HB 552-FN - AS AMENDED BY THE HOUSE
HOUSE BILL 552-FN
SPONSORS: Rep. Luneau, Merr. 10; Rep. Marsh, Carr. 8; Rep. Williams, Hills. 4; Sen. Feltes, Dist 15
This bill clarifies the standards for acquisition transactions involving health care charitable trusts and the review required by the director of charitable trusts.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
7Mar2019... 0475h 19-0432
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Nineteen
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Director of Charitable Trusts; Standards for Acquisition Transactions Involving Health Care Charitable Trusts and Review by Director of Charitable Trusts. Amend RSA 7:19-b, II(b) to read as follows:
(b) Due diligence has been exercised in selecting the acquirer, in engaging and considering the advice of expert assistance, in negotiating the terms and conditions of the proposed transaction, and in determining that the transaction is in the best interest of the health care charitable trust and the community which it serves, including the community's and the state of New Hampshire's access to quality and affordable physical and mental health care services;
2 Director of Charitable Trusts; Standards for Acquisition Transactions Involving Health Care Charitable Trusts and Review by Director of Charitable Trusts. Amend RSA 7:19-b, II(e)-(g) to read as follows:
(e) The assets of the health care charitable trust and any proceeds to be received on account of the transaction shall continue to be devoted to charitable purposes consistent with the charitable objects of the health care charitable trust and the needs of the community which it serves, including the community's and the state of New Hampshire's need to access quality and affordable physical and mental health care services;
(f) If the acquirer is other than another New Hampshire health care charitable trust, control of the proceeds shall be independent of the acquirer; and
(g) Reasonable public notice of the proposed transaction and its terms has been provided to the community served by the health care charitable trust, including, but not limited to, transaction documents and an analysis of how the transaction will meet the community's and the state of New Hampshire's need for access to quality and affordable physical and mental health care services, along with reasonable and timely opportunity for such community, through well-noticed public [hearing or] hearings and other similar methods, to inform the deliberations of the governing body of the health care charitable trust regarding the proposed transaction.
3 Director of Charitable Trusts; Standards for Acquisition Transactions Involving Health Care Charitable Trusts and Review by the Director of Charitable Trusts. Amend RSA 7:19-b, III and IV to read as follows:
III. Notice of a proposed acquisition transaction shall be given to the director of charitable trusts in writing to be received by the director no less than  180 days before consummation of the transaction. Such notice shall identify all parties to the transaction; shall set forth all material terms thereof, including, without limitation, any changes in control or ownership of assets, any acquisition price, any change in the capital structure and management, and any and all compensation paid or to be paid in connection therewith; shall include a copy of the minutes and other documents evidencing the decision of the governing body of the health care charitable trust, including documentation of steps taken to comply with paragraph II(g) of this section and any changes in the proposed transaction resulting therefrom, any relevant community needs assessment developed by the health care charitable trust, data and analysis demonstrating how the transaction will meet the community's and the state of New Hampshire's need for access to quality and affordable physical and mental health care services, and a copy of the acquisition agreement and financial statements of all parties; and shall include a certification signed by those members of the governing body or other person approving the acquisition on behalf of the health care charitable trust that the standards set forth in paragraph II of this section have been considered in good faith and complied with, together with such explanations and other documentation as may be necessary to demonstrate such compliance. The notice shall also include a statement from the acquirer specifying the manner in which it proposes to continue to fulfill the charitable objects of the health care charitable trust. Any information submitted pursuant to this section shall be subject to RSA 91-A.
IV.(a) Within a reasonable time, not to exceed  180 days after receipt of the notice specified in the preceding paragraph, the director shall determine compliance with the standards set forth in paragraph II of this section and shall notify the parties either that the director will take no further action with respect thereto, or that the director objects to the transaction on specified grounds. Within  90 days following receipt of the notice specified in the preceding paragraph, the director may require submittal of such additional information as may be reasonably necessary to make such a determination. In making such a determination, the director shall accept public comment and may conduct public hearings relating thereto within the time specified in this paragraph and may direct the health care charitable trust to publish notice thereof in a manner reasonably specified by the director. Such hearing may be conducted informally or in conformity with RSA 541-A, at the discretion of the director. The expenses of such public hearing shall be paid for by the parties to the proposed transaction, after consultation with the parties. Where the acquisition transaction involves assets, the fair value of which are in excess of $5,000,000, after consultation with the parties, the director may employ, at the parties' expense, expert assistance, including independent counsel and independent financial advisors that are reasonably necessary to make the determination specified in this paragraph.
(b) The director may seek input and advice from the commissioner of the department of health and human services and the insurance commissioner and may obtain from them confidential health care data and information in performing his or her functions under this section.
HB 552-FN- FISCAL NOTE
AS AMENDED BY THE HOUSE (AMENDMENT #2019-0475h)
AN ACT relative to transparency and standards for acquisition transactions in health care.
FISCAL IMPACT: [ X ] State [ ] County [ ] Local [ ] None
Estimated Increase / (Decrease)
[ X ] General [ ] Education [ ] Highway [ ] Other
This bill requires the Department of Justice's Charitable Trusts Unit to consider access to quality and affordable health care when making determinations regarding acquisition transactions involving charitable trusts. The Department states the bill may result in an indeterminable increase in state expenditures, as it does not currently have staff with the expertise to perform the data analysis necessary to fulfill the intent of the bill. The bill does allow the Department to seek input and advice from the Insurance Department and the Department of Health and Human Services when making its determination, but it is unclear the extent to which it would be able to utilize any expertise that might be available in those departments.
The Insurance Department states that by including additional elements in the acquisition review process, the bill may impact the health care cost curve. In the event of such an impact, there may be a related impact on health insurance premiums and resulting insurance premium tax revenue. The extent of any such impact is indeterminable.
The Department of Health and Human Services states the bill's impact on expenditures is indeterminable.
Departments of Justice, Insurance, and Health and Human Services
|Jan. 3, 2019||Introduced 01/03/2019 and referred to Judiciary HJ 3 P. 19|
|Jan. 24, 2019||Public Hearing: 01/24/2019 01:00 pm LOB 208|
|Feb. 6, 2019||Full Committee Work Session: 02/06/2019 01:00 pm LOB 208|
|Feb. 12, 2019||Executive Session: 02/12/2019 10:00 am LOB 208|
|March 7, 2019||Majority Committee Report: Ought to Pass with Amendment # 2019-0475h for 03/07/2019 (Vote 11-8; RC) HC 14 P. 14|
|Majority Committee Report: Ought to Pass with Amendment # 2019-0475h (Vote 11-8; RC)|
|Minority Committee Report: Inexpedient to Legislate|
|March 7, 2019||Amendment # 2019-0475h: AA VV 03/07/2019|
|March 7, 2019||Ought to Pass with Amendment 2019-0475h: MA RC 207-148 03/07/2019|
|March 14, 2019||Introduced 03/14/2019 and Referred to Judiciary; SJ 9|
|Jan. 24, 2019||House||Hearing|
|Feb. 12, 2019||House||Exec Session|
|March 7, 2019||House||Floor Vote|