34-9-10. Conditions for transfer of municipal funds to private hospital--Transfer of tax funds prohibited.
A municipality may not transfer surplus funds under §34-9-9 unless:
(1)No other hospital operates within the municipality and the Department of Health has issued no license for the operation of a hospital within the municipality;
(2)At least fifty percent of the total cost of the construction project has been raised from sources other than those to be derived through the transfer of the surplus funds, based upon estimates of any architect or firm of architects registered by the Board of Technical Professions; and
(3)The articles of incorporation of the hospital corporation provide that no part of the hospital corporation's earnings shall inure, or may lawfully inure, to the benefit of any member or private shareholder.
Funds acquired through legal tax levy in the municipality may not be transferred.
Source: SL 1949, ch 200, §§1, 2; SL 1953, ch 259; SDC Supp 1960, §45.1437; SL 1990, ch 309, §4; SL 2019, ch 176, §1.