(1)A covered
transaction under this part 2 that will not result in a material change in the
charitable purposes to which the assets of the hospital have been dedicated, and
will not result in a termination of the attorney general's jurisdiction over those
assets caused by a transfer of a material amount of those assets outside of the
state of Colorado, shall proceed without further review. In considering whether a
material change results from the transaction, the attorney general shall consider,
among other factors, reductions in the availability and accessibility of health-care
services in the communities served by the hospital.
(2)When a transaction covered by this part 2 will result in a material change
in the charitable purposes to which the assets of the hospital have been
Free access — add to your briefcase to read the full text and ask questions with AI
(1) A covered
transaction under this part 2 that will not result in a material change in the
charitable purposes to which the assets of the hospital have been dedicated, and
will not result in a termination of the attorney general's jurisdiction over those
assets caused by a transfer of a material amount of those assets outside of the
state of Colorado, shall proceed without further review. In considering whether a
material change results from the transaction, the attorney general shall consider,
among other factors, reductions in the availability and accessibility of health-care
services in the communities served by the hospital.
(2) When a transaction covered by this part 2 will result in a material change
in the charitable purposes to which the assets of the hospital have been dedicated,
or a termination of the attorney general's jurisdiction over the hospital assets
caused by a transfer of a material amount of those assets outside the state of
Colorado, the attorney general may exercise his or her common law authority to
assess and review or challenge the transaction as deemed appropriate by the
attorney general. If the attorney general decides to conduct an assessment or
review the following provisions shall apply to such actions of the attorney general:
(a) The attorney general shall perform a review and assessment to the
extent practicable and with due consideration to the financial circumstances of the
parties to the transaction. The attorney general is further authorized to:
(I) Hire experts, at the expense of the parties to the transaction, as similarly
provided for in section 6-19-406 (1)(b) and to accept and expend grants or
donations, or both, as similarly provided for in section 6-19-406 (1)(e);
(II) Contract and consult with other state agencies as similarly provided for in
section 6-19-406 (1)(a);
(III) Require production of material documentation, such as the proposed
agreements relating to the proposed transaction, agreements regarding collateral
transactions relating to the proposed transaction, and any reports of financial and
economic analysis that the nonprofit entity reviewed or relied on in negotiating the
proposed transaction. These documents shall be treated in the same manner as set
forth in section 6-19-404 (4).
(IV) Hold a public hearing as similarly provided for in section 6-19-404 (1).
The attorney general shall provide a written determination within the time frames
or extended time frames as similarly provided for in section 6-19-402 (2).
(b) The attorney general shall have the authority to allow a transaction that
satisfies the following criteria:
(I) The assets continue to be dedicated to charitable purposes;
(II) The directors or trustees of the parties to the transaction have not acted
unreasonably in light of the financial circumstances of the parties;
(III) The directors or trustees of the parties to the transaction have not acted
unreasonably in accommodating the affected community or communities; and
(IV) The directors or trustees of the parties to the transaction have not
breached their fiduciary duties or otherwise engaged in misconduct in such
transaction.
(c) The attorney general shall liberally construe the criteria set forth in
paragraph (b) of this subsection (2) in favor of allowing a transaction to proceed.