(1) A covered transaction under this part 2 that will not result in a material change in the charitable purposes to which the assets of the hospital have been dedicated, and will not result in a termination of the attorney general's jurisdiction over those assets caused by a transfer of a material amount of those assets outside of the state of Colorado, shall proceed without further review. In considering whether a material change results from the transaction, the attorney general shall consider, among other factors, reductions in the availability and accessibility of health care services in the communities served by the hospital.
(2) When a transaction covered by this part 2 will result in a material change in the charitable purposes to which the assets of the hospital have been dedicated, or a termination of the attorney general's jurisdiction over the hospital assets caused by a transfer of a material amount of those assets outside the state of Colorado, the attorney general may exercise his or her common law authority to assess and review or challenge the transaction as deemed appropriate by the attorney general. If the attorney general decides to conduct an assessment or review the following provisions shall apply to such actions of the attorney general:
(a) The attorney general shall perform a review and assessment to the extent practicable and with due consideration to the financial circumstances of the parties to the transaction. The attorney general is further authorized to:
Hire experts, at the expense of the parties to the transaction, as similarly provided forin section 6-19-406 (1)(b) and to accept and expend grants or donations, or both, as similarly provided for in section 6-19-406 (1)(e);
Contract and consult with other state agencies as similarly provided for in section 619-406 (1)(a);
Require production of material documentation, such as the proposed agreementsrelating to the proposed transaction, agreements regarding collateral transactions relating to the proposed transaction, and any reports of financial and economic analysis that the nonprofit entity reviewed or relied on in negotiating the proposed transaction. These documents shall be treated in the same manner as set forth in section 6-19-404 (4).
Hold a public hearing as similarly provided for in section 6-19-404 (1). The attorney general shall provide a written determination within the time frames or extended time frames as similarly provided for in section 6-19-402 (2).
(b) The attorney general shall have the authority to allow a transaction that satisfies the following criteria:
The assets continue to be dedicated to charitable purposes;
The directors or trustees of the parties to the transaction have not acted unreasonablyin light of the financial circumstances of the parties;
The directors or trustees of the parties to the transaction have not acted unreasonably in accommodating the affected community or communities; and
The directors or trustees of the parties to the transaction have not breached theirfiduciary duties or otherwise engaged in misconduct in such transaction.
(c) The attorney general shall liberally construe the criteria set forth in paragraph (b) of this subsection (2) in favor of allowing a transaction to proceed.
Source: L. 98: Entire article added, p. 522, § 1, effective April 30. L. 2008: (1) amended, p. 1342, § 2, effective August 5.