1.    The veterans’ home governing board may establish fees to be paid by members of the veterans’ home. The fees must be based on the adjusted income of each member, but may not exceed forty-nine percent of the average daily per member cost. The fees must be set under a formula determined by the veterans’ home governing board and designed to assure dignity and equity in the charge. The veterans’ home governing    board may reconsider its action establishing fees, amend or rescind the fees, or reinstate fees previously rescinded. The administrator of the veterans’ home shall collect monthly any fees levied.

2.    As used in subsection 1, “adjusted income” means all moneys received from any source, including social security benefits, less amounts received or expended as follows:

a.    Moneys expended by the member for hospitalization due to illness or injury.

b.    Moneys expended by the member for other medical care or treatment, or for required medicines.

c.    Such other receipts or expenditures as the veterans’ home governing board may permit to be deducted in individual cases.

3.    All moneys received as a result of charging the fees authorized by subsection 1 must be deposited in the veterans’ home operating fund.