Bill Text: CA AB2546 | 2013-2014 | Regular Session | Chaptered
Bill Title: Kern County Hospital Authority.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2014-09-26 - Chaptered by Secretary of State - Chapter 613, Statutes of 2014. [AB2546 Detail]
Download: California-2013-AB2546-Chaptered.html
BILL NUMBER: AB 2546 CHAPTERED
BILL TEXT
CHAPTER 613
FILED WITH SECRETARY OF STATE SEPTEMBER 26, 2014
APPROVED BY GOVERNOR SEPTEMBER 26, 2014
PASSED THE SENATE AUGUST 14, 2014
PASSED THE ASSEMBLY AUGUST 21, 2014
AMENDED IN SENATE AUGUST 11, 2014
AMENDED IN SENATE JUNE 26, 2014
AMENDED IN SENATE JUNE 10, 2014
AMENDED IN ASSEMBLY MAY 15, 2014
AMENDED IN ASSEMBLY APRIL 29, 2014
AMENDED IN ASSEMBLY MARCH 28, 2014
INTRODUCED BY Assembly Member Salas
FEBRUARY 21, 2014
An act to amend Section 31468 of, and to add Section 31552.5 to,
the Government Code, and to add Chapter 5.5 (commencing with Section
101852) to Part 4 of Division 101 of the Health and Safety Code,
relating to public health.
LEGISLATIVE COUNSEL'S DIGEST
AB 2546, Salas. Kern County Hospital Authority.
Existing law authorizes the board of supervisors of certain
counties to establish a hospital authority for the management,
administration, and control of certain medical facilities.
This bill would authorize the board of supervisors of the County
of Kern to establish, by ordinance, the Kern County Hospital
Authority to manage, administer, and control the Kern Medical Center
and for the operation of additional programs, clinics and other
facilities, care organizations, physician practice plans, and
delivery systems that may be affiliated or consolidated with the
medical center. The bill would also authorize the establishment of
the authority to negotiate and enter into contracts to provide or
arrange, or provide directly, on a fee-for-service, capitated, or
other basis, health care services to specified individuals.
The bill would require the board of supervisors, in the enabling
ordinance, to establish the terms and conditions of the transfers to
the authority from the county, which includes, among other things,
any transfer of real and personal property. The bill would require
the authority to be governed by a board of governors, and would
require the board of supervisors, in the enabling ordinance, to
specify, among other things, the number of members and composition of
membership of the board of governors and the qualifications of
members.
The bill would grant to the authority, among other powers, the
duties, privileges, immunities, rights, liabilities, and limitations
of a local unit of government within the state. The bill would
specify that the transfer to the authority of the management,
administration, and control of the medical center does not affect the
eligibility of the county for, but authorizes the authority to
participate in and receive, various sources of funding, as specified,
including various Medi-Cal programs. The bill would require the
board of supervisors to adopt, and the authority to implement, a
personnel transition plan that requires specified actions, including
ongoing communication to employees and recognized employee
organizations regarding the impact of the transition on certain
existing employees and employee classifications.
The bill would authorize the board of supervisors to find and
declare that the authority ceases to exist, and in that event, the
bill would require the board of supervisors to provide for the
disposition of the authority's assets, obligations, and liabilities,
as specified.
Existing law, the County Employees Retirement Law of 1937,
authorizes counties to establish retirement systems, as specified, in
order to provide pension benefits to county, city, and district
employees. Existing law defines a district for these purposes as a
district, formed under the laws of the state, located wholly or
partially within the county other than a school district.
This bill would include the authority within the definition of
district and would authorize employees of the authority to
participate in the Kern County Employees' Retirement Association, as
specified.
Existing constitutional provisions require that a statute that
limits the right of access to the meetings of public bodies or the
writings of public officials and agencies be adopted with findings
demonstrating the interest protected by the limitation and the need
for protecting that interest.
This bill would make legislative findings to that effect.
This bill would incorporate additional changes to Section 31468 of
the Government Code proposed by SB 673 that would become operative
if this bill and SB 673 are both enacted and this bill is enacted
last.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 31468 of the Government Code is amended to
read:
31468. (a) "District" means a district, formed under the laws of
the state, located wholly or partially within the county other than a
school district.
(b) "District" also includes any institution operated by two or
more counties, in one of which there has been adopted an ordinance
placing this chapter in operation.
(c) "District" also includes any organization or association
authorized by Chapter 26 of the Statutes of 1935, as amended by
Chapter 30 of the Statutes of 1941, or by Section 50024, which
organization or association is maintained and supported entirely from
funds derived from counties, and the board of any retirement system
is authorized to receive the officers and employees of that
organization or association into the retirement system managed by the
board.
(d) "District" also includes, but is not limited to, any sanitary
district formed under Part 1 (commencing with Section 6400) of
Division 6 of the Health and Safety Code.
(e) "District" also includes any city, public authority, public
agency, and any other political subdivision or public corporation
formed or created under the constitution or laws of this state and
located or having jurisdiction wholly or partially within the county.
(f) "District" also includes any nonprofit corporation or
association conducting an agricultural fair for the county pursuant
to a contract between the corporation or association and the board of
supervisors under the authority of Section 25905.
(g) "District" also includes the Regents of the University of
California, but with respect only to employees who were employees of
a county in a county hospital, who became university employees
pursuant to an agreement for transfer to the regents of a county
hospital or of the obligation to provide professional medical
services at a county hospital, and who under that agreement had the
right and did elect to continue membership in the county's retirement
system established under this chapter.
(h) "District" also includes the South Coast Air Quality
Management District, a new public agency created on February 1, 1977,
pursuant to Chapter 5.5 (commencing with Section 40400) of Part 3 of
Division 26 of the Health and Safety Code.
(1) Employees of the South Coast Air Quality Management District
shall be deemed to be employees of a new public agency occupying new
positions on February 1, 1977. On that date, those new positions are
deemed not to have been covered by any retirement system.
(2) No retirement system coverage may be effected for an employee
of the South Coast Air Quality Management District who commenced
employment with the district during the period commencing on February
1, 1977, and ending on December 31, 1978, unless and until the
employee shall have elected whether to become a member of the
retirement association established in accordance with this chapter
for employees of Los Angeles County or the retirement association
established in accordance with this chapter for employees of San
Bernardino County. The election shall occur before January 1, 1980.
Any employee who fails to make the election provided for herein shall
be deemed to have elected to become a member of the retirement
association established in accordance with this chapter for the
County of Los Angeles.
(3) The South Coast Air Quality Management District shall make
application to the retirement associations established in accordance
with this chapter for employees of Los Angeles County and San
Bernardino County for coverage of employees of the South Coast Air
Quality Management District.
(4) An employee of the South Coast Air Quality Management District
who commenced employment with the district during the period
commencing on February 1, 1977, and ending on December 31, 1978, and
who has not terminated employment before January 1, 1980, shall be
covered by the retirement association elected by the employee
pursuant to paragraph (2). That coverage shall be effected no later
than the first day of the first month following the date of the
election provided for in paragraph (2).
(5) Each electing employee shall receive credit for all service
with the South Coast Air Quality Management District. However, the
elected retirement association may require, as a prerequisite to
granting that credit, the payment of an appropriate sum of money or
the transfer of funds from another retirement association in an
amount determined by an enrolled actuary and approved by the elected
retirement association's board. The amount to be paid shall include
all administrative and actuarial costs of making that determination.
The amount to be paid shall be shared by the South Coast Air Quality
Management District and the employee. The share to be paid by the
employee shall be determined by good faith bargaining between the
district and the recognized employee organization, but in no event
shall the employee be required to contribute more than 25 percent of
the total amount required to be paid. The elected retirement
association's board may not grant that credit for that prior service
unless the request for that credit is made to, and the required
payment deposited with, the elected retirement association's board no
earlier than January 1, 1980, and no later than June 30, 1980. The
foregoing shall have no effect on any employee's rights to reciprocal
benefits under Article 15 (commencing with Section 31830).
(6) An employee of the South Coast Air Quality Management District
who commenced employment with the district after December 31, 1978,
shall be covered by the retirement association established in
accordance with this chapter for employees of San Bernardino County.
That coverage shall be effected as of the first day of the first
month following the employee's commencement date.
(7) Notwithstanding paragraphs (2) and (4) above, employees of the
South Coast Air Quality Management District who were employed
between February 1, 1977, and December 31, 1978, and who terminate
their employment between February 1, 1977, and January 1, 1980, shall
be deemed to be members of the retirement association established in
accordance with this chapter for the employees of Los Angeles County
commencing on the date of their employment with the South Coast Air
Quality Management District.
(i) "District" also includes any nonprofit corporation that
operates one or more museums within a county of the 15th class, as
described by Sections 28020 and 28036 of the Government Code, as
amended by Chapter 1204 of the Statutes of 1971, pursuant to a
contract between the corporation and the board of supervisors of the
county, and that has entered into an agreement with the board and the
county setting forth the terms and conditions of the corporation's
inclusion in the county's retirement system.
(j) "District" also includes any economic development association
funded in whole or in part by a county of the 15th class, as
described by Sections 28020 and 28036 of the Government Code, as
amended by Chapter 1204 of the Statutes of 1971, and that has entered
into an agreement with the board of supervisors and the county
setting forth the terms and conditions of the association's inclusion
in the county's retirement system.
(k) "District" also includes any special commission established in
the Counties of Tulare and San Joaquin as described by Section
14087.31 of the Welfare and Institutions Code, pursuant to a contract
between the special commission and the county setting forth the
terms and conditions of the special commission's inclusion in the
county's retirement system with the approval of the board of
supervisors and the board of retirement.
( l ) (1) "District" also includes the retirement
system established under this chapter in Orange County.
(2) "District" also includes the retirement system established
under this chapter in San Bernardino County at such time as the board
of retirement, by resolution, makes this section applicable in that
county.
(m) "District" also includes the Kern County Hospital Authority, a
public agency that is a local unit of government established
pursuant to Chapter 5.5 (commencing with Section 101852) of Part 4 of
Division 101 of the Health and Safety Code.
SEC. 1.5. Section 31468 of the Government Code is amended to read:
31468. (a) "District" means a district, formed under the laws of
the state, located wholly or partially within the county other than a
school district.
(b) "District" also includes any institution operated by two or
more counties, in one of which there has been adopted an ordinance
placing this chapter in operation.
(c) "District" also includes any organization or association
authorized by Chapter 26 of the Statutes of 1935, as amended by
Chapter 30 of the Statutes of 1941, or by Section 50024, which
organization or association is maintained and supported entirely from
funds derived from counties, and the board of any retirement system
is authorized to receive the officers and employees of that
organization or association into the retirement system managed by the
board.
(d) "District" also includes, but is not limited to, any sanitary
district formed under Part 1 (commencing with Section 6400) of
Division 6 of the Health and Safety Code.
(e) "District" also includes any city, public authority, public
agency, and any other political subdivision or public corporation
formed or created under the constitution or laws of this state and
located or having jurisdiction wholly or partially within the county.
(f) "District" also includes any nonprofit corporation or
association conducting an agricultural fair for the county pursuant
to a contract between the corporation or association and the board of
supervisors under the authority of Section 25905.
(g) "District" also includes the Regents of the University of
California, but with respect only to employees who were employees of
a county in a county hospital, who became university employees
pursuant to an agreement for transfer to the regents of a county
hospital or of the obligation to provide professional medical
services at a county hospital, and who under that agreement had the
right and did elect to continue membership in the county's retirement
system established under this chapter.
(h) "District" also includes the South Coast Air Quality
Management District, a new public agency created on February 1, 1977,
pursuant to Chapter 5.5 (commencing with Section 40400) of Part 3 of
Division 26 of the Health and Safety Code.
(1) Employees of the South Coast Air Quality Management District
shall be deemed to be employees of a new public agency occupying new
positions on February 1, 1977. On that date, those new positions are
deemed not to have been covered by any retirement system.
(2) No retirement system coverage may be effected for an employee
of the South Coast Air Quality Management District who commenced
employment with the district during the period commencing on February
1, 1977, and ending on December 31, 1978, unless and until the
employee shall have elected whether to become a member of the
retirement association established in accordance with this chapter
for employees of Los Angeles County or the retirement association
established in accordance with this chapter for employees of San
Bernardino County. The election shall occur before January 1, 1980.
Any employee who fails to make the election provided for herein shall
be deemed to have elected to become a member of the retirement
association established in accordance with this chapter for the
County of Los Angeles.
(3) The South Coast Air Quality Management District shall make
application to the retirement associations established in accordance
with this chapter for employees of Los Angeles County and San
Bernardino County for coverage of employees of the South Coast Air
Quality Management District.
(4) An employee of the South Coast Air Quality Management District
who commenced employment with the district during the period
commencing on February 1, 1977, and ending on December 31, 1978, and
who has not terminated employment before January 1, 1980, shall be
covered by the retirement association elected by the employee
pursuant to paragraph (2). That coverage shall be effected no later
than the first day of the first month following the date of the
election provided for in paragraph (2).
(5) Each electing employee shall receive credit for all service
with the South Coast Air Quality Management District. However, the
elected retirement association may require, as a prerequisite to
granting that credit, the payment of an appropriate sum of money or
the transfer of funds from another retirement association in an
amount determined by an enrolled actuary and approved by the elected
retirement association's board. The amount to be paid shall include
all administrative and actuarial costs of making that determination.
The amount to be paid shall be shared by the South Coast Air Quality
Management District and the employee. The share to be paid by the
employee shall be determined by good faith bargaining between the
district and the recognized employee organization, but in no event
shall the employee be required to contribute more than 25 percent of
the total amount required to be paid. The elected retirement
association's board may not grant that credit for that prior service
unless the request for that credit is made to, and the required
payment deposited with, the elected retirement association's board no
earlier than January 1, 1980, and no later than June 30, 1980. The
foregoing shall have no effect on any employee's rights to reciprocal
benefits under Article 15 (commencing with Section 31830).
(6) An employee of the South Coast Air Quality Management District
who commenced employment with the district after December 31, 1978,
shall be covered by the retirement association established in
accordance with this chapter for employees of San Bernardino County.
That coverage shall be effected as of the first day of the first
month following the employee's commencement date.
(7) Notwithstanding paragraphs (2) and (4) above, employees of the
South Coast Air Quality Management District who were employed
between February 1, 1977, and December 31, 1978, and who terminate
their employment between February 1, 1977, and January 1, 1980, shall
be deemed to be members of the retirement association established in
accordance with this chapter for the employees of Los Angeles County
commencing on the date of their employment with the South Coast Air
Quality Management District.
(i) "District" also includes any nonprofit corporation that
operates one or more museums within a county of the 15th class, as
described by Sections 28020 and 28036 of the Government Code, as
amended by Chapter 1204 of the Statutes of 1971, pursuant to a
contract between the corporation and the board of supervisors of the
county, and that has entered into an agreement with the board and the
county setting forth the terms and conditions of the corporation's
inclusion in the county's retirement system.
(j) "District" also includes any economic development association
funded in whole or in part by a county of the 15th class, as
described by Sections 28020 and 28036 of the Government Code, as
amended by Chapter 1204 of the Statutes of 1971, and that has entered
into an agreement with the board of supervisors and the county
setting forth the terms and conditions of the association's inclusion
in the county's retirement system.
(k) "District" also includes any special commission established in
the Counties of Tulare and San Joaquin as described by Section
14087.31 of the Welfare and Institutions Code, pursuant to a contract
between the special commission and the county setting forth the
terms and conditions of the special commission's inclusion in the
county's retirement system with the approval of the board of
supervisors and the board of retirement.
( l ) (1) "District" also includes the retirement
system established under this chapter in Orange County.
(2) "District" also includes the retirement system established
under this chapter in San Bernardino County at such time as the board
of retirement, by resolution, makes this section applicable in that
county.
(3) "District" also includes the retirement system established
under this chapter in Contra Costa County.
(m) "District" also includes the Kern County Hospital Authority, a
public agency that is a local unit of government established
pursuant to Chapter 5.5 (commencing with Section 101852) of Part 4 of
Division 101 of the Health and Safety Code.
SEC. 2. Section 31552.5 is added to the Government Code, to read:
31552.5. Employees and officers of the Kern County Hospital
Authority, a public agency that is a local unit of government
established pursuant to Chapter 5.5 (commencing with Section 101852)
of Part 4 of Division 101 of the Health and Safety Code, shall not
automatically become members of the Kern County Employees' Retirement
Association, but shall have their eligibility for membership in the
Kern County Employees' Retirement Association be established pursuant
to the provisions of that chapter.
SEC. 3. Chapter 5.5 (commencing with Section 101852) is added to
Part 4 of Division 101 of the Health and Safety Code, to read:
CHAPTER 5.5. KERN COUNTY HOSPITAL AUTHORITY ACT
Article 1. General Provisions
101852. (a) This chapter shall be known and may be cited as the
Kern County Hospital Authority Act.
(b) The Legislature finds and declares all of the following:
(1) Kern Medical Center, an acute care hospital currently operated
as a constituent department of the County of Kern, is a designated
public hospital, as defined in subdivision (d) of Section 14166.1 of
the Welfare and Institutions Code, and a critical component of the
state's health care safety net.
(2) Counties are authorized under current law to integrate their
county hospital services with those of other hospitals into a system
of community service that offers free choice of hospitals to those
requiring hospital care, with the objective of eliminating
discrimination or segregation based on economic disability, so that
the county hospital and other hospitals in the community share in
providing services to paying patients and to those who qualify for
care in public medical care programs. However, in a new era of health
care delivery, it is necessary to pursue approaches that transition
beyond acute care-centric orientations.
(3) The ongoing evolution of the health care environment requires
public entities providing or arranging health care services to pursue
innovative health care delivery models that proactively improve the
quality of patient care services and patient experience, efficiently
and effectively increase access to needed health care services across
the care continuum, provide services in a patient-centered manner,
and moderate the rate of growth of health care expenditures.
(4) The board of supervisors of the County of Kern has determined
that providing access to affordable, high-quality health care
services, and ensuring the full engagement and viability of the
health care safety net in the county are essential for improving the
health status of the people of the County of Kern. To further this
imperative, it is necessary that the Kern Medical Center, while
continuing as a designated public hospital and maintaining its
mission, is provided with an organizational and operational structure
that facilitates and improves its ability to function with
flexibility, responsiveness, and innovation to promote a
patient-centric system of care delivery featuring community-based
care. This can best be accomplished by allowing the operation of the
Kern Medical Center, along with other health-related resources, under
a new hospital authority that is able to pursue efforts towards a
delivery system that embraces population health management
strategies, is effectively positioned for health plan-provider
alignment, and maximizes opportunities for employees and enhancement
of staff morale.
(5) This chapter is necessary to allow the formation of a public
hospital authority for the purposes described above.
101852.1. For purposes of this chapter, the following definitions
shall apply:
(a) "Authority" means the Kern Hospital System Authority
established pursuant to this chapter.
(b) "Board of supervisors" means the board of supervisors of the
County of Kern.
(c) "Board of governors" means the governing body of the
authority.
(d) "County" means the County of Kern.
(e) "Enabling ordinance" means the county ordinance enacted by the
board of supervisors pursuant to this chapter to establish the
authority, as it may be amended from time to time.
(f) "Medical center" means the assets and liabilities comprising
the Kern Medical Center, including, without limitation, a licensed
acute care hospital and related public health care programs,
facilities, care organizations, physician practice plans and delivery
systems, which may be hospital-based or nonhospital-based, as
specified by the board of supervisors or the authority now or in the
future, as the case may be, depending on which entity controls the
medical center.
Article 2. Establishment of the Kern County Hospital Authority
101853. (a) Pursuant to this chapter, the board of supervisors
may establish by ordinance the Kern County Hospital Authority, which
shall be a public agency that is a local unit of government separate
and apart from the county and any other public entity for all
purposes. The authority established pursuant to this chapter shall
file the statement required by Section 53051 of the Government Code,
and is a public entity for purposes of Division 3.6 (commencing with
Section 810) of Title 1 of the Government Code.
(b) The purpose of the authority shall be to do all of the
following:
(1) Provide management, administration, and other controls
consistent with this chapter as needed to operate the medical center
and maintain its status as a designated public hospital, as defined
in subdivision (d) of Section 14166.1 of the Welfare and Institutions
Code, and for the operation of additional programs, clinics and
other facilities, care organizations, health care service and
physician practice plans, and delivery systems that may be affiliated
or consolidated with the medical center, to ensure the viability of
the health care safety net in the county in a manner consistent with
the county's requirements under Section 17000 of the Welfare and
Institutions Code.
(2) Provide management, administration, and other controls
consistent with this chapter to negotiate and enter into contracts to
provide or arrange, or provide directly, on a fee-for-service,
capitated, or other basis, health care services to individuals
including, but not limited to, those covered under Subchapters XVIII
(commencing with Section 1395), XIX (commencing with Section 1396),
and XXI (commencing with Section 1397aa) of Chapter 7 of Title 42 of
the United States Code, those entitled to coverage under private
group coverage, private individual coverage, including without
limitation, coverage through Covered California, other publicly
supported programs, those employed by public agencies or private
businesses, and uninsured or indigent individuals.
(c) Subject to the requirements of this chapter, the authority
shall have and be charged with authority for the management,
administration, and control of the medical center and other
health-related resources. The State Department of Health Care
Services shall take all necessary steps to ensure all of the
following:
(1) The authority is permitted to operate the medical center.
(2) The medical center continues its status as a designated public
hospital to at least the same extent as it would be designated in
the absence of its transfer to the authority pursuant to this
chapter.
(3) The authority may participate as a contributing public agency
for all of the purposes specified in Section 433.51 of Title 42 of
the Code of Federal Regulations, to the extent permitted by federal
law.
(d) The board of supervisors, in the enabling ordinance, shall
establish the terms and conditions of the transfer to the authority
from the county, including, but not limited to, all of the following:
(1) Any transfer of real and personal property, assets, and
liabilities, including, but not limited to, liabilities of the
medical center determined and assigned by the county for county funds
previously advanced, but not repaid or otherwise recovered, to fund
the operations of the medical center.
(2) Transfer of employees, including any necessary personnel
transition plan, as specified in Section 101853.1, allocation of
credit for funded pension assets and responsibility for any unfunded
pension liabilities under the Kern County Employees' Retirement
Association or other retirement plans, and funding of the accrued
benefits of employees of the authority in the event of withdrawal
from the plan or dissolution of the authority. Any allocation of
credit for funded pension assets and responsibility for any unfunded
pension liabilities with respect to the Kern County Employees'
Retirement Association must be approved by its governing board of
retirement after consideration of legal and actuarial analysis, and
no such allocation may be made that would jeopardize the qualified
status of the Kern County Employees' Retirement Association under the
federal Internal Revenue Code.
(3) Maintenance, operation, and management or ownership of the
medical center.
(4) Transfer of licenses.
(5) Any other matters as the board of supervisors deems necessary,
appropriate, or convenient for the conduct of the authority's
activities.
(e) (1) Notwithstanding any other law, a transfer of maintenance,
operation, and management or ownership or lease of the medical center
to the authority may be made, with or without the payment of a
purchase price by the authority, and otherwise upon the terms and
conditions as found necessary by the board of supervisors and
specified in the enabling ordinance to ensure that the transfer will
constitute an ongoing material benefit to the county and its
residents.
(2) A transfer of the maintenance, operation, and management, or
ownership or lease of the medical center to the authority shall not
be construed as empowering the authority to transfer any ownership
interest of the county in any portion of the medical center except as
otherwise approved by the board of supervisors.
(3) The authority
shall not transfer the maintenance, operation, and management or
ownership or lease of the medical center to any other person or
entity without the prior written approval of the board of
supervisors. This paragraph shall not prevent the county, by
ordinance, from allowing the disposal of obsolete or surplus
equipment, supplies, or furnishings of the medical center by the
authority.
(4) With respect to the maintenance, operation, and management or
ownership or lease of the medical center, the authority shall conform
to both of the following requirements:
(A) Comply with any applicable requirements of Section 14000.2 of
the Welfare and Institutions Code.
(B) Comply with any applicable requirements of Section 1442.5.
(5) The board of supervisors may retain control of the medical
center physical plant and facilities, as specifically provided for in
the enabling ordinance or other lawful agreements entered into by
the board of supervisors. Any lease agreement between the county and
the authority shall provide that county premises shall not be sublet
without the approval of the board of supervisors.
(6) Notwithstanding any other provision of this chapter, and
whether or not accompanied by a change in licensing, the authority's
responsibility for the maintenance, operation, and management of the
medical center, or any ownership or leasehold interest of the
authority in the medical center, does not relieve the county of the
ultimate responsibility for indigent care pursuant to Section 17000
of the Welfare and Institutions Code.
(7) For purposes of Article 12 (commencing with Section 17612.1)
of Chapter 6 of Part 5 of Division 9 of the Welfare and Institutions
Code, and the definition set forth in subdivision (f) of Section
17612.2 of the Welfare and Institutions Code, the medical center,
excluding components that provide predominately public health
services, and the county are affiliated governmental entities.
(f) The board of supervisors may contract with the authority for
the provision of indigent care services on behalf of the county. The
contract shall specify that county policies, as may be modified from
time to time and consistent with the county's obligations under
Section 17000 of the Welfare and Institutions Code, shall be
applicable. Notwithstanding any other provision of this chapter, the
authority shall not undertake any of the county's obligations under
Section 17000 of the Welfare and Institutions Code, nor shall the
authority have an entitlement to receive any revenue for the
discharge of the county's obligations, without a written agreement
with the county. Any contract executed by and between the county and
the authority shall provide for the indemnification of the county by
the authority for liabilities as specifically set forth in the
contract, except that the contract shall include a provision that the
county shall remain liable for its own negligent acts.
Indemnification by the authority shall not divest the county from its
ultimate responsibility for compliance with Section 17000 of the
Welfare and Institutions Code.
(g) Unless otherwise agreed to by the authority and the board of
supervisors, an obligation of the authority, statutory, contractual,
or otherwise, shall be the obligation solely of the authority and
shall not be the obligation of the county or any other entity, and
any contract executed by and between the county and the authority, or
any other entity and the authority, shall contain a provision that
liabilities or obligations of the authority with respect to its
activities pursuant to the contract shall be the liabilities or
obligations of the authority and shall not be or become the
liabilities or obligations of the county or the other entity,
respectively. An obligation of the authority, statutory, contractual,
or otherwise, shall not be the obligation of the state.
(h) The authority shall not be a "person" subject to suit under
the Cartwright Act (Chapter 2 (commencing with Section 16700) of Part
2 of Division 7 of the Business and Professions Code).
(i) The authority is not subject to the jurisdiction of a local
agency formation commission pursuant to the Cortese-Knox-Hertzberg
Local Government Reorganization Act of 2000 (Division 3 (commencing
with Section 56000) of Title 5 of the Government Code), or any
successor statute.
(j) The authority is a "district" within the meaning set forth in
the County Employees Retirement Law of 1937 (Chapter 3 (commencing
with Section 31450) of Part 3 of Division 4 of Title 3 of the
Government Code). Employees of the authority are eligible to become
members or maintain membership, as applicable, in the Kern County
Employees' Retirement Association, to the extent described in
subdivision (g) of Section 101853.1.
(k) Any determination with respect to the manner in which the
authority qualifies as a governmental plan sponsor under Section 414
(d) of the Internal Revenue Code shall be limited to relevant
employee benefits purposes of that code only, and shall not change or
otherwise modify the authority's status as a public agency that is a
unit of local government for other purposes specified in this
chapter.
101853.1. (a) In exercising its powers to employ personnel, the
authority shall implement, and the board of supervisors shall adopt,
a personnel transition plan. The personnel transition plan shall
require all of the following:
(1) Ongoing communication to employees and recognized employee
organizations regarding the impact of the transition on existing
medical center, county, and other health care facility employees and
employee classifications.
(2) Meeting and conferring with representatives of affected
bargaining unit employees on both of the following issues:
(A) A timeframe for which the transfer of personnel shall occur.
(B) Specified periods of time during which county or medical
center employees affected by the establishment of the authority may
elect to be considered for appointment and exercise reinstatement
rights, if applicable, to funded, equivalent, vacant county positions
for which they are qualified and eligible. An employee who first
elects to remain with the county may subsequently seek reinstatement
with the authority within 30 days of the election to remain with the
county and shall be subject to the requirements of this article.
(3) Acknowledgment that the authority, to the extent permitted by
federal and state law, shall be bound by the terms of the memoranda
of understanding executed between the county and its exclusive
employee representatives that are in effect on the date the county
adopts the enabling ordinance pursuant to this chapter. Subsequent
memoranda of understanding with exclusive employee representatives
shall be subject to approval only by the board of governors.
(4) Communication to the Board of Retirement of the Kern County
Employees' Retirement Association or other retirement plan of any
personnel transition plan, memoranda of understanding, or other
arrangements that are related to the participation of the authority's
employees or the addition of new employees in the retirement plan.
(b) Implementation of this chapter shall not be a cause for the
modification of the medical center or county employment benefits.
Upon the execution of the enabling ordinance, employees of the
medical center or county on the date of execution, who become
authority employees, shall retain their existing or equivalent
classifications and job descriptions upon transfer to the authority,
comparable pension benefits (if permissible pursuant to relevant plan
terms), and their existing salaries and other benefits that include,
but are not limited to, accrued and unused vacation, sick leave,
personal leave, health care, retiree health benefits, and deferred
compensation plans. The transfer of an employee from the medical
center or county shall not constitute a termination of employment for
purposes of Section 227.3 of the Labor Code, or employee benefit
plans and arrangements maintained by the medical center or county,
except as otherwise provided in the enabling ordinance or personnel
transition plan, nor shall it be counted as a break in uninterrupted
employment for purposes of Section 31641 of the Government Code with
respect to the Kern County Employees' Retirement Association, or
state service for purposes of the Public Employees' Retirement System
(Part 3 (commencing with Section 20000) of Division 5 of Title 2 of
the Government Code).
(c) Subject to applicable state law, the authority shall recognize
the exclusive employee representatives of those authority employees
who are transferred from the county or medical center to the
authority pursuant to this chapter.
(d) In order to stabilize labor and employment relations and
provide continuity of care and services to the people of the county,
and notwithstanding any other law, the authority shall do all of the
following for a period of 24 months after the effective date of the
transfer of the medical center to the authority:
(1) Continue to recognize each exclusive employee representative
of each bargaining unit.
(2) Continue to provide the same level of employee benefits to
authority employees, whether the obligation to provide those benefits
arise out of a memorandum of understanding, or other agreements or
law.
(3) Extend and continue to be bound by any existing memoranda of
understanding covering the terms and conditions of employment for
employees of the authority, including the level of wages and
benefits, and any county rules, ordinances, or policies specifically
identified and incorporated by reference in a memoranda of
understanding for 24 months or through the term of the memorandum of
understanding, whichever shall be the longer, unless modified by
mutual agreement with each of the exclusive employee representatives.
The authority shall continue to provide those pension benefits
specified in any memoranda of agreement as long as doing so does not
conflict with any Kern County Employee Retirement Association plan
provisions, or federal or state law including the County Employees
Retirement Law of 1937 (Chapter 3 (commencing with Section 31450) of
Part 3 of Division 4 of Title 3 of the Government Code and the
federal Internal Revenue Code).
(4) Meet and confer with the exclusive employee representatives to
develop processes and procedures to address employee disciplinary
action taken against permanent employees. If the authority
terminates, suspends, demotes, or reduces the pay of a permanent
employee for disciplinary reasons, those actions shall only be for
cause consistent with state law, and an employee shall be afforded
applicable due process protections granted to public employees under
state law. Permanent employees laid off by the authority within six
months of the date the ordinance is adopted shall remain on the
county reemployment list for two years. Inclusion on the county
reemployment list is not a guarantee of reemployment. For the
purposes of this paragraph, the term "permanent employees" excludes
probationary employees, temporary employees, seasonal employees,
provisional employees, extra help employees, and per diem employees.
(5) To the extent layoffs occur, and provided that all other
previously agreed upon factors are equal, ensure that seniority shall
prevail. The authority shall meet and confer with the exclusive
employee representatives to address layoff procedures and the manner
in which, and the extent to which, seniority shall be measured for
employees who transfer from the medical center or county.
(e) Permanent employees of the medical center or county on the
effective date of the transfer of the medical center to the
authority, shall be deemed qualified for employment in equivalent
positions at the authority, and no other qualifications shall be
required except as otherwise required by state or federal law.
Probationary employees on the effective date of the transfer, as set
forth in this paragraph, shall retain their probationary status and
rights and shall not be required to serve a new probationary or
extend their probationary period by reason of the transfer. To the
extent possible, employees who transfer to equivalent positions at
the authority shall retain their existing classifications and job
descriptions, but if there is a dispute over this issue, the
authority agrees to meet and confer with the exclusive employee
representatives of the transferred employees.
(f) Employees who transfer from the medical center or county to
the authority shall retain the seniority they earned at the medical
center or county and any benefits or privileges based on the
seniority.
(g) Notwithstanding any other law, employees of the authority may
participate in the Kern County Employees' Retirement Association,
operated pursuant to the County Employees Retirement Law of 1937
(Chapter 3 (commencing with Section 31450) of Part 3 of Division 4 of
Title 3 of the Government Code) as set forth below. However, the
authority and employees of the authority, or certain designated parts
thereof, shall not participate in the Kern County Employees'
Retirement Association if the board of retirement, in its sole
discretion, determines that their participation could jeopardize the
Kern County Employees' Retirement Association's tax-qualified or
governmental plan status under federal law, or if a contract or
related contract amendment proposed by the authority contains any
benefit provisions that are not specifically authorized by Chapters 3
(commencing with Section 31450) and 3.9 (commencing with Section
31899) of Part 3 of Division 4 of Title 3 of the Government Code or
Article 4 (commencing with Section 7522) of Chapter 21 of Division 7
of Title 1 of the Government Code, and that the board determines
would adversely affect the administration of the system. There shall
not be any individual employee elections regarding participation in
the Kern County Employees' Retirement Association or other retirement
plans except to the extent such retirement plans provide for
elective employee salary deferral contributions in accordance with
federal Internal Revenue Code rules.
(1) Employees transferred from the county or medical center to the
authority who are subject to a memorandum of understanding between
the authority and an exclusive employee representative, as described
in paragraphs (2) and (3) of subdivision (d), and who were members of
the Kern County Employees' Retirement Association at the time of
their transfer of employment, shall continue to be a member of the
Kern County Employees' Retirement Association, retaining service
credit earned to the date of transfer, to the extent provided for in
the applicable memorandum of understanding.
(2) Employees transferred from the county or medical center to the
authority who are subject to a memorandum of understanding between
the authority and an exclusive employee representative, as described
in paragraphs (2) and (3) of subdivision (d), and who were not
members of the Kern County Employees' Retirement Association at the
time of their transfer of employment, shall subsequently become a
member of the Kern County Employees' Retirement Association only to
the extent provided for in the applicable memorandum of
understanding.
(3) Employees transferred from the county or medical center to the
authority who are not subject to a memorandum of understanding
between the authority and an exclusive employee representative, as
described in paragraphs (2) and (3) of subdivision (d), and who were
members of the Kern County Employees' Retirement Association at the
time of their transfer of employment, shall continue to be a member
of the Kern County Employees' Retirement Association, retaining
service credit earned to the date of transfer, as provided in the
enabling ordinance or the personnel transition plan.
(4) Employees transferred from the county or medical center to the
authority who are not subject to a memorandum of understanding
between the authority and an exclusive employee representative, as
described in paragraphs (2) and (3) of subdivision (d), and who were
not members of the Kern County Employees' Retirement Association at
the time of their transfer of employment, shall subsequently become a
member of the Kern County Employees' Retirement Association only to
the extent provided in the enabling ordinance or the personnel
transition plan.
(5) Employees hired by the authority on or after the effective
date of the enabling ordinance shall become a member of the Kern
County Employees' Retirement Association only to the extent provided
in the enabling ordinance or personnel transition plan described in
subdivision (a), or, if subject to a memorandum of understanding
between the authority and an exclusive employee representative as
described in paragraphs (2) and (3) of subdivision (d), to the extent
provided for in the applicable memorandum of understanding.
(6) Notwithstanding any other law, for purposes of California
Public Employees' Pension Reform Act of 2013 (Article 4 (commencing
with Section 7522) of Chapter 21 of Division 7 of Title 1 of the
Government Code), an individual who was employed by the county or the
medical center when it was a constituent department of the county,
and is a member of the Kern County Employees' Retirement Association
or the Public Employees' Retirement System, as set forth in Part 3
(commencing with Section 20000) of Division 5 of Title 2 of the
Government Code, prior to January 1, 2013, and who transfers,
directly or after a break in service of less than six months, to the
authority, in which the individual continues to be a member of either
the Kern County Employees' Retirement Association or the Public
Employees' Retirement System, as applicable, shall not be deemed to
be a new employee or a new member within the meaning of Section
7522.04 of the Government Code, and shall continue to be subject to
the same defined benefit formula, as defined in Section 7522.04 of
the Government Code, to which the member was subject immediately
prior to the transfer.
(h) This chapter shall not prohibit the authority from contracting
with the Public Employees' Retirement System, in accordance with the
requirements of Section 20508 and any other applicable provisions of
Part 3 (commencing with Section 20000) of Division 5 of Title 2 of
the Government Code, for the purpose of providing employee
participation in that system, or from establishing an alternative or
supplemental retirement system or arrangement, including, but not
limited to, deferred compensation arrangements, to the extent
permitted by law and subject to any applicable agreement between the
authority and the exclusive employee representatives, and as provided
in the enabling ordinance or the personnel transition plan.
Notwithstanding any other law, the authority and employees of the
authority shall not participate in the Public Employees' Retirement
System if the Board of Administration of the Public Employees'
Retirement System, in its sole discretion, determines that their
participation could jeopardize the Public Employees' Retirement
System's tax-qualified or governmental plan status under federal law,
or if a contract or related contract amendment proposed by the
authority contains any benefit provisions that are not specifically
authorized by Part 3 (commencing with Section 20000) of Division 5 of
Title 2 of the Government Code, and that the board determines would
adversely affect the administration of the system.
(i) Provided that this is not inconsistent with anything in this
chapter, this chapter does not prohibit the authority from
determining the number of employees, the number of full-time
equivalent positions, job descriptions, the nature and extent of
classified employment positions, and salaries of employees.
Article 3. Board of Governors
101854. (a) The authority established pursuant to this chapter
shall be governed by a board of governors that is appointed, both
initially and continually, by the board of supervisors. The board of
supervisors, in the enabling ordinance, shall specify the number of
members and the composition of membership of the board of governors,
the qualifications for individual members, the manner of appointment,
selection, or removal of board of governors members, their terms of
office, and all other matters that the board of supervisors deems
necessary or convenient for the conduct of the board of governors.
Notwithstanding any other law, at the board of supervisors'
discretion and as specified in the enabling ordinance, the board of
governors may consist entirely of members of the board of supervisors
or may include any number of the members of the board of supervisors
or county officers or employees appointed to represent the interest
of the county.
(b) The board of supervisors, either during or after the formation
of the authority, may modify the number, length of terms,
qualifications, method of appointment, and provisions for all other
matters pertaining to the board of governors by subsequent ordinance.
(c) The board of supervisors shall adopt bylaws for the authority
that, among other things, shall specify the officers of the board of
governors, the time, place, and conduct of meetings, and other
matters that the board of supervisors deems necessary or appropriate
to conduct the authority's activities. The bylaws shall be operative
upon approval by a majority vote of the board of supervisors, but may
be amended, from time to time, by a majority vote of the board of
supervisors.
(d) Notwithstanding any other law, a member of the board of
governors shall not be deemed to be interested in a contract entered
into by the authority within the meaning of Article 4 (commencing
with Section 1090) of Chapter 1 of Division 4 of Title 1 of the
Government Code if either of the following apply:
(1) The contract is between the authority and the county or an
agency of the county, and the member is also a member of the board of
supervisors, or is a county officer or employee appointed to
represent the interests of the county.
(2) All the following applies to the member:
(A) The member was appointed to represent the interests of
physicians, health care practitioners, hospitals, pharmacies, or
other health care organizations, or beneficiaries.
(B) The contract authorizes the member or the organization the
member represents to provide services to beneficiaries under the
authority's programs.
(C) The contract contains substantially the same terms and
conditions as contracts entered into with other individuals or
organizations that the member was appointed to represent.
(D) The member does not influence or attempt to influence the
hospital authority or another member of the authority to enter into
the contract in which the member is interested.
(E) The member discloses the interest to the authority and
abstains from voting on the contract.
(F) The board of governors notes the member's disclosure and
abstention in its official records and authorizes the contract in
good faith by a vote of its membership sufficient for the purpose
without counting the vote of the interested member.
(e) Members of the board of governors shall not be vicariously
liable for injuries caused by the act or omission of the authority to
the extent that protection applies to members of governing boards of
local public entities generally under Section 820.9 of the
Government Code.
(f) The board of governors created and appointed pursuant to this
chapter is a duly constituted governing body as the term is used in
Section 1250 and defined in Section 70035 of Title 22 of the
California Code of Regulations.
(g) In the event of a change of license ownership, the board of
governors shall comply with the obligations of governing bodies of
general acute care hospitals generally as set forth in Section 70701
of Title 22 of the California Code of Regulations, as currently
written or subsequently amended, as well as the terms and conditions
of the license. The authority shall be the responsible party with
respect to compliance with these obligations, terms, and conditions.
Article 4. Powers and Duties of the Authority
101855. (a) The authority, in addition to any other powers
granted pursuant to this chapter, shall have the following powers:
(1) To have the duties, privileges, immunities, rights,
liabilities, and limitations of a local unit of government within the
state.
(2) To have perpetual existence, subject to Article 5 (commencing
with Section 101856).
(3) To adopt, have, and use a seal, and to alter it at its
pleasure.
(4) To sue and be sued in the name of the authority in all actions
and proceedings in all courts and tribunals of competent
jurisdiction.
(5) To purchase, lease, trade, exchange, or otherwise acquire,
maintain, hold, improve, mortgage, lease, sell, and dispose of real
and personal property of any kind necessary or convenient to perform
its functions and fully exercise its powers.
(6) To appoint and employ a chief executive officer and other
officers and employees that may be necessary or appropriate,
including legal counsel, to establish their compensation, provide for
their health, retirement, and other employment benefits, and to
define the power and duties of officers and employees.
(7) (A) To incur indebtedness and to borrow money and issue bonds
evidencing the same, including the authority to issue, from time to
time, notes and revenue bonds in principal amounts that the authority
determines to be necessary to provide sufficient funds for achieving
any of its purposes, including, but not limited to, assumption or
refinancing of debt service for capital projects eligible for
Medi-Cal supplemental payments pursuant to Section 14085.5 of the
Welfare and Institutions Code, or any successor or modified Medi-Cal
debt service reimbursement program, the payment of interest on notes
and bonds of the authority, the establishment of reserves to secure
those notes and bonds, and all other expenditures of the authority
incident to and necessary or convenient to carry out its purposes and
powers.
(B) Any notes, bonds, or other securities issued, and the income
from them, including any profit from the sale thereof, shall at all
times be free from taxation by the state or any agency, political
subdivision, or instrumentality of the state.
(C) Notwithstanding the provisions of subparagraph (A), for any
indebtedness, notes, bonds, or other securities that require voter
approval pursuant to state law, the prior approval of the board of
supervisors shall be required. Notwithstanding the required prior
approval of the board of
supervisors, any indebtedness incurred, or notes, bonds, or other
securities issued pursuant to this subparagraph shall be the
indebtedness, notes, bonds, or securities of the authority and not of
the county, and the credit of the county shall not be pledged or
relied upon in any manner in order to incur the indebtedness, or
issue the notes, bonds, or other securities, unless the board of
supervisors explicitly authorizes the use of the county's credit. The
authority shall reimburse the county for all costs associated with
the county's consideration of the indebtedness, notes, bonds, or
securities, and the authority shall defend, indemnify, and hold
harmless the county from any and all liability, costs, or expenses
arising from or related to the indebtedness, notes, bonds, or
securities.
(D) Nothing in this section shall preclude the authority from
repayment of its debts or other liabilities, using funds that are not
otherwise encumbered.
(8) To pursue its own credit rating.
(9) To enter into a contract or agreement consistent with this
chapter or the laws of this state, including, but not limited to,
contracting with any public or private entity or person for
management or other services and personnel, and to authorize the
chief executive officer to enter into contracts, execute all
instruments, and do all things necessary or convenient in the
exercise of the powers granted in this chapter.
(10) To purchase supplies, equipment, materials, property, and
services.
(11) To establish policies relating to its purposes.
(12) To acquire or contract to acquire, rights-of-way, easements,
privileges, and property, and to construct, equip, maintain, and
operate any and all works or improvements wherever located that are
necessary, convenient, or proper to carry out any of the provisions,
objects, or purposes of this chapter, and to complete, extend, add
to, repair, or otherwise improve any works or improvements acquired
by it.
(13) To participate in, contract for, and to accept, gifts,
grants, and loans of funds, property, or other aid or finance
opportunity in any form from the federal government, the state, a
state agency, or other source, or combination thereof, as otherwise
would be available to a public, government, or private entity, and to
comply, subject to this chapter, with the terms and conditions
thereof.
(14) To invest surplus money in its own treasury, manage
investments, and engage third-party investment managers, in
accordance with state law.
(15) To arrange for guarantees or insurance of its bonds, notes,
or other obligations by the federal or state government or by a
private insurer, and to pay the premiums thereof.
(16) To engage in managed care contracting, joint ventures,
affiliations with other health care facilities, other health care
providers and payers, management agreements, or to participate in
alliances, purchasing consortia, health insurance pools, accountable
care organizations, alternative delivery systems, or other
cooperative arrangements, with any public or private entity.
(17) To enter into joint powers agreements pursuant to Chapter 5
(commencing with Section 6500) of Division 7 of Title 1 of the
Government Code. Notwithstanding any other law, the authority may
enter into a joint powers agreement as described in Section 6523.5 of
the Government Code as though that section applied to hospitals and
other health care facilities in the County of Kern.
(18) To establish nonprofit, for-profit, or other entities
necessary to carry out the duties of the authority.
(19) To elect to transfer funds to the state and incur certified
public expenditures in support of the Medi-Cal program and other
programs for which federal financial participation is available.
(20) To use a computerized management information system,
including an electronic health records system, in connection with its
operations, including, without limitation the administration of its
facilities.
(21) To request that the board of supervisors levy a tax on behalf
of the authority. If the board of supervisors approves the proposal
to levy the tax, it shall call the election to seek voter approval
and place the appropriate measure on the ballot for that election.
The proceeds of these taxes shall be tax proceeds of the authority
and not of the county. The authority shall reimburse the county for
all costs associated with the county's consideration of those taxes,
and shall defend, indemnify, and hold harmless the county from any
liability, costs, or expenses arising from or related to the
imposition of these taxes.
(22) Notwithstanding the provisions of this chapter relating to
the obligations and liabilities of the authority, or any other law, a
transfer of control or ownership of the medical center to the
authority pursuant to this chapter shall confer onto the authority
all the rights, privileges, and authority set forth in state law to
own, operate, and provide coverage and services through hospitals,
clinics and other health facilities, health programs, care
organizations, physician practice plans, delivery systems, health
care service plans, and other coverage mechanisms that may be owned
or operated by a county.
(23) To engage in other activities that may be in the best
interests of the authority and the persons served by the authority,
as determined by the board of governors, in order to respond to
changes in the health care industry.
(b) The authority shall conform to the following requirements:
(1) (A) Be a government agency that is a local unit of government
separate and apart for all purposes from the county and any other
public entity, and shall not be considered to be an agency, division,
or department of the county or any other public entity. The
authority shall not be governed by or subject to the civil service
requirements of the county. Except as otherwise provided for in the
enabling ordinance consistent with this chapter, and as set forth in
Section 101853.1 relating to the personnel transition plan, the
authority shall not be governed by, or subject to, other policies or
operational rules of the county, medical center, or any other public
entity, including, but not limited to, those relating to personnel
and procurement.
(B) The board of governors shall adopt written rules, regulations,
and procedures with regard to basic human resource functions not
inconsistent with memoranda of understanding covering employees
represented by employee organizations or the provisions of this
chapter. Until the time that the board of governors adopts its own
rules, regulations, or procedures with regard to these functions, the
existing rules, regulations, and procedures set forth in any
memoranda of understanding described in Section 101853.1, and the
rules and regulations adopted by the county and described in
paragraph (4), shall continue to apply.
(2) Be subject to state and federal taxation laws that are
applicable to public entities generally.
(3) Except as otherwise specifically provided in this chapter,
comply with the Meyers-Milias-Brown Act (Chapter 10 (commencing with
Section 3500) of Division 4 of Title 1 of the Government Code), the
Public Records Act (Chapter 3.5 (commencing with Section 6250) of
Division 7 of Title 1 of the Government Code), and the Ralph M. Brown
Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division
2 of Title 5 of the Government Code).
(4) Be subject to the jurisdiction of the Public Employment
Relations Board. Until the authority adopts rules and regulations
pursuant to subdivision (a) of Section 3507 of the Government Code,
the existing rules adopted by the county and contained in the county'
s employer-employee relations resolution, as amended, shall apply,
modified to account for the creation of the authority, and provided
further that the resolution shall not contain any incorporation of
the county's civil service rules or county ordinances unless
specifically addressed in this chapter.
(5) Carry professional and general liability insurance or programs
to the extent sufficient to cover its activities.
(6) Comply with the requirements of Sections 53260 and 53261 of
the Government Code.
(7) Maintain financial and accounting records.
(8) Meet all local, state, and federal data reporting
requirements.
(c) Subject to any restrictions applicable to public agencies, and
subject to any limitations or conditions set forth in the enabling
ordinance adopted by the board of supervisors, the authority may
borrow money from the county, repay debt it owes to the county, and
use the borrowed funds to provide for its operating and capital
needs. The county may lend the authority funds or issue revenue
anticipation notes to obtain those funds necessary to meet its
operating or capital needs.
(d) Open sessions of the authority shall constitute official
proceedings authorized by law within the meaning of Section 47 of the
Civil Code. The privileges set forth in that section with respect to
official proceedings shall apply to open sessions of the authority.
(e) (1) Notwithstanding any other law, the board of governors may
order that a meeting held solely for the purpose of discussion or
taking action on authority trade secrets, as defined in subdivision
(d) of Section 3426.1 of the Civil Code, or to consider and take
action on matters pertaining to contracts and contract negotiations
concerning all matters related to rates of payment for health care
services arranged or provided by the authority, shall be held in
closed session. Trade secrets for purposes of this chapter shall also
include information for which the secrecy of the information is
necessary for the authority to initiate a new service, program,
marketing strategy, business plan, or technology, or to add a benefit
or product, and premature disclosure of the trade secret would
create a substantial probability of depriving the authority of a
substantial economic benefit or opportunity.
(2) The requirements of making a public report of actions taken in
closed session and the vote or abstention of every member present
may be limited to a brief general description devoid of the
information constituting the trade secret or concerning the matters
related to rates of payment.
(3) Those records of the authority that reveal the authority's
trade secrets are exempt from disclosure pursuant to the California
Public Records Act (Chapter 3.5 (commencing with Section 6250) of
Division 7 of Title 1 of the Government Code), or any similar local
law requiring the disclosure of public records. This exemption shall
apply for a period of two years after the service, program, marketing
strategy, business plan, technology, benefit, or product that is the
subject of the trade secret is formally adopted by the governing
body of the authority, provided that the service, program, marketing
strategy, business plan, technology, benefit, or product continues to
be a trade secret. The board of governors may delete the portion or
portions containing trade secrets from any documents that were
finally approved in the closed session that are provided to persons
who have made the timely or standing request.
(4) This chapter shall not prevent the board of governors from
meeting in closed session as otherwise provided by law.
(f) Notwithstanding any other law, those records of the authority
and of the county that reveal the authority's rates of payment for
health care services arranged or provided by the authority or its
deliberative processes, strategies, discussions, communications, or
any other portion of the negotiations with providers of health care
services or Medi-Cal, health care plans, or other payers for rates of
payment, shall not be required to be disclosed pursuant to the
California Public Records Act (Chapter 3.5 (commencing with Section
6250) of Division 7 of Title 1 of the Government Code), or any
similar local law requiring the disclosure of public records.
However, three years after a contract or amendment to a contract is
fully executed, the portion of the contract or amendment containing
the rates of payment shall be open to inspection.
(g) The authority shall be a public agency that is a local unit of
government for purposes of eligibility with respect to grants and
other funding and loan guarantee programs. Contributions to the
authority shall be tax deductible to the extent permitted by state
and federal law. Nonproprietary income of the authority shall be
exempt from state income taxation.
(h) Unless otherwise provided by the board of supervisors by way
of resolution, the authority is empowered, or the board of
supervisors is empowered on behalf of the authority, to apply as a
public agency for one or more licenses for the provision of health
care or the operation of a health care service plan pursuant to
statutes and regulations governing licensing as currently written or
subsequently amended.
(i) The statutory authority of a board of supervisors to prescribe
rules that authorize a county hospital to integrate its services
with those of other providers into a system of community service that
offers free choice of hospitals to those requiring hospital care, as
set forth in Section 14000.2 of the Welfare and Institutions Code,
shall apply to the authority and the board of governors.
(j) (1) Except as otherwise provided in this chapter, provisions
of the Evidence Code, the Government Code, including the Public
Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7
of Title 1 of the Government Code), the Civil Code, the Business and
Professions Code, and other applicable law pertaining to the
confidentiality of peer review activities of peer review bodies shall
apply to the peer review activities of the authority, or any peer
review body, as defined in paragraph (1) of subdivision (a) of
Section 805 of the Business and Professions Code, formed pursuant to
the powers granted to the authority. The laws pertaining to the
confidentiality of peer review activities shall be together construed
as extending, to the extent permitted by law, the maximum degree of
protection of confidentiality.
(2) Notwithstanding Article 9 (commencing with Section 11120) of
Chapter 1 of Part 1 of Division 3 of Title 2 of, and Chapter 9
(commencing with Section 54950) of Part 1 of Division 2 of Title 5
of, the Government Code, or any other provision of law, any peer
review body formed pursuant to the powers granted to the authority,
may, at its discretion and without notice to the public, meet in
closed session, so long as the purpose of the meeting is the peer
review body's discharge of its responsibility to evaluate and improve
the quality of care rendered by health facilities and health
practitioners. The peer review body and its members shall receive, to
the fullest extent, all immunities, privileges, and protections
available to those peer review bodies, their individual members, and
persons or entities assisting in the peer review process, including
those afforded by Section 1157 of the Evidence Code and Section 1370.
Peer review proceedings shall constitute an official proceeding
authorized by law within the meaning of Section 47 of the Civil Code
and those privileges set forth in that section with respect to
official proceedings shall apply to peer review proceedings of the
authority.
(3) Notwithstanding the California Public Records Act (Chapter 3.5
(commencing with Section 6250) of Division 7 of Title 1 of the
Government Code), or Article 9 (commencing with Section 11120) of
Chapter 1 of Part 1 of Division 3 of Title 2 of, and Chapter 9
(commencing with Section 54950) of Part 1 of Division 2 of Title 5
of, the Government Code, or any other provision of state or local law
requiring disclosure of public records, those records of a peer
review body formed pursuant to the powers granted to the authority,
shall not be required to be disclosed. The records and proceedings of
the peer review body and its individual members shall receive, to
the fullest extent, all immunities, privileges, and protections
available to those records and proceedings, including those afforded
by Section 1157 of the Evidence Code and Section 1370 of the Health
and Safety Code.
(4) If the authority is required by law or contractual obligation
to submit to the state or federal government peer review information
or information relevant to the credentialing of a participating
provider, that submission shall not constitute a waiver of
confidentiality.
(5) Notwithstanding any other law, Section 1461 shall apply to
hearings on reports of hospital medical audit or quality assurance
committees.
(k) Except as expressly provided by other provisions of this
section, all exemptions and exclusions from disclosure as public
records pursuant to this chapter and the California Public Records
Act, including, but not limited to, those pertaining to trade secrets
and information withheld in the public interest, shall be fully
applicable to the authority, and for the board of supervisors, and
all state and local agencies with respect to all writings that the
authority is required to prepare, produce, or submit, and which shall
not constitute a waiver of exemption from disclosure.
(l) The authority and the county, or any combination thereof, may
engage in marketing, advertising, and promotion of the medical and
health care services made available to the community by the
authority.
(m) The board of governors shall have authority over procurement
and contracts for the authority. The board of governors shall adopt
written rules, regulations, and procedures with regard to these
functions. Contracts by and between the authority and a public
agency, and contracts by and between the authority and providers of
health care, goods, or services, may be let on a nonbid basis and
shall be exempt from Chapter 2 (commencing with Section 10290) of
Part 2 of Division 2 of the Public Contract Code.
(n) The authority may contract with the county for services and
personnel upon mutually agreeable terms.
(o) Notwithstanding Article 4.7 (commencing with Section 1125) of
Chapter 1 of Division 4 of Title 1 of the Government Code, related to
incompatible activities, Section 1099 of the Government Code,
related to incompatible offices, or any other law, a member of the
authority's administrative staff shall not be considered to hold an
incompatible office or to be engaged in activities inconsistent and
incompatible with his or her duties as a result of his or her
employment or affiliation with the county or an agency of the county.
(p) The board of governors and the officers and employees of the
authority are public employees for purposes of Division 3.6
(commencing with Section 810) of Title 1 of the Government Code,
relating to claims and actions against public entities and public
employees, and shall be protected by the immunities applicable to
public entities and public employees governed by Part 2 (commencing
with Section 814) of Division 3.6 of Title 1 of the Government Code,
except as provided by other statutes or regulations that apply
expressly to the authority.
101855.1. (a) Transfer by the county to the authority of the
maintenance, operation, and management or ownership of the medical
center, whether or not the transfer includes the surrendering by the
county of the existing general acute care hospital license and
corresponding application for a change of ownership of the license,
shall not affect the eligibility of the county to undertake, and
shall authorize the authority, subject to applicable requirements, to
do any of the following:
(1) With the written consent of the county, participate in and
receive allocations pursuant to the California Health Care for
Indigents Program pursuant to Chapter 5 (commencing with Section
16940) of Part 4.7 of Division 9 of the Welfare and Institutions
Code, or similar programs, as may be identified or earmarked by the
county for indigent health care services of the type provided by the
medical center.
(2) With the written consent of the county, participate in and
receive allocations of local revenue fund amounts provided pursuant
to Chapter 6 (commencing with Section 17600) of Part 5 of Division 9
of the Welfare and Institutions Code as may be identified or
earmarked by the county for indigent health care services of the type
provided by the medical center.
(3) Participate in the financing of, as applicable, and receive,
Medicaid disproportionate share hospital payments available to a
county hospital or designated public hospital, or any other successor
or modified payment or funding that is intended to assist hospitals
that serve a disproportionate share of low-income patients with
special needs. The allocation of Medicaid disproportionate share
hospital payments shall be made in consultation with the State
Department of Health Care Services and other designated safety net
hospitals.
(4) Participate in the financing of, as applicable, and receive,
Medi-Cal payments and supplemental reimbursements, including, but not
limited to, payments made pursuant to Sections 14105.96, 14105.965,
14166.4, 14182.15, and 14199.2 of the Welfare and Institutions Code,
payments described in paragraph (4) of subdivision (b) of Section
14301.4 of, and Section 14301.5 of, the Welfare and Institutions
Code, and payments made available to a county provider or designated
public hospital, or governmental entity with which it is affiliated,
under any other successor or modified Medicaid payment system.
(5) Participate in the financing of, as applicable, and receive,
safety net care pool funding, stabilization funding, delivery system
reform incentive pool payments, and any other funding available to a
county provider or designated public hospital, or governmental
entities with which it is affiliated under the Medicaid demonstration
project authorized pursuant to Article 5.2 (commencing with Section
14166) and Article 5.4 (commencing with Section 14180) of Chapter 7
of Part 3 of Division 9 of the Welfare and Institutions Code, or
under any other successor or modified Medicaid demonstration project
or Medicaid payment system. The allocation of safety net care pool
funds shall be made in consultation with the State Department of
Health Care Services and other designated safety net hospitals.
(6) Participate in the financing, administration, and provision of
services under the Low Income Health Program authorized pursuant to
Part 3.6 (commencing with Section 15909) of Division 9 of the Welfare
and Institutions Code, or under any other successor or modified
Medicaid demonstration project or Medicaid payment system if the
authority enters into an agreement with the county concerning the
provision of services by, and payment for these services to, the
county.
(7) Participate in and receive direct grant and payment
allocations pursuant to Article 5.230 (commencing with Section
14169.50) of Chapter 7 of Part 3 of Division 9 of the Welfare and
Institutions Code, or under any other successor or modified direct
grant and payment systems funded by hospital or other provider fee
assessments.
(8) Receive Medi-Cal capital supplements pursuant to Section
14085.5 of the Welfare and Institutions Code, or any other successor
or modified Medi-Cal debt service reimbursement program.
Notwithstanding any other law, supplemental payments shall be made to
the medical center under those programs for the debt service costs
incurred by the county, and, if applicable, by the authority to the
extent that debt service responsibility is refinanced, transferred
to, or otherwise assumed by, directly or indirectly, the authority.
(9) Receive any other funds, or preference in the assignment of
health care plan enrollees, that would otherwise be available to a
county health plan, provider, or designated public hospital, or
governmental entity with which it is affiliated.
(b) The transfer of the medical center to the authority pursuant
to this chapter shall not otherwise disqualify the county or the
authority from participating in any of the following:
(1) Local, state, and federal funding sources either specific to
county or other publicly owned or operated health care service plans,
hospitals, or other health care providers, including, but not
limited to, ambulatory care clinics, health systems, practices,
designated public hospitals, or governmental entities with which they
are affiliated, for which there are special provisions specific to
those plans, hospitals, ambulatory care clinics, health systems,
practices, other health care providers or governmental entities with
which they are affiliated.
(2) All funding programs in which the county, by itself or on
behalf of the medical center had participated prior to the creation
of the authority, or would otherwise be qualified to participate in
had the authority not been created, and the maintenance, operation,
and management or ownership of the medical center not been
transferred to the authority pursuant to this chapter.
Article 5. Dissolution of the Authority
101856. (a) The board of supervisors may find and declare that
the authority shall cease to exist. In that event, the board of
supervisors shall provide for the disposition of the authority's
assets, obligations, and liabilities, which may include the transfer
to the county of the medical center and other operations, or
specified components of the medical center and other operations,
through ordinance, resolution, or other action. Alternatively, the
board of supervisors may order the board of governors to develop a
plan of dissolution providing for the disposition of all of the
assets and liabilities of the authority, which shall be subject to
approval by the board of supervisors. Absent written agreement, the
county shall not be obligated under any law to assume the authority's
obligations or liabilities, or take title to, or custody or control
of, the authority's assets.
(b) Upon the disposition of the liabilities of the authority and
distribution of any remaining assets, as applicable, the board of
supervisors shall rescind the ordinance that established the
authority, and the authority shall cease to exist. The board of
supervisors shall notify the State Department of Health Care Services
30 days prior to the effective date of the dissolution, and include
in the notice whether the county intends for either or both, or
specified components of, the medical center or other operations to be
transferred to the county upon the effective date of dissolution of
the authority.
SEC. 4. The Legislature finds and declares that Section 3 of this
act, which adds Chapter 5.5 (commencing with Section 101852) to Part
4 of Division 101 of the Health
and Safety Code, imposes a limitation on the public's right of
access to the meetings of public bodies or the writings of public
officials and agencies within the meaning of Section 3 of Article I
of the California Constitution. Pursuant to that constitutional
provision, the Legislature makes the following findings to
demonstrate the interest protected by this limitation and the need
for protecting that interest:
In order to enable the Kern County Hospital Authority to
successfully operate a delivery system that increases access to
health care in the community and proactively improves the quality of
patient care services and patient experience, it is imperative that
the authority's discussions, deliberative processes, writings, and
other communications pertaining to trade secrets or other strategic
planning actions, its rates of payments for providing or arranging
for health care services, and its peer review functions by which it
discharges its responsibility to evaluate and improve the quality of
care be protected as confidential information.
SEC. 5. Section 1.5 of this bill incorporates amendments to
Section 31468 of the Government Code proposed by both this bill and
Senate Bill 673. It shall only become operative if (1) both bills are
enacted and become effective on or before January 1, 2015, (2) each
bill amends Section 31468 of the Government Code, and (3) this bill
is enacted after Senate Bill 673, in which case Section 1 of this
bill shall not become operative.
