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In the operation of the hospital, all money received shall be deposited in the name of the Board of Governors in such proper financial institution or institutions as the Board shall order. The Board of Governors shall have power to make all proper expenditures for the operation of the hospital. Expenditures may only be made by proper vouchers signed by the President of the Garrett County Memorial Hospital or by the President’s designee. Proper books and accounts shall be kept and maintained of all receipts and expenditures by the Board of Governors in the operation of the hospital and shall be audited not less than once a year by a duly qualified independent auditor or accountant appointed by the hospital. The hospital shall make a report on the audit to the County Commissioners. The Board of Governors shall have power from time to time in the maintenance of the hospital and from the funds thereof to make such repairs as may be required upon the building or buildings comprising the hospital and to purchase the supplies and equipment as may be necessary in the hospital’s operation and maintenance, but shall not have authority, without the consent of the Board of County Commissioners, to erect, construct or make any additions to the improvements located on the property conveyed by the Mayor and Town Council to the County Commissioners for the Garrett County Memorial Hospital.
(1986 Code, § 71-5) (1957 Code, § 404; 1950, Ch. 25, § 5; 1953, Ch. 165, § 5; 1993, Ch. 50)
From and after March 31, 1953, the County Commissioners shall have the power to levy for the operation and maintenance of the hospital. If a deficit shall be found to exist in such operation and maintenance, the County Commissioners shall have the power to appropriate out of the funds so levied such amount or amounts as may be deemed necessary for the purposes of the hospital. In the event of a deficit in the operation in excess of the amount levied in any 1 year, the County Commissioners, upon the proper monthly certification by the Board of Governors of the existence of the deficit, shall have the power and authority to borrow such amount as may be necessary to meet the deficit, and any such loan or loans and accrued interest thereon shall be levied and paid out of the next succeeding year’s levy.
(1986 Code, § 71-6) (1957 Code, § 405; 1950, Ch. 25, § 6; 1953, Ch. 165, § 6)
It shall be the duty of the Board of Governors to furnish to the County Commissioners once each year an audited financial statement conforming to generally accepted accounting standards showing the receipts, disbursements and general financial condition of the hospital.
(1986 Code, § 71-7) (1957 Code, § 406; 1950, Ch. 25, § 7; 1953, Ch. 165, § 7; 1993, Ch. 50)
The County Commissioners of Garrett County and/or the Board of Governors shall not be liable in any suit brought against it or them for or by reason of the negligence of any employee, servant, agent, physician or nurse engaged in and about the maintenance or operation of the hospital.
(1986 Code, § 71-8) (1957 Code, § 407; 1950, Ch. 25, § 8; 1953, Ch. 165, § 8)
The County Commissioners and/or the Board of Governors are authorized to accept for and on behalf of the hospital any donations, gifts, devises or bequests of real or personal property any time from any source by any means whatsoever and to use the same either for erection of building and additions to existing buildings or repairs or equipment or for maintenance as they may deem proper or in accordance with any conditions attached thereto, subject to the provisions of § 36.05.
(1986 Code, § 71-9) (1957 Code, § 408; 1950, Ch. 25, § 9; 1953, Ch. 165, § 9)
(A) (1) Notwithstanding any provision of this chapter, the County Commissioners and the Board of Governors may lease the Garrett County Memorial Hospital, or any portion thereof, and transfer assets incidental to the lease in accordance with terms determined by the County Commissioners and the Board of Governors.
(2) If the County Commissioners and the Board of Governors lease the Garrett County Memorial Hospital, or any portion thereof, in accordance with this division:
(a) The Board of Governors shall:
1. Continue in existence as provided in division (B) of this section;
2. Under the lease, hold title to the assets owned by the hospital which are to be leased, as co-lessor with the County Commissioners; and
3. Continue in existence as a body politic and corporate, to enforce its rights and obligations under the lease and to resume operation of the hospital if a termination of the lease results in a reversion of the hospital operations and assets back to the County Commissioners and the Board of Governors; and
(b) The County Commissioners shall continue to:
1. Hold title to the real property owned by it and used for the purpose of the hospital; and
2. Enforce their rights and obligations under the lease.
(3) The County Commissioners and the Board of Governors may take any further actions necessary to fully perform under a lease, including:
(a) Executing all applicable documents and transactions necessary to lease the real estate and existing facilities;
(b) Transferring title to or possession of tangible property and intangible property;
(c) Participating in any applicable regulatory process; and
(d) Making arrangements for a disposition of the hospital consistent with the terms of a lease.
(B) (1) Notwithstanding § 36.03, if the County Commissioners and the Board of Governors lease the Garrett County Memorial Hospital, or any portion thereof, in accordance with this section, the Board of Governors shall be reduced in number to consist of three persons residing in Garrett County, one to be appointed by each of the County Commissioners.
(2) The Board of Governors shall meet at least once each year and at other times as it shall determine or when called by the Chairperson.
(3) The County Commissioners shall select the members of the Board of Governors under this division for their talents, abilities, and interest in the affairs of the Garrett County Memorial Hospital.
(4) A member of the Board of Governors under this division may not serve on the board of directors of the lessee.
(5) The term of a member appointed by the County Commissioners under this division is two years or until the current term of the elected official or officials who selected the member ends, whichever occurs first.
(6) The Board of Governors shall elect from among its members a chairperson, a Vice Chairperson, and a Secretary/Treasurer.
(7) The Board of Governors may remove a member or fill a vacancy on the Board in accordance with § 36.03(E) and (F).
(8) The County Commissioners, by resolution, shall adopt procedures for the transition of the membership and duties of the Board of Governors necessitated by the entering into, or termination of, a lease under this section.
(C) In any lease authorized by this section, transfers of title to or possession of real estate, tangible property, or intangible property owned by the County Commissioners or the Board of Governors and used in the operation of the hospital, including membership or equity interests in subsidiary or affiliated entities, are authorized and exempt from public bidding requirements under § 30.21.
(Md. H.B. 1471, passed 2-26-2022)