The original instrument was prepared by Martha Hess. The following digest, which
does not constitute a part of the legislative instrument, was prepared by Jeanne
Johnston.
DIGEST
SB 466 Reengrossed 2016 Regular Session Hewitt
Present law sets forth the hospitals managed by the Louisiana State University Board of Supervisors.
Proposed law retains present law.
Proposed law provides that in the event the LSU Board of Supervisors determines it is in the best
interest of the state, the legislature has authorized the closure of a hospital, and the building is no
longer being utilized for the provision of health care services, or receives an inquiry from a
financially viable party regarding the purchase of a hospital listed in present law, the board shall
notify the commissioner of administration within five business days that it is contemplating the
option of selling the property or is in receipt of such an inquiry. Provides that the board shall
participate in and cooperate with the commissioner in reviewing the benefits and consequences of
selling the property.
Proposed law provides the review by the board and the commissioner shall include, at a minimum,
an assessment of the impact a sale of the property may have on the provision of health care in the
region, the impact on graduate medical education, any contractual or operational issues with other
parties that need to be addressed prior to executing a contract of sale, purchase agreement, or other
type of agreement, and a cost-benefit analysis addressing the potential short-term and long-term
financial advantages and disadvantages of proceeding with the sale. Proposed law further provides
that the commissioner shall also obtain fair market value appraisals from up to three Louisiana
certified appraisers to ascertain the current value of the property. A report of such information and
the recommendations of the board and the commissioner shall be submitted to the JLCB immediately
upon its completion.
Proposed law provides that prior to taking any action which would result or is expected to result in
the sale of the property as provided by law, the commissioner shall notify the JLCB in writing that
the board and commissioner are recommending that the state proceed with such a sale. The
commissioner shall instruct the board to contact the committee to request preliminary authorization
to pursue the sale of the property based upon the positive outcome of the review provided for in
proposed law. The committee shall consider the board's request no less than thirty days after the date
that it is submitted to the committee. If the board's request is approved by the committee, it shall be
submitted to the legislature for approval by a majority vote of the elected members of each house of
the legislature. If the legislature is not in session, approval of the legislature may be obtained in
accordance with the procedures for a mail ballot.
Proposed law further provides that notwithstanding the provisions of present law regarding the
procedures for the sale of state land to the contrary, upon receipt of the approval by the committee and legislature to proceed with the exploration of the sale of the property, the board shall work with
the commissioner to develop a solicitation for offers to sell the property, fixing the minimum price
and terms of sale to be made with reference to the property. The solicitation shall be developed such
that it is within the parameters approved by the committee and the legislature. Upon completion of
the solicitation, the board shall advertise the solicitation for offers electronically for forty-five days
and shall also advertise in the newspapers in general circulation in the municipality where the
property is located and in major metropolitan areas across the state for a minimum of three times in
forty-five days. During this period, the board and the commissioner shall resolve any outstanding
contractual or operational issues with other parties that may affect the sale of the property.
Proposed law provides that the board and the commissioner shall review the offers and negotiate
with the respondents for a period of no less than thirty days. If the board and commissioner agree that
an acceptable offer has been received, then the board shall submit the proposed agreement to the
committee for its review and approval. The agreement shall be within the preliminary parameters
approved by the committee and the legislature. The committee shall consider the proposed agreement
not less than thirty days after submission of the agreement. No agreement shall be officially
confected prior to approval of the committee.
Proposed law provides that nothing in proposed law nor any approval of the committee or legislature
relative to a proposed sale, shall be construed as authorizing the board to close a hospital or an
emergency room or absolving the board of its responsibilities for any medical center as provided by
law.
Proposed law provides that it shall terminate as of December 31, 2019.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Adds R.S. 17:1519.2(C))
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Finance to the original bill
1. Revises procedure to provide that if the LSU Board of Supervisors receives an
inquiry from a viable party regarding the purchase of a hospital or any asset of one
of the medical centers listed in present law.
2. Revises procedure to provide for the board to contact the commissioner of
administration for a review of the inquiry, after which a report is to be submitted to
the Joint Legislative Committee on the Budget with a recommendation.
3. Revises procedure to require JLCB is to review and consider the board's request and
if approved, the request is to be submitted to the legislature for approval by a
majority vote or by mail ballot during the interim. 4. Revises procedure to provide that upon approval of the legislature, the board and
commissioner shall develop a solicitation for offers to sell the property, advertise the
solicitation, receive offers, select the winning offer, and negotiate any outstanding
terms, then the proposed agreement shall be submitted to the committee for review
and approval.
5. Provides that proposed law shall not be construed as authorizing the board to close
a hospital or an emergency room or absolving the board of its responsibilities for any
medical center.
6. Changes termination date of proposed law from June 30, 2020 to December 31, 2019.
Senate Floor Amendments to engrossed bill
1. Makes technical corrections.
2. Deletes the sale of medical center assets from provisions of proposed law.
3. Specifies that, to be considered, an inquiry to purchase a hospital must be made by
a financially viable party.
4. Requires the LSU board to notify the commissioner of administration if the board is
contemplating selling a hospital that has been closed, with legislative approval, and
the building is no longer being used to provide health care services. Further requires
the board to participate in and cooperate with the commissioner of administration in
reviewing the benefits and consequences of selling the property.
5. Requires that the review conducted by the board and the commissioner of
administration include the impact on graduate medical education.