HB 1167

This bill requires two or more hospitals or entities that are parties to a cooperative agreement and have been issued a certificate of public advantage (a " hospital system "") to have as the governing body of the hospital system a board of directors that complies with this bi ll . A hospital system that has an existing board of directors that does not comply with this bill must, within 30 days after the effective date of this bill, vacate the existing board of directors and reconstitute the board of directors in a manner that c omplies with this bill . This bill generally requires the board of directors of a hospital system to consist of nine voting members who are nominated by the governor and to be confirmed by joint resolution of the general assembly. However, the following exceptions to being confirmed by such a joint resolution applies:  If the general assembly is not in session when initial appointments are made, all initial appointees serve the terms prescribed in this bill, unless the appointments are not confirmed during the next regular session of the general assembly following the appointments.  If the general assembly is not in session at the time a member is appointed to fill a vacancy resulting from the expiration of a term, the member whose term has expired serves until a new appointee is confirmed.  If the general assembly is not in session at the time a member is appointed to fill a vacancy not resulting from the expiration of a term, the new appointee serves for the term appointed unless the appointment is not confirmed during the next regular session of the general assembly following the appointment. This bill requires the reconstituted board of directors to assume responsibility beginning May 1, 2025. The reconstitution of the board of directors has no effect on any action taken by the board of directors prior to May 1, 2025, unless such action is inconsistent with this part. If a board of directors is not appointed by May 1, 2025, then the hospital system's certificate of public advantage expires on May 1, 2 025. PROHIBITED MEMBERS TO A BOARD This bill prohibits the following individuals from serving as a member of the board of directors of a hospital system for so long as they hold the office or position:  An employee of a hospital that is a party to the hospital system's cooperative agreement .  An employee of an entity that contracts to do business with the hospital system or with any hospital that is a party to the hospital system's cooperative agreement .  A member of a governing body of any hospital that is a party to the hospital system's cooperative agreement .  A person who has a financial interest in any contract or transaction affecting the interest of the hospital system . A violation of such prohibition subjects the violator to removal by the governo r, board of directors, or the committee of state legislators appointed pursuant to this bill as described below . TERMS OF BOARD MEMBERS This bill staggers the initial terms of service for members on the board of directors appointed by the governor. Fol lowing the expiration of the initial terms, the term for all members appointed to serve on the board of directors is three years, beginning on May 1 of the year of appointment and ending on April 30 three years later. Members appointed are generally elig ible to serve multiple terms and succeed themselves . However, a person m ust not serve more than two consecutive terms, whether appointed as an initial member, as a successor member, or to fill a vacancy. A member who serves two consecutive terms may be r eappointed after two years have elapsed since the individual's last date of service on the board. If a vacancy on a board of directors occurs by death or resignation, this bill provides that a successor must be appointed for the remainder of the term . I f a vacancy occurs by reason of expiration of a term, then the member whose term has expired serve s until a successor is appointed and confirmed. MEETINGS This bill authorizes t he governor to call the initial meeting of the reconstituted board of direct ors to occur on or after May 1, 2025. The board must hold at least one stated meeting annually on a day or days determined by the board from year to year and at called meetings that may be necessary, to be called by the board or to be called by a legislat ive committee, upon at least five days' notice to the board members. This bill requires the governor to appoint a committee of members of the senate and house of representatives that is authorized, by majority vote, to call a meeting of the board of dire ctors. The committee must only be composed of members of the senate and house of representatives that represent a county or portion of a county where the hospital system is located. This bill provides that f ive members of the board of directors constit ute a quorum for the purpose of transacting business and that a ll meetings of the board must be made available for viewing by the public over the internet by streaming video accessible from the board's website. Archived videos of the board's meetings must also be available to the public through the board's website. This bill provides that the failure of a member to attend at least 50% of the regular meetings in a calendar year is cause for the member's removal and authorizes the presiding officer of the board to call on the governor to appoint a successor."