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STATE OF OKLAHOMA
2nd Session of the 59th Legislature (2024)
SENATE BILL 1269 By: Burns
AS INTRODUCED
An Act relating to hospitals; defining term; creating
the Rural Hospital Replacement Grant Program;
directing development of application pr ocess and
scoring criteria; specifying certain selection
criteria; limiting use of funds; restricting location
of new hospital; creating the Rural Hospital
Replacement Revolving Fund; specifying type of fund
and source of monies; providing for expenditure of
funds; authorizing promulgation of rules; prov iding
for codification; provid ing an effective date; and
declaring an emergency.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of l aw to be codified
in the Oklahoma Statutes as Section 3241.21 of Title 63, unless
there is created a duplication in numbering, reads as follows:
A. As used in this section, “qualifying rural hospital ” means a
hospital that is:
1. Licensed by the State Department of Health;
2. Located in a county of this state that has:
a. a population of not greater than fifty thousand
(50,000) as reported in the most recent Federal
Decennial Census published by the United State Census
Bureau, and
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b. a poverty rate of not less than nineteen percent (19%)
as reported in the most recent Federal Decennial
Census published by the United State Census Bureau;
and
3. Is in a hazardous, unsafe, or derelict condition such that
renovation would be significantly more costly than demolition and
construction of a new hospital.
B. There is hereby created the Rural Hospital Replacement Grant
Program. The grant program shall be administered by the State
Department of Health for the purpose of providing fu nding to support
the construction of new hospitals to replace qualifying ru ral
hospitals.
C. The Rural Hospital Replacement Grant Program shall be
available to qualifying rural hospitals. The Department shall
develop an application process and a scoring criter ia for evaluating
applicants. Awardees shall be selected based upon the severity of
the qualifying rural hospital’s condition, availability of matching
funds for the project, and such other criteria as may be established
by the Department.
D. The governing entity of a qualifying rural hospital that
receives a grant under this section may only use grant funds fo r
costs directly related to demolition and constru ction of a new
hospital. The governing entity shall locate the new hosp ital as
close as possible to the qualifying rural hospital. In no event
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shall the new hospital be located more than twenty (20) miles away
from the qualifying rural h ospital.
E. There is hereby created in the State Treasury a revolving
fund for the State Department of Health to be designated the “Rural
Hospital Replacement Revolving Fund ”. The fund shall be a
continuing fund, not subject to fiscal year limitations, and shall
consist of all monies received by the Department from legislative
appropriations provided for the purpose of administering grants
under this section. All monies accruing to the credit of the fund
are hereby appropriated and may be budgeted and expended by the
Department for the purpose provided for in this subsection.
Expenditures from the fund shall be made upon warrants issued by the
State Treasurer against claims filed as prescribed by law with the
Director of the Office of Management and Enterprise Services for
approval and payment.
F. The State Commissioner of Health may promul gate rules as
necessary to implement this section.
SECTION 2. This act shall become effective July 1, 2024.
SECTION 3. It being immediately necessary for the preservation
of the public peace, health or safety, an emergency is hereby
declared to exist, by reason whereof th is act shall take effect and
be in full force from and after its passage and approval.
59-2-2382 DC 12/8/2023 4:17:00 PM