Session Laws

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:

SECTION 1. Notwithstanding the provisions of section fifty-three of chapter forty-four of the General Laws or any other provision of law to the contrary, the town of Needham hereinafter referred to as the town may establish a separate account classified as the Glover Memorial Hospital Special Account. Said hospital is hereinafter referred to as the hospital, said special account is hereinafter referred to as the special account. All funds now held by the town and received from or on account of the hospital, other than funds under the jurisdiction of the commissioners of trust funds of the town, shall be transferred to the special account and all receipts, revenues and funds from any source derived from or on account of an activity or activities of the hospital shall be deposited in the special account. Grants from the federal government or any agency thereof or the commonwealth or any agency thereof for the use, benefit or support of the hospital shall also be deposited in the special account. The town may from time to time appropriate funds for specific purposes relating to the provision of health care for the citizens of the town and such appropriations shall be deposited in the special account. The special account shall be maintained by the treasurer of the town who may invest the funds in the special account in the manner authorized by sections fifty-five and fifty-five A of chapter forty-four of the General Laws. Interest earned on or income or proceeds received from any investment of funds of the special account shall be credited to and become part of the special account. The acceptance of grants to be deposited in the special account shall be made on behalf of the town by the trustees of the hospital hereinafter referred to as the trustees.

SECTION 2. The books and records of the special account and of the hospital shall be maintained in accordance with generally accepted accounting principles pertaining to not-for-profit charitable institution and in accordance with the requirements of section thirty-eight of chapter forty-four of the General Laws provided that they shall be kept so as to provide at all times for the segregation of funds derived from appropriations made pursuant to section one or advances made pursuant to section five from all other funds held in the special account. Such books and records shall be audited annually by a certified public accountant appointed by the board of selectmen hereinafter referred to as the board who shall file copies of each report of audit with the trustees and with the board, the finance committee and the director of finance of the town and with the bureau of accounts hereinafter referred to as the bureau of the department of revenue.

SECTION 3. Not less than sixty days prior to the beginning of each fiscal year, the trustees shall submit to the board and the finance committee of the town a budget, in such form and detail as the trustees may determine and the board, may approve of anticipated revenues from operations and proposed expenditures by the hospital during such fiscal year. Said budget shall also include estimates of revenue from investment of funds in the special account. Upon consideration of any recommendation of the finance committee, the board may approve or reduce the proposed expenditures included in the budget, and the budget so approved shall constitute the budget of the hospital for such fiscal year. Said budget shall be reported to the commissioner of revenue in conjunction with the submission by the assessors of the town pursuant to section twenty-three of chapter fifty-nine of the General Laws. If, however, the budget as submitted to the board shall propose expenditures in excess of the sum of anticipated revenues from operations of the hospital and from investment of funds plus any balance of monies estimated to be on deposit in the special account, other than monies received from town appropriations made pursuant to section one for specific purposes or from grants for any purpose other than general operations of the hospital, at the close of business on the last day of the fiscal year next preceding the fiscal year respecting which the budget is submitted, after deducting from such balance all bills estimated to remain unpaid at the end of such prior fiscal year, the budget may not be approved by the board but shall be submitted to the town meeting for adoption as in the case of an appropriation. The term "approved budget" shall include a budget so adopted. If during a fiscal year the trustees shall determine that a revision of the approved budget is required, the trustees shall submit such revised budget to the finance committee and the board of the town. Such revised budget shall not take effect except to the extent approved by the board and shall not take effect in any event unless the expenditures proposed therein shall be no greater than the sum of revenues received and anticipated to be received through the end of the fiscal year from operations of the hospital and from investment of funds plus the then balance of monies on deposit in the special account, other than monies received from town appropriations made pursuant to section one for specific purposes or from grants for any purpose other than general operations of the hospital, in excess of bills or accruals then remaining unpaid. Approval by the board of a budget, whether initial or revised, shall not be deemed to constitute an appropriation of funds on deposit or thereafter deposited in the special account. The provisions of section sixteen of chapter thirty-nine, sections fifty-eight and fifty-nine of chapter forty-one or sections thirty-one and thirty-three B of chapter forty-four of the General Laws shall not apply to any such approved budget or to liabilities incurred or expenditures made within the amounts proposed in any such approved budget to be expended. The trustees may not, however, incur any liability for a payment which shall be due on or before the end of the fiscal year in excess of the amount available for such payment pursuant to the approved budget.

SECTION 4. Expenditures from the special account may be made, within the items contained in the current approved budget, without appropriation, by the director or other official of the hospital authorized by the trustees. Such expenditures shall be made solely for the operation, maintenance and support of the hospital and for the provision of capital equipment and plant for the hospital, subject, however, to any limitations imposed upon the expenditure of funds appropriated by the town or received as grants. The trustees shall file monthly with the director of finance, the board and the finance committee of the town statements of expenditures made and of receipts from operations for the month and fiscal year to date for the operation, maintenance and support of the hospital and for capital expenditures. Said reports shall show budgeted expenditures and receipts for the month and fiscal year to date. Annually, within one hundred and twenty days after the close of the fiscal year, the trustees shall file with the director of finance, the board and the finance committee of the town and with the bureau a report showing all expenditures made during such fiscal year for the operation, maintenance and support of and capital purchases for the hospital from the special account, all receipts from operations of the hospital and all other amounts deposited in the special account.

SECTION 5. Upon written request of the trustees certifying that a cash flow deficiency is expected in the special account and approval of such request by vote of a majority of the whole number of the board, the treasurer of the town shall transfer to the special account an amount not in excess of the anticipated deficiency from any available funds in the treasury of the town in any fiscal year in anticipation of the receipt of revenues from operations of the hospital during such fiscal year. Such advances outstanding at any one time during any fiscal year shall not exceed twenty-five per cent of the current budget of the hospital for such fiscal year as approved pursuant to section three. Prior to the end of such fiscal year the hospital shall repay such advances to the treasury of the town, together with an amount equal to the interest as determined by the director of finance of the town to be allocated to such advances. Unless the town meeting shall appropriate funds for the purpose and only to the extent of such appropriation, the town shall not be liable for any liability or obligation incurred by or on behalf of the hospital which remains unpaid at the end of a fiscal year other than to the extent of deposits thereafter made in the special account. If at the end of a fiscal year any advance made by the treasurer of the town pursuant to this section or amount of allocable interest thereon shall remain unpaid to any extent, unless the town meeting shall determine otherwise, the resulting deficiency shall be repaid to the treasury of the town out of deposits, from any source other than town appropriations, thereafter made in the special account before any payment shall thereafter be made from the special account other than for compensation or benefits of employees of the hospital who were such employees at the end of such fiscal year.

SECTION 6. Upon written certification by the treasurer of the town that a cash flow deficiency is expected in the treasury of the town and a request that monies be transferred from the special account to the treasury of the town, and upon approval of such request by the trustees and the board, the treasurer of the town shall transfer to the treasury of the town an amount, not in excess of the anticipated deficiency, from any available funds in the special account in any fiscal year in anticipation of the receipt of tax or other revenues of the town during such fiscal year. Such advances outstanding at any one time during any fiscal year shall not exceed twenty-five per cent of the budget of the hospital for such fiscal year as approved pursuant to section three. The town shall, prior to the end of such fiscal year, repay such advances to the special account together with an amount equal to the interest as determined by the director of finance of the town be allocable to said advances.

SECTION 7. This act shall be subject to amendment or repeal only by laws enacted by the general court in conformity with the provisions of section eight of Article LXXXIX of Articles of Amendment to the Constitution, and shall not be subject to the provisions of chapter forty-three B of the General Laws.

SECTION 8. Sections seven and eight of this act shall take effect upon its passage. Sections one to six, inclusive, shall take effect on July first, nineteen hundred and eighty-eight.

SECTION 9. This act shall take effect upon its acceptance by the town of Needham.