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HF 4507

as introduced - 93rd Legislature (2023 - 2024) Posted on 03/18/2024 03:57pm

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 03/01/2024

Current Version - as introduced

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A bill for an act
relating to local government; modifying requirements for the number of board
members of a hospital district in Swift County; making technical changes; amending
Laws 1992, chapter 534, sections 7, subdivisions 1, 2, 3; 8, subdivision 2; 10,
subdivision 4; 16.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Laws 1992, chapter 534, section 7, subdivision 1, is amended to read:


Subdivision 1.

Governing board.

The hospital district shall be governed by a board of
directors of deleted text begin at least nine and not more than 12deleted text end new text begin sixnew text end voting members, elected as provided in
subdivision 2. All members of the hospital board at the time the hospital district is organized
shall continue in office until the members of the first board of the hospital district are elected
and qualify.new text begin The hospital district may change the number of board members through adoption
and amendment of bylaws under section 10, subdivision 5.
new text end

Sec. 2.

Laws 1992, chapter 534, section 7, subdivision 2, is amended to read:


Subd. 2.

Election.

deleted text begin Threedeleted text end new text begin Twonew text end directors shall be elected by the city council and deleted text begin sixdeleted text end new text begin fournew text end
directors shall be elected by the county boardnew text begin , unless otherwise provided in the bylaws
under section 10, subdivision 5
new text end . deleted text begin Up to threedeleted text end Additional voting members and additional
nonvoting members may be provided for in bylaws adopted pursuant to section deleted text begin 5deleted text end new text begin 10new text end ,
subdivision 5. As nearly as possible, one-third of the members of the first board of directors
shall be elected for a term to expire one year from the next December 31 following that
election, one-third for a term to expire two years from that date, and one-third for a term to
expire three years from that date. Each of the political subdivisions electing directors shall
assign terms of office to each director according to these staggered terms. Successors to the
first board members shall each be elected for terms of three years, and all members shall
hold office until their successors are elected and qualify. Terms of office shall expire on
December 31. In case of vacancy on the board of directors, whether due to death, removal
from the district, inability to serve, resignation, removal by the entity that elected the director,
or other cause, the majority of the governing body of the entity that elected the director
whose position is vacant shall elect a director to fill such vacancy for the then unexpired
term.

Sec. 3.

Laws 1992, chapter 534, section 7, subdivision 3, is amended to read:


Subd. 3.

Compensation.

The members of the board of directors may receive
compensation for their services as such and may be reimbursed for reasonable expenses
necessarily incurred in the performance of their duties to the extent provided for in bylaws
adopted pursuant to section deleted text begin 5deleted text end new text begin 10new text end , subdivision 5.

Sec. 4.

Laws 1992, chapter 534, section 8, subdivision 2, is amended to read:


Subd. 2.

Duties.

The officers shall have the duties specified in this subdivision and
additional duties as set forth in bylaws adopted in accordance with section deleted text begin 5deleted text end new text begin 10new text end , subdivision
5. The chair shall preside at all meetings of the board of directors and shall perform all
duties usually incumbent upon such an officer. The vice-chair shall preside in the absence
of the chair. The secretary shall record the minutes of all meetings of the board and be the
custodian of all books and records of the district. The treasurer shall be the custodian of
money received by the district and shall see that they are properly accounted for. The board
may appoint deputies who shall perform any functions and duties of any officer, subject to
the supervision and control of the officer.

Sec. 5.

Laws 1992, chapter 534, section 10, subdivision 4, is amended to read:


Subd. 4.

Approval for sale or lease.

Nothing contained in new text begin this new text end section deleted text begin 5deleted text end shall be
construed to authorize the district or its board of directors to at any time sell, lease, or
otherwise transfer the management, control or operation of the hospital, including nursing
home or other facilities, except upon approval by a majority vote of the county board and
the city council.

Sec. 6.

Laws 1992, chapter 534, section 16, is amended to read:


Sec. 16. LEASE OF FACILITIES TO NONPROFIT OR PUBLIC CORPORATION.

Subject to section deleted text begin 5deleted text end new text begin 10new text end , subdivision 4, the hospital district may lease hospital, nursing
home, or other facilities to be run by a nonprofit or public corporation as community facilities.
The facilities must be open to all residents of the community on equal terms. The district
may lease related medical facilities to any person, firm, association, or corporation, at rent
and on conditions agreed. The term of the lease must not exceed 30 years. The lessee may
be granted an option to renew the lease for an additional term or to purchase the facilities.
The terms of renewal or purchase must be provided for in the lease. The hospital district
may by resolution of its governing body agree to pay to the lessee annually, and to include
in each annual budget for hospital and nursing home purposes, a fixed compensation for
services agreed to be performed by the lessee in running the hospital, nursing home, or other
facilities as a community facility; for any investment by the lessee of its own funds or funds
granted or contributed to it in the construction or equipment of the hospital, nursing home,
or other facilities; and for any auxiliary services to be provided or made available by the
lessee through other facilities owned or operated by it. Services other than those provided
for in the lease agreement may be compensated at rates agreed upon later. The lease
agreement must, however, require the lessee to pay a net rental not less than the amount
required to pay the principal and interest when due on all revenue bonds issued by the
hospital district to acquire, improve, and refinance the leased facilities, and to maintain the
agreed revenue bond reserve. The lease agreement must not grant the lessee an option to
purchase the facilities at a price less than the amount of the bonds issued and interest accrued
on them, except bonds and accrued interest paid from the net rentals before the option is
exercised.

To the extent that the facilities are leased under this section for use by persons in private
medical or dental or similar practice or other private business, a tax on that use must be
imposed just as though the user were the owner of the space. It must be collected as provided
in Minnesota Statutes, section 272.01, subdivision 2.

Sec. 7. new text begin EFFECTIVE DATE.
new text end

new text begin This act is effective the day after the governing bodies of Swift County and the city of
Benson and their respective chief clerical officers timely complete their compliance with
Minnesota Statutes, section 645.021, subdivisions 2 and 3.
new text end