Oklahoma § 19-789 - Board of control - Lease to public trust or other

§ 19-789. Board of control - Lease to public trust or other

authorized organization.

A. It shall be the duty of the board of county commissioners to

place the management and control of a county hospital either under a

board of control composed of five, seven, or nine members, or to

lease the hospital and the equipment therein to a public trust or to

an organization authorized to transact business in this state, the

principal purpose of which is providing health care services and

which can demonstrate to the board of county commissioners its

financial and managerial ability to operate property owned by the

hospital or a portion of the hospital.

B. Unless the hospital is to be leased as provided in this

section, the board of county commissioners shall appoint the members

of the board of control who shall be residents of the county, not

more than three of whom may be residents of the city or town in

which the hospital is located. Members of the board of control

shall hold office, as follows: Five-member board - one for one (1)

year; two for two (2) years; and two for three (3) years. Sevenmember board - two for one (1) year; two for two (2) years; and

three for three (3) years. Nine-member board - three for one (1)

year; three for two (2) years; and three for three (3) years. The

board of county commissioners shall appoint successors for members

of the board of control whose terms have expired. Successors shall

serve for a term of four (4) years; provided, the board of county

commissioners may at their discretion call an election for the

purpose of electing such successors with the cost of the election to

be paid for by the county. Filings for election shall be made with

Oklahoma Statutes - Title 19. Counties and County Officers

the county election board which shall conduct the election. No

member of the board of control shall hold any state, county or city

elective office while serving on the board of control. Members of

the board of control shall receive no salary or compensation for

their services, but may be reimbursed for any actual and necessary

expenditures incurred in the performance of their duties upon

presentation of an itemized statement of such expenses duly

verified, filed with the secretary, if every attending member of the

board votes in the affirmative at any regular board meeting.

Vacancies in the board of control occasioned by removal,

resignation, or otherwise shall be filled in like manner as original

appointments, to hold office during the unexpired term for which the

member was appointed.

C. 1. If, by a two-thirds (2/3) vote, the board of county

commissioners determines that it is in the best interest of the

county, it may in lieu of operation of the hospital through a board

of control, lease the hospital and the equipment therein to an

organization authorized to transact business in this state, the

principal purpose of which is providing health care services, and

which can demonstrate to the board of county commissioners its

financial and managerial ability to operate the hospital.

2. The lease shall require that the lessee shall be responsible

for all costs of operation and maintenance of the hospital in its

entirety.

3. The lessee is specifically authorized to mortgage, with

appropriate remedies, including the right of foreclosure, its

leasehold interest in the real and personal property comprising or

owned by the hospital, any portion of the hospital, or the equipment

for the purpose of securing or refunding indebtedness incurred in

connection with the related hospital or equipment.

4.

a.

If the lessee is a public trust, the lessee, by a twothirds (2/3) vote of its board of trustees and with

the approval of the board of county commissioners by a

two-thirds (2/3) vote, may assign its leasehold

interest or sublease the real and personal property

comprising or owned by the hospital, a portion of the

hospital, or the equipment to an organization

authorized to transact business in this state, the

principal purpose of which is providing health care

services, and which can demonstrate to the board of

trustees and to the board of county commissioners its

financial and managerial ability to operate property

owned by the hospital or a portion of the hospital.

b.

If the lessee is other than a public trust, the

lessee, by a two-thirds (2/3) vote of the lessee’s

governing board and with the approval of the board of

county commissioners by a two-thirds (2/3) vote, may

Oklahoma Statutes - Title 19. Counties and County Officers

assign its leasehold interest or sublease the real and

personal property comprising or owned by the hospital,

a portion of the hospital, or the equipment to a

public trust or to an organization authorized to

transact business in this state, the principal purpose

of which is providing health care services and which

can demonstrate to the board of county commissioners

its financial and managerial ability to operate

property owned by the hospital or a portion of the

hospital.

D. Any lease, sublease, or assignment of leasehold interests

executed prior to the effective date of this act that meets the

requirements of this section is hereby declared to be valid.

Added by Laws 1919, c. 273, p. 388, § 9, emerg. eff. March 25, 1919.

Amended by Laws 1939, p. 221, § 2, eff. July 1, 1939; Laws 1963, c.

72, § 1, emerg. eff. May 21, 1963; Laws 1970, c. 286, § 6, emerg.

eff. April 27, 1970; Laws 1982, c. 167, § 1, emerg. eff. April 12,

1982; Laws 1999, c. 7, § 1, eff. July 1, 1999; Laws 2005, c. 60, §

1, eff. Nov. 1, 2005.