EXPLANATION: CAPITALS INDICATE MATTER ADDE D TO EXISTING LAW .
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*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
Re–referred to: Health and Government Operations, March 5, 2022
Committee Report: Favorable with amendments
House action: Adopted
Read second time: March 13, 2022
CHAPTER ______
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
2 HOUSE BILL 1471
Article 12 – Garrett County 1
36.03. 2
(A) For the purpose of operating the Garrett County Memorial Hospital, there is 3
a Board of Governors, which shall consist of 15 9 members as follows: 4
(1) The 3 County Commissioners of Garrett County or their designees. If a 5
County Commissioner appoints a designee to the Board of Governors, the designee is not 6
subject to approval by the remaining Board members, but is subject to removal under 7
division (E) of this section. 8
(2) Three persons residing in Garrett County, 1 to be appointed by each of 9
the County Commissioners. Each appointment under this division is subject to approval by 10
majority vote of the Board of Governors at a meeting consisting of a quorum. 11
(3) The President of the Town Council of the Town of Oakland or the 12
President’s designee. If the President appoints a designee to the Board of Governors, the 13
designee is not subject to approval by the remaining Board members, but is subject to 14
removal under division (E) of this section. 15
(4) (3) One person who is on the medical staff of the Garrett County Memorial 16
Hospital and who is elected by the medical staff. The selection under this division is subject 17
to approval by majority vote of the Board of Governors at a meeting consisting of a quorum. 18
(5) (4) Seven Four at–large members who are selected for their talents, 19
abilities and interest in the affairs of the hospital in accordance with the bylaws of the 20
Board of Governors. The selection of an at–large member requires a majority of the 21
qualified votes of the Board of Governors at a meeting consisting of a quorum. An at–large 22
member may not vote for oneself, for a person who would replace the at–large member or 23
for a person who would replace another at–large member whose term expires at the same 24
time as the at–large member. The election of an at–large member requires at least 5 3 25
affirmative votes. 26
(B) The terms of members of the Board of Governors shall be as follows: 27
(1) The terms of the County Commissioners and the term of the President 28
of the Town Council of Oakland, as ex officio members, shall be coextensive with their 29
respective terms of office. 30
(2) The term of a designee of a County Commissioner or of the President of 31
the Town Council and the terms of members appointed by the County Commissioners is 2 32
years or until the current term of the elected official or officials who selected the member 33
ends, whichever occurs first. 34
(3) The term of the medical staff member is 2 years. 35
HOUSE BILL 1471 3
(4) (3) The term of an at–large member is 2 years. The terms of at–large 1
members shall be staggered so that 3 2 at–large members are elected 1 year and 4 2 2
at–large members are elected the following year. 3
(C) Terms extended: 4
(1) This division only applies if the term of a member appointed by the 5
County Commissioners or of a designee of a County Commissioner or of the President of 6
the Town Council or the term of the medical staff member ends and a replacement member 7
is not selected. 8
(2) By majority vote of the Board of Governors at a meeting consisting of a 9
quorum, a member’s term may be extended until a replacement member is selected in 10
accordance with division (A) of this section or the Board of Governors selects a replacement 11
member under division (F) of this section. 12
(D) The Board of Governors shall be and is made and constituted a body politic 13
and corporate by the name and style of the Board of Governors of the Garrett County 14
Memorial Hospital and by that name shall have perpetual succession. Subject to § 36.08, 15
the Board of Governors may sue and be sued. The Board of Governors may have a common 16
seal, and alter the same, at its pleasure. The Board of Governors shall have all the powers 17
herein granted it and all such other powers as shall be proper and necessary to operate and 18
manage the hospital and/or a public general hospital, or other health and 19
health–care–related entities and health–care–related functions, as fully as if incorporated 20
for such purposes under the provisions of the Public General Laws of Maryland. 21
(E) Removal of members: 22
(1) This division does not authorize the removal of a County Commissioner 23
or of the President of the Town Council, serving as ex officio members of the Board of 24
Governors. 25
(2) The Board of Governors shall have the power, by majority vote of all the 26
members of the Board, to remove a member from the Board for cause, including the failure 27
to satisfy any attendance requirement established in the bylaws. Removal of a member may 28
only occur at a regular meeting, after not less than 1 week’s notice to the member. 29
(F) The Board of Governors may fill a vacancy on the Board caused by expiration 30
of a term, death, resignation, expulsion or, for a member whose residence in Garrett County 31
is a membership qualification for the Board, removal from the county if the proper selecting 32
body fails to fill the vacancy within 30 days. A vacancy may be filled for the remainder of 33
the term by a majority vote of the Board of Governors at a meeting consisting of a quorum. 34
(G) The Board of Governors shall elect from among its members a Chairperson 35
and Vice Chairperson. The Board shall also elect a Secretary/Treasurer and such other 36
officers as it may determine. The Board shall meet at least 10 6 times a year and such other 37
times as it shall determine or when called by the Chairperson. 38 4 HOUSE BILL 1471
36.10. 1
(A) (1) NOTWITHSTANDING ANY P ROVISION OF THIS CHA PTER, THE 2
COUNTY COMMISSIONERS AND THE BOARD OF GOVERNORS MAY LEASE T HE 3
GARRETT COUNTY MEMORIAL HOSPITAL, OR ANY PORTION THERE OF, AND 4
TRANSFER ASSETS INCIDENTAL TO THE LE ASE IN ACCORDANCE WI TH TERMS 5
DETERMINED BY THE COUNTY COMMISSIONERS AND THE BOARD OF GOVERNORS. 6
(2) IF THE COUNTY COMMISSIONERS AND THE BOARD OF 7
GOVERNORS LEASE THE GARRETT COUNTY MEMORIAL HOSPITAL, OR ANY 8
PORTION THEREOF , IN ACCORDA NCE WITH THIS DIVISI ON: 9
(I) THE BOARD OF GOVERNORS SHALL : 10
1. CONTINUE IN EXISTENCE AS PROVIDED IN DIVIS ION 11
(B) OF THIS SECTION; 12
2. UNDER THE LEASE , HOLD TITLE TO THE AS SETS 13
OWNED BY THE HOSPITAL WHICH ARE TO BE LEASED, AS CO–LESSOR WITH THE 14
COUNTY COMMISSIONERS ; AND 15
3. CONTINUE IN EXISTENCE AS A BODY POLITIC AN D 16
CORPORATE , TO ENFORCE ITS RIGHT S AND OBLIGATIONS UN DER THE LEASE AND TO 17
RESUME OPERATION OF THE HOSPITAL IF A TERMINA TION OF THE LEASE RE SULTS 18
IN A REVERSION OF TH E HOSPITAL OPER ATIONS AND ASSETS BA CK TO THE COUNTY 19
COMMISSIONERS AND THE BOARD OF GOVERNORS; AND 20
(II) THE COUNTY COMMISSIONERS SHALL C ONTINUE TO: 21
1. HOLD TITLE TO THE REA L PROPERTY OWNED BY IT 22
AND USED FOR THE PUR POSE OF THE HOSPITAL; AND 23
2. ENFORCE THEIR RIGHTS AND OBLIGATIO NS UNDER 24
THE LEASE. 25
(3) THE COUNTY COMMISSIONERS AND THE BOARD OF GOVERNORS 26
MAY TAKE ANY FURTHER ACTIONS NECESSARY TO FULLY PERFORM UNDER A LEASE, 27
INCLUDING: 28
(I) EXECUTING ALL APPLICA BLE DOCUMENTS AND 29
TRANSACTIONS NECESSA RY TO LEASE THE REAL ESTATE AND EXISTING FACILIT IES; 30
HOUSE BILL 1471 5
(II) TRANSFERRING TITLE TO OR POSSESSION OF TAN GIBLE 1
PROPERTY AND INTANGI BLE PROPERTY ; 2
(III) PARTICIPATING IN ANY APPLICABLE REGULATOR Y 3
PROCESS; AND 4
(IV) MAKING ARRANGEMENTS F OR A DISPOSITION OF THE 5
HOSPITAL CONSISTENT W ITH THE TERMS OF A L EASE. 6
(B) (1) NOTWITHSTANDING § 36.03 OF THIS CHAPTER , IF THE COUNTY 7
COMMISSIONERS AND THE BOARD OF GOVERNORS LEASE THE GARRETT COUNTY 8
MEMORIAL HOSPITAL, OR ANY PORTION THERE OF, IN ACCORDANCE WITH T HIS 9
SECTION, THE BOARD OF GOVERNORS SHALL BE RE DUCED IN NUMBER TO C ONSIST 10
OF THREE PERSONS RES IDING IN GARRETT COUNTY, ONE TO BE APPOINTED BY 11
EACH OF THE COUNTY COMMISSIONERS . 12
(2) THE BOARD OF GOVERNORS SHALL MEET AT LEAST ONCE EACH 13
YEAR AND AT OTHER TI MES AS IT SHALL DETERMINE OR WHEN CA LLED BY THE 14
CHAIRPERSON . 15
(3) THE COUNTY COMMISSIONERS SHALL S ELECT THE MEMBERS OF 16
THE BOARD OF GOVERNORS UNDER THIS DIVISION FOR THEIR T ALENTS, ABILITIES, 17
AND INTEREST IN THE AFFAIRS OF THE GARRETT COUNTY MEMORIAL HOSPITAL. 18
(4) A MEMBER OF THE BOARD OF GOVERNORS UNDER THIS DIVISION 19
MAY NOT SERVE ON THE BOARD OF DIRECTORS OF THE LESS EE. 20
(5) THE TERM OF A MEMBER APPOINTED BY THE COUNTY 21
COMMISSIONERS UNDER T HIS DIVISION IS 2 YEARS OR UNTIL THE C URRENT TERM 22
OF THE ELECTED OFFIC IAL OR OFFICIALS WHO SEL ECTED THE MEMBER END S, 23
WHICHEVER OCCURS FIR ST. 24
(6) THE BOARD OF GOVERNORS SHALL ELECT FROM AMONG ITS 25
MEMBERS A CHAIRPERSON , A VICE CHAIRPERSON , AND A SECRETARY/TREASURER. 26
(7) THE BOARD OF GOVERNORS MAY REMOVE A MEMBER OR FILL A 27
VACANCY ON THE BOARD IN ACCORDANCE W ITH § 36.03(E) AND (F) OF THIS 28
CHAPTER. 29
(8) THE COUNTY COMMISSIONERS , BY RESOLUTION , SHALL ADOPT 30
PROCEDURES FOR THE T RANSITION OF THE MEM BERSHIP AND DUTIES O F THE 31
BOARD OF GOVERNORS NECESSITATE D BY THE ENTERING IN TO, OR TERMINATION 32
OF, A LEASE UNDER THIS S ECTION. 33
6 HOUSE BILL 1471
(C) IN ANY LEASE AUTHORIZ ED BY THIS SECTION , TRANSFERS OF TITLE T O 1
OR POSSESSION OF REA L ESTATE, TANGIBLE PROPERTY , OR INTANGIBLE PROPER TY 2
OWNED BY THE COUNTY COMMISSIONERS OR THE BOARD OF GOVERNORS AND 3
USED IN THE OPERATION OF T HE HOSPITAL, INCLUDING MEMBERSHIP OR EQUITY 4
INTERESTS IN SUBSIDI ARY OR AFFILIATED EN TITIES, ARE AUTHORIZED AND 5
EXEMPT FROM PUBLIC B IDDING REQUIREMENTS UNDER § 30.21 OF THIS ARTICLE. 6
SECTION 2. AND BE IT FURTHER ENACTED, That this Act is an emergency 7
measure, is necessary for the immediate preservation of the public health or safety, has 8
been passed by a yea and nay vote supported by three–fifths of all the members elected to 9
each of the two Houses of the General Assembly, and shall take effect from the date it is 10
enacted. 11
Approved:
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Governor.
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Speaker of the House of Delegates.
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President of the Senate.