BILL NUMBER: AB 1785	CHAPTERED  06/17/02

	CHAPTER  55
	FILED WITH SECRETARY OF STATE  JUNE 17, 2002
	APPROVED BY GOVERNOR  JUNE 17, 2002
	PASSED THE ASSEMBLY  MAY 30, 2002
	PASSED THE SENATE  MAY 23, 2002
	AMENDED IN SENATE  MAY 7, 2002
	AMENDED IN ASSEMBLY  FEBRUARY 15, 2002

INTRODUCED BY   Assembly Member Reyes

                        JANUARY 14, 2002

   An act to add Section 6523.4 to the Government Code, relating to
health facilities.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1785, Reyes.  Health:  local agency joint powers agreements.
   Existing law requires counties to provide or secure certain public
health care services, and authorizes the formation of local health
care districts and the establishment of municipal hospitals for the
purpose of providing needed public health care services.
   Existing law, the Joint Exercise of Powers Act, permits 2 or more
public agencies to enter into an agreement to jointly exercise any
power common to the contracting parties.
   Existing law, notwithstanding this provision, authorizes a
private, nonprofit hospital in the Counties of Contra Costa, Kings,
San Diego, Tuolomne, and Tulare to enter into joint powers agreements
with a public agency.
   This bill would also authorize Selma Community Hospital, a
private, nonprofit hospital in the County of Fresno, to enter into a
joint powers agreement with specified public agencies.
   The bill would state the finding and declaration of the
Legislature that a special law is necessary and that a general law
cannot be made applicable.


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


  SECTION 1.  It is the intent of the Legislature in enacting this
act to do all of the following:
   (a) Meet the challenges of the evolving health care market and
carry out the essential governmental function of making health care
services available to Medi-Cal and medically indigent citizens served
by health care districts, counties, and other agencies.
   (b) Authorize nonprofit hospitals in the County of Fresno to do
all of the following:
   (1) Engage in joint planning for health care services.
   (2) Allocate health care services among the different facilities
operated by the hospitals.
   (3) Engage in joint purchasing, joint development, and ownership
of health care delivery and financing programs.
   (4) Consolidate or eliminate duplicative administrative, clinical,
and medical services.
   (5) Engage in joint contracting and negotiations with health
plans.
   (6) Take cooperative actions in order to provide for the health
care needs of residents of the communities they serve.
  SEC. 2.  Section 6523.4 is added to the Government Code, to read:
   6523.4.  (a) Notwithstanding any other provision of this chapter,
the Selma Community Hospital, a private, nonprofit hospital in Fresno
County, may enter into a joint powers agreement with one or more of
the following public agencies:
   (1) The Alta Hospital District.
   (2) The Kingsburg Hospital District.
   (3) The Sierra-Kings Hospital District.
   (b) The joint powers authority created pursuant to subdivision (a)
may perform only the following functions:
   (1) Engage in joint planning for health care services.
   (2) Allocate health care services among the different facilities
operated by the hospitals.
   (3) Engage in joint purchasing, joint development, and joint
ownership of health care delivery and financing programs.
   (4) Consolidate or eliminate duplicative administrative, clinical,
and medical services.
   (5) Engage in joint contracting and negotiations with health
plans.
   (6) Take cooperative actions in order to provide for the health
care needs of the residents of the communities they serve.
   (c) Nonprofit hospitals and public agencies participating in a
joint powers agreement entered into pursuant to subdivision (a) shall
not reduce or eliminate any emergency services, as a result of that
agreement, following the creation of the joint powers authority
without a public hearing by the authority.  The joint powers
authority shall provide public notice of the hearing to the
communities served by the authority not less than 14 days prior to
the hearing and the notice shall contain a description of the
proposed reductions or changes.
   (d) Nothing in this section shall be construed to grant any power
to any nonprofit hospital that participates in an agreement
authorized under this section to levy any tax or assessment.  Nothing
in this section shall permit any entity, other than a nonprofit
hospital corporation or a public agency, to participate as a party to
an agreement authorized under this section.
   (e) Nothing in this section shall authorize activities that
corporations and other artificial legal entities are prohibited from
conducting by Section 2400 of the Business and Professions Code.
  SEC. 3.  The Legislature finds and declares that a special law is
necessary and that a general law cannot be made applicable within the
meaning of Section 16 of Article IV of the California Constitution
because of the unique circumstances facing the Selma Community
Hospital, a private, nonprofit hospital in Fresno County, and three
of the health care districts that serve residents in portions of
Fresno County.