BILL NUMBER: SB 198	CHAPTERED
	BILL TEXT

	CHAPTER  37
	FILED WITH SECRETARY OF STATE  AUGUST 6, 2009
	APPROVED BY GOVERNOR  AUGUST 5, 2009
	PASSED THE SENATE  MAY 14, 2009
	PASSED THE ASSEMBLY  JULY 13, 2009
	AMENDED IN SENATE  APRIL 29, 2009
	AMENDED IN SENATE  APRIL 13, 2009

INTRODUCED BY   Senator Cogdill

                        FEBRUARY 23, 2009

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


	LEGISLATIVE COUNSEL'S DIGEST


   SB 198, 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 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 exempt from the above-described repayment
requirement, the repayment of any money borrowed under a line of
credit established on or after January 1, 2010, for the purpose of
consolidating certain debts and that is to be repaid within 20 years
from each separate borrowing or draw.


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 line of credit shall be repaid
within five years from each separate borrowing or draw upon the line
of credit, except that any money borrowed under a line of credit
established on or after January 1, 2010, for the sole purpose of
consolidating debts incurred by a district prior to January 1, 2010,
shall be repaid within 20 years from each separate borrowing or draw
upon the line of credit. The total amount of debt that a district may
have outstanding at any one time under this line of credit shall not
exceed the amount of two million dollars ($2,000,000).
   (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.