BILL NUMBER: AB 2418 AMENDED
AMENDED IN ASSEMBLY MAY 1, 2012
INTRODUCED BY Assembly
Members Gordon and Dickinson
FEBRUARY 24, 2012
An act to amend Section 32121.9 of add
Section 32121.10 to the Health and Safety Code, relating to
LEGISLATIVE COUNSEL'S DIGEST
AB 2418, as amended, Gordon. Health districts: reporting.
Existing law, the Local Health Care District Law,
requires a local health care district that leases or transfers its
assets to a corporation in accordance with specified provisions to
act as an advocate for the community to the operating corporation,
and to annually report to the community on the progress made in
meeting the community's health needs authorizes a
local health care district to generate revenue through an annual
assessment on real and personal property within the district .
This bill would require the annual report to include
percentages of district revenues spent on district administration and
on health care activities a health care district to
spend at least 95% of the revenue derived from an annual general tax
levy on current community health care benefits, as specified. The
bill would expressly exclude from the definition of community health
care benefits the salari es paid and benefits provided to
staff of the districts and benefits provided to board members, among
other items. By increasing the duties of local officials, this bill
would impose a state-mandated local program .
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
Vote: majority. Appropriation: no. Fiscal committee: no
yes . State-mandated local program: no
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 32121.10 is added to the
Health and Safety Code , to read:
32121.10. (a) (1) For purposes of this section, "current
community health care benefit" means any of the following:
(A) The operation or maintenance of a health care facility or
health services, as defined by subdivision (j) of Section 32121.
(B) The performance of the district's powers under subdivision
(l), (m), (n), or (r) of Section 32121.
(D) Capital outlays, as defined in Section 32221.
(E) Any other item approved by a resolution adopted by a majority
vote of the local agency formation commission of the principal county
of the district.
(2) For purposes of this section, "current community health care
benefit" excludes the salaries paid and benefits provided to staff of
the district, benefits provided to board members of the district,
expenses paid to any consultant hired by the district, and any other
item not identified in paragraph (1).
(b) For purposes of this section, "principal county of the
district" means the county in which the district is located. If a
district is located in more than one county, "principal county of the
district" means the county with the largest share of assessed value
of taxable property within the district, as shown on the last
equalized assessment role.
(c) Notwithstanding any other provision of law, a district shall
expend at least 95 percent of the revenue derived from the annual
general tax levy assessed pursuant to Article 1 (commencing with
Section 32200) of Chapter 3, after excluding the amounts for the
revenue and expenditures described in subdivision (d), on current
community health care benefits. In addition, a district may allocate,
within a fiscal year, not more than 30 percent of the revenue
derived from this annual general tax levy, after excluding the
amounts for the revenue and expenditures described in subdivision
(d), to reserves.
(d) This section shall not apply to the following:
(1) The portions of the district's annual general tax levy that
have, as of April 1, 2014, been obligated by contract or other
legally binding obligation to a specific purpose.
(2) The portions of the district's general tax levy that are
required to be used for a specific purpose by Chapter 4 (commencing
with Section 32300), Chapter 5 (commencing with Section 32315), or
Chapter 5.5 (commencing with Section 32350).
(3) The district's financial reserves in existence as of April 1,
(4) The cost of elections required or authorized by this division.
(5) A special assessment approved by the voters pursuant to
Article 3 (commencing with Section 32240) of Chapter 3.
(e) A district shall annually submit documentation of the district'
s compliance with this section to the county auditor-controller, the
local agency formation commission, and the board of supervisors, of
the principal county of the district.
SEC. 2. If the Commission on State Mandates
determines that this act contains costs mandated by the state,
reimbursement to local agencies and school districts for those costs
shall be made pursuant to Part 7 (commencing with Section 17500) of
Division 4 of Title 2 of the Government Code.
SECTION 1. Section 32121.9 of the Health and
Safety Code is amended to read:
32121.9. A district that leases or transfers its assets to a
corporation pursuant to this division, including, but not limited to,
subdivision (p) of Section 32121 or Section 32126, shall act as an
advocate for the community to the operating corporation. The district
shall annually report to the community on the progress made in
meeting the community's health needs. The annual report shall include
the percentage of district revenues spent on district administration
and the percentage of district revenues spent on health care