S.F. 2216 Section 1. Section 21.5, subsection 1, paragraph l, Code 1 2014, is amended to read as follows: 2 l. To discuss patient care quality and process improvement 3 initiatives in a meeting of a public hospital or to discuss 4 strategic planning, marketing and pricing strategies , or 5 similar proprietary information in a meeting of a public 6 hospital, where public disclosure of such information would 7 harm such a hospital’s competitive position when no public 8 purpose would be served by public disclosure. The minutes and 9 the audio recording of a closed session under this paragraph 10 shall be available for public inspection when the public 11 disclosure would no longer harm the hospital’s competitive 12 position. For purposes of this paragraph, “public hospital” 13 means a hospital licensed pursuant to chapter 135B and governed 14 pursuant to chapter 145A , 226 , 347 , 347A , or 392 . This 15 paragraph does not apply to the information required to be 16 disclosed pursuant to section 347.13, subsection 11 , or to any 17 discussions relating to terms or conditions of employment, 18 including but not limited to compensation of an officer or 19 employee or group of officers or employees. 20 Sec. 2. Section 392.6, subsections 1 and 2, Code 2014, are 21 amended to read as follows: 22 1. If a hospital or health care facility is established by a 23 city, the city shall by ordinance provide for the election, at 24 a special election held pursuant to section 39.2, subsection 4 , 25 paragraph “b” , of three trustees, whose terms of office shall be 26 four years , unless otherwise provided pursuant to subsection 27 2A . However, at the first election, three shall be elected and 28 hold their office, one for four years and two for two years, 29 and they shall by lot determine their respective terms , unless 30 otherwise provided pursuant to subsection 2A . A candidate for 31 hospital or health care facility trustee must be a resident of 32 the hospital or health care facility service area within the 33 boundaries of the state at the time of the election at which 34 the person’s name appears on the ballot. A board of trustees 35 -1- LSB 5867XS (4) 85 aw/sc 1/ 5

S.F. 2216 elected pursuant to this section shall serve as the sole and 1 only board of trustees for any and all institutions established 2 by a city as provided for in this section . 3 2. The administration and management of an institution as 4 provided for in this section is vested in a board of trustees 5 consisting of three, five, or seven members. A three-member 6 board may be expanded to a five-member board, and a five-member 7 board may be expanded to a seven-member board. Expansion of 8 the membership of the board shall occur only on approval of 9 a majority of the current board of trustees. The additional 10 members shall be appointed by the current board of trustees. 11 One appointee shall serve until the next succeeding general 12 or regular city election, at which time a successor shall be 13 elected, and the other appointee shall serve until the second 14 succeeding general or regular city election, at which time 15 a successor shall be elected. The determination of which 16 election an appointed additional member shall be required to 17 seek election shall be determined by lot. Thereafter, the 18 terms of office of such additional members shall be four years , 19 unless otherwise provided pursuant to subsection 2A . 20 Sec. 3. Section 392.6, Code 2014, is amended by adding the 21 following new subsection: 22 NEW SUBSECTION . 2A. a. A city may by ordinance provide for 23 the initial election, at a special election held pursuant to 24 section 39.2, subsection 4, paragraph “b” , of three trustees, 25 whose terms of office shall be three years. However, at the 26 first election, three shall be elected and hold their office, 27 one shall serve until the next succeeding general or regular 28 city election, one shall serve until the second succeeding 29 general or regular city election, and one shall serve until the 30 third succeeding general or regular city election, and they 31 shall by lot determine their respective terms. 32 b. (1) A city may by ordinance reduce the length of terms 33 of all trustees of an existing three-member board of trustees 34 from four-year terms to three-year terms, provided that the 35 -2- LSB 5867XS (4) 85 aw/sc 2/ 5

S.F. 2216 ordinance specifies the following: 1 (a) That the trustee who has served the greatest number of 2 days of a four-year term shall serve until the next succeeding 3 general or regular city election. 4 (b) That the trustee elected who has served the fewest 5 number of days of a four-year term shall serve until the third 6 succeeding general or regular city election. 7 (c) If two trustees have served the same number of days, 8 that the determination of which trustee shall be required to 9 seek election at the second succeeding general or regular city 10 election shall be determined by lot. 11 (d) That not more than one trustee office shall appear on 12 the ballot at a general or regular city election. 13 (2) A city may by ordinance reduce the length of terms 14 of all trustees of an existing five-member board of trustees 15 from four-year terms to three-year terms, provided that the 16 ordinance specifies the following: 17 (a) That the two trustees who have served the greatest 18 number of days of a four-year term shall serve until the next 19 succeeding general or regular city election. 20 (b) That the two trustees who have served the fewest 21 number of days of a four-year term shall serve until the third 22 succeeding general or regular city election. 23 (c) If three trustees have served the same number of days, 24 that the determination of which trustee shall be required to 25 seek election at the second succeeding general or regular city 26 election shall be determined by lot. 27 (d) That not more than two trustee offices shall appear on 28 the ballot at a general or regular city election. 29 (3) A city may by ordinance reduce the length of terms of 30 all trustees of an existing seven-member board of trustees 31 from four-year terms to three-year terms, provided that the 32 ordinance specifies the following: 33 (a) That the three trustees who have served the greatest 34 number of days of a four-year term shall serve until the next 35 -3- LSB 5867XS (4) 85 aw/sc 3/ 5

S.F. 2216 succeeding general or regular city election. 1 (b) That the two trustees who have served the fewest 2 number of days of a four-year term shall serve until the third 3 succeeding general or regular city election. 4 (c) That the determination of which two trustees shall be 5 required to seek election at the second succeeding general or 6 regular city election shall be determined by lot, provided 7 that if there are four trustees that have all served the same 8 greatest number of days, that no more than one trustee of that 9 group be selected by lot and be required to seek election at 10 the second succeeding general or regular city election. 11 (d) That not more than three trustee offices shall appear on 12 the ballot at a general or regular city election. 13 EXPLANATION 14 The inclusion of this explanation does not constitute agreement with 15 the explanation’s substance by the members of the general assembly. 16 This bill relates to boards of trustees for city hospitals or 17 health care facilities. 18 Under current law, a governmental body may hold a closed 19 session for certain reasons, and members of the public may be 20 denied access to the session. Current law provides that one 21 such reason is to discuss patient care quality and process 22 improvement initiatives in a meeting of a public hospital or to 23 discuss marketing and pricing strategies or similar proprietary 24 information in a meeting of a public hospital, where public 25 disclosure of such information would harm such a hospital’s 26 competitive position when no public purpose would be served by 27 public disclosure. The bill provides that such a hospital may 28 also hold a closed session to discuss strategic planning. By 29 operation of current law, the minutes and the audio recording 30 of a closed session to discuss strategic planning shall be 31 available for public inspection when the public disclosure 32 would no longer harm the hospital’s competitive position. 33 Under current law, a city council may adopt an ordinance 34 to provide for the election of an initial three-member board 35 -4- LSB 5867XS (4) 85 aw/sc 4/ 5

S.F. 2216 of trustees for a city hospital or health care facility to 1 serve four-year terms. The bill provides that a city council 2 may also adopt an ordinance to provide for the election of an 3 initial three-member board of trustees for a city hospital 4 or health care facility to serve three-year terms. The bill 5 further provides that a city may adopt an ordinance to reduce 6 the terms of trustees from four to three years for an existing 7 board of trustees with three, five, or seven members. The bill 8 requires that such an ordinance include specific provisions 9 for the reduction of terms of current trustees and specific 10 provisions for the subsequent election of trustees. 11 -5- LSB 5867XS (4) 85 aw/sc 5/ 5