EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb1471*
HOUSE BILL 1471
L2 EMERGENCY BILL 2lr3025
CF SB 978
By: Delegate Beitzel
Introduced and read first time: February 26, 2022
Assigned to: Rules and Executive Nominations
A BILL ENTITLED
AN ACT concerning 1
Garrett County Memorial Hospital – Lease Authorization and Alterations to 2
Board of Governors 3
FOR the purpose of authorizing the County Commissioners of Garrett County and the 4
Board of Governors of the Garrett County Memorial Hospital to lease the hospital or 5
certain portions of the hospital under certain circumstances; providing for 6
alterations to the Board of Governors under certain circumstances; and generally 7
relating to the Garrett County Memorial Hospital. 8
BY repealing and reenacting, without amendments, 9
The Public Local Laws of Garrett County 10
Section 36.03 11
Article 12 – Public Local Laws of Maryland 12
(2005 Edition and 2018 Supplement, as amended) 13
BY adding to 14
The Public Local Laws of Garrett County 15
Section 36.10 16
Article 12 – Public Local Laws of Maryland 17
(2005 Edition and 2018 Supplement, as amended) 18
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 19
That the Laws of Maryland read as follows: 20
Article 12 – Garrett County 21
36.03. 22
(A) For the purpose of operating the Garrett County Memorial Hospital, there is 23
a Board of Governors, which shall consist of 15 members as follows: 24
2 HOUSE BILL 1471
(1) The 3 County Commissioners of Garrett County or their designees. If a 1
County Commissioner appoints a designee to the Board of Governors, the designee is not 2
subject to approval by the remaining Board members, but is subject to removal under 3
division (E) of this section. 4
(2) Three persons residing in Garrett County, 1 to be appointed by each of 5
the County Commissioners. Each appointment under this division is subject to approval by 6
majority vote of the Board of Governors at a meeting consisting of a quorum. 7
(3) The President of the Town Council of the Town of Oakland or the 8
President’s designee. If the President appoints a designee to the Board of Governors, the 9
designee is not subject to approval by the remaining Board members, but is subject to 10
removal under division (E) of this section. 11
(4) One person who is on the medical staff of the Garrett County Memorial 12
Hospital and who is elected by the medical staff. The selection under this division is subject 13
to approval by majority vote of the Board of Governors at a meeting consisting of a quorum. 14
(5) Seven at–large members who are selected for their talents, abilities and 15
interest in the affairs of the hospital in accordance with the bylaws of the Board of 16
Governors. The selection of an at–large member requires a majority of the qualified votes 17
of the Board of Governors at a meeting consisting of a quorum. An at–large member may 18
not vote for oneself, for a person who would replace the at–large member or for a person 19
who would replace another at–large member whose term expires at the same time as the 20
at–large member. The election of an at–large member requires at least 5 affirmative votes. 21
(B) The terms of members of the Board of Governors shall be as follows: 22
(1) The terms of the County Commissioners and the term of the President 23
of the Town Council of Oakland, as ex officio members, shall be coextensive with their 24
respective terms of office. 25
(2) The term of a designee of a County Commissioner or of the President of 26
the Town Council and the terms of members appointed by the County Commissioners is 2 27
years or until the current term of the elected official or officials who selected the member 28
ends, whichever occurs first. 29
(3) The term of the medical staff member is 2 years. 30
(4) The term of an at–large member is 2 years. The terms of at–large 31
members shall be staggered so that 3 at–large members are elected 1 year and 4 at–large 32
members are elected the following year. 33
(C) Terms extended: 34
(1) This division only applies if the term of a member appointed by the 35
County Commissioners or of a designee of a County Commissioner or of the President of 36 HOUSE BILL 1471 3
the Town Council or the term of the medical staff member ends and a replacement member 1
is not selected. 2
(2) By majority vote of the Board of Governors at a meeting consisting of a 3
quorum, a member’s term may be extended until a replacement member is selected in 4
accordance with division (A) of this section or the Board of Governors selects a replacement 5
member under division (F) of this section. 6
(D) The Board of Governors shall be and is made and constituted a body politic 7
and corporate by the name and style of the Board of Governors of the Garrett County 8
Memorial Hospital and by that name shall have perpetual succession. Subject to § 36.08, 9
the Board of Governors may sue and be sued. The Board of Governors may have a common 10
seal, and alter the same, at its pleasure. The Board of Governors shall have all the powers 11
herein granted it and all such other powers as shall be proper and necessary to operate and 12
manage the hospital and/or a public general hospital, or other health and 13
health–care–related entities and health–care–related functions, as fully as if incorporated 14
for such purposes under the provisions of the Public General Laws of Maryland. 15
(E) Removal of members: 16
(1) This division does not authorize the removal of a County Commissioner 17
or of the President of the Town Council, serving as ex officio members of the Board of 18
Governors. 19
(2) The Board of Governors shall have the power, by majority vote of all the 20
members of the Board, to remove a member from the Board for cause, including the failure 21
to satisfy any attendance requirement established in the bylaws. Removal of a member may 22
only occur at a regular meeting, after not less than 1 week’s notice to the member. 23
(F) The Board of Governors may fill a vacancy on the Board caused by expiration 24
of a term, death, resignation, expulsion or, for a member whose residence in Garrett County 25
is a membership qualification for the Board, removal from the county if the proper selecting 26
body fails to fill the vacancy within 30 days. A vacancy may be filled for the remainder of 27
the term by a majority vote of the Board of Governors at a meeting consisting of a quorum. 28
(G) The Board of Governors shall elect from among its members a Chairperson 29
and Vice Chairperson. The Board shall also elect a Secretary/Treasurer and such other 30
officers as it may determine. The Board shall meet at least 10 times a year and such other 31
times as it shall determine or when called by the Chairperson. 32
36.10. 33
(A) (1) NOTWITHSTANDING ANY P ROVISION OF THIS CHAPTER, THE 34
COUNTY COMMISSIONERS AND THE BOARD OF GOVERNORS MAY LEASE T HE 35
GARRETT COUNTY MEMORIAL HOSPITAL, OR ANY PORTION THERE OF, AND 36
TRANSFER ASSETS INCI DENTAL TO THE LEASE IN ACCORDANCE WITH T ERMS 37 4 HOUSE BILL 1471
DETERMINED BY THE COUNTY COMMISSIONERS AND THE BOARD OF GOVERNORS. 1
(2) IF THE COUNTY COMMISSIONERS AND THE BOARD OF 2
GOVERNORS LEASE THE GARRETT COUNTY MEMORIAL HOSPITAL, OR ANY 3
PORTION THEREOF , IN ACCORDANCE WITH T HIS DIVISION: 4
(I) THE BOARD OF GOVERNORS SHALL : 5
1. CONTINUE IN EXISTENCE AS PROVIDED IN DIVISION 6
(B) OF THIS SECTION; 7
2. UNDER THE LEASE , HOLD TITLE TO THE AS SETS 8
OWNED BY THE HOSPITAL WHICH ARE TO BE LEASED, AS CO–LESSOR WITH THE 9
COUNTY COMMISSIONERS ; AND 10
3. CONTINUE IN EXISTENCE AS A BODY POLITIC AN D 11
CORPORATE , TO ENFORCE ITS RIGHTS AND OBLIGATIO NS UNDER THE LEASE A ND TO 12
RESUME OPERATION OF THE HOSPITAL IF A TERMINA TION OF THE LEASE RE SULTS 13
IN A REVERSION OF TH E HOSPITAL OPERATIONS A ND ASSETS BACK TO TH E COUNTY 14
COMMISSIONERS AND THE BOARD OF GOVERNORS; AND 15
(II) THE COUNTY COMMISSIONERS SHALL C ONTINUE TO: 16
1. HOLD TITLE TO THE REA L PROPERTY OWNED BY IT 17
AND USED FOR THE PUR POSE OF THE HOSPITAL; AND 18
2. ENFORCE THEIR RIGHTS AND OBLIGATIONS UNDE R 19
THE LEASE. 20
(3) THE COUNTY COMMISSIONERS AND THE BOARD OF GOVERNORS 21
MAY TAKE ANY FURTHER ACT IONS NECESSARY TO FU LLY PERFORM UNDER A LEASE, 22
INCLUDING: 23
(I) EXECUTING ALL APPLICA BLE DOCUMENTS AND 24
TRANSACTIONS NECESSA RY TO LEASE THE REAL ESTATE AND EXISTING FACILITIES; 25
(II) TRANSFERRING TITLE TO OR POSSESSION OF TAN GIBLE 26
PROPERTY AND INTANGIB LE PROPERTY; 27
(III) PARTICIPATING IN ANY APPLICABLE REGULATOR Y 28
PROCESS; AND 29
(IV) MAKING ARRANGEMENTS F OR A DISPOSITION OF THE 30 HOUSE BILL 1471 5
HOSPITAL CONSISTENT W ITH THE TERMS OF A L EASE. 1
(B) (1) NOTWITHSTANDING § 36.03 OF THIS CHAPTER , IF THE COUNTY 2
COMMISSIONERS AND THE BOARD OF GOVERNORS LEASE THE GARRETT COUNTY 3
MEMORIAL HOSPITAL, OR ANY PORTION THERE OF, IN ACCORDANCE WITH T HIS 4
SECTION, THE BOARD OF GOVERNORS SHALL BE RE DUCED IN NUMBER TO C ONSIST 5
OF THREE PERSONS RES IDING IN GARRETT COUNTY, ONE TO BE APPOINTED BY 6
EACH OF THE COUNTY COMMISSIONERS . 7
(2) THE BOARD OF GOVERNORS SHALL MEET AT LEAST ONCE EACH 8
YEAR AND AT OTHER TI MES AS IT SHALL DETE RMINE OR WHEN CALLED BY THE 9
CHAIRPERSON . 10
(3) THE COUNTY COMMISSIONERS SHALL S ELECT THE MEMBERS OF 11
THE BOARD OF GOVERNORS UNDER THIS DIVISION FOR THEIR T ALENTS, ABILITIES, 12
AND INTEREST IN THE AFFAIRS OF THE GARRETT COUNTY MEMORIAL HOSPITAL. 13
(4) A MEMBER OF THE BOARD OF GOVERNORS UNDER THIS DIVISION 14
MAY NOT SERVE ON THE BOARD OF DIRECTORS OF THE LE SSEE. 15
(5) THE TERM OF A MEMBER APPOINTED BY THE COUNTY 16
COMMISSIONERS UNDER T HIS DIVISION IS 2 YEARS OR UNTIL THE C URRENT TERM 17
OF THE ELECTED OFFIC IAL OR OFFICIALS WHO SELECTED THE MEMBER ENDS, 18
WHICHEVER OCCURS FIR ST. 19
(6) THE BOARD OF GOVERNORS SHALL ELECT FROM AMONG ITS 20
MEMBERS A CHAIRPERSON , A VICE CHAIRPERSON , AND A SECRETARY/TREASURER. 21
(7) THE BOARD OF GOVERNORS MAY REMOVE A MEMBER OR FILL A 22
VACANCY ON THE BOARD IN ACCORDANCE W ITH § 36.03(E) AND (F) OF THIS 23
CHAPTER. 24
(8) THE COUNTY COMMISSIONE RS, BY RESOLUTION , SHALL ADOPT 25
PROCEDURES FOR THE T RANSITION OF THE MEM BERSHIP AND DUTIES O F THE 26
BOARD OF GOVERNORS NECESSITATE D BY THE ENTERING IN TO, OR TERMINATION 27
OF, A LEASE UNDER THIS S ECTION. 28
(C) IN ANY LEASE AUTHORIZ ED BY THIS SECTION , TRANSFERS O F TITLE TO 29
OR POSSESSION OF REA L ESTATE, TANGIBLE PROPERTY , OR INTANGIBLE PROPER TY 30
OWNED BY THE COUNTY COMMISSIONERS OR THE BOARD OF GOVERNORS AND 31
USED IN THE OPERATIO N OF THE HOSPITAL, INCLUDING MEMBERSHIP OR EQUITY 32
INTERESTS IN SUBSIDI ARY OR AFFILIATED E NTITIES, ARE AUTHORIZED AND 33
EXEMPT FROM PUBLIC B IDDING REQUIREMENTS UNDER § 30.21 OF THIS ARTICLE. 34 6 HOUSE BILL 1471
SECTION 2. AND BE IT FURTHER ENACTED, That this Act is an emergency 1
measure, is necessary for the immediate preservation of the public health or safety, has 2
been passed by a yea and nay vote supported by three–fifths of all the members elected to 3
each of the two Houses of the General Assembly, and shall take effect from the date it is 4
enacted. 5