BILL NUMBER: SB 1458	INTRODUCED
	BILL TEXT


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, as introduced, 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.
   Vote: 2/3. Appropriation: no. Fiscal committee: no. State-mandated
local program: no.


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.

   (1) 
    (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 
, except that any 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, shall be
repaid within 20 years from each separate borrowing or draw upon the
line of credit. The total amount of debt that a district may have
outstanding at any one time under this line of credit shall not
exceed the amount of two million dollars ($2,000,000)  .

   (2) 
    (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.