Hospital bankruptcy proceedings.

Plain English Breakdown

The official source does not provide information about specific actions under Chapter 9 or details on how the process will be enforced and monitored.

Hospital Bankruptcy Proceedings

This law allows county memorial hospitals and hospital districts to file for bankruptcy under Chapter 9 of the United States Bankruptcy Code, subject to certain requirements.

What This Bill Does

• Allows trustees of a county memorial hospital to vote on filing for bankruptcy if approved by the board of county commissioners.
• Requires that before voting to dissolve or terminate a county memorial hospital, the plan must be approved by the board of county commissioners.
• Permits hospital districts to file for bankruptcy without needing approval from voters, provided trustees follow specific steps including advertising the motion publicly for at least seven days.

Who It Names or Affects

• County memorial hospitals
• Hospital districts
• Boards of county commissioners

Terms To Know

Chapter 9 of the United States Bankruptcy Code

A part of federal law that provides rules for municipalities and other public entities to file for bankruptcy.

Board of county commissioners

The governing body responsible for managing county affairs, including approving certain actions by hospitals.

Limits and Unknowns

• Does not specify the consequences if a hospital or district does not meet the requirements to file for bankruptcy.
• Details on enforcement and monitoring of the process are not provided in the official summary.

Official Summary Text

Bill Summary - 26LSO-0137

Bill No.:

SF0005

Effective:

Immediately

LSO No.:

26LSO-0137

Enrolled Act No.:

SEA No. 0010

Chapter No.:

13

Prime Sponsor:

Joint Labor, Health & Social Services Interim Committee

Catch Title:

Hospital bankruptcy proceedings.

Has Report:

No

Subject:

Allows county memorial hospitals and hospital districts to file for bankruptcy.

Summary/Major Elements:

This act allows county memorial hospitals and hospital districts to file for bankruptcy under Chapter 9 of the United States Bankruptcy Code, subject to specified requirements.

A bankruptcy petition for a county memorial hospital must be approved by the applicable board of county commissioners. If approved, the board of trustees for a county memorial hospital may move forward with the petition.

Hospital districts may apply for bankruptcy without a vote of qualified electors, but the trustees of the hospital district must advertise the motion to file for bankruptcy. If the trustees decide to file for bankruptcy, the trustees must take all action necessary under Chapter 9 of the United States Bankruptcy Code.

The above summary is not an official publication of the Wyoming Legislature and is not an official statement of legislative intent.

While the Legislative Service Office endeavored to provide accurate information in this summary, it should not be relied upon as a comprehensive abstract of the bill.

Current Bill Text

26LSO-0137

ORIGINAL Senate

File No
.
SF0005

ENROLLED ACT NO. 10,

SENATE

SIXTY-EIGHTH LEGISLATURE OF THE STATE OF WYOMING
2026 Budget Session

AN ACT relating to counties; authorizing county memorial hospitals and hospital districts to file for bankruptcy under chapter 9 of the United States bankruptcy code as specified; and providing for an effective date.

Be It Enacted by the Legislature of the State of Wyoming:

Section 1
.

W.S. 18
‑
8
‑
109(a)(intro), (b) and (c) and 35
‑
2
‑
438(a)(intro) and by creating a new subsection (d) are amended to read:

18
‑
8
‑
109.

Dissolution; bankruptcy.

(a)

Subject to the requirements of this section, the trustees of a memorial hospital may vote
to file bankruptcy under chapter 9 of the United States bankruptcy code or
to dissolve and terminate the county memorial hospital.

The plan to dissolve and terminate the county memorial hospital shall provide for the following:

(b)

Before any
vote by the trustees to file bankruptcy or
plan to dissolve and terminate a county memorial hospital is effective, the
bankruptcy petition and initial
plan
for the adjustment of debts or the dissolution and termination plan
shall be approved by the board of county commissioners.

(c)

If the board of county commissioners approves
the bankruptcy petition and initial plan for adjustment of debts or
the dissolution and termination plan, the board of trustees may
take all action necessary to obtain confirmation of the plan of adjustment and closure of the case under chapter 9 of the United States bankruptcy code or
take all action necessary to effectuate the plan and dissolve and terminate the county memorial hospital.

35
‑
2
‑
438.

Dissolution; bankruptcy.

(a)

Subject to the requirements of this section, the trustees of a hospital district may vote to
file bankruptcy under chapter 9 of the United States bankruptcy code or to
dissolve and terminate the district.

The plan to dissolve and terminate the district shall provide for the following:

(d)

Filing of bankruptcy under subsection (a) of this section shall not require a vote of qualified electors. Before any vote by the trustees of a hospital district to file bankruptcy, the bankruptcy petition and initial plan for adjustment of debts shall be posted on any website operated by the district and be publicly available for a period of not less than seven (7) days prior to the first public meeting of the trustees where the petition and plan will be considered. If the trustees approve the bankruptcy petition and initial plan for adjustment of debts, the trustees may take all action necessary to obtain confirmation of the plan of adjustment and closure of the case under chapter 9 of the United States bankruptcy code.

Section 2
.

This act is effective immediately upon completion of all acts necessary for a bill to become law as provided by Article 4, Section 8 of the Wyoming Constitution.

(END)

Speaker of the House

President of the Senate

Governor

TIME APPROVED: _________

DATE APPROVED: _________

I hereby certify that this act originated in the Senate.

Chief Clerk

1