MS SB2781

Authorizes the board of trustees of any community hospital to establish a Community Hospital Reserve and Trust Fund and deposit proceeds from the county's sale of hospital facilities into the fund.

Divides the trust fund into a corpus component (principal, which remains inviolate except under specified circumstances) and an earnings component (annual interest income available for distribution).

Permits up to 85% of annual earnings to be transferred to the county's general fund for designated special projects, with the remainder added to the corpus component.

Allows the board of supervisors to withdraw up to 5% of the corpus annually or any amount during declared state or local emergencies; if withdrawals occur, all earnings must be retained and returned to the corpus until it is restored to pre-withdrawal levels.

Requires the board of trustees to appoint a three-member advisory committee, establish a comprehensive investment plan, and file annual reports on fund administration by July 1 of each fiscal year; dissolves the trust if the account balance reaches zero.