Sec. 1. P&SL 1967, c. 58, §1-A is enacted to read:

*Sec. 1-A.__Conversion.__Notwithstanding any other provision of this chapter, Hospital Administrative District No. 1, referred to in this Act as the "district," which operates Penobscot Valley Hospital, is authorized to merge, pursuant to the Maine Revised Statutes, Title 13-B, chapter 9 with and into a nonprofit, nonstock private corporation, without members, referred to in this Act as the "surviving corporation."__Notwithstanding the Maine Revised Statutes, Title 13-B, section 102, subsection 4, paragraph C, the district is deemed to be a domestic corporation for purposes of the merger.

The merger may occur only if the trustees of the district approve the merger and if all the indebtedness of the district is paid or adequate provision for the payment of that indebtedness is made, including, without limitation, the assumption of liabilities and indebtedness of the district by the surviving corporation in the merger.__No other vote of the district or of any town that is a member of the district, or the inhabitants of either, is required for the merger.

The Maine Revised Statutes, Title 13, section 3062 does not apply to the merger authorized in this section.

In the merger:

1.__The assets and liabilities of the district become assets and liabilities of the surviving corporation and the separate corporate existence of the district ceases;

2.__The articles of incorporation and bylaws of the nonprofit, nonstock corporation become the articles of incorporation and bylaws of the surviving corporation;

3.__Except for this section, this chapter has no further force or effect;

4.__All employees of the district become employees of the surviving corporation and employees may not be terminated solely by virtue of the merger;

5.__The directors and officers of the surviving corporation are the persons who were directors and officers of the private, nonprofit, nonstock corporation formed for the purpose of the merger; and