Section 4. Conditions.
The documents of conveyance shall provide expressly that the conveyance of real and personal property shall be conditioned upon compliance by Lower Anthracite Community Hospital Corporation for a period of five years from the date of conveyance with the following terms and conditions:
(1) Lower Anthracite Community Hospital Corporation shall comply with the applicable provisions of Federal and State law respecting its qualification for tax exemption and its obligations to furnish charity care services to persons unable to pay therefor.
(2) The bylaws of the Lower Anthracite Community Hospital Corporation shall require that none of its directors shall serve more than two full consecutive terms of three years as a director and that no director shall serve more than eight consecutive years as a director, including shortened terms as an initial director or to fill a vacancy. Any director serving such consecutive years or terms shall be ineligible to serve as a director until at least one year following the expiration of such director's most recent term of service.
(3) The bylaws of Lower Anthracite Community Hospital Corporation shall include a procedure for receiving suggestions from the communities presently served by Shamokin State General Hospital concerning the continuing composition of the Board of Directors of Lower Anthracite Community Hospital Corporation. Such procedure shall be designed and utilized in a manner consistent with the objectives of insuring that the future operations of the facilities presently operated as Shamokin State General Hospital and the composition of the Board of Directors of Lower Anthracite Community Hospital Corporation shall reflect a broad cross section of the views and interests of the communities served by Shamokin State General Hospital.
(4) The bylaws of Lower Anthracite Community Hospital Corporation shall require that its board of directors be comprised of at least 11 directors.
(5) Lower Anthracite Community Hospital Corporation shall comply with the applicable provisions of Federal and State law respecting its qualification for tax exemption and the prohibition against any part of its net earnings inuring to the benefit of private individuals, including, without limitation, its directors, officers, employees or members of their immediate families.
(6) Lower Anthracite Community Hospital Corporation shall comply with the applicable provisions of Federal and State law respecting its qualification as a nonprofit corporation and its operation of a hospital or other health care facility, and regarding transactions in which any director, officer, employee or a member of their immediate families may derive a material financial interest. Lower Anthracite Community Hospital Corporation's bylaws shall provide for a procedure requiring the disclosure and monitoring of such interests and transactions to ensure such compliance.
(7) The documents of conveyance shall require Lower Anthracite Community Hospital Corporation to comply with the conditions in this section for a period of five years. If Lower Anthracite Community Hospital Corporation fails to comply with the conditions in this section, the Secretary of the Department of Public Welfare shall notify Lower Anthracite Community Hospital Corporation in writing, specifying the noncompliance, and Lower Anthracite Community Hospital Corporation shall have 60 days to cure the noncompliance. If the noncompliance is not cured within 60 days, the Commonwealth may exercise a right of reentry as provided in the documents of conveyance. In the absence of a notice of noncompliance or the exercise of the right of reentry, Lower Anthracite Community Hospital Corporation shall be deemed to be in compliance with the conditions contained in this section.
Compiler's Note: The Department of Public Welfare, referred to in this section, was redesignated as the Department of Human Services by Act 132 of 2014.