Chapter 630 Oregon Laws 1999

Session Law

AN ACT

SB 1096

Relating to health districts; amending ORS 440.320, 440.360, 440.365 and 440.375.

Whereas the Forty-ninth Legislative Assembly enacted significant health district legislation in 1957 and only minor changes have been made to that legislation; and

Whereas health care has undergone dramatic changes in the past 42 years; and

Whereas Oregon's health districts need the ability to adapt to modern health care standards and to respond to the evolving needs of the communities they serve; now, therefore,

Be It Enacted by the People of the State of Oregon:

SECTION 1. ORS 440.320 is amended to read:

440.320. (1)(a) Districts may be incorporated as municipal corporations for the [purpose] purposes of: [supplying their inhabitants with facilities for the care of sick and injured persons as provided in ORS 440.315 to 440.410.]

(A) Providing clinically related diagnostic, treatment and rehabilitative services on an inpatient or outpatient basis;

(B) Providing outreach programs in health care education, health care research and patient care;

(C) Serving as a resource for health care providers in the district; and

(D) Promoting the physical and mental health and well-being of district residents.

(b) Such municipal corporations may consist of territory in one or more counties, or of a city with or without unincorporated territory. A city shall not be divided in the formation of a health district.

(c) A health district may provide services to persons residing outside its boundaries. A health district organized under ORS 440.315 to 440.410 may provide services within the boundaries of another health district organized under ORS 440.315 to 440.410 only with the written permission of that health district.

(2) A health district organized under ORS 440.315 to 440.410 may include within its boundaries all or any part of the territory of a port district organized under ORS chapter 777 if the port district does not then operate a hospital.

SECTION 2. ORS 440.360 is amended to read:

440.360. [(1)] Any corporation formed under this chapter shall have all the powers necessary to carry out the purposes of ORS 440.315 to 440.410, including, but not [confined] limited to, the following:

[(a) To sue and be sued.]

[(b) To contract and be contracted with.]

[(c) To adopt the form of corporate structure deemed by the board to be most effective in carrying out the purposes of the health district, including subsidiary nonprofit corporations owned and controlled by the district as may be organized for specific purposes not inconsistent with the general purposes of the district.]

[(d) To have and use a corporate seal, and to alter the same at pleasure.]

[(e) To purchase, acquire and possess such real and personal property, including clinical and nonclinical property, as may be necessary or convenient to carry into effect the objectives of the corporation, to enter into agreements to lease any such real and personal property for a term not to exceed 30 years, with or without an option to purchase the property, to take, hold and possess real and personal property, purchased from, or donated by, the United States, or any state, territory, county, city or other municipal corporation or any person, firm, association or private corporation for the purpose of aiding in the objects of the corporation, to lease all or any part of the real and personal property of the district, including entering into an agreement for a lease for operation of the district property, or any part thereof, for a term not to exceed 30 years and to dispose of in any manner all or part of the real or personal property of the district.]

[(f) To acquire, by purchase, lease or otherwise, facilities to provide health services, as defined in ORS 442.015, and to provide the health services in conjunction with or separate from the hospital facilities of the district.]

[(g) To appoint subordinate officers, agents, employees, staff and other personnel as the needs of the corporation may require, and to prescribe their duties and compensation.]

[(h) To prescribe and maintain a system of records in accordance with accepted standards of hospital administration.]

[(i) To adopt, amend, carry out and enforce rules with respect to any or all of the following:]

[(A) Admission of patients.]

[(B) Nursing personnel, laboratory personnel, dieticians and other skilled personnel.]

[(C) Laboratories, sanitation and other facilities of the hospital and their use.]

[(D) Admission to and conduct in the hospital of persons desiring to diagnose or treat any disease, injury or other physical or mental condition in such hospitals, or who may diagnose or treat any disease, injury or other physical or mental condition in such hospitals if such rules are in conformance with ORS 441.055 (3) to (6).]

[(E) Providing for application for membership and affiliation with any association of hospitals which has for its purpose the elevation of the standards of hospital care and necessary to qualify for such membership and affiliation.]

[(j) To construct, purchase, acquire by gift or otherwise, equipment and other property in connection therewith and to operate and maintain a hospital or long term care facility, as defined in ORS 442.015, and conduct such hospital business or facility business within the district.]

[(k) To enter into cooperative agreements with one or more public or private hospital-related organizations for carrying out any of the purposes or powers of the district.]

[(L) To provide ambulance service by contracting for such service or by acquiring the equipment and personnel necessary for the operation of such service.]

[(m) To construct, purchase, equip, operate, and maintain medical offices or clinic facilities within the district, including but not limited to carrying out such activities as a landlord, lessor or general partner in a limited partnership.]

[(n) To contract short-term indebtedness or to borrow temporarily money for any hospital purpose on its credit or on its patient revenues.]

[(o) To do all other things necessary to carry out the purposes of ORS 440.315 to 440.410.]

[(2) The following health districts are authorized to acquire, by purchase, lease or otherwise, facilities to provide assisted living services and residential care services, as defined by the Senior and Disabled Services Division by rule, and to provide assisted living services and residential care services in conjunction with or separate from the facilities of the district:]

[(a) The Malheur Memorial Hospital District; and]

[(b) The Clatsop Care Center Health District.]

(1) To provide directly or indirectly any physical or mental health related service.

(2) To make any contract or agreement, to purchase and lease real and personal property, to enter into business arrangements or relationships with public or private entities and to create and participate fully in the operation of any business structure, including the development of business structures and arrangements for health care delivery systems and managed care plans.

(3) To participate in community sponsored health screening, prevention, wellness, improvement or other activities that address the physical or mental health needs of district residents. Such participation may include clinical, financial, administrative, volunteer or other support considered appropriate by the board.

(4) To perform any other acts that in the judgment of the board are necessary or appropriate to accomplish the purposes of ORS 440.315 to ORS 440.410.

SECTION 3. ORS 440.365 is amended to read:

440.365. A health district [shall charge sick and injured persons for the use of its hospital] is authorized to charge persons who use district facilities and services [rendered in connection therewith and fix and collect the rates therefor].

SECTION 4. ORS 440.375 is amended to read:

440.375. (1) For the purpose of carrying into effect the powers granted by ORS 440.315 to 440.410, a health district, when authorized at any properly called election held for that purpose, may borrow money and sell and dispose of general obligation bonds.

(2) If prior to April 1, 1983, a health district had outstanding indebtedness incurred pursuant to ORS 440.360 (1)(k) (1997 Edition), a health district may issue general obligation bonds pursuant to this section in an amount not to exceed the unpaid principal of and interest on such indebtedness plus costs incidental to the bonds to be sold.

(3) The general obligation bonds outstanding at one time shall never exceed in the aggregate two and one-half percent of the real market value of all taxable property within the district, computed in accordance with ORS 308.207.

(4) Notwithstanding the provisions of subsection (3) of this section, if the district has within its limits a population of 300 or over, it shall be permitted to have bonds outstanding in an amount which shall not exceed in the aggregate 10 percent of the real market value.

(5) The bonds shall be issued from time to time by the district board in behalf of the health district as authorized by its electors.

Approved by the Governor July 12, 1999

Filed in the office of Secretary of State July 12, 1999

Effective date October 23, 1999

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