34-9-1
City power to establish and maintain hospital--Leases--Agreements with county.
34-9-1.1
Repealed.
34-9-2
Types of institutions covered.
34-9-3
Repealed.
34-9-4
Counties permitted to assist municipal hospitals.
34-9-5
County commissioners' resolution to aid city hospital--Method of financing.
34-9-6
Repealed.
34-9-7
Superseded.
34-9-7.1
County aid in operation of hospital established by first or second class municipality.
34-9-8
Town power to maintain hospitals and dispensaries--Acceptance of donations and
federal grants.
34-9-9
Transfer of surplus municipal funds to private hospitals authorized.
34-9-10
Conditions for transfer of municipal funds to private hospital--Transfer of tax funds
prohibited.
34-9-11
Donation of municipal hospital property to nonprofit corporation--Use by corporation
as health care facility or medical clinic.
34-9-12
Conditions for transfer of municipal property to corporation.
34-9-13
Funds or property acquired through taxes not transferred to corporation.
34-9-14
Approval of municipality required for sale of real property by corporation.
34-9-1. City power to establish and maintain hospital--Leases--Agreements with county.
Every city may:
(1) Establish, construct, purchase, and maintain hospitals and medical clinics and regulate the same;
(2) Lease any hospital and medical facilities to persons and private or public corporations, limited liability companies, associations, or other organizations for the purpose of operation for a period, not to exceed ninety-nine years, provided that in the opinion of the governing body the needs of the municipality can best be served thereby;
(3) Receive and accept financial aid from counties for the erection and construction of public hospitals upon such conditions as may be agreed upon and to irrevocably obligate itself to repay such county for such aid out of common revenue in the event the operation and maintenance of the hospital is discontinued or abandoned for any cause by the city.
Source: SL 1887, ch 73, art IV, subdiv 61; CL 1887, § 885, subdiv 61; SL 1890, ch 37, art V, § 1, subdiv 62; RPolC 1903, § 1229, subdiv 62; SL 1913, ch 119, § 53; RC 1919, § 6170 (10); SDC 1939, § 45.0202(2); SL 1947, ch 196; SL 1951, ch 240; SL 1959, ch 265; SL 1964, ch 140; SL 1968, ch 180; SL 1978, ch 62, § 34; SL 1992, ch 60, § 2; SL 1994, ch 351, § 55.
34-9-2. Types of institutions covered.
In § 34-9-1, the term "hospital" may be construed to include a nursing facility or a home for the aged.
Source: SDC 1939, § 45.0202 (2) as added by SL 1959, ch 265; SL 1964, ch 140; SL 1968, ch 180.
34-9-4. Counties permitted to assist municipal hospitals.
The provisions of § 34-9-5 shall apply to all counties.
Source: SL 1947, ch 222, § 3; SDC Supp 1960, § 27.19A01; SL 1971, ch 201, § 1; SL 1971, ch 202, § 1.
34-9-5. County commissioners' resolution to aid city hospital--Method of financing.
If a first or second class municipality within a county which has no established county hospital makes provisions to construct, equip, and operate a public hospital having a capacity of not less than twenty patients and the board of county commissioners determines that the operation of a hospital will be beneficial to the public and that a necessity exists for it and, in order to provide to the public a hospital facility, it will be necessary for the county to provide financial aid to the municipality for the cost to construct a hospital building, it may, by appropriate resolution, declare a public necessity to exist and that it is desirable that the county render financial aid to the municipality in an amount not to exceed one-half of the cost to construct a hospital building and that the funds may be made available:
(1) Out of unappropriated funds belonging to the county; or
(2) By issuance and sale of its general obligation bonds pursuant to chapter 7-24.
Source: SL 1947, ch 222, § 1; SDC Supp 1960, § 27.19A02; SL 1984, ch 43, § 114; SL 1985, ch 77, § 22; SL 1992, ch 60, § 2.
34-9-7.1. County aid in operation of hospital established by first or second class municipality.
Whenever a first or second class municipality has established a hospital as provided by § 34-9-5, and without regard to whether a county has participated in the cost of its construction as provided in § 34-9-5, the board of county commissioners may, by appropriate resolution, render financial aid to such first or second class municipality for the cost of equipment, operation, and maintenance of such hospital. The term "hospital" as used in this section shall not include a nursing facility or a home for the aged.
Source: SL 1971, ch 201, § 2; SL 1971, ch 202, § 2; SL 1992, ch 60, § 2.
34-9-8. Town power to maintain hospitals and dispensaries--Acceptance of donations and federal grants.
In addition to other powers granted, municipalities of the third class, as defined by law, shall have power to establish, construct, and maintain hospitals and medical dispensaries and to regulate the same.
In constructing, or establishing any such hospital or medical dispensary such municipalities are authorized to receive and accept gifts or donations of money or property to be used for such purpose and are further authorized to cooperate with any federal agency in order to secure the benefits of any federal aid project in establishing and constructing any such hospital or medical dispensary so far as such project may be practical and beneficial.
Source: SL 1941, ch 208; SDC Supp 1960, § 45.0206.
34-9-9. Transfer of surplus municipal funds to private hospitals authorized.
Authority is hereby granted to municipalities to transfer surplus funds accumulated through special municipal revenue producing enterprises to private hospital corporations towards the cost of construction of any hospital to be constructed or now under construction or towards the retirement of any indebtedness incurred in the construction of a hospital in such municipality; provided such transfer of funds shall be made through a majority vote of the governing body of the municipality and accepted by a majority vote of the directors of such hospital corporation.
Source: SL 1949, ch 200, § 1; SL 1953, ch 259; SDC Supp 1960, § 45.1437.
34-9-10. Conditions for transfer of municipal funds to private hospital--Transfer of tax funds prohibited.
A municipality may not transfer surplus funds under § 34-9-9 unless:
(1) No other hospital operates within the municipality and the Department of Health has issued no license for the operation of a hospital within the municipality;
(2) At least fifty percent of the total cost of the construction project has been raised from sources other than those to be derived through the transfer of the surplus funds, based upon estimates of any architect or firm of architects registered by the Board of Technical Professions; and
(3) The articles of incorporation of the hospital corporation provide that no part of the hospital corporation's earnings shall inure, or may lawfully inure, to the benefit of any member or private shareholder.
Funds acquired through legal tax levy in the municipality may not be transferred.
Source: SL 1949, ch 200, §§ 1, 2; SL 1953, ch 259; SDC Supp 1960, § 45.1437; SL 1990, ch 309, § 4; SL 2019, ch 176, § 1.
34-9-11. Donation of municipal hospital property to nonprofit corporation--Use by corporation as health care facility or medical clinic.
In addition to other powers granted, any municipality may by resolution give to a nonprofit corporation, real and personal property owned by the municipality and used by it in the operation of a health care facility as defined in § 34-12-1.1 or a medical clinic. However, the transfer of property shall be accepted by a majority vote of the directors of the nonprofit corporation, and the property transferred, or the proceeds from the sale thereof, shall be used by the nonprofit corporation in the operation of a health care facility as defined in § 34-12-1.1 or a medical clinic.
Source: SL 1972, ch 191; SL 2000, ch 164, § 1.
34-9-12. Conditions for transfer of municipal property to corporation.
No transfer of property shall be made pursuant to § 34-9-11 except under the conditions as set forth in subdivisions 34-9-10(1) and (3).
Source: SL 1972, ch 191.
34-9-13. Funds or property acquired through taxes not transferred to corporation.
No funds or property shall be transferred pursuant to § 34-9-11 that are acquired through legal tax levy in the municipality.
Source: SL 1972, ch 191.
34-9-14. Approval of municipality required for sale of real property by corporation.
Should the nonprofit corporation receiving the property desire to dispose of any of the real property transferred pursuant to § 34-9-11 through sale to a third party, the approval of the municipality must first be obtained.
Source: SL 1972, ch 191.
