Bill Text: CA SB1458 | 2009-2010 | Regular Session | Enrolled

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

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Bill Title: Hospital districts.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Passed) 2010-07-09 - Chaptered by Secretary of State. Chapter 70, Statutes of 2010. [SB1458 Detail]

Download: California-2009-SB1458-Enrolled.html

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BILL NUMBER: SB 1458	ENROLLED
	BILL TEXT

	PASSED THE SENATE  APRIL 15, 2010
	PASSED THE ASSEMBLY  JUNE 24, 2010

INTRODUCED BY   Senator Cogdill

                        FEBRUARY 19, 2010

   An act to amend Section 32130.6 of the Health and Safety Code,
relating to public health, and declaring the urgency thereof, to take
effect immediately.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 1458, Cogdill. Hospital districts.
   Existing law, the Local Health Care District Law, provides for the
formation of hospital districts, provides for appointments of their
governing boards, and sets forth their powers and duties.
   Existing law authorizes a district to 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.
Existing law requires this line of credit to be repaid within 5
years, except that it permits 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,
to be repaid within 20 years. Existing law establishes a maximum of
$2,000,000 at any one time under this line of credit.
   This bill would recast these provisions to apply the $2,000,000
maximum only to the consolidated line of credit incurred after
January 1, 2010.
   This bill would declare that it is to take effect immediately as
an urgency statute.


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) (1) 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.
   (2) Any money borrowed under this line of credit pursuant to
paragraph (1) shall be repaid within five years from each separate
borrowing or draw upon the line of credit.
   (3) The district may enter into a new and separate line of credit
to repay a previous line of credit pursuant to paragraph (1),
provided that the district complies with this section in entering
into a new line of credit.
   (4) Enter into a line of credit with a commercial lender for the
sole purpose of consolidating debt incurred by the district prior to
January 1, 2010. Debt incurred under this paragraph shall be repaid
within 20 years of the consolidation borrowing. The total amount of
debt that a district may have outstanding at any one time under this
paragraph shall not exceed the amount of two million dollars
($2,000,000).
   (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.
  SEC. 2.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect. The facts constituting the necessity are:
   In order to maximize the benefit to local health districts, at the
earliest possible time, thereby facilitating the provision of health
care services, it is necessary that this act take effect
immediately.