HF 559

as introduced - 90th Legislature (2017 - 2018) Posted on 04/20/2017 10:12am

A bill for an act
relating to health; authorizing a governmental entity to invest funds of a hospital
owned or operated by the governmental entity; amending Minnesota Statutes 2016,
section 144.581, subdivision 1.

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

Section 1.

Minnesota Statutes 2016, section 144.581, subdivision 1, is amended to read:

Subdivision 1.

Nonprofit corporation powers.

A municipality, political subdivision,
state agency, or other governmental entity that owns or operates a hospital authorized,
organized, or operated under chapters 158, 250, 376, and 397, or under sections 412.221,
447.05 to 447.13, 447.31, or 471.59, or under any special law authorizing or establishing
a hospital or hospital district shall, relative to the delivery of health care services, have, in
addition to any authority vested by law, the authority and legal capacity of a nonprofit
corporation under chapter 317A, including authority to:

(1) enter shared service and other cooperative ventures;

(2) join or sponsor membership in organizations intended to benefit the hospital or
hospitals in general;

(3) enter partnerships;

(4) incorporate other corporations;

(5) have members of its governing authority or its officers or administrators serve as
directors, officers, or employees of the ventures, associations, or corporations;

(6) own shares of stock in business corporations;

(7) offer, directly or indirectly, products and services of the hospital, organization,
association, partnership, or corporation to the general public; deleted text begin and
deleted text end

(8) expend funds, including public funds in any form, or devote the resources of the
hospital or hospital district to recruit or retain physicians whose services are necessary or
desirable for meeting the health care needs of the population, and for successful performance
of the hospital or hospital district's public purpose of the promotion of health. Allowable
uses of funds and resources include the retirement of medical education debt, payment of
onetime amounts in consideration of services rendered or to be rendered, payment of
recruitment expenses, payment of moving expenses, and the provision of other financial
assistance necessary for the recruitment and retention of physicians, provided that the
expenditures in whatever form are reasonable under the facts and circumstances of the
situation deleted text begin . deleted text end new text begin ; and
new text end

new text begin (9) notwithstanding any limitation in chapter 118A, invest hospital funds in any security
which has been recommended by an investment adviser registered under the federal
Investment Advisers Act of 1940, United States Code, title 15, sections 80b-1 to 80b-21,
or by a bank or trust company exercising its trust powers. Funds invested under this clause
must be invested according to written investment policies and written investment procedures
established by the governmental entity.
new text end