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Sub. H. B. No. 239As Reported by the House Health CommitteeAs Reported by the House Health Committee
125th General Assembly | Regular Session | 2003-2004 |
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REPRESENTATIVES Core, Seitz, McGregor, Kearns, Aslanides, Gilb, Hollister
A BILL
To amend sections 140.01 and 140.03, to enact new section 140.051, and to repeal section 140.051 of the Revised Code to expand the definition of costs of hospital facilities, to specify that a trustee, officer, or director of a hospital agency does not have an interest in the profits or benefits of an agreement between hospital agencies solely by virtue of being a trustee, officer, or director of one of the participating hospital agencies, and to confirm and validate amendments made to section 140.01 and the enactment of section 140.051 of the Revised Code by Am. Sub. S.B. 109 of the 113th General Assembly in order to eliminate any legal challenges that have been or may be raised concerning the constitutionality of these amendments.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 140.01 and 140.03 be amended and new section 140.051 of the Revised Code be enacted to read as follows:
Sec. 140.01. As used in this chapter this chapter: (A)
"Hospital agency" means any public hospital agency or
any
nonprofit hospital agency. (B)
"Public hospital agency" means any county, board of
county hospital trustees established pursuant to section 339.02
of
the Revised Code, county hospital commission established
pursuant
to section 339.14 of the Revised Code, municipal
corporation,
new
community authority organized under Chapter 349. of the Revised
Code, joint township hospital district, state or municipal
university or
college operating or authorized to operate a
hospital facility, or
the state, or the state. (C)
"Nonprofit hospital agency" means a corporation or
association not for profit, no part of the net earnings of which
inures or may lawfully inure to the benefit of any private
shareholder or individual, that has authority to own or operate a
hospital facility or provides or is to provide services to one or
more other hospital agencies. (D)
"Governing body" means, in the case of a county, the
board of county commissioners or other legislative body; in the
case of a board of county hospital trustees, the board; in the
case of a county hospital commission, the commission; in the case
of a municipal corporation, the council or other legislative
authority;
in the case of a new community authority, its board of
trustees; in the case of a joint township hospital district, the
joint township district hospital board; in the case of a state or
municipal university or college, its board of trustees or board
of
directors; in the case of a nonprofit hospital agency, the
board
of trustees or other body having general management
of the
agency; and,
in the case of the state, the director of
development
or the Ohio
higher educational facility commission; and,
in the case of the state, the director of
development
or the Ohio
higher educational facility commission. (E)
"Hospital facilities" means buildings, structures and
other improvements, additions thereto and extensions thereof,
furnishings, equipment, and real estate and interests in real
estate, used or to be used for or in connection with one or more one or more
hospitals, emergency, intensive, intermediate, extended,
long-term, or self-care facilities, diagnostic and treatment and
out-patient facilities, facilities related to programs for home
health services, clinics, laboratories, public health centers,
research facilities, and rehabilitation facilities, for or
pertaining to diagnosis, treatment, care, or rehabilitation of
sick, ill, injured, infirm, impaired, disabled, or handicapped
persons, or the prevention, detection, and control of disease,
and
also includes education, training, and food service
facilities for
health professions personnel, housing facilities
for such
personnel and their families, and parking and service
facilities
in connection with any of the foregoing; and includes
any one,
part of, or any combination of the foregoing; and
further includes
site improvements, utilities, machinery,
facilities, furnishings,
and any separate or connected buildings,
structures, improvements,
sites, utilities, facilities, or
equipment to be used in, or in
connection with the operation or
maintenance of, or supplementing
or otherwise related to the
services or facilities to be provided
by, any one or more of such
hospital facilities. (F)
"Costs of hospital facilities" means the costs of
acquiring or constructing hospital facilities, or interests in hospital facilities, including membership interests in nonprofit hospital agencies, costs of constructing hospital facilities, costs of improving
one or more one or more hospital facilities, including reconstructing,
rehabilitating, remodeling, renovating, and enlarging, costs of
equipping and furnishing such facilities, and all financing costs
pertaining thereto, including, without limitation thereto, costs
of engineering, architectural, and other professional services,
designs, plans, specifications and surveys, and estimates of
cost,
costs of tests and inspections, the costs of any indemnity
or
surety bonds and premiums on insurance, all related direct or
allocable administrative expenses pertaining thereto, fees and
expenses of trustees, depositories, and paying agents for the
obligations, cost of issuance of the obligations and financing
charges and fees and expenses of financial advisors, attorneys,
accountants, consultants and rating services in connection
therewith, capitalized interest on the obligations, amounts
necessary to establish reserves as required by the bond
proceedings, the reimbursement of all moneys advanced or applied
by the hospital agency or others or borrowed from others for the
payment of any item or items of costs of such facilities, and all
other expenses necessary or incident to planning or determining
feasibility or practicability with respect to such facilities,
and
such other expenses as may be necessary or incident to the
acquisition, construction, reconstruction, rehabilitation,
remodeling, renovation, enlargement, improvement, equipment, and
furnishing of such facilities, the financing thereof, and the
placing of the same in use and operation, including any one, part
of, or combination of such classes of costs and expenses, and
means the costs of refinancing obligations issued by, or
reimbursement of money advanced by, nonprofit hospital agencies
or
others the proceeds of which were used for the payment of
costs of
hospital facilities, if the governing body of the public
hospital
agency determines that the refinancing or reimbursement
advances
the purposes of this chapter, whether or not the
refinancing or
reimbursement is in conjunction with the
acquisition or
construction of additional hospital facilities, and means the costs of refinancing obligations issued by, or reimbursement of money advanced by, nonprofit hospital agencies or others the proceeds of which were used for the payment of costs of hospital facilities, if the governing body of the public hospital agency determines that the refinancing or reimbursement advances the purposes of this chapter, whether or not the refinancing or reimbursement is in conjunction with the acquisition or construction of additional hospital facilities. (G)
"Hospital receipts" means all moneys received by or on
behalf of a hospital agency from or in connection with the
ownership, operation, acquisition, construction, improvement,
equipping, or financing of any hospital facilities, including,
without limitation thereto, any rentals and other moneys received
from the lease, sale, or other disposition of hospital
facilities,
and any gifts, grants, interest subsidies, or other
moneys
received under any federal program for assistance in
financing the
costs of hospital facilities, and any other gifts,
grants, and
donations, and receipts therefrom, available for
financing the
costs of hospital facilities. (H)
"Obligations" means bonds, notes, or other evidences
of
indebtedness or obligation, including interest coupons
pertaining
thereto, issued or issuable by a public hospital
agency to pay
costs of hospital facilities. (I)
"Bond service charges" means principal, interest, and
call premium, if any, required to be paid on obligations. (J)
"Bond proceedings" means one or more ordinances,
resolutions, trust agreements, indentures, and other agreements
or
documents, and amendments and supplements to the foregoing, or
any
combination thereof, authorizing or providing for the terms,
including any variable interest rates,, including any variable interest rates, and conditions applicable
to, or providing for the security of, obligations and the
provisions contained in such obligations. (K)
"Nursing home" has the same meaning as in division
(A)(1)
of section 5701.13 of the Revised Code. (L)
"Residential care facility" has the same meaning as in
division (A)(2)
of section 5701.13 of the Revised Code. (M)
"Adult care facility" has the same meaning as in
division
(A)(3) of section 5701.13 of the Revised Code. (N)
"Independent living facility" means any self-care
facility or other housing facility designed or used as a
residence
for elderly persons. An
"independent living facility"
does not
include a residential facility, or that part of a
residential
facility, that is any of the following: (1) A hospital required to be certified by section 3727.02
of the Revised Code; (2) A nursing home or residential care facility; (3) An adult care facility; (4) A hospice licensed under section 3712.04 of the
Revised
Code; (5) A habilitation center as defined in section 5123.041
of
the Revised Code; (6) A residential facility for the mentally ill licensed
by
the department of mental health under section 5119.22 of the
Revised Code; (7) A facility licensed to provide methadone treatment
under
section 3793.11 of the Revised Code; (8) A facility certified as an alcohol and drug addiction
program under
section 3793.06 of the Revised Code; (9) A residential facility licensed under section 5123.19
of
the Revised Code or a facility providing services under a
contract
with the department of mental retardation and
developmental
disabilities under section 5123.18 of the Revised
Code; (10) A residential facility used as part of a hospital to
provide housing for staff of the hospital or students pursuing a
course of study at the hospital.
Sec. 140.03. (A) Two or more hospital agencies may enter
into agreements for the acquisition, construction,
reconstruction, rehabilitation, remodeling, renovating,
enlarging, equipping, and furnishing of hospital facilities, or
the management, operation, occupancy, use, maintenance, and
repair of hospital facilities, or for participation in programs,
projects, activities, and services useful to, connected with,
supplementing, or otherwise related to the services provided by,
or the operation of, hospital facilities operated by one or more
participating hospital agencies, including any combination of
such purposes, all in such manner as to promote the public
purpose stated in section 140.02 of the Revised Code. A city
health district; general health district; board of alcohol, drug
addiction, and mental health services; county board of mental
retardation and developmental disabilities; the department of
mental health; the department of mental retardation and
developmental disabilities; or any public body engaged in the
education or training of health professions personnel may join in
any such agreement for purposes related to its authority under
laws applicable to it, and as such a participant shall be
considered a public hospital agency or hospital agency for the
purposes of this section. No trustee, officer, or director of a hospital agency who has entered into an agreement with another hospital agency will be considered to have an interest in the profits or benefits of the agreement solely by virtue of being a trustee, officer, or director. (B) An agreement entered into under authority of this
section shall, where appropriate, provide for: (1) The manner in which the title to the hospital
facilities, including the sites and interest in real estate
pertaining thereto, is to be held, transferred, or disposed of; (2) Unless provided for by lease pursuant to section
140.05 of the Revised Code, the method by which such hospital
facilities are to be acquired, constructed, or otherwise improved
and by which they shall be managed, occupied, maintained, and
repaired, including the designation of one of the hospital
agencies to have charge of the details of acquisition,
construction, or improvement pursuant to the contracting
procedures prescribed under the law applicable to one of the
participating public hospital agencies; (3) The management or administration of any such programs,
projects, activities, or services, which may include management
or administration by one of said hospital agencies or a board or
agency thereof; (4) Annual, or more frequent, reports to the participating
hospital agencies as to the revenues and receipts pertaining to
the subject of the agreement, the expenditures thereof, the
status and application of other funds contributed under such
agreement, and such other matters as may be specified by or
pursuant to such agreement; (5) The manner of apportionment or sharing of costs of
hospital facilities, any other applicable costs of management,
operation, maintenance, and repair of hospital facilities, and
costs for the programs, projects, activities, and services
forming the subject of the agreement, which apportionment or
sharing may be prescribed in fixed amounts, or determined by
ratios, formulas, or otherwise, and paid as service charges,
rentals, or in such other manner as provided in the agreement,
and may include amounts sufficient to meet the bond service
charges and other payments and deposits required under the bond
proceedings for obligations issued to pay costs of hospital
facilities. A hospital agency may commit itself to make such
payments at least for so long as any such obligations are
outstanding. In the apportionment, different classes of costs or
expenses may be apportioned to one or more, all or less than all,
of the participating hospital agencies as determined under such
agreement. (C) An agreement entered into under authority of this
section may provide for: (1) An orderly process for making determinations or
advising as to planning, execution, implementation, and
operation, which may include designating one of the hospital
agencies, or a board thereof, for any of such purposes,
provisions for a committee, board, or commission, and for
representation thereon, or as may otherwise be provided; (2) Securing necessary personnel, including participation
of personnel from the respective hospital agencies; (3) Standards or conditions for the admission or
participation of patients and physicians; (4) Conditions for admittance of other hospital agencies
to participation under the agreement; (5) Fixing or establishing the method of determining
charges to be made for particular services; (6) The manner of amending, supplementing, terminating, or
withdrawal or removal of any party from, the agreement, and the
term of the agreement, or an indefinite term; (7) Designation of the applicants for or recipients of any
federal, state, or other aid, assistance, or loans available by
reason of any activities conducted under the agreement; (8) Designation of one or more of the participating
hospital agencies to maintain, prepare, and submit, on behalf of
all parties to the agreement, any or all records and reports with
regard to the activities conducted under the agreement; (9) Any incidental use of the hospital facilities, or
services thereof, by participating public hospital agencies for
any of their lawful purposes, which incidental use does not
impair the character of the facilities as hospital facilities for
any purpose of this chapter; (10) Such other matters as the parties thereto may agree
upon for the purposes of division (A) of this section. (D) For the purpose of paying or contributing its share
under an agreement made under this section, a public hospital
agency may: (1) Expend any moneys from its general fund, and from any
other funds not otherwise restricted by law, but including funds
for permanent improvements of hospital facilities of such public
hospital agency where the contribution is to be made toward the
costs of hospital facilities under the agreement, and including
funds derived from levies for, or receipts available for,
operating expenses of hospital facilities or services of such
public hospital agency where the contribution or payment is to be
made toward operating expenses of the hospital facilities or
services under the agreement or for the services provided
thereby; (2) Issue obligations under Chapter 133. or sections
140.06, 339.14, 339.15, 513.12, or 3345.12 of the Revised Code,
or Section 3 of Article XVIII, Ohio Constitution, if applicable
to such public hospital agency, to pay costs of hospital
facilities, or issue obligations under any other provision of law
authorizing such public hospital agency to issue obligations for
any costs of hospital facilities; (3) Levy taxes under Chapter 5705. or section 513.13 or
3709.29 of the Revised Code, if applicable to such public
hospital agency, provided that the purpose of such levy may
include the provision of funds for either or both permanent
improvements and current expenses if required for the
contribution or payment of such hospital agency under such
agreement, and each such public hospital agency may issue notes
in anticipation of any such levy, pursuant to the procedures
provided in section 5705.191 of the Revised Code if the levy is
solely for current expenses, and in section 5705.193 of the
Revised Code if the levy is all or in part for permanent
improvements; (4) Contribute real and personal property or interest
therein without necessity for competitive bidding or public
auction on disposition of such property. (E) Any funds provided by public hospital agencies that
are parties to an agreement entered into under this section shall
be transferred to and placed in a separate fund or funds of such
participating public hospital agency as is designated under the
agreement. The funds shall be applied for the purposes provided
in such agreement and are subject to audit. Pursuant to any
determinations to be made under such agreement, the funds shall
be deposited, invested, and disbursed under the provisions of law
applicable to the public hospital agency in whose custody the
funds are held. This division is subject to the provisions of
any applicable bond proceedings under section 133.08, 140.06,
339.15, or 3345.12 of the Revised Code or Section 3 of Article
XVIII, Ohio Constitution. The records and reports of such public
hospital agency under Chapter 117. of the Revised Code and
sections 3702.51 to 3702.62 of the Revised
Code, with respect to the funds shall be sufficient without
necessity for reports thereon by the other public hospital
agencies participating under such agreement. (F)(1) Prior to its entry into any such agreement, the
public hospital agency must determine, and set forth in a
resolution or ordinance, that the contribution to be made by it
under such agreement will be fair consideration for value and
benefit to be derived by it under such agreement and that the
agreement will promote the public purpose stated in section
140.02 of the Revised Code. (2) If the agreement is with a board of county
commissioners, board of county hospital trustees, or county
hospital commission and is an initial agreement for the
acquisition or operation of a county hospital operated by a board
of county hospital trustees under section 339.06 of the Revised
Code, the governing body of the public hospital agency shall
submit the resolution to the board of county commissioners
pursuant to section 339.091 of the Revised Code. If the board of
county commissioners adopts a resolution under that section, it
shall submit the resolution to the electors of the county
pursuant to section 339.092 of the Revised Code. The
requirements of division (F)(2) of this section do not apply to
the agreement if one or more hospitals classified as general
hospitals by the public health council under section 3701.07 of
the Revised Code are operating in the same county as the county
hospital.
Sec. 140.051. If the costs of the hospital facilities are
to be paid with funds derived from revenue obligations issued
pursuant to section 140.06 of the Revised Code and with other
funds derived from the nonprofit hospital agency, a public
hospital agency, pursuant to negotiation and in the manner
determined in its sole discretion by the governing body of the
public hospital agency, may enter into a contract for the
acquisition, construction, improvement, equipment, or furnishing
of a hospital facility that is to be leased pursuant to section
140.05 of the Revised Code by a public hospital agency to a
nonprofit hospital agency. Any requirement of competitive
bidding, other restriction, or other procedures that are imposed
on a public hospital agency with respect to contracts is not
applicable to any contract entered into pursuant to this section. A hospital facility is not exempt from applicable zoning,
planning, and building regulations by reason of being financed
from the proceeds of obligations issued pursuant to this chapter.
Section 2. That existing sections 140.01 and 140.03 and section 140.051 of the Revised Code are hereby repealed.
Section 3. (A) Except as provided in division (B) of this section, the amendments to divisions (B), (D), (E), (F), and (J) of section 140.01 of the Revised Code and the repeal and reenactment of section 140.051 of the Revised Code by this act are intended to confirm and validate the amendments to those divisions of section 140.01 of the Revised Code and the enactment of section 140.051 of the Revised Code by Am. Sub. S. B. 109 of the 113th General Assembly. This confirmation and validation is advisable to eliminate any legal challenge that has been or may be raised concerning the constitutionality of those amendments and that enactment by Am. Sub. S.B. 109 of the 113th General Assembly on the grounds that they may have violated the following requirements contained in Section 15 of Article II, Ohio Constitution:
(1) That no bill shall contain more than one subject, which shall be clearly expressed in its title;
(2) That every bill shall be considered by each house on three different days, unless two-thirds of the members elected to the house in which it is pending suspend the requirement.
(B) The amendments to division (D) of section 140.01 of the Revised Code by this act, insofar as they re-enact the phrase "director of development," are intended to ratify the amendments made to that division by Am. Sub. S.B. 227 of the 115th General Assembly enacted subsequent to the amendments enacted in that division by Am. Sub. S.B. 109 of the 113th General Assembly.
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