CHAPTER 51
SENATE BILL No. 151
An Act concerning county and district hospitals;
amending K.S.A. 19-4601, 19-4608,
80-2501 and 80-2518 and repealing the existing
sections.
Be it enacted by the Legislature of the State of Kansas:
Section 1. K.S.A. 19-4601 is hereby amended to
read as follows: 19-
4601. As used in this act:
(a) ``Board'' means a hospital board which is selected
in accordance
with the provisions of this act and which is vested with the
management
and control of a county hospital;
(b) ``commission'' means the board of county
commissioners of any
county;
(c) ``hospital'' means a medical care facility as
defined in K.S.A. 65-
425 and amendments thereto and includes within its meaning any
clinic,
school of nursing, long-term care facility, limited care
residential facility
and, child-care facility and joint
enterprises for the provision of health
care services operated in connection with the operation of
the medical
care facility.;
(d) ``hospital moneys'' means, but is not limited to,
moneys acquired
through the issuance of bonds, the levy of taxes, the receipt of
grants,
donations, gifts, bequests, interest earned on investments
authorized by
this act and state or federal aid and from fees and charges for use
of and
services provided by the hospital.;
(e) As used in this section, a
``limited care residential facility'' means
a facility, other than an adult care home, in which there are
separate
apartment-style living areas, bedrooms, bathrooms and individual
utilities
and in which some health related services are
available.;
(f) ``joint enterprises'' means a business
undertaking by a hospital and
one or more public or private entities for the provision of
health care
services.
Sec. 2. K.S.A. 19-4608 is hereby amended to read
as follows: 19-
4608. (a) All hospital moneys, except moneys acquired through the
issu-
ance of revenue bonds, shall be paid to the treasurer of the board,
shall
be allocated to and accounted for in separate funds or accounts of
the
hospital, and shall be paid out only upon claims and warrants or
warrant
checks as provided in K.S.A. 10-801 to 10-806, inclusive, and
K.S.A. 12-
105a and 12-105b, and amendments to these statutes. The board
may
designate a person or persons to sign such claims and warrants or
warrant
checks.
(b) The board may accept any grants, donations, bequests
or gifts to
be used for hospital purposes and may accept federal and state aid.
Such
moneys shall be used in accordance with the terms of the grant,
donation,
bequest, gift or aid and if no terms are imposed in connection
therewith
such moneys may be used to provide additional funds for any
improve-
ment for which bonds have been issued or taxes levied.
(c) Hospital moneys shall be deemed public moneys and
hospital
moneys not immediately required for the purposes for which
acquired
may be invested in accordance with the provisions of K.S.A. 12-1675
and
amendments thereto. Hospital moneys acquired through the receipt
of
grants, donations, bequests or gifts and deposited pursuant to the
provi-
sions of K.S.A. 12-1675 and amendments thereto need not be secured
as
required under K.S.A. 9-1402 and amendments thereto. In
addition, hos-
pital moneys may be invested in joint enterprises for the
provision of
health care services as permitted by subsection (c) of K.S.A.
19-4601 and
amendments thereto.
(d) Hospital moneys which are deposited to the credit of
funds and
accounts which are not restricted to expenditure for specified
purposes
may be transferred to the general fund of the hospital and used for
op-
eration of the hospital or to a special fund for additional
equipment and
capital improvements for the hospital.
(e) The board shall keep and maintain complete financial
records in
a form consistent with generally accepted accounting principles,
and such
records shall be available for public inspection at any reasonable
time.
(f) Notwithstanding subsections (a) to (e), inclusive,
the board may
transfer any moneys or property a hospital receives by donation,
contri-
bution, gift, devise or bequest to a Kansas not-for-profit
corporation
which meets each of the following requirements:
(1) The corporation is exempt from federal income
taxation under
the provisions of section 501(a) by reason of section 501(c)(3) of
the
internal revenue code of 1954, as amended;
(2) the corporation has been determined not to be a
private foun-
dation within the meaning of section 509(a)(1) of the internal
revenue
code of 1954, as amended; and
(3) the corporation has been organized for the purpose
of the char-
itable support of health care, hospital and related services,
including the
support of ambulance, emergency medical care, first responder
systems,
medical and hospital staff recruitment, health education and
training of
the public and other related purposes.
(g) The board may transfer gifts under subsection (f) in
such amounts
and subject to such terms, conditions, restrictions and limitations
as the
board determines but only if the terms of the gift do not otherwise
restrict
the transfer. Before making any such transfer, the board shall
determine
that the amount of money or the property to be transferred is not
required
by the hospital to maintain its operations and meet its
obligations. In
addition, the board shall determine that the transfer is in the
best interests
of the hospital and the residents within the county the hospital
has been
organized to serve.
Sec. 3. K.S.A. 80-2501 is hereby amended to read
as follows: 80-
2501. As used in this act:
(a) ``Board'' means a hospital board which is selected
in accordance
with the provisions of this act and which is vested with the
management
and control of an existing hospital or a hospital established under
the
provisions of this act;
(b) ``hospital'' means a medical care facility as
defined in K.S.A. 65-
425 and amendments thereto and includes within its meaning any
clinic,
long-term care facility, limited care residential retirement
facility, child-
care facility and, emergency medical or
ambulance service operated in
connection with the operation of the medical care facility and
joint en-
terprises for the provision of health care services operated in
connection
with the operation of the medical care facility;
(c) ``hospital moneys'' means, but is not limited to,
moneys acquired
through the issuance of bonds, the levy of taxes, the receipt of
grants,
donations, gifts, bequests, interest earned on investments
authorized by
this act and state or federal aid and from fees and charges for use
of and
services provided by the hospital;
(d) ``existing hospital'' means a hospital established
under the provi-
sions of article 21 of chapter 80 of Kansas Statutes Annotated and
acts
amendatory of the provisions thereof or supplemental thereto prior
to
the effective date of this act and being maintained and operated on
the
effective date of this act;
(e) ``political subdivision'' means a township, a city
or a hospital dis-
trict established under the provisions of article 21 of chapter 80
of Kansas
Statutes Annotated and acts amendatory of the provisions thereof or
sup-
plemental thereto prior to the effective date of this act or
established
under this act;
(f) ``qualified elector'' means any person who has been
a bona fide
resident within the territory included in the taxing district of a
hospital
for 30 days prior to the date of any annual meeting or election
provided
for in this act and who possesses the qualifications of an elector
provided
for in the laws governing general elections;
(g) As used in this section, a ``limited care
residential retirement fa-
cility'' means a facility, other than an adult care home, in which
there are
separate apartment-style living areas, bedrooms, bathrooms and
individ-
ual utilities; which facility is available only to individuals 55
years of age
or older; and which facility has at least the following
characteristics: (1)
A common recreational and dining area; (2) planned recreation and
social
gatherings; (3) laundry facilities or services and housecleaning
services;
(4) special dietary programs providing at least one meal per day;
(5) or-
ganized wellness programs; (6) a 24-hour emergency call system in
each
unit staffed by the hospital district; (7) a nursing staff from the
hospital
district on 24-hour call for residents; and (8) availability of
additional
health related services, laundry services, housekeeping, means for
indi-
viduals with special or additional
needs.;
(h) ``joint enterprise'' means a business undertaking
by a hospital and
one or more public or private entities for the provision of
health care
services.
Sec. 4. K.S.A. 80-2518 is hereby amended to read
as follows: 80-
2518. (a) All hospital moneys, except moneys acquired through the
issu-
ance of revenue bonds, shall be paid to the treasurer of the board,
shall
be allocated to and accounted for in separate funds or accounts of
the
hospital, and shall be paid out only upon claims and warrants or
warrant
checks as provided in K.S.A. 10-801 to 10-806, inclusive, and
K.S.A. 12-
105a and 12-105b, and amendments to these statutes. The board
may
designate a person or persons to sign such claims and warrants or
warrant
checks.
(b) The board may accept any grants, donations, bequests
or gifts to
be used for hospital purposes and may accept federal and state aid.
Such
moneys shall be used in accordance with the terms of the grant,
donation,
bequest, gift or aid and if no terms are imposed in connection
therewith
such moneys may be used to provide additional funds for any
improve-
ment for which bonds have been issued or taxes levied.
(c) Hospital moneys shall be deemed public moneys and
hospital
moneys not immediately required for the purposes for which
acquired
may be invested in accordance with the provisions of K.S.A. 12-1675
and
amendments thereto. Hospital moneys acquired through the receipt
of
grants, donations, bequests or gifts and deposited pursuant to the
provi-
sions of K.S.A. 12-1675 and amendments thereto need not be secured
as
required under K.S.A. 9-1402 and amendments thereto. In
addition, hos-
pital moneys may be invested in joint enterprises for the
provision of
health care services as permitted by subsection (b) of K.S.A.
80-2501 and
amendments thereto.
(d) Hospital moneys which are deposited to the credit of
funds and
accounts which are not restricted to expenditure for specified
purposes
may be transferred to the general fund of the hospital and used for
op-
eration of the hospital or to a special fund for additional
equipment and
capital improvements for the hospital.
(e) The board shall keep and maintain complete financial
records in
a form consistent with generally accepted accounting principles,
and such
records shall be available for public inspection at any reasonable
time.
(f) Notwithstanding subsections (a) to (e), inclusive,
the board may
transfer any moneys or property a hospital receives by donation,
contri-
bution, gift, devise or bequest to a Kansas not-for-profit
corporation
which meets each of the following requirements:
(1) The corporation is exempt from federal income
taxation under
the provisions of section 501(a) by reason of section 501(c)(3) of
the
internal revenue code of 1954, as amended;
(2) the corporation has been determined not to be a
private foun-
dation within the meaning of section 509(a)(1) of the internal
revenue
code of 1954, as amended; and
(3) the corporation has been organized for the purpose
of the char-
itable support of health care, hospital and related services,
including the
support of ambulance, emergency medical care, first responder
systems,
medical and hospital staff recruitment, health education and
training of
the public and other related purposes.
(g) The board may transfer gifts under subsection (f) in
such amounts
and subject to such terms, conditions, restrictions and limitations
as the
board determines but only if the terms of the gift do not otherwise
restrict
such transfer. Before making any such transfer, the board shall
determine
that the amount of money or the property to be transferred is not
required
by the hospital to maintain its operations and meet its
obligations. In
addition, the board shall determine that the transfer is in the
best interests
of the hospital and the residents within the district the hospital
has been
organized to serve.
Sec. 5. K.S.A. 19-4601, 19-4608, 80-2501 and
80-2518 are hereby
repealed.
Sec. 6. This act shall take effect and be in force
from and after its
publication in the statute book.
Approved April 10, 2003.
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