EXPLANATION-Matter enclosed in bold-faced brackets [thus] in this bill is not enacted
and is intended to be omitted in the law.
FIRST REGULAR SESSION
SENATE BILL NO. 244
103RD GENERAL ASSEMBLY
INTRODUCED BY SENATOR CRAWFORD.
0790S.02I KRISTINA MARTIN, Secretary
AN ACT
To repeal sections 96.192, 96.196, and 206.110, RSMo, and to enact in lieu thereof four new
sections relating to hospitals.
Be it enacted by the General Assembly of the State of Missouri, as follows:
Section A. Sections 96.192, 96.196, and 206.110, RSMo, 1
are repealed and four new sections enacted in lieu thereof, to 2
be known as sections 96.192, 96.196, 206.110, a nd 206.158, to 3
read as follows:4
96.192. 1. The board of trustees of any hospital 1
authorized under subsection 2 of this section, and 2
established and organized under the provisions of sections 3
96.150 to 96.229, may invest up to [twenty-five] fifty 4
percent of [the hospital's] its funds not required for 5
immediate disbursement in obligations or for the operation 6
of the hospital [in any United States investment grade fixed 7
income funds or any diversified stock funds, or both ] into: 8
(1) Any mutual funds that invest in stocks, bonds, or 9
real estate, or any combination thereof; 10
(2) Bonds that have: 11
(a) One of the five highest long -term ratings or the 12
highest short-term rating issued by a nationally recognized 13
rating agency; and 14
(b) A final maturity of ten years or less; 15
(3) Money-market investments; or 16 SB 244 2
(4) Any combination of investments described in 17
subdivisions (1) to (3) of this subsection. 18
The board shall invest the remaining percentage of funds not 19
required for immediate disbursement into any investment in 20
which the state treasurer is allowed to invest . 21
2. The provisions of this section shall only apply if 22
the hospital: 23
(1) Receives less than [one] three percent of its 24
annual revenues from munic ipal, county, or state taxes; and 25
(2) Receives less than [one] three percent of its 26
annual revenue from appropriated funds from the municipality 27
in which such hospital is located. 28
96.196. 1. A hospital organized under this chap ter 1
may purchase, operate or lease, as lessor or lessee, related 2
facilities or engage in health care activities, except in 3
counties of the third or fourth classification (other than 4
the county in which the hospital is located) where there 5
already exists a hospital organized pursuant to this chapter 6
[and chapter 205 or 206 ]; provided, however, that this 7
exception shall not prohibit the continuation of existing 8
activities otherwise allowed by law. 9
2. If a hospital organized pursuant to this chap ter 10
accepts appropriated funds from the city during the twelve 11
months immediately preceding the date that the hospital 12
purchases, operates or leases its first related facility 13
outside the city boundaries or engages in its first health 14
care activity outside the city boundaries, the governing 15
body of the city shall approve the hospital's plan for such 16
purchase, operation or lease prior to implementation of the 17
plan. 18 SB 244 3
206.110. 1. A hospital district, both within and 1
outside such district, except in counties of the third or 2
fourth classification (other than within the district 3
boundaries) where there already exists a hospital organized 4
pursuant to [chapters 96, 205 or] this chapter; provided, 5
however, that this exception shall no t prohibit the 6
continuation or expansion of existing activities otherwise 7
allowed by law, shall have and exercise the following 8
governmental powers, and all other powers incidental, 9
necessary, convenient or desirable to carry out and 10
effectuate the express powers: 11
(1) To establish and maintain a hospital or hospitals 12
and hospital facilities, and to construct, acquire, develop, 13
expand, extend and improve any such hospital or hospital 14
facility including medical office buildings to provide 15
offices for rental to physicians and dentists on the 16
district hospital's medical or dental staff, and the 17
providing of sites therefor, including offstreet parking 18
space for motor vehicles; 19
(2) To acquire land in fee simple, rights in land and 20
easements upon, over or across land and leasehold interest 21
in land and tangible and intangible personal property used 22
or useful for the location, establishment, maintenance, 23
development, expansion, extension or improvement of any 24
hospital or hospital facility. The acquisition may be by 25
dedication, purchase, gift, agreement, lease, use or adverse 26
possession or by condemnation; 27
(3) To operate, maintain and manage a hospital and 28
hospital facilities, and to make and enter into contracts, 29
for the use, operation or management of a hospital or 30
hospital facilities; to engage in health care activities; 31
and to make and enter into leases of equipment and real 32 SB 244 4
property, a hospital or hospital facilities, as lessor or 33
lessee, regardless of the duration of such lease; and to 34
provide rules and regulations for the operation, management 35
or use of a hospital or hospital facilities. Any agreement 36
entered into pursuant to this subsection pertaining to the 37
lease of the hospital shall have a definite termination da te 38
as negotiated by the parties, but this shall not preclude 39
the trustees from entering into a renewal of the agreement 40
with the same or other parties pertaining to the same or 41
other subjects upon such terms and conditions as the parties 42
may agree; 43
(4) To fix, charge and collect reasonable fees and 44
compensation for the use or occupancy of the hospital or any 45
part thereof, or any hospital facility, and for nursing 46
care, medicine, attendance, or other services furnished by 47
the hospital or hospi tal facilities, according to the rules 48
and regulations prescribed by the board from time to time; 49
(5) To borrow money and to issue bonds, notes, 50
certificates, or other evidences of indebtedness for the 51
purpose of accomplishing any of its corporate purposes, 52
subject to compliance with any condition or limitation set 53
forth in this chapter or otherwise provided by the 54
Constitution of the state of Missouri; 55
(6) To employ or enter into contracts for the 56
employment of any person, firm, or corpo ration, and for 57
professional services, necessary or desirable for the 58
accomplishment of the corporate objects of the district or 59
the proper administration, management, protection or control 60
of its property; 61
(7) To maintain the hospital for the be nefit of the 62
inhabitants of the area comprising the district who are 63
sick, injured, or maimed regardless of race, creed or color, 64 SB 244 5
and to adopt such reasonable rules and regulations as may be 65
necessary to render the use of the hospital of the greatest 66
benefit to the greatest number; to exclude from the use of 67
the hospital all persons who willfully disregard any of the 68
rules and regulations so established; to extend the 69
privileges and use of the hospital to persons residing 70
outside the area of the di strict upon such terms and 71
conditions as the board of directors prescribes by its rules 72
and regulations; 73
(8) To police its property and to exercise police 74
powers in respect thereto or in respect to the enforcement 75
of any rule or regulation provid ed by the ordinances of the 76
district and to employ and commission police officers and 77
other qualified persons to enforce the same; 78
(9) To lease to or allow for any institution of higher 79
education to use or occupy the hospital, any real estate or 80
facility owned or leased by the district or any part thereof 81
for the purpose of health care -related and general education 82
or training. 83
2. The use of any hospital or hospital facility of a 84
district shall be subject to the reasonable regulation and 85
control of the district and upon such reasonable terms and 86
conditions as shall be established by its board of directors. 87
3. A regulatory ordinance of a district adopted under 88
any provision of this section may provide for a suspension 89
or revocation of any rights or privileges within the control 90
of the district for a violation of any such regulatory 91
ordinance. 92
4. Nothing in this section or in other provisions of 93
this chapter shall be construed to authorize the district or 94
board to establish or enforce any regulation or rule in 95
respect to hospitalization or the operation or maintenance 96 SB 244 6
of such hospital or any hospital facilities within its 97
jurisdiction which is in conflict with any federal or state 98
law or regulation applicable to the sam e subject matter. 99
206.158. 1. The board of trustees of any hospital 1
authorized under subsection 2 of this section, and 2
established and organized under the provisions of sections 3
206.010 to 206.160, may invest up to fifty percent of its 4
funds not required for immediate disbursement in obligations 5
or for the operation of the hospital into: 6
(1) Any mutual funds that invest in stocks, bonds, or 7
real estate, or any combination thereof; 8
(2) Bonds that have: 9
(a) One of the five highest long -term ratings or the 10
highest short-term rating issued by a nationally recognized 11
rating agency; and 12
(b) A final maturity of ten years or less; 13
(3) Money-market investments; or 14
(4) Any combination of investments desc ribed in 15
subdivisions (1) to (3) of this subsection; 16
The board shall invest the remaining percentage of funds not 17
required for immediate disbursement into any investment in 18
which the state treasurer is allowed to invest. 19
2. The provisions of this section shall only apply if 20
the hospital district receives less than three percent of 21
its annual revenues from hospital district or state taxes. 22