HF 4297

Introduction - 94th Legislature (2025 - 2026)

Posted on 03/16/2026 03:08 p.m.

A bill for an act
relating to local government; expanding the authority of hospital districts to support
additional health care services and providers; amending Minnesota Statutes 2024,
sections 447.31, subdivision 3; 447.33, subdivision 2; proposing coding for new
law in Minnesota Statutes, chapter 447.

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

Section 1.

Minnesota Statutes 2024, section 447.31, subdivision 3, is amended to read:

Subd. 3.

Contents of resolution.

A resolution under subdivision 1 must state that a
hospital district is authorized to be created under sections 447.31 to 447.37, or that an
existing hospital district is authorized to be reorganized under sections 447.31 to 447.37,
in order to acquire, improve, and run hospital and nursing home facilities new text begin , as well as
financially support other licensed health care programs, services, and facilities, new text end that the
hospital board decides are necessary and expedient in accordance with sections 447.31 to
447.37. The resolution must name the two or more cities or towns included in the district.
The resolution must be adopted by a two-thirds majority of the members-elect of the
governing body or board acting on it, or by the voters of the city or town as provided in this
section.

Each resolution adopted by the governing body of a city or town must be published in
its official newspaper and takes effect 40 days after publication, unless a petition for
referendum on the resolution is filed with the governing body within 40 days. A petition
for referendum must be signed by at least five percent of the number of voters voting at the
last election of officers. If a petition is filed, the resolution does not take effect until approved
by a majority of voters voting on it at a regular municipal election or a special election
which the governing body may call for that purpose.

The resolution may also be initiated by petition filed with the governing body of the city
or town, signed by at least ten percent of the number of voters voting at the last general
election. A petition must present the text of the proposed resolution and request an election
on it. If the petition is filed, the governing body shall call a special election for the purpose,
to be held within 30 days after the filing of the petition, or may submit the resolution to a
vote at a regular municipal election that is to be held within the 30-day period. The resolution
takes effect if approved by a majority of voters voting on it at the election. Only one election
shall be held within any given 12-month period upon resolutions initiated by petition. The
notice of the election and the ballot used must contain the text of the resolution, followed
by the question: "Shall the above resolution be approved?"

Sec. 2.

Minnesota Statutes 2024, section 447.33, subdivision 2, is amended to read:

Subd. 2.

Specific powers.

Specifically, every district, acting through its hospital board,
may:

(1) employ nursing, administrative, and other personnel, legal counsel, engineers,
architects, accountants, and other qualified persons, who may be paid for their services by
monthly salaries, hourly wages, and pension benefits, or by any fees agreed on;

(2) have reports, plans, studies, and recommendations prepared;

(3) lease, purchase, and contract for the purchase of real and personal property by option,
contract for deed, conditional sales contract, or otherwise, and acquire real or personal
property by gift;

(4) lease or construct, equip, furnish, and maintain necessary buildings and grounds;

(5) adopt, by resolution, rules for the operation and administration of the hospital and
nursing home facilities under its control, and for the admission of patients;

(6) impose by resolution, and collect, charges for services and facilities provided and
made available by it;

(7) levy taxes as prescribed in section 447.34;

(8) borrow money and issue bonds as prescribed in sections 447.345 and 447.35;

(9) buy liability insurance for the district or its officers and employees or both, for torts
committed within the scope of their official duties, whether governmental or proprietary,
and against damage to or destruction of any of its facilities, equipment, or other property;

(10) sell or lease its facilities or equipment as it finds expedient;

(11) have its accounts, books, vouchers, and funds audited by competent public
accountants; deleted text begin and
deleted text end

(12) enter into agreements with a city or county with respect to the facilities described
in section 447.45, subdivision 2, that are attached or related to a nursing home, are providing
supportive services to elderly persons who are not yet in need of nursing home care, including
congregate housing, adult day care, and respite care services, and are owned or operated by
the city or county deleted text begin . deleted text end new text begin ; and
new text end

new text begin (13) enter into agreements under section 447.44 to provide financial or in-kind support
to licensed health care providers and facilities, including but not limited to primary care
clinics, behavioral and mental health providers, dental clinics, home health agencies, urgent
care centers, and community-based health service organizations.
new text end

Sec. 3.

new text begin [447.44] SUPPORT FOR LICENSED PROVIDERS.
new text end

new text begin Subdivision 1. new text end

new text begin Agreement requirements. new text end

new text begin (a) Any agreement made under section 447.33,
subdivision 2, clause (13), must include terms that:
new text end

new text begin (1) require a recipient to use hospital district funds only for specifically identified
programs, services, or capital investments that benefit the health and well-being of hospital
district residents;
new text end

new text begin (2) establish regular financial reporting from the recipient to the hospital district; and
new text end

new text begin (3) prohibit the use of hospital district funds for executive compensation, shareholder
dividends, or profit distribution.
new text end

new text begin (b) A hospital board must establish internal policies and procedures to ensure that
recipient organizations comply with the requirements of this section.
new text end

new text begin Subd. 2. new text end

new text begin No additional authority. new text end

new text begin Nothing in this section modifies or provides additional
taxing authority to hospital districts beyond the authority provided in section 447.34 or as
otherwise provided by law.
new text end