Section 503. Laboratories; state hospitals; service to counties and municipalities

1. The director of any hospital in the department,  with
  the  approval of the commissioner, may enter into a contract with proper
  municipal or county officials under which the laboratory service of  the
  hospital  may  be  made available to municipalities or counties or parts
  thereof when in his judgment such a contract shall be in the interest of
  public health and not  prejudicial  to  the  interest  or  work  of  the
  institution.
    2. The treasurer of the hospital, or the director thereof, if there is
  no  treasurer,  shall  receive  all moneys paid in consideration of such
  contract and pay the same into the general fund of the state.