ACT NO. 28
Nonprofit hospitals; conversion of charitable assets
This act codifies the standards and procedures a nonprofit hospital service corporation must meet when the corporation seeks to convert to a for-profit entity or to sell, transfer, lease, exchange, option, commit, convey, or otherwise dispose of charitable assets of the nonprofit hospital service corporation. Any conversion by a nonprofit hospital service corporation of a qualifying amount of charitable assets must be approved by the attorney general and the commissioner of banking, insurance, securities, and health care administration as a transaction that will promote the public good of the state. A qualifying amount of charitable assets is an amount that is at least $1 million and represents at least 40 percent of the value of the assets of the nonprofit hospital, or that vests control of the nonprofit hospital in another person or entity. Related conversions shall be aggregated to determine the qualifying amount.
Effective Date: On passage, May 24, 2005
The Vermont General Assembly
115 State Street