2023 Colorado Revised Statutes › Title 25 - PUBLIC HEALTH AND ENVIRONMENT (§§ 25-1-101 — 25-59-106) › HOSPITALS (§§ 25-3-100.5 — 25-3.5-1401) › Article 3 - HOSPITALS (§§ 25-3-100.5 — 25-3-801) › Part 3 - COUNTY HOSPITALS - ESTABLISHMENT (§§ 25-3-301 — 25-3-315) › Section 25-3-304 - Trustees - powers and duties

(1)
(a)
A public hospital board of trustees shall make and adopt such bylaws, rules, and regulations for its own guidance and for the government of the hospital as it deems expedient for the economic and equitable conduct thereof, not inconsistent with state law or the ordinances of the city or town in which the public hospital is located.
(b)
The public hospital board of trustees has exclusive control of:
(I)
The use and expenditure of all money collected to the credit of the hospital, including the right to invest or have invested money held by the hospital or in the office of the county treasurer and to receive the interest and income therefrom;
(II)
The purchase of sites;
(III)
The purchase, construction, or enlargement of any hospital building; and
(IV)
The supervision, care, and custody of any grounds, rooms, or buildings that it purchases, constructs, or leases.
(c)
Except as described in subsection (1)(d) of this section, a public hospital board of trustees may acquire by lease real and personal property subject to the approval of the board of county commissioners. All tax money received for hospital purposes must be paid out of the county treasury only upon warrants drawn by the county commissioners upon sworn vouchers approved by the public hospital board of trustees. All other money received for the hospital must be deposited in the treasury of the hospital and paid out only upon order of the public hospital board of trustees. If a public hospital board of trustees acquires and holds hospital property and facilities, including real and personal property, by conveyance on transfer of title, then title to all lands must be in either the name of the county or the public hospital's corporate name for the hospital's use and benefit. County hospitals situated in home rule counties have the additional borrowing authority granted by section
30-35-201 (23)(b)
.
(d)
A public hospital board of trustees that has elected to designate its public hospital as an enterprise for purposes of section 20 of article X of the state constitution, as described in subsection (3) of this section, is not required to obtain the approval of the board of county commissioners before acquiring real or personal property by lease.
(2)
(a)
The public hospital board of trustees has the power to hire, retain, and remove agents and employees, including administrative, nursing, and professional personnel, engineers, architects, and attorneys, and to fix their compensation; has the power to borrow money and incur indebtedness, and to issue bonds and other evidence of such indebtedness; except that no indebtedness shall be created, except as otherwise provided by statute, in excess of the revenue that may reasonably be expected to be available to the hospital for repayment thereof in the fiscal year in which such indebtedness is to be created, and except that no such indebtedness shall be incurred without the approval of the board of county commissioners if the repayment of such indebtedness is dependent on tax money received for hospital purposes from the board of county commissioners; and shall in general carry out the spirit and intent of this part 3 in establishing and maintaining a county public hospital. Any indebtedness incurred by a public hospital board of trustees is an obligation of the public hospital board of trustees and not an obligation of the board of county commissioners that approved the indebtedness.
(b)
A board of public hospital trustees must hold meetings at least once each month and must keep a complete record of all its proceedings. Four members of the board constitutes a quorum for the transaction of business. One of the trustees must visit and examine said hospital at least twice each month, and the public hospital board, during the first week in each January and July, must file with the board of county commissioners a report of their proceedings with reference to such hospital and a statement of all receipts and expenditures during the half year. On or before each October first, the board must certify to the board of county commissioners the amount necessary to maintain and improve said hospital for the ensuing year. No trustee shall have a personal pecuniary interest, either directly or indirectly, in the purchase of any supplies for said hospital, unless the same are purchased by competitive bidding.
(c)
A public hospital board of trustees may offer to the general public products and services of any health-care organization, association, partnership, or corporation to the extent that the products and services are consistent with the powers and duties of a county public hospital pursuant to this part 3.
(3)
(a)
The board of public hospital trustees may, in accordance with the provisions of paragraph (b) of this subsection (3), designate the hospital as an enterprise for purposes of section 20 of article X of the state constitution so long as said board of trustees retains authority to issue revenue bonds and the hospital receives less than ten percent of its total annual revenues in grants. So long as the hospital is designated as an enterprise pursuant to the provisions of this subsection (3), the hospital shall not be subject to any of the provisions of section 20 of article X of the state constitution.
(b)
(I)
The board of public hospital trustees may, by resolution, designate the hospital as an enterprise as long as the hospital meets the requirements for an enterprise as stated in paragraph (a) of this subsection (3). Such designation shall be effective beginning with the budget year immediately following the budget year in which such resolution is adopted. Such resolution shall be adopted no sooner than ninety days and no later than thirty days prior to the commencement of the budget year in which such designation becomes effective.
(II)
The board of public hospital trustees may, by resolution, revoke the designation of the hospital as an enterprise. Such revocation shall be effective beginning with the budget year immediately following the budget year in which such resolution is adopted. Such resolution shall be adopted no sooner than ninety days and no later than thirty days prior to the commencement of the budget year in which such revocation becomes effective.
(III)
Upon adoption of any resolution pursuant to the provisions of subparagraph (I) or (II) of this paragraph (b), the board of public hospital trustees shall transmit a copy of the resolution to the division of local government in the department of local affairs and the appropriate board or boards of county commissioners.
(IV)
The termination or revocation of the designation of the hospital as an enterprise shall not affect in any manner the validity of any revenue bonds issued by the board of public hospital trustees of such hospital pursuant to subsection (4) of this section.
(c)
(I)
For purposes of this subsection (3), "grant" means any direct cash subsidy or other direct contribution of money from the state or any local government in Colorado which is not required to be repaid.
(II)
"Grant" does not include:
(A)
Any indirect benefit conferred upon a hospital from the state or any local government in Colorado;
(B)
Any revenues resulting from rates, fees, assessments, or other charges imposed by a hospital for the provision of goods or services by such hospital;
(C)
Any federal funds, regardless of whether such federal funds pass through the state or any local government in Colorado prior to receipt by a hospital.
(4)
(a)
Subject to the limitations set forth in paragraph (b) of this subsection (4), the board of public hospital trustees shall have the power to issue revenue bonds, secured by any revenues of the hospital other than property tax revenues. Notwithstanding subsection (2) of this section to the contrary, such revenue bonds may provide for their repayment over a term greater than one fiscal year. The board shall authorize the issuance of revenue bonds by resolution, duly approved by no less than two-thirds of the entire membership of the board. All bonds shall be signed by the president of the board of trustees, countersigned by the secretary of the board of trustees, and shall be numbered and registered in a book kept by the secretary or the secretary-treasurer, as applicable. Each bond shall state upon its face the amount for which such bond is issued, to whom such bond is issued, and the date of its issuance.
(b)
Except as otherwise provided in this paragraph (b), the issuance of any revenue bonds pursuant to the provisions of this subsection (4) shall not become effective for a period of thirty days following the adoption of any resolution authorizing such issuance for the purpose of allowing the board of county commissioners to review such pending bond issue. Such review period shall commence upon the date of receipt by the board of county commissioners of written notice from the board of public hospital trustees of such pending revenue bond issue. During said thirty days, the board of county commissioners may file a written notice with the board of trustees stating that the board of county commissioners has no objection to such pending bond issue. Upon receipt of such notice of no objection, the issuance of such revenue bonds shall become effective. If, within said thirty days, the board of county commissioners does not file with the board of trustees either a written notice of no objection or a written objection, the issuance of such revenue bonds shall become effective. If the board of county commissioners files a written objection, the issuance of such revenue bonds shall be prohibited until such time as the board of county commissioners gives written notice to the board of trustees of withdrawal of the board's objection.
Amended by 2023 Ch. 54, § 3, eff. 8/7/2023.
Amended by 2019 Ch. 90, § 2, eff. 8/2/2019.
L. 43: p. 277, § 4. CSA: C. 78, § 151(4). CRS 53: § 66-7-4. C.R.S. 1963: § 66-7-4. L. 73: p. 691, § 2. L. 81: (1) amended, p. 1486, § 2, effective June 8. L. 93: (3) and (4) added, p. 1817, § 1, effective June 6. L. 94: (3)(c)(II)(B) amended, p. 1640, § 59, effective May 31. L. 2019: (1) amended, (HB 19 -1065), ch. 335, p. 335, § 2, effective August 2.
2023 Ch. 54, was passed without a safety clause. See Colo. Const. art. V, § 1(3).