South Carolina General Assembly
112th Session, 1997-1998

Bill 3858


Indicates Matter Stricken
Indicates New Matter


                    Current Status

Bill Number:                       3858
Type of Legislation:               General Bill GB
Introducing Body:                  House
Introduced Date:                   19970409
Primary Sponsor:                   Vaughn
All Sponsors:                      Vaughn, Haskins, Cato, Leach
                                   and Hamilton 
Drafted Document Number:           pt\1138ac.97
Residing Body:                     Senate
Current Committee:                 Conference Committee 88
                                   SCC
Date of Last Amendment:            19970603
Subject:                           Greenville County Hospital
                                   System, Greenville Health System
                                   Board of Trustees; Medical



History


Body    Date      Action Description                       Com     Leg Involved
______  ________  _______________________________________  _______ ____________
Senate  19970604  Conference powers granted,               88 SCC  J. Verne
                  appointed Senators to Committee                  Smith
                  of Conference                                    Bryan
                                                                   Thomas
House   19970603  Conference powers granted,               98 HCC  Vaughn
                  appointed Reps. to Committee of                  Hamilton
                  Conference                                       Cato
House   19970603  Insists upon amendment
Senate  19970603  Non-concurrence in House amendment
House   19970603  Senate amendments amended,
                  returned to Senate with amendment
Senate  19970530  Read third time, returned to House
                  with amendment
Senate  19970529  Amended, read second time,
                  unanimous consent for third reading
                  on Friday, 19970530
Senate  19970422  Introduced, read first time,
                  placed on local and uncontested
                  Calendar without reference
House   19970417  Read third time, sent to Senate
House   19970416  Amended, read second time
House   19970415  Request for debate by Representative             Cato
                                                                   Vaughn
                                                                   Rice
                                                                   Tripp
                                                                   Davenport
                                                                   Loftis
                                                                   Hamilton
                                                                   Seithel
                                                                   Limehouse
                                                                   Neal
                                                                   Simrill
                                                                   Knotts
                                                                   Rodgers
                                                                   F. Smith
                                                                   Harrell
                                                                   McMahand
                                                                   Easterday
                                                                   Leach
                                                                   Rhoad
House   19970409  Introduced, read first time,
                  placed on Calendar without reference

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(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

Indicates Matter Stricken
Indicates New Matter

PLEASE DO NOT REMOVE THIS COPY FROM BILL JACKET

AMENDED--NOT PRINTED IN THE HOUSE

Amendment No. 1A--L:\PRINTING\DAILY\AMEND\3858H.1A

June 3, 1997

H. 3858

Introduced by Reps. Vaughn, Haskins, Cato, Leach and Hamilton

L. Printed 5/29/97--S.

Read the first time April 22, 1997.

A BILL

TO AMEND ACT 432 OF 1947, AS AMENDED, RELATING TO THE GREENVILLE HOSPITAL SYSTEM, ITS CREATION, BOARD, POWERS, AND DUTIES, SO AS TO PROHIBIT THE BOARD FROM SELLING, LEASING, MERGING, CONSOLIDATING, OR TRANSFERRING CERTAIN OF ITS ASSETS OR ENTERING INTO A JOINT VENTURE OR OTHER BUSINESS RELATIONSHIP WITHOUT THE CONSENT OF THE GREENVILLE COUNTY LEGISLATIVE DELEGATION IF THE ACTION DISPOSES OF OR COMMITS TEN PERCENT OR MORE OF THE ASSETS; TO PROHIBIT THE BOARD FROM TRANSFERRING OR DELEGATING ITS RESPONSIBILITIES AND AUTHORITY OVER THE HOSPITAL SYSTEM TO ANY OTHER PERSONS, BOARD, OR ENTITY, AND TO PROVIDE THAT THE LEGISLATIVE DELEGATION ONLY MAY CALL FOR A REFERENDUM IF CONSENT IS REQUESTED TO TAKE SUCH ACTION; TO INCREASE THE BOARD FROM SEVEN TO NINE MEMBERS AND TO PROVIDE NOMINATING PROCEDURES AND TO PROVIDE ALTERNATIVE COMPOSITION AND PROCEDURES CONTINGENT UPON A GREENVILLE CITY COUNCIL STIPULATION BY ORDINANCE; TO AUTHORIZE THE BOARD TO PROVIDE SERVICES AND LOCATE FACILITIES OUTSIDE OF GREENVILLE COUNTY IF SUCH WOULD ENHANCE SERVICES; TO ENTER INTO JOINT VENTURES OR OTHER BUSINESS RELATIONSHIPS SUBJECT TO THE REQUIREMENT FOR OBTAINING CONSENT UNDER CERTAIN CONDITIONS; TO AUTHORIZE THE CHANGE OF NAME OF THE BOARD AND THE OPERATION OF THE BOARD UNDER A TRADE NAME; TO AUTHORIZE THE ESTABLISHMENT OF ONE OR MORE SUBSIDIARIES AND TO REQUIRE SUCH ENTITY TO COMPLY WITH THE FREEDOM OF INFORMATION ACT; TO ESTABLISH ADDITIONAL HOSPITALS OR OTHER CLINICS; TO AUTHORIZE THE EXERCISE OF CERTAIN POWERS GENERALLY CONFERRED ON REGIONAL HEALTH SERVICE DISTRICTS; TO AMEND ACT 1285 OF 1966, RELATING TO THE NAME OF THE GREENVILLE HOSPITAL SYSTEM, SO AS TO CHANGE THE NAME OF THE BOARD TO THE GREENVILLE HEALTH SYSTEM BOARD OF TRUSTEES; TO REQUIRE THE BOARD OF TRUSTEES TO REIMBURSE THE COUNTY FOR ANY DAMAGES THE COUNTY MAY BE REQUIRED TO PAY THE CITY UNDER A CONTRACT ARISING OUT OF ACT 432 OF 1947; AND TO REPEAL CERTAIN PROVISIONS CONTINGENT UPON STIPULATIONS OF GREENVILLE CITY COUNCIL.

Amend Title To Conform

Be it enacted by the General Assembly of the State of South Carolina:

SECTION 1. Act 432 of 1947, as last amended by Act 1285 of 1966, is further amended by adding:

"Section 5A. (A) Notwithstanding the provisions of Section 5, item 19, without the consent of a majority of the Greenville County legislative delegation in a regular or special called meeting of the delegation, the board, with regard to property and assets acquired subsequent to the transfer of the hospital building and land adjacent to the hospital building pursuant to Act 432 of 1947, shall not:

(1) sell, lease, or otherwise dispose of, or merge, consolidate, or transfer ten percent or more of its assets in the aggregate in any single fiscal year to a third party including, but not limited to, the three satellite hospitals in the Greenville Health Care System which, for purposes of this section, must be treated as individual entities and not as one entity;

(2) enter into a third party joint venture, partnership, alliance, network, or business or contractual relationship, or organization committing, pledging, or contributing ten percent or more of its assets over the life of the joint venture, partnership, alliance, network, or business relationship or organization;

(3) transfer or delegate its responsibilities, power, or authority to maintain, operate, or govern the property, facilities, operations, and assets under the jurisdiction of the Greenville Health System Board of Trustees to a third party.

For purposes of this subsection 'third party' means a person or entity not controlled by or affiliated with the board.

(B) Notwithstanding any other provision of law, if the board seeks consent from the Greenville County legislative delegation to take an action provided for in subsection (A), the delegation, and only the delegation, may choose to hold a referendum which may be held as a special referendum or at the time of a general election. At the time the delegation determines that a referendum shall be held, the delegation, by majority vote, also shall determine whether or not the referendum will be binding.

(C) Where the consent of a majority of the delegation is not required because of the threshold requirements of subsection (A)(1) and (2), written notice of the action must be provided in advance to the delegation."

SECTION 2. Section 4 of Act 432 of 1947, as last amended by Act 546 of 1951, is further amended to read:

"Section 4. For the purpose of operating and at all times maintaining adequate hospital facilities for the residents of Greenville County, including those residents of said County who shall reside in the City of Greenville, there is established a Board, to be known as the Greenville General Hospital Board of Trustees. Said Board shall consist of seven (7) members, all of whom shall be qualified electors. Three (3) of said members, designated for convenience as 'City however, the board, in accordance with this item, may enter into joint ventures, partnerships, alliances, networks, and business relationships and organizations with other governmental and nongovernmental Members', shall reside within the corporate limits of the City of Greenville; three (3) of said members, designated for convenience as 'County Members' shall reside within the corporate limits of Greenville County but without the corporate limits of the City of Greenville; and, the seventh member, designated for convenience as 'Member at Large', shall reside within the County of Greenville, either within or without the corporate limits of the City of Greenville. The initial membership of the Board shall consist of the following persons: R.S. Huntington, W.B. Ellis, Jr., and Sidney Bruce as City Members; John Ratteree, Allen League and Charles V. Verner as County Members; and Allen Sibley, as Member at Large, each of whom is found to have the qualifications for membership prescribed by the provisions of this Section. Of the initial Board, two (2) shall have a term ending October 1st, 1949, two shall have a term ending October 1st, 1951, and three shall have a term ending October 1st, 1953. Upon being apprised of the favorable result of the election, required by the provisions of Section 2 hereof, said Board shall meet as soon as may be practicable and organize by electing one of their number as Chairman, a second as Vice-Chairman, and a third as Secretary, whereupon, after the organization of said Board, it shall determine by lot and duration of the term of each member, in order that the requirements of this Section shall be complied with. And, upon the terms of the several members being thus determined, the Secretary of said Board shall certify the same to the Governor of South Carolina, who shall issue commissions to each member for the term required by this Act. A full transcript of the records of the initial organization shall be filed with the Clerk of Court of Greenville County, by the Secretary of said Board, and shall be recorded and indexed by that official. Subsequent terms of office of the members of said Board of Trustees shall be for a term of six (6) years. Vacancies on the Board, either among the initial appointees, or among their successors in office, occurring by reason of death, resignation, refusal to serve or otherwise, shall be for the remainder of the term of the office in which the vacancy shall have occurred. If, upon the expiration of the term of any member of the Board of Trustees, a successor shall not have been appointed, the member whose term has thus expired shall hold over until the appointment and qualification of his successor, but this provision shall not extend the term of the successor beyond the six (6) year period herein provided for. All vacancies shall be filled in the following manner: If the vacancy in office shall be for a "City Member", the remaining members of the Board, or a majority thereof, shall submit a nomination or nominations to the City Council of the City of Greenville for its approval; if the vacancy in office shall be for a "County Member", the remaining members of the Board, or a majority thereof, shall submit a nomination or nominations to the Greenville County Delegation to the General Assembly for its approval; and, if the vacancy in office shall be for the "Member at Large", the remaining members of the Board, or a majority thereof, shall submit a nomination or nominations to the City Council of the General Assembly for their approval. Upon the approval of a majority of the City Council of the City of Greenville, or a majority of the Greenville County Delegation to the General Assembly, as the case may be, or by both in the event the nomination be for the "Member at Large", then the Clerk of City Council, or the Secretary or Acting Secretary of the County Delegation, or both, as the case may be, shall certify their approval to the Governor of South Carolina, who shall commission the nominee for the term provided. By the provisions of this Section. All members of the Board shall service without compensation. Appointments and acceptances thereof shall be duly filed in the office of the Clerk of Court for Greenville County. 'PROVIDED, that from and after the effective date of this proviso, the Greenville General Hospital Board of Trustees shall be enlarged by the addition thereto of three (3) members, viz: Carl Morgan, C.S. Merriner and Waddy R. Thompson. Said additional members shall be members at large and their terms of office shall be to June 30, 1953, and their commissions shall, upon the approval of this proviso be issued by the Governor of South Carolina. They shall have the same duties, powers and authorities as the other seven (7) members of the Board. If any of these additional members shall fail to qualify or accept their appointment or in case a vacancy shall occur among their number, such vacancy or vacancies shall be filled for the unexpired term in like manner as provided above in this Section for the selection of the member at large. At the expiration of the terms of the three (3) additional members provided for in this proviso, the Board of Trustees of said Hospital shall revert to a seven (7) member Board as originally provided for in this Section.

(A) For the purpose of operating and at all times maintaining adequate hospital facilities for the residents of Greenville County, including those residents in the City of Greenville, there is established the Greenville Health System Board of Trustees.

(B)(1) If the Greenville City Council by ordinance so stipulates, the board of trustees shall consist of nine members to be appointed by the Governor pursuant to this section, all of whom must be qualified electors and whom must reside within the corporate limits of Greenville County. Of the nine members, one must reside in House District 17 or 19, one must reside in House District 18 or 21, one must reside in House District 20 or 22, one must reside in House District 23 or 24, one must reside in House District 25 or 26, and one must reside in House District 27 or 28; of these six house district members, no more than one may reside in the City of Greenville. Two members must be members at large and must reside within the corporate limits of the City of Greenville. One member must be a member at large who may reside in the county or city and must be a physician who is not principally employed in medical administration.

The board shall publicize vacancies and recommendations may be made to the board from any individual, organization, or group. The board shall submit at least two names for each vacancy on the board except that only one name is required to be submitted for the physician member. Names for all house district members and the physician member must be submitted by the board to the Greenville County legislative delegation, and names for the two members from the City of Greenville must be submitted by the board to the Greenville City Council. However, the legislative delegation may reject any or all of the names submitted to it, and the city council may reject any or all of the names submitted to it, and either may request the board to submit additional names. The county legislative delegation or the city council, as the case may be, with a quorum present and by majority vote shall select one nominee from the names submitted to it for each vacancy to submit to the Governor for appointment. All recommendations, nominations, and appointments to the board shall take into account race and gender so as to represent, to the greatest extent possible, all segments of the population of Greenville County.

(2) If the Greenville City Council does not by ordinance stipulate to the composition and nominating procedures provided for in this subsection, the board of trustees shall consist of nine members to be appointed by the Governor pursuant to this section, all of whom must be qualified electors and whom must reside within the corporate limits of Greenville County. Of the nine members, one must reside in House District 17 or 19, one must reside in House District 18 or 21, one must reside in House District 20 or 22, one must reside in House District 23 or 24, one must reside in House District 25 or 26, and one must reside in House District 27 or 28; of these six house district members, no more than one may reside in the City of Greenville. Three members must be members at large with no more than one member residing in the corporate limits of the City of Greenville. One of the at-large members must be a physician who is not principally employed in medical administration.

The board shall publicize vacancies and recommendations may be made to the board from any individual, organization, or group. The board shall submit at least two names for each vacancy on the board except that only one name is required to be submitted for the physician member. Names for all vacancies must be submitted by the board to the Greenville County legislative delegation which, with a quorum present and by majority vote, shall select one nominee for each vacancy to submit to the Governor for appointment. However, the legislative delegation may reject any or all of the names submitted to it and may request the board to submit additional names. All recommendations, nominations, and appointments to the board shall take into account race and gender so as to represent, to the greatest extent possible, all segments of the population of Greenville County.

(C) Members shall serve terms of six years and until their successors are appointed and qualify; however, members must be appointed no later than six months after a term expires. Vacancies must be filled in the manner of the original appointment for the unexpired portion of the term. No member may serve more than one consecutive full term. However, if a person is appointed to fill an unexpired portion of a term and the remainder of the term is less than four years, the person may be reappointed to one full term. Appointments must be filed in the office of the Clerk of Court for Greenville County.

(D) The board shall elect from its members a chairman, vice chairman, and secretary. Members shall serve without compensation.

(E) Notwithstanding the provisions of this subsection (B), four members must be appointed in 1997, two to fill terms expiring in 1997 and two added by the provisions of this act. Of these four appointees, one must be drawn by lot, shall serve a two-year term, and may be reappointed. When the term expires for the member whose name was drawn by lot, the board, in filling this vacancy, is not required to submit any name for consideration, other than this member's name.

(F) Members serving on this act's effective date shall continue serving until their terms in effect at the time of their appointment expire, at which time new members appointed to replace these members must be appointed pursuant to this section."

SECTION 3. Section 5 of Act 432 of 1947, as last amended by Act 1285 of 1966, is further amended by adding appropriately numbered items at the end:

"( ) To provide services and locate facilities outside Greenville County upon a finding by the board that such additional services and facilities would enhance the programs, services, or operations provided by the board;

( ) Subject to the requirements of Section 5A, to enter into joint ventures, partnerships, alliances, networks, business or contractual relationships, or business organizations with other governmental and nongovernmental health care providers and with purchasers of health care services and with others which the board finds will further the purposes of this act;

( ) To change the name of, or operate under one or more trade names, or both, of the board and the facilities it operates;

( ) To establish one or more wholly owned or controlled subsidiaries which, in its judgment, are in the best interest of the board; provided, however, that in establishing any such entity, the board shall require it to comply with all requirements of the South Carolina Freedom of Information Act;

( ) To establish, acquire, or operate additional hospital outpatient clinics, or other health care facilities which the board finds will further purposes of this act and will benefit the people of Greenville County;

( ) To exercise the powers conferred on regional health service districts by Act 490 of 1976 and Act 512 of 1984, as these may be amended from time to time."

SECTION 4. Section 1 of Act 1285 of 1966 is amended to read:

"Section 1. The name of the Greenville General Hospital Board of Trustees, as created by Act No. 432 of 1947, is hereby changed to the Greenville Hospital Health System Board of Trustees."

SECTION 5. If the County of Greenville is required to pay the City of Greenville damages under a contractual obligation arising from provisions of Section 3(1) of Act 432 of 1947, within thirty days of the county paying the city the Greenville Health System Board of Trustees shall reimburse Greenville County for the damages paid, not to exceed one million five hundred thousand dollars.

SECTION 6. If the provisions of Section 4(B)(2) of Act 432 of 1947 apply, as added by this act, then Sections 1 and 3 of Act 432 of 1947 are repealed.

SECTION 7. This act takes effect upon approval by the Governor.

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