Chap. 344.—An ACT to provide for the creation in the political subdivisions of
the Commonwealth of hospital or health center commissions for the purpose of
establishing and operating hospitals or health centers for such political sub-
divisions ; and to prescribe the rights, powers, duties and functions of such
commissions when so formed, including the acquisition, construction, main-
tenance and operation of hospitals and health centers, borrowing money, is-
suing revenue bonds or other obligations, and giving security et B37 B 378}

Approved March 27, 1946

Be it enacted by the General Assembly of Virginia:

1. Section 1. In each county and town, and in each group of two
or more of such political subdivisions of which the governing bodies
thereof shall declare by proper resolution at any time hereafter that there
is need of a hospital or health center to function therein, there is hereby
created a public body corporate, with such public and corporate powers
as are set forth in this act, to be known as the hospital or health center
commission thereof ; provided, however, that such commission shall not
transact any business or exercise its powers hereunder until or unless the
governing body of the subdivision, or the governing bodies of the sub-
divisions in the event more than one unite fo or the purpose, shall declare
at any time hereafter that there is need for a hospital or health center
commission to function therein.

The governing body or bodies, as the case may be, may adopt a reso-
lution declaring that there is need for a hospital or health center com-
mission in such political subdivision or subdivisions, if it or they shall
find that the public health and welfare, including the health and welfare
of persons of low income in such subdivision or subdivisions and sur-
rounding area require the acquisition, construction or operation of pub-
lic hospital facilities for the inhabitants thereof.

In any suit, action, or proceeding involving the validity or enforce-
ment of or relating to any contract of the hospital or health center com-
mission, such commission shall be conclusively deemed to have become
created hereby as a body corporate, and to have become established and
authorized to transact business and exercise its powers hereunder, upon
proof of the adoption of a resolution by the governing body of each coun-
ty or town for which the commission is created declaring that there is need
or such commission, and, if more than one political subdivision is in-
volved, that it unites with the other political subdivisions in declaring
such needs. A copy of such resolution, duly certified by the clerk of the
county or town by which it is adopted, shall be admissible in evidence in
‘any suit, action or proceeding.

Section 2. A hospital or health center commission shall consist of
the following number of members based upon the number of political
subdivisions participating: For. one political subdivision, five members;
for two, six members; for three, six members; for four, eight members ;
and for more than four, one member from each of the participating sub-
divisions. The respective members shall be appointed by the governing
bodies of the subdivisions they represent, shall be residents of such sub-
divisions, and shall be appointed for such terms as the appointing body
shall designate. The members of the commission so appointed shall
constitute the commission,’ and the powers of the commission hereby
conferred shall be vested in and exercised by the members in office from
time to time. A majority of the members in office shall constitute a
quorum. The commission shall elect its own chairman, and shall adopt
rules and regulations for its own procedure and government. The mem-
bers of the commission shall rece1ve no compensation for their services,
but shall be paid their actual expenses incurred in the performance of
their duties. Any member of the commission may be removed at any
‘time by the governing body appointing him, and vacancies on the com-
mission shall be filled for the unexpired terms.

Section 3. Any hospital or health center commission established
hereunder shall have all powers necessary or convenient to carry out the
general purposes of this act, including the following powers in addition
to others herein granted:

(1) To sue and be sued; to adopt a seal and alter the same at pleas-
ure; to have perpetual succession; and to make and execute contracts
and other instruments necessary or convenient to the exercise of its pow-
ers.

(2) To employ such ‘technical experts, and such other officers,
agents and employees as it may require, to fix their qualifications, duties
and compensation and to remove such employees at pleasure.

(3) To acquire within the territorial limits of the political sub-
divisions for which it is formed, by purchase, lease, gift or otherwise,
whatever lands, buildings and structures may be reasonably necessary for
the purpose of establishing, constructing, enlarging, maintaining and
operating one or more hospitals or health centers.

(4) To acquire, establish, construct, enlarge, improve, maintain,
equip and operate any hospital or health center, and any other facilities
and services for the care and treatment of sick persons.

(5) To make and enforce rules and regulations for the manage-
ment and conduct of its business and affairs and for the use, maintenance
and operation of its facilities and properties.

(6) To accept gifts and grants from the State of Virginia or any
political subdivision thereof, and from the United States and any of its
agencies; and to accept donations of money, personal property or real
estate, and take title thereto from any person, firm, corporation or asso-
ciation.
(7) To make rules and regulations governing the admission, care
and treatment of patients in such hospital or health center, to classify
patients as to charges to be paid by them, if any, and to determine the
nature and extent of the service to be rendered patients.

(8) To comply with the provisions of the laws of the United States
and the State of Virginia, and any rules and regulations made there-
under, for the expenditure of Federal or State money in connection with
hospitals or health centers, and to accept, receive and receipt for Federal
and State money granted the commission, or granted any of the political
subdivisions for which it 1s formed, for hospital or health center purposes.

(9) To borrow money upon its bonds, notes, debentures, or other
evidences of indebtedness issued for the purpose only of acquiring, con-
structing, improving, furnishing or equipping buildings or structures for
use as a hospital or health center, and to secure the same by pledges of its
revenues as hereafter provided.

(10) To execute all instruments necessary or convenient in con-
nection with the borrowing of money and the issuance of bonds as here-
in authorized.

Section 4. The political subdivisions for which the commission is
created are hereby authorized to make appropriations to the commission
from available funds, or from funds provided for the purpose by bond
issues, for the construction, improvement, maintenance and operation of
any hospital or health center operated or proposed to be operated by the
commission.

Section 5. Any bonds issued by a hospital or health center com-
mission may be issued in one or more series, shall bear such date or
dates, mature at such time or times, bear interest at such rate or rates
not to exceed four per centum per annum payable at such time or times,
be in such denominations, be in such form, either coupon or registered,
carry such registration privileges, be executed in such manner, be pay-
able in such medium of payment, at such place or places, be subject to
such terms of redemption, with or without premium, as the commission
by resolution may prescribe. Such bonds may be sold at public or private
sale for such price or prices as the commission shall determine, provided
that the interest cost to maturity of the money received from any issue
of such bonds shall not exceed four per centum per annum.

Section 6. Any resolution or resolutions of the commission au-
thorizing the issuance of any bonds may contain provisions, which shall
be a part of the contract with the holders of the bonds, pledging any or.
all revenues of the hospital or health center to secure the payment of the
interest on such bonds and to create a sinking fund to retire the principal
thereof at maturity; providing for such schedule of fees and charges as
will produce funds sufficient to pay operating costs and debt service until
such bonds are retired ; and prescribing the rights, obligations, powers and
duties of the commission, the trustee under any trust indenture under
which the bonds are issued, and the bondholders, in connection with or
pertaining to such bonds.

Section 7. Any bonds issued pursuant to the authority of this act
are hereby made securities in which all public officers and bodies of this
State and all political subdivisions thereof, all insurance companies and
associations, all savings banks and savings institutions, including savings
and loan associations, in the State may properly and legally invest funds
in their control.

Section 8. Any bonds issued under this act shall be payable only
from the revenues and receipts of the hospital or health center for the
acquisition, establishment or construction of which the bonds were issued.
The bonds and other obligations of the commission shall not be a debt of
any county or town or of the Commonwealth, and neither the members
of the commission nor any person executing the bonds or other obliga-
tions shall be liable personally thereon by reason of the issuance thereof.

Section 9. No interest of the commission in any property, real or
personal, shall be subject to sale by foreclosure of a mortgage, trust in-
denture, or any other instrument thereon or relating thereto, either
through judicial proceedings or the exercise of a power of sale contained
in the instrument. All property of the commission shall be exempt from
levy and sale by virtue of an execution, and no execution or judicial
process shall issue against such commission. No judgment against the
commission shall be a charge or lien upon its property, real or personal.

Section 10. The commission, may by its trust indenture given to
secure bond issues or other obligations, provide for the appointment of
a receiver of the hospital or health center or that part thereof acquired
or constructed from funds received from a sale of bonds secured by the
pledge of its revenues. If any such receiver be appointed, he may enter
and take possession of such hospital or health center or part thereof,
and operate and maintain same, and collect and receive all fees, rents,
revenues or other charges arising therefrom in the same manner as the
commission might do, and keep such moneys in a separate account or
accounts, and apply the same in accordance with the obligations of the
commission as the court shall direct.

Section 11. Eminent domain.—The commission shall have the right
to acquire by eminent domain any real property, including fixtures and
improvements, which it may deem necessary to carry out the purposes of
this act after the adoption by it of a resolution declaring that the acquisi-
tion of the property described therein is in the public interest and nec-
essary for public use. The commission may exercise the power of
eminent domain pursuant to the provisions of any applicable statutory
provisions now in force or hereafter enacted for the exercise of the power
of eminent domain by any county or town.

Property already devoted to a public use may be acquired, provided,
that no property belonging to any county or town or to any government
or to any religious or charitable corporation may be acquired without its
consent.

Section 12. The commission shall keep and preserve complete rec-
ords of its operations, and transactions, which records shall be open to
inspection by the participating subdivisions at all times. It shall make
reports to such subdivisions annually, and at such other times as they may
require.
Section 13. If any provision of this act, or the application thereof to
any person or circumstances, is held invalid, the remainder of this act and
the application of such provision to other persons or circumstances shall
not be affected thereby.