AN ACT
Relating to cooperative activities by local governments; amending RCW
39.34.030, 39.34.040, 39.34.050, and 39.34.060; adding new sections to chapter
70.44 RCW; and creating a new section.
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 agreements and 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 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;
(c)
Its purpose or purposes;
(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)) the
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)) the
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
39.34.050 and 1967 c 239 s 6 are each amended to read as follows:
In the
event that an agreement made pursuant to this chapter shall deal in whole or in
part with the provision of services or facilities with regard to which an
officer or agency of the state government has constitutional or statutory
powers of control, the agreement shall, as a condition precedent to its entry
into force, be submitted to the state officer or agency having such power of
control ((and)). The agreement shall be approved or disapproved
by ((him or it as to all matters within his or its jurisdiction)) the
state officer or agency with regard to matters within his, her, or its
jurisdiction within ninety days after receipt of the agreement. If a state
officer or agency fails to act within the ninety-day time limit, the agreement
shall be deemed approved by that state officer or agency.
Sec.
7. 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)).
