Okla. Stat. tit. 63, § 63-3250.6

public trust authority – Conflict of interest – Compliance with

statutes – Audits – Issuance of bonds.

A. 1. Each community hospital public trust authority shall be

a governmental entity and a body politic and corporate with powers

of government and with authority to establish and operate a hospital

district and to exercise the rights, privileges and functions

specified by the Oklahoma Community Hospitals Public Trust

Authorities Act and Sections 176 through 180.3 of Title 60 of the

Oklahoma Statutes.

2. Nothing in this subsection shall be construed as authorizing

any hospital district to levy or collect taxes or to pledge the

credit of the state or any subdivision of this state.

B. Each community hospital public trust authority shall have

the power to:

1. Adopt bylaws and promulgate rules for the regulation of its

affairs and the conduct of its business;

2. Adopt an official seal;

3. Act as a vehicle for securing funds for education, indigent

medical care, trauma, emergency and other health care services;

4. Coordinate the delivery and efficiency of health care

services within the hospital district established pursuant to the

Oklahoma Community Hospitals Public Trust Authorities Act;

5. Sue and be sued;

6. Make and enter into all contracts necessary or incidental to

the performance of its duties and the execution of its powers

pursuant to the Oklahoma Community Hospitals Public Trust

Authorities Act;

7. Purchase or lease equipment, furniture, materials and

supplies, and incur such other expenses as may be necessary to

discharge its duties and responsibilities or to implement the

provisions of the Oklahoma Community Hospitals Public Trust

Authorities Act;

8. Accept grants and other funds from agencies of this state

and the United States of America, from other government entities, or

from any corporation or agency created or designed by the United

States or other government entity, and to enter into such agreements

as the United States or such corporation or agency may require;

9. Accept grants and gifts from private individuals and

organizations;

10. Accept and make intergovernmental transfers authorized by

state law. A hospital district may make intergovernmental transfers

Oklahoma Statutes - Title 63. Public Health and Safety Page 1573

to the Oklahoma Health Care Authority to the extent permitted by

state or federal law;

11. Issue bonds and other evidences of indebtedness, and to

secure the payment thereof by mortgage, pledge, or deed of trust of,

or any other encumbrance upon, any or all of its then-owned or

after-acquired real or personal property, assets, franchises, or

revenues;

12. Become a member of other cooperatives, joint ventures,

partnerships, corporations or other legal entities or to own stock

therein;

13. Conduct its business and exercise its powers within or

without this state;

14. Assess fees, levies, assessments, or charges upon and

enforce the payment of such fees, levies, assessments or charges

against any hospital located within the geographical boundaries of

its hospital district and to remit such monies to the Oklahoma

Health Care Authority for purposes of meeting the state’s share for

the supplemental Medicaid programs to the extent and manner

authorized by federal law. Fees, levies, assessments or charges may

be enforced by a community hospital public trust authority through

civil action brought in the district court in the county in which

the community hospital public trust authority is located;

15. Appoint officers, agents and employees, prescribe their

duties and fix their compensation;

16. Engage in long-term planning for the operation and

management of a community hospital public trust authority;

17. Establish petty cash funds as needed and provide for

appropriate accounting procedures and controls; and

18. Do all other things necessary and proper to implement the

provisions of the Oklahoma Community Hospitals Public Trust
escribe their

duties and fix their compensation;

16. Engage in long-term planning for the operation and

management of a community hospital public trust authority;

17. Establish petty cash funds as needed and provide for

appropriate accounting procedures and controls; and

18. Do all other things necessary and proper to implement the

provisions of the Oklahoma Community Hospitals Public Trust

Authorities Act.

C. No director or officer of a community hospital public trust

authority shall vote on any issue before the authority in which such

director or officer has a direct interest in any contract or for any

work by or for the community hospital public trust authority.

D. The trustees of each community hospital public trust

authority created pursuant to the Oklahoma Community Hospitals

Public Trust Authorities Act shall make and adopt bylaws for the due

and orderly administration and regulation of the affairs of the

community hospital public trust authority. All bylaws and

amendments thereto of a community hospital public trust authority

shall be submitted in writing to each beneficiary of the community

hospital public trust authority, the Governor of this state and to

the Speaker of the Oklahoma House of Representatives and the

President Pro Tempore of the State Senate.

E. No appropriation of state funds shall be made to any

community hospital public trust authority. Each authority may

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receive the funds it may be entitled to receive pursuant to the

Medicaid program as administered by the Oklahoma Health Care

Authority.

F. Each community hospital public trust authority shall comply

with:

1. The annual budget provisions of the state requiring a

balanced budget. A copy of the budget shall be submitted annually

to the Governor and to each beneficiary of the community hospital

public trust authority;

2. The Public Competitive Bidding Act of 1974;

3. The Oklahoma Open Records Act;

4. The Oklahoma Open Meeting Act; and

5. The provisions of Sections 176 through 180.3 of Title 60 of

the Oklahoma Statutes and the Community Hospitals Public Trust

Authorities Act.

G. 1. Each community hospital public trust authority shall

provide for complete financial audits on all accounts of the

community hospital public trust authority and authorize periodic

audits by an independent external auditing agency. Such audits

shall be performed annually in a format approved by the State

Auditor and Inspector. The audits shall be made in accordance with

generally accepted auditing standards and government auditing

standards. Financial statements shall be prepared in accordance

with generally accepted accounting principles. Such audits shall be

submitted to the State Auditor and Inspector and to the beneficiary

of the community hospital public trust authority for review.

2. In addition to the audits specified by this subsection, the

State Auditor and Inspector, whenever the State Auditor and

Inspector deems it appropriate, and at least once each five (5)

years, or upon receipt of a request to do so from the beneficiary of

a community hospital public trust authority, the Governor, the

Attorney General, the President Pro Tempore of the Senate, the

Speaker of the House of Representatives or the community hospital

public trust authority shall conduct a special audit of the

authority. Such audit shall be paid from the funds of the community

hospital public trust authority.

H. 1. Except for acts of dishonesty, no trustee of a community

hospital public trust authority shall be charged personally with any

liability whatsoever by reason of any act or omission committed or

suffered in the performance of such trust or in the operation of the

trust property.

2. A community hospital public trust authority established

pursuant to the provisions of the Oklahoma Community Hospitals
t for acts of dishonesty, no trustee of a community

hospital public trust authority shall be charged personally with any

liability whatsoever by reason of any act or omission committed or

suffered in the performance of such trust or in the operation of the

trust property.

2. A community hospital public trust authority established

pursuant to the provisions of the Oklahoma Community Hospitals

Public Trust Authorities Act shall be covered by The Governmental

Tort Claims Act.

3. Officers, employees, agents, independent contractors and

employees of independent contractors of hospitals participating in

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the hospital district shall not be covered by The Governmental Tort

Claims Act. The provisions of this paragraph shall not affect the

immunity provided to hospitals or to officers and employees of

hospitals covered by Section 152 of Title 51 of the Oklahoma

Statutes.

4. In no event shall the state, county or municipality be

construed to be or become liable for any act, omission or obligation

of a trustee or of the community hospital public trust authority.

I. A community hospital public trust authority may be

terminated by agreement of the trustees of this state; provided,

that such community hospital public trust authority shall not be

terminated while there exists any outstanding contractual

obligations chargeable against the trust property.

J. 1. Compliance with the provisions of Sections 176 through

180.3 of Title 60 of the Oklahoma Statutes and the Oklahoma

Community Hospitals Public Trust Authorities Act by a community

hospital public trust authority shall be and constitute a binding

contract with the county or counties and municipality beneficiaries

for the acceptance of the beneficial interest in the trust property

by the designated beneficiary and the application of the proceeds of

the trust property and its operation for the purposes, and in

accordance with the stipulations, of the public trust instrument.

2. Each community hospital public trust authority shall be the

regularly constituted authority of the beneficiary for the

performance of the functions for which the community hospital public

trust authority shall have been created.

K. 1. A community hospital public trust authority shall have

the power and duty to make and issue bonds and to pledge revenues of

the community hospital public trust authority subject to the

Oklahoma Bond Oversight and Reform Act. Nothing in the Oklahoma

Community Hospitals Public Trust Authorities Act shall authorize the

issuance of any bonds by a community hospital public trust authority

payable other than from revenues of the community hospital public

trust authority.

2. Community hospital public trust authority revenue bonds

issued under the provisions of this subsection shall not at any time

be deemed to constitute a debt of the state or of any political

subdivision thereof or a pledge of the faith and credit of the state

or of any political subdivision, but such bonds shall be payable

solely from the funds herein provided.

3. Such revenue bonds shall contain on the face thereof a

statement to the effect that neither the state nor the community

hospital public trust authority shall be obligated to pay the same

or the interest thereon except from the revenues of the project or

projects for which they are issued and that neither the faith and

credit nor the taxing power of the state or any political

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subdivision thereof is pledged, or may hereafter be pledged, to the

payment of the principal of or the interest on such bonds.

4. The interest income derived from any obligation issued by a

community hospital public trust authority shall be exempt from the

tax imposed pursuant to Section 2355 of Title 68 of the Oklahoma

Statutes.