AB 651: Nonprofit health facilities: sale of assets: Attorney General approval.

Existing law requires a nonprofit corporation, as defined, that operates or controls a health facility, as defined, or operates or controls a facility that provides similar health care to provide written notice to, and obtain the written consent of, the Attorney General prior to selling or otherwise disposing of a material amount of its assets to a for-profit corporation or entity, to a mutual benefit corporation or entity, or to another nonprofit corporation or entity.

This bill would require the notice to the Attorney General to include a list of the primary languages spoken at the facility and the threshold languages for Medi-Cal beneficiaries, as determined by the State Department of Health Care Services for the county in which the facility is located. The bill also would authorize the Attorney General to require the components of the written notice be provided in any of those languages. This bill would apply to specified health facilities regardless of whether they are currently operating or providing health care services or have a suspended license.

Existing law provides that the Attorney General has discretion to give consent to, give conditional consent to, or to not consent to, the agreement or transaction and requires the Attorney General to consider any factors he or she deems relevant, including, but not limited to, whether the terms are fair and reasonable.

This bill would require the Attorney General to consider whether the agreement or transaction may create a significant effect on the availability and accessibility of cultural interests provided by the facility in the affected community.

Existing law requires the Attorney General to conduct one or more public meetings prior to issuing its decision whether to consent to the proposed agreement or transaction, to issue a notice of the public meeting, as specified, and, in any case, to issue its decision within 60 days of the receipt of the written notice from the public benefit corporation, subject to one additional 45-day extension under specified circumstances.

The bill instead would require the Attorney General to issue the decision within 90 days of the receipt of the written notice from the nonprofit corporation. The bill also would require the Attorney General to provide the notice to the public in English and in the primary languages spoken at the facility and the threshold languages for Medi-Cal beneficiaries for the county in which the facility is located, as specified.

This bill would authorize the Attorney General to enforce the conditions imposed on the Attorney Generals consent to a specified agreement or transaction. This bill also would entitle the Attorney General to specific performance, injunctive relief, and other equitable remedies a court deems appropriate, and to recover its attorneys fees and costs incurred.

This bill would incorporate additional changes to Sections 5914 and 5920 of the Corporations Code proposed by SB 687 to be operative only if this bill and SB 687 are enacted and this bill is enacted last.