ENROLLED
Senate Bill No. 416
(By Senators Tomblin, Mr. President, Helmick and Jackson)
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[Passed March 9, 1996; in effect ninety days from passage.]
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AN ACT to amend article twenty-three, chapter eight of the code
of West Virginia, one thousand nine hundred thirty-one, as
amended, by adding thereto a new section, designated section
three-a, relating to the authority of certain hospitals to
enter into joint and cooperative undertakings; authorizing
certain hospitals to cooperate with both public and private
agencies; authorizing the expenditure of public funds,
allocation of personnel and contribution of certain property
for purposes of joint and cooperative undertakings; and
imposing limitations with respect to joint and cooperative
undertakings by hospitals.
Be it enacted by the Legislature of West Virginia:
That article twenty-three, chapter eight of the code of West
Virginia, one thousand nine hundred thirty-one, as amended, be
amended by adding thereto a new section, designated section
three-a, to read as follows:
ARTICLE 23. INTERGOVERNMENTAL RELATIONS -- CONTRACTING AND JOINT
ENTERPRISES.
§8-23-3a. Joint and cooperative undertakings by certain
hospitals.
Any county or municipal hospital or hospital created by
special act of the Legislature may enter into a joint or
cooperative undertaking pursuant to this article and may further
enter into joint or cooperative undertakings with private
agencies or corporations in accordance with this section. The
expenditure of public funds, allocation of personnel and
provision of services for joint and cooperative undertakings are
authorized. The undertaking may include the creation of a
separate entity to carry out the purpose of the undertaking and,
if appropriate in connection with the undertaking, may include
provision for the ownership or control of all or a portion of the
separate entity by the hospital. The contribution of funds
derived from the operation of a hospital, and real or personal
property acquired in connection with the operation of the hospital, may be contributed to the joint undertaking or separate
entity, if the hospital owns or controls all or a portion of the
separate entity or joint undertaking. All joint and cooperative
undertakings are subject to the following limitations:
(1) All joint and cooperative undertakings entered into by
a hospital are subject to the provisions of article two-d,
chapter sixteen of this code;
(2) For any joint and cooperative undertaking entered into
by a hospital, which undertaking involves the expenditure of
public funds and includes the creation of a separate entity to
carry out the purpose of the undertaking, the separate entity
created is subject to the provisions of article nine-a, chapter
six and articles five-b and five-g, chapter sixteen of this code;
(3) For any joint and cooperative undertaking entered into
by a hospital, which undertaking involves the expenditure of
public funds and includes the creation of a separate entity to
carry out the purpose of the undertaking, the separate entity
created is subject to the same charity care obligation as the
hospital;
(4) The board of the hospital must find by resolution that
the purposes of the joint and cooperative undertaking further the same public purpose and are in keeping with the mission and
vision for which the hospital was created;
(5) Appropriate action by resolution of the governing board
of the hospital is necessary before any agreement for a joint or
cooperative undertaking may take effect. For any joint and
cooperative undertaking which involves the contribution of real
property acquired in connection with the operation of the
hospital, appropriate action by ordinance, resolution or
otherwise pursuant to the law of the governing body of the
municipality, in the case of a municipal hospital; by ordinance,
resolution or otherwise pursuant to the law of the county
commission in the case of a county hospital; or appropriate
action by ordinance, resolution or otherwise pursuant to the law
of both the municipality where the hospital is located and the
county commission of the county where the hospital is located, in
the case of a hospital created by special act of the Legislature
and involving the contribution of public funds of both counties
and municipalities, shall be necessary before any agreement for
a joint or cooperative undertaking may take effect. An agreement
entered into by a hospital pursuant to this section shall contain
substantially the same provisions as set forth in section three of this article. No agreement made pursuant to the provisions of
this section shall relieve any hospital of any obligation or
responsibility imposed upon it by law, except to the extent that
actual and timely performance thereof by a joint board or other
legal or administrative entity created by an agreement made
hereunder may be offered in satisfaction of the obligation or
responsibility; and
(6) No agreement for a joint and cooperative undertaking
entered into pursuant to this article may contain any provision
intended to or having the effect of reducing reimbursements to
local or community-based emergency services or ambulance
providers, or reducing the extent to which services are provided
by local or community-based emergency services or ambulance
providers in the geographic area served by a provider.
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