BILL NUMBER: SB 932	CHAPTERED  07/14/03

	CHAPTER  65
	FILED WITH SECRETARY OF STATE  JULY 14, 2003
	APPROVED BY GOVERNOR  JULY 14, 2003
	PASSED THE ASSEMBLY  JUNE 26, 2003
	PASSED THE SENATE  MAY 15, 2003
	AMENDED IN SENATE  MAY 13, 2003
	AMENDED IN SENATE  APRIL 30, 2003

INTRODUCED BY   Senator Bowen

                        FEBRUARY 21, 2003

   An act to add Section 5917.5 to the Corporations Code, relating to
corporations.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 932, Bowen.  Nonprofit corporations:  health facilities.
   Existing law requires a nonprofit corporation that operates a
health facility to notify and obtain consent from the Attorney
General prior to entering into an agreement or transaction to sell or
otherwise dispose of its assets or to transfer control of a material
amount of its assets to a for-profit corporation, another nonprofit
corporation, or various other entities.
   This bill would prohibit the Attorney General from consenting to a
health facility agreement or transaction under these provisions if
the seller restricts the type or level of medical services that may
be provided at the health facility.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 5917.5 is added to the Corporations Code, to
read:
   5917.5.  The Attorney General shall not consent to a health
facility agreement or transaction pursuant to Section 5914 or Section
5920 in which the seller restricts the type or level of medical
services that may be provided at the health facility that is the
subject of the agreement or transaction.