Bill Text: CA AB2737 | 2015-2016 | Regular Session | Chaptered

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Bill Title: Nonprovider health care districts.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2016-09-21 - Chaptered by Secretary of State - Chapter 421, Statutes of 2016. [AB2737 Detail]

Download: California-2015-AB2737-Chaptered.html

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BILL NUMBER: AB 2737	CHAPTERED
	BILL TEXT

	CHAPTER  421
	FILED WITH SECRETARY OF STATE  SEPTEMBER 21, 2016
	APPROVED BY GOVERNOR  SEPTEMBER 21, 2016
	PASSED THE SENATE  AUGUST 23, 2016
	PASSED THE ASSEMBLY  AUGUST 29, 2016
	AMENDED IN SENATE  JUNE 20, 2016
	AMENDED IN ASSEMBLY  MAY 24, 2016
	AMENDED IN ASSEMBLY  APRIL 11, 2016
	AMENDED IN ASSEMBLY  MARCH 17, 2016

INTRODUCED BY   Assembly Member Bonta

                        FEBRUARY 19, 2016

   An act to add Chapter 8 (commencing with Section 32495) to
Division 23 of the Health and Safety Code, relating to health care
districts.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2737, Bonta. Nonprovider health care districts.
   The Local Health Care District Law provides for local health care
districts that govern certain health care facilities. Each health
care district has specific duties and powers respecting the creation,
administration, and maintenance of the districts, including the
authority to purchase, receive, take, hold, lease, use, and enjoy
property of every kind and description within and without the limits
of the district.
   This bill would require a nonprovider health care district, as
defined, to spend at least 80% of its annual budget on community
grants awarded to organizations that provide direct health services
and not more than 20% of its annual budget on administrative
expenses, as defined. The bill would require a nonprovider health
care district to pay any amount required to be paid in the district's
annual budget year by a final judgment, court order, or arbitration
award before payment of those grants or administrative expenses, as
specified. By requiring a higher level of service from nonprovider
health care districts, this bill would impose a state-mandated local
program.
   The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Chapter 8 (commencing with Section 32495) is added to
Division 23 of the Health and Safety Code, to read:
      CHAPTER 8.  NONPROVIDER HEALTH CARE DISTRICTS


   32495.  For the purposes of this chapter, the following
definitions shall apply:
   (a) "Administrative expenses" means expenses relating to the
general management of a health care district, such as accounting,
budgeting, personnel, procurement, legal fees, legislative advocacy
services, public relations, salaries, benefits, rent, office
supplies, or other miscellaneous overhead costs.
   (b) "Direct health service" means ownership or direct operation of
a hospital, medical clinic, ambulance service, transportation
program for seniors or persons with disabilities, a wellness center,
health education, or other similar service.
   (c) "Nonprovider health care district" means a health care
district that meets all of the following criteria:
   (1) The district does not provide direct health care services to
consumers.
   (2) The district has not received an allocation of real property
taxes in the past three years.
   (3) The district has assets of twenty million dollars
($20,000,000) or more.
   (4) The district is not located in a rural area that is typically
underserved for health care services.
   (5) In two or more consecutive years, the amount the district has
dedicated to community grants has amounted to less than twice the
total administrative costs and overhead not directly associated with
revenue-generating enterprises.
   32496.  (a) A nonprovider health care district shall not spend
more than 20 percent of its annual budget on administrative expenses.

   (b) A nonprovider health care district shall spend at least 80
percent of its annual budget on community grants awarded to
organizations that provide direct health services.
   32498.  Notwithstanding Section 32496, and prior to payment of any
annual budget item described in Section 32496, a nonprovider health
care district shall pay any amount required to be paid in the
district's annual budget year by a final judgment, court order, or
arbitration award for which appeals have been exhausted or for which
the period for appeal has expired, enforcement of which is not barred
by the order of any court or by any statutory provision, and which
has not been nullified or rendered void by any court order or
statutory provision.
  SEC. 2.  If the Commission on State Mandates determines that this
act contains costs mandated by the state, reimbursement to local
agencies and school districts for those costs shall be made pursuant
to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of
the Government Code.