1.1                          A bill for an act
  1.2             relating to hospital districts, authorizing hospital 
  1.3             districts to provide support services to certain 
  1.4             persons not in need of nursing home care; authorizing 
  1.5             a study of assisted living financing; amending 
  1.6             Minnesota Statutes 1996, sections 447.33; 447.34, 
  1.7             subdivision 1; and 447.45, subdivision 2. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 1996, section 447.33, is 
  1.10  amended to read: 
  1.11     447.33 [POWERS.] 
  1.12     Subdivision 1.  [BROAD POWERS OF DISTRICT.] Each hospital 
  1.13  district created or reorganized under sections 447.31 to 447.37 
  1.14  has the powers necessary and convenient to acquire, improve, and 
  1.15  run the hospital and, nursing home facilities, and facilities 
  1.16  described in section 447.45, subdivision 2, as the hospital 
  1.17  board finds expedient.  The list of powers in this section does 
  1.18  not restrict the power of the board.  It may take any action 
  1.19  reasonably necessary or convenient to further the purpose for 
  1.20  which the district exists which is not otherwise prohibited by 
  1.21  law.  
  1.22     Subd. 2.  [SPECIFIC POWERS.] Specifically, every district, 
  1.23  acting through its hospital board, may: 
  1.24     (1) employ nursing, administrative, and other personnel, 
  1.25  legal counsel, engineers, architects, accountants, and other 
  1.26  qualified persons, who may be paid for their services by monthly 
  2.1   salaries, hourly wages, and pension benefits, or by any fees 
  2.2   agreed on; 
  2.3      (2) have reports, plans, studies, and recommendations 
  2.4   prepared; 
  2.5      (3) lease, purchase, and contract for the purchase of real 
  2.6   and personal property by option, contract for deed, conditional 
  2.7   sales contract, or otherwise, and acquire real or personal 
  2.8   property by gift; 
  2.9      (4) lease or construct, equip, furnish, and maintain 
  2.10  necessary buildings and grounds; 
  2.11     (5) adopt, by resolution, rules for the operation and 
  2.12  administration of the hospital and nursing home facilities under 
  2.13  its control, and for the admission of patients; 
  2.14     (6) impose by resolution, and collect, charges for services 
  2.15  and facilities provided and made available by it; 
  2.16     (7) levy taxes as prescribed in section 447.34; 
  2.17     (8) borrow money and issue bonds as prescribed in sections 
  2.18  447.345 and 447.35; 
  2.19     (9) buy liability insurance for the district or its 
  2.20  officers and employees or both, for torts committed within the 
  2.21  scope of their official duties, whether governmental or 
  2.22  proprietary, and against damage to or destruction of any of its 
  2.23  facilities, equipment, or other property; 
  2.24     (10) sell or lease its facilities or equipment as it finds 
  2.25  expedient; and 
  2.26     (11) have its accounts, books, vouchers, and funds audited 
  2.27  by competent public accountants; and 
  2.28     (12) enter into agreements with a city or county with 
  2.29  respect to the facilities described in section 447.45, 
  2.30  subdivision 2, owned or operated by the city or county. 
  2.31     Sec. 2.  Minnesota Statutes 1996, section 447.34, 
  2.32  subdivision 1, is amended to read: 
  2.33     Subdivision 1.  [EXPENSES PAID FROM REVENUE, TAXES, AND 
  2.34  APPROPRIATIONS; TAX LIMITS.] Expenses of acquiring, improving, 
  2.35  and running the hospital and, nursing home facilities, and 
  2.36  facilities described in section 447.45, subdivision 2, operated 
  3.1   by a hospital district, amounts payable with respect to 
  3.2   facilities of the type described in section 447.45, subdivision 
  3.3   2, under an agreement between the hospital district and a city 
  3.4   or county, expenses incurred under section 447.331, subdivision 
  3.5   1, and expenses of organization and administration of the 
  3.6   district and of planning and financing the facilities, must be 
  3.7   paid from the revenues derived from them, and to the extent 
  3.8   necessary, from ad valorem taxes levied by the hospital board on 
  3.9   all taxable property within the district, and, to the extent 
  3.10  determined from time to time by the board of county 
  3.11  commissioners of any county containing territory of the 
  3.12  district, from appropriations made by the county board in 
  3.13  accordance with section 376.08.  Money appropriated by the board 
  3.14  of county commissioners to acquire or improve facilities of the 
  3.15  hospital district may be transferred in the discretion of the 
  3.16  hospital board to a sinking fund for bonds issued for that 
  3.17  purpose.  The hospital board may agree to repay to the county 
  3.18  any sums appropriated by the board of county commissioners for 
  3.19  this purpose, out of the net revenues to be derived from 
  3.20  operation of its facilities, and subject to the terms agreed on. 
  3.21     Sec. 3.  Minnesota Statutes 1996, section 447.45, 
  3.22  subdivision 2, is amended to read: 
  3.23     Subd. 2.  [POWERS OVER SPECIAL FACILITIES.] With respect to 
  3.24  facilities for the care, treatment, and training of persons with 
  3.25  mental retardation or related conditions, and facilities 
  3.26  attached or related to a nursing home providing supportive 
  3.27  services to elderly persons who are not yet in need of nursing 
  3.28  home care, including congregate housing, adult day care and 
  3.29  respite care services, a county or, city, or hospital district 
  3.30  may exercise the powers in sections 447.45 to 447.50 as if these 
  3.31  facilities were hospital or nursing home facilities within the 
  3.32  meaning of sections 447.45 to 447.50.  "County or city" includes 
  3.33  cities of the first class and counties containing them.  
  3.34  "Related conditions" is defined in section 252.27, subdivision 
  3.35  1a. 
  3.36     Sec. 4.  [STUDY OF ASSISTED LIVING FINANCING.] 
  4.1      The commissioners of health and human services, in 
  4.2   cooperation with the commissioner of the housing finance agency, 
  4.3   shall study and report to the legislature by January 15, 1998, 
  4.4   on options for public and private financing of the construction 
  4.5   of low- and moderate-income assisted living housing for senior 
  4.6   citizens throughout the state.  The study shall examine the 
  4.7   issues of rate equalization between publicly and privately 
  4.8   funded clients.