§ 131E-7. General powers. - North Carolina Statutes

§ 131E‑7.  Generalpowers.

(a)        A municipality shall have all the powers necessary orconvenient to carry out the purposes of this Part, including the followingpowers, which are in addition to the powers granted elsewhere in this Part:

(1)        To construct, equip, operate, and maintain hospitalfacilities;

(2)        To levy property taxes pursuant to G.S. 153A‑149 orG.S. 160A‑209 and to allocate those and other revenues whose use is nototherwise restricted by law to fund hospital facilities; a hospital districtmay levy annually a tax on property having a situs in the district under therules and according to the procedures prescribed in the Machinery Act, Chapter105 of the General Statutes, Subchapter II, and a hospital district mayallocate those and other revenues whose use is not otherwise restricted by lawto fund hospital facilities;

(3)        To issue bonds and notes pursuant to the Local GovernmentFinance Act, Chapter 159 of the General Statutes, for the financing of hospitalfacilities;

(4)        To use property owned or controlled by the municipality;

(5)        To acquire real or personal property, including existinghospital facilities, by purchase, grant, gift, devise, lease, condemnation, orotherwise;

(6)        To establish a fee schedule for services received fromhospital facilities and to make services available regardless of ability topay.

(b)        A municipality or a public hospital may contract with orenter into any arrangement with other public hospitals or municipalities ofthis or other states, the State of North Carolina, federal, or public agencies,or with any person, private organization, or nonprofit corporation orassociation for the provision of health care. The municipality or publichospital may pay for or contribute its share of the cost of any such contract orarrangement from revenues available for these purposes, including revenuesrising from the provision of health care.

(c)        Any two or more municipalities may enter into agreements tojointly exercise the powers, privileges, and authorities granted by this Part.These agreements may provide for:

(1)        The appointment of a board, composed of representatives ofthe parties to the agreement, to supervise and manage a hospital facility;

(2)        The authority and duties of the board and the compensationof its members;

(3)        The proportional share of the costs of acquisition,construction, improvement, maintenance, or operation of hospital facilities;

(4)        The duration, amendment, and termination of the agreementand the disposition of property on termination of the agreement; and

(5)        Any other matters as necessary.

(d)        A municipality may lease any hospital facility, or part, toa nonprofit association on terms and conditions consistent with the purposes ofthis Part. The municipality will determine the length of the lease. No leaseexecuted under this subsection shall be deemed to convey a freehold interest.

(e)        A municipality shall not sell nor convey any rights ofownership the municipality has in any hospital facility, including thebuildings, land and equipment associated with the hospital, to any corporationor other business entity operated for profit, except that nothing herein shallprohibit the sale of surplus buildings, surplus land or surplus equipment by amunicipality to any corporation or other business entity operated for profit.

A municipality may lease any hospital facility, or part, to anycorporation, foreign or domestic, authorized to do business in North Carolinaon terms and conditions consistent with the purposes of this Part and with G.S.160A‑272. The municipality shall determine the length of the lease;however, no lease under this subsection shall be longer than 10 years,including options to renew or extend the original term of the lease, exceptthat leases of surplus buildings, surplus land or surplus equipment may be forany length of time determined by the municipality. The lease shall provide thatthe hospital facility will be operated as a community general hospital open tothe general public and that the lessee will accept Medicare and Medicaid patients.No lease executed under this subsection shall be deemed to convey a freeholdinterest. No bonds, notes nor other evidences of indebtedness shall be issuedby a municipality to finance equipment for or the acquisition, extension,construction, reconstruction, improvement, enlargement, or betterment of anyhospital facility when the facility is leased to a corporation, foreign ordomestic, authorized to do business in North Carolina.

For purposes of this subsection, "surplus" means anybuilding, land or equipment which is not required for use in the delivery ofnecessary health care services by a hospital facility at the time of the sale,conveyance of ownership rights, or lease.

This subsection shall not be construed to affect any pending litigationnor to reflect any legislative intent as to any prior authorized or executedagreements. This subsection shall be effective from January 1, 1984 until June30, 1984.

(f)         In addition to the general and special powers conferred bythis Part, a municipality is authorized to exercise powers necessary toimplement the powers under this Part. (1983, c. 775, s. 1; 1993, c. 529, s. 5.3; 1995, c. 509, s. 71.)