Be it enacted by the Senate and House of Representatives
in General Court assembled, and by the authority of the same,
SECTION 1. For purposes of this act the following words shall, unless the context clearly requires otherwise, have the following meanings:-
(a) "Authorized officers", the mayor, the city auditor, and the chairman of the board of managers of the hospital, acting unanimously; provided, that each of said individuals may designate any other officer of the city to act on his behalf as an authorized officer for any or all purposes under this act; and provided, further, that any designation by the city auditor shall be subject to approval by the city council and that the chairman of the board of managers may designate only another member of the board. For purposes of this definition, "officer of the city" shall mean a person who is in charge of a department of the city or who is a member of an administrative board of the city. The mayor, city auditor, and chairman of the board of managers shall not all designate the same person to serve as the authorized officer, nor shall any two of them designate the same person so to serve.
(b) "Board", the board of managers of the hospital.
(c) "Bonds", any bonds, notes, or other evidences of indebtedness of the city issued on behalf of the hospital under sections two or three.
(d) "City", the city of Quincy.
(e) "City auditor", the city auditor of the city of Quincy.
(f) "City council", the city council of the city of Quincy.
(g) "Director", the director of the hospital.
(h) "Hospital", the Quincy city hospital.
(i) "Mayor", the mayor of the city of Quincy.
(j) "Revenues", all revenues and other receipts derived by the hospital, whether from the operation of the hospital or otherwise, including, without limiting the generality of the foregoing, payments to the hospital for patient care services, bond proceeds, proceeds of any grant or loan to the hospital or the city for the purposes of the hospital, donations to the hospital from private parties, investment earnings, and the proceeds of insurance, condemnation, sale or other disposition of properties.
SECTION 2. The city, on behalf of the hospital, is hereby authorized to borrow from time to time such sums as may be necessary, not exceeding, in the aggregate, seventy-five million dollars, and to issue bonds of the city therefor and borrow money in anticipation of such bonds, for the purposes of demolishing a portion of the current facilities of the hospital and constructing and originally equipping and furnishing a structure as a replacement therefor. No bonds shall be issued under this act, until the director, with the approval of the board, shall cause a financial feasibility study to be conducted concerning the ability of the hospital to pay the debt service on the bonds and based on such study the board, with the concurrence of the mayor and the city auditor, determines that the revenues of the hospital can be expected to meet all debt service payments on the bonds as they come due without the expectation of any payments or reimbursements from city funds.
SECTION 3. (a) The principal of, premium, if any, and interest on all bonds, unless otherwise provided herein, shall be payable solely from the particular funds provided therefor under this act. The bonds shall be issued in such amounts as the city council may authorize by a two-thirds vote, with the approval of the mayor. Bonds of each issue shall be dated, shall bear interest at such rate or rates, including rates variable from time to time, as determined by such index, banker's loan rate or other method as may be determined by the authorized officers, and shall mature at such time or times as may be determined by the authorized officers, except that no bond shall mature more than forty years from the date of its issue. Bonds may be made redeemable before maturity at the option of the city at such price or prices and under such terms and conditions as may be fixed by the authorized officers prior to the issue of bonds. The authorized officers shall determine the form and details and the manner of execution of bonds. The city may sell the bonds in such manner, at either public or private sale, for such price, at such rate or rates of interest, or at such discount in lieu of interest, as the authorized officers may determine will best effect the purposes of this act. For the purposes of determining the amount of bonds issued or outstanding pursuant to this act, the amount of any bonds sold by the city at a discount shall be equal to the net proceeds thereof determined by subtracting the discount from the face amount of such bonds.
(b) The authorized officers may provide for a system of registration and exchange or transfer of registered bonds and in connection therewith the board, subject to approval of the authorized officers, may contract for and engage the services of any banks or other financial institutions within or without the state to perform authentication, registration, transfer, exchange, and paying agent functions, including without limitation the preparation, signing and issuance of checks in payment of such bonds, the preparation and maintenance of records, reports and accounts and the performance of such related duties as may be necessary or desirable in connection with such bonds.
(c) Any authorized officer may execute bonds or cause them to be executed by a facsimile signature in lieu of his manual signature, provided that at least one signature required or permitted to be placed thereon, which may be the signature of an authorized signer of a bank or other financial institution acting as trustee, authenticating agent, transfer agent or similar agent, shall be manually subscribed. The facsimile signature of an authorized officer on a bond or note shall have the same legal effect as his manual signature. In case any officer whose signature or a facsimile of whose signature shall appear on any bonds shall cease to be an officer before the delivery thereof, such signature or such facsimile shall nevertheless be valid and sufficient for all purposes as if he had remained in office until after such delivery.
(d) The city may secure any bonds issued hereunder by an insured or uninsured mortgage of the real and personal property of the hospital, with the approval of the mayor and the city council, and by a trust agreement between the city and a corporate trustee, which may be any trust company or bank having the powers of a trust company within or without the commonwealth, and such mortgage and trust agreement shall be in such form and executed in such manner as may be determined by the authorized officers. Such mortgage and trust agreement may pledge or assign, in whole or in part, the revenues held or to be received by the hospital or by the city for hospital purposes, and any contract or other rights to receive the same, whether then existing or thereafter coming into existence and whether then held or thereafter acquired by the hospital, together with the proceeds thereof. Such mortgage and trust agreement may contain such provisions for protecting and enforcing the rights, security and remedies of the bondholders as may, in the discretion of the authorized officers, be reasonable and proper and not in violation of law, including, without limiting the generality of the foregoing, provisions defining defaults and providing for remedies in the event thereof, which may include the acceleration of maturities, and covenants setting forth the duties of, and limitations on, the hospital in relation to the custody, safeguarding, investment and application of moneys, the issue of additional or refunding bonds, the fixing, revision and collection of hospital fees and charges, the use of any surplus bond proceeds, the establishment of reserves, and the making and amending of contracts.
(e) The real property of the hospital which the city may mortgage hereunder consists of those certain parcels of land including any buildings and improvements located thereon shown on Plan 1177A of the Quincy city assessor's maps as Plots 12, 16, 22, 23, 26 and 81, and those certain parcels of land including any buildings and improvements located thereon shown on Plan 1177E of the Quincy city assessor's map as Plots 13 and 50, and that certain parcel of land including any buildings and improvements located thereon shown on plan 1187 of the Quincy city assessor's map as plot 1 (pt. 1+2). The present use of such real property is as a community hospital which is a department of the city. Such real property may be mortgaged to secure any bonds issued under authority of this act.
(f) Any bonds issued under authority of this act may be issued by the city on behalf of the hospital in the form of lines of credit or other banking arrangements under such terms and conditions, not inconsistent with this act, and under such agreements with the purchasers or makers thereof as the authorized officers may determine to be in the interest of the hospital and the city. In addition to other security provided herein or otherwise by law, bonds issued by the city under this act may be secured, in whole or in part, without limitation, by bond insurance issued by commercial insurers or by any agency or department of the commonwealth or of the federal government, by letters or lines of credit or other credit facilities issued by any bank, trust company, or other financial institution, within or without the commonwealth, or by any agency or department of the commonwealth or of the federal government, or by insurance of a mortgage of the real and personal property of the hospital issued by commercial insurers or by any agency or department of the commonwealth or of the federal government, and the city and the hospital may pledge or assign any of the revenues of the hospital as security for the reimbursement to the issuers of such letters or lines of credit, insurance or credit facilities of any payments made thereunder.
(g) It shall be lawful for any bank or trust company to act as a depository or trustee of the proceeds of bonds, revenues or other moneys under a trust agreement and to furnish such indemnification or to pledge such securities and issue such letters or lines of credit or other credit facilities as may be required by the hospital. Any such trust agreement may set forth the rights and remedies of bondholders and of the trustee and may restrict the individual right of action by bondholders. Any pledge of revenues or other property made by the city or the hospital under this act shall be valid and binding and shall be deemed continuously perfected for the purposes of the uniform commercial code and other laws from the time when the pledge is made; the revenues, moneys, rights and proceeds so pledged and then held or thereafter acquired or received by the hospital or the city for hospital purposes shall immediately be subject to the lien of such pledge without any physical delivery or segregation thereof or further act; and the lien of such pledge shall be valid and binding against all parties having claims of any kind in tort, contract or otherwise against the city and the hospital, irrespective of whether such parties have notice thereof. Any trust agreement or any other agreement by which a pledge is created need not be filed or recorded except in the records of the city and no filing need be made under chapter one hundred and six of the General Laws.
(h) Any owner of a bond issued by the city under the provisions of this act and any trustee under a trust agreement securing the same, except to the extent the rights herein given may be restricted by such trust agreement, may bring suit upon the bonds and may, either at law or in equity, by suit, action, mandamus, or other proceeding for legal or equitable relief, protect and enforce any and all rights under the laws of the commonwealth or granted hereunder or under such trust agreement and may enforce and compel the performance of all duties required by this act or by such trust agreement to be performed by the hospital or by any officer thereof.
(i) The city, on behalf of the hospital, may issue refunding bonds for the purpose of paying any of the bonds issued pursuant to this act at or prior to maturity or upon acceleration of redemption. Such refunding bonds may be issued in such amounts as the city council may determine by a two-thirds vote, with the approval of the mayor, may be issued at such times prior to the maturity or redemption of the refunded bonds as the board, with the approval of the mayor and the city council, deems to be in the interest of the hospital and the city, and each such bond shall bear a maturity date no later than forty years from the date of the issuance of the original bond or bonds for which such refunding bond is paying. The refunding bonds may be issued in sufficient amounts to pay or provide the principal of the bonds being refunded, together with any redemption premium thereon, any interest accrued or to accrue to the date of payment of such bonds, the expenses of issue of the refunding bonds, the expenses of redeeming the bonds being refunded, and such reserves for debt service or other capital or current expenses from the proceeds of such refunding bonds as may be required by a trust agreement securing the bonds. The issue of refunding bonds, the maturities and other details thereof, the security therefor, the rights of the holders thereof, and the rights, duties and obligations of the city in respect to the same shall be governed by the provisions of this act relating to the issue of the bonds other than refunding bonds insofar as the same may be applicable.
(j) Bonds may be issued under this act without obtaining the consent of any department, division, commission, board, bureau or agency of the commonwealth or any political subdivision thereof, and without any other proceedings or the happening of any condition or thing other than those proceedings, conditions or things which are specifically required therefor by this act, and the validity of and security for any bonds issued by the city pursuant to this act shall not be affected by the existence or nonexistence of any such consent or other proceedings, conditions or things.
(k) Notwithstanding any of the provisions of this act or any recitals in any bonds issued under this act, all such bonds shall be deemed to be investment securities under chapter one hundred and six of the General Laws.
SECTION 4. Any bonds issued pursuant to this act shall not be included in determining the limits of indebtedness of the city as established by law nor shall the principal and interest payments thereof be included in any computation under section twenty-one C of chapter fifty-nine of the General Laws.
SECTION 5. Any debt service fund, construction fund, debt service reserve fund, depreciation reserve fund or other fund established in connection with the issuance of bonds under this act shall be kept separate from the general fund of the city and from the general operating funds of the hospital. The moneys deposited in any such funds, together with income derived from any investments held as part of such funds, all of which income shall be considered revenues of the hospital, shall be expended without further authorization or appropriation as provided for in the trust agreement establishing such funds.
SECTION 6. In addition to other lawful items, the project costs to be financed by the issue of bonds under this act may include: interest for a period of up to six months after the date, as determined or estimated by the director, of commencing regular use of the new structure by the hospital; the cost of architectural, engineering, financial and legal services, plans, specifications, studies of cost and of revenues; administrative expenses related to the construction of the project; expenses as may be necessary or incident to determining the feasibility or practicability of constructing the project or to reviewing the impact of the project on the city and on the city's general financial condition; capital equipment purchased within one year of the date, as determined or estimated by the director, of commencing regular use of the new structure by the hospital; and such other expenses incurred by either the city or the hospital as may be necessary or incident to the construction of the project, the financing of such construction, including, without limitation, any reserve funds described in section five of this act, and the placing of the project in operation.
SECTION 7. Subject to any limitation imposed by law, the hospital shall be required to fix and collect rates and charges which together with other available hospital revenues shall provide moneys sufficient at all times to make payments of principal of, premium if any, and interest on bonds issued under this act, including the required payments to any debt service fund established under this act, as they come due, and to satisfy all other obligations to be paid from hospital revenues in a timely fashion. The hospital shall at all times keep full and accurate accounts of its receipts, expenditures, disbursements, assets and liabilities.
SECTION 8. All revenues received pursuant to the provisions of this act, whether as proceeds from the issue of bonds, investment earnings, or otherwise, shall be deemed to be trust funds to be held and applied solely as provided in this act.
SECTION 9. Bonds issued under this act, their transfer and income therefrom, including any profit made on the sale thereof, shall at all times be exempt from taxation by the commonwealth or any political subdivision thereof.
SECTION 10. Bonds issued under this act are hereby made securities in which all public officers, agencies and authorities of the commonwealth and of its political subdivisions, all insurance companies, trust companies in their commercial departments, savings banks, cooperative banks, commercial banks, banking associations, investment companies, executors, administrators, trustees and other fiduciaries may properly and legally invest funds, including principal in their control or belonging to them. Such bonds are hereby made securities which may properly and legally be deposited with and received by any state or municipal officer or any agency, authority or political subdivision of the commonwealth for any purpose for which the deposit of bonds or obligations of the commonwealth or of any political subdivision is now or may hereafter be authorized by law.
SECTION 11. The hospital shall submit to the city council quarterly reports describing the progress made in completing the construction of the replacement project for which bonds are issued under this act, including costs incurred in said construction.
SECTION 12. Notwithstanding the provisions of section fifty-six A of chapter forty-four of the General Laws or of any other general or special law to the contrary, the hospital is hereby authorized to establish as its fiscal year for all purposes the twelve month period commencing October first and ending September thirtieth. The provision of this section shall be effective for the period commencing October first, nineteen hundred and eighty-five, and thereafter.
SECTION 13. Chapter 312 of the acts of 1981 is hereby amended by striking out section 3 and 4 and inserting in place thereof the following two sections:-
Section 3. The city treasurer, upon written request of the director of the Quincy city hospital may, advance funds from the general fund of the city in any fiscal year of the city in anticipation of the receipt of revenues of said Quincy city hospital. Such advances outstanding at any one time in any fiscal year of the city, shall not exceed, in the aggregate, twenty-five per cent of the annual expense of the current fiscal year of the hospital, as certified by said director, or such larger amount as may be approved by the mayor and the city council. All such sums so advanced shall be deposited into such account established under section one and the said director shall prior to the end of each fiscal year of the city repay such advances to the general fund together with an amount equal to the interest as determined by the city treasurer to be allocable to any debt incurred during said fiscal year by the city in anticipation of revenue in order to make such advances.
Section 4. The director of the Quincy city hospital shall file with the mayor, the city council and the treasurer of said city and the bureau of accounts a written report of the special account established in section one within one hundred and twenty days after the books are closed for the fiscal year of the hospital. Such report shall include financial statements relating to the operations, maintenance, capital and real properties of said hospital. The city council may review and comment upon such report and the city council may file such comment with the bureau of accounts. The director shall annually, not later than sixty days prior to the expiration of each fiscal year of the hospital, submit to the mayor and city council a budget in such form as the board of managers may approve. The board of managers may review and comment on such budget and may file such review and comment with the mayor and the city council.
SECTION 14. Notwithstanding any provisions of law to the contrary, including provisions of ordinances of the city, except for zoning ordinances, the demolition, design, and construction activities identified in section two of this act shall be under the control of the mayor and the board.
SECTION 15. The provisions of this act shall be deemed to provide an additional and alternative method for the effectuation of the purposes of this act and shall be construed to be supplemental to, and not in derogation of, powers otherwise conferred by law on the city, provided however that insofar as the provisions of this act are inconsistent with the provisions of any general or special law, administrative order or regulation or any limitation imposed by the city charter, the provisions of this act shall be controlling. This act shall be interpreted liberally to effect the purposes set forth in this act.
SECTION 16. The provisions of this act are severable, and if any provision hereof shall be held invalid in any circumstances, such invalidity shall not affect any other provisions or circumstances. This act shall be construed in all respects so as to meet all constitutional requirements. In carrying out the purposes and provisions of this act, all steps shall be taken which are necessary to meet constitutional requirements.
SECTION 17. This act shall take effect upon its passage.