Section 32126 Of Article 2. Powers From California Health And Safety Code >> Division 23. >> Chapter 2. >> Article 2.
32126
. (a) The board of directors may provide for the operation and
maintenance through tenants of the whole or any part of any hospital
acquired or constructed by it pursuant to this division, and for
that purpose may enter into any lease agreement that it believes will
best serve the interest of the district. A lease entered into with
one or more corporations for the operation of 50 percent or more of
the district's hospital, or that is part of, or contingent upon, a
transfer of 50 percent or more of the district's assets, in sum or by
increment, as described in subdivision (p) of Section 32121, shall
be subject to the requirements of subdivision (p) of Section 32121.
Any lease for the operation of any hospital shall require the tenant
or lessee to conform to, and abide by, Section 32128. No lease for
the operation of an entire hospital shall run for a term in excess of
30 years. No lease for the operation of less than an entire hospital
shall run for a term in excess of 10 years.
(b) Notwithstanding any other provision of law, a sublease, an
assignment of an existing lease, or the release of a tenant or lessee
from obligations under an existing lease in connection with an
assignment of an existing lease shall not be subject to the
requirements of subdivision (p) of Section 32121 so long as all of
the following conditions are met:
(1) The sublease or assignment of the existing lease otherwise
remains in compliance with subdivision (a).
(2) The district board determines that the total consideration
that the district shall receive following the assignment or sublease,
or as a result thereof, taking into account all monetary and other
tangible and intangible consideration to be received by the district
including, without limitation, all benefits to the communities served
by the district, is no less than the total consideration that the
district would have received under the existing lease.
(3) The existing lease was entered into on or before July 1, 1984,
upon approval of the board of directors following solicitation and
review of no less than five offers from prospective tenants.
(4) If substantial amendments are made to an existing lease in
connection with the sublease or assignment of that existing lease,
the amendments shall be fully discussed in advance of the district
board's decision to adopt the amendments in at least two properly
noticed open and public meetings in compliance with Section 32106 and
the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of
Part 1 of Division 2 of Title 5 of the Government Code).
(c) A health care district shall report to the Attorney General,
within 30 days of any lease of district assets to one or more
corporations, the type of transaction and the entity to whom the
assets were leased.