(A) (1) Notwithstanding any provision of this chapter, the County Commissioners and the Board of Governors may lease the Garrett County Memorial Hospital, or any portion thereof, and transfer assets incidental to the lease in accordance with terms determined by the County Commissioners and the Board of Governors.
(2) If the County Commissioners and the Board of Governors lease the Garrett County Memorial Hospital, or any portion thereof, in accordance with this division:
(a) The Board of Governors shall:
1. Continue in existence as provided in division (B) of this section;
2. Under the lease, hold title to the assets owned by the hospital which are to be leased, as co-lessor with the County Commissioners; and
3. Continue in existence as a body politic and corporate, to enforce its rights and obligations under the lease and to resume operation of the hospital if a termination of the lease results in a reversion of the hospital operations and assets back to the County Commissioners and the Board of Governors; and
(b) The County Commissioners shall continue to:
1. Hold title to the real property owned by it and used for the purpose of the hospital; and
2. Enforce their rights and obligations under the lease.
(3) The County Commissioners and the Board of Governors may take any further actions necessary to fully perform under a lease, including:
(a) Executing all applicable documents and transactions necessary to lease the real estate and existing facilities;
(b) Transferring title to or possession of tangible property and intangible property;
(c) Participating in any applicable regulatory process; and
(d) Making arrangements for a disposition of the hospital consistent with the terms of a lease.
(B) (1) Notwithstanding § 36.03, if the County Commissioners and the Board of Governors lease the Garrett County Memorial Hospital, or any portion thereof, in accordance with this section, the Board of Governors shall be reduced in number to consist of three persons residing in Garrett County, one to be appointed by each of the County Commissioners.
(2) The Board of Governors shall meet at least once each year and at other times as it shall determine or when called by the Chairperson.
(3) The County Commissioners shall select the members of the Board of Governors under this division for their talents, abilities, and interest in the affairs of the Garrett County Memorial Hospital.
(4) A member of the Board of Governors under this division may not serve on the board of directors of the lessee.
(5) The term of a member appointed by the County Commissioners under this division is two years or until the current term of the elected official or officials who selected the member ends, whichever occurs first.
(6) The Board of Governors shall elect from among its members a chairperson, a Vice Chairperson, and a Secretary/Treasurer.
(7) The Board of Governors may remove a member or fill a vacancy on the Board in accordance with § 36.03(E) and (F).
(8) The County Commissioners, by resolution, shall adopt procedures for the transition of the membership and duties of the Board of Governors necessitated by the entering into, or termination of, a lease under this section.
(C) In any lease authorized by this section, transfers of title to or possession of real estate, tangible property, or intangible property owned by the County Commissioners or the Board of Governors and used in the operation of the hospital, including membership or equity interests in subsidiary or affiliated entities, are authorized and exempt from public bidding requirements under § 30.21.
(Md. H.B. 1471, passed 2-26-2022)