FINAL BILL REPORT

SB 5116

C 37 L 11

Synopsis as Enacted

Brief Description: Concerning public health district authority as it relates to gifts, grants, conveyances, bequests, and devises of real or personal property.

Sponsors: Senators Swecker, Hatfield and Parlette.

Senate Committee on Government Operations, Tribal Relations & Elections

House Committee on Local Government

Background: The enabling legislation for public hospital districts (PHD) was enacted in 1945. PHDs are special purpose districts. They are created by a process that begins either by petition of 10 percent of the voters in the proposed district, or by resolution of the county legislative authority. In either case, creation of the district requires a hearing and a simple majority vote of the voters of the proposed district with the total votes cast being more than 40 percent of the total number of votes cast in the proposed district at the preceding state general election.

A PHD may be county-wide, less than county-wide, or encompass an area lying in more than one county. In no event may the boundaries divide any existing precinct boundaries or voting precincts.

Governance is by a board of three, five, or seven commissioners who must be registered voters residing in the commissioner district from which they are elected. Voters of the entire PHD may vote at a primary or general election to elect the commissioners of their respective commissioner districts.

PHDs are junior taxing districts. Besides regular property taxes of up to $0.75 per $1000 of assessed valuation, excess property taxes may be levied by a vote of the voters of the PHD.

PHDs also have the authority to contract or join with any other PHD, corporations, individuals, or others to provide health care services. This may be accomplished by establishing a nonprofit corporation or other legal entity of the PHD's choosing.

Summary: PHDs may solicit and accept gifts of personal or real property; sell, invest or spend the proceeds from the gifts; and enter into contracts with for-profit or nonprofit organizations for these purposes, including, but not limited to, contracts for the use of the PHD's facilities, property, personnel, or services.

Votes on Final Passage: