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S.F. No. 3715 - Steele County
Author: Senator Dick Day
Prepared by: Daniel P. McGowan, Senate Counsel (651/296-4397)
Date: March 13, 2008

Section 1, subdivision 1, authorizes Steele County to transfer to a nonprofit corporation all the property, contract rights, receivables, enterprise funds owned and used by the county for a nursing home, assisted living, and related purposes and may acquire a membership interest in the nonprofit corporation. Any lease must provide for rent payable by the corporation at least sufficient to pay the principal and interest on the outstanding bonds of the county used to finance the facilities and the lease may grant the corporation an option or require the corporation to purchase the facilities upon payment or redeem the outstanding bonds. Any sale, lease, or other transfer must be on the terms and conditions as the county board approves without competitive bidding.

Subdivision 2 provides that the articles of incorporation and bylaws of the transferee corporation may provide that the county board has the right to appoint and remove one or more of the board members of the corporation board and that specified actions be subject to the approval of the members. The corporation is a nonprofit under Minnesota Statutes, Chapter 317A, and entitled to exercise all of the powers of a nonprofit. If the county board does not have the right to appoint a majority of the governing board of the nonprofit, the provisions of Minnesota Statutes, Chapter 465, relating to the creation of corporations by political subdivisions nor other laws relating to public corporations would apply to the nonprofit corporation. The bill contains a local approval clause by the Steele County Board.

DPM/syl




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