SF 3715

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to Steele County; authorizing transfer of nursing home and assisted
living facility and related assets to nonprofit corporation and acquisition of
membership interest in nonprofit corporation.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1. new text begin STEELE COUNTY ASSET TRANSFER; STATUS OF TRANSFEREE.
new text end

new text begin Subdivision 1. new text end

new text begin Asset transfer authorized. new text end

new text begin Steele County may lease, sell, or
otherwise transfer to a nonprofit corporation all of the real and personal property, tangible
and intangible, including contract rights, receivables, and enterprise funds, owned or used
by the county for nursing home, assisted living, and related purposes and may acquire a
membership interest in the nonprofit corporation. Any lease must provide for rent payable
by the corporation at least sufficient to pay the principal and interest on the outstanding
bonds of the county issued to finance any of such facilities. The lease may grant the
corporation an option or require the corporation to purchase the facilities upon payment
or redemption of the outstanding bonds. Any lease, sale, or other transfer must be on
such terms and conditions as the county board shall approve, without advertisement or
public solicitation of bids.
new text end

new text begin Subd. 2. new text end

new text begin Status of transferee. new text end

new text begin The articles of incorporation or bylaws of the
transferee corporation may provide that the county board has the right to appoint and
remove one or more members of the governing board of the corporation and that specified
actions be subject to the approval of such members. The corporation shall be a nonprofit
corporation organized under Minnesota Statutes, chapter 317A, and entitled to exercise
all of the powers of a nonprofit corporation under that chapter. If the county board
does not have the right to appoint a majority of the governing board of the nonprofit
corporation, neither Minnesota Statutes, section 465.717, nor other laws applicable to
public corporations shall apply to the nonprofit corporation.
new text end

new text begin EFFECTIVE DATE; LOCAL APPROVAL. new text end

new text begin This section is effective the day
after the governing body of Steele County and its chief clerical officer timely complete
compliance with Minnesota Statutes, section 645.021, subdivisions 2 and 3.
new text end