BILL REQ. #:  S-3630.1 

Read first time 01/24/14.   Referred to Committee on Governmental Operations.

     AN ACT Relating to joint venture agreements involving public hospital districts; amending RCW 70.44.240; and creating a new section.

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

NEW SECTION.  Sec. 1   The legislature finds that public hospital districts engaging in joint ventures should not delegate key elements of governmental authority with which they have been vested under Washington law. The legislature therefore intends to provide direction to public hospital districts regarding limits on delegation of authority pursuant to joint venture agreements.

Sec. 2   RCW 70.44.240 and 2004 c 261 s 7 are each amended to read as follows:
     (1)(a) Any public hospital district may contract or join with any other public hospital district, publicly owned hospital, nonprofit hospital, legal entity, or individual to acquire, own, operate, manage, or provide any hospital or other health care facilities or hospital services or other health care services to be used by individuals, districts, hospitals, or others, including providing health maintenance services.
     (b) Notwithstanding (a) of this subsection, a public hospital district may not delegate authority granted in this chapter to:
     (i) Exercise the right of eminent domain;
     (ii) Contract indebtedness or borrow money;
     (iii) Raise revenue by levying a property tax;
     (iv) Adopt a budget;
     (v) Make or amend a management agreement;
     (vi) Sue and be sued in any court of competent jurisdiction;
     (vii) Employ or discharge a superintendent, attorney, or other management employee;
     (viii) Annex or withdraw territory; or
     (ix) Oversee acquisition of any interest in a hospital owned by the public hospital district.
     (2) If a public hospital district chooses to contract or join with another party or parties pursuant to the provisions of this chapter, it may do so through establishing a nonprofit corporation, partnership, limited liability company, or other legal entity of its choosing in which the public hospital district and the other party or parties participate. The governing body of such legal entity shall include representatives of the public hospital district, which representatives may include members of the public hospital district's board of commissioners.
     (3) A public hospital district contracting or joining with another party pursuant to the provisions of this chapter may appropriate funds and may sell, lease, or otherwise provide property, personnel, and services to the legal entity established to carry out the contract or joint activity.