Bill Text: CA AB2098 | 2023-2024 | Regular Session | Enrolled
Bill Title: California Health Facilities Financing Authority Act: nondesignated hospitals: loan repayment.
Spectrum: Slight Partisan Bill (Democrat 2-1)
Status: (Vetoed) 2024-09-28 - Vetoed by Governor. [AB2098 Detail]
Download: California-2023-AB2098-Enrolled.html
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Enrolled
September 05, 2024 |
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Passed
IN
Senate
August 30, 2024 |
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Passed
IN
Assembly
August 31, 2024 |
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Amended
IN
Senate
August 15, 2024 |
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Amended
IN
Assembly
March 21, 2024 |
CALIFORNIA LEGISLATURE—
2023–2024 REGULAR SESSION
Assembly Bill
No. 2098
| Introduced by Assembly Member Garcia (Coauthors: Senators Grove and Padilla) |
February 05, 2024 |
An act to add Chapter 5 (commencing with Section 129400) to Part 6 of Division 107 of the Health and Safety Code, relating to health facilities financing, and making an appropriation therefor.
LEGISLATIVE COUNSEL'S DIGEST
AB 2098, Garcia.
California Health Facilities Financing Authority Act: nondesignated hospitals: loan repayment.
Under existing law, the California Health Facilities Financing Authority Act (act) authorizes the California Health Facilities Financing Authority to, among other things, make loans from the continuously appropriated California Health Facilities Financing Authority Fund to participating health institutions, as defined, for financing or refinancing the acquisition, construction, or remodeling of health facilities. Under the act, the authority is authorized to issue revenue bonds to provide the funds for achieving these purposes. Existing law appropriates $40,000,000 to provide cashflow loans to nondesignated public hospitals, as needed, due to the financial impacts of the COVID-19 public health emergency. Existing law requires the nondesignated public hospitals participating in this loan program to repay and discharge the loan within 24 months of the date of the loan.
This bill would extend the repayment requirements for nondesignated public hospitals participating in the loan program that had received a loan approval from, and entered into a loan and security agreement with, the authority by requiring those hospitals to begin monthly repayments on the loan 24 months after the date of the loan, and discharge the loan within 72 months of the date of the loan, as prescribed. The bill would require the monthly payments to be amortized over the term of the loan, at 0% interest. By removing restrictions limiting the expenditure of moneys appropriated for purposes of these loans, the bill would make an appropriation.
Digest Key
Vote: 2/3 Appropriation: YES Fiscal Committee: YES Local Program: NOBill Text
The people of the State of California do enact as follows:
SECTION 1.
Chapter 5 (commencing with Section 129400) is added to Part 6 of Division 107 of the Health and Safety Code, to read:CHAPTER 5. Health Facility Grants and Loans
129400.
The following definitions apply for purposes of this section:(a) “Authority” means the California Health Facilities Financing Authority.
(b) “Nondesignated public hospital” means a public hospital as that term is defined in subdivision (l) of Section 14165.55 of the Welfare and Institutions Code, excluding those affiliated with county health systems.
129401.
(a) The authority shall extend the repayment period as described in subdivision (b) for nondesignated public hospitals participating in the loan program authorized under Provision (1) of Item 0977-101-0001 of Section 2.00 of the Budget Act of 2022 (Chapter 45 of the Statutes of 2022) that had received a loan approval from, and entered into a loan and security agreement with, the authority.(b) Notwithstanding Provision (1)(e) of Item 0977-101-0001 of Section 2.00 of the Budget Act of 2022 (Chapter 45 of the Statutes of 2022) and any other law to the contrary, a nondesignated public hospital participating in the loan program described in subdivision (a) that had received a loan approval from, and entered into a loan and security agreement with,
the authority shall be required to begin monthly repayments on the loan 24 months after the date of that loan, and shall discharge the loan within 72 months of the date of that loan. The monthly payments shall be amortized over the term of the loan, at 0 percent interest. There shall be no prepayment penalty.
(c) Except as provided in subdivision (b), this section shall not be construed to amend or otherwise affect the requirements of, or the authorities conferred to implement, the loan program pursuant to Provision (1) of Item 0977-101-0001 of Section 2.00 of the Budget Act of 2022 (Chapter 45 of the Statutes of 2022).
