30:9-23.18 Creation of hospital authority.

4. a. (1) The governing body of a city may create, by ordinance, a body corporate and politic to be known as the " . . . . Municipal Hospital Authority," inserting the name of such city. The authority shall constitute an agency and instrumentality of the city creating it.

(2) The governing body of a county that owns a county hospital may create by ordinance or resolution as appropriate, a body corporate and politic to be known as the " . . . . County Hospital Authority," inserting the name of the county. The authority shall constitute an agency and instrumentality of the county creating it.

(3) A governing body of a city or county creating a local hospital authority shall have power from time to time and for such period and upon such terms, with or without consideration, as may be provided by such resolution or ordinance and accepted by the authority:

(a) to appropriate moneys for the purposes of the authority, and to loan or donate such money to the authority in such installments and upon such terms as may be agreed upon with the authority,

(b) to covenant and agree with the authority to pay to or on the order of the authority annually or at shorter intervals as a subsidy for the promotion of its purposes not exceeding such sums of money as may be stated in such resolution or ordinance or computed in accordance therewith, and

(c) upon authorization by it in accordance with law of the performance of any act or thing which it is empowered by law to authorize and perform and after appropriation of the moneys (if any) necessary for such performance, to covenant and agree with the authority to do and perform such act or thing and as to the time, manner and other details of its doing and performance, and, in accordance with the limitations and any exceptions thereto and in the manner or mode of procedure prescribed by the local bond law to incur indebtedness, borrow money and issue its negotiable bonds for the purpose of financing such project and appropriation, and to pay the proceeds of such bonds to the authority.

b. A local hospital authority created pursuant to this section shall be subject to the procedures of the "Local Authorities Fiscal Control Law," P.L.1983, c.313 (C.40A:5A-1 et seq.), and shall operate pursuant to the provisions of that law, except as otherwise provided in P.L.2006, c.46 (C.30:9-23.15 et al.). The sole purpose of a municipal hospital authority shall be to carry out an acquisition and to operate and maintain a hospital. The sole purpose of a county hospital authority shall be to operate and maintain a county hospital. Nothing in P.L.2006, c.46 (C.30:9-23.15 et al.) or any other State statute or regulation shall require that a county hospital authority hold any facility license to accomplish any of the objectives of P.L.2006, c.46 (C.30:9-23.15 et al.) or for a hospital to be designated a "county hospital" or to prohibit the right to apply for a license by any operator. Further, nothing herein or any action taken in accordance with P.L.2006, c.46 (C.30:9-23.15 et al.) shall affect a county hospital's designation or ability to operate, manage, or obtain reimbursement as a county hospital, as provided by New Jersey law.

c. Except as otherwise limited by P.L.2006, c.46 (C.30:9-23.15 et al.), the authority shall have power:

(1) To finance and implement the acquisition of a hospital and to operate and maintain a hospital;

(2) To sue and be sued;

(3) To have an official seal and alter it at pleasure;

(4) To make and alter bylaws for its organization and internal management and for the conduct of its affairs and business;

(5) To maintain an office at a place within the State as it may determine;

(6) To acquire, hold, use, and dispose of its income, revenues, funds, and moneys;

(7) To acquire, lease as lessee or lessor, rent, hold, use, and dispose of real or personal property for its purposes;

(8) To borrow money and to issue its negotiable bonds or notes and to secure them by a mortgage on its property or any part thereof, or by a pledge of its revenues, and otherwise to provide for and secure the payment of them and to provide for the rights of the holders of the bonds or notes;

(9) To make and enter into all contracts and agreements that are necessary or incidental to the performance of its duties and the exercise of its powers under this act;

(10) To establish, acquire, construct, rehabilitate, repair, improve, own, manage, operate, and maintain a hospital, or oversee the management and operation of a hospital, and let, award and enter into construction contracts, purchase orders and other contracts with respect to a hospital as the authority shall determine;

(11) To fix and revise from time to time, and charge and collect, rents, fees and charges for the use, occupancy or services of the hospital or any part thereof or for admission thereto, and for the grant of concessions therein and for things furnished or services rendered by the authority through a hospital;

(12) To function as the hospital governing body responsible for approving hospital-wide policy, establishing and enforcing rules, regulations and bylaws for the use or operation of the hospital or the conduct of its activities, maintaining quality of care, and providing institutional management and planning, which functions may be delegated or assigned to another entity, so long as the authority retains direct oversight over the entity;

(13) Subject to any agreement with bondholders or noteholders, to invest moneys of the authority not required for immediate use, including proceeds from the sale of any bonds or notes, in obligations, securities and other investments the authority deems prudent;

(14) To contract for and to accept any gifts or grants or loans of funds or property or financial or other aid in any form from the United States of America or any agency or instrumentality thereof, or from the State or any agency, instrumentality or political subdivision thereof, or from any other source, including for-profit or nonprofit organizations or the general public, and to comply, subject to the provisions of this act, with the terms and conditions thereof;

(15) Subject to any agreements with bondholders or noteholders, to purchase bonds or notes of the authority out of any funds or money of the authority available for those purposes, and to hold, cancel or resell the bonds or notes;

(16) To appoint and employ an executive director and additional officers, who need not be members of the authority, and accountants, attorneys, financial advisors, or experts and any other officers, agents and employees as it may require and determine their qualifications, terms of office, duties and compensation, all without regard to the provisions of Title 11A, Civil Service of the New Jersey Statutes;

(17) To do and perform any acts and things authorized by this act under, through, or by means of contracts, including through a joint venture, with a nonprofit or for-profit entity or entities;

(18) To procure insurance against any losses in connection with its property, operations or assets in such amounts and from such insurers as it deems desirable; and

(19) To do anything necessary or convenient to carry out its purposes and exercise the powers granted in P.L.2006, c.46 (C.30:9-23.15 et al.).

L.2006, c.46, s.4; amended 2016, c.55, s.3.