Critical access hospital endowment challenge program.

WORKING DRAFT
2006
STATE OF
WYOMING
06LSO-0300

SENATE FILE
NO.
SF0082

Critical access hospital endowment challenge program.

Sponsored by:
Senator(s) Peterson and Representative(s) Harvey

A BILL

for

AN ACT relating to the critical access hospital endowment challenge fund; establishing the endowment; providing for separate accounts for each critical access hospital; defining terms; imposing conditions and limitations; establishing a matching program based upon gifts received by each critical access hospital's foundation; providing an appropriation; and providing for an effective date.

Be It Enacted by the Legislature of the State of
Wyoming
:

Section 1.

W.S. 35
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1
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1001 through 35
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1
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1004 are created to read:

ARTICLE 10
WYOMING
CRITICAL
ACCESS

HOSPITAL
ENDOWMENT CHALLENGE PROGRAM

35
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1
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1001.

Wyoming
critical access hospital endowment challenge program.

The
Wyoming
critical access hospital endowment challenge program is created.

35
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1
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1002.

Definitions.

(a)

As used in this article:

(i)

"Challenge fund" means the critical access hospital endowment challenge fund created under this article;

(ii)

"Critical access hospital" means a state, county or special district hospital that is certified to receive cost-based reimbursement from Medicare.

(iii)

"Endowment gift" means an irrevocable gift or transfer to a Wyoming critical access hospital foundation of money or other property, whether real, personal, tangible or intangible, and whether or not the donor or transferor retains an interest in the property, where the gift or the foundation's interest in the property is required to be used by the foundation exclusively for endowment purposes, provided:

(A)

The gift was received or the transfer occurred during the period July 1, 2006, through June 30, 2011; or

(B)

A commitment to make the gift or transfer was made in writing to the respective critical access hospital foundation, which commitment was received during the period July 1, 2006, through June 30, 2011, and the gift was received or the transfer occurred not later than June 30, 2012.

(iv)

"Foundation" means an organization established for each critical access hospital that among other purposes, exists to generate additional revenues for critical access hospital programs and activities;

(v)

"Permanent endowment funds managed by a Wyoming critical access hospital foundation" means the endowment funds that are invested by the respective Wyoming critical access hospital foundation on a permanent basis and the earnings on those investments are dedicated to be expended exclusively to benefit and promote the mission, operation or any program or activity of the respective critical access hospital, including but not limited to capital and programmatic expenses, healthcare, increases to the corpus of the endowment and to defray reasonable costs of endowment administration.

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1003.

Wyoming
critical access hospital endowment challenge fund.

(a)

The
Wyoming
critical access hospital endowment challenge fund is created and shall consist of thirteen (13) separate accounts, one (1) account for each
Wyoming
critical access hospital.

(b)

The state treasurer shall invest funds within the fund created under subsection (a) of this section and shall deposit the earnings from fund investments to the general fund.

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1004.

Endowment challenge fund matching program; matching payments; agreements with foundations; annual reports.

(a)

To the extent funds are available in the separate account of any critical access hospital within the endowment challenge fund, the state treasurer shall match endowment gifts actually received by that critical access hospital's foundation. A match shall be paid under this subsection by the state treasurer at the time any accumulated amounts actually received by a critical access hospital foundation total ten thousand dollars ($10,000.00) or more. The match shall be made by transferring from the separate challenge fund account to the appropriate critical access hospital foundation an amount equal to the amount accumulated by the foundation. The recipient critical access hospital foundation shall transfer matching funds received under this subsection to the critical access hospital.

(b)

Each critical access hospital shall enter into an agreement with its foundation under which the foundation shall manage the matching funds received under subsection (a) of this section in the same manner as other permanent endowment funds are managed by its foundation, including the permanent investment of funds, maintenance of the fund corpus as inviolate and the expenditure of fund earnings for endowment purposes only.

(c)

Earnings from endowment funds established with matching funds under this section shall be expended only for the purpose of the endowment, including increasing the balance in the fund corpus and reasonable costs of administration.

(d)

The state treasurer shall make transfers to the appropriate critical access hospital foundation under this section not later than the end of the calendar quarter following the quarter during which foundation gifts total at least ten thousand dollars ($10,000.00). If gifts are made through a series of payments or transfers, no matching funds shall be transferred under this section until the total value of all payments or transfers actually received totals at least ten thousand dollars ($10,000.00).

(e)

Except as provided under subsection (f) of this section, matching funds paid under this section shall not be distributed to or encumbered by any critical access hospital foundation in excess of the amount in the challenge fund account for that critical access hospital. Except to the extent authorized under subsection (f) of this section, matching funds shall not be transferred to any critical access hospital foundation by the state treasurer except to match gifts actually received by the foundation.

(f)

Notwithstanding subsection (e) of this section, matching funds may be distributed to or encumbered by a critical access hospital foundation in excess of the amount within the challenge fund account of that critical access hospital if:

(i)

Endowment gifts for that critical access hospital exceed the amount within its challenge fund account; and

(ii)

The critical access hospital enters into a written agreement with another critical access hospital having unencumbered amounts remaining within its challenge fund account and the critical access hospital with unencumbered amounts within its account agrees to transfer any portion of its unencumbered amount to that critical access hospital.

(g)

Matching funds transferred by the state treasurer for amounts transferred between critical access hospitals pursuant to subsection (f) of this section shall be divided equally between the critical access hospitals participating in the agreement.

(h)

If the foundation's board of any critical access hospital determines that the purpose of an endowment gift to the critical access hospital is not consistent with the mission or capability of that critical access hospital, the gift shall not qualify for matching funds under this section.

(j)

For the purpose of computing the matching amount, the state treasurer shall use the value of an endowment gift based upon its fair market value at the time the gift is received by the critical access hospital foundation. The critical access hospital shall provide evidence of fair market value for any gift if requested by the state treasurer and shall fund the cost of providing any requested evidence.

(k)

Each critical access hospital shall on or before October 1 of each year submit a report to the state treasurer from its foundation on the endowment matching program under this section for the preceding fiscal year. The report shall include a financial summary and a review of the accomplishments resulting fr
o
m endowment program expenditures. The report required under this subsection shall be for each applicable fiscal year through June 30, 2013.

Section 2.

(a)

Thirty-two million five hundred thousand dollars ($32,500,000.00)
is appropriated from the general fund to the critical access hospital endowment challenge fund as created under section 1 of this act. Notwithstanding any other provision of law, any unexpended funds from the amount appropriated under this subsection shall revert to the budget reserve account on July 1, 2012.

(b)

The amount appropriated into the challenge fund under subsection (a) of this section shall be equally deposited into each of the thirteen (13) separate accounts created within the fund pursuant to section 1 of this act.

Section 3.

This act is effective July 1, 2006.

(END)

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SF0082