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Current Status Bill Number:View additional legislative information at the LPITS web site.4017 Ratification Number:285 Act Number:264 Type of Legislation:General Bill GB Introducing Body:House Introduced Date:19990429 Primary Sponsor:Ways and Means Committee HWM 30 All Sponsors:Ways and Means Committee Drafted Document Number:l:\council\bills\psd\7431ac99.doc Date Bill Passed both Bodies:20000328 Date of Last Amendment:20000314 Governor's Action:S Date of Governor's Action:20000501 Subject:Medical University of South Carolina Trustees Board, hospitals and clinics; Colleges, Medical University Hospital Authority History Body Date Action Description Com Leg Involved ______ ________ ______________________________________ _______ ____________ ------ 20000516 Act No. A264 ------ 20000501 Signed by Governor ------ 20000426 Ratified R285 House 20000328 Concurred in Senate amendment, enrolled for ratification House 20000323 Debate adjourned upon Senate amendments until Tuesday, 20000328 Senate 20000316 Read third time, returned to House with amendment Senate 20000315 Read second time, unanimous consent for third reading on Thursday, 20000316 ------ 20000315 Scrivener's error corrected Senate 20000314 Amended Senate 20000314 Recalled from Committee 04 SED Senate 20000314 Introduced, read first time, 04 SED referred to Committee ------ 20000309 Scrivener's error corrected House 20000309 Read third time, sent to Senate House 20000308 Amended, read second time House 20000301 Debate adjourned until Tuesday, 20000307 House 20000222 Debate adjourned until Tuesday, 20000229 House 20000209 Debate adjourned until Tuesday, 20000215 House 20000202 Debate adjourned until Wednesday, 20000209 House 20000126 Debate adjourned until Wednesday, 20000202 House 20000113 Debate adjourned until Tuesday, 20000125 House 19990601 Debate adjourned House 19990506 Request for debate withdrawn by Representative Lloyd Bales House 19990506 Request for debate withdrawn by Representative Clyburn House 19990505 Request for debate withdrawn by Representative Scott Pinckney Keegan House 19990504 Request for debate by Representative Scott Littlejohn Lloyd Bales Pinckney Martin Clyburn Robinson Keegan H. Brown Kelley D. Smith House 19990429 Introduced, read first time Versions of This Bill Revised on April 29, 1999 - Word format Revised on March 8, 2000 - Word format Revised on March 9, 2000 - Word format Revised on March 14, 2000 - Word format Revised on March 15, 2000 - Word format
(A264, R285, H4017)
AN ACT TO AMEND SECTION 59-123-60, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO ORGANIZATION AND POWERS OF THE BOARD OF TRUSTEES OF THE MEDICAL UNIVERSITY OF SOUTH CAROLINA, AND THE BOARD OF TRUSTEES OF THE MEDICAL UNIVERSITY OF SOUTH CAROLINA CONSTITUTING THE MEDICAL UNIVERSITY HOSPITAL AUTHORITY FOR THE MANAGEMENT AND OPERATION OF THE MEDICAL UNIVERSITY HOSPITALS AND CLINICS, SO AS TO FURTHER PROVIDE FOR THE POWERS AND DUTIES OF THE BOARD ACTING AS THE MEDICAL UNIVERSITY HOSPITAL AUTHORITY AND FOR OTHER MATTERS PERTAINING TO THE MEDICAL UNIVERSITY OF SOUTH CAROLINA AND THE AUTHORITY INCLUDING FREEDOM OF INFORMATION ACT PROVISIONS, THE EXPENDITURE, RECEIPT, AND TRANSFER OF CERTAIN FUNDS AND STATE APPROPRIATIONS, BONDING AND LEASING PROVISIONS, THE APPLICATION OF ETHICS AND ACCOUNTABILITY PROVISIONS TO MEMBERS OF THE BOARD, AND TO PROVIDE THAT THE MEDICAL UNIVERSITY HOSPITAL AUTHORITY SHALL BE THE SUCCESSOR TO THE MEDICAL UNIVERSITY OF SOUTH CAROLINA AS THE OWNER AND OPERATOR OF THE HOSPITAL, AND TO PROVIDE FOR THE EXECUTION OF APPROPRIATE DOCUMENTS REFLECTING THIS SUCCESSION; TO AMEND SECTION 8-11-260, AS AMENDED, RELATING TO EXEMPTIONS FROM STATE PERSONNEL POLICIES AND REQUIREMENTS, SO AS TO EXEMPT EMPLOYEES OF THE HOSPITAL AUTHORITY FROM BUDGET AND CONTROL BOARD PERSONNEL ADMINISTRATION; TO AMEND SECTION 8-17-370, AS AMENDED, RELATING TO EXEMPTIONS FROM STATE EMPLOYEE GRIEVANCE PROCEDURES, SO AS TO EXEMPT HOSPITAL AUTHORITY EMPLOYEES FROM THE STATE EMPLOYEE GRIEVANCE ACT; AND TO AMEND SECTION 11-35-710, AS AMENDED, RELATING TO EXEMPTIONS FROM THE STATE PROCUREMENT CODE, SO AS TO ADD AN EXEMPTION TO THE SOUTH CAROLINA CONSOLIDATED PROCUREMENT CODE FOR THE MEDICAL UNIVERSITY HOSPITAL AUTHORITY IF IT HAS PROMULGATED A PROCUREMENT PROCESS.
Be it enacted by the General Assembly of the State of South Carolina:
Medical University of South Carolina and Medical University Hospital Authority
SECTION 1. Section 59-123-60 of the 1976 Code, as amended by Part II, Section 78 of Act 100 of 1999 and by Act 116 of 1999, is further amended to read:
"Section 59-123-60. (A) The board of trustees shall elect one of its members to be chairman and is authorized to elect a university president, one or more vice presidents, and a secretary, prescribe their duties and terms of office, and fix their compensation. It shall elect teachers of professorial rank in the various colleges which make up the Medical University of South Carolina and other officers and employees as may be necessary for the proper conduct of the university and fix their compensation, the fees and charges of students, and the rules for the government of the university. The board of trustees also has the following powers:
(1) to make bylaws and regulations considered expedient for the management of its affairs and its own operations not inconsistent with the constitution and laws of this State or of the United States;
(2) to confer the appropriate degrees in medicine, dental medicine, pharmacy, nursing, health-related professions, and graduate studies in related health fields upon students and other persons as in the opinion of the board of trustees may be qualified to receive them; and
(3) to make contracts and to have, to hold, to purchase, and to lease real estate and personal property for corporate purposes; and to sell and dispose of personal property and any buildings that are considered by it as surplus property or no longer needed and any buildings that it may need to do away with for the purpose of making room for other construction. These powers must be exercised in a manner consistent with the provisions of Chapter 35 of Title 11.
(B) All revenues of the Medical University of South Carolina, the Medical University Hospital, and any funds transferred to the Medical University from a practice plan must be expended for a public purpose as that purpose is defined in the applicable state law and regulations. For purposes of this subsection, and in addition to all other applicable laws and regulations, public purposes also do not include expenditures for purchasing gifts, making political or other contributions, and reimbursing officers' and employees' travel and subsistence expenses in excess of those authorized by law for state employees away from their job site on official business.
(C) The provisions of the Freedom of Information Act apply to the Medical University Hospital Authority, except that access is not allowed under this section to patient records or insurance information with respect to patients.
(D) Members of the Medical University Board, while serving as members of the hospital authority and the officers and employees of the hospital authority, shall be subject to applicable state ethics and accountability provisions of law.
(E) As shall be provided in an implementing resolution by the Board of Trustees of the Medical University of South Carolina, the Board of Trustees of the Medical University of South Carolina becomes the governing body of the Medical University hospitals, clinics, and other health care and related facilities (hereinafter 'hospital') as shall be determined from time to time by resolution of the board. Whenever the board functions in its capacity as the governing body of the hospital, the board of trustees is constituted and designated as the Medical University Hospital Authority, an agency of the State of South Carolina (hereinafter called authority). The board, as the governing body of the authority, has the powers granted the Board of Trustees of the Medical University of South Carolina under this chapter and the following powers:
(1) make and amend bylaws for its governance consistent with the purposes of this chapter;
(2) make bylaws for the management, regulation, and operation of the hospital;
(3)(a) make contracts and have, hold, purchase, and lease real estate and personal property for corporate purposes; and sell and dispose of personal property and any buildings that are considered by it as surplus property or no longer needed and any buildings that it may need to do away with for the purpose of making room for other construction. These contracts are exempt from the South Carolina Consolidated Procurement Code and Regulations, but the authority must adopt a procurement policy requiring competitive bidding for construction contracts, which must be filed with and approved by the State Budget and Control Board;
(b) sell, convey, mortgage, lease, exchange, and otherwise dispose of any real property subject to the authority and approval of the Budget and Control Board. These activities under this subitem are exempt from all regulations and general laws governing disposal of surplus government property. The proceeds derived from the lease of any real property, net of transaction costs and payment of any debts secured by such property, shall be remitted to the MUSC Board of Trustees to be used exclusively for the support of the Medical University. The proceeds derived from the disposition of any real property, net of transaction costs and payment of any debts secured by such property, shall be remitted to the MUSC Board of Trustees to be used exclusively for the support of the Medical University;
(c) make contracts and guarantees, to incur liabilities, to issue its notes, bonds, and other obligations, and secure any of its obligations by mortgage or pledge of any of its property, or income in a manner to be in the best interest of the authority. Any guarantee or indebtedness of the authority shall not create an obligation of the State, nor shall such guarantee or indebtedness be considered a debt against the general revenue of the State;
(d) for the purpose of effectuating the provisions of subitem (c) above, utilize all provisions of the Hospital Revenue Bond Act. The issuance by the authority of any bonds, notes, or other obligations or indebtedness, except as provided in this subitem, shall be subject to the approval thereof by resolution of the State Budget and Control Board. Except for such approving resolution, the requirements of Section 44-7-1590 of the Hospital Revenue Bond Act shall be applicable to obligations issued by the authority. The authority may issue revenue anticipation notes and such notes shall have a maturity of not exceeding six months from date of issuance and shall not exceed, in the aggregate, ten percent of the net patient service revenue for the fiscal year of the authority preceding the fiscal year in which such obligations are issued;
(4) receive contributions, donations, and payments and invest and disburse its funds; provided, however, that these funds are funds which must be used for public purposes, and further, that the authority may not use or authorize the use of funds, property, or time to influence the outcome of an election;
(5) construct, operate, and maintain the hospital and related premises, buildings and facilities, and infrastructure;
(6) appoint such officers, employees, personnel, and agents of the authority and define such duties and fix their compensation in such manner as is necessary to carry out the authority's activities and affairs; the policies of the authority's personnel and employees are exempt from Budget and Control Board personnel policies and applicable laws; all personnel employed by the authority are exempt from the provisions of Article 5, Chapter 17 of Title 8, the State Employee Grievance Procedure, but the board shall adopt a grievance procedure substantially similar to the provisions of that article to govern personnel and employees of the authority, and this procedure must be filed with and approved by the State Budget and Control Board. All employees of the authority must be furnished a copy of this grievance procedure; all personnel employed by the authority are employees-at-will and are state employees for purposes of eligibility for participation in the South Carolina Retirement System, the State Health Insurance Group plans, and pursuant to the South Carolina Tort Claims Act;
(7) make pension payments to the South Carolina Retirement Systems on behalf of personnel or employees employed by the authority who qualify in the same manner as other state employees in the executive branch of government;
(8) pay contributions to the Office of Insurance Services for health and dental plans on behalf of personnel employed by the authority who qualify in the same manner as other state employees in the executive branch of government;
(9) receive, expend, and control under its own name and account any appropriated funds, federal funds, donations, and grants made available to the authority; provided, however, that these funds are funds which must be used for a public purpose, and further, that the authority may not use or authorize the use of funds, property, or time to influence the outcome of an election;
(10) conduct an annual fiscal audit by certified public accountants selected by the authority who shall review the accounts of the authority and report such findings of the audit to the Governor and the General Assembly in accordance with generally accepted auditing standards;
(11) prepare and submit an annual budget to the General Assembly and the Budget and Control Board for review;
(12) establish management controls and staffing of personnel as the authority deems most appropriate for the prudent conduct of the activities and affairs of the hospital; provided, that they establish an internal audit function that would report directly to the authority;
(13) establish such not-for-profit corporations as the board considers necessary to assist the authority in carrying out its functions; provided, that any entity created pursuant to this subsection is considered to be an entity of the authority and subject to all laws and regulations applicable to the authority under this section. The formation of for-profit corporations by the authority is strictly prohibited.
(F) Upon review of the audit report required in Section 59-123-60(E)(10), the legislature, by joint resolution, or the Governor, by Executive Order, may request audits to be completed by the State Auditors Office or the Legislative Audit Council. Based on the findings reported in the audit required in Section 59-123-60(E)(10) by the State Auditors Office or by the Legislative Audit Council, the legislature, by joint resolution, may require intervention by the Budget and Control Board for the purposes of rectifying any material findings reflected in the audits.
(G) A member of the Medical University Board, an officer in the administration of the university, including deans of the various colleges, the President of the Medical University, or any other officer of the authority or any of its affiliates who have been found guilty of malfeasance, misfeasance, incompetence, absenteeism, conflict of interest, misconduct, persistent neglect of duty in office, or incapacity shall be subject to removal by the Governor upon any of the foregoing causes being made to appear to the satisfaction of the Governor. But before removing any such person, the Governor shall inform him in writing of the specific charges against him and give him an opportunity on reasonable notice to be heard. The Governor shall appoint a successor to fill the vacancy created by his removal. The successor appointed by the Governor is to serve in that position until a successor is elected and qualified in accordance with Section 59-123-50.
(H) The authority shall offer and provide to the Medical University of South Carolina the services necessary for the training and education of health professionals.
(I) Beginning in fiscal year 2000-2001 state appropriations to the Medical University of South Carolina for support of the Medical University hospitals and clinics shall be redirected to the Department of Health and Human Services. These funds shall be used as match funds for the disproportionate share for the hospital's federal program. Any excess funding may be used for hospital base rate increases. Beginning in fiscal year 2000-2001 and in subsequent years, the Department of Health and Human Services shall pay to the Medical University of South Carolina Hospital Authority an amount equal to the amount appropriated for its disproportionate share to the Department of Health and Human Services. This payment shall be in addition to any other funds that are available to the authority from the Medicaid program inclusive of the disproportionate share for the hospital's federal program. The authority shall continue to operate the hospital as a health provider for the citizens of South Carolina and the clinical site for the education and training programs of the Medical University of South Carolina.
(J) The board, as the governing body of the authority, shall adopt a written policy for the hospital for the expenditure of public funds. Public funds may be expended for events which recognize academic and research excellence and noteworthy accomplishments of members of the faculty and staff, students, and distinguished guests of the authority. Sources of the funds for these expenditures include only nonappropriated state funds. The expenditure of funds from these sources pursuant to the written policy of the board for the purpose stated in this section are considered to meet the public purpose test for expenditure of public funds.
(K) The authority and its permanent improvements and the financing thereof shall be exempt from the provisions of Chapter 47 of Title 2, and the leasing of property and the granting of easements and rights of way by the authority shall be exempt from the provisions of Sections 1-11-55, 1-11-56, 1-11-57(1), and 10-1-130.
(L) The authority and the board of trustees as the governing body of the authority shall succeed to all of the rights, duties, and obligations of the Medical University of South Carolina and the board of trustees, respectively, as owner and operator of the hospital. All property, real, personal, tangible, or intangible (including, without limitation, deposits, investments, and accounts receivable) of the Medical University relating to the hospital shall be and become the property of the authority. The Medical University and its officers are authorized to execute and deliver such instruments of conveyance or agreements as may be determined by the board to be necessary or useful to effect or evidence such transfer."
Personnel policy exemption
SECTION 2. Section 8-11-260 of the 1976 Code, as last amended by Act 452 of 1994, is further amended by adding a new item to be appropriately lettered to read:
"( ) Employees of the Medical University Hospital Authority."
Grievance procedure exemption
SECTION 3. Section 8-17-370 of the 1976 Code, as last amended by Act 284 of 1996, is further amended by adding a new item to be appropriately numbered to read:
"( ) Employees of the Medical University Hospital Authority, provided the Medical University Hospital Authority has promulgated an employee grievance plan in accordance with its enabling provision."
Procurement exemption
SECTION 4. Section 11-35-710 of the 1976 Code, as last amended by Act 153 of 1997, is further amended by adding a new item to be appropriately lettered to read:
"( ) Medical University Hospital Authority, provided the Medical University Hospital Authority has promulgated a procurement process in accordance with its enabling provision."
Severability
SECTION 5. If any term or provision of a section of this act is found to be illegal, unconstitutional, or unenforceable, the remainder of this act is to remain in full force and effect and the illegal, unconstitutional, or unenforceable term or provision is deemed severable from the other provisions of this act.
Time effective
SECTION 6. This act takes effect upon approval by the Governor.
Ratified the 26th day of April, 2000.
Approved the 1st day of May, 2000.
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