Bill Text: CA SB198 | 2009-2010 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Health care districts: John C. Fremont Health Care

Spectrum: Partisan Bill (Republican 1-0)

Status: (Passed) 2009-08-06 - Chaptered by Secretary of State. Chapter 37, Statutes of 2009. [SB198 Detail]

Download: California-2009-SB198-Amended.html

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BILL NUMBER: SB 198	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 13, 2009

INTRODUCED BY   Senator Cogdill

                        FEBRUARY 23, 2009

   An act to amend Section  32130   32130.6
 of the Health and Safety Code, relating to health care
districts.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 198, as amended, Cogdill. Health care districts: John C.
Fremont Health Care District.
   Existing law, the Local Health Care District Law, provides for the
formation of local health care districts and specifies district
powers. Existing law authorizes health care districts to 
borrow money and incur indebtedness in an amount not to exceed 85% of
all estimated income and revenue for the current fiscal year.
Existing law also requires the money borrowed and indebtedness
incurred to be repaid within the same fiscal year  
enter into a secured line of credit with a commercial lender, as
specified, and requires any money borrowed under this line of credit
to be repaid within 5 years from each separate borrowing or draw
 . 
   This bill would authorize the John C. Fremont Health Care District
to borrow money and incur indebtedness without being subject to the
above-described provisions of existing law.  
   This bill would also state the findings and declarations of the
Legislature concerning the need for special legislation. 

   This bill would require any money borrowed under a line of credit
established on or after January 1, 2010, to be repaid within 20 years
from each separate borrowing or draw. 
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


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

   SECTION 1.    Section 32130.6 of the  
Health and Safety Code   is amended to read: 
   32130.6.  Notwithstanding any other provision of law, a district
may do any of the following by resolution adopted by a majority of
the district board:
   (a) Enter into a line of credit with a commercial lender that is
secured, in whole or in part, by the accounts receivable or other
intangible assets of the district, including anticipated tax
revenues, and thereafter borrow funds against the line of credit to
be used for any district purpose.
   (1) Any money borrowed under  this   a 
line of credit  established prior to January 1, 2010,  shall
be repaid within five years from each separate borrowing or draw
upon the line of credit.  Any money borrowed under a line of
credit established on or after January 1, 2010, shall be repaid
within 20 years from each separate borrowing or draw upon the line of
credit. 
   (2) The district may enter into a new and separate line of credit
to repay a previous line of credit, provided that the district
complies with this section in entering into a new line of credit.
   (b) Enter into capital leases for the purchase by the district of
equipment to be used for any district purpose.
   (1) The term of any capital lease shall not be longer than 10
years.
   (2) The district may secure the purchase of equipment by a capital
lease by giving the lender a security interest in the equipment
leased under the capital lease.
   (c) Enter into lease-purchase agreements for the purchase by the
district of real property, buildings, and facilities to be used for
any district purpose. The term of any lease-purchase agreement shall
not exceed 10 years.
   (d) Nothing in this section shall provide the district with the
authority to increase taxes in order to repay a line of credit
established pursuant to subdivision (a) unless the tax is passed
pursuant to Article 4.6 (commencing with Section 53750) of Chapter 4
of Part 1 of Division 2 of Title 5 of the Government Code. 
  SECTION 1.    Section 32130 of the Health and
Safety Code is amended to read:
   32130.  (a) A district may borrow money and incur indebtedness in
an amount not to exceed 85 percent of all estimated income and
revenue for the current fiscal year, including, but not limited to,
tax revenues, operating income, and any other miscellaneous income
received by the district, from whatever source derived. The money
borrowed and indebtedness incurred under this subdivision shall be
repaid within the same fiscal year.
   (b) The John C. Fremont Health Care District may borrow money and
incur indebtedness without being subject to subdivision (a).
 
  SEC. 2.    Due to the unique circumstances
concerning the John C. Fremont Health Care District within Mariposa
County, the Legislature finds and declares that a general statute
cannot be made applicable within the meaning of Section 16 of Article
IV of the California Constitution. Therefore, this act is
necessarily applicable only to the John C. Fremont Health Care
District.