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The COMMITTEE OF CONFERENCE, to whom was referred:
H. 3915 -- Education and Public Works Committee: A BILL TO AMEND SECTION 59-103-10, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE STATE COMMISSION ON HIGHER EDUCATION, SO AS TO REVISE THE MEMBERSHIP OF THE COMMISSION AND THE MANNER IN WHICH THE MEMBERS ARE SELECTED; TO ADD SECTION 59-103-45 SO AS TO PROVIDE THAT THE COMMISSION ON HIGHER EDUCATION SHALL ESTABLISH PROCEDURES FOR THE TRANSFERABILITY OF UNDERGRADUATE COURSES BETWEEN TWO-YEAR AND FOUR-YEAR INSTITUTIONS, COORDINATE WITH THE STATE BOARD OF EDUCATION THE APPROVAL OF CERTAIN SECONDARY EDUCATION COURSES,
That the same do pass with the following amendments:
Amend the bill, as and if amended, by striking all after the enacting words and inserting therein the following:
SECTION 1. Chapter 7, Title 44 of the 1976 Code is amended by adding:
Section 44-7-3110. The General Assembly authorizes and grants to the Board of Trustees of the Medical University of South Carolina authority to enter into reasonable agreements to transfer the management and operations of the Medical University Hospital to one or more private operators, including authority to:
(A) Lease certain Medical University Hospital land, together with all easements, rights, privileges, and appurtenances appertaining thereto, and
(B) Sell furniture, fixtures, equipment, accounts receivable, and other incidental assets associated with or employed in the operation of the Medical University Hospital on the land.
Provided, however, that the following terms and conditions must be observed and included and accepted in the agreements:
(1) The term of the lease and any extensions may not exceed a total aggregate period of thirty years.
(2) The leased premises may be used only for the operation of hospitals and clinics, and for other uses reasonably related to hospitals, clinics, and healthcare, provided that those operations and uses are consistent with all Joint Commission on Accreditation and Healthcare Organizations standards.
(3) Any private operator or operators chosen by the Medical University of South Carolina's Board of Trustees to operate the Medical University Hospital shall not transfer, sell, lease, or assign control of the Medical University Hospital, or of the entity operating or controlling the Medical University Hospital or of any of its related real estate or other assets, to any other private operator without the prior express written approval of the Medical University of South Carolina Board of Trustees and without compliance with the same terms and conditions provided in this article. Prior to any such transfer, sale, lease, or assignment of control, the Medical University of South Carolina shall have the right of first refusal and be given sufficient time to consider and decide whether to exercise the right of first refusal.
(4) Any private operator or operators chosen by the Medical University of South Carolina's Board of Trustees to operate the Medical University Hospital must provide indigent care in the same manner as is being provided by the Medical University of South Carolina through the operation of this Medical University Hospital and its clinical programs.
(5) The Medical University of South Carolina and the State of South Carolina must be protected from any tort liability arising from the private operation of the Medical University Hospital by the private operator, unless and except to the extent the tort liability is caused by or attributed to the Medical University of South Carolina or the State of South Carolina, or both. The agreement will require the operator of the Medical University Hospital to acquire and keep in effect sufficient insurance policies to provide a reasonable amount and type of coverage and naming the Medical University of South Carolina as an additional insured.
(7) The proceeds from this lease and from the sale of these assets must be used for the retirement of outstanding indebtedness incurred to finance Medical University Hospital facilities, and all other revenues and payments received from or in connection with this lease or sale must be dedicated solely for use of the Medical University of South Carolina's business and operations as the Board of Trustees of the Medical University of South Carolina may direct, subject to review by the appropriate bodies of state governments.
(8) All agreements, the manner in which all agreements are made and the implementation of all agreements must comply with all applicable laws.
(9) Access for any person or group to use the services of the Medical University Hospital and clinical services shall not be limited, restricted, denied, or allowed in a discriminatory manner that is prohibited by law; nor shall such access be denied based on lack of participation or membership in a particular health plan or network.
(10) The Medical University of South Carolina shall have access at all times to all records of all patients treated at the Medical University Hospital, and all patients shall have access at all times to their own records.
Provided, further, that the lease and sale may not be finalized until the Budget and Control Board is satisfied that the consideration paid by the private operator or operators for the agreements authorized by this article reflects a fair and reasonable value to the State of South Carolina, based upon either the net book value of the hospital, capitalization of income from operation of the hospital over a period of years, the net present value of future cash flow of the hospital, a direct comparison to a comparable transaction, or some other financially sound and general practiced method of business evaluation.
The Budget and Control Board is directed to cause the lease and purchase agreements regarding the Medical University Hospital to contain provisions requiring and insuring compliance with the terms and conditions stated above. To assist the board in performing this function, the Medical University of South Carolina is required to provide, at its expense, any information, studies, evaluations, agreements, reports, or other data requested by the Budget and Control Board, including any such items with regard to University Medical Associates or any of its employees, officers, and affiliates. The approval requirement for the
No lease or other agreement pursuant to this article shall be valid unless and until the provisions of this article have been complied with fully and the Budget and Control Board has certified that the provisions of this article have been complied with fully.
Section 44-7-3120. The legal description of the land and improvements thereon referenced in Section 44-7-3110(A) is as follows:
All that certain property and parcels of land in Charleston County together with improvements thereon lying on the north side of Albert B. Sabin Street, between Ashley Avenue and Jonathan Lucas Street consisting of the MUSC Teaching Hospital and the MUSC Children's Hospital but saving and excepting the Clinical Sciences Building and the Storm Eye Institute;
Together with a rectangular parcel located on the south side of Albert B. Sabin Street containing certain fuel oil tanks;
Together with the Psychiatric Institute located on the west side of President Street and the playground area located to the rear of such institute but saving and excepting the auditorium, the lobby area, and the University Services Building.
The above referenced properties are as shown on a survey prepared by Forsburg Engineering & Surveying, Inc., to be recorded and reference is made thereto for a description of the metes and bounds thereof.
Section 44-7-3130. Notwithstanding any other provision of law to the contrary, University Medical Associates (UMA) is a public body as defined by Chapter 4, Title 30 (the Freedom of Information Act) for purposes of the act and the provisions of the act apply to records maintained by UMA."
SECTION 2. Upon approval of the proposed sale or lease of MUSC's facilities and assets to HCA, HCA shall take the steps necessary to create an employee grievance committee for the review of all employee disciplinary actions and terminations by HCA. The grievance procedure must provide that the final decision in any grievance involving a former MUSC employee rests with the board of directors of MUSC and that the final decision in grievances involving HCA employees rests with the official designated by HCA.
SECTION 3. Notwithstanding any other provision of law, the Budget and Control Board must consult the South Carolina Commission
SECTION 4. Notwithstanding any other provision of law to the contrary, upon approval of the proposed lease and sale of Medical University of South Carolina facilities and assets, no one who is currently an employee of MUSC or UMA may personally profit from the transaction by accepting compensation or other financial incentives from the purchasing and/or leasing company if that individual played a substantial role in the negotiation process. As used in this section "substantial role" means a role where one is providing direct advice to the members of a negotiating team or being a member of a negotiating team.
SECTION 5. No condition of any lease or agreement shall restrict MUSC employees to shared participation with one company's health care third party providers.
SECTION 6. At the time of default by Columbia HCA or end of the lease, MUSC shall not be required to purchase the Medical Center as a going concern but rather at the appraised value of the tangible assets owned by the lessee as personal property inventory.
SECTION 7. Any discontinuation or transfer of any inpatient clinical service offered at the Medical Center shall be with the prior written consent of the MUSC Board of Trustees.
SECTION 8. All agreements between University Medical Associates and any of its servants, agents, and subsidiaries and partners are subject to review and approval by the Board of Trustees of the Medical University of South Carolina and the terms of any such agreements shall not conflict with the terms and conditions of the lease authorized by this section.
SECTION 9. Notwithstanding any other provision of law to the contrary, including any provision of the Annual General Appropriation Act for FY 1996-97, members of the General Assembly must pay any co-payment or deductible as may be applicable for receiving services at a hospital facility in this State whether or not their services are provided by the MUSC hospital or its successor in interest.
SECTION 10. Notwithstanding any other provision of law to the contrary, upon approval of the proposed sale or lease of MUSC's facilities and assets, MUSC must maintain the current level of services currently offered to indigent patients at Charleston Memorial Hospital unless the MUSC Board of Trustees approves otherwise.
SECTION 11. Notwithstanding any other provision of law to the contrary, any financial obligation under the agreements entered into by a subsidiary corporation must be unconditionally guaranteed by the ultimate parent corporation of the purchaser/tenant.
Amend title to conform.
/s/J. Verne Smith .......... /s/John G. Felder
/s/Thomas L. Moore .......... /s/Ronald C. Fulmer
/s/Robert Ford .......... Lynn Seithel
On Part of the Senate. .......... On Part of the House.
Rep. FELDER explained the Conference Report.
Rep. LANFORD spoke against the Conference Report.
Rep. FELDER spoke in favor of the Conference Report.
Rep. SEITHEL spoke against the Conference Report.
Rep. SEITHEL moved that the House do now adjourn.
Rep. YOUNG-BRICKELL demanded the yeas and nays, which were taken resulting as follows:
Those who voted in the affirmative are:
Breeland Dantzler Davenport Delleney Hallman Kirsh Koon Law Lloyd McCraw Rogers Seithel Whipper, L. Whipper, S. Wright
Those who voted in the negative are:
Allison Baxley Boan Brown, H. Cain Cato Cooper Cotty Easterday Felder Fulmer Gamble Harrell Harvin Hodges Jennings Kelley Keyserling Kinon Knotts Limbaugh McKay McTeer Meacham Rice Richardson Riser Robinson Sandifer Sharpe Simrill Smith, D. Smith, R. Stille Stuart Trotter Vaughn Waldrop Wells
Whatley Witherspoon Wofford Young-Brickell
So, the House refused to adjourn.
The question then recurred to the adoption of the Conference Report.
Rep. SEITHEL demanded the yeas and nays, which were taken resulting as follows:
Those who voted in the affirmative are:
Allison Baxley Boan Brown, H. Brown, J. Cain Cato Cromer Dantzler Felder Fulmer Gamble Hallman Harrell Harvin Hodges Jennings Kelley Keyserling Kinon Knotts Koon Law Limbaugh McKay McTeer Meacham Quinn Rice Richardson Riser Robinson Rogers Sharpe Simrill Smith, D. Smith, R. Stille Stuart Tripp Vaughn Walker Wells Whatley Whipper, L. Whipper, S. Wilkins Witherspoon Wofford Young Young-Brickell
Those who voted in the negative are:
Breeland Cooper Davenport Delleney Easterday Howard Kirsh Lanford Lloyd Loftis McCraw Moody-Lawrence Sandifer Scott Seithel
Shissias Trotter Waldrop Wright
So, the Conference Report was adopted and a message was ordered sent to the Senate accordingly.
The following was received.
Columbia, S.C., May 23, 1996
Mr. Speaker and Members of the House:
The Senate respectfully informs your Honorable Body that it has reconsidered the report of the Committee of Free Conference and the granting of Free Conference Powers:
H. 3961 -- Reps. Wilkins, Harrison,D.Smith, Huff, Cromer, Fulmer, Wells, Meacham, Cotty, Witherspoon, Wright, Tripp, H. Brown, Sharpe, Sandifer, Cain, Fair, Rice, Fleming, Mason, A. Young, Kelley, Herdklotz, Seithel, Riser, Haskins, Simrill, Keegan, Trotter, Hutson, R. Smith, Marchbanks, Harrell, Stuart, Klauber, Waldrop and Davenport: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 6 TO TITLE 14 SO AS TO CREATE THE JUDICIAL MERIT SELECTION COMMISSION AND TO ESTABLISH ITS POWERS, DUTIES, AND FUNCTIONS; TO AMEND SECTIONS 1-23-510, 1-23-520, 1-23-525, 1-23-530, AND 1-23-550, RELATING TO JUDGES OF THE ADMINISTRATIVE LAW JUDGE DIVISION, SO AS TO PROVIDE THAT THESE JUDGES MUST BE APPOINTED BY THE GOVERNOR FROM A LIST OF NOMINEES SUBMITTED BY THE JUDICIAL MERIT SELECTION COMMISSION; 2-19-10, RELATING TO THE JOINT LEGISLATIVE COMMITTEE TO REVIEW CANDIDATES, SO AS TO DELETE PROVISIONS ON ELECTING THE MEMBERS OF THE JUDICIARY; 14-1-215, AS AMENDED, RELATING TO RETIRED JUDGES OR JUSTICES PRESIDING IN CERTAIN COURTS, SO AS TO FURTHER PROVIDE FOR THE MANNER AND CONDITIONS OF THIS SERVICE; 14-3-10, RELATING TO THE COMPOSITION OF THE SUPREME COURT, SO AS TO PROVIDE THAT THE JUSTICES THEREOF SHALL BE APPOINTED BY THE GOVERNOR IN THE MANNER PROVIDED ABOVE INSTEAD OF ELECTED BY THE GENERAL ASSEMBLY; 14-3-20, RELATING TO THE
Received as information.
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