HomeMy WebLinkAboutMINUTES - 04252000 - C25-C26 C36
TO: BOARD OF SUPERVISORS Contra
FROM: PHIL BATCHELOR, COUNTY ADMINISTRATOR Cost.
DATE: April 25, 2000 County
SUBJECT: LEGISLATION • SB 1919 (Chesbro)
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)+&BACKGROUND AND JUSTIFICATION
RECOMMENDATION:
ADOPT a position in SUPPORT of SB 1919 by Senator Chesbro which would receive all fire
districts of the obligation to contribute to the Educational Revenue Augmentation Fund (ERAF).
BACKGROUND:
The Board of Supervisors has consistently taken a position in support of efforts to allow local
jurisdictions to retain their property tax revenue rather than sending it to the State through the
ERAF. In 1999, the Board of Supervisors supported legislation sponsored by the firefighters
union which eliminated the need for dependent fire districts to contribute to the ERAF. This
legislation saved the Contra costa County Fire Protection District some $500,000 a year,
Senator Chesbro has now introduced legislation, again at the request of the firefighters, which
would complete this process by eliminating the need for independent fire districts to contribute
to ERAF. This legislation would benefit the San Ramon Valley, Orinda and Moraga Fire
Protection Districts. While it would not directly benefit the County or the County's dependent fire
districts, it is consistent with the Board's longstanding position in support of these efforts to
remove jurisdictions from having to contribute to the ERAF. It is, therefore, recommended that
the Board indicate its support for SB 1319.
CONTINUED ON ATTACHMENT: YES SIGNATURE:
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
✓XPPROVE QTHER
SIGNATURE(S):
ACTION OF BOA -April_Z 5-'20,U__ APPROVE AS RECOMMENDED X OTHER
z
VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE
AND CORRECT COPY OF AN ACTION TAKEN
XX UNANIMOUS(ABSENT -~ �5, - ) AND ENTERED ON THE MINUTES OF THE
BOARD OF SUPERVISORS ON THE DATE
AYES: NOES: SHOWN,
ABSENT: ABSTAIN:
ATTESTED' April 2 5 , 2000
CONTACT: PHIL BATCHELOR,CLERK OF THE BOARD
OF SUPERVISORS AND COUNTY
ADMINISTRATOR
CC: County Administrator
Rich Selthel,special District Analyst
Senator Wesley Chesbro
Room 3070
Sacramento,CA M14
Les Spahnn;Heim,Noack,Kelly&Spahnn
1121 L Street,Suite 100
Sacramento,CA 958144 9 "DEPUTY
TO: BOARD OF SUPERVISORS
Contra
FROM: Costa
r
PHIL BATCHELOR, COUNTY ADMINISTRATOR
DATE: April 25, 1999 r'�r "
County
SUBJECT: LEGISLATION: AB 2264 (CEDILLO)
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)8 BACKGROUND AND JUSTIFICATION
RECOMMENDATION:
ADOPT a position in SUPPORT of AB 2264 by Assemblyman Gil Cedillo of Los Angeles,
known as the Community Care Investment Act of 2000,which would authorize the California
Health Facilities Financing Authority to award grants to eligible participating primary health
care clinics serving indigent,underserved,and uninsured populations in the state,to finance
capital outlay projects.
BACKGROUND:
The California.Health Facilities Financing Authority(CHFFA) offers various services with
respect to the financing of projects for health facilities operated by cities, counties, and
hospital districts,as well as private and non-profits corporations. AB 2264 would authorize
CHFFA to establish a grant program for capital projects proposed by eligible primary care
providers that serve indigent, underserved, and uninsured. populations. Grants would be
awarded to clinics that have met eligibility guidelines to be established by the State
Department of Health Services. The bill also requests that$50,000,000 be appropriated in
the State budget to fund the grant program.
The County's Capital Facilities Master flan,published in January 2000,listed$61.67 million
in unfunded capital projects needed by the Health Services Department,with the two largest
items being replacement of the Martinez and Richmond Health Clinics. The establishment and
funding of this grant program could serve as an important component in the funding of these
projects.
The bill was approved unanimously by the Assembly Committee on Health on April 11,2000,
and has been referred to the Assembly Appropriations Committee.
CONTINUED ON ATTACHMENT: YES SIGNATURE: L.L"4
RECOMMENDATION OF COUNTY ADMINISTRATOR —RECOMMENDATION RECOMMENDATION OF BOARD COMMITTEE
APPROVE OTHER
SIGNATURES: CL4-0-1
ACTION OF BOA April 25 , 000 - APPROVED AS RECOMMENDED OTHER
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A TRUE
XX—UNANIMOUS(ABSENT S ._ _- - ) AND CORRECT COPY OF AN ACTION TAKEN
AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD
ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN.
County Administrator ATTESTED _ April 25 , 2000
Contact: Dr.Bill Walker,Director,Health Services Department PHIL BATCHELOR,CLERK OF THE BOARD OF
cc: Les Spahnn:Helm,Noack,Kelyy&Spahnn SUPERVISORS AND COUNTY ADMINISTRATOR
1121 L Street,Suite 100
Sacramento,CA IT 'f i
BY j DEPUTY
AMENDED IN ASSEMBLY APRIL 10,2000
CALIFORNIA LEGISLATURE-1994-2"REGULAR SESSION
ASSEMBLY BILL No. 2264
Introduced by Assembly Member Cedillo
February 24,2000
An act to amend Seetion Sections 15432 and 15438 of the
Government Code, and to add Section 1204.4 to the Health
and Safety Code,relating to health.
LEGISLATIVE COUNSEL'S DIGEST
AB 2264, as amended, Cedillo. Primary care clinics: grants.
Existing law authorizes the California Health Facilities
Financing Authority to perform various functions with
respect to the financing of projects of health facilities that are
operated by a city, county, city and county, district hospital,
or private,nonprofit corporation or association.
This bill would enact the Community Care Investment Act
of 2000, that would authorize the authority to award grants to
any eligible participating primary care clinic in eennee
with the fitteneing ef serving indigent, underserved, and
uninsured populations in the state, to finance a capital outlay
project in accordance with an agreement between the
authority and the clinic. It would require the authority to
develop eligibility criteria and a process for awarding these
grants.
The bill would also authorize the authority to request
information from the State Department of Health Services
regarding grant applicants for purposes of evaluating these
9&
I
AB 2264 —2—
applications,
2.—applications, and would require the department to comply
with these requests.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
The people of the State of California do enact as follows:
1 SECTION 1. The Legislature finds and declares all of
2 the following:
3 (a) Primary care clinics require a one-time outlay for
4 capital in order to continuously perform their vital role.
5 Many primary care clinics are currently at capacity and
6 in order to increase access to their services and allow
7 them to expand to cover the growing need for health care
8 for the vulnerable populations in California, these capital
9 funds are necessary.
14 (b) Primary care clinics are the health care safety net
11 for the most vulnerable populations in California:
12 uninsured, underinsured, indigent, and those in shortage
13 designation areas. Primary care clinics provide health
14 care regardless of the ability to pay for services.
15 (c) Approximately 7.4 million Californians lack health
16 insurance, a number that increases by 50,000 per month.
17 (d) Primary care clinics have been historically and
18 woefully underfunded.
19 (e) Primary care clinics are the most cost effective
20 means of serving California's vulnerable populations.
21 (f) The failure to adequately fund primary care clinics
22 has resulted in significant costs to the state in the form of
23 unnecessary emergency room visits. Also, the lack of
24 preventive care results in significant costs when patients
25 become severely ill.
26 SEC. 2. Section .15432 of the Government Code is
27 amended to read:
28 15432. As used in this part, the following words and
29 terms shall have the following meanings, unless the
30 context clearly indicates or requires another or different
31 meaning or intent:
32 (a) "Act" means the California Health Facilities
33 Financing Authority Act.
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G'n
—3— AB 2264
1 (b) "Authority" means the California Health Facilities
2 Financing Authority created by this part or any board,
3 body, commission, department, or officer succeeding to
4 the principal functions thereof or to which the powers
5 conferred upon the authority by this part shall be given
6 by law.
7 (c) "Cost," as applied to a project or portion of a
8 project financed under this part, means and includes all
9 or any part of the cost of construction and acquisition of
10 all lands, structures, real or personal property, rights,
11 rights-of-way, franchises, easements, and interests
12 acquired or used for a project, the cost of demolishing or
13 removing any buildings or structures on land so acquired,
14 including the cost of acquiring any lands to which those
15 buildings or structures may be moved, the cost of all
16 machinery and equipment, financing charges, interest
17 prior to, during, and for a period not to exceed the later
18 of one year or one year following completion of
19 construction, as determined by the authority, the cost of
20 funding or financing noncapital expenses, reserves for
21 principal and interest and for extensions, enlargements,
22 additions, replacements, renovations and improvements,
23 the cost of engineering, reasonable financial and legal
24 services, plans, specifications, studies, surveys, estimates,
25 administrative expenses, and other expenses of funding
26 or financing or necessary or incident to determining the
27 feasibility of constructing, any project or incident to the
28 construction or acquisition or financing of any project.
29 (d) "Health facility" means any facility, place, or
30 building which is organized, maintained, and operated
31 for the diagnosis, care, prevention, and treatment of
32 human illness, physical or mental, or developmental
33 disability, including convalescence and rehabilitation and
34 including care during and after pregnancy, or for any one
35 or more of these purposes, for one or more persons, to
36 which the persons are admitted for a 24-hour stay or
37 longer, except in the cases of county outpatient facilities,
38 adult day care facilities, as defined under paragraph (2)
39 of subdivision (a) of Section 1502 of the Health and Safety
40 Code, which provide services to developmentally
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AB 2264 —4-
1
41 disabled or mentally impaired persons, community
2 clinics, as defined in paragraph (6), and child day care
3 facilities, as defined in paragraph (10), and includes all of
4 the following types:
5 (1) A general acute care hospital which is a health
6 facility having a duly constituted governing body with
7 overall administrative and professional responsibility and
8 an organized medical staff which provides 24-hour
9 inpatient care, including the following basic services:
10 medical, nursing, surgical, anesthesia, laboratory,
11 radiology,pharmacy, and dietary services.
12 (2) An acute psychiatric hospital which is a health
13 facility having a duly constituted governing body with
14 overall administrative and professional responsibility and
15 an organized medical staff which provides 24-hour
16 inpatient care for mentally disordered, incompetent, or
17 other patients referred to in Division 5 (commencing
18 with Section 5000) or Division 6 (commencing with
19 Section 6000) of the Welfare and Institutions Code,
20 including the following basic services: medical, nursing,
21 rehabilitative,pharmacy, and dietary services.
22 (3) A skilled nursing facility which is a health facility
23 which provides the following basic services: skilled
24 nursing care and supportive care to patients whose
25 primary need is for availability or skilled nursing care on
26 an extended basis.
27 (4) An intermediate care facility which is a health
28 facility which provides the following basic services:
29 inpatient care to ambulatory or semiambulatory patients
30 who have recurring need for skilled nursing supervision
31 and need supportive care, but who do not require
32 availability or continuous skilled nursing care.
33 (5) A special health care facility which is a health
34 facility having a duly constituted governing body with
35 overall administrative and professional responsibility and
36 an organized medical or dental staff which provides
37 inpatient or outpatient, acute or nonacute care,
38 including, but not limited to, medical, nursing,
39 rehabilitation, dental, or maternity.
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-5— AB 22+64
1 (6) (A) A community clinic which is a clinic operated
2 by a tax-exempt nonprofit corporation which is supported
3 and maintained in whole or in part by donations,
4 bequests, gifts, grants, government funds or
5 contributions, which may be in the form of money, goods,
6 or services. In a community clinic, any charges to the
7 patient shall be based on the patient's ability to pay,
8 utilizing a sliding fee scale. No corporation other than a
9 nonprofit corporation, exempt from federal income
10 taxation under paragraph (3) of subsection (c) of Section
11 5011 of the Internal Revenue Code of 1954 as amended, or
12 a statutory successor thereof, shall operate a community
13 clinic. However, the licensee of any community clinic so
14 licensed on September 26, 1978, shall not be required to
15 obtain tax-exempt status under either federal or state law.
16 No natural person or persons shall operate a community
17 clinic.
18 (B) Notwithstanding subparagraph (A), a primary
19 care clinic, as defined in Section 1204, including a free
20 clinic, for purposes of awarding grants to finance a capital
21 outlay project pursuant to subdivision (t) of Section
22 15438.
23 (7) An adult day health center which is a facility, as
24 defined under subdivision (b) of Section 1570.7 of the
25 Health and Safety Code, which provides adult day health
26 care, as defined under subdivision (a) of Section 1570.7 of
27 the Health and Safety Code.
28 (8) Any other type of facility for the provision of
29 inpatient or outpatient care which is a county health
30 facility, as defined in subdivision (a) of Section 16715 of
31 the Welfare and Institutions Code, (without regard to
32 whether funding is provided for the facility under that
33 section).
34 (9) A multilevel facility is an institutional arrangement
35 where a residential facility for the elderly is operated as
36 a part of, or in conjunction with, an intermediate care
37 facility, a skilled nursing facility, or a general acute care
38 hospital. "Elderly," for the purposes of this paragraph,
39 means a person 62 years of age or older.
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AB 2264 —6-
1
-6—.1 (10) A child day care facility operated in conjunction
2 with a health facility. A child day care facility is a facility,
3 as defined in Section 1596.750 of the Health and Safety
4 Code. For purposes of this paragraph, "child" means a
5 minor from birth to 18 years of age.
6 (11) An intermediate care facility/developmentally
7 disabled habilitative which is a health facility, as defined
8 under subdivision (e) of Section 1250 of the Health and
9 Safety Code.
10 (12) An intermediate care facility/developmentally
11 disabled-nursing which is a health facility, as defined
12 under subdivision (h) of Section 1250 of the Health and
13 Safety Code.
14 (13) A community care facility which is a facility, as
15 defined under subdivision (a) of Section 1502 of the
16 Health and Safety Code, -which provides care,
17 habilitation, rehabilitation, or treatment services to
18 developmentally disabled or mentally impaired persons.
19 (14) A nonprofit community care facility, as defined in
20 subdivision (a) of Section 1502 of the Health and Safety
21 Code, other than a facility which, as defined in that
22 subdivision, is a residential facility for the elderly, a foster
23 family agency, a foster family home, a full service
24 adoption agency,or a noncustodial adoption agency.
25 (15) A nonprofit accredited community work-activity
26 program, as specified in subdivision (e) of Section 19352
27 and Section 19355 of the Welfare and Institutions Code.
28 "Health facility" includes a clinic which is described in
29 subdivision (1) of Section 1206 of the Health and Safety
30 Code.
31 "Health facility" includes the following facilities, if
32 operated in conjunction with one or more of the above
33 types of facilities: a laboratory, laundry, nurses or interns
34 residence, housing for staff or employees and their
35 families, patients or relatives of patients, physicians'
36 facility, administration building, research facility,
37 maintenance, storage, or utility facility and all structures
38 or facilities related to any of the foregoing or required or
39 useful for the operation of a health facility, and the
40 necessary and usual attendant and related facilities and
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-7— AB 2264
1 equipment and including parking and supportive service
2 facilities or structures required or useful for the orderly
3 conduct of such health facility.
4 "Health facility„ also includes: (i) an insurance
5 company or insurance program organized pursuant to
6 subdivision (q) of Section 15438; or (ii) the funding of
7 reserves (including insurance or capital reserves), or
8 payment of premiums to, a reciprocal insurance company
9 or one or more participating health institutions if the
10 funds are used in connection with one or more of the
11 above types of facilities: liability insurance or
12 self-insurance, for a participating health institution,
13 including reserves therefor, and other funds necessary or
14 usual and appropriate in connection therewith.
15 "Health facility" does not include any institution, place,
16 or building used or to be used primarily for sectarian
17 instruction or study or as a place for devotional activities
18 or religious worship.
19 (e) "Participating health institution" means a city, city
20 and county, county, a district hospital, or a private
21 nonprofit corporation or association authorized by the
22 laws of this state to provide or operate a health facility and
23 which, pursuant to the provisions of this part, undertakes
24 the financing or refinancing of the construction or
25 acquisition of a project or of working capital as provided
26 in this part.
27 (f) "Protect" means construction, expansion,
28 remodeling, renovation, furnishing, or equipping, or
29 funding or financing of a health facility or acquisition of
30 a health facility to be financed or refinanced with funds
31 provided in whole or in part pursuant to this part.
32 "Project" may include any combination of one or more of
33 the foregoing undertaken jointly by any participating
34 health institution with one or more other participating
35 health institutions.
36 (g) "''Working capital" means moneys to be used by, or
37 on behalf of, a participating health institution to pay or
38 prepay maintenance or operation expenses or any other
39 costs that would be treated as an expense item, under
40 generally accepted accounting principles, in connection
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AR 2264 -8-
1 with the ownership or operation of a health facility,
2 including, but not limited to, reserves for maintenance or
3 operation expenses, interest for not to exceed one year on
4 any loan for working capital made pursuant to this part,
5 and reserves for debt service with respect to, and any
6 costs necessary or incidental to,that financing.
7 SEC. 3. Section 15438 of the Government Code is
8 amended to read:
9 15438. Subject to the conditions, restrictions, and
10 limitations of Section 15438.1, the authority may do any of
11 the following:
12 (a) Adopt bylaws for the regulation of its affairs and
13 the conduct of its business.
14 (b) Adopt an official seal.
15 (c) Sue and be sued in its own name.
16 (d) Receive and accept from any agency of the United
17 States or any agency of the State of California or any
18 municipality, county or other political subdivision
19 thereof, or from any individual,' association, or
20 corporation gifts, grants, or donations of moneys for
21 achieving any of the purposes of this chapter.
22 (e) Engage the services of private consultants to
23 render professional and technical assistance and advice in
24 carrying out the purposes of this part.
25 (f) Determine the location and character of any
26 project to be financed under this part, and to acquire,
27 construct, enlarge, remodel, renovate, alter, improve,
28 furnish, equip, fund, finance, own, maintain, manage,
29 repair, operate, lease as lessee or lessor and regulate the
30 same, to enter into contracts for any or all of those
31 purposes, to enter into contracts for the management and
32 operation of a project or other health facilities owned by
33 the authority, and to designate a participating health
34 institution as its agent to determine the location and
35 character of a project undertaken by that participating
36 health institution under this chapter and as the agent of
37 the authority, to acquire, construct, enlarge, remodel,
38 renovate, alter, improve, furnish, equip, own, maintain,
39 manage, repair, operate, lease as lessee or lessor and
40 regulate the same, and as the agent of the authority, to
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-9— AB 2264
1 enter into contracts for any or all of those purposes,
2 including contracts for the management and operation of
3 that project or other health facilities owned by the
4 authority.
5 (g) Acquire, directly or by and through a participating
6 health institution as its agent, by purchase solely from
7 funds provided under the authority of this part, or by gift
8 or devise, and to sell, by installment sale or otherwise, any
9 lands, structures, real or personal property, rights,
10 rights-of--way, franchises, easements, and other interests
11 in lands, including lands lying under water and riparian
12 rights, which are located within the state the authority
13 determines necessary or convenient for the acquisition,
14 construction, or financing of a health facility or the
15 acquisition, construction, financing, or operation of a
16 project, upon the terms and at the prices considered by
17 the authority to be reasonable and which can be agreed
18 upon between the authority and the owner thereof, and
19 to take title thereto in the name of the authority or in the
20 name of a participating health institution as its agent.
21 (h) Receive and accept from any source loans,
22 contributions, or grants for, or in aid of, the construction,
23 financing, or refinancing of a project or any portion of a
24 project in money, property, labor, or other things of
25 value.
26 (i) Make secured or unsecured loans to, or purchase
27 secured or unsecured loans of, any participating health
28 institution in connection with the financing of a project
29 or worldng capital in accordance with an agreement
30 between the authority and the participating health
31 institution. However, no loan to finance a project shall
32 exceed the total cost of the project, as determined by the
33 participating health institution * and approved by the
34 authority. bunds for secured loans may be provided from
35 the California Health Facilities Financing Fund pursuant
36 to subdivision (b) of Section 15439 to small or rural health
37 facilities pursuant to authority guidelines.
38 0) Make secured or unsecured loans to, or purchase
39 secured or unsecured loans of, any participating health
40 institution in accordance with an agreement between the
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AB 2264 —10-
1 authority and the participating health institution to
2 refinance indebtedness incurred by that participating
3 health institution in connection with projects undertaken
4 or for health facilities acquired or for working capital
5 financed prior to or after January 1, 1980. Funds for
6 secured loans may be providedd from the California
7 Health Facilities Financing Fund pursuant to subdivision
8 (b) of Section 15439 to small or rural health facilities
9 pursuant to authority guidelines.
10 (k) Mortgage all or any portion of interest of the
11 authority in a project or other health facilities and the
12 property on which that project or other health facilities
13 are located, whether owned or thereafter acquired,
14 including the granting of a security interest in any
15 property, tangible or intangible, and to assign or pledge
16 all or any portion of the interests of the authority in
17 mortgages, deeds of trust, indentures of mortgage or trust
18 or similar instruments, notes, and security interests in
19 property, tangible or intangible, of participating health
20 institutions to which the authority has made loans, and
21 the revenues therefrom, including payments or income
22 from any thereof owned or held by the authority, for the
23 benefit of the holders of bonds issued to finance the
24 project or health facilities or issued to refund or refinance
25 outstanding indebtedness of participating health
26 institutions as permitted by this part.
27 (1) Lease to a participating health institution the
28 project being financed or other health facilities conveyed
29 to the authority in connection with that financing, upon
30 the terms and conditions the authority determines
31 proper, and to charge and collect rents therefor and to
32 terminate the lease upon the failure of the lessee to
33 comply with any of the obligations of the lease; and to
34 include in that lease, if desired, provisions granting the
35 lessee options to renew the term of the lease for the
36 period or periods and at the rent, as determined by the
37 authority, to purchase any or all of the health facilities or
38 that upon payment of all of the indebtedness incurred by
39 the authority for the financing of that project or health
40 facilities or for refunding outstanding indebtedness of a
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1 participating health institution, then the authority may
2 convey any or all of the project or the other health
3 facilities to the lessee or lessees thereof with or without
4 consideration.
5 (m) Charge and equitably apportion among
6 participating health institutions, the administrative costs
7 and expenses incurred by the authority in the exercise of
8 the powers and duties conferred by this part.
9 (n) Obtain, or aid in obtaining, from any department
10 or agency of the United States or of the State of California
11 or any private company, any insurance or guarantee as to,
12 or of, or for the payment or repayment of, interest or
13 principal, or both, or any part thereof, on any loan, lease,
14 or obligation, or any instrument evidencing or securing
15 the loan, lease, or obligation, made or entered into
16 pursuant to this part; and notwithstanding any other
17 provisions of this part, to enter into any agreement,
18 contract, or any other instrument whatsoever with
19 respect to that insurance or guarantee, to accept payment
20 in the manner and form as provided therein in the event
21 of default by a participating health institution, and to
22 assign that insurance or guarantee as security for the
23 authority's bonds.
24 (o) Enter into any and all agreements or contracts,
25 including agreements for liquidity and credit
26 enhancement, interest rate swaps or hedges, execute any
27 and all instruments, and do and perform any and all acts
28 or things necessary, convenient, or desirable for the
29 purposes of the authority or to carry out any power
30 expressly granted by this part.
31 (p) Invest any moneys held in reserve or sinking
32 funds, or any moneys not required for immediate use or
33 disbursement, at the discretion of the authority, in any
34 obligations authorized by the resolution authorizing the
35 issuance of the bonds secured thereof or authorized by
36 law for the investment of trust funds in the custody of the
37 Treasurer.
38 (q) Establish and maintain a reciprocal insurance
39 company or an insurance program that shall be treated
40 and licensed as a reciprocal insurance company for
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AB 2264 —12-
1 regulatory purposes under the Insurance Code on behalf
2 of one or more participating health institutions, to
3 provide for payment of judgments, settlement of claims,
4 expense, loss and damage that arises, or is claimed to have
5 arisen, from any act or omission of, or attributable to, the
6 participating health institution or any nonprofit
7 organization controlled by, or controlling or under
8 common control with, the participating health
9 institution, their employees, agents or others for whom
10 they may be held responsible, in connection with any
11 liability insurance (including medical malpractice); set
12 premiums, ascertain loss experience and expenses and
13 determine credits, refunds, and assessments; and
14 establish limits and terms of coverage; and engage any
15 expert or consultant it deems necessary or appropriate to
16 manage or otherwise assist with the insurance company
17 or program; and pay any expenses in connection
18 therewith; and contract with the participating health
19 institution or institutions for insurance coverage from the
20 insurance company or program and for the payment of
21 any expenses in connection therewith including any
22 bonds issued to fund or finance the insurance company or
23 program.
24 (r) Provide funding for self-insurance for
25 participating health institutions. However, there shall be
26 no pooling of liability risk among participating health
27 institutions except as provided in subdivision (f) of
28 Section 15438.5.
29 (s) (1) Make grants-in-aid to any participating small
30 or rural hospital, as defined in Section 124840 of the
31 Health and Safety Code, in connection with the financing
32 of a project or for working capital in accordance with an
33 agreement between the authority and the hospital.
34 However, no grant to finance a project shall exceed the
35 total cost of the project, as determined by the hospital and
36 approved by the authority.
37 (2) Make grants-in-aid to any small or rural hospital, as
38 defined in Section 124840 of the Health and Safety Code,
39 in accordance with an agreement between the authority
40 and the hospital to discharge indebtedness incurred by
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1 the hospital in connection with projects undertaken, for
2 health facilities acquired, or for working capital financed
3 prior to the effective date of this subdivision.
4 (3) Grants shall be .made pursuant to this subdivision
5 only from HELP Program funds, not to exceed eight
6 hundred seventy thousand dollars ($$70,000). In
7 consultation with representatives of the hospital industry
8 and other affected parties, the authority shall develop a
9 process and criteria for making grants under this
10 subdivision, including obtaining legal opinions on
11 appropriateness of grants to private facilities for capital
12 outlay purposes.
13 (t) (1) Award grants to any eligible participating
14 primary care clinic, as defined in Section 1204 of the
15 Health and Safety Code,
16 of serving indigent, underserved, and uninsured
17 populations in the state, to finance a capital outlay project
18 in accordance with an agreement between the authority
19 and the clinic. The authority shall determine the amount
20 of the grant to be awarded but in no event shall a grant
21 to finance a project exceed the total cost of the project,
22 as determined by the clinic and approved by the
23 authority.
24 (2) Request information from the State Department
25 of Health Services, pursuant to Section 1204.4 of the
26 Health and Safety Code, regarding grant applicants for
27 purposes of evaluating these applications. Grants shall be
28 awarded pursuant to this subdivision only to the extent
29 that funds for this purpose are appropriated in the annual
30 Budget Act. In consultation with representatives of
31 primary care clinics and other affected parties, the
32 authority shall develop eligibility criteria and a process
33 for awarding grants under this subdivision, including
34 obtaining legal opinions on the propriety of awarding
35 grants to private facilities for capital outlay purposes.
36 Grants shalt be awarded only to clinics that have certified
37 to the authority that all eligibility requirements have
38 been met.
39 SEF; 4.
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AB 2264 —14-
1 SEC. 4. Section 1204.4 is added to the Health and
2 Safety Code,to read.
3 1204.4. The State Department of Health Services shall
4 provide information to the California Health Facilities
5 Financing Authority with respect to primary care clinic
6 grant applicants for capital outlay projects as specified in
7 subdivision(t)of Section 15438 of the Government Code.
8 SEC. 5. It is the intent of the Legislature that this act
9 be financed by a one-time appropriation of ,fzfty million
10 dollars ($50,000,000) to the California Health Facilities
11 Financing Authority.
12 SEC. b. This act shall be known, and may be cited, as
13 the Community Clinic Investment Act of 2000.
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