Delaware Senate Bill 146 (Prior Session Legislation)

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Completed Legislative Action
Spectrum: Bipartisan Bill
Status: Passed on July 12 2011 - 100% progression
Action: 2011-07-12 - Signed by Governor
Text: Latest bill text (Engrossed) [HTML]

This bill corrects certain flaws in Delaware’s Not-for-profit Healthcare Conversion Act (the “Act”) enacted in 2004. The bill clarifies the General Assembly’s intent that the Act does not consider a Delaware not-for-profit healthcare entity affiliation with another not-for-profit entity to be a “not for profit healthcare conversion.” The Act has recently been interpreted by the Delaware Attorney General as requiring that result in a specific transaction involving a not-for-profit Delaware health service corporation seeking to affiliate with another not-for-profit company, where both entities will retain their not-for-profit status post affiliation. The bill corrects language in the Act that on its face requires the same result for any not-for-profit entity or charity that decides to dispose of its reserves or control by charter change or otherwise, even if it is not a health care-related entity, and even if the change involves another not-for-profit entity. In the event of a Not-for-profit conversion, the bill requires an annual financial report to the Secretary of State. Also, this bill adds a new 6310 to Title 18 that ensures that change of control transactions involving Delaware health service corporations do not result in the dissipation or improper use of the reserves or surplus of such health service corporation.

An Act To Amend Titles 18 And 29 Relating To Not For Profit Health Care Conversions.

Sen. Patricia Blevins [D]	Rep. Robert Gilligan [D]	Sen. Gerald Hocker [R]	Rep. Bryon Short [D]
Rep. Daniel Short [R]	Sen. Gary Simpson [R]

2011-06-29 - House - House Third Reading (Y: 34 N: 5 NV: 2 Abs: 0) [PASS]
2011-06-28 - Senate - Senate Third Reading (Y: 21 N: 0 NV: 0 Abs: 0) [PASS]

Date	Chamber	Action
2011-07-12		Signed by Governor
2011-06-29		Passed by House of Representatives. Votes: Passed 34 YES 5 NO 2 NOT VOTING 0 ABSENT 0 VACANT
2011-06-29		Necessary rules are suspended in House
2011-06-28		Passed by Senate. Votes: Passed 21 YES 0 NO 0 NOT VOTING 0 ABSENT 0 VACANT
2011-06-28		Amendment SA 1 - Passed by Senate. Votes: Passed 21 YES 0 NO 0 NOT VOTING 0 ABSENT 0 VACANT
2011-06-28		Amendment SA 1 - Introduced in Senate
2011-06-23		Reported Out of Committee (INSURANCE) in Senate with 5 On Its Merits, 1 Unfavorable
2011-06-21		Assigned to Insurance Committee in Senate

Type	Source
Summary	http://legis.delaware.gov/LIS/lis146.nsf/2bede841c6272c888025698400433a04/9608aad0dd75b215852578b6005d042c?OpenDocument
Text	http://legis.delaware.gov/LIS/lis146.nsf/vwLegislation/SB+146/$file/legis.html?open
Text	http://legis.delaware.gov/LIS/lis146.nsf/EngrossmentsforLookup/SB+146/$file/Engross.html?open
Roll Call	http://legis.delaware.gov/LIS/lis146.nsf/7712cf7cc0e9227a852568470077336f/ec299e63aaa5c2b3852578bd0079aa15?OpenDocument
Roll Call	http://legis.delaware.gov/LIS/lis146.nsf/7712cf7cc0e9227a852568470077336f/c17408ea255d5456852578be0081c785?OpenDocument