BILL NUMBER: AB 10 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY JUNE 5, 2007
AMENDED IN ASSEMBLY JUNE 1, 2007
AMENDED IN ASSEMBLY APRIL 10, 2007
INTRODUCED BY Assembly Member De La Torre
DECEMBER 4, 2006
An act to add Part 6.1 (commencing with Section 1179.50) to
Division 1 of the Health and Safety Code, relating to an election for
the Children's Hospital Bond Act of 2008, and by providing the funds
necessary therefor through the issuance and sale of bonds of the
State of California and for the handling and disposition of the funds
, and declaring the urgency thereof, to take effect immediately
.
LEGISLATIVE COUNSEL'S DIGEST
AB 10, as amended, De La Torre. Children's Hospital Bond Act of
2008.
Existing law establishes the Children's Hospital Bond Act of 2004.
This bill would enact the Children's Hospital Bond Act of 2008
which, if adopted by the voters, would authorize, for purposes of
financing a specified children's hospital grant program for hospitals
that qualified for grants pursuant to the Children's Hospital Bond
Act of 2004, the issuance, pursuant to the State General Obligation
Bond Law, of bonds in the amount of $980,000,000.
The bill would provide for submission of the bond act to the
voters at the next statewide election in accordance with specified
law.
The bill would declare that it is to take effect immediately as an
urgency statute.
Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Part 6.1 (commencing with Section 1179.50) is added to
Division 1 of the Health and Safety Code, to read:
PART 6.1. Children's Hospital Bond Act of 2008
CHAPTER 1. GENERAL PROVISIONS
1179.50. This part shall be known and may be cited as the
Children's Hospital Bond Act of 2008.
1179.51. As used in this part, the following terms have the
following meanings:
(a) "Authority" means the California Health Facilities Financing
Authority established pursuant to Section 15431 of the Government
Code.
(b) "Children's hospital" means either of the following:
(1) A University of California general acute care hospital
described below:
(A) University of California, Davis Children's Hospital.
(B) Mattel Children's Hospital at University of California, Los
Angeles.
(C) University Children's Hospital at University of California,
Irvine.
(D) University of California, San Francisco Children's Hospital.
(E) University of California, San Diego Children's Hospital.
(2) A general acute care hospital that is, or is an operating
entity of, a California nonprofit corporation incorporated prior to
January 1, 2003, whose mission of clinical care, teaching, research,
and advocacy focuses on children, and that provides comprehensive
pediatric services to a high volume of children eligible for
governmental programs and to children with special health care needs
eligible for the California Children's Services program and that
meets all of the following:
(A) The hospital had at least 160 licensed beds in the categories
of pediatric acute, pediatric intensive care and neonatal intensive
care in the fiscal year ending between June 30, 2001, and June 29,
2002, as reported to the Office of Statewide Health Planning and
Development on or before July 1, 2003.
(B) The hospital provides over 30,000 total pediatric patient
(census) days, excluding nursery acute days, in the fiscal year
ending between June 30, 2001, and June 29, 2002, as reported to the
Office of Statewide Health Planning and Development on or before July
1, 2003.
(C) The hospital provides medical education to at least eight,
rounded to the nearest whole integer, full-time equivalent pediatric
or pediatric subspecialty residents in the fiscal year ending between
June 30, 2001, and June 29, 2002, as reported to the Office of
Statewide Health Planning and Development on or before July 1, 2003.
(c) "Committee" means the Children's Hospital Bond Act Finance
Committee created pursuant to Section 1179.61.
(d) "Fund" means the Children's Hospital Bond Act Fund created
pursuant to Section 1179.53.
(e) "Grant" means the distribution of money in the fund by the
authority to children's hospitals for projects pursuant to this part.
(f) "Program" means the Children's Hospital Program established
pursuant to this part.
(g) "Project" means constructing, expanding, remodeling,
renovating, furnishing, equipping, financing, or refinancing of a
children's hospital to be financed or refinanced with funds provided
in whole or in part pursuant to this part. "Project" may include
reimbursement for the costs of constructing, expanding, remodeling,
renovating, furnishing, equipping, financing, or refinancing of a
children's hospital where these costs are incurred after January 31,
2008. "Project" may include any combination of one or more of the
foregoing undertaken jointly by any participating children's hospital
that qualifies under this part.
CHAPTER 2. THE CHILDREN'S HOSPITAL PROGRAM
1179.53. The proceeds of bonds issued and sold pursuant to this
part shall be deposited in the Children's Hospital Bond Act Fund,
which is hereby created.
1179.54. The purpose of the Children's Hospital Program is to
improve the health and welfare of California's critically ill
children, by providing a stable and ready source of funds for capital
improvement projects for children's hospitals. The program provided
for in this part is in the public interest, serves a public purpose,
and will promote the health, welfare, and safety of the citizens of
the state.
1179.55. The authority is authorized to award grants to any
children's hospital for purposes of funding projects, as defined in
subdivision (g) of Section 1179.51.
1179.56. (a) Twenty percent of the total funds available for
grants pursuant to this part shall be awarded to children's hospitals
as defined in paragraph (1) of subdivision (b) of Section 1179.51.
(b) Eighty percent of the total funds available for grants
pursuant to this part shall be awarded to children's hospitals as
defined in paragraph (2) of subdivision (b) of Section 1179.51.
1179.57. (a) The authority shall develop a written application
for the awarding of grants under this part within 90 days of the
adoption of this act. The authority shall award grants to eligible
children's hospitals, subject to the limitations of this part and to
further the purposes of this part based on the following factors:
(1) The grant will contribute toward expansion or improvement of
health care access by children eligible for governmental health
insurance programs and indigent, underserved, and uninsured children.
(2) The grant will contribute toward the improvement of child
health care or pediatric patient outcomes.
(3) The children's hospital provides uncompensated or
undercompensated care to indigent or public pediatric patients.
(4) The children's hospital provides services to vulnerable
pediatric populations.
(5) The children's hospital promotes pediatric teaching or
research programs.
(6) Demonstration of project readiness and project feasibility.
(b) (1) An application for funds shall be submitted to the
authority for approval as to its conformity with the requirements of
this part.
(2) The authority shall process and award grants in a timely
manner, not to exceed 60 days.
(c) A children's hospital identified in paragraph (1) of
subdivision (b) of Section 1179.51 shall not apply for, and the
authority shall not award to that children's hospital, a grant that
would cause the total amount of grants awarded to that children's
hospital to exceed one-fifth of the total funds available for grants
to all children's hospitals pursuant to subdivision (a) of Section
1179.56. Notwithstanding this grant limitation, any funds available
under subdivision (a) of Section 1179.56 that have not been exhausted
by June 30, 2018, shall become available for an application from any
children's hospital identified in paragraph (1) of subdivision (b)
of Section 1179.51.
(d) A children's hospital identified in paragraph (2) of
subdivision (b) of Section 1179.51 shall not apply for, and the
authority shall not award to that children's hospital, a grant that
would cause the total amount of grants awarded to that children's
hospital to exceed ninety-eight million dollars ($98,000,000) from
funds available for grants to all children's hospitals pursuant to
subdivision (b) of Section 1179.56. Notwithstanding this grant
limitation, any funds available under subdivision (b) of Section
1179.56 that have not been exhausted by June 30, 2018, shall become
available for an application from any children's hospital defined in
paragraph (2) of subdivision (b) of Section 1179.51.
(e) In no event shall a grant to finance a project exceed the
total cost of the project, as determined by the children's hospital
and approved by the authority.
(f) All projects that are awarded grants shall be completed within
a reasonable period of time. If the authority determines that the
children's hospital has failed to complete the project under the
terms specified in awarding the grant, the authority may require
remedies, including the return of all or a portion of the grant. A
children's hospital receiving a grant under this part shall submit
certification of project completion to the authority.
(g) Grants shall only be available pursuant to this section if the
authority determines that it has sufficient money available in the
fund. Nothing in this section shall require the authority to award
grants if the authority determines that it has insufficient moneys
available in the fund to do so.
(h) The authority may annually determine the amount available for
purposes of this part. Administrative costs for this program shall
not exceed the actual costs or 1 percent, whichever is less.
1179.58. The Bureau of State Audits may conduct periodic audits
to ensure that bond proceeds are awarded in a timely fashion and in a
manner consistent with the requirements of this part, and that
awardees of bond proceeds are using funds in compliance with
applicable provisions of this part.
CHAPTER 3. FISCAL PROVISIONS
1179.59. Bonds in the total amount of nine hundred eighty million
dollars ($980,000,000), not including the amount of any refunding
bonds, may be issued and sold to provide a fund to be used for
carrying out the purposes expressed in this part and to reimburse the
General Obligation Bond Expense Revolving Fund pursuant to Section
16724.5 of the Government Code. The bonds, when sold, shall be and
constitute a valid and binding obligation of the State of California,
and the full faith and credit of the State of California is hereby
pledged for the punctual payment of the principal of, and interest
on, the bonds as the principal and interest become due and payable.
1179.60. The bonds authorized by this part shall be prepared,
executed, issued, sold, paid, and redeemed as provided in the State
General Obligation Bond Law (Chapter 4 (commencing with Section
16720) of Part 3 of Division 4 of Title 2 of the Government Code),
and all of the provisions of that law apply to the bonds and to this
part and are hereby incorporated in this part as though set forth in
full in this part.
1179.61. (a) Solely for the purpose of authorizing the issuance
and sale pursuant to the State General Obligation Bond Law of the
bonds authorized by this part, the Children's Hospital Bond Act
Finance Committee is hereby created. For purposes of this part, the
Children's Hospital Bond Act Finance Committee is "the committee" as
that term is used in the State General Obligation Bond Law. The
committee consists of the Controller, Director of Finance, and the
Treasurer, or their designated representatives. The Treasurer shall
serve as chairperson of the committee. A majority of the committee
may act for the committee.
(b) The authority is designated the "board" for purposes of the
State General Obligation Bond Law, and shall administer the program
pursuant to this part.
1179.62. The committee shall determine whether or not it is
necessary or desirable to issue bonds authorized pursuant to this
part in order to carry out the actions specified in Section 1179.54
and, if so, the amount of bonds to be issued and sold. Successive
issues of bonds may be authorized and sold to carry out those actions
progressively, and it is not necessary that all of the bonds be
issued or sold at any one time.
1179.63. There shall be collected each year and in the same
manner and at the same time as other state revenue is collected, in
addition to the ordinary revenues of the state, a sum in an amount
required to pay the principal of, and interest on, the bonds each
year. It is the duty of all officers charged by law with any duty in
regard to the collection of the revenue to do and perform each and
every act that is necessary to collect that additional sum.
1179.64. Notwithstanding Section 13340 of the Government Code,
there is hereby appropriated continuously from the General Fund in
the State Treasury, for the purposes of this part, an amount that
will equal the total of the following:
(a) The sum annually necessary to pay the principal of, and
interest on, bonds issued and sold pursuant to this part, as the
principal and interest become due and payable.
(b) The sum necessary to carry out Section 1179.65, appropriated
without regard to fiscal years.
1179.65. For the purposes of carrying out this part, the Director
of Finance may authorize the withdrawal from the General Fund of an
amount not to exceed the amount of the unsold bonds that have been
authorized by the committee to be sold for the purpose of carrying
out this part. Any amounts withdrawn shall be deposited in the fund.
Any money made available under this section shall be returned to the
General Fund from proceeds received from the sale of bonds for the
purpose of carrying out this part.
1179.66. All money deposited in the fund that is derived from
premium and accrued interest on bonds sold shall be reserved in the
fund and shall be available for transfer to the General Fund as a
credit to expenditures for bond interest.
1179.67. Pursuant to Chapter 4 (commencing with Section 16720) of
Part 3 of Division 4 of Title 2 of the Government Code, the cost of
bond issuance shall be paid out of the bond proceeds. These costs
shall be shared proportionally by each children's hospital funded
through this bond act.
1179.68. The authority may request the Pooled Money Investment
Board to make a loan from the Pooled Money Investment Account,
including other authorized forms of interim financing that include,
but are not limited to, commercial paper, in accordance with Section
16312 of the Government Code, for purposes of carrying out this part.
The amount of the request shall not exceed the amount of the unsold
bonds that the committee, by resolution, has authorized to be sold
for the purpose of carrying out this part. The authority shall
execute any documents required by the Pooled Money Investment Board
to obtain and repay the loan. Any amounts loaned shall be deposited
in the fund to be allocated by the board in accordance with this
part.
1179.69. The bonds may be refunded in accordance with Article 6
(commencing with Section 16780) of Chapter 4 of Part 3 of Division 4
of Title 2 of the Government Code, which is a part of the State
General Obligation Bond Law. Approval by the voters of the state for
the issuance of the bonds described in this part includes the
approval of the issuance of any bonds issued to refund any bonds
originally issued under this part or any previously issued refunding
bonds.
1179.70. Notwithstanding any other provision of this part, or of
the State General Obligation Bond Law, if the Treasurer sells bonds
pursuant to this part that include a bond counsel opinion to the
effect that the interest on the bonds is excluded from gross income
for federal tax purposes, subject to designated conditions, the
Treasurer may maintain separate accounts for the investment of bond
proceeds and for the investment of earnings on those proceeds. The
Treasurer may use or direct the use of those proceeds or earnings to
pay any rebate, penalty, or other payment required under federal law
or take any other action with respect to the investment and use of
those bond proceeds required or desirable under federal law to
maintain the tax-exempt status of those bonds and to obtain any other
advantage under federal law on behalf of the funds of this state.
1179.71. The Legislature hereby finds and declares that, inasmuch
as the proceeds from the sale of bonds authorized by this part are
not "proceeds of taxes" as that term is used in Article XIII B of the
California Constitution, the disbursement of these proceeds is not
subject to the limitations imposed by that part.
1179.72. Notwithstanding any other provision of this part, the
provisions of this part are severable. If any provision of this part
or its application is held invalid, that invalidity shall not affect
other provisions or applications that can be given effect without the
invalid provision or application.
SEC. 2. Section 1 of this act shall take effect upon the approval
by the voters of the Children's Hospital Bond Act of 2008, as set
forth in Section 1 of this act.
SEC. 3. Section 1 of this act shall be submitted to the voters at
the next statewide election in accordance with provisions of the
Government Code and the Elections Code governing the submission of a
statewide measure to the voters.
SEC. 4. (a) Notwithstanding any other provision of law, all
ballots of the election shall have printed thereon and in a square
thereof, the words: "Children's Hospital Projects. Grants. Bond Act."
and in the same square under those words, the following in 8-point
type: "Authorizes $980,000,000 in general obligation bonds, to be
repaid from the state's General Fund, to fund grants to eligible
children's hospitals for the construction, expansion, remodeling,
renovation, furnishing, and equipping of children's hospitals."
Opposite the square, there shall be left spaces in which the voters
may place a cross in the manner required by law to indicate whether
they vote for or against the act.
(b) Where the voting in the election is done by means of voting
machines used pursuant to law in a manner that carries out the intent
of this section, the use of the voting machines and the expression
of the voters's choice by means thereof are in compliance with this
section.
SEC. 5. 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 improve children's hospital facilities to provide the
greatest care to pediatric patients, it is necessary for this act to
go into effect immediately.