C. To satisfy the requirements of section 103 of the internal revenue code, as defined in section 43-105, any nonprofit corporation which is a lessee as described in subsection A of this section is declared to be:

1. 1. A validly organized and existing body politic and corporate exercising its powers for the benefit of the people, to improve their health and welfare and to increase their prosperity.
2. 2. Engaged in a purpose essential to public health care.
3. 3. Performing an essential governmental function.

G. No nonprofit corporation which is a lessee as described in subsection A of this section shall:

1. 1. Until September 1, 1986 enter into any agreement with a county or a nonprofit corporation to which property is conveyed pursuant to section 11-256.03, subsection A if the agreement provides for the conveyance of any ownership interest whatever in the nonprofit corporation to which property is conveyed pursuant to section 11-256.03, subsection A or in the property described in section 11-256.03, subsection A. After August 31, 1986 any such agreement must be approved by the Arizona board of regents and the legislature. This subsection does not prevent the grant of an option to purchase such property, provided that the option may not be exercised before September 1, 1986 and the exercise of the option must be approved by the Arizona board of regents and the legislature. Under no circumstances shall any state general fund monies be used to acquire any interest in such property.

2. 2. Own, lease, manage or operate any other health care institution or other real or personal property unless such acquisition, management or operation either:

   1. (a) Relates to and furthers the educational or research purposes and goals of the university of Arizona hospital.
   2. (b) Promotes the efficient and economical operation of the university of Arizona hospital or any other health care institution acquired pursuant to paragraph 1 of this subsection.

K. Any nonprofit corporation which is a lessee as described in subsection A of this section shall:

1. 1. Be organized as a nonprofit corporation pursuant to title 10, chapters 24 through 40 only upon the approval of the Arizona board of regents.
2. 2. Be governed by a board of directors, the members of which are appointed by the Arizona board of regents, provided that no more than forty-nine per cent of the members of such board of directors of the nonprofit corporation shall be officers or employees of this state and of such forty-nine per cent only two members of such board of directors may be members of the Arizona board of regents. Members of the Arizona board of regents who are appointed to the board of directors of such nonprofit corporation shall be residents of different counties unless all members of the board of regents are residents of the same county.

3. 3. Be organized under articles of incorporation or bylaws approved by the Arizona board of regents which shall provide among other things that:

   1. (a) No earnings of the nonprofit corporation shall inure to the benefit of or be distributable to its members, directors, officers or other individuals, except that the nonprofit corporation shall be authorized to pay reasonable compensation for services rendered to it by individuals other than members of the board of directors of the nonprofit corporation acting solely in such capacity, to reimburse expenses in connection with services rendered to or expenses incurred on behalf of the nonprofit corporation and to make payments and distributions in furtherance of the purposes of the nonprofit corporation.
   2. (b) Upon the dissolution or liquidation of the nonprofit corporation, the board of directors of the nonprofit corporation shall, after paying or making provision for the payment of all of the liabilities of the nonprofit corporation, distribute all of the assets of the nonprofit corporation to the Arizona board of regents or its successor.
   3. (c) Neither the articles of incorporation nor the bylaws of the nonprofit corporation shall be amended without the approval of the Arizona board of regents.
   4. (d) The board of directors of the nonprofit corporation may adopt nondiscriminatory rules and regulations providing for the use of the university of Arizona hospital by, and staff privileges for, any persons licensed under title 32, chapter 7, 13 or 17 whether or not such persons have a faculty teaching appointment with the school of medicine, providing, however, that such rules and regulations shall contain requirements sufficient to protect the educational and research purposes and goals of the university of Arizona hospital.