50-4-704. Rights and powers. (1) (a) This part may not be construed to impair the rights and powers of a court or the attorney general with respect to the assets of any public benefit corporation, to any asset devoted to charity, or to a charitable trust as provided in 72-38-820 through 72-38-826.
(b) Filing of an application under this part satisfies any notice requirements under 35-2-609, 35-2-617, or 35-2-722.
(2) (a) (i) Nothing in this part precludes the attorney general, the commissioner, or a nonprofit health entity from filing an action in district court under Title 27, chapter 8, seeking a declaration that a nonprofit health entity transaction is or is not a conversion transaction, as defined in 50-4-701, or a declaration of whether assets of a nonprofit health entity are or are not public assets as defined in 50-4-701. No other declaratory relief may be sought in a court regarding any issue arising from a transaction that is or is alleged to be a conversion transaction under this part, except that a transferor or transferee may file an action in district court seeking an injunction prohibiting the attorney general or commissioner from making an unlawful disclosure of trade secrets or proprietary or other confidential information.
(ii) In an action under this subsection (2) to determine whether assets of a nonprofit health entity are or are not public assets, the presumption in 50-4-715(3) applies.
(b) The commissioner or the attorney general, or both, may contract with experts as reasonably necessary to bring or defend an action pursuant to this subsection (2) and the nonprofit health entity shall pay the costs reasonably incurred by the commissioner or the attorney general for the experts' services.
(c) In an action under this subsection (2), if the court finds that the transaction is a conversion transaction subject to this part and the transaction has not been completed, the court shall enter an injunction prohibiting any further actions to complete the transaction until it has been approved by the commissioner and attorney general under 50-4-702.
(d) In an action under this subsection (2), if the court finds that a completed transaction was a conversion transaction that the commissioner and attorney general have not approved under 50-4-702, the court shall enter an injunction requiring the nonprofit health entity or any successor to the assets involved in the transaction to submit an application for review under 50-4-707. After reviewing any application submitted following a court order under this subsection (2)(d), the attorney general may direct that the nonprofit health entity or any successor to the assets involved in the transaction distribute the fair market value of any public assets involved in the transaction as required under 50-4-720.
(e) The court issuing the declaratory judgment retains jurisdiction to enforce any direction by the attorney general for distribution of the fair market value of public assets under this subsection (2).
(3) This part may not be construed to make void or voidable or to require any distribution of assets with respect to any transaction or series of transactions completed before April 8, 2005, even if that transaction or series of transactions is considered as part of a conversion transaction completed on or after April 8, 2005.
History: En. Sec. 4, Ch. 214, L. 2005.