ASSEMBLY SUBSTITUTE FOR
ASSEMBLY, No. 2368
with Assembly Floor Amendments
(Proposed By Assemblywoman VANDERVALK)
ADOPTED: DECEMBER 4, 1997
These amendments provide that the amount of assets determined by the Attorney General to be set aside as a charitable obligation from a nonprofit hospital or a health service corporation which converts to for-profit status, and which are placed in a nonprofit charitable trust, shall be expended for the purposes of providing health-related services in accordance with such requirements as shall be enacted into law, or as shall be established by the Attorney General, in consultation with the Commissioners of Banking and Insurance and Health and Senior Services, as appropriate.
The amendments also provide that an appropriate portion of the charitable obligation, if determined to be necessary by the Attorney General, shall be used for assistance in the development of a plan for the use of the charitable trust which shall take into consideration the needs of the community historically served by the predecessor nonprofit hospital, rather than specifying that it be a community-based plan.
Finally, the amendments provide that the governance of the charitable trust that results from the acquisition of a nonprofit hospital shall be broadly based but delete the specific requirement that the governance of the charitable trust be broadly based in the community historically served by the predecessor nonprofit hospital.