledge its revenues as security for the payment of the bonds or other obligations for health care institutional purposes to the extent provided by the lease agreement or amendments, renewals or extensions of the agreement. Nothing in This section shall not be construed to authorize the incurrence of a debt by the state within the meaning of any constitutional restriction on debt.
F. Except as provided in subsection G of this section, any nonprofit corporation which that is a lessee as described in subsection A of this section may acquire by purchase, lease or otherwise, and may operate, other health care institutions and real and personal property for purposes of providing products and services related to the operation of health care institutions owned, leased or operated by it. Such acquisition or operation does not affect the powers, rights, privileges or immunities conferred on such nonprofit corporation by this section.
G. No Any nonprofit corporation which that is a lessee as described in subsection A of this section shall not:
1. Until September 1, 1986 Enter into any agreement with a county or a nonprofit corporation to which property is conveyed pursuant to section 11‑256.03, subsection A if the agreement provides for the conveyance of any ownership interest whatever in the nonprofit corporation to which property is conveyed pursuant to section 11‑256.03, subsection A or in the property described in section 11‑256.03, subsection A unless the agreement is reviewed by the joint committee on capital review. After August 31, 1986 any such agreement must be approved by the Arizona board of regents and the legislature. This subsection does not prevent the grant of an option to purchase such property, provided that the option may not be exercised before September 1, 1986 and the exercise of the option must be approved by the Arizona board of regents and the legislature reviewed by the joint committee on capital review. Under no circumstances shall any State general fund monies shall not be used to acquire any interest in such property.
2. Own, lease, manage or operate any other health care institution or other real or personal property unless such acquisition, management or operation either:
(a) Relates to and furthers the educational or research purposes and goals of the a hospital affiliated with the university of Arizona hospital.
(b) Promotes the efficient and economical operation of the a hospital affiliated with the university of Arizona hospital or any other health care institution acquired pursuant to paragraph 1 of this subsection.
H. A nonprofit corporation which that is a lessee as described in subsection A of this section may manage and operate property described in section 11‑256.03, subsection A subject to the restrictions of subsection G of this section. Any management or operation agreement shall provide that the nonprofit corporation which that is a lessee as described in subsection A of this section shall not be liable for any bonds or other obligation of any kind relating to the ownership or operation of the property described in section 11‑256.03, subsection A incurred before the property is conveyed to such nonprofit corporation in accordance with subsection G of this section.
I. A health care institution which that is the subject of a lease agreement as described in subsection A of this section is subject to section 15‑1630.
J. A nonprofit corporation which that is a lessee as described in subsection A of this section shall make semiannual progress reports as to its financial status and deliver them on January 1 and July 1 of each year to the Arizona board of regents, the president of the senate, the speaker of the house of representatives and the governor. The nonprofit corporation shall present an independently audited financial statement to the auditor general within ninety days of after the close of the previous fiscal year. The auditor general shall review such statements and transmit them together with a report to officers entitled to receive progress reports by this subsection.
K. Any nonprofit corporation which that is a lessee as described in subsection A of this section shall:
1. Be organized as a and have as its corporate members, if any, only entities organized as nonprofit corporation corporations pursuant to title 10, chapters 24 through 40 only upon the approval of the Arizona board of regents. Any corporate member of wholly owned subsidiaries of the nonprofit corporation, if any, shall have a governing board that is composed in the same manner specified in this subsection.
2. Until June 30, 2011, be governed by a board of directors, the members of which are appointed by the Arizona board of regents, provided that no more than forty‑nine per cent of the members of such board of directors of the nonprofit corporation shall be officers or employees of this state and of such forty‑nine per cent only two members of such board of directors may be members of the Arizona board of regents. Members of the Arizona board of regents who are appointed to the board of directors of such nonprofit corporation shall be residents of different counties unless all members of the board of regents are residents of the same county.
3. Beginning July 1, 2011, be governed by a board of directors composed of the following members:
(a) The Chief Executive Officer of the nonprofit corporation.
(b) The chief financial officer of the NONPROFIT corporation.
(c) The dean of The University of Arizona College of medicine.
(d) The President of The University of Arizona.
(e) One department Chairperson from The University of Arizona College of Medicine, who is INITIALLY appointed by the governor and who is subsequently appointed by the board of directors of the nonprofit corporation.
(f) One member of the faculty medical staff of the hospital or hospitals operated by the nonprofit corporation, who is INITIALLY appointed by the governor and who is subsequently appointed by the board of directors of the nonprofit corporation.
(g) twelve independent community board members, as defined in the United States Internal Revenue Code, four of whom are initially appointed by the governor, four of whom are initially appointed by the president of the senate and four of whom are initially appointed by the speaker of the house of representatives. The governor may use one of the governor's four initial appointments to appoint himself or herself as a nonvoting member of the board. the INITIAL members appointed pursuant to this subdivision shall assign themselves by lot to terms of two, three and four years in office. All SUBSEQUENT members appointed pursuant to this subdivision serve four year terms of office. The initial independent community board members shall be appointed by the appointing authority specified in this subdivision, and the successors of those initial appointees shall be selected by the board of directors of the nonprofit corporation. The board of directors shall ensure that the nonprofit corporation fulfills the educational or research purposes and goals of a hospital affiliated with the university of Arizona.
3. 4. Be organized under articles of incorporation or bylaws approved by the Arizona board of regents which shall that provide among other things that:
(a) No Earnings of the nonprofit corporation shall not inure to the benefit of or be distributable to its members, directors, officers or other individuals, except that the nonprofit corporation shall be authorized to pay reasonable compensation for services rendered to it by individuals other than members of the board of directors of the nonprofit corporation acting solely in such capacity, to reimburse expenses in connection with services rendered to or expenses incurred on behalf of the nonprofit corporation and to make payments and distributions in furtherance of the purposes of the nonprofit corporation.
(b) Upon On the dissolution or liquidation of the nonprofit corporation, the board of directors of the nonprofit corporation shall, after paying or making provision for the payment of all of the liabilities of the nonprofit corporation, shall distribute all of the assets of the nonprofit corporation to the Arizona board of regents or its successor.
(c) Neither the articles of incorporation nor the bylaws of the nonprofit corporation shall be amended without the approval of the Arizona board of regents.
(d) (c) The board of directors of the nonprofit corporation may adopt nondiscriminatory rules and regulations providing for the use of a hospital affiliated with the university of Arizona hospital by, and staff privileges for, any persons licensed under title 32, chapter 7, 13 or 17 whether or not such persons have a faculty teaching appointment with the school of medicine, providing, however, that such if those rules and regulations shall contain requirements sufficient to protect the educational and research purposes and goals of a hospital affiliated with the university of Arizona hospital.
L. No member of the Arizona board of regents who is also a member or director of a nonprofit corporation which is a lessee as described in subsection A of this section shall as a regent vote upon any matter pertaining to such a corporation as may come before the Arizona board of regents.
M. L. For the purposes of this section, "nonprofit corporation" means a corporation as defined in section 10‑3140.
Sec. 4. Intent
It is the intent of the legislature that the board of directors of the nonprofit corporation that governs a hospital affiliated with the university of Arizona ensures that the hospital be operated exclusively for charitable, scientific and educational purposes. Specifically, the board shall promote the delivery of medical and health care services and be operated to perform the functions of, or to carry out the purposes of, the university of Arizona and its college of medicine.
Sec. 5. Saving clause
This act does not affect any contracts that were executed pursuant to section 15‑1637, Arizona Revised Statutes, as amended by this act, before the effective date of this act.
Sec. 6. Retroactivity
Section 15‑1637, Arizona Revised Statutes, as amended by this act, applies retroactively to from and after June 30, 2011.
