H-3568

AN ACT Relating to cooperative activities by local governments; amending RCW 39.34.030, 39.34.040, 39.34.060, 39.34.080, and 39.34.090; adding new sections to chapter 70.44 RCW; creating a new section; and repealing RCW 39.34.050 and 39.34.120.

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

NEW SECTION. Sec. 1. The legislature finds that maintaining the viability of health care service delivery in rural areas of Washington is a primary goal of state health policy. The legislature also finds that most hospitals located in rural Washington are operated by public hospital districts authorized under chapter 70.44 RCW and declares that it is not cost-effective, practical, or desirable to provide quality health and hospital care services in rural areas on a competitive basis because of limited patient volume and geographic isolation. It is the intent of this act to foster the development of cooperative and collaborative arrangements among rural public hospital districts by specifically authorizing cooperative agreements and contracts for these entities under the interlocal cooperation act.

NEW SECTION. Sec. 2. A new section is added to chapter 70.44 RCW to read as follows:

Unless the context clearly requires otherwise, the definition in this section applies throughout section 3 of this act.

"Rural public hospital district" means a public hospital district authorized under chapter 70.44 RCW whose geographic boundaries do not include a city with a population greater than thirty thousand.

NEW SECTION. Sec. 3. A new section is added to chapter 70.44 RCW to read as follows:

In addition to other powers granted to public hospital districts by chapter 39.34 RCW, rural public hospital districts may enter into cooperative agreements and contracts with other rural public hospital districts in order to provide for the health care needs of the people served by the hospital districts. These agreements and contracts are specifically authorized to include:

(1) Allocation of health care services among the different facilities owned and operated by the districts;

(2) Combined purchases and allocations of medical equipment and technologies;

(3) Joint contracts for health care service delivery and payment with public and private entities; and

(4) Other cooperative arrangements consistent with the intent of chapter ---, Laws of 1992 (this act). The provisions of chapter 39.34 RCW shall apply to the development and implementation of the cooperative contracts and agreements.

Sec. 4. RCW 39.34.030 and 1990 c 33 s 568 are each amended to read as follows:

(1) Any power or powers, privileges or authority exercised or capable of exercise by a public agency of this state may be exercised and enjoyed jointly with any other public agency of this state having the power or powers, privilege or authority, and jointly with any public agency of any other state or of the United States to the extent that laws of such other state or of the United States permit such joint exercise or enjoyment. Any agency of the state government when acting jointly with any public agency may exercise and enjoy all of the powers, privileges and authority conferred by this chapter upon a public agency.

(2) Any two or more public agencies may enter into agreements with one another for joint or cooperative action pursuant to the provisions of this chapter: PROVIDED, That any such joint or cooperative action by public agencies which are educational service districts and/or school districts shall comply with the provisions of RCW 28A.320.080. Appropriate action by ordinance, resolution or otherwise pursuant to law of the governing bodies of the participating public agencies shall be necessary before any such agreement may enter into force.

(3) Any such agreement shall specify the following:

(a) Its duration;

(b) The precise organization, composition and nature of any separate legal or administrative entity created thereby together with the powers delegated thereto, provided such entity may be legally created. Such entity may include a nonprofit corporation organized pursuant to chapter 24.03 or 24.06 RCW whose membership is limited solely to the participating public agencies or a partnership organized pursuant to chapter 25.04 or 25.10 RCW whose partners are limited solely to participating public agencies and the funds of any such corporation or partnership shall be subject to audit in the manner provided by law for the auditing of public funds;

(d) The manner of financing the joint or cooperative undertaking and of establishing and maintaining a budget therefor;

(e) The permissible method or methods to be employed in accomplishing the partial or complete termination of the agreement and for disposing of property upon such partial or complete termination;

(f) Any other necessary and proper matters.

(4) In the event that the agreement does not establish a separate legal entity to conduct the joint or cooperative undertaking, the agreement shall, in addition to items (a), (c), (d), (e) and (f) enumerated in subdivision (3) hereof, contain the following:

(a) Provision for an administrator or a joint board responsible for administering the joint or cooperative undertaking. In the case of a joint board, public agencies party to the agreement shall be represented;

(b) The manner of acquiring, holding and disposing of real and personal property used in the joint or cooperative undertaking. Any joint board is authorized to establish a special fund with a state, county, city, or district treasurer servicing an involved public agency designated "Operating fund of .......... joint board".

(5) No agreement made pursuant to this chapter shall relieve any public agency of any obligation or responsibility imposed upon it by law except that to the extent of actual and timely performance thereof by a joint board or other legal or administrative entity created by an agreement made hereunder, said performance may be offered in satisfaction of the obligation or responsibility.

(6) Financing of joint projects by agreement shall be as provided by law.

Sec. 5. RCW 39.34.040 and 1967 c 239 s 5 are each amended to read as follows:

Prior to its entry into force, an agreement made pursuant to this chapter shall be filed with the ((~~city clerk~~)) and county auditor and with the secretary of state. In the event that an agreement entered into pursuant to this chapter is between or among one or more public agencies of this state and one or more public agencies of another state or of the United States said agreement shall have the status of an interstate compact, but in any case or controversy involving performance or interpretation thereof or liability thereunder, the public agencies party thereto shall be real parties in interest and the state may maintain an action to recoup or otherwise make itself whole for any damages or liability which it may incur by reason of being joined as a party therein. Such action shall be maintainable against any public agency or agencies whose default, failure of performance, or other conduct caused or contributed to the incurring of damage or liability by the state.

Sec. 6. RCW 39.34.060 and 1967 c 239 s 7 are each amended to read as follows:

Any public agency entering into an agreement pursuant to this chapter may appropriate funds and may sell, lease, give, or otherwise supply property, personnel, and services to the administrative joint board or other legal or administrative entity created to operate the joint or cooperative undertaking ((~~by providing such personnel or services therefor as may be within its legal power to furnish~~)).

Sec. 7. RCW 39.34.080 and 1967 c 239 s 9 are each amended to read as follows:

Any one or more public agencies may ((~~contract~~)) enter into agreements with any one or more other public agencies to perform any governmental service, activity, or undertaking which each public agency entering into the ((~~contract~~)) agreement is authorized by law to perform: PROVIDED, That such ((~~contract~~)) agreement shall be authorized by the governing body of each party to the ((~~contract~~)) agreement. Such ((~~contract~~)) agreement shall set forth fully the purposes, powers, rights, objectives, and responsibilities of the ((~~contracting~~)) parties to the agreement.

Sec. 8. RCW 39.34.090 and 1967 c 239 s 10 are each amended to read as follows:

Nothing in this chapter shall be construed to increase or decrease existing authority of any public agency of this state to enter into agreements ((~~or contracts~~)) with any other public agency of this state or of any other state or the United States with regard to the generation, transmission, or distribution of electricity or the existing powers of any private or public utilities.

NEW SECTION. Sec. 9. The following acts or parts of acts are each repealed:

(1) RCW 39.34.050 and 1967 c 239 s 6; and

(2) RCW 39.34.120 and 1967 c 239 s 13.