SB 443 Allows certain local city hospitals to become nonprofit corporations upon a vote of the people or the adoption of a resolution by the hospital's board of trustees
Sponsor: Silvey
LR Number: 1910S.01I Fiscal Note available
Committee: Judiciary and Civil and Criminal Jurisprudence
Last Action: 4/2/2013 - Hearing Conducted S Judiciary and Civil and Criminal Jurisprudence Committee Journal Page:
Title: Calendar Position:
Effective Date: Emergency clause

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Current Bill Summary


SB 443 - This act allows for the conversion of a local city hospital organized and operated under Chapter 96 to a nonprofit organization governed by Missouri's nonprofit corporation law under Chapter 355.

On or after January 1, 2013, the board of trustees of a 250 or more bed hospital that has not received money from the city during the prior 20 years may adopt a resolution upon a majority vote to become a nonprofit corporation. Prior to the vote on the resolution by the board of trustees, the board shall give notice to city residents and also provide, upon request, financial and other information about the hospital prepared by an independent third party. The board of trustees may abandon the conversion at any time prior to filing the new article of incorporation by the secretary of state.

The hospital may also become a nonprofit corporation upon majority approval by the voters in the city in which the hospital is located. The governing body of the city must put the question before the voters if the city receives a petition signed by five percent of the registered voters calling for the hospital to become a nonprofit. If such a citizen vote does not pass, another petition cannot be filed for five years.

The conversion of the hospital to a nonprofit does not become effective until any outstanding revenue bonds issued by the city are satisfied. Also, any donations received by the hospital shall continue to be used for their intended purposes.

This act also sets forth the procedures for notice to be given to the Attorney General about the conversion. The Attorney General may consent or object to the conversion.

The purpose of the newly converted nonprofit hospital shall be the same of a Chapter 96 hospital, which includes the care and treatment of the sick, disabled, and infirm persons in the community.

The conversion shall become effective when the Secretary of State files the articles of incorporation. The new public benefit corporation shall have at least 15 members on its board of trustees, no less than one-half of whom shall be residents of the county in which the hospital is located and no less than one-half of such county residents shall be residents of the city in which such hospital is located. For 15 years after the filing of the articles of incorporation, the hospital cannot be sold or leased to a for profit entity and after 15 years any such proposed sale would require voter approval.

The new public benefit corporation shall retain all of the assets and liabilities of the former Chapter 96 hospital under Missouri law.

This act contains an emergency clause.

MEGHAN LUECKE