Relating to the operations of municipal hospital authorities.

Contracts

• Trust Indentures: Legal counsel must review existing indentures to ensure they do not prohibit changes to the number of directors or the new selection methodologies.
• Grant Agreements: New standardized agreements must be drafted for funding non-profits. These contracts must explicitly tie funding to "public health benefits" to satisfy the expanded statutory scope.
• Bond Resolutions: New resolutions authorizing debt must cite Section 262.0331 as the enabling authority for non-hospital facility bonds.

Hiring/Governance

• Board Audit: You must immediately audit the Board of Directors roster. Employees of the Authority are statutorily ineligible to serve as directors. If the CEO or Executive Director holds a voting seat, they must resign from the Board immediately.
• Director Selection: The Board must pass a resolution or enter a trust indenture agreement to prescribe the method for selecting directors and their terms.

Reporting & Record-Keeping

• Justification Resolutions: For every non-hospital project (e.g., fitness centers, research facilities), the Board must adopt a formal resolution detailing how the project "promotes wellness" or "prevents disease." This creates the necessary administrative record to defend the tax-exempt status and statutory validity of the expenditure.

Fees & Costs

• Legal & Administrative: Budget for immediate legal counsel fees to amend bylaws and review bond indentures.
• Revenue Streams: Revenue bonds may now be secured by non-hospital revenue streams (e.g., gym memberships, office leases), requiring new financial modeling by underwriters.